Key Takeaways
- The Illinois Department of Insurance (IDOI) regulates all insurance activities in Illinois under the Illinois Insurance Code (215 ILCS 5)
- The Director of Insurance is appointed by the Governor and confirmed by the Senate
- IDOI handles licensing, enforcement, consumer complaints, rate review, and market conduct examinations
- Illinois follows a file-and-use system for most insurance rates
- The Illinois Insurance Code is found in 215 ILCS 5, with regulations in 50 Illinois Administrative Code
Illinois Department of Insurance (IDOI)
Important: This study guide covers Illinois state-specific Life & Health insurance content only. You should complete the national Life & Health exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Illinois Department of Insurance (IDOI) is the state agency responsible for regulating the insurance industry in Illinois. The Director of Insurance is appointed by the Governor, unlike some states where the commissioner is elected.
The Director of Insurance
The Director of Insurance is:
- Appointed by the Governor of Illinois
- Confirmed by the Illinois Senate
- Responsible for enforcing the Illinois Insurance Code
- Authorized to adopt regulations, investigate violations, and discipline licensees
Director Powers and Duties
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rulemaking | Adopt regulations interpreting the Insurance Code |
| Enforcement | Investigate and prosecute violations |
| Rate Review | Review and approve insurance rates |
| Consumer Protection | Handle complaints and protect policyholders |
| Market Conduct | Examine insurer business practices |
The Illinois Insurance Code
Illinois insurance law is found in the Illinois Insurance Code (215 ILCS 5), with implementing regulations in the Illinois Administrative Code (50 Ill. Adm. Code). The Code contains:
- Licensing requirements for producers and insurers
- Policy standards and required provisions
- Consumer protections and disclosure requirements
- Prohibited practices and penalties
- Claims handling requirements
Exam Tip: Remember that the Director of Insurance is APPOINTED in Illinois (not elected). The Illinois Insurance Code is 215 ILCS 5.
IDOI Organization
IDOI operates through several divisions:
- Producer Licensing Section - Handles agent/broker licensing
- Rate and Form Review - Reviews insurance rates and policy forms
- Market Conduct Section - Examines insurer practices
- Fraud Prevention Bureau - Investigates insurance fraud
- Consumer Services Section - Handles consumer complaints
How is the Illinois Director of Insurance selected?
Where is Illinois insurance law primarily found?