What is the primary purpose of the Illinois Insurance Code?

The primary purpose of the Illinois Insurance Code is to regulate the conduct of insurance companies and protect consumers. This code establishes the framework within which insurance companies must operate, ensuring they adhere to fair practices and maintain solvency to meet their obligations to policyholders. By enforcing regulations on topics such as licensing, rates, claims processing, and consumer rights, the Insurance Code safeguards consumers from unfair or deceptive practices.

In addition, the code helps promote a stable and competitive insurance market in Illinois, which benefits not only consumers but also the economy as a whole. The specific focus on insurance companies distinguishes the Illinois Insurance Code from other regulatory frameworks that may address healthcare providers, financial institutions, or real estate transactions, confirming that its main objective is centered on insurance regulation and consumer protection.