Public Act 103-0897
 
SB1479 EnrolledLRB103 05817 BMS 50837 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
    Section 5. The Illinois Insurance Code is amended by 
changing Sections 132, 132.5, 155.35, 402, 408, 511.109, 
512-3, 512-5, and 513b3 and by adding Section 512-11 as 
follows:
 
    (215 ILCS 5/132)  (from Ch. 73, par. 744)
    Sec. 132. Market conduct actions and market analysis and 
non-financial examinations. 
    (a) Definitions. As used in this Section:
    "Data call" means a written solicitation by the Director 
to 2 or more regulated companies or persons seeking existing 
data or other existing information to be provided within a 
reasonable time period for a narrow and targeted regulatory 
oversight purpose for market analysis. "Data call" does not 
include an information request in a market conduct action or 
any data or information that the Director shall or may 
specifically require under any other law, except as provided 
by the other law. 
    "Desk examination" means an examination that is conducted 
by market conduct surveillance personnel at a location other 
than the regulated company's or person's premises. "Desk 
examination" includes an examination performed at the 
Department's offices with the company or person providing 
requested documents by hard copy, microfiche, or discs or 
other electronic media for review without an on-site 
examination.
    "Market analysis" means a process whereby market conduct 
surveillance personnel collect and analyze information from 
filed schedules, surveys, required reports, data calls, and 
other sources to develop a baseline understanding of the 
marketplace and to identify patterns or practices of regulated 
persons that deviate significantly from the norm or that may 
pose a potential risk to insurance consumers.
    "Market conduct action" means any activity, other than 
market analysis, that the Director may initiate to assess and 
address the market and nonfinancial practices of regulated 
persons, including market conduct examinations. The 
Department's consumer complaint process outlined in 50 Ill. 
Adm. Code 926 is not a market conduct action for purposes of 
this Section; however, the Department may initiate market 
conduct actions based on information gathered during that 
process. "Market conduct action" includes:
        (1) correspondence with the company or person;
        (2) interviews with the company or person;
        (3) information gathering;
        (4) policy and procedure reviews;
        (5) interrogatories;
        (6) review of company or person self-evaluations and 
    voluntary compliance programs;
        (7) self-audits; and
        (8) market conduct examinations.
    "Market conduct examination" or "examination" means any 
type of examination, other than a financial examination, that 
assesses a regulated person's compliance with the laws, rules, 
and regulations applicable to the examinee. "Market conduct 
examination" includes comprehensive examinations, targeted 
examinations, and follow-up examinations, which may be 
conducted as desk examinations, on-site examinations, or a 
combination of those 2 methods.
    "Market conduct surveillance" means market analysis or a 
market conduct action.
    "Market conduct surveillance personnel" means those 
individuals employed or retained by the Department and 
designated by the Director to collect, analyze, review, or act 
on information in the insurance marketplace that identifies 
patterns or practices of persons subject to the Director's 
jurisdiction. "Market conduct surveillance personnel" includes 
all persons identified as an examiner in the insurance laws or 
rules of this State if the Director has designated them to 
assist her or him in ascertaining the nonfinancial business 
practices, performance, and operations of a company or person 
subject to the Director's jurisdiction.
    "On-site examination" means an examination conducted at 
the company's or person's home office or the location where 
the records under review are stored.
    "SOFR rate" means the Secured Overnight Financing Rate 
published by the Federal Reserve Bank of New York every 
business day.
    (b) Companies and persons subject to surveillance. The 
Director, for the purposes of ascertaining the nonfinancial 
business practices, performance, and operations of any person 
subject to the Director's jurisdiction or within the 
marketplace, may engage in market conduct actions or market 
analysis relating to:
        (1) any company transacting or being organized to 
    transact business in this State;
        (2) any person engaged in or proposing to be engaged 
    in the organization, promotion, or solicitation of shares 
    or capital contributions to or aiding in the formation of 
    a company;
        (3) any person having a written or oral contract 
    pertaining to the management or control of a company as 
    general agent, managing agent, or attorney-in-fact;
        (4) any licensed or registered producer, firm, 
    pharmacy benefit manager, administrator, or any person 
    making application for any license, certificate, or 
    registration;
        (5) any person engaged in the business of adjusting 
    losses or financing premiums; or
        (6) any person, organization, trust, or corporation 
    having custody or control of information reasonably 
    related to the operation, performance, or conduct of a 
    company or person subject to the Director's jurisdiction, 
    but only as to the operation, performance, or conduct of a 
    company or person subject to the Director's jurisdiction.
    (c) Market analysis and market conduct actions.
        (1) The Director may perform market analysis by 
    gathering and analyzing information from data currently 
    available to the Director, information from surveys, data 
    call responses, or reports that are submitted to the 
    Director, information collected by the NAIC, and 
    information from a variety of other sources to develop a 
    baseline understanding of the marketplace and to identify 
    for further review companies or practices that deviate 
    from the norm or that may pose a potential risk to 
    insurance consumers. The Director shall use the most 
    recent NAIC Market Regulation Handbook as a guide in 
    performing market analysis. The Director may also employ 
    other guidelines or procedures as the Director may deem 
    appropriate.
        (2) The Director may initiate a market conduct action 
    subject to the following:
            (A) If the Director determines that further 
        inquiry into a particular person or practice is 
        needed, then the Director may consider undertaking a 
        market conduct action. The Director shall inform the 
        examinee of the initiation of the market conduct 
        action and shall use the most recent NAIC Market 
        Regulation Handbook as a guide in performing the 
        market conduct action. The Director may also employ 
        other guidelines or procedures as the Director may 
        deem appropriate.
            (B) For an examination, the Director shall conduct 
        a pre-examination conference with the examinee to 
        clarify expectations before commencement of the 
        examination. At the pre-examination conference, the 
        Director or the market conduct surveillance personnel 
        shall disclose the basis of the examination, including 
        the statutes, regulations, or business practices at 
        issue. The Director shall provide at least 30 days' 
        advance notice of the date of the pre-examination 
        conference unless circumstances warrant that the 
        examination proceed more quickly.
            (C) The Director may coordinate a market conduct 
        action and findings of this State with market conduct 
        actions and findings of other states. 
        (3) Nothing in this Section requires the Director to 
    undertake market analysis before initiating any market 
    conduct action.
        (4) Nothing in this Section restricts the Director to 
    the type of market conduct action he or she initially 
    selected.
        (5) A regulated person is required to respond to a 
    market analysis data call or to an information request in 
    a market conduct action on the terms and conditions 
    established by the Director. The Department shall 
    establish reasonable timelines that are commensurate with 
    the volume and nature of the data required to be collected 
    in the information request.
        (6) Without limiting the contents of any examination 
    report, market conduct actions taken as a result of a 
    market analysis shall focus primarily on the general 
    business practices and compliance activities of companies 
    or persons rather than identifying infrequent or 
    unintentional random errors that do not cause significant 
    consumer harm. The Director may give a company or person 
    an opportunity to resolve matters that are identified as a 
    result of a market analysis to the Director's satisfaction 
    before undertaking a market conduct action against the 
    company or person. 
    (d) Access to books and records. Every examinee and its 
officers, directors, and agents must provide to the Director 
convenient and free access at all reasonable hours at its 
office or location to all books, records, and documents and 
any or all papers relating to the business, performance, 
operations, and affairs of the examinee. The officers, 
directors, and agents of the examinee must facilitate the 
market conduct action and aid in the action so far as it is in 
their power to do so. The Director and any authorized market 
conduct surveillance personnel have the power to administer 
oaths and examine under oath any person relevant to the 
business of the examinee. A failure to produce requested 
books, records, or documents by the deadline shall not be a 
violation until after the later of:
        (1) 5 business days after the initial response 
    deadline set by the Director or authorized personnel; or
        (2) an extended deadline granted by the Director or 
    authorized personnel.
    (e) Examination report. The market conduct surveillance 
personnel designated by the Director under Section 402 must 
make a full and true report of every examination made by them 
that contains only facts ascertained from the books, papers, 
records, documents, and other evidence obtained by 
investigation and examined by them or ascertained from the 
testimony of officers, agents, or other persons examined under 
oath concerning the business, affairs, conduct, and 
performance of the examinee. The report of examination must be 
verified by the oath of the examiner in charge thereof, and 
when so verified is prima facie evidence in any action or 
proceeding in the name of the State against the examinee, its 
officers, directors, or agents upon the facts stated therein.
    (f) Examinee response to examination report. The 
Department and the examinee shall comply with the following 
timeline, unless a mutual agreement is reached to modify the 
timeline:
        (1) The Department shall deliver a draft report to the 
    examinee as soon as reasonably practicable. Nothing in 
    this Section prevents the Department from sharing an 
    earlier draft of the report with the examinee before 
    confirming that the examination is completed.
        (2) If the examinee chooses to respond with written 
    submissions or rebuttals, then the examinee must do so 
    within 30 days after receipt of any draft report delivered 
    after the completion of the examination.
        (3) As soon as reasonably practicable after receipt of 
    any written submissions or rebuttals, the Department shall 
    issue a final report. Whenever the Department has made 
    substantive changes to a previously shared draft report, 
    unless those changes remove part or all of an alleged 
    violation or were proposed by the examinee, the Department 
    shall deliver the revised version to the examinee as a new 
    draft and shall allow the examinee 30 days to respond 
    before the Department issues a final report.
        (4) The examinee shall, within 10 days after the 
    issuance of the final report, accept the final report or 
    request a hearing in writing, unless granted an extension 
    by mutual agreement. Failure to take either action within 
    10 days or the mutually agreed extension shall be deemed 
    an acceptance of the final report. If the examinee accepts 
    the examination report, the Director shall continue to 
    hold the content of the examination report as private and 
    confidential for a period of 30 days. Thereafter, the 
    Director shall open the final report for public 
    inspection.
    (g) Hearing; final examination report. Notwithstanding 
anything to the contrary in this Code or Department rules, if 
the examinee requests a hearing, then the following procedures 
apply:
        (1) The examinee must request the hearing in writing 
    and must specify the issues in the final report that the 
    examinee is challenging. The examinee is limited to 
    challenging the issues that were previously challenged in 
    the examinee's written submission and rebuttal or 
    supplemental submission and rebuttal pursuant to 
    paragraphs (2) and (3) of subsection (f).
        (2) Except as permitted in paragraphs (3) and (8) of 
    this subsection, the hearing shall be limited to the 
    written arguments submitted by the parties to the 
    designated hearing officer. The designated hearing officer 
    may, however, grant a live hearing upon the request of 
    either party.
        (3) Discovery is limited to the market conduct 
    surveillance personnel's work papers that are relevant to 
    the issues the examinee is challenging. The relevant 
    market conduct surveillance personnel's work papers shall 
    be admitted into the record. No other forms of discovery, 
    including depositions and interrogatories, are allowed, 
    except upon written agreement of the examinee and the 
    Department when necessary to conduct a fair hearing or as 
    otherwise provided in this subsection.
        (4) Only the examinee and the Department may submit 
    written arguments.
        (5) The examinee must submit its written argument and 
    any supporting evidence within 30 days after the 
    Department serves a formal notice of hearing.
        (6) The Department must submit its written response 
    and any supporting evidence within 30 days after the 
    examinee submits its written argument.
        (7) The designated hearing officer may allow 
    additional written submissions if necessary or useful to 
    the fair resolution of the hearing.
        (8) If either the examinee or the Department submit 
    written testimony or affidavits, then the opposing party 
    shall be given the opportunity to cross-examine the 
    witness and to submit the cross-examination to the hearing 
    officer before a decision.
