P&CIllinoishard
An Illinois personal auto insurer changes its rating territories and increases base rates by 8% for the urban Cook County territory. Under Illinois law, what filing or approval step is required before the new rates may be used?
None — Illinois open competition allows immediate use, subject to the 215 ILCS 5/424 standard and IDOI post-use review
BPrior approval from the IDOI Director under 215 ILCS 5/Article XXIV ½
CA file-and-use filing under 215 ILCS 5/456
DApproval by NCCI before implementation
Why this is the answer
Personal auto in Illinois falls under the open competition system in 215 ILCS 5/Article XXIV ½. The insurer may implement the new rates without prior IDOI approval or a file-and-use filing. The rates must still satisfy 215 ILCS 5/424 (not excessive, inadequate, or unfairly discriminatory). The Director retains post-use authority to investigate territorial or rate-level changes that produce unfair discrimination.
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