Full Text of HB1129 97th General Assembly
HB1129ham001 97TH GENERAL ASSEMBLY | Rep. JoAnn D. Osmond Filed: 2/17/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1129
| 2 | | AMENDMENT NO. ______. Amend House Bill 1129 on page 1, | 3 | | immediately below line 3, by inserting the following:
| 4 | | "Section 3. The Illinois Insurance Code is amended by | 5 | | changing Sections 136 and 408 as follows:
| 6 | | (215 ILCS 5/136) (from Ch. 73, par. 748)
| 7 | | Sec. 136. Annual statement.
| 8 | | (1) Every company authorized to do business in this State | 9 | | or accredited by
this State shall submit to file with the | 10 | | Director by March 1st in each year 2 copies of
its financial | 11 | | statement for the year ending December 31st immediately | 12 | | preceding in such manner and in such form as
on forms | 13 | | prescribed by the Director, which shall conform substantially | 14 | | to the
form of statement adopted by the National Association of | 15 | | Insurance
Commissioners. Unless the Director provides | 16 | | otherwise, the annual statement is
to be prepared in accordance |
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| 1 | | with the annual statement instructions and the
Accounting | 2 | | Practices and Procedures Manual adopted by the National | 3 | | Association
of Insurance Commissioners. The Director shall | 4 | | have power to make such
modifications and additions in this | 5 | | form as he may deem desirable
or necessary to ascertain the | 6 | | condition and affairs of the company. The
Director shall have | 7 | | authority to extend the time for filing any statement by
any | 8 | | company for reasons which he considers good and sufficient. In | 9 | | every
statement the admitted assets shall be shown at the | 10 | | actual values as of the
last day of the preceding year, in | 11 | | accordance with Section 126.7.
The statement
shall be verified | 12 | | by oaths of the president and secretary of the company or, in
| 13 | | their absence, by 2 other principal officers. In addition, any | 14 | | company may be
required by the Director, when he considers that | 15 | | action to be necessary and
appropriate for the protection of | 16 | | policyholders, creditors, shareholders, or
claimants, to file, | 17 | | within 60 days after mailing to the company a notice that
such | 18 | | is required, a supplemental summary statement as of the last | 19 | | day of any
calendar month occurring during the 100 days next | 20 | | preceding the mailing of such
notice designated by him on forms | 21 | | prescribed and furnished by the Director. The
Director may | 22 | | require supplemental summary statements to be certified by an
| 23 | | independent actuary deemed competent by the Director or by an | 24 | | independent
certified public accountant.
| 25 | | (2) The statement of an alien company shall embrace only | 26 | | its
condition and transactions in the United States and shall |
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| 1 | | be verified by
the oaths of its resident manager or principal | 2 | | representative in the
United States, except that in the case of | 3 | | any life company organized
under the laws of Canada or any | 4 | | province thereof, the statement may be
verified by the oaths of | 5 | | any of its principal officers designated for
that purpose by | 6 | | its board of directors.
| 7 | | (3) For the information of the public generally the | 8 | | Director shall
cause an abstract of the information contained | 9 | | in the annual statement
to be made available to the public as | 10 | | soon as practicable after filing
with the Department, by | 11 | | printing those abstracts in pamphlet tabular form
for free | 12 | | general distribution by the Department, or by such other
| 13 | | publication in the city of Springfield or in the city of | 14 | | Chicago as may
be reasonably necessary more fully to inform the | 15 | | public of the financial
condition of companies transacting | 16 | | business in this State.
| 17 | | (4) Each domestic, foreign, and alien insurer authorized to
| 18 | | do business in this State or accredited by this State shall | 19 | | participate
in the National Association of Insurance | 20 | | Commissioners' Insurance Regulatory
Information System, | 21 | | including the payment of all fees and charges of the
system. | 22 | | Each company shall, on or before March 1 of each year, file | 23 | | with the
National Association of Insurance Commissioners a copy | 24 | | of its annual financial
statement along with any additional | 25 | | filings prescribed by the Director for the
preceding year. The | 26 | | statement filed with the National Association of Insurance
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| 1 | | Commissioners shall be in the same format and scope as that | 2 | | required by this
Code and shall include a signed jurat page and | 3 | | actuarial certification. Any
amendments and addendums to the | 4 | | annual statement shall also be filed with the
National | 5 | | Association of Insurance Commissioners. Each company shall | 6 | | also file
with the National Association of Insurance | 7 | | Commissioners annual and quarterly
financial statement | 8 | | information in computer readable format as required by the
| 9 | | Insurance Regulatory Information System.
