P&CIllinoismedium
Even under Illinois's open competition system, what remedy is available to the IDOI Director if an investigation finds that an insurer's P&C rates violate the standard in 215 ILCS 5/424?
The Director may order the insurer to discontinue use of the rate and may impose other corrective actions
BThe Director must obtain a court injunction in every case before acting
CThe Director may only request that the insurer voluntarily change its rates
DThe Director must refer the matter to the General Assembly for legislative action
Why this is the answer
Open competition under 215 ILCS 5/Article XXIV ½ does not strip the IDOI Director of enforcement authority. Under 215 ILCS 5/424 — read together with Director powers in 215 ILCS 5/401-403A — the Director may investigate suspect rates, hold administrative hearings under the Illinois APA, and order the insurer to discontinue use of any rate found to be excessive, inadequate, or unfairly discriminatory.
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