Life insurance: THE DIRECTOR
All hearings under this code shall be held
at such time and place as designated in a notice that shall be given by the Director to the person affected at least 10 days before the date designated in the hearing notice.
Violation of lawful and final order of The Director
failing to comply with such an order in the manner pursuant to this section (5/401.1), then such person must pay a fine at the rate of $100 per day, not to exceed $5,000 maximum.
General powers of the Director
1) to make reasonable rules and regulations f or insurance 2) to conduct investigations to see if any person has violated laws 3) to request the attorney general to assist the Director to enforce his lawful orders 4)to utilize criminal information obtained under state police law to carry out his powers
Applies to All Companies and Persons Subject to Examination by the Director
Anyone purporting to transact insurance business in Illinois is subject to the directors powers. the Director can issue a cease and desist order to anyone whose behavior threatens insolvency of a company or endangers policy holders, creditors, or the public. This Cease and Desist order can be issued before any hearing is actually conducted.
Regulatory Examinations (Producers)
The Director can examine any holder of any type of producer license as well as any applicant of any type of producer license (including a business entity license). If a report is made, the Director must deliver or send by registered mail a copy of this report to the examined person's address of record. The person examined may request a hearing within 14 days after receiving a hearing report copy. Any person who violates or aids and abets any violation of a written order issued under this code Section shall be guilty of a business offense, and his or her license may be revoked or suspended and subjected to a civil penalty not to exceed $20,000.
Timing of the Director's conduct of a hearing
When the Director conducts a hearing, he must issue a written order based on the examination report and hearing within 90 days after the report is filed or within 90 days after the hearing.
If a cease and desist order is issued by the Director
the Director must serve notice to the recipient of the order of a hearing to be held at a fixed time and place, which may not be less than 20 or more than 30 days after the notice of hearing is served to the recipient. If after the hearing the allegations are found to be true, the Director may remedy the conduct with an order or orders as he deems necessary.
Penalty for Cease and Desist Order Violation Relating to Unfair Competition
violating a Cease and Desist specifically relating to unfair marketing practices must pay a fine not to exceed $1,000 for each violation, which can be recovered in a civil action.
Market Conduct and Non-Financial Examinations
Any person being examined for their conduct (not related to financial matters) must give the Director easy and free access at all reasonable hours at its office or location all books, records, papers, etc. Directors and examiners can administer oaths to examine any party under oath The Director must notify any person made the subject of a conduct examination of the contents of a verified examination report before making such a report public and afford the person the opportunity to a hearing. The person may request a hearing within 10 days after receiving the examination report
Power to Subpoena and Examine Witnesses
To conduct a hearing, examination, or investigation, the Director may subpoena any person and compel attendance and require the production of any relevant records, books, or papers. Any person who fails to obey a subpoena or refuses to be sworn to be examined without a just reason can be fined a maximum of $2,000.
aiding and abetting any violation of a written order
shall be guilty of a BUSINESS offense for which they may be fined not more than $5,000
The insurance Director
the Director is "charged" with the rights, powers, and duties appertaining to the enforcement and execution of all the insurance laws of the state. the Director does not have the power or authority to imprison anyone. The word person used below includes individuals and companies as legal persons. The Director protects the public.