        (9) The Director shall issue a decision accompanied by 
    findings and conclusions. The Director's order is a final 
    administrative decision and shall be served upon the 
    examinee together with a copy of the final report within 
    90 days after the conclusion of the hearing. The hearing 
    is deemed concluded on the later of the last date of any 
    live hearing or the final deadline date for written 
    submissions to the hearing officer, including any 
    continuances or supplemental briefings permitted by the 
    hearing officer.
        (10) Any portion of the final examination report that 
    was not challenged by the examinee is incorporated into 
    the decision of the Director.
        (11) Findings of fact and conclusions of law in the 
    Director's final administrative decision are prima facie 
    evidence in any legal or regulatory action.
        (12) If an examinee has requested a hearing, then the 
    Director shall continue to hold the final report and any 
    related decision as private and confidential for a period 
    of 49 days after the final administrative decision. After 
    the 49-day period expires, the Director shall open the 
    final report and any related decision for public 
    inspection if a court of competent jurisdiction has not 
    stayed its publication.
    (h) Disclosure. So long as the recipient agrees to and 
verifies in writing its legal authority to hold the 
information confidential in a manner consistent with this 
Section, nothing in this Section prevents the Director from 
disclosing at any time the content of an examination report, 
preliminary examination report, or results, or any matter 
relating to a report or results, to:
        (1) the insurance regulatory authorities of any other 
    state; or
        (2) any agency or office of the federal government.
    (i) Confidentiality.
        (1) The Director and any other person in the course of 
    market conduct surveillance shall keep confidential all 
    documents, including working papers, third-party models, 
    or products; complaint logs; copies of any documents 
    created, produced, obtained by, or disclosed to the 
    Director, market conduct surveillance personnel, or any 
    other person in the course of market conduct surveillance 
    conducted pursuant to this Section; and all documents 
    obtained by the NAIC pursuant to this Section. The 
    documents shall remain confidential after the termination 
    of the market conduct surveillance, are not subject to 
    subpoena, are not subject to discovery or admissible as 
    evidence in private civil litigation, are not subject to 
    disclosure under the Freedom of Information Act, and must 
    not be made public at any time or used by the Director or 
    any other person, except as provided in paragraphs (3), 
    (4), and (6) of this subsection (i) and in subsection (k).
        (2) The Director and any other person in the course of 
    market conduct surveillance shall keep confidential any 
    self-evaluation or voluntary compliance program documents 
    disclosed to the Director or other person by an examinee 
    and the data collected via the NAIC market conduct annual 
    statement. The documents are not subject to subpoena, are 
    not subject to discovery or admissible as evidence in 
    private civil litigation, are not subject to disclosure 
    under the Freedom of Information Act, and they shall not 
    be made public or used by the Director or any other person, 
    except as provided in paragraphs (3) and (4) of this 
    subsection (i), in subsection (k), or in Section 155.35. 
    Nothing in this Section shall supersede the restrictions 
    on disclosure under Section 155.35.
        (3) Notwithstanding paragraphs (1) and (2) of this 
    subsection (i), and consistent with paragraph (5) of this 
    subsection (i), in order to assist in the performance of 
    the Director's duties, the Director may:
            (A) share documents, materials, communications, or 
        other information, including the confidential and 
        privileged documents, materials, or information 
        described in this subsection (i), with other State, 
        federal, alien, and international regulatory agencies 
        and law enforcement authorities and the NAIC, its 
        affiliates, and subsidiaries, if the recipient agrees 
        to and verifies in writing its legal authority to 
        maintain the confidentiality and privileged status of 
        the document, material, communication, or other 
        information;
            (B) receive documents, materials, communications, 
        or information, including otherwise confidential and 
        privileged documents, materials, or information, from 
        the NAIC and its affiliates or subsidiaries, and from 
        regulatory and law enforcement officials of other 
        State, federal, alien, or international jurisdictions, 
        authorities, and agencies, and shall maintain as 
        confidential or privileged any document, material, 
        communication, or information received with notice or 
        the understanding that it is confidential or 
        privileged under the laws of the jurisdiction that is 
        the source of the document, material, communication, 
        or information; and
            (C) enter into agreements governing the sharing 
        and use of information consistent with this Section.
        (4) Nothing in this Section limits:
            (A) the Director's authority to use, if consistent 
        with subsection (5) of Section 188.1, as applicable, 
        any final or preliminary examination report, any 
        market conduct surveillance or examinee work papers or 
        other documents, or any other information discovered 
        or developed during the course of any market conduct 
        surveillance in the furtherance of any legal or 
        regulatory action initiated by the Director that the 
        Director may, in the Director's sole discretion, deem 
        appropriate; however, confidential or privileged 
        information about a company or person that is used in 
        the legal or regulatory action shall not be made 
        public except by order of a court of competent 
        jurisdiction or with the written consent of the 
        company or person; or
            (B) the ability of an examinee to conduct 
        discovery in accordance with paragraph (3) of 
        subsection (g).
        (5) Disclosure to or by the Director of documents, 
    materials, communications, or information required as part 
    of any type of market conduct surveillance does not waive 
    any applicable privilege or claim of confidentiality in 
    the documents, materials, communications, or information.
        (6) Notwithstanding the confidentiality requirements 
    of this Section or otherwise imposed by State law, if the 
    Director performs a data call, other than the collection 
    of data for the NAIC market conduct annual statement, the 
    Director may make the results of the data call available 
    for public inspection in an aggregated format that does 
    not disclose information or data attributed to any 
    specific company or person, including the name of any 
    company or person who responded to the data call, so long 
    as the Director provides all companies or persons that 
    responded to the data call 15 days' notice identifying the 
    information to be publicly released. Nothing in this 
    Section requires the Director to publish results from any 
    data call.
    (j) Corrective actions.
        (1) As a result of any market conduct action, the 
    Director may take any action the Director considers 
    necessary or appropriate in accordance with the report of 
    examination or any hearing thereon for acts in violation 
    of any law, rule, or prior lawful order of the Director. No 
    corrective action, including a penalty, shall be ordered 
    with respect to violations in transactions with consumers 
    or other entities that are isolated occurrences or that 
    occur with such low frequency as to fall below a 
    reasonable margin of error. Such actions include, but are 
    not limited to:
            (A) requiring the regulated person to undertake 
        corrective actions to cease and desist an identified 
        violation or institute processes and practices to 
        comply with applicable standards;
            (B) requiring reimbursement or restitution of any 
        actual losses or damages to persons harmed by the 
        regulated person's violation with interest from the 
        date that the actual loss or damage was incurred, 
        which shall be calculated at the SOFR rate applicable 
        on the date that the actual loss or damage was incurred 
        plus 2%; and
            (C) imposing civil penalties as provided in this 
        subsection (j).
        (2) The Director may order a penalty of up to $2,000 
    for each violation of any law, rule, or prior lawful order 
    of the Director. Any failure to respond to an information 
    request in a market conduct action or violation of 
    subsection (d) may carry a fine of up to $1,000 per day up 
    to a maximum of $50,000. Fines and penalties shall be 
    consistent, reasonable, and justifiable, and the Director 
    may consider reasonable criteria in ordering the fines and 
    penalties, including, but not limited to, consumer harm, 
    the intentionality of any violations, or remedial actions 
    already undertaken by the examinee. The Director shall 
    communicate to the examinee the basis for any assessed 
    fine or penalty.
        (3) If any other provision of this Code or any other 
    law or rule under the Director's jurisdiction prescribes 
    an amount or range of monetary penalty for a violation of a 
    particular statute or rule or a maximum penalty in the 
    aggregate for repeated violations, the Director shall 
    assess penalties pursuant to the terms of the statute or 
    rule allowing the largest penalty.
        (4) If any other provision of this Code or any other 
    law or rule under the Director's jurisdiction prescribes 
    or specifies a method by which the Director is to 
    determine a violation, then compliance with the process 
    set forth herein shall be deemed to comply with the method 
    prescribed or specified in the other provision.
        (5) If the Director imposes any sanctions or 
    corrective actions described in subparagraphs (A) through 
    (C) of paragraph (1) of this subsection (j) based on the 
    final report, the Director shall include those actions in 
    a proposed stipulation and consent order enclosed with the 
    final report issued to the examinee under subsection (f). 
    The examinee shall have 10 days to sign the order or 
    request a hearing in writing on the actions proposed in 
    the order regardless of whether the examinee requests a 
    hearing on the contents of the report under subsection 
    (f). If the examinee does not sign the order or request a 
    hearing on the proposed actions or the final report within 
    10 days, the Director may issue a final order imposing the 
    sanctions or corrective actions. Nothing in this Section 
    prevents the Department from sharing an earlier draft of 
    the proposed order with the examinee before issuing the 
    final report.
        (6) If the examinee accepts the order and the final 
    report, the Director shall hold the content of the order 
    and report as private and confidential for a period of 30 
    days. Thereafter, the Director shall open the order and 
    report for public inspection.
        (7) If the examinee makes a timely request for a 
    hearing on the order, the request must specify the 
    sanctions or corrective actions in the order that the 
    examinee is challenging. Any hearing shall follow the 
    procedures set forth in paragraphs (2) through (7) of 
    subsection (g).
        (8) If the examinee has also requested a hearing on 
    the contents of the report, then that hearing shall be 
    consolidated with the hearing on the order. The Director 
    shall not impose sanctions or corrective actions under 
    this Section until the conclusion of the hearing.
        (9) The Director shall issue a decision accompanied by 
    findings and conclusions along with any corrective actions 
    or sanctions. Any sanctions or corrective actions shall be 
    based on the final report accepted by the examinee or 
    adopted by the Director under paragraph (9) of subsection 
    (g). The Director's order is a final administrative 
    decision and shall be served upon the examinee together 
    with a copy of the final report within 90 days after the 
    conclusion of the hearing or within 10 days after the 
    examinee's acceptance of the proposed order and final 
    report, as applicable. The hearing is deemed concluded on 
    the later of the last date of any live hearing or the final 
    deadline date for written submissions to the hearing 
    officer, including any continuances or supplemental 
    briefings permitted by the hearing officer.
        (10) If an examinee has requested a hearing under this 
    subsection (i), the Director shall continue to hold the 
    final order and examination report as private and 
    confidential for a period of 49 days after the final 
    administrative decision. After the 49-day period expires, 
    the Director shall open the final order and examination 
    report if a court of competent jurisdiction has not stayed 
    their publication.
    (k) National market conduct databases. The Director shall 
collect and report market data to the NAIC's market 
information systems, including, but not limited to, the 
Complaint Database System, the Examination Tracking System, 
and the Regulatory Information Retrieval System, or other 
successor NAIC products as determined by the Director. 
Information collected and maintained by the Department for 
inclusion in these NAIC market information systems shall be 
compiled in a manner that meets the requirements of the NAIC. 
Confidential or privileged information collected, reported, or 
maintained under this subsection (k) shall be subject to the 
protections and restrictions on disclosure in subsection (i).
    (l) Immunity of market conduct surveillance personnel.
        (1) No cause of action shall arise nor shall any 
    liability be imposed against the Director, the Director's 
    authorized representatives, market conduct surveillance 
    personnel, or an examiner appointed by the Director for 
    any statements made or conduct performed in good faith 
    while carrying out the provisions of this Section.
        (2) No cause of action shall arise nor shall any 
    liability be imposed against any person for the act of 
    communicating or delivering information or data to the 
    Director, the Director's authorized representative, market 
    conduct surveillance personnel, or examiner pursuant to an 
    examination made under this Section, if the act of 
    communication or delivery was performed in good faith and 
    without fraudulent intent or the intent to deceive.
        (3) A person identified in paragraph (1) of this 
    subsection (l) shall be entitled to an award of attorney's 
    fees and costs if he or she is the prevailing party in a 
    civil cause of action for libel, slander, or any other 
    relevant tort arising out of activities in carrying out 
    the provisions of this Section and the party bringing the 
    action was not substantially justified in doing so. As 
    used in this paragraph, a proceeding is substantially 
    justified if it had a reasonable basis in law or fact at 
    the time it was initiated.
