Key Takeaways
- The Illinois Department of Insurance (DOI) regulates all P&C insurance activities under the Illinois Insurance Code
- The Director of Insurance is appointed by the Governor with Senate confirmation
- Illinois uses a "file and use" rate system for most P&C lines, allowing rates to be used upon filing
- DOI has authority over licensing, rate review, market conduct, and consumer protection
- Illinois requires fingerprinting and background checks for all insurance license applicants
Illinois Department of Insurance (DOI)
Important: This study guide covers Illinois state-specific Property & Casualty insurance content only. You should complete the national Property & Casualty exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Illinois Department of Insurance (DOI) is the state agency responsible for regulating the Property & Casualty insurance industry in Illinois.
The Director of Insurance
The Director of Insurance is:
- Appointed by the Governor with Senate confirmation
- Serves at the pleasure of the Governor (no fixed term)
- Responsible for enforcing the Illinois Insurance Code (215 ILCS 5)
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
Director Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | File and use or prior approval depending on line |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt rules interpreting the Insurance Code |
Illinois Rate Regulation
Illinois uses different rate systems for different lines:
Rate Systems by Line
| Line of Insurance | Rate System |
|---|---|
| Personal Auto | File and use |
| Homeowners | File and use |
| Commercial Lines | File and use |
| Workers' Compensation | Administered pricing |
| Title Insurance | DOI regulated rates |
File and Use
Under Illinois file and use:
- Rates can be used upon filing with DOI
- DOI reviews rates after implementation
- Rates must not be excessive, inadequate, or unfairly discriminatory
- DOI can disapprove rates after review
Exam Tip: Illinois uses file and use for most personal lines P&C. Workers' compensation uses administered pricing with rates set by the National Council on Compensation Insurance (NCCI).
How is the Illinois Director of Insurance selected?
What rate system does Illinois use for personal auto insurance?