List of Classes/Clauses

1. Class 2, Clause (b).

To write Commercial auto physical damage insurance in Illinois, companies must be authorized to write:

1. Class 2, Clause (b) or
2. Class 3, Clause (e).

To write combination commercial auto liability and physical damage coverage in Illinois, companies must be licensed to write:

1. Class 2, clause (b), or
2. Class 2, Clause (b) and Class 3, Clause (e).

50 IL Adm. Code 754

NAIC Uniform Transmittal Form

Self-Certification form

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

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

"Me too" filings are not allowed.

If insurers wish to use the NAIC Uniform Transmittal form, the Division will accept such form, as long as the information required in Rule 753 is included.

1) the name of the advisory organization or company making the filing.
2) title, form number, and edition identification of the forms.
3) information as to what Class and Clause coverage is written under.
4) identification of all applicable endorsements and applications as to the policy forms for which the endorsements and applications are used.
5) notification as to whether the filing is new or supersedes a present filing.  Identification of all changes in all superseding filings as well as identification of all superseded forms is required.

6) effective date of use.

Companies under the same ownership or general management are required to make separate individual company filings. Company Group ("Me too") filings are unacceptable.

If insurers wish to use the NAIC Uniform Transmittal form, the Division will accept such form, as long as the information required in Rule 753 is included.

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.

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

However, such forms must comply with all laws, regulations, bulletins, etc. unless specifically exempted by the law, regulation, bulletin, etc.

215 ILCS 5/121-2.08

Per Section 121-2.08, "industrial insured" is an insured:

a) which procures the insurance of any risk or risks other than life and annuity contracts by use of the services of a full time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant;

b) whose aggregate annual premiums for insurance on all risks, except for life and accident and health insurance, total at least $100,000; and

c) which either (i) has at least 25 full time employees, (ii) has gross assets in excess of $3,000,000, or (iii) has annual gross revenues in excess of $5,000,000.

However, Section 143(2) only exempts such forms from filing with the Director of Insurance. Section 143(2) does not exempt such forms from complying with all other Illinois insurance laws, regulations, bulletins, etc. unless specifically exempted by the law, regulation, bulletin, etc.

Therefore, unless specifically exempted by the law, regulation, bulletin, etc. forms must comply with all laws, regulations, bulletins, etc. and may be checked for compliance via other regulatory processes such as consumer complaints, market conduct exams, etc.

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.

Insurer may change or delay the effective date of an advisory organization form filing by properly notifying the Division.

Insurer may authorize attorneys, consulting firms, etc. to submit form filings to the Division, as long as the filing includes proper authorization.

Insurer may change or delay the effective date of an advisory organization form filing by notifying the Division. The notice shall include the insurer name, FEIN number, line of insurance, advisory organization name and filing number, and effective date desired.

Insurer may authorize attorneys, consulting firms, etc. to submit form filings to the Division, as long as the filing includes a notice, signed by an authorized company officer, giving authority for the entity to act on the insurer's behalf on any issues related to the filing.

Applies only to policies issued for vehicles designed for highway use.

Applies only to policies issued for vehicles designed for highway use.

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.

Insurer shall 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.

Applies only to policies issued for vehicles designed for highway use.

Applies only to policies issued for vehicles designed for highway use.

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 Division of Insurance should be: Illinois Division of Insurance, Consumer Division 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.

Coverage for permissive drivers

Applies to private passenger type autos

215 ILCS 5/143.13a

(Effective 1/1/08)

Applies only to forms issued for vehicles designed for highway use.

Applies only to forms issued for vehicles designed for highway use.

Applies only to policies issued for vehicles designed for highway use.

215 ILCS 5/143(2)

Applies only to policies issued for vehicles designed for highway use.

Applies only to vehicles that are of the private passenger or station wagon type.

Any such endorsement must contain the following information:

a) The named insured's signature.
b) The date the endorsement was signed by the named insured.
c) The policy number.
d) Identification of the specific item or items to be excluded from the named insured's policy as a result of the endorsement.
e) Specific identification of the automobile to which the endorsement applies.

This prohibition does not apply to:

a) loss of or damage to any device or instrument designed for the recording, reproduction, receiving, or transmittal of sound, radio waves, microwaves or television signals unless such device or instrument is permanently installed in the dash or console opening specified by the manufacturer of the motor vehicle for the installation of such equipment.
b) loss or damage to any tape, wire, record disc or other medium for use with any device or instrument designed for the recording, reproduction, or recording and reproduction of sound.

Applies only to vehicles that are of the private passenger or station wagon type.

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.

Group vehicle policies may provide coverage for physical damage, liability or both.

A group physical damage policy and certificate incidental thereto does not meet IL mandatory insurance requirements and must contain a warning to that effect.

In addition, a group vehicle policy may be written to insure any group which may be insured under a group life insurance policy.

The term "employees" shall include the officers, managers and employees of subsidiary or affiliated corporations, and the individual proprietors, partners and employees of affiliated individuals and firms, when the business of such subsidiary or affiliated corporations, firms or individuals, is controlled by a common employer through stock ownership, contract or otherwise.

Group vehicle insurance policies may provide physical damage coverage, liability coverage, or a combination of physical damage and liability.

