1. Class 2, Clause (d)

To write Employers Liability insurance in Illinois, companies must be licensed to write:

1. Class 2, Clause (c)

Self-Certification form

If an authorized company officer completes the Self-Certification form, and submits such form with the filing, the Department will expedite review of the filing ahead of all other filings received to date.

The Department will track company compliance with the laws, regulations, bulletins, and this checklist and report such information to the NAIC.

Company Bulletin 88-53

Companies must assign a filing number which may be alpha, numeric, or both, but may not exceed 15 characters.

Each filing number must be unique within a company and may not be repeated on subsequent filings.

Please refer to Company Bulletin 88-53 for specific information and guidance.

Company Bulletin 88-53

Please refer to Company Bulletin 88-53 for specific information and guidance.

Because Section 143(3) exempts only riders or endorsements, policy forms applying to an individual risk must still be filed. In addition, because Section 143(3) exempts only endorsements applying to an individual risk, if a company uses the same endorsement on more than one risk, such form no longer qualifies for the filing exemption and must be filed.

Does not apply to insurance policies to which Section 19(o) of the Illinois Workers' Compensation Act applies (820 ILCS 305/19(o).

820 ILCS 305/19(o)

a) on closed claims, date and description of occurrence, and total amounts of payments;

b) on open claims, date and description of occurrence, total amount of payments and total reserves, if any; and

c) for any occurrence not included in (a) or (b), the date and description of occurrence and total reserves, if any.

Does not apply to insurance policies to which Section 19(o) of the Illinois Workers' Compensation Act applies (820 ILCS 305/19(o).

Insurer shall also provide additional loss information, including specific loss reserves, to the first named insured as soon as possible, but in no event later than 20 days of receipt of named insured's mailed or delivered written request for such information at the request of a prospective insurer.

Insurer shall automatically extend coverage under the existing policy, at the same terms and conditions by the same number of days it takes the insurer to provide the insured with this additional information.

Title 26 U.S.C. Sections 170(b)(1)(A)(i), (ii), and (vi).

Applies to policies issued to an individual, a religious organization described in Section 170(b)(1)(A)(i) of Title 26 of the United States Code, or an educational organization described in Section 170(b)(1)(A)(ii) of Title 26 of the United States Code, or any other nonprofit organization described in Section 170(b)(1)(A)(vi) of Title 26 of the United States Code that is organized and operated for religious, charitable, or educational purposes.

If the increase in the renewal premium is 30% or more, contains a change in deductibles or change in coverage that materially alters the policy, the company must adhere to provisions in Section 143.17a as described below.

A company making an assignment or transfer of a policy among or between insurers as stated above, must deliver to the named insured notice of such assignment or transfer at least 60 days prior to the renewal date. An exact and unaltered copy of the notice shall be sent to the insured's producer, if known, and agent of record.

Illinois Supreme Court Rule 236

If an insurer offers to renew directly to the named insured with a renewal increase of 30% or more, or with a change in deductible or coverage that materially alters the policy, the insurer must mail or deliver to the named insured, written notice of such premium increase or change at least 60 days prior to the renewal or anniversary date.
The increase in premium shall be the renewal premium based on the known exposure as of the date of the quotation compared to the premium as of the last day of coverage for the current year's policy, annualized. The premium may be subsequently amended to reflect any change in exposure or reinsurance costs not considered in the quotation.
The renewal notice must provide the specific dollar amount of the premium. Renewal notices issued with the wording "your premium increase will be 30% or more" do not comply with the Code.
An exact and unaltered copy of the notice shall be sent to the insured's broker, if known, or the agent of record.
If the insurer fails to provide 60 days notice in advance of the renewal or anniversary date but provides notice at least 31 days prior to the renewal or anniversary date, the company must extend the current policy under the same terms, conditions and premium to allow 60 days notice, and provide the actual renewal premium quotation and any change in coverage or deductible on the policy.  If the insurer fails to provide 31 days advance notice as described above, the insurer must renew the expiring policy under the same terms and conditions for an additional year or until the effective date of any similar coverage procured by the insured, whichever is earlier.  The insurer may increase the renewal premium, however such increase must be less than 30% of the expiring term’s premium, and notice of such increase must be delivered to the named insured on or before the date of expiration of the current policy period.
Proof of mailing or proof of receipt may be proven by a sworn affidavit by the insurer as to the usual and customary business practices of mailing notices pursuant to Section143.17a or may be proven consistent with Illinois Supreme Court Rule 236.