        (4) This subsection (l) does not abrogate or modify in 
    any way any common law or statutory privilege or immunity 
    heretofore enjoyed by any person identified in paragraph 
    (1) of this subsection (l). 
    (1) The Director, for the purposes of ascertaining the 
non-financial business practices, performance, and operations 
of any company, may make examinations of: 
        (a) any company transacting or being organized to 
    transact business in this State; 
        (b) any person engaged in or proposing to be engaged 
    in the organization, promotion, or solicitation of shares 
    or capital contributions to or aiding in the formation of 
    a company; 
        (c) any person having a contract, written or oral, 
    pertaining to the management or control of a company as 
    general agent, managing agent, or attorney-in-fact; 
        (d) any licensed or registered producer, firm, or 
    administrator, or any person, organization, or corporation 
    making application for any licenses or registration; 
        (e) any person engaged in the business of adjusting 
    losses or financing premiums; or 
        (f) any person, organization, trust, or corporation 
    having custody or control of information reasonably 
    related to the operation, performance, or conduct of a 
    company or person subject to the jurisdiction of the 
    Director.
    (2) Every company or person being examined and its 
officers, directors, and agents must provide to the Director 
convenient and free access at all reasonable hours at its 
office or location to all books, records, documents, and any 
or all papers relating to the business, performance, 
operations, and affairs of the company. The officers, 
directors, and agents of the company or person must facilitate 
the examination and aid in the examination so far as it is in 
their power to do so.
    The Director and any authorized examiner have the power to 
administer oaths and examine under oath any person relative to 
the business of the company being examined.
    (3) The examiners designated by the Director under Section 
402 must make a full and true report of every examination made 
by them, which contains only facts ascertained from the books, 
papers, records, or documents, and other evidence obtained by 
investigation and examined by them or ascertained from the 
testimony of officers or agents or other persons examined 
under oath concerning the business, affairs, conduct, and 
performance of the company or person. The report of 
examination must be verified by the oath of the examiner in 
charge thereof, and when so verified is prima facie evidence 
in any action or proceeding in the name of the State against 
the company, its officers, or agents upon the facts stated 
therein.
    (4) The Director must notify the company or person made 
the subject of any examination hereunder of the contents of 
the verified examination report before filing it and making 
the report public of any matters relating thereto, and must 
afford the company or person an opportunity to demand a 
hearing with reference to the facts and other evidence therein 
contained.
    The company or person may request a hearing within 10 days 
after receipt of the examination report by giving the Director 
written notice of that request, together with a statement of 
its objections. The Director must then conduct a hearing in 
accordance with Sections 402 and 403. He must issue a written 
order based upon the examination report and upon the hearing 
within 90 days after the report is filed or within 90 days 
after the hearing.
    If the examination reveals that the company is operating 
in violation of any law, regulation, or prior order, the 
Director in the written order may require the company or 
person to take any action he considers necessary or 
appropriate in accordance with the report of examination or 
any hearing thereon. The order is subject to judicial review 
under the Administrative Review Law. The Director may withhold 
any report from public inspection for such time as he may deem 
proper and may, after filing the same, publish any part or all 
of the report as he considers to be in the interest of the 
public, in one or more newspapers in this State, without 
expense to the company.
    (5) Any company which or person who violates or aids and 
abets any violation of a written order issued under this 
Section shall be guilty of a business offense and may be fined 
not more than $5,000. The penalty shall be paid into the 
General Revenue fund of the State of Illinois.
(Source: P.A. 87-108.)
 
    (215 ILCS 5/132.5)  (from Ch. 73, par. 744.5)
    Sec. 132.5. Examination reports. 
    (a) General description. All examination reports shall be 
comprised of only facts appearing upon the books, records, or 
other documents of the company, its agents, or other persons 
examined or as ascertained from the testimony of its officers, 
agents, or other persons examined concerning its affairs and 
the conclusions and recommendations as the examiners find 
reasonably warranted from those facts.
    (b) Filing of examination report. No later than 60 days 
following completion of the examination, the examiner in 
charge shall file with the Department a verified written 
report of examination under oath. Upon receipt of the verified 
report, the Department shall transmit the report to the 
company examined, together with a notice that affords the 
company examined a reasonable opportunity of not more than 30 
days to make a written submission or rebuttal with respect to 
any matters contained in the examination report.
    (c) Adoption of the report on examination. Within 30 days 
of the end of the period allowed for the receipt of written 
submissions or rebuttals, the Director shall fully consider 
and review the report, together with any written submissions 
or rebuttals and any relevant portions of the examiners work 
papers and enter an order:
        (1) Adopting the examination report as filed or with 
    modification or corrections. If the examination report 
    reveals that the company is operating in violation of any 
    law, regulation, or prior order of the Director, the 
    Director may order the company to take any action the 
    Director considers necessary and appropriate to cure the 
    violation.
        (2) Rejecting the examination report with directions 
    to the examiners to reopen the examination for purposes of 
    obtaining additional data, documentation, or information 
    and refiling under subsection (b).
        (3) Calling for an investigatory hearing with no less 
    than 20 days notice to the company for purposes of 
    obtaining additional documentation, data, information, and 
    testimony.
    (d) Order and procedures. All orders entered under 
paragraph (1) of subsection (c) shall be accompanied by 
findings and conclusions resulting from the Director's 
consideration and review of the examination report, relevant 
examiner work papers, and any written submissions or 
rebuttals. The order shall be considered a final 
administrative decision and may be appealed in accordance with 
the Administrative Review Law. The order shall be served upon 
the company by certified mail, together with a copy of the 
adopted examination report. Within 30 days of the issuance of 
the adopted report, the company shall file affidavits executed 
by each of its directors stating under oath that they have 
received a copy of the adopted report and related orders.
    Any hearing conducted under paragraph (3) of subsection 
(c) by the Director or an authorized representative shall be 
conducted as a nonadversarial confidential investigatory 
proceeding as necessary for the resolution of any 
inconsistencies, discrepancies, or disputed issues apparent 
upon the face of the filed examination report or raised by or 
as a result of the Director's review of relevant work papers or 
by the written submission or rebuttal of the company. Within 
20 days of the conclusion of any hearing, the Director shall 
enter an order under paragraph (1) of subsection (c).
    The Director shall not appoint an examiner as an 
authorized representative to conduct the hearing. The hearing 
shall proceed expeditiously with discovery by the company 
limited to the examiner's work papers that tend to 
substantiate any assertions set forth in any written 
submission or rebuttal. The Director or his representative may 
issue subpoenas for the attendance of any witnesses or the 
production of any documents deemed relevant to the 
investigation, whether under the control of the Department, 
the company, or other persons. The documents produced shall be 
included in the record, and testimony taken by the Director or 
his representative shall be under oath and preserved for the 
record. Nothing contained in this Section shall require the 
Department to disclose any information or records that would 
indicate or show the existence or content of any investigation 
or activity of a criminal justice agency.
    The hearing shall proceed with the Director or his 
representative posing questions to the persons subpoenaed. 
Thereafter, the company and the Department may present 
testimony relevant to the investigation. Cross-examination 
shall be conducted only by the Director or his representative. 
The company and the Department shall be permitted to make 
closing statements and may be represented by counsel of their 
choice.
    (e) Publication and use. Upon the adoption of the 
examination report under paragraph (1) of subsection (c), the 
Director shall continue to hold the content of the examination 
report as private and confidential information for a period of 
35 days, except to the extent provided in subsection (b). 
Thereafter, the Director may open the report for public 
inspection so long as no court of competent jurisdiction has 
stayed its publication.
    Nothing contained in this Code shall prevent or be 
construed as prohibiting the Director from disclosing the 
content of an examination report, preliminary examination 
report or results, or any matter relating thereto, to the 
insurance department of any other state or country or to law 
enforcement officials of this or any other state or agency of 
the federal government at any time, so long as the agency or 
office receiving the report or matters relating thereto agrees 
in writing to hold it confidential and in a manner consistent 
with this Code.
    In the event the Director determines that regulatory 
action is appropriate as a result of any examination, he may 
initiate any proceedings or actions as provided by law.
    (f) Confidentiality of ancillary information. All working 
papers, recorded information, documents, and copies thereof 
produced by, obtained by, or disclosed to the Director or any 
other person in the course of any examination must be given 
confidential treatment, are not subject to subpoena, and may 
not be made public by the Director or any other persons, except 
to the extent provided in subsection (e). Access may also be 
granted to the National Association of Insurance 
Commissioners. Those parties must agree in writing before 
receiving the information to provide to it the same 
confidential treatment as required by this Section, unless the 
prior written consent of the company to which it pertains has 
been obtained.
    This subsection (f) applies to market conduct examinations 
described in Section 132 of this Code. 
    (g) Disclosure. Nothing contained in this Code shall 
prevent or be construed as prohibiting the Director from 
disclosing the information described in subsections (e) and 
(f) to the Illinois Insurance Guaranty Fund regarding any 
member company defined in Section 534.5 if the member company 
has an authorized control level event as defined in Section 
35A-25. The Director may disclose the information described in 
this subsection so long as the Fund agrees in writing to hold 
that information confidential, in a manner consistent with 
this Code, and uses that information to prepare for the 
possible liquidation of the member company. Access to the 
information disclosed by the Director to the Fund shall be 
limited to the Fund's staff and its counsel. The Board of 
Directors of the Fund may have access to the information 
disclosed by the Director to the Fund once the member company 
is subject to a delinquency proceeding under Article XIII 
subject to any terms and conditions established by the 
Director. 
(Source: P.A. 102-929, eff. 5-27-22.)
 
    (215 ILCS 5/155.35)
    Sec. 155.35. Insurance compliance self-evaluative 
privilege. 
    (a) To encourage insurance companies and persons 
conducting activities regulated under this Code, both to 
conduct voluntary internal audits of their compliance programs 
and management systems and to assess and improve compliance 
with State and federal statutes, rules, and orders, an 
insurance compliance self-evaluative privilege is recognized 
to protect the confidentiality of communications relating to 
voluntary internal compliance audits. The General Assembly 
hereby finds and declares that protection of insurance 
consumers is enhanced by companies' voluntary compliance with 
this State's insurance and other laws and that the public will 
benefit from incentives to identify and remedy insurance and 
other compliance issues. It is further declared that limited 
expansion of the protection against disclosure will encourage 
voluntary compliance and improve insurance market conduct 
quality and that the voluntary provisions of this Section will 
not inhibit the exercise of the regulatory authority by those 
entrusted with protecting insurance consumers.
    (b)(1) An insurance compliance self-evaluative audit 
document is privileged information and is not admissible as 
evidence in any legal action in any civil, criminal, or 
administrative proceeding, except as provided in subsections 
(c) and (d) of this Section. Documents, communications, data, 
reports, or other information created as a result of a claim 
involving personal injury or workers' compensation made 
against an insurance policy are not insurance compliance 
self-evaluative audit documents and are admissible as evidence 
in civil proceedings as otherwise provided by applicable rules 
of evidence or civil procedure, subject to any applicable 
statutory or common law privilege, including, but not limited 
to, the work product doctrine, the attorney-client privilege, 
or the subsequent remedial measures exclusion.
    (2) If any company, person, or entity performs or directs 
the performance of an insurance compliance audit, an officer 
or employee involved with the insurance compliance audit, or 
any consultant who is hired for the purpose of performing the 
insurance compliance audit, may not be examined in any civil, 
criminal, or administrative proceeding as to the insurance 
compliance audit or any insurance compliance self-evaluative 
audit document, as defined in this Section. This subsection 
(b)(2) does not apply if the privilege set forth in subsection 
(b)(1) of this Section is determined under subsection (c) or 
(d) not to apply.