Failure of a company | 10 | | to file financial statement information in computer
readable | 11 | | format shall subject the company to the provisions of Section | 12 | | 139.
| 13 | | (5) All financial analysis ratios and examination synopsis | 14 | | concerning
insurance companies that are submitted to the | 15 | | Director by the National
Association of Insurance | 16 | | Commissioners' Insurance Regulatory Information
System are | 17 | | confidential and may not be disclosed by the Director.
| 18 | | (6) Every property and casualty insurance company doing | 19 | | business in this State, unless otherwise exempted by the | 20 | | Director, shall annually submit the opinion of an appointed | 21 | | actuary entitled "Statement of Actuarial Opinion". This | 22 | | opinion shall be filed in accordance with the appropriate | 23 | | National Association of Insurance Commissioners Property and | 24 | | Casualty Annual Statement Instructions. | 25 | | (a) Every property and casualty insurance company | 26 | | domiciled in this State that is required to submit a |
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| 1 | | Statement of Actuarial Opinion shall annually submit an | 2 | | Actuarial Opinion Summary, written by the company's | 3 | | appointed actuary. This Actuarial Opinion Summary shall be | 4 | | filed in accordance with the appropriate National | 5 | | Association of Insurance Commissioners Property and | 6 | | Casualty Annual Statement Instructions and shall be | 7 | | considered as a document supporting the Actuarial Opinion | 8 | | required in this subsection (6). Each foreign and alien | 9 | | property and casualty company authorized to do business in | 10 | | this State shall provide the Actuarial Opinion Summary upon | 11 | | request. | 12 | | (b) An Actuarial Report and underlying workpapers as | 13 | | required by the appropriate National Association of | 14 | | Insurance Commissioners Property and Casualty Annual | 15 | | Statement Instructions shall be prepared to support each | 16 | | Actuarial Opinion. If the insurance company fails to | 17 | | provide a supporting Actuarial Report or workpapers at the | 18 | | request of the Director or the Director determines that the | 19 | | supporting Actuarial Report or workpapers provided by the | 20 | | insurance company is otherwise unacceptable to the | 21 | | Director, the Director may engage a qualified actuary at | 22 | | the expense of the company to review the opinion and the | 23 | | basis for the opinion and prepare the supporting Actuarial | 24 | | Report or workpapers. | 25 | | (c) The appointed actuary shall not be liable for | 26 | | damages to any person (other than the insurance company and |
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| 1 | | the Director) for any act, error, omission, decision, or | 2 | | conduct with respect to the actuary's opinion, except in | 3 | | cases of fraud or willful misconduct on the part of the | 4 | | appointed actuary. | 5 | | (d) The Statement of Actuarial Opinion shall be | 6 | | provided with the Annual Statement in accordance with the | 7 | | appropriate National Association of Insurance | 8 | | Commissioners Property and Casualty Annual Statement | 9 | | Instructions and shall be treated as a public document. | 10 | | Documents, materials, or other information in the | 11 | | possession or control of the Director that are considered | 12 | | an Actuarial Report, workpapers, or Actuarial Opinion | 13 | | Summary provided in support of the opinion, and any other | 14 | | material provided by the company to the Director in | 15 | | connection with the Actuarial Report, workpapers or | 16 | | Actuarial Opinion Summary, must be given confidential | 17 | | treatment, are not subject to subpoena, and may not be made | 18 | | public by the Director or any other persons. This paragraph | 19 | | (d) shall not be construed to limit the Director's | 20 | | authority to release the documents to the Actuarial Board | 21 | | for Counseling and Discipline (ABCD), so long as the | 22 | | material is required for the purpose of professional | 23 | | disciplinary proceedings and that the ABCD establishes | 24 | | procedures satisfactory to the Director for preserving the | 25 | | confidentiality of the documents, nor shall this paragraph | 26 | | (d) be construed to limit the Director's authority to use |