Section 143.14 also contains requirements for canceling premium financed insurance contracts and procedures for returning unearned premium. See law for specific details of requirements.

All notices shall include a specific explanation of the reason(s) for cancellation.

215 ILCS 5/143.16a

Insurer must maintain proof of mailing of such notice on a recognized U.S. Post Office form or a form acceptable to the U.S. Post Office or other commercial mail delivery service.

If the insurer fails to mail notice of nonrenewal to the named insured at least 60 days in advance of the nonrenewal date, the insurer must extend the policy for an additional year or until the effective date of any similar insurance procured by the insured, whichever is less, on the same terms and conditions as the policy sought to be terminated, unless the insurer has manifested its intention to renew at a different premium that represents an increase not exceeding 30%.

An exact and unaltered copy shall be sent to the insured's broker if known, or the agent of record, and to the mortgage or lien holder at the last mailing address known by the company.

Nonrenewal notice must provide a specific explanation of the reason(s) for nonrenewal.

50 IL Adm. Code 940

Rule 940 outlines requirements for certification of loss of reinsurance.

Title 26 U.S.C. Sections 170(b)(1)(A)(i), (ii), and (vi).

Applies to policies issued to an individual, a religious organization described in Section 170(b)(1)(A)(i) of Title 26 of the United States Code, or an educational organization described in Section 170(b)(1)(A)(ii) of Title 26 of the United States Code, or any other nonprofit organization described in Section 170(b)(1)(A)(vi) of Title 26 of the United States Code that is organized and operated for religious, charitable, or educational purposes.

However, insurers must give a specific explanation of the reason(s) for nonrenewal.

However, insurers must give a specific explanation of the reason(s) for nonrenewal.

Title 26 U.S.C. Sections 170(b)(1)(A)(i), (ii), and (vi).

Applies to policies issued to an individual, a religious organization described in Section 170(b)(1)(A)(i) of Title 26 of the United States Code, or an educational organization described in Section 170(b)(1)(A)(ii) of Title 26 of the United States Code, or any other nonprofit organization described in Section 170(b)(1)(A)(vi) of Title 26 of the United States Code that is organized and operated for religious, charitable, or educational purposes.

50 IL Adm. Code 931

Rule 931 provides more specific guidance that:

a) such notice shall accompany any newly issued policy or binder;

b) "written notice" shall be satisfied by: any printed notice delivered with a policy or certificate; any adhering label attached to a policy or certificate; any computerized notice issued concurrently with a computer issued policy or certificate; or any other form of individual written notice substantially similar to the above.

The address to be used for the Department of Insurance should be: Illinois Department of Insurance, Consumer Department or Public Services Section, Springfield, IL 62767.

The address to be used for the company shall be an office that can service all types of complaints. If one office cannot service all types of complaints, then the additional addresses of each appropriate service office must be given.

In addition to providing the required addresses, the notification should set forth the minimum amount of information included in the following suggested wording: "This notice is to advise you that should any complaints arise regarding this insurance, you may contact the following."

All forms must be identified by a descriptive title, form number and edition identification.

All forms must be printed in not less than eight-point type.

Title 26 U.S.C. Sections 170(b)(1)(A)(i), (ii), and (vi).

Applies to policies issued to an individual, a religious organization described in Section 170(b)(1)(A)(i) of Title 26 of the United States Code, or an educational organization described in Section 170(b)(1)(A)(ii) of Title 26 of the United States Code, or any other nonprofit organization described in Section 170(b)(1)(A)(vi) of Title 26 of the United States Code that is organized and operated for religious, charitable, or educational purposes.