    (3) A company may voluntarily submit, in connection with 
examinations conducted under this Article, an insurance 
compliance self-evaluative audit document to the Director, or 
his or her designee, as a confidential document under 
subsection (i) of Section 132 or subsection (f) of Section 
132.5 of this Code without waiving the privilege set forth in 
this Section to which the company would otherwise be entitled; 
provided, however, that the provisions in Sections 132 and 
subsection (f) of Section 132.5 permitting the Director to 
make confidential documents public pursuant to subsection (e) 
of Section 132.5 and grant access to the National Association 
of Insurance Commissioners shall not apply to the insurance 
compliance self-evaluative audit document so voluntarily 
submitted. Nothing contained in this subsection shall give the 
Director any authority to compel a company to disclose 
involuntarily or otherwise provide an insurance compliance 
self-evaluative audit document.
    (c)(1) The privilege set forth in subsection (b) of this 
Section does not apply to the extent that it is expressly 
waived by the company that prepared or caused to be prepared 
the insurance compliance self-evaluative audit document.
    (2) In a civil or administrative proceeding, a court of 
record may, after an in camera review, require disclosure of 
material for which the privilege set forth in subsection (b) 
of this Section is asserted, if the court determines one of the 
following: 
        (A) the privilege is asserted for a fraudulent 
    purpose; 
        (B) the material is not subject to the privilege; or 
        (C) even if subject to the privilege, the material 
    shows evidence of noncompliance with State and federal 
    statutes, rules and orders and the company failed to 
    undertake reasonable corrective action or eliminate the 
    noncompliance within a reasonable time.
    (3) In a criminal proceeding, a court of record may, after 
an in camera review, require disclosure of material for which 
the privilege described in subsection (b) of this Section is 
asserted, if the court determines one of the following: 
        (A) the privilege is asserted for a fraudulent 
    purpose; 
        (B) the material is not subject to the privilege; 
        (C) even if subject to the privilege, the material 
    shows evidence of noncompliance with State and federal 
    statutes, rules and orders and the company failed to 
    undertake reasonable corrective action or eliminate such 
    noncompliance within a reasonable time; or 
        (D) the material contains evidence relevant to 
    commission of a criminal offense under this Code, and all 
    of the following factors are present: 
            (i) the Director, State's Attorney, or Attorney 
        General has a compelling need for the information; 
            (ii) the information is not otherwise available; 
        and 
            (iii) the Director, State's Attorney, or Attorney 
        General is unable to obtain the substantial equivalent 
        of the information by any means without incurring 
        unreasonable cost and delay.
    (d)(1) Within 30 days after the Director, State's 
Attorney, or Attorney General makes a written request by 
certified mail for disclosure of an insurance compliance 
self-evaluative audit document under this subsection, the 
company that prepared or caused the document to be prepared 
may file with the appropriate court a petition requesting an 
in camera hearing on whether the insurance compliance 
self-evaluative audit document or portions of the document are 
privileged under this Section or subject to disclosure. The 
court has jurisdiction over a petition filed by a company 
under this subsection requesting an in camera hearing on 
whether the insurance compliance self-evaluative audit 
document or portions of the document are privileged or subject 
to disclosure. Failure by the company to file a petition 
waives the privilege.
    (2) A company asserting the insurance compliance 
self-evaluative privilege in response to a request for 
disclosure under this subsection shall include in its request 
for an in camera hearing all of the information set forth in 
subsection (d)(5) of this Section.
    (3) Upon the filing of a petition under this subsection, 
the court shall issue an order scheduling, within 45 days 
after the filing of the petition, an in camera hearing to 
determine whether the insurance compliance self-evaluative 
audit document or portions of the document are privileged 
under this Section or subject to disclosure.
    (4) The court, after an in camera review, may require 
disclosure of material for which the privilege in subsection 
(b) of this Section is asserted if the court determines, based 
upon its in camera review, that any one of the conditions set 
forth in subsection (c)(2)(A) through (C) is applicable as to 
a civil or administrative proceeding or that any one of the 
conditions set forth in subsection (c)(3)(A) through (D) is 
applicable as to a criminal proceeding. Upon making such a 
determination, the court may only compel the disclosure of 
those portions of an insurance compliance self-evaluative 
audit document relevant to issues in dispute in the underlying 
proceeding. Any compelled disclosure will not be considered to 
be a public document or be deemed to be a waiver of the 
privilege for any other civil, criminal, or administrative 
proceeding. A party unsuccessfully opposing disclosure may 
apply to the court for an appropriate order protecting the 
document from further disclosure.
    (5) A company asserting the insurance compliance 
self-evaluative privilege in response to a request for 
disclosure under this subsection (d) shall provide to the 
Director, State's Attorney, or Attorney General, as the case 
may be, at the time of filing any objection to the disclosure, 
all of the following information: 
        (A) The date of the insurance compliance 
    self-evaluative audit document. 
        (B) The identity of the entity conducting the audit. 
        (C) The general nature of the activities covered by 
    the insurance compliance audit. 
        (D) An identification of the portions of the insurance 
    compliance self-evaluative audit document for which the 
    privilege is being asserted.
    (e) (1) A company asserting the insurance compliance 
self-evaluative privilege set forth in subsection (b) of this 
Section has the burden of demonstrating the applicability of 
the privilege. Once a company has established the 
applicability of the privilege, a party seeking disclosure 
under subsections (c)(2)(A) or (C) of this Section has the 
burden of proving that the privilege is asserted for a 
fraudulent purpose or that the company failed to undertake 
reasonable corrective action or eliminate the noncompliance 
with a reasonable time. The Director, State's Attorney, or 
Attorney General seeking disclosure under subsection (c)(3) of 
this Section has the burden of proving the elements set forth 
in subsection (c)(3) of this Section.
    (2) The parties may at any time stipulate in proceedings 
under subsections (c) or (d) of this Section to entry of an 
order directing that specific information contained in an 
insurance compliance self-evaluative audit document is or is 
not subject to the privilege provided under subsection (b) of 
this Section.
    (f) The privilege set forth in subsection (b) of this 
Section shall not extend to any of the following: 
        (1) documents, communications, data, reports, or other 
    information required to be collected, developed, 
    maintained, reported, or otherwise made available to a 
    regulatory agency pursuant to this Code, or other federal 
    or State law, rule, or order; 
        (2) information obtained by observation or monitoring 
    by any regulatory agency; or 
        (3) information obtained from a source independent of 
    the insurance compliance audit.
    (g) As used in this Section: 
        (1) "Insurance compliance audit" means a voluntary, 
    internal evaluation, review, assessment, or audit not 
    otherwise expressly required by law of a company or an 
    activity regulated under this Code, or other State or 
    federal law applicable to a company, or of management 
    systems related to the company or activity, that is 
    designed to identify and prevent noncompliance and to 
    improve compliance with those statutes, rules, or orders. 
    An insurance compliance audit may be conducted by the 
    company, its employees, or by independent contractors. 
        (2) "Insurance compliance self-evaluative audit 
    document" means documents prepared as a result of or in 
    connection with and not prior to an insurance compliance 
    audit. An insurance compliance self-evaluation audit 
    document may include a written response to the findings of 
    an insurance compliance audit. An insurance compliance 
    self-evaluative audit document may include, but is not 
    limited to, as applicable, field notes and records of 
    observations, findings, opinions, suggestions, 
    conclusions, drafts, memoranda, drawings, photographs, 
    computer-generated or electronically recorded 
    information, phone records, maps, charts, graphs, and 
    surveys, provided this supporting information is collected 
    or developed for the primary purpose and in the course of 
    an insurance compliance audit. An insurance compliance 
    self-evaluative audit document may also include any of the 
    following: 
            (A) an insurance compliance audit report prepared 
        by an auditor, who may be an employee of the company or 
        an independent contractor, which may include the scope 
        of the audit, the information gained in the audit, and 
        conclusions and recommendations, with exhibits and 
        appendices; 
            (B) memoranda and documents analyzing portions or 
        all of the insurance compliance audit report and 
        discussing potential implementation issues; 
            (C) an implementation plan that addresses 
        correcting past noncompliance, improving current 
        compliance, and preventing future noncompliance; or 
            (D) analytic data generated in the course of 
        conducting the insurance compliance audit. 
        (3) "Company" has the same meaning as provided in 
    Section 2 of this Code.
    (h) Nothing in this Section shall limit, waive, or 
abrogate the scope or nature of any statutory or common law 
privilege including, but not limited to, the work product 
doctrine, the attorney-client privilege, or the subsequent 
remedial measures exclusion.
(Source: P.A. 90-499, eff. 8-19-97; 90-655, eff. 7-30-98.)
 
    (215 ILCS 5/402)  (from Ch. 73, par. 1014)
    Sec. 402. Examinations, investigations and hearings. (1) 
All examinations, investigations and hearings provided for by 
this Code may be conducted either by the Director personally, 
or by one or more of the actuaries, technical advisors, 
deputies, supervisors or examiners employed or retained by the 
Department and designated by the Director for such purpose. 
When necessary to supplement its examination procedures, the 
Department may retain independent actuaries deemed competent 
by the Director, independent certified public accountants, or 
qualified examiners of insurance companies, or other qualified 
outside professional assistance deemed competent by the 
Director, or any combination of the foregoing, the cost of 
which shall be borne by the company or person being examined. 
The Director may compensate independent actuaries, certified 
public accountants, and qualified examiners, and other 
qualified outside professional assistance retained for 
supplementing examination procedures in amounts not to exceed 
the reasonable and customary charges for such services. The 
Director may also accept as a part of the Department's 
examination of any company or person (a) a report by an 
independent actuary deemed competent by the Director or (b) a 
report of an audit made by an independent certified public 
accountant. Neither those persons so designated nor any 
members of their immediate families shall be officers of, 
connected with, or financially interested in any company other 
than as policyholders, nor shall they be financially 
interested in any other corporation or person affected by the 
examination, investigation or hearing.
    (2) All hearings provided for in this Code shall, unless 
otherwise specially provided, be held at such time and place 
as shall be designated in a notice which shall be given by the 
Director in writing to the person or company whose interests 
are affected, at least 10 days before the date designated 
therein. The notice shall state the subject of inquiry and the 
specific charges, if any. The hearings shall be held in the 
City of Springfield, the City of Chicago, or in the county 
where the principal business address of the person or company 
affected is located.
(Source: P.A. 87-757.)
 
    (215 ILCS 5/408)  (from Ch. 73, par. 1020)
    (Text of Section before amendment by P.A. 103-75)
    Sec. 408. Fees and charges. 
    (1) The Director shall charge, collect and give proper 
acquittances for the payment of the following fees and 
charges:
        (a) For filing all documents submitted for the 
    incorporation or organization or certification of a 
    domestic company, except for a fraternal benefit society, 
    $2,000.
        (b) For filing all documents submitted for the 
    incorporation or organization of a fraternal benefit 
    society, $500.
        (c) For filing amendments to articles of incorporation 
    and amendments to declaration of organization, except for 
    a fraternal benefit society, a mutual benefit association, 
    a burial society or a farm mutual, $200.
        (d) For filing amendments to articles of incorporation 
    of a fraternal benefit society, a mutual benefit 
    association or a burial society, $100.
        (e) For filing amendments to articles of incorporation 
    of a farm mutual, $50.
        (f) For filing bylaws or amendments thereto, $50.
        (g) For filing agreement of merger or consolidation:
            (i) for a domestic company, except for a fraternal 
        benefit society, a mutual benefit association, a 
        burial society, or a farm mutual, $2,000.