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| 1 | | the documents, materials or other information in | 2 | | furtherance of any regulatory or legal action brought as | 3 | | part of the Director's official duties. Neither the | 4 | | Director nor any person who received documents, materials, | 5 | | or other information while acting under the authority of | 6 | | the Director shall be permitted or required to testify in | 7 | | any private civil action concerning any confidential | 8 | | documents, materials, or information subject to this | 9 | | subsection (6). Except where another provision of this Code | 10 | | expressly prohibits a disclosure of confidential | 11 | | information to the specific officials or organizations | 12 | | described in this subsection, the Director may: | 13 | | (i) share documents, materials, or other | 14 | | information, including the confidential and privileged | 15 | | documents, materials or information subject to this | 16 | | paragraph (d) with the insurance department of any | 17 | | other state or country or with law enforcement | 18 | | officials of this or any other state or agency of the | 19 | | federal government at any time, as long as the agency | 20 | | or office receiving the document, material, or other | 21 | | information agrees in writing to hold it confidential | 22 | | and in a manner consistent with this Code; | 23 | | (ii) receive documents, materials, or information, | 24 | | including otherwise confidential and privileged | 25 | | documents, materials, or information, from the | 26 | | National Association of Insurance Commissioners and |
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| 1 | | its affiliates and subsidiaries, and from regulatory | 2 | | and law enforcement officials of other foreign or | 3 | | domestic jurisdictions, and shall maintain as | 4 | | confidential or privileged any document, material, or | 5 | | information received with notice or the understanding | 6 | | that it is confidential or privileged under the laws of | 7 | | the jurisdiction that is the source of the document, | 8 | | material, or information; and | 9 | | (iii) enter into agreements governing sharing and | 10 | | use of information consistent with paragraph (d). | 11 | | (e) No waiver of any applicable privilege or claim of | 12 | | confidentiality in the documents, materials or information | 13 | | shall occur as a result of disclosure to the Director under | 14 | | this Section or as a result of sharing as authorized in | 15 | | subparagraphs (i), (ii), and (iii) of paragraph (d) of | 16 | | subsection (6) of this Section.
All 2008 Annual Statements, | 17 | | which are filed in 2009, and all subsequent Annual | 18 | | Statement filings shall be done in accordance with | 19 | | subsection (6) of this Section. | 20 | | (Source: P.A. 96-145, eff. 8-7-09.)
| 21 | | (215 ILCS 5/408) (from Ch. 73, par. 1020)
| 22 | | Sec. 408. Fees and charges.
| 23 | | (1) The Director shall charge, collect and
give proper | 24 | | acquittances for the payment of the following fees and charges:
| 25 | | (a) For filing all documents submitted for the |
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| 1 | | incorporation or
organization or certification of a | 2 | | domestic company, except for a fraternal
benefit society, | 3 | | $2,000.
| 4 | | (b) For filing all documents submitted for the | 5 | | incorporation or
organization of a fraternal benefit | 6 | | society, $500.
| 7 | | (c) For filing amendments to articles of incorporation | 8 | | and amendments to
declaration of organization, except for a | 9 | | fraternal benefit society, a
mutual benefit association, a | 10 | | burial society or a farm mutual, $200.
| 11 | | (d) For filing amendments to articles of incorporation | 12 | | of a fraternal
benefit society, a mutual benefit | 13 | | association or a burial society, $100.
| 14 | | (e) For filing amendments to articles of incorporation | 15 | | of a farm mutual,
$50.
| 16 | | (f) For filing bylaws or amendments thereto, $50.
| 17 | | (g) For filing agreement of merger or consolidation:
| 18 | | (i) for a domestic company, except
for a fraternal | 19 | | benefit society, a
mutual benefit association, a | 20 | | burial society,
or a farm mutual, $2,000.
| 21 | | (ii) for a foreign or
alien company, except for a | 22 | | fraternal
benefit society, $600.
| 23 | | (iii) for a fraternal benefit society,
a mutual | 24 | | benefit association, a burial society,
or a farm | 25 | | mutual, $200.