Company Bulletin 2002-07

Terrorism Risk Insurance Program Reauthorization Act of 2007 and Filing Procedures and Requirements for Terrorism-Related Forms, Rules and Rates

Please refer to Company Bulletin 2008-01 for specific information and guidance.

215 ILCS 5/388a-388g

215 ILCS 5/393a-393g

215 ILCS 5/400.1

IL Adm. Code 2302

215 ILCS 5/900-906

Therefore, Workers' Compensation coverage may not be written on a group basis in Illinois. Per the referenced statutes and rules, the only lines of business that may be written on a group basis in Illinois are: a) group vehicle; b) group professional liability; c) group inland marine; d) group legal.

50 IL Adm. Code 931

Rule 931 provides more specific guidance that:

a) such notice shall accompany any newly issued policy or binder;

b) "written notice" shall be satisfied by: any printed notice delivered with a policy or certificate; any adhering label attached to a policy or certificate; any computerized notice issued concurrently with a computer issued policy or certificate; or any other form of individual written notice substantially similar to the above.

The address to be used for the Department of Insurance should be: Illinois Department of Insurance, Consumer Department or Public Services Section, Springfield, IL 62767.

The address to be used for the company shall be an office that can service all types of complaints. If one office cannot service all types of complaints, then the additional addresses of each appropriate service office must be given.

In addition to providing the required addresses, the notification should set forth the minimum amount of information included in the following suggested wording: "This notice is to advise you that should any complaints arise regarding this insurance, you may contact the following."

All forms must be identified by a descriptive title, form number and edition identification.

All forms must be printed in not less than eight-point type.

Any forms that contain provisions to the contrary are deemed to be misleading and ambiguous and to contain exceptions and conditions that unreasonably or deceptively affect the risks that are purported to be assumed by the policy, in violation of Section 143(2) and will be disapproved accordingly.

No insured named in a policy of insurance, nor any employee of such insured shall knowingly receive or accept, directly or indirectly, any such rebate, discount, abatement, credit, or reduction of premium, or any such special favor or advantage or valuable consideration or inducement.

In addition, insurers must file a Form RF-3 for all rate level changes.

50 IL Adm. Code 2901

Every company must file with the Director every manual of classifications, rules and rates, and every rating plan and modification that it intends to use. Filings must be made no later than 30 days after they become effective.

If a company adopts a pure premium filed by a rating organization, the company must file with the Director the modification factor it is using for expenses and profit so that the final rates in use by such company can be determined.

In addition, all companies must file a Form RF-3 (Summary Sheet) for all rate level changes, within 30 days after the effective date of such rate change.

Companies are prohibited from continuing to use the new rates and rate level if the rates and the Form RF-3 have not been submitted to the DOI within 30 days of the effective date.

Further, licensed rating organizations must file with the Director the rate classification system, all rating rules, rating plans, policy forms, and underwriting rules or similar materials, and each modification of any of the foregoing which it requires its members and subscribers to adhere to no later than 30 days before such filings or modifications are to take effect.

A rate in a competitive market is not excessive. A rate in a noncompetitive market is excessive if it is likely to produce a long run profit that is unreasonably high for the insurance provided or if expenses are unreasonably high in relation to the services rendered.

A rate is not inadequate unless it is clearly insufficient to sustain projected losses and expenses in the class of business to which it applies and the use of such rates has or, if continued, will have the effect of substantially lessening competition or the tendency to create monopoly in any market.

Unfair discrimination exists if, after allowing for practical limitations, price differentials fail to reflect equitably the differences in expected losses and expenses. A rate is not unfairly discriminatory because different premiums result for policyholders with like exposures but different expenses, or like expenses but different loss exposures, so long as the rate reflects the differences with reasonable accuracy.

This Section also sets forth procedures for which the Director will disapprove a Workers' Compensation rate for rule filing.

50 IL Adm. Code 2901

Filings must be made no later than 30 days after they become effective.

215 ILCS 5/456(1)(c)

Company must maintain documentary information regarding such individual risk rates for review by the Department's Property & Casualty Evaluation Section.

50 IL Adm. Code 2901

Filings must be made no later than 30 days after they become effective.