            (ii) for a foreign or alien company, except for a 
        fraternal benefit society, $600.
            (iii) for a fraternal benefit society, a mutual 
        benefit association, a burial society, or a farm 
        mutual, $200.
        (h) For filing agreements of reinsurance by a domestic 
    company, $200.
        (i) For filing all documents submitted by a foreign or 
    alien company to be admitted to transact business or 
    accredited as a reinsurer in this State, except for a 
    fraternal benefit society, $5,000.
        (j) For filing all documents submitted by a foreign or 
    alien fraternal benefit society to be admitted to transact 
    business in this State, $500.
        (k) For filing declaration of withdrawal of a foreign 
    or alien company, $50.
        (l) For filing annual statement by a domestic company, 
    except a fraternal benefit society, a mutual benefit 
    association, a burial society, or a farm mutual, $200.
        (m) For filing annual statement by a domestic 
    fraternal benefit society, $100.
        (n) For filing annual statement by a farm mutual, a 
    mutual benefit association, or a burial society, $50.
        (o) For issuing a certificate of authority or renewal 
    thereof except to a foreign fraternal benefit society, 
    $400.
        (p) For issuing a certificate of authority or renewal 
    thereof to a foreign fraternal benefit society, $200.
        (q) For issuing an amended certificate of authority, 
    $50.
        (r) For each certified copy of certificate of 
    authority, $20.
        (s) For each certificate of deposit, or valuation, or 
    compliance or surety certificate, $20.
        (t) For copies of papers or records per page, $1.
        (u) For each certification to copies of papers or 
    records, $10.
        (v) For multiple copies of documents or certificates 
    listed in subparagraphs (r), (s), and (u) of paragraph (1) 
    of this Section, $10 for the first copy of a certificate of 
    any type and $5 for each additional copy of the same 
    certificate requested at the same time, unless, pursuant 
    to paragraph (2) of this Section, the Director finds these 
    additional fees excessive.
        (w) For issuing a permit to sell shares or increase 
    paid-up capital:
            (i) in connection with a public stock offering, 
        $300;
            (ii) in any other case, $100.
        (x) For issuing any other certificate required or 
    permissible under the law, $50.
        (y) For filing a plan of exchange of the stock of a 
    domestic stock insurance company, a plan of 
    demutualization of a domestic mutual company, or a plan of 
    reorganization under Article XII, $2,000.
        (z) For filing a statement of acquisition of a 
    domestic company as defined in Section 131.4 of this Code, 
    $2,000.
        (aa) For filing an agreement to purchase the business 
    of an organization authorized under the Dental Service 
    Plan Act or the Voluntary Health Services Plans Act or of a 
    health maintenance organization or a limited health 
    service organization, $2,000.
        (bb) For filing a statement of acquisition of a 
    foreign or alien insurance company as defined in Section 
    131.12a of this Code, $1,000.
        (cc) For filing a registration statement as required 
    in Sections 131.13 and 131.14, the notification as 
    required by Sections 131.16, 131.20a, or 141.4, or an 
    agreement or transaction required by Sections 124.2(2), 
    141, 141a, or 141.1, $200.
        (dd) For filing an application for licensing of:
            (i) a religious or charitable risk pooling trust 
        or a workers' compensation pool, $1,000;
            (ii) a workers' compensation service company, 
        $500;
            (iii) a self-insured automobile fleet, $200; or
            (iv) a renewal of or amendment of any license 
        issued pursuant to (i), (ii), or (iii) above, $100.
        (ee) For filing articles of incorporation for a 
    syndicate to engage in the business of insurance through 
    the Illinois Insurance Exchange, $2,000.
        (ff) For filing amended articles of incorporation for 
    a syndicate engaged in the business of insurance through 
    the Illinois Insurance Exchange, $100.
        (gg) For filing articles of incorporation for a 
    limited syndicate to join with other subscribers or 
    limited syndicates to do business through the Illinois 
    Insurance Exchange, $1,000.
        (hh) For filing amended articles of incorporation for 
    a limited syndicate to do business through the Illinois 
    Insurance Exchange, $100.
        (ii) For a permit to solicit subscriptions to a 
    syndicate or limited syndicate, $100.
        (jj) For the filing of each form as required in 
    Section 143 of this Code, $50 per form. Informational and 
    advertising filings shall be $25 per filing. The fee for 
    advisory and rating organizations shall be $200 per form.
            (i) For the purposes of the form filing fee, 
        filings made on insert page basis will be considered 
        one form at the time of its original submission. 
        Changes made to a form subsequent to its approval 
        shall be considered a new filing.
            (ii) Only one fee shall be charged for a form, 
        regardless of the number of other forms or policies 
        with which it will be used.
            (iii) Fees charged for a policy filed as it will be 
        issued regardless of the number of forms comprising 
        that policy shall not exceed $1,500. For advisory or 
        rating organizations, fees charged for a policy filed 
        as it will be issued regardless of the number of forms 
        comprising that policy shall not exceed $2,500.
            (iv) The Director may by rule exempt forms from 
        such fees.
        (kk) For filing an application for licensing of a 
    reinsurance intermediary, $500.
        (ll) For filing an application for renewal of a 
    license of a reinsurance intermediary, $200.
        (mm) For filing a plan of division of a domestic stock 
    company under Article IIB, $10,000. 
        (nn) For filing all documents submitted by a foreign 
    or alien company to be a certified reinsurer in this 
    State, except for a fraternal benefit society, $1,000. 
        (oo) For filing a renewal by a foreign or alien 
    company to be a certified reinsurer in this State, except 
    for a fraternal benefit society, $400. 
        (pp) For filing all documents submitted by a reinsurer 
    domiciled in a reciprocal jurisdiction, $1,000. 
        (qq) For filing a renewal by a reinsurer domiciled in 
    a reciprocal jurisdiction, $400. 
        (rr) For registering a captive management company or 
    renewal thereof, $50. 
    (2) When printed copies or numerous copies of the same 
paper or records are furnished or certified, the Director may 
reduce such fees for copies if he finds them excessive. He may, 
when he considers it in the public interest, furnish without 
charge to state insurance departments and persons other than 
companies, copies or certified copies of reports of 
examinations and of other papers and records.
    (3)(a) The expenses incurred in any performance 
examination authorized by law shall be paid by the company or 
person being examined. The charge shall be consistent with 
that otherwise authorized by law and shall be reasonably 
related to the cost of the examination including but not 
limited to compensation of examiners, electronic data 
processing costs, supervision and preparation of an 
examination report and lodging and travel expenses. All 
lodging and travel expenses shall be in accord with the 
applicable travel regulations as published by the Department 
of Central Management Services and approved by the Governor's 
Travel Control Board, except that out-of-state lodging and 
travel expenses related to examinations authorized under 
Section 132 shall be in accordance with travel rates 
prescribed under paragraph 301-7.2 of the Federal Travel 
Regulations, 41 C.F.R. 301-7.2, for reimbursement of 
subsistence expenses incurred during official travel. All 
lodging and travel expenses may be reimbursed directly upon 
authorization of the Director. With the exception of the 
direct reimbursements authorized by the Director, all 
performance examination charges collected by the Department 
shall be paid to the Insurance Producer Administration Fund, 
however, the electronic data processing costs incurred by the 
Department in the performance of any examination shall be 
billed directly to the company being examined for payment to 
the Technology Management Revolving Fund.
    (b) The costs and fees incurred in a market conduct 
examination shall be itemized and bills shall be provided to 
the examinee on a monthly basis for review prior to submission 
for payment. The Director shall review and affirmatively 
endorse detailed billings from any contracted, qualified 
outside professional assistance retained under Section 402 for 
market conduct examinations before the detailed billings are 
sent to the examinee. Before any qualified outside 
professional assistance conducts billable work on an 
examination, the Department shall disclose to the examinee the 
terms of the contracts with the qualified outside professional 
assistance that will be used, including the fees and hourly 
rates that can be charged. 
    (4) At the time of any service of process on the Director 
as attorney for such service, the Director shall charge and 
collect the sum of $40, which may be recovered as taxable costs 
by the party to the suit or action causing such service to be 
made if he prevails in such suit or action.
    (5) (a) The costs incurred by the Department of Insurance 
in conducting any hearing authorized by law shall be assessed 
against the parties to the hearing in such proportion as the 
Director of Insurance may determine upon consideration of all 
relevant circumstances including: (1) the nature of the 
hearing; (2) whether the hearing was instigated by, or for the 
benefit of a particular party or parties; (3) whether there is 
a successful party on the merits of the proceeding; and (4) the 
relative levels of participation by the parties.
    (b) For purposes of this subsection (5) costs incurred 
shall mean the hearing officer fees, court reporter fees, and 
travel expenses of Department of Insurance officers and 
employees; provided however, that costs incurred shall not 
include hearing officer fees or court reporter fees unless the 
Department has retained the services of independent 
contractors or outside experts to perform such functions.
    (c) The Director shall make the assessment of costs 
incurred as part of the final order or decision arising out of 
the proceeding; provided, however, that such order or decision 
shall include findings and conclusions in support of the 
assessment of costs. This subsection (5) shall not be 
construed as permitting the payment of travel expenses unless 
calculated in accordance with the applicable travel 
regulations of the Department of Central Management Services, 
as approved by the Governor's Travel Control Board. The 
Director as part of such order or decision shall require all 
assessments for hearing officer fees and court reporter fees, 
if any, to be paid directly to the hearing officer or court 
reporter by the party(s) assessed for such costs. The 
assessments for travel expenses of Department officers and 
employees shall be reimbursable to the Director of Insurance 
for deposit to the fund out of which those expenses had been 
paid.
    (d) The provisions of this subsection (5) shall apply in 
the case of any hearing conducted by the Director of Insurance 
not otherwise specifically provided for by law.
    (6) The Director shall charge and collect an annual 
financial regulation fee from every domestic company for 
examination and analysis of its financial condition and to 
fund the internal costs and expenses of the Interstate 
Insurance Receivership Commission as may be allocated to the 
State of Illinois and companies doing an insurance business in 
this State pursuant to Article X of the Interstate Insurance 
Receivership Compact. The fee shall be the greater fixed 
amount based upon the combination of nationwide direct premium 
income and nationwide reinsurance assumed premium income or 
upon admitted assets calculated under this subsection as 
follows:
        (a) Combination of nationwide direct premium income 
    and nationwide reinsurance assumed premium.
            (i) $150, if the premium is less than $500,000 and 
        there is no reinsurance assumed premium;
            (ii) $750, if the premium is $500,000 or more, but 
        less than $5,000,000 and there is no reinsurance 
        assumed premium; or if the premium is less than 
        $5,000,000 and the reinsurance assumed premium is less 
        than $10,000,000;
            (iii) $3,750, if the premium is less than 
        $5,000,000 and the reinsurance assumed premium is 
        $10,000,000 or more;
            (iv) $7,500, if the premium is $5,000,000 or more, 
        but less than $10,000,000;
            (v) $18,000, if the premium is $10,000,000 or 
        more, but less than $25,000,000;
            (vi) $22,500, if the premium is $25,000,000 or 
        more, but less than $50,000,000;
            (vii) $30,000, if the premium is $50,000,000 or 
        more, but less than $100,000,000;
            (viii) $37,500, if the premium is $100,000,000 or 
        more.
        (b) Admitted assets.
            (i) $150, if admitted assets are less than 
        $1,000,000;
            (ii) $750, if admitted assets are $1,000,000 or 
        more, but less than $5,000,000;
            (iii) $3,750, if admitted assets are $5,000,000 or 
        more, but less than $25,000,000;
            (iv) $7,500, if admitted assets are $25,000,000 or 
        more, but less than $50,000,000;
            (v) $18,000, if admitted assets are $50,000,000 or 
        more, but less than $100,000,000;
            (vi) $22,500, if admitted assets are $100,000,000 
        or more, but less than $500,000,000;
            (vii) $30,000, if admitted assets are $500,000,000 
        or more, but less than $1,000,000,000;
            (viii) $37,500, if admitted assets are 
        $1,000,000,000 or more.
