IL| The Illinois Department of Insurance issued Company Bulletin 2025-06 to clarify that there is no mandatory requirement for insurers operating in Illinois to report suspected insurance fraud to the Department or third-party organizations. Participation in fraud detection and reporting programs is voluntary, and specific protocols exist for reporting workers’ compensation fraud and consumer fraud.
Key points:
- Voluntary Participation: Insurers may choose to participate in third-party fraud detection programs, which can share information with law enforcement agencies, but this is not mandated by Illinois law.
- No General Reporting Requirement: The Illinois Insurance Code does not mandate insurers to report suspected fraud unless rules are promulgated under Section 155.23, which has not occurred.
- Fraud Reporting Guidelines: Workers’ compensation fraud should be reported to the Department’s Workers’ Compensation Fraud Unit, while consumer fraud can be reported via the Department’s complaint process and appropriate law enforcement agencies.