Unfair Methods of Competition and Unfair and Deceptive Acts and Practices

What this document is

215 ILCS 5/ Illinois Insurance Code, Article XXVI - Unfair Methods of Competition and Unfair and Deceptive Acts and Practices (Secs. 421-434) is a state statute published by Illinois General Assembly (ilga.gov). It is one of the Illinois documents that insurance license exam questions are written from, including illinois life & health, illinois property & casualty, illinois personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 215 ILCS 5/424(2) (Boycott, Coercion or Intimidation Restraining the Business of Insurance)

  “Entering into any agreement to commit, or by any concerted action committing, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance.”

• 215 ILCS 5/427.5 (Unfair and deceptive agreements voidable by the Director)

  “Sec. 427.5. Unfair and deceptive agreements voidable by the Director. If, after a hearing under Section 426, the Director determines that a person has violated paragraph (7) or (8) of Section 424, the Director may declare void and unenforceable any agreement or policy of insurance solicited,...”

• 215 ILCS 5/424(5) (Motor Vehicle Rates and Physical Disability)

  “Making or charging any rate for insurance against losses arising from the use or ownership of a motor vehicle which requires a higher premium of any person by reason of his physical disability, race, color, religion, or national origin.”

• 215 ILCS 5/424(7) (Senior and nursing home solicitation safeguards)

  “(7) Soliciting either an individual who is a resident of a nursing home or long-term care facility or an individual who is over the age of 65, as described in paragraph (8) of this Section, to purchase accident or health insurance, unless the person who is selling the insurance: (A) advises the...”

• 215 ILCS 5/426(1) (Hearings: statement of charges and notice)

  “(1) Whenever the Director shall have reason to believe that any such person has been engaged or is engaging in this State in any unfair method of competition or any unfair or deceptive act or practice defined in Section 424, or that any person domiciled in or resident of this State has been engaged...”

• 215 ILCS 5/424(3) (Unfair Discrimination Between Risks of the Same Class)

  “Making or permitting, in the case of insurance of the types enumerated in Classes 1, 2, and 3 of Section 4, any unfair discrimination between individuals or risks of the same class or of essentially the same hazard and expense element because of the race, color, religion, or national origin of such...”

• 215 ILCS 5/ § 426(2) (Hearings: intervention and opportunity to be heard)

  “At the time and place fixed for such hearing, such person shall have an opportunity to be heard in person or by counsel and to show cause why an order should not be made by the Director requiring such persons to cease and desist from the acts, methods or practices so complained of. Upon good cause...”

• 215 ILCS 5/ § 431 (Penalty)

  “Any person who violates a cease and desist order of the Director under Section 427, after it has become final, and while such order is in effect, or who violates an order of the Circuit Court under Section 429, shall, upon proof thereof to the satisfaction of the court, forfeit and pay to the State...”

• 215 ILCS 5/ § 429(2) (Procedure as to unfair practices which are not defined)

  “If such report charges a violation of this Article and if such method of competition, act, or practice has not been discontinued, the Director may, through the Attorney General of this State, at any time after the service of such report cause a complaint to be filed in the Circuit Court of Sangamon...”

• 215 ILCS 5 § 424(1) (Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Defined)

  “Sec. 424. Unfair methods of competition and unfair or deceptive acts or practices defined. The following are hereby defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: (1) The commission by any person of any one or more of the acts...”

• 215 ILCS 5 § 427.5 (Unfair and Deceptive Agreements Voidable by the Director)

  “If, after a hearing under Section 426, the Director determines that a person has violated paragraph (7) or (8) of Section 424, the Director may declare void and unenforceable any agreement or policy of insurance solicited, entered into, or amended as a result of that violation.”

• 215 ILCS 5 § 423(2) (Unfair Methods of Competition or Unfair and Deceptive Acts or Practices Prohibited)

  “(2) No person domiciled in or resident of this State shall engage in any other State, Territory, Province, Possession, Country or District in which he is not licensed or otherwise authorized to transact business in any trade practice which is defined in this Article as, or determined pursuant to...”

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