| 26 | | (h) For filing agreements of reinsurance by a domestic |
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| 1 | | company, $200.
| 2 | | (i) For filing all documents submitted by a foreign or | 3 | | alien
company to be admitted to transact business or | 4 | | accredited as a
reinsurer in this State, except for a
| 5 | | fraternal benefit society, $5,000.
| 6 | | (j) For filing all documents submitted by a foreign or | 7 | | alien
fraternal benefit society to be admitted to transact | 8 | | business
in this State, $500.
| 9 | | (k) For filing declaration of withdrawal of a foreign | 10 | | or
alien company, $50.
| 11 | | (l) For filing annual statement by a domestic company , | 12 | | except a fraternal benefit
society, a mutual benefit | 13 | | association, a burial society, or
a farm mutual, $200.
| 14 | | (m) For filing annual statement by a domestic fraternal | 15 | | benefit
society, $100.
| 16 | | (n) For filing annual statement by a farm mutual, a | 17 | | mutual benefit
association, or a burial society, $50.
| 18 | | (o) For issuing a certificate of authority or
renewal | 19 | | thereof except to a foreign fraternal benefit society, $400 | 20 | | $200 .
| 21 | | (p) For issuing a certificate of authority or renewal | 22 | | thereof to a foreign
fraternal benefit society, $200 $100 .
| 23 | | (q) For issuing an amended certificate of authority, | 24 | | $50.
| 25 | | (r) For each certified copy of certificate of | 26 | | authority, $20.
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| 1 | | (s) For each certificate of deposit, or valuation, or | 2 | | compliance
or surety certificate, $20.
| 3 | | (t) For copies of papers or records per page, $1.
| 4 | | (u) For each certification to copies
of papers or | 5 | | records, $10.
| 6 | | (v) For multiple copies of documents or certificates | 7 | | listed in
subparagraphs (r), (s), and (u) of paragraph (1) | 8 | | of this Section, $10 for
the first copy of a certificate of | 9 | | any type and $5 for each additional copy
of the same | 10 | | certificate requested at the same time, unless, pursuant to
| 11 | | paragraph (2) of this Section, the Director finds these | 12 | | additional fees
excessive.
| 13 | | (w) For issuing a permit to sell shares or increase | 14 | | paid-up
capital:
| 15 | | (i) in connection with a public stock offering, | 16 | | $300;
| 17 | | (ii) in any other case, $100.
| 18 | | (x) For issuing any other certificate required or | 19 | | permissible
under the law, $50.
| 20 | | (y) For filing a plan of exchange of the stock of a | 21 | | domestic
stock insurance company, a plan of | 22 | | demutualization of a domestic
mutual company, or a plan of | 23 | | reorganization under Article XII, $2,000.
| 24 | | (z) For filing a statement of acquisition of a
domestic | 25 | | company as defined in Section 131.4 of this Code, $2,000.
| 26 | | (aa) For filing an agreement to purchase the business |
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| 1 | | of an
organization authorized under the Dental Service Plan | 2 | | Act
or the Voluntary Health Services Plans Act or
of a | 3 | | health maintenance
organization or a limited health | 4 | | service organization, $2,000.
| 5 | | (bb) For filing a statement of acquisition of a foreign | 6 | | or alien
insurance company as defined in Section 131.12a of | 7 | | this Code, $1,000.
| 8 | | (cc) For filing a registration statement as required in | 9 | | Sections 131.13
and 131.14, the notification as required by | 10 | | Sections 131.16,
131.20a, or 141.4, or an
agreement or | 11 | | transaction required by Sections 124.2(2), 141, 141a, or
| 12 | | 141.1, $200.
| 13 | | (dd) For filing an application for licensing of:
| 14 | | (i) a religious or charitable risk pooling trust or | 15 | | a workers'
compensation pool, $1,000;
| 16 | | (ii) a workers' compensation service company, | 17 | | $500;
| 18 | | (iii) a self-insured automobile fleet, $200; or
| 19 | | (iv) a renewal of or amendment of any license | 20 | | issued pursuant to (i),
(ii), or (iii) above, $100.
| 21 | | (ee) For filing articles of incorporation for a | 22 | | syndicate to engage in
the business of insurance through | 23 | | the Illinois Insurance Exchange, $2,000.
| 24 | | (ff) For filing amended articles of incorporation for a | 25 | | syndicate engaged
in the business of insurance through the | 26 | | Illinois Insurance Exchange, $100.
