As used in this Article: (A) “Adverse underwriting decision” means:
Terms Used In Illinois Compiled Statutes 215 ILCS 5/1003
Agent: means an individual, firm, partnership, association or corporation who is involved in the solicitation, negotiation or binding of coverages for or on applications or policies of insurance, covering property or risks located in this State. See Illinois Compiled Statutes 215 ILCS 5/1003
Applicant: means any person who seeks to contract for insurance coverage other than a person seeking group insurance that is not individually underwritten. See Illinois Compiled Statutes 215 ILCS 5/1003
Consumer report: means any written, oral or other communication of information bearing on a natural person's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living which is used or expected to be used in connection with an insurance transaction. See Illinois Compiled Statutes 215 ILCS 5/1003
Contract: A legal written agreement that becomes binding when signed.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Declination of insurance coverage: means a denial, in whole or in part, by an insurance institution or agent of requested insurance coverage. See Illinois Compiled Statutes 215 ILCS 5/1003
Fraud: Intentional deception resulting in injury to another.
Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
Individual: means any natural person who: (1) in the case of property or casualty insurance, is
a past, present or proposed named insured or certificateholder;
(2) in the case of life, health or disability
insurance, is a past, present or proposed principal insured or certificateholder;
(3) is a past, present or proposed policyowner; (4) is a past or present applicant; (5) is a past or present claimant; or (6) derived, derives or is proposed to derive
Insurance institution: means any corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal benefit society or other person engaged in the business of insurance, health maintenance organizations as defined in § 2 of the Health Maintenance Organization Act, voluntary health services plans as defined in § 2 of the Voluntary Health Services Plans Act, and dental service plans as defined in § 4 of the Dental Service Plan Act. See Illinois Compiled Statutes 215 ILCS 5/1003
Insurance transaction: means any transaction involving insurance primarily for personal, family or household needs rather than business or professional needs which entails: (1) the determination of an individual's eligibility
Insurance-support organization: means : (1) any person who regularly engages, in whole or in
part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurance institution or agent for insurance transactions, including:
(a) the furnishing of consumer reports or
investigative consumer reports to an insurance institution or agent for use in connection with an insurance transaction, or
(b) the collection of personal information from
insurance institutions, agents or other insurance-support organizations for the purpose of detecting or preventing fraud, material misrepresentation or material nondisclosure in connection with insurance underwriting or insurance claim activity. See Illinois Compiled Statutes 215 ILCS 5/1003
Medical professional: means any person licensed or certified to provide health care services to natural persons, including but not limited to, a physician, dentist, nurse, optometrist, chiropractor, naprapath, pharmacist, physical or occupational therapist, psychiatric social worker, speech therapist, clinical dietitian or clinical psychologist. See Illinois Compiled Statutes 215 ILCS 5/1003
Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
Personal information: includes an individual's name and address and "medical-record information" but does not include "privileged information". See Illinois Compiled Statutes 215 ILCS 5/1003
Policyholder: means any person who: (1) in the case of individual property or casualty
insurance, is a present named insured;
(2) in the case of individual life, health or
disability insurance, is a present policyowner; or
Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
Residual market mechanism: means an association, organization or other entity described in Article XXXIII of this Act, or Section 7-501 of The Illinois Vehicle Code. See Illinois Compiled Statutes 215 ILCS 5/1003
State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
Unauthorized insurer: means an insurance institution that has not been granted a certificate of authority by the Director to transact the business of insurance in this State. See Illinois Compiled Statutes 215 ILCS 5/1003
under common control with: means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. See Illinois Compiled Statutes 215 ILCS 5/1003
(1) any of the following actions with respect to
insurance transactions involving insurance coverage which is individually underwritten:
(a) a declination of insurance coverage, (b) a termination of insurance coverage, (c) failure of an agent to apply for insurance
coverage with a specific insurance institution which the agent represents and which is requested by an applicant,
(d) in the case of a property or casualty
insurance coverage:
(i) placement by an insurance institution or
agent of a risk with a residual market mechanism, an unauthorized insurer or an insurance institution which specializes in substandard risks, or
(ii) the charging of a higher rate on the
basis of information which differs from that which the applicant or policyholder furnished, or
(e) in the case of life, health or disability
insurance coverage, an offer to insure at higher than standard rates.
(2) Notwithstanding paragraph (1) above, the
following actions shall not be considered adverse underwriting decisions but the insurance institution or agent responsible for their occurrence shall nevertheless provide the applicant or policyholder with the specific reason or reasons for their occurrence:
(a) the termination of an individual policy form
on a class or statewide basis,
(b) a declination of insurance coverage solely
because such coverage is not available on a class or statewide basis, or
(c) the rescission of a policy. (B) “Affiliate” or “affiliated” means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with another person. (C) “Agent” means an individual, firm, partnership, association or corporation who is involved in the solicitation, negotiation or binding of coverages for or on applications or policies of insurance, covering property or risks located in this State. For the purposes of this Article, both “Insurance Agent” and “Insurance Broker”, as defined in Section 490, shall be considered an agent. (D) “Applicant” means any person who seeks to contract for insurance coverage other than a person seeking group insurance that is not individually underwritten. (E) “Director” means the Director of Insurance. (F) “Consumer report” means any written, oral or other communication of information bearing on a natural person’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living which is used or expected to be used in connection with an insurance transaction. (G) “Consumer reporting agency” means any person who: (1) regularly engages, in whole or in part, in the
practice of assembling or preparing consumer reports for a monetary fee,
(2) obtains information primarily from sources other
than insurance institutions, and
(3) furnishes consumer reports to other persons. (H) “Control”, including the terms “controlled by” or “under common control with”, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. (I) “Declination of insurance coverage” means a denial, in whole or in part, by an insurance institution or agent of requested insurance coverage. (J) “Individual” means any natural person who: (1) in the case of property or casualty insurance, is
a past, present or proposed named insured or certificateholder;
(2) in the case of life, health or disability
insurance, is a past, present or proposed principal insured or certificateholder;
(3) is a past, present or proposed policyowner; (4) is a past or present applicant; (5) is a past or present claimant; or (6) derived, derives or is proposed to derive
insurance coverage under an insurance policy or certificate subject to this Article.
