(a) An insurance producer, registered firm, and limited insurance representative shall exercise ordinary care and skill in renewing, procuring, binding, or placing the coverage requested by the insured or proposed insured.
2-2201.Ordinary care; civil liability.
Article II. Civil Practice · Part 22. Insurance Placement Liability · Last amended 1997 · Last verified July 20, 2026
In one sentenceSection 2-2201 holds insurance producers and their firms to an ordinary-care standard when placing coverage, shields them from being sued under fiduciary-duty standards except for misappropriating premium or claim money, and preserves ordinary negligence liability.
Full Text of 735 ILCS 5/2-2201
(b) No cause of action brought by any person or entity against any insurance producer, registered firm, or limited insurance representative concerning the sale, placement, procurement, renewal, binding, cancellation of, or failure to procure any policy of insurance shall subject the insurance producer, registered firm, or limited insurance representative to civil liability under standards governing the conduct of a fiduciary or a fiduciary relationship except when the conduct upon which the cause of action is based involves the wrongful retention or misappropriation by the insurance producer, registered firm, or limited insurance representative of any money that was received as premiums, as a premium deposit, or as payment of a claim.
(c) The provisions of this Section are not meant to impair or invalidate any of the terms or conditions of a contractual agreement between an insurance producer, registered firm, or limited insurance representative and a company that has authority to transact the kinds of insurance defined in Class 1 or clause (a), (b), (c), (d), (e), (f), (h), (i), or (k) of Class 2 of Section 4 of the Illinois Insurance Code.
(d) While limiting the scope of liability of an insurance producer, registered firm, or limited insurance representative under standards governing the conduct of a fiduciary or a fiduciary relationship, the provisions of this Section do not limit or release an insurance producer, registered firm, or limited insurance representative from liability for negligence concerning the sale, placement, procurement, renewal, binding, cancellation of, or failure to procure any policy of insurance.
Plain-English Summary
Subsection (a) sets the baseline: an insurance producer, registered firm, and limited insurance representative must exercise ordinary care and skill in renewing, procuring, binding, or placing the coverage an insured or proposed insured requested. It's a standard of reasonable competence, not a guarantee of a particular outcome.
Subsection (b) then limits how a plaintiff can frame a claim over the sale, placement, procurement, renewal, binding, or cancellation of a policy, or a failure to procure one: no such claim can subject the producer, firm, or representative to civil liability under the standards governing a fiduciary or a fiduciary relationship. The one exception is conduct involving the wrongful retention or misappropriation of money received as premiums, a premium deposit, or a claim payment — that kind of conduct can still trigger fiduciary-standard liability.
Subsection (c) preserves separate contractual relationships: nothing in this section impairs or invalidates the terms of a contract between a producer, firm, or representative and an insurance company authorized to transact specific classes of insurance under the Illinois Insurance Code. Subsection (d) then closes the loop on subsection (b)'s shield — while it limits fiduciary-standard liability, it doesn't limit or release a producer, firm, or representative from ordinary negligence liability for the same sale, placement, procurement, renewal, binding, cancellation, or failure-to-procure conduct.
Frequently Asked Questions
What standard of care must an insurance producer meet when placing coverage?
Ordinary care and skill in renewing, procuring, binding, or placing the coverage the insured or proposed insured requested.
Can I sue my insurance agent under a fiduciary-duty theory for failing to procure coverage?
Generally no. Subsection (b) keeps claims over the sale, placement, procurement, renewal, binding, cancellation, or failure to procure a policy out of the fiduciary-conduct standard, unless the conduct involves wrongfully retaining or misappropriating premium or claim money.
When does the fiduciary-liability shield in this section not apply?
When the claim is based on the insurance producer, firm, or representative wrongfully retaining or misappropriating money received as premiums, a premium deposit, or a claim payment.
Does this section eliminate negligence claims against insurance producers?
No. Subsection (d) expressly preserves liability for negligence in the sale, placement, procurement, renewal, binding, cancellation, or failure to procure a policy, even while subsection (b) limits fiduciary-standard liability for the same conduct.
Does this section affect contracts between insurance producers and insurance companies?
No. Subsection (c) says the section isn't meant to impair or invalidate the terms of a contractual agreement between a producer, firm, or representative and a company authorized to transact the specified classes of insurance under the Illinois Insurance Code.
Amendment History
(Source: P.A. 89-638, eff. 1-1-97.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: insurance producer negligence illinoisinsurance agent fiduciary duty illinoisfailure to procure insurance illinois lawsuitinsurance placement liability illinois