        (c) The sum of financial regulation fees charged to 
    the domestic companies of the same affiliated group shall 
    not exceed $250,000 in the aggregate in any single year 
    and shall be billed by the Director to the member company 
    designated by the group.
    (7) The Director shall charge and collect an annual 
financial regulation fee from every foreign or alien company, 
except fraternal benefit societies, for the examination and 
analysis of its financial condition and to fund the internal 
costs and expenses of the Interstate Insurance Receivership 
Commission as may be allocated to the State of Illinois and 
companies doing an insurance business in this State pursuant 
to Article X of the Interstate Insurance Receivership Compact. 
The fee shall be a fixed amount based upon Illinois direct 
premium income and nationwide reinsurance assumed premium 
income in accordance with the following schedule:
        (a) $150, if the premium is less than $500,000 and 
    there is no reinsurance assumed premium;
        (b) $750, if the premium is $500,000 or more, but less 
    than $5,000,000 and there is no reinsurance assumed 
    premium; or if the premium is less than $5,000,000 and the 
    reinsurance assumed premium is less than $10,000,000;
        (c) $3,750, if the premium is less than $5,000,000 and 
    the reinsurance assumed premium is $10,000,000 or more;
        (d) $7,500, if the premium is $5,000,000 or more, but 
    less than $10,000,000;
        (e) $18,000, if the premium is $10,000,000 or more, 
    but less than $25,000,000;
        (f) $22,500, if the premium is $25,000,000 or more, 
    but less than $50,000,000;
        (g) $30,000, if the premium is $50,000,000 or more, 
    but less than $100,000,000;
        (h) $37,500, if the premium is $100,000,000 or more.
    The sum of financial regulation fees under this subsection 
(7) charged to the foreign or alien companies within the same 
affiliated group shall not exceed $250,000 in the aggregate in 
any single year and shall be billed by the Director to the 
member company designated by the group.
    (8) Beginning January 1, 1992, the financial regulation 
fees imposed under subsections (6) and (7) of this Section 
shall be paid by each company or domestic affiliated group 
annually. After January 1, 1994, the fee shall be billed by 
Department invoice based upon the company's premium income or 
admitted assets as shown in its annual statement for the 
preceding calendar year. The invoice is due upon receipt and 
must be paid no later than June 30 of each calendar year. All 
financial regulation fees collected by the Department shall be 
paid to the Insurance Financial Regulation Fund. The 
Department may not collect financial examiner per diem charges 
from companies subject to subsections (6) and (7) of this 
Section undergoing financial examination after June 30, 1992.
    (9) In addition to the financial regulation fee required 
by this Section, a company undergoing any financial 
examination authorized by law shall pay the following costs 
and expenses incurred by the Department: electronic data 
processing costs, the expenses authorized under Section 131.21 
and subsection (d) of Section 132.4 of this Code, and lodging 
and travel expenses.
    Electronic data processing costs incurred by the 
Department in the performance of any examination shall be 
billed directly to the company undergoing examination for 
payment to the Technology Management Revolving Fund. Except 
for direct reimbursements authorized by the Director or direct 
payments made under Section 131.21 or subsection (d) of 
Section 132.4 of this Code, all financial regulation fees and 
all financial examination charges collected by the Department 
shall be paid to the Insurance Financial Regulation Fund.
    All lodging and travel expenses shall be in accordance 
with applicable travel regulations published by the Department 
of Central Management Services and approved by the Governor's 
Travel Control Board, except that out-of-state lodging and 
travel expenses related to examinations authorized under 
Sections 132.1 through 132.7 shall be in accordance with 
travel rates prescribed under paragraph 301-7.2 of the Federal 
Travel Regulations, 41 C.F.R. 301-7.2, for reimbursement of 
subsistence expenses incurred during official travel. All 
lodging and travel expenses may be reimbursed directly upon 
the authorization of the Director.
    In the case of an organization or person not subject to the 
financial regulation fee, the expenses incurred in any 
financial examination authorized by law shall be paid by the 
organization or person being examined. The charge shall be 
reasonably related to the cost of the examination including, 
but not limited to, compensation of examiners and other costs 
described in this subsection.
    (10) Any company, person, or entity failing to make any 
payment of $150 or more as required under this Section shall be 
subject to the penalty and interest provisions provided for in 
subsections (4) and (7) of Section 412.
    (11) Unless otherwise specified, all of the fees collected 
under this Section shall be paid into the Insurance Financial 
Regulation Fund.
    (12) For purposes of this Section:
        (a) "Domestic company" means a company as defined in 
    Section 2 of this Code which is incorporated or organized 
    under the laws of this State, and in addition includes a 
    not-for-profit corporation authorized under the Dental 
    Service Plan Act or the Voluntary Health Services Plans 
    Act, a health maintenance organization, and a limited 
    health service organization.
        (b) "Foreign company" means a company as defined in 
    Section 2 of this Code which is incorporated or organized 
    under the laws of any state of the United States other than 
    this State and in addition includes a health maintenance 
    organization and a limited health service organization 
    which is incorporated or organized under the laws of any 
    state of the United States other than this State.
        (c) "Alien company" means a company as defined in 
    Section 2 of this Code which is incorporated or organized 
    under the laws of any country other than the United 
    States.
        (d) "Fraternal benefit society" means a corporation, 
    society, order, lodge or voluntary association as defined 
    in Section 282.1 of this Code.
        (e) "Mutual benefit association" means a company, 
    association or corporation authorized by the Director to 
    do business in this State under the provisions of Article 
    XVIII of this Code.
        (f) "Burial society" means a person, firm, 
    corporation, society or association of individuals 
    authorized by the Director to do business in this State 
    under the provisions of Article XIX of this Code.
        (g) "Farm mutual" means a district, county and 
    township mutual insurance company authorized by the 
    Director to do business in this State under the provisions 
    of the Farm Mutual Insurance Company Act of 1986.
(Source: P.A. 102-775, eff. 5-13-22.)
 
    (Text of Section after amendment by P.A. 103-75)
    Sec. 408. Fees and charges. 
    (1) The Director shall charge, collect and give proper 
acquittances for the payment of the following fees and 
charges:
        (a) For filing all documents submitted for the 
    incorporation or organization or certification of a 
    domestic company, except for a fraternal benefit society, 
    $2,000.
        (b) For filing all documents submitted for the 
    incorporation or organization of a fraternal benefit 
    society, $500.
        (c) For filing amendments to articles of incorporation 
    and amendments to declaration of organization, except for 
    a fraternal benefit society, a mutual benefit association, 
    a burial society or a farm mutual, $200.
        (d) For filing amendments to articles of incorporation 
    of a fraternal benefit society, a mutual benefit 
    association or a burial society, $100.
        (e) For filing amendments to articles of incorporation 
    of a farm mutual, $50.
        (f) For filing bylaws or amendments thereto, $50.
        (g) For filing agreement of merger or consolidation:
            (i) for a domestic company, except for a fraternal 
        benefit society, a mutual benefit association, a 
        burial society, or a farm mutual, $2,000.
            (ii) for a foreign or alien company, except for a 
        fraternal benefit society, $600.
            (iii) for a fraternal benefit society, a mutual 
        benefit association, a burial society, or a farm 
        mutual, $200.
        (h) For filing agreements of reinsurance by a domestic 
    company, $200.
        (i) For filing all documents submitted by a foreign or 
    alien company to be admitted to transact business or 
    accredited as a reinsurer in this State, except for a 
    fraternal benefit society, $5,000.
        (j) For filing all documents submitted by a foreign or 
    alien fraternal benefit society to be admitted to transact 
    business in this State, $500.
        (k) For filing declaration of withdrawal of a foreign 
    or alien company, $50.
        (l) For filing annual statement by a domestic company, 
    except a fraternal benefit society, a mutual benefit 
    association, a burial society, or a farm mutual, $200.
        (m) For filing annual statement by a domestic 
    fraternal benefit society, $100.
        (n) For filing annual statement by a farm mutual, a 
    mutual benefit association, or a burial society, $50.
        (o) For issuing a certificate of authority or renewal 
    thereof except to a foreign fraternal benefit society, 
    $400.
        (p) For issuing a certificate of authority or renewal 
    thereof to a foreign fraternal benefit society, $200.
        (q) For issuing an amended certificate of authority, 
    $50.
        (r) For each certified copy of certificate of 
    authority, $20.
        (s) For each certificate of deposit, or valuation, or 
    compliance or surety certificate, $20.
        (t) For copies of papers or records per page, $1.
        (u) For each certification to copies of papers or 
    records, $10.
        (v) For multiple copies of documents or certificates 
    listed in subparagraphs (r), (s), and (u) of paragraph (1) 
    of this Section, $10 for the first copy of a certificate of 
    any type and $5 for each additional copy of the same 
    certificate requested at the same time, unless, pursuant 
    to paragraph (2) of this Section, the Director finds these 
    additional fees excessive.
        (w) For issuing a permit to sell shares or increase 
    paid-up capital:
            (i) in connection with a public stock offering, 
        $300;
            (ii) in any other case, $100.
        (x) For issuing any other certificate required or 
    permissible under the law, $50.
        (y) For filing a plan of exchange of the stock of a 
    domestic stock insurance company, a plan of 
    demutualization of a domestic mutual company, or a plan of 
    reorganization under Article XII, $2,000.
        (z) For filing a statement of acquisition of a 
    domestic company as defined in Section 131.4 of this Code, 
    $2,000.
        (aa) For filing an agreement to purchase the business 
    of an organization authorized under the Dental Service 
    Plan Act or the Voluntary Health Services Plans Act or of a 
    health maintenance organization or a limited health 
    service organization, $2,000.
        (bb) For filing a statement of acquisition of a 
    foreign or alien insurance company as defined in Section 
    131.12a of this Code, $1,000.
        (cc) For filing a registration statement as required 
    in Sections 131.13 and 131.14, the notification as 
    required by Sections 131.16, 131.20a, or 141.4, or an 
    agreement or transaction required by Sections 124.2(2), 
    141, 141a, or 141.1, $200.
        (dd) For filing an application for licensing of:
            (i) a religious or charitable risk pooling trust 
        or a workers' compensation pool, $1,000;
            (ii) a workers' compensation service company, 
        $500;
            (iii) a self-insured automobile fleet, $200; or
            (iv) a renewal of or amendment of any license 
        issued pursuant to (i), (ii), or (iii) above, $100.
        (ee) For filing articles of incorporation for a 
    syndicate to engage in the business of insurance through 
    the Illinois Insurance Exchange, $2,000.
        (ff) For filing amended articles of incorporation for 
    a syndicate engaged in the business of insurance through 
    the Illinois Insurance Exchange, $100.
        (gg) For filing articles of incorporation for a 
    limited syndicate to join with other subscribers or 
    limited syndicates to do business through the Illinois 
    Insurance Exchange, $1,000.
        (hh) For filing amended articles of incorporation for 
    a limited syndicate to do business through the Illinois 
    Insurance Exchange, $100.
        (ii) For a permit to solicit subscriptions to a 
    syndicate or limited syndicate, $100.
        (jj) For the filing of each form as required in 
    Section 143 of this Code, $50 per form. Informational and 
    advertising filings shall be $25 per filing. The fee for 
    advisory and rating organizations shall be $200 per form.
            (i) For the purposes of the form filing fee, 
        filings made on insert page basis will be considered 
        one form at the time of its original submission. 
        Changes made to a form subsequent to its approval 
        shall be considered a new filing.