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| 1 | | (gg) For filing articles of incorporation for a limited | 2 | | syndicate to
join with other subscribers or limited | 3 | | syndicates to do business through
the Illinois Insurance | 4 | | Exchange, $1,000.
| 5 | | (hh) For filing amended articles of incorporation for a | 6 | | limited
syndicate to do business through the Illinois | 7 | | Insurance Exchange, $100.
| 8 | | (ii) For a permit to solicit subscriptions to a | 9 | | syndicate
or limited syndicate, $100.
| 10 | | (jj) For the filing of each form as required in Section | 11 | | 143 of this
Code, $50 per form. The fee for advisory and | 12 | | rating
organizations shall be $200 per form.
| 13 | | (i) For the purposes of the form filing fee, | 14 | | filings made on insert page
basis will be considered | 15 | | one form at the time of its original submission.
| 16 | | Changes made to a form subsequent to its approval shall | 17 | | be considered a
new filing.
| 18 | | (ii) Only one fee shall be charged for a form, | 19 | | regardless of the number
of other forms or policies | 20 | | with which it will be used.
| 21 | | (iii) (Blank).
| 22 | | (iv) The Director may by rule exempt forms from | 23 | | such fees.
| 24 | | (kk) For filing an application for licensing of a | 25 | | reinsurance
intermediary, $500.
| 26 | | (ll) For filing an application for renewal of a license |
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| 1 | | of a reinsurance
intermediary, $200.
| 2 | | (2) When printed copies or numerous copies of the same | 3 | | paper or records
are furnished or certified, the Director may | 4 | | reduce such fees for copies
if he finds them excessive. He may, | 5 | | when he considers it in the public
interest, furnish without | 6 | | charge to state insurance departments and persons
other than | 7 | | companies, copies or certified copies of reports of | 8 | | examinations
and of other papers and records.
| 9 | | (3) The expenses incurred in any performance
examination | 10 | | authorized by law shall be paid by the company or person being
| 11 | | examined. The charge shall be reasonably related to the cost of | 12 | | the
examination including but not limited to compensation of | 13 | | examiners,
electronic data processing costs, supervision and | 14 | | preparation of an
examination report and lodging and travel | 15 | | expenses.
All lodging and travel expenses shall be in accord
| 16 | | with the applicable travel regulations as published by the | 17 | | Department of
Central Management Services and approved by the | 18 | | Governor's Travel Control
Board, except that out-of-state | 19 | | lodging and travel expenses related to
examinations authorized | 20 | | under Section 132 shall be in accordance with
travel rates | 21 | | prescribed under paragraph 301-7.2 of the Federal Travel
| 22 | | Regulations, 41 C.F.R. 301-7.2, for reimbursement of | 23 | | subsistence expenses
incurred during official travel. All | 24 | | lodging and travel expenses may be reimbursed directly upon | 25 | | authorization of the
Director. With the exception of the
direct | 26 | | reimbursements authorized by the
Director, all performance |
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| 1 | | examination charges collected by the
Department shall be paid
| 2 | | to the Insurance Producers Administration Fund,
however, the | 3 | | electronic data processing costs
incurred by the Department in | 4 | | the performance of any examination shall be
billed directly to | 5 | | the company being examined for payment to the
Statistical | 6 | | Services Revolving Fund.
| 7 | | (4) At the time of any service of process on the Director
| 8 | | as attorney for such service, the Director shall charge and | 9 | | collect the
sum of $20, which may be recovered as taxable costs | 10 | | by
the party to the suit or action causing such service to be | 11 | | made if he prevails
in such suit or action.
