Illinois Clarifies Voluntary Insurance Fraud Reporting Guidelines for Insurers

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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.

Click here to see IL Company Bulletin 2025-06

  • Bulletin
  • Illinois
  • Department of Insurance

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