What is one of the main functions of the Illinois Insurance Code?

The Illinois Insurance Code serves several essential functions, but one of its primary purposes is to provide protections to consumers and promote fair practices in the insurance market. This is achieved by establishing regulations that insurance companies must follow, thereby ensuring that policyholders are treated fairly and equitably. The Code aims to enhance consumer confidence in the insurance system by outlining standards for claims handling, policy cancellation, and other aspects of insurance operations.

This consumer protection element not only promotes fairness in transactions between insurers and insured parties, but it also encourages transparency within the industry. By having clear guidelines, the Code helps mitigate the risks of unfair practices, enabling consumers to better understand their rights and responsibilities. This broad protective framework is vital for maintaining public trust in the insurance system and ensuring that consumers are adequately shielded from potential abuses or unfair practices by insurance providers.