Illinois Company Bulletin 2025-06

Springfield Office 320 W. Washington Street Springfield, Illinois 62767 (217) 782-4515 Chicago Office 115 S. LaSalle Street, 13th Floor Chicago, Illinois 60603 (312) 814-2420 Illinois Department of Insurance JB PRITZKER Governor ANN GILLESPIE Acting Director TO: All insurance companies, insurance support organizations, self-insured entities, and other providers of insurance products and services doing business in the State of Illinois FROM: Ann Gillespie, Acting Director DATE: March 31, 2025 RE: Company Bulletin 2025-06 - Insurance Fraud Reporting in Illinois It has been brought to the Department’s attention that some Illinois insurers are operating under the assumption that there is a requirement to participate in or establish a program of regular reporting of suspected insurance fraud committed against companies to the Department or to a third-party. No such mandate exists in Illinois. Insurer Participation in Fraud Detection and Reporting Programs is Voluntary • The Department recognizes that a company may make a business decision to participate in fraud detection and reporting programs offered by third-party organizations. • These organizations may also share information with the Illinois law enforcement agencies responsible for the investigation and/or prosecution of criminal insurance fraud. The Illinois Insurance Code does NOT Create an Insurance Fraud Reporting Requirement • Section 155.23 of the Illinois Insurance Code, 215 ILCS 5//155.23, authorizes the Department to promulgate rules that would create mandatory reporting requirements and allows the Department to designate one or more third parties to assist with gathering such required information. The Department is only authorized to promulgate rules under Section 155.23 after the Director has determined that such reporting is necessary to detect fraud or arson. • The Director has made no such determination. The Department does not have any Section 155.23 insurance fraud reporting rules and we have not designated any organization to collect information under Section 155.23. Workers’ Compensation Fraud and Consumer Fraud Should be Reported to the Department • The Department has a Workers’ Compensation Fraud Unit (WCFU) that investigates reports of workers compensation fraud and may refer cases for prosecution to the Illinois Attorney General or the county State’s Attorney. These are the only types of criminal investigations the Department conducts. Instructions on how to report incidents of workers’ compensation fraud to the WCFU are found on the Department’s website. • If an insurance company suspects a consumer has been defrauded in relation to an insurance transaction in Illinois, that information should be reported to the Department via our consumer complaint process, in addition to reporting the suspected crime to the appropriate law enforcement agency. Page 2 of 2 The State of Illinois Does NOT have an Insurance Fraud Bureau • The State of Illinois does not have a general insurance fraud bureau that investigates or reviews insurer reports on other types of suspected insurance fraud committed against companies. • Therefore, if a regulated entity wants a criminal investigation conducted, they need to ensure that the information is reported to the Illinois law enforcement agency responsible for investigating or prosecuting the incident of suspect insurance fraud. • The sharing of personal and privilidged information with these agencies is permitted by the Insurance Information and Privacy Protection Act. 215 ILCS 5/1014(F). Questions regarding this Company Bulletin may be emailed to DOI.InfoDesk@Illinois.gov.