| 12 | | (5) (a) The costs incurred by the Department of Insurance
| 13 | | in conducting any hearing authorized by law shall be assessed | 14 | | against the
parties to the hearing in such proportion as the | 15 | | Director of Insurance may
determine upon consideration of all | 16 | | relevant circumstances including: (1)
the nature of the | 17 | | hearing; (2) whether the hearing was instigated by, or
for the | 18 | | benefit of a particular party or parties; (3) whether there is | 19 | | a
successful party on the merits of the proceeding; and (4) the | 20 | | relative levels
of participation by the parties.
| 21 | | (b) For purposes of this subsection (5) costs incurred | 22 | | shall
mean the hearing officer fees, court reporter fees, and | 23 | | travel expenses
of Department of Insurance officers and | 24 | | employees; provided however, that
costs incurred shall not | 25 | | include hearing officer fees or court reporter
fees unless the | 26 | | Department has retained the services of independent
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| 1 | | contractors or outside experts to perform such functions.
| 2 | | (c) The Director shall make the assessment of costs | 3 | | incurred as part of
the final order or decision arising out of | 4 | | the proceeding; provided, however,
that such order or decision | 5 | | shall include findings and conclusions in support
of the | 6 | | assessment of costs. This subsection (5) shall not be construed | 7 | | as
permitting the payment of travel expenses unless calculated | 8 | | in accordance
with the applicable travel regulations of the | 9 | | Department
of Central Management Services, as approved by the | 10 | | Governor's Travel Control
Board. The Director as part of such | 11 | | order or decision shall require all
assessments for hearing | 12 | | officer fees and court reporter fees, if any, to
be paid | 13 | | directly to the hearing officer or court reporter by the | 14 | | party(s)
assessed for such costs. The assessments for travel | 15 | | expenses of Department
officers and employees shall be | 16 | | reimbursable to the
Director of Insurance for
deposit to the | 17 | | fund out of which those expenses had been paid.
| 18 | | (d) The provisions of this subsection (5) shall apply in | 19 | | the case of any
hearing conducted by the Director of Insurance | 20 | | not otherwise specifically
provided for by law.
| 21 | | (6) The Director shall charge and collect an annual | 22 | | financial
regulation fee from every domestic company for | 23 | | examination and analysis of
its financial condition and to fund | 24 | | the internal costs and expenses of the
Interstate Insurance | 25 | | Receivership Commission as may be allocated to the State
of | 26 | | Illinois and companies doing an insurance business in this |
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| 1 | | State pursuant to
Article X of the Interstate Insurance | 2 | | Receivership Compact. The fee shall be
the greater fixed amount | 3 | | based upon
the combination of nationwide direct premium income | 4 | | and
nationwide reinsurance
assumed premium
income or upon | 5 | | admitted assets calculated under this subsection as follows:
| 6 | | (a) Combination of nationwide direct premium income | 7 | | and
nationwide reinsurance assumed premium.
| 8 | | (i) $150, if the premium is less than $500,000 and | 9 | | there is
no
reinsurance assumed premium;
| 10 | | (ii) $750, if the premium is $500,000 or more, but | 11 | | less
than $5,000,000
and there is no reinsurance | 12 | | assumed premium; or if the premium is less than
| 13 | | $5,000,000 and the reinsurance assumed premium is less | 14 | | than $10,000,000;
| 15 | | (iii) $3,750, if the premium is less than | 16 | | $5,000,000 and
the reinsurance
assumed premium is | 17 | | $10,000,000 or more;
| 18 | | (iv) $7,500, if the premium is $5,000,000 or more, | 19 | | but
less than
$10,000,000;
| 20 | | (v) $18,000, if the premium is $10,000,000 or more, | 21 | | but
less than $25,000,000;
| 22 | | (vi) $22,500, if the premium is $25,000,000 or | 23 | | more, but
less
than $50,000,000;
| 24 | | (vii) $30,000, if the premium is $50,000,000 or | 25 | | more,
but less than $100,000,000;
| 26 | | (viii) $37,500, if the premium is $100,000,000 or |
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| 1 | | more.
| 2 | | (b) Admitted assets.
