Insurance-State Regulation-Unauthorized Insurers False Advertising Process Act
Recent Illinois legislation subjects foreign insurers who are not authorized to do business in Illinois and who circulate false advertising there to the jurisdiction of the state courts and the State Insurance Commissioner. When the Insurance Commissioner is informed of false or misleading advertising, he is to notify the supervisory insurance official of the domicile state of the foreign insurer. If this notice does not result in the cessation of the activity, the Commissioner may proceed against the insurer under the state’s Unfair Trade Practice Act. Since the typical mail order insurer will not have agents or property within the state, the mere solicitation of business, by mail or otherwise, is made the equivalent of an appointment of the Insurance Commissioner as the insurer’s agent for all service of process. Unauthorized Insurer’s False Advertising Process Act, ILL. ANN. STAT. ch. 73, § 735.1 (Smith-Hurd Supp. 1961).