            (ii) Only one fee shall be charged for a form, 
        regardless of the number of other forms or policies 
        with which it will be used.
            (iii) Fees charged for a policy filed as it will be 
        issued regardless of the number of forms comprising 
        that policy shall not exceed $1,500. For advisory or 
        rating organizations, fees charged for a policy filed 
        as it will be issued regardless of the number of forms 
        comprising that policy shall not exceed $2,500.
            (iv) The Director may by rule exempt forms from 
        such fees.
        (kk) For filing an application for licensing of a 
    reinsurance intermediary, $500.
        (ll) For filing an application for renewal of a 
    license of a reinsurance intermediary, $200.
        (mm) For filing a plan of division of a domestic stock 
    company under Article IIB, $10,000. 
        (nn) For filing all documents submitted by a foreign 
    or alien company to be a certified reinsurer in this 
    State, except for a fraternal benefit society, $1,000. 
        (oo) For filing a renewal by a foreign or alien 
    company to be a certified reinsurer in this State, except 
    for a fraternal benefit society, $400. 
        (pp) For filing all documents submitted by a reinsurer 
    domiciled in a reciprocal jurisdiction, $1,000. 
        (qq) For filing a renewal by a reinsurer domiciled in 
    a reciprocal jurisdiction, $400. 
        (rr) For registering a captive management company or 
    renewal thereof, $50. 
        (ss) For filing an insurance business transfer plan 
    under Article XLVII, $25,000. 
    (2) When printed copies or numerous copies of the same 
paper or records are furnished or certified, the Director may 
reduce such fees for copies if he finds them excessive. He may, 
when he considers it in the public interest, furnish without 
charge to state insurance departments and persons other than 
companies, copies or certified copies of reports of 
examinations and of other papers and records.
    (3)(a) The expenses incurred in any performance 
examination authorized by law shall be paid by the company or 
person being examined. The charge shall be consistent with 
that otherwise authorized by law and shall be reasonably 
related to the cost of the examination including but not 
limited to compensation of examiners, electronic data 
processing costs, supervision and preparation of an 
examination report and lodging and travel expenses. All 
lodging and travel expenses shall be in accord with the 
applicable travel regulations as published by the Department 
of Central Management Services and approved by the Governor's 
Travel Control Board, except that out-of-state lodging and 
travel expenses related to examinations authorized under 
Section 132 shall be in accordance with travel rates 
prescribed under paragraph 301-7.2 of the Federal Travel 
Regulations, 41 C.F.R. 301-7.2, for reimbursement of 
subsistence expenses incurred during official travel. All 
lodging and travel expenses may be reimbursed directly upon 
authorization of the Director. With the exception of the 
direct reimbursements authorized by the Director, all 
performance examination charges collected by the Department 
shall be paid to the Insurance Producer Administration Fund, 
however, the electronic data processing costs incurred by the 
Department in the performance of any examination shall be 
billed directly to the company being examined for payment to 
the Technology Management Revolving Fund.
    (b) The costs and fees incurred in a market conduct 
examination shall be itemized and bills shall be provided to 
the examinee on a monthly basis for review prior to submission 
for payment. The Director shall review and affirmatively 
endorse detailed billings from any contracted, qualified 
outside professional assistance retained under Section 402 for 
market conduct examinations before the detailed billings are 
sent to the examinee. Before any qualified outside 
professional assistance conducts billable work on an 
examination, the Department shall disclose to the examinee the 
terms of the contracts with the qualified outside professional 
assistance that will be used, including the fees and hourly 
rates that can be charged. 
    (4) At the time of any service of process on the Director 
as attorney for such service, the Director shall charge and 
collect the sum of $40, which may be recovered as taxable costs 
by the party to the suit or action causing such service to be 
made if he prevails in such suit or action.
    (5) (a) The costs incurred by the Department of Insurance 
in conducting any hearing authorized by law shall be assessed 
against the parties to the hearing in such proportion as the 
Director of Insurance may determine upon consideration of all 
relevant circumstances including: (1) the nature of the 
hearing; (2) whether the hearing was instigated by, or for the 
benefit of a particular party or parties; (3) whether there is 
a successful party on the merits of the proceeding; and (4) the 
relative levels of participation by the parties.
    (b) For purposes of this subsection (5) costs incurred 
shall mean the hearing officer fees, court reporter fees, and 
travel expenses of Department of Insurance officers and 
employees; provided however, that costs incurred shall not 
include hearing officer fees or court reporter fees unless the 
Department has retained the services of independent 
contractors or outside experts to perform such functions.
    (c) The Director shall make the assessment of costs 
incurred as part of the final order or decision arising out of 
the proceeding; provided, however, that such order or decision 
shall include findings and conclusions in support of the 
assessment of costs. This subsection (5) shall not be 
construed as permitting the payment of travel expenses unless 
calculated in accordance with the applicable travel 
regulations of the Department of Central Management Services, 
as approved by the Governor's Travel Control Board. The 
Director as part of such order or decision shall require all 
assessments for hearing officer fees and court reporter fees, 
if any, to be paid directly to the hearing officer or court 
reporter by the party(s) assessed for such costs. The 
assessments for travel expenses of Department officers and 
employees shall be reimbursable to the Director of Insurance 
for deposit to the fund out of which those expenses had been 
paid.
    (d) The provisions of this subsection (5) shall apply in 
the case of any hearing conducted by the Director of Insurance 
not otherwise specifically provided for by law.
    (6) The Director shall charge and collect an annual 
financial regulation fee from every domestic company for 
examination and analysis of its financial condition and to 
fund the internal costs and expenses of the Interstate 
Insurance Receivership Commission as may be allocated to the 
State of Illinois and companies doing an insurance business in 
this State pursuant to Article X of the Interstate Insurance 
Receivership Compact. The fee shall be the greater fixed 
amount based upon the combination of nationwide direct premium 
income and nationwide reinsurance assumed premium income or 
upon admitted assets calculated under this subsection as 
follows:
        (a) Combination of nationwide direct premium income 
    and nationwide reinsurance assumed premium.
            (i) $150, if the premium is less than $500,000 and 
        there is no reinsurance assumed premium;
            (ii) $750, if the premium is $500,000 or more, but 
        less than $5,000,000 and there is no reinsurance 
        assumed premium; or if the premium is less than 
        $5,000,000 and the reinsurance assumed premium is less 
        than $10,000,000;
            (iii) $3,750, if the premium is less than 
        $5,000,000 and the reinsurance assumed premium is 
        $10,000,000 or more;
            (iv) $7,500, if the premium is $5,000,000 or more, 
        but less than $10,000,000;
            (v) $18,000, if the premium is $10,000,000 or 
        more, but less than $25,000,000;
            (vi) $22,500, if the premium is $25,000,000 or 
        more, but less than $50,000,000;
            (vii) $30,000, if the premium is $50,000,000 or 
        more, but less than $100,000,000;
            (viii) $37,500, if the premium is $100,000,000 or 
        more.
        (b) Admitted assets.
            (i) $150, if admitted assets are less than 
        $1,000,000;
            (ii) $750, if admitted assets are $1,000,000 or 
        more, but less than $5,000,000;
            (iii) $3,750, if admitted assets are $5,000,000 or 
        more, but less than $25,000,000;
            (iv) $7,500, if admitted assets are $25,000,000 or 
        more, but less than $50,000,000;
            (v) $18,000, if admitted assets are $50,000,000 or 
        more, but less than $100,000,000;
            (vi) $22,500, if admitted assets are $100,000,000 
        or more, but less than $500,000,000;
            (vii) $30,000, if admitted assets are $500,000,000 
        or more, but less than $1,000,000,000;
            (viii) $37,500, if admitted assets are 
        $1,000,000,000 or more.
        (c) The sum of financial regulation fees charged to 
    the domestic companies of the same affiliated group shall 
    not exceed $250,000 in the aggregate in any single year 
    and shall be billed by the Director to the member company 
    designated by the group.
    (7) The Director shall charge and collect an annual 
financial regulation fee from every foreign or alien company, 
except fraternal benefit societies, for the examination and 
analysis of its financial condition and to fund the internal 
costs and expenses of the Interstate Insurance Receivership 
Commission as may be allocated to the State of Illinois and 
companies doing an insurance business in this State pursuant 
to Article X of the Interstate Insurance Receivership Compact. 
The fee shall be a fixed amount based upon Illinois direct 
premium income and nationwide reinsurance assumed premium 
income in accordance with the following schedule:
        (a) $150, if the premium is less than $500,000 and 
    there is no reinsurance assumed premium;
        (b) $750, if the premium is $500,000 or more, but less 
    than $5,000,000 and there is no reinsurance assumed 
    premium; or if the premium is less than $5,000,000 and the 
    reinsurance assumed premium is less than $10,000,000;
        (c) $3,750, if the premium is less than $5,000,000 and 
    the reinsurance assumed premium is $10,000,000 or more;
        (d) $7,500, if the premium is $5,000,000 or more, but 
    less than $10,000,000;
        (e) $18,000, if the premium is $10,000,000 or more, 
    but less than $25,000,000;
        (f) $22,500, if the premium is $25,000,000 or more, 
    but less than $50,000,000;
        (g) $30,000, if the premium is $50,000,000 or more, 
    but less than $100,000,000;
        (h) $37,500, if the premium is $100,000,000 or more.
    The sum of financial regulation fees under this subsection 
(7) charged to the foreign or alien companies within the same 
affiliated group shall not exceed $250,000 in the aggregate in 
any single year and shall be billed by the Director to the 
member company designated by the group.
    (8) Beginning January 1, 1992, the financial regulation 
fees imposed under subsections (6) and (7) of this Section 
shall be paid by each company or domestic affiliated group 
annually. After January 1, 1994, the fee shall be billed by 
Department invoice based upon the company's premium income or 
admitted assets as shown in its annual statement for the 
preceding calendar year. The invoice is due upon receipt and 
must be paid no later than June 30 of each calendar year. All 
financial regulation fees collected by the Department shall be 
paid to the Insurance Financial Regulation Fund. The 
Department may not collect financial examiner per diem charges 
from companies subject to subsections (6) and (7) of this 
Section undergoing financial examination after June 30, 1992.
    (9) In addition to the financial regulation fee required 
by this Section, a company undergoing any financial 
examination authorized by law shall pay the following costs 
and expenses incurred by the Department: electronic data 
processing costs, the expenses authorized under Section 131.21 
and subsection (d) of Section 132.4 of this Code, and lodging 
and travel expenses.
    Electronic data processing costs incurred by the 
Department in the performance of any examination shall be 
billed directly to the company undergoing examination for 
payment to the Technology Management Revolving Fund. Except 
for direct reimbursements authorized by the Director or direct 
payments made under Section 131.21 or subsection (d) of 
Section 132.4 of this Code, all financial regulation fees and 
all financial examination charges collected by the Department 
shall be paid to the Insurance Financial Regulation Fund.
    All lodging and travel expenses shall be in accordance 
with applicable travel regulations published by the Department 
of Central Management Services and approved by the Governor's 
Travel Control Board, except that out-of-state lodging and 
travel expenses related to examinations authorized under 
Sections 132.1 through 132.7 shall be in accordance with 
travel rates prescribed under paragraph 301-7.2 of the Federal 
Travel Regulations, 41 C.F.R. 301-7.2, for reimbursement of 
subsistence expenses incurred during official travel. All 
lodging and travel expenses may be reimbursed directly upon 
the authorization of the Director.
    In the case of an organization or person not subject to the 
financial regulation fee, the expenses incurred in any 
financial examination authorized by law shall be paid by the 
organization or person being examined. The charge shall be 
reasonably related to the cost of the examination including, 
but not limited to, compensation of examiners and other costs 
described in this subsection.