A group physical damage policy and a certificate incidental to that policy, issued in accordance with this Section, does not meet the mandatory insurance requirements under the IL Vehicle Code and must contain a warning to the consumer that the policy does not comply with those requirements.

Insurers with Class 2(b) and/or Class 3(e) authority may write group vehicle.

Such policies must be filed in accordance with Section 143.

Such policies must comply with Section 7-317 of the IL Vehicle Code.

215 ILCS 5/4

215 ILCS 5/143(2)

625 ILCS 7-317

Such policies must be filed per Section 143 and shall include provisions required by Sections 388c-388f.

A group vehicle insurance policy that provides liability coverage must comply with the requirements of Section 7-317 of the IL Vehicle Code.

Minimum Property Damage liability limits are $15,000 per accident.

Applies only to policies issued for vehicles designed for highway use.

Applies only to policies issued for vehicles designed for highway use.

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 Division of Insurance should be: Illinois Division of Insurance, Consumer Division 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."

95 IL. App. 34 3d 1122)

215 ILCS 5/143(2)

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.

Rebates -- penalties

215 ILCS 5/152

However, insurers may pay a bonus to policyholders or abate their premiums, in whole or in part, out of surplus accumulated from nonparticipating insurance.

Insurers may also offer a child passenger restraint system, or a discount from the purchase price of a child passenger restraining system to policyholders, when the purpose of such system is the safety of a child and compliance with the "Child Passenger Protection Act."

No insured or applicant shall directly or indirectly receive or accept any rebate of premium or agent's or broker's commission, or any favor or advantage, or any valuable consideration or inducement, other than such as is specified in the policy.

Any company or person violating any provision of Section 151 shall be guilty of a Class B misdemeanor.

Applies only to policies issued for vehicles designed for highway use.

Forms that include coverage for property damage liability must also include coverage for Uninsured Motorist Property Damage (UMPD) in amounts equal to the Actual Cash Value (ACV) of the vehicle, or $15,000, whichever is less, subject to a $250 deductible. Such coverage must be offered for all private passenger type vehicles not covered by collision. Although UMPD must be offered, no written rejection is necessary.

Also includes other requirements. See specific law for details to ensure that all forms comply with requirements.

Applies only to policies issued for vehicles designed for highway use.

Applies only to policies issued for vehicles designed for highway use.

Forms that include coverage for additional UM liability limits must include Underinsured Motorists Bodily Injury (UIM) coverage equal to the insured's UM bodily injury limits.

See specific law for details to ensure that all forms comply with requirements.

Applies only to policies issued for vehicles designed for highway use.

Illinois Supreme Court Case

Coverage for permissive drivers

Applies to private passenger type autos

215 ILCS 5/143.13a

(Effective 1/1/08)

Form RF-3 Summary Sheet must be filed for all rate level changes.

"Me too" filings are not allowed.

Advisory organizations no longer make rate and rule filings in Illinois, so the sections dealing with third party filers for rates and rules do not apply.

Form RF-3 Summary Sheet

Companies under the same ownership or general management are required to make separate individual filings. Company group ("Me too") filings are unacceptable.

Insurers must maintain documentary data for rate changes in its files so that it will be available for review by the Division's Property & Casualty Evaluation Section.

For every filing, two copies of a rate submission letter must be attached, which includes:

a) name of the company making the filing;

b) identification of the kinds of insurance to which the filing applies;

c) notification of whether the filing is new or supersedes a present filing. Identification of all changes in superseding filings, as well as identification of all superseded filings is required;

d) effective date of use.

Two copies of Form RF-3 Summary Sheet must be filed for all rate level changes. The form must indicate whether the information is "exact" or "estimated." A company must maintain documentary data for rate level changes so that it will be available for review by the Division's Property & Casualty Evaluation Section.

Insurers are prohibited from continuing to use the new rate level if the rates and rules and Form RF-3 have not been received by the Division within 10 days of the effective date.

NOTE: Advisory organizations no longer file rates and rules in Illinois. Therefore, each company must file its own rates and rules.

However, Form RF-3 is still required to be filed for all commercial auto rate level changes, within 10 days of the stated effective date.

However, even though the rates and rules themselves are not required to be filed, insurers must still file two copies of Form RF-3 (Summary Sheet) for all commercial auto rate level changes.

The form must indicate whether the information is "exact" or "estimated." A company must maintain documentary data for rate level changes so that it will be available for review by the Division's Property & Casualty Evaluation Section.

RF-3s must be received by the Division's Property & Casualty Evaluation Section no later than 10 days after the stated effective date of the rate level change.

Insurers are prohibited from continuing to use the new rate level if the Form RF-3 has not been received by the Division within 10 days of the effective date.

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

Insurers are not required to file rates on individual risks where the development of the rate for the individual risk is dependent on an inspection of improvements on real property and an application of a schedule, the elements of which include loss ratio, hazard analysis, risk analysis and classification of municipal fire defenses.

However the company must maintain documentary information and records in its offices, which will be available for review by the Division's Property & Casualty Evaluation Section.

Also includes specific time frames for how long the reduction must remain in effect.

Requirement does not apply to fleet policies or commercial unless there is a regularly assigned principal operator.

See specific law for details.

Applies only to policies issued for vehicles designed for highway use.

This section contains other requirements for financial responsibility filings -- see law for specific information and guidance.

Applies only to policies issued for vehicles designed for highway use.