Bill Text: IL SB3466 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. In provisions concerning prohibited payment or acceptance of rebates, provides that nothing in the language shall prohibit an insurer, by or through its employees, affiliates, insurance producers, or third-party representatives, or an insurance producer acting on its own behalf, from offering or providing products or services that are at least tangentially related to an insurance contract or the administration of an insurance contract for free or for less than fair market value as long as the receipt of the products or services is not contingent upon the purchase of insurance and the products or services are offered on the same terms to all potential insurance customers based on documented objective criteria and in a manner that is not unfairly discriminatory.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-10-21 - Chief Sponsor Changed to Sen. Don Harmon [SB3466 Detail]

Download: Illinois-2021-SB3466-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB3466 Introduced 1/18/2022, by Sen. Antonio Muñoz SYNOPSIS AS INTRODUCED:
215 ILCS 5/151 from Ch. 73, par. 763
Amends the Illinois Insurance Code. In provisions concerning prohibited payment or acceptance of rebates, provides that nothing in the language shall prohibit an insurer, by or through its employees, affiliates, insurance producers, or third-party representatives, or an insurance producer acting on its own behalf, from offering or providing products or services that are at least tangentially related to an insurance contract or the administration of an insurance contract for free or for less than fair market value as long as the receipt of the products or services is not contingent upon the purchase of insurance and the products or services are offered on the same terms to all potential insurance customers based on documented objective criteria and in a manner that is not unfairly discriminatory.
LRB102 22346 BMS 32944 b
A BILL FOR
SB3466 LRB102 22346 BMS 32944 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 151 as follows:
(215 ILCS 5/151) (from Ch. 73, par. 763)
Sec. 151. Payment or acceptance of rebates prohibited. (1)
No company doing business in this State and no insurance agent
or broker shall offer, promise, allow, give, set off or pay,
directly or indirectly, any rebate of or part of the premium
payable on the policy, or on any policy or agent's commission
thereon or earnings, profits, dividends or other benefits
founded, arising, accruing or to accrue thereon or therefrom,
or any special advantage in date of policy or age of issue, or
any paid employment or contract for services of any kind or any
other valuable consideration or inducement to or for insurance
on any risk in this State, now or hereafter to be written, or
for or upon any renewal of any such insurance, which is not
specified in the policy contract of insurance, or offer,
promise, give, option, sell, purchase any stocks, bonds,
securities or property or any dividends or profits accruing or
to accrue thereon, or other thing of value whatsoever as
inducement to insurance or in connection therewith, or any

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renewal thereof which is not specified in the policy. Nothing
in this Section shall prevent a company from paying a bonus to
policyholders or otherwise abating their premiums in whole or
in part out of surplus accumulated from nonparticipating
insurance nor prevent a company which transacts industrial
life insurance on a weekly payment plan from returning to
policyholders who have made premium payments for a period of
at least one year directly to the company at its home or
district offices the percentage of premium which the company
would otherwise have paid for the weekly collection of such
premium nor shall this Section be construed to prevent the
taking of a bona fide obligation, with interest at six per
centum per annum, in payment of any premium.
Nothing in this Section shall prevent a company from
offering a child passenger restraint system or a discount from
the purchase price of a child passenger restraint system to
policyholders, when the purpose of such restraint system is
the safety of a child and compliance with the "Child Passenger
Protection Act", approved June 27, 1983, as amended.
Nothing in this Section shall prohibit an insurer, by or
through its employees, affiliates, insurance producers, or
third-party representatives, or an insurance producer acting
on its own behalf, from offering or providing products or
services that are at least tangentially related to an
insurance contract or the administration of an insurance
contract for free or for less than fair market value as long as

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the receipt of the products or services is not contingent upon
the purchase of insurance and the products or services are
offered on the same terms to all potential insurance customers
based on documented objective criteria and in a manner that is
not unfairly discriminatory.
(2) No insured person or party or applicant for insurance
shall directly or indirectly receive or accept, or agree to
receive or accept any rebate of premium or of any part thereof
or all or any part of any agent's or broker's commission
thereon, or any favor or advantage, or share in any benefit to
accrue under any policy of insurance, or any valuable
consideration or inducement, other than such as is specified
in the policy.
(Source: P.A. 83-1320.)