    (10) Any company, person, or entity failing to make any 
payment of $150 or more as required under this Section shall be 
subject to the penalty and interest provisions provided for in 
subsections (4) and (7) of Section 412.
    (11) Unless otherwise specified, all of the fees collected 
under this Section shall be paid into the Insurance Financial 
Regulation Fund.
    (12) For purposes of this Section:
        (a) "Domestic company" means a company as defined in 
    Section 2 of this Code which is incorporated or organized 
    under the laws of this State, and in addition includes a 
    not-for-profit corporation authorized under the Dental 
    Service Plan Act or the Voluntary Health Services Plans 
    Act, a health maintenance organization, and a limited 
    health service organization.
        (b) "Foreign company" means a company as defined in 
    Section 2 of this Code which is incorporated or organized 
    under the laws of any state of the United States other than 
    this State and in addition includes a health maintenance 
    organization and a limited health service organization 
    which is incorporated or organized under the laws of any 
    state of the United States other than this State.
        (c) "Alien company" means a company as defined in 
    Section 2 of this Code which is incorporated or organized 
    under the laws of any country other than the United 
    States.
        (d) "Fraternal benefit society" means a corporation, 
    society, order, lodge or voluntary association as defined 
    in Section 282.1 of this Code.
        (e) "Mutual benefit association" means a company, 
    association or corporation authorized by the Director to 
    do business in this State under the provisions of Article 
    XVIII of this Code.
        (f) "Burial society" means a person, firm, 
    corporation, society or association of individuals 
    authorized by the Director to do business in this State 
    under the provisions of Article XIX of this Code.
        (g) "Farm mutual" means a district, county and 
    township mutual insurance company authorized by the 
    Director to do business in this State under the provisions 
    of the Farm Mutual Insurance Company Act of 1986.
(Source: P.A. 102-775, eff. 5-13-22; 103-75, eff. 1-1-25.)
 
    (215 ILCS 5/511.109)  (from Ch. 73, par. 1065.58-109)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.109. Examination. 
    (a) The Director or the Director's his designee may 
examine any applicant for or holder of an administrator's 
license in accordance with Sections 132 through 132.7. If the 
Director or the examiners find that the administrator has 
violated this Article or any other insurance-related laws, 
rules, or regulations under the Director's jurisdiction 
because of the manner in which the administrator has conducted 
business on behalf of an insurer or plan sponsor, then, unless 
the insurer or plan sponsor is included in the examination and 
has been afforded the same opportunity to request or 
participate in a hearing on the examination report, the 
examination report shall not allege a violation by the insurer 
or plan sponsor and the Director's order based on the report 
shall not impose any requirements, prohibitions, or penalties 
on the insurer or plan sponsor. Nothing in this Section shall 
prevent the Director from using any information obtained 
during the examination of an administrator to examine, 
investigate, or take other appropriate regulatory or legal 
action with respect to an insurer or plan sponsor.
    (b) Any administrator being examined shall provide to the 
Director or his designee convenient and free access, at all 
reasonable hours at their offices, to all books, records, 
documents and other papers relating to such administrator's 
business affairs.
    (c) The Director or his designee may administer oaths and 
thereafter examine any individual about the business of the 
administrator.
    (d) The examiners designated by the Director pursuant to 
this Section may make reports to the Director. Any report 
alleging substantive violations of this Article, any 
applicable provisions of the Illinois Insurance Code, or any 
applicable Part of Title 50 of the Illinois Administrative 
Code shall be in writing and be based upon facts obtained by 
the examiners. The report shall be verified by the examiners.
    (e) If a report is made, the Director shall either deliver 
a duplicate thereof to the administrator being examined or 
send such duplicate by certified or registered mail to the 
administrator's address specified in the records of the 
Department. The Director shall afford the administrator an 
opportunity to request a hearing to object to the report. The 
administrator may request a hearing within 30 days after 
receipt of the duplicate of the examination report by giving 
the Director written notice of such request together with 
written objections to the report. Any hearing shall be 
conducted in accordance with Sections 402 and 403 of this 
Code. The right to hearing is waived if the delivery of the 
report is refused or the report is otherwise undeliverable or 
the administrator does not timely request a hearing. After the 
hearing or upon expiration of the time period during which an 
administrator may request a hearing, if the examination 
reveals that the administrator is operating in violation of 
any applicable provision of the Illinois Insurance Code, any 
applicable Part of Title 50 of the Illinois Administrative 
Code or prior order, the Director, in the written order, may 
require the administrator to take any action the Director 
considers necessary or appropriate in accordance with the 
report or examination hearing. If the Director issues an 
order, it shall be issued within 90 days after the report is 
filed, or if there is a hearing, within 90 days after the 
conclusion of the hearing. The order is subject to review 
under the Administrative Review Law.
(Source: P.A. 84-887.)
 
    (215 ILCS 5/512-3)  (from Ch. 73, par. 1065.59-3)
    Sec. 512-3. Definitions. For the purposes of this Article, 
unless the context otherwise requires, the terms defined in 
this Article have the meanings ascribed to them herein:
    "Health care payer" means an insurance company, health 
maintenance organization, limited health service organization, 
health services plan corporation, or dental service plan 
corporation authorized to do business in this State. 
    (a) "Third party prescription program" or "program" means 
any system of providing for the reimbursement of 
pharmaceutical services and prescription drug products offered 
or operated in this State under a contractual arrangement or 
agreement between a provider of such services and another 
party who is not the consumer of those services and products. 
Such programs may include, but need not be limited to, 
employee benefit plans whereby a consumer receives 
prescription drugs or other pharmaceutical services and those 
services are paid for by an agent of the employer or others.
    (b) "Third party program administrator" or "administrator" 
means any person, partnership or corporation who issues or 
causes to be issued any payment or reimbursement to a provider 
for services rendered pursuant to a third party prescription 
program, but does not include the Director of Healthcare and 
Family Services or any agent authorized by the Director to 
reimburse a provider of services rendered pursuant to a 
program of which the Department of Healthcare and Family 
Services is the third party.
(Source: P.A. 95-331, eff. 8-21-07.)
 
    (215 ILCS 5/512-5)  (from Ch. 73, par. 1065.59-5)
    Sec. 512-5. Fiduciary and Bonding Requirements.  A third 
party prescription program administrator shall (1) establish 
and maintain a fiduciary account, separate and apart from any 
and all other accounts, for the receipt and disbursement of 
funds for reimbursement of providers of services under the 
program, or (2) post, or cause to be posted, a bond of 
indemnity in an amount equal to not less than 10% of the total 
estimated annual reimbursements under the program.
    The establishment of such fiduciary accounts and bonds 
shall be consistent with applicable State law. If a bond of 
indemnity is posted, it shall be held by the Director of 
Insurance for the benefit and indemnification of the providers 
of services under the third party prescription program.
    An administrator who operates more than one third party 
prescription program may establish and maintain a separate 
fiduciary account or bond of indemnity for each such program, 
or may operate and maintain a consolidated fiduciary account 
or bond of indemnity for all such programs.
    The requirements of this Section do not apply to any third 
party prescription program administered by or on behalf of any 
health care payer insurance company, Health Care Service Plan 
Corporation or Pharmaceutical Service Plan Corporation 
authorized to do business in the State of Illinois.
(Source: P.A. 82-1005.)
 
    (215 ILCS 5/512-11 new)
    Sec. 512-11. Examination. The Director or the Director's 
designee may examine any applicant for or holder of an 
administrator's registration in accordance with Sections 132 
through 132.7 of this Code. If the Director or the examiners 
find that the administrator has violated this Article or any 
other insurance-related laws or regulations under the 
Director's jurisdiction because of the manner in which the 
administrator has conducted business on behalf of a separately 
incorporated health care payer, then, unless the health care 
payer is included in the examination and has been afforded the 
same opportunity to request or participate in a hearing on the 
examination report, the examination report shall not allege a 
violation by the health care payer and the Director's order 
based on the report shall not impose any requirements, 
prohibitions, or penalties on the health care payer. Nothing 
in this Section shall prevent the Director from using any 
information obtained during the examination of an 
administrator to examine, investigate, or take other 
appropriate regulatory or legal action with respect to a 
health care payer.
 
    (215 ILCS 5/513b3)
    Sec. 513b3. Examination. (a) The Director, or his or her 
designee, may examine a registered pharmacy benefit manager in 
accordance with Sections 132-132.7. If the Director or the 
examiners find that the pharmacy benefit manager has violated 
this Article or any other insurance-related laws, rules, or 
regulations under the Director's jurisdiction because of the 
manner in which the pharmacy benefit manager has conducted 
business on behalf of a health insurer or plan sponsor, then, 
unless the health insurer or plan sponsor is included in the 
examination and has been afforded the same opportunity to 
request or participate in a hearing on the examination report, 
the examination report shall not allege a violation by the 
health insurer or plan sponsor and the Director's order based 
on the report shall not impose any requirements, prohibitions, 
or penalties on the health insurer or plan sponsor. Nothing in 
this Section shall prevent the Director from using any 
information obtained during the examination of an 
administrator to examine, investigate, or take other 
appropriate regulatory or legal action with respect to a 
health insurer or plan sponsor.
    (b) Any pharmacy benefit manager being examined shall 
provide to the Director, or his or her designee, convenient 
and free access to all books, records, documents, and other 
papers relating to such pharmacy benefit manager's business 
affairs at all reasonable hours at its offices.
    (c) The Director, or his or her designee, may administer 
oaths and thereafter examine the pharmacy benefit manager's 
designee, representative, or any officer or senior manager as 
listed on the license or registration certificate about the 
business of the pharmacy benefit manager.
    (d) The examiners designated by the Director under this 
Section may make reports to the Director. Any report alleging 
substantive violations of this Article, any applicable 
provisions of this Code, or any applicable Part of Title 50 of 
the Illinois Administrative Code shall be in writing and be 
based upon facts obtained by the examiners. The report shall 
be verified by the examiners.
    (e) If a report is made, the Director shall either deliver 
a duplicate report to the pharmacy benefit manager being 
examined or send such duplicate by certified or registered 
mail to the pharmacy benefit manager's address specified in 
the records of the Department. The Director shall afford the 
pharmacy benefit manager an opportunity to request a hearing 
to object to the report. The pharmacy benefit manager may 
request a hearing within 30 days after receipt of the 
duplicate report by giving the Director written notice of such 
request together with written objections to the report. Any 
hearing shall be conducted in accordance with Sections 402 and 
403 of this Code. The right to a hearing is waived if the 
delivery of the report is refused or the report is otherwise 
undeliverable or the pharmacy benefit manager does not timely 
request a hearing. After the hearing or upon expiration of the 
time period during which a pharmacy benefit manager may 
request a hearing, if the examination reveals that the 
pharmacy benefit manager is operating in violation of any 
applicable provision of this Code, any applicable Part of 
Title 50 of the Illinois Administrative Code, a provision of 
this Article, or prior order, the Director, in the written 
order, may require the pharmacy benefit manager to take any 
action the Director considers necessary or appropriate in 
accordance with the report or examination hearing. If the 
Director issues an order, it shall be issued within 90 days 
after the report is filed, or if there is a hearing, within 90 
days after the conclusion of the hearing. The order is subject 
to review under the Administrative Review Law.
(Source: P.A. 101-452, eff. 1-1-20.)
 
    Section 95. No acceleration or delay. Where this Act makes 
changes in a statute that is represented in this Act by text 
that is not yet or no longer in effect (for example, a Section 
represented by multiple versions), the use of that text does 
not accelerate or delay the taking effect of (i) the changes 
made by this Act or (ii) provisions derived from any other 
Public Act.
 
    Section 99. Effective date. This Act takes effect January 
1, 2025.