-Could you explain your situation a little more?How is he "using" a company he owns?
Is this a corporation or a proprietorship?
Is he represented by an attorney?
Please explain the circumstances.
Dear JACUSTOMER - This can be reported to the state insurance commission as a violation of the license laws and a counterclaim can be filed for malicious prosecution of the lawsuit and a demand can be made for attorney fees. Whether you can say it is extortion is probably a reach since that would be up to a prosecuting attorney to decide if there is enough for criminal prosecution. Obviously you can file a criminal complaint but it is not your decision to make as to whether the case would be prosecuted. If the agreement was with one corporation and that corporation was not licensed then I see no way that a commission would be owed to an unlicensed agent so you definitely should not have any civil liability. If the person is trying to represent the corporation on a pro se basis and is not an attorney you can also file a motion to have the case dismissed on the basis of the unathorized practice of law by the individual since no non attorney can represent the interests of the corporation.
Here is the website for the IL Dept. of Ins.
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