| 3 | | (i) $150, if admitted assets are less than | 4 | | $1,000,000;
| 5 | | (ii) $750, if admitted assets are $1,000,000 or | 6 | | more, but
less than
$5,000,000;
| 7 | | (iii) $3,750, if admitted assets are $5,000,000 or | 8 | | more,
but less than
$25,000,000;
| 9 | | (iv) $7,500, if admitted assets are $25,000,000 or | 10 | | more,
but less than
$50,000,000;
| 11 | | (v) $18,000, if admitted assets are $50,000,000 or | 12 | | more,
but less than
$100,000,000;
| 13 | | (vi) $22,500, if admitted assets are $100,000,000 | 14 | | or
more, but less
than $500,000,000;
| 15 | | (vii) $30,000, if admitted assets are $500,000,000 | 16 | | or
more, but less
than $1,000,000,000;
| 17 | | (viii) $37,500, if admitted assets are | 18 | | $1,000,000,000
or more.
| 19 | | (c) The sum of financial regulation fees charged to the | 20 | | domestic
companies of the same affiliated group shall not | 21 | | exceed $250,000
in the aggregate in any single year and | 22 | | shall be billed by the Director to
the member company | 23 | | designated by the
group.
| 24 | | (7) The Director shall charge and collect an annual | 25 | | financial regulation
fee from every foreign or alien company, | 26 | | except fraternal benefit
societies, for the
examination and |
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| 1 | | analysis of its financial condition and to fund the internal
| 2 | | costs and expenses of the Interstate Insurance Receivership | 3 | | Commission as may
be allocated to the State of Illinois and | 4 | | companies doing an insurance business
in this State pursuant to | 5 | | Article X of the Interstate Insurance Receivership
Compact.
The | 6 | | fee shall be a fixed amount based upon Illinois direct premium | 7 | | income
and nationwide reinsurance assumed premium income in | 8 | | accordance with the
following schedule:
| 9 | | (a) $150, if the premium is less than $500,000 and | 10 | | there is
no
reinsurance assumed premium;
| 11 | | (b) $750, if the premium is $500,000 or more, but less | 12 | | than
$5,000,000
and there is no reinsurance assumed | 13 | | premium;
or if the premium is less than $5,000,000 and the | 14 | | reinsurance assumed
premium is less than $10,000,000;
| 15 | | (c) $3,750, if the premium is less than $5,000,000 and | 16 | | the
reinsurance
assumed premium is $10,000,000 or more;
| 17 | | (d) $7,500, if the premium is $5,000,000 or more, but | 18 | | less
than
$10,000,000;
| 19 | | (e) $18,000, if the premium is $10,000,000 or more, but
| 20 | | less than
$25,000,000;
| 21 | | (f) $22,500, if the premium is $25,000,000 or more, but
| 22 | | less than
$50,000,000;
| 23 | | (g) $30,000, if the premium is $50,000,000 or more, but
| 24 | | less than
$100,000,000;
| 25 | | (h) $37,500, if the premium is $100,000,000 or more.
| 26 | | The sum of financial regulation fees under this subsection |
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| 1 | | (7)
charged to the foreign or alien companies within the same | 2 | | affiliated group
shall not exceed $250,000 in the aggregate in | 3 | | any single year
and shall be
billed by the Director to the | 4 | | member company designated by the group.
| 5 | | (8) Beginning January 1, 1992, the financial regulation | 6 | | fees imposed
under subsections (6) and (7)
of this Section | 7 | | shall be paid by each company or domestic affiliated group
| 8 | | annually. After January
1, 1994, the fee shall be billed by | 9 | | Department invoice
based upon the company's
premium income or | 10 | | admitted assets as shown in its annual statement for the
| 11 | | preceding calendar year. The invoice is due upon
receipt and | 12 | | must be paid no later than June 30 of each calendar year. All
| 13 | | financial
regulation fees collected by the Department shall be | 14 | | paid to the Insurance
Financial Regulation Fund. The Department | 15 | | may not collect financial
examiner per diem charges from | 16 | | companies subject to subsections (6) and (7)
of this Section | 17 | | undergoing financial examination
after June 30, 1992.
| 18 | | (9) In addition to the financial regulation fee required by | 19 | | this
Section, a company undergoing any financial examination | 20 | | authorized by law
shall pay the following costs and expenses | 21 | | incurred by the Department:
electronic data processing costs, | 22 | | the expenses authorized under Section 131.21
and
subsection (d) | 23 | | of Section 132.4 of this Code, and lodging and travel expenses.