(K) “Institutional source” means any person or governmental entity that provides information about an individual to an agent, insurance institution or insurance-support organization, other than: (1) an agent, (2) the individual who is the subject of the
information, or
(3) a natural person acting in a personal capacity
rather than in a business or professional capacity.
(L) “Insurance institution” means any corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyd’s insurer, fraternal benefit society or other person engaged in the business of insurance, health maintenance organizations as defined in § 2 of the Health Maintenance Organization Act, voluntary health services plans as defined in § 2 of the Voluntary Health Services Plans Act, and dental service plans as defined in § 4 of the Dental Service Plan Act. “Insurance institution” shall not include agents or insurance-support organizations. (M) “Insurance-support organization” means: (1) any person who regularly engages, in whole or in
part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurance institution or agent for insurance transactions, including:
(a) the furnishing of consumer reports or
investigative consumer reports to an insurance institution or agent for use in connection with an insurance transaction, or
(b) the collection of personal information from
insurance institutions, agents or other insurance-support organizations for the purpose of detecting or preventing fraud, material misrepresentation or material nondisclosure in connection with insurance underwriting or insurance claim activity.
(2) Notwithstanding paragraph (1) above, the
following persons shall not be considered “insurance-support organizations” for purposes of this Article: agents, government institutions, insurance institutions, medical care institutions and medical professionals.
(N) “Insurance transaction” means any transaction involving insurance primarily for personal, family or household needs rather than business or professional needs which entails: (1) the determination of an individual’s eligibility
for an insurance coverage, benefit or payment, or
(2) the servicing of an insurance application,
policy, contract or certificate.
(O) “Investigative consumer report” means a consumer report or portion thereof in which information about a natural person’s character, general reputation, personal characteristics or mode of living is obtained through personal interviews with the person’s neighbors, friends, associates, acquaintances or others who may have knowledge concerning such items of information. (P) “Medical-care institution” means any facility or institution that is licensed to provide health care services to natural persons, including but not limited to: hospitals, skilled nursing facilities, home-health agencies, medical clinics, rehabilitation agencies and public-health agencies and health-maintenance organizations. (Q) “Medical professional” means any person licensed or certified to provide health care services to natural persons, including but not limited to, a physician, dentist, nurse, optometrist, chiropractor, naprapath, pharmacist, physical or occupational therapist, psychiatric social worker, speech therapist, clinical dietitian or clinical psychologist. (R) “Medical-record information” means personal information which: (1) relates to an individual’s physical or mental
condition, medical history or medical treatment, and
(2) is obtained from a medical professional or
medical-care institution, from the individual, or from the individual’s spouse, parent or legal guardian.
(S) “Person” means any natural person, corporation, association, partnership or other legal entity. (T) “Personal information” means any individually identifiable information gathered in connection with an insurance transaction from which judgments can be made about an individual’s character, habits, avocations, finances, occupation, general reputation, credit, health or any other personal characteristics. “Personal information” includes an individual’s name and address and “medical-record information” but does not include “privileged information”. (U) “Policyholder” means any person who: (1) in the case of individual property or casualty
insurance, is a present named insured;
(2) in the case of individual life, health or
disability insurance, is a present policyowner; or
(3) in the case of group insurance which is
individually underwritten, is a present group certificateholder.
(V) “Pretext interview” means an interview whereby a person, in an attempt to obtain information about a natural person, performs one or more of the following acts: (1) pretends to be someone he or she is not, (2) pretends to represent a person he or she is not
in fact representing,
(3) misrepresents the true purpose of the interview,
or
(4) refuses to identify himself or herself upon
request.
(W) “Privileged information” means any individually identifiable information that: (1) relates to a claim for insurance benefits or a civil or criminal proceeding involving an individual, and (2) is collected in connection with or in reasonable anticipation of a claim for insurance benefits or civil or criminal proceeding involving an individual; provided, however, information otherwise meeting the requirements of this subsection shall nevertheless be considered “personal information” under this Article if it is disclosed in violation of Section 1014 of this Article. (X) “Residual market mechanism” means an association, organization or other entity described in Article XXXIII of this Act, or Section 7-501 of The Illinois Vehicle Code. (Y) “Termination of insurance coverage” or “termination of an insurance policy” means either a cancellation or nonrenewal of an insurance policy, in whole or in part, for any reason other than the failure to pay a premium as required by the policy. (Z) “Unauthorized insurer” means an insurance institution that has not been granted a certificate of authority by the Director to transact the business of insurance in this State.
