P&CIllinoismedium
Under 215 ILCS 5/155.22, an insurer that knows or reasonably believes that an insurance fraud has been or is about to be committed has what obligation?
AFile a civil RICO lawsuit within 30 days
BCancel all policies issued to the suspect immediately
Report the suspected fraud to the IDOI Director or designated authority
DPay the claim and seek subrogation later
Why this is the answer
Section 155.22 of the Illinois Insurance Code requires any insurer with knowledge or reasonable belief that insurance fraud has been, is being, or will be committed to furnish that information to the IDOI Director or designated authority. Reporting in good faith is protected by 215 ILCS 5/155.23 immunity. Filing a civil RICO suit, canceling all suspect policies, or paying then subrogating are not the statutory reporting duty under 155.22.
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