| 24 | | Electronic data processing costs incurred by the | 25 | | Department in the
performance of any examination shall be | 26 | | billed directly to the company
undergoing examination for |
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| 1 | | payment to the Statistical Services Revolving
Fund. Except for | 2 | | direct reimbursements authorized by the Director or
direct | 3 | | payments made under Section 131.21 or subsection (d) of Section
| 4 | | 132.4 of this Code, all financial regulation fees and all | 5 | | financial
examination charges collected by the Department | 6 | | shall be paid to the
Insurance Financial Regulation Fund.
| 7 | | All lodging and travel expenses shall be in accordance with | 8 | | applicable
travel regulations published by the Department of | 9 | | Central Management
Services and approved by the Governor's | 10 | | Travel Control Board, except that
out-of-state lodging and | 11 | | travel expenses related to examinations authorized
under | 12 | | Sections 132.1 through 132.7 shall be in accordance
with travel | 13 | | rates prescribed
under paragraph 301-7.2 of the Federal Travel | 14 | | Regulations, 41 C.F.R. 301-7.2,
for reimbursement of | 15 | | subsistence expenses incurred during official travel.
All | 16 | | lodging and travel expenses may be
reimbursed directly upon the | 17 | | authorization of the Director.
| 18 | | In the case of an organization or person not subject to the | 19 | | financial
regulation fee, the expenses incurred in any | 20 | | financial examination authorized
by law shall be paid by the | 21 | | organization or person being examined. The charge
shall be | 22 | | reasonably related to the cost of the examination including, | 23 | | but not
limited to, compensation of examiners and other costs | 24 | | described in this
subsection.
| 25 | | (10) Any company, person, or entity failing to make any | 26 | | payment of $150
or more as required under this Section shall be |
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| 1 | | subject to the penalty and
interest provisions provided for in | 2 | | subsections (4) and (7)
of Section 412.
| 3 | | (11) Unless otherwise specified, all of the fees collected | 4 | | under this
Section shall be paid into the Insurance Financial | 5 | | Regulation Fund.
| 6 | | (12) For purposes of this Section:
| 7 | | (a) "Domestic company" means a company as defined in | 8 | | Section 2 of this
Code which is incorporated or organized | 9 | | under the laws of this State, and in
addition includes a | 10 | | not-for-profit corporation authorized under the Dental
| 11 | | Service Plan Act or the Voluntary Health
Services Plans | 12 | | Act, a health maintenance organization, and a
limited
| 13 | | health service organization.
| 14 | | (b) "Foreign company" means a company as defined in | 15 | | Section 2 of this
Code which is incorporated or organized | 16 | | under the laws of any state of the
United States other than | 17 | | this State and in addition includes a health
maintenance | 18 | | organization and a limited health service organization | 19 | | which is
incorporated or organized under the laws
of any | 20 | | state of the United States other than this State.
| 21 | | (c) "Alien company" means a company as defined in | 22 | | Section 2 of this Code
which is incorporated or organized | 23 | | under the laws of any country other than
the United States.
| 24 | | (d) "Fraternal benefit society" means a corporation, | 25 | | society, order,
lodge or voluntary association as defined | 26 | | in Section 282.1 of this
Code.
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| 1 | | (e) "Mutual benefit association" means a company, | 2 | | association or
corporation authorized by the Director to do | 3 | | business in this State under
the provisions of Article | 4 | | XVIII of this Code.
| 5 | | (f) "Burial society" means a person, firm, | 6 | | corporation, society or
association of individuals | 7 | | authorized by the Director to do business in
this State | 8 | | under the provisions of Article XIX of this Code.
| 9 | | (g) "Farm mutual" means a district, county and township | 10 | | mutual insurance
company authorized by the Director to do | 11 | | business in this State under the
provisions of the Farm | 12 | | Mutual Insurance Company Act of 1986.
| 13 | | (Source: P.A. 93-32, eff. 7-1-03; 93-1083, eff. 2-7-05.)".
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