Casualty Insurance, Fidelity Bonds and Surety Business

What this document is

215 ILCS 5, Article XXII - Casualty Insurance, Fidelity Bonds and Surety Business (Secs. 378 through 392.1, 17 sections) is a state statute published by Illinois General Assembly, Legislative Reference Bureau (ilga.gov). It is one of the Illinois documents that insurance license exam questions are written from, including illinois property & casualty 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 5/388 (Standard provision for liability policies - Provisions forbidden)

  “No policy of insurance against liability or indemnity for loss or damage to any person other than the insured, or to the property of any person other than the insured, for which any insured is liable, shall be issued or delivered in this State after July 1, 1937, by any company subject to this...”

• 215 ILCS 5/392.1 (Casualty and surety companies exempted from filing appeal bonds upon proof of liability - Taxable costs)

  “Whenever an appeal is taken from any judgment in any case wherein it appears to the court that all of the particular liability of the appellant thereunder is insured against in and by a liability insurance policy or surety bond issued by any insurance company authorized to do business in the State...”

• 215 ILCS 5/388a(a) (Group vehicle insurance defined)

  “Group vehicle insurance is declared to be that form of vehicle insurance covering not less than 10 employees, members, or employees of members, written under a master policy issued to any governmental corporation, unit, agency or department thereof, or to any corporation, co-partnership, individual...”

• 215 ILCS 5/390 (Corporate bonds satisfy legal requirement)

  “in case two or more of such companies execute any such instrument each of such companies is hereby authorized and empowered to limit its liability therein to an amount less than the aggregate penalty of such instrument and also to limit its liability to a pro rata part of any and all losses under such instrument”

• 215 ILCS 5/388c ("Entire contract" specified)

  “Each group vehicle insurance policy shall provide that the policy, the application of the employer, or executive officer or trustee of any association, and the individual applications, if any, of the employees, members or employees of members insured shall constitute the entire contract between the...”

• 215 ILCS 5/388g (Cancellation restricted)

  “An insurer may not cancel the insurance of an individual member of a group covered by a group vehicle insurance policy except for the non-payment of premium by such member or unless the insurance for the entire group is cancelled.”

• 215 ILCS 5/392 (Estoppel)

  “Any company which shall execute any bond, recognizance, obligation, stipulation or undertaking as surety shall be estopped, in any proceeding to enforce the liability which it shall have assumed to incur, to deny its power to execute the same or assume such liability.”

• 215 ILCS 5/388e (New members of group)

  “Each group vehicle insurance policy shall provide that to the group or class thereof originally insured shall be added from time to time all new employees of the employer, members of the association or employees of members eligible to and applying for insurance in such group or class but...”

• 215 ILCS 5/388f (Conversion rights)

  “Each group vehicle insurance policy shall provide that any member of the group shall have the right to convert his group policy to an individual standard policy of insurance in the same company as offered by the insurer to the non-group insureds upon termination of his connection with the group...”

• 215 ILCS 5/391 (Trustee may have corporate surety)

  “A party of whom a bond or other undertaking is required or permitted or by law allowed may agree with his sureties for the deposit or safekeeping of any or all moneys, assets and other property for which he, she or it is or may be held responsible, with a bank, savings bank, safe deposit, savings...”

• 215 ILCS 5/388d (Certificates required)

  “Each group vehicle insurance policy shall provide that the insurer will issue to the employer, or to the executive officer or trustee of the association, for delivery to the employee, member or employee of a member, who is insured under such policy, an individual certificate setting forth a...”

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• 50 Ill. Adm. Code Part 919 - Improper Claims Practice (complete Part: Secs. 919.10 through 919.100 and Exhibit A, 11 sections)Regulation
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