|
|
Public Act 093-1083
|
| SB2404 Enrolled |
LRB093 20536 SAS 46343 b |
|
|
AN ACT in relation to insurance.
|
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 143, 204, 209, and 408 as follows:
|
(215 ILCS 5/143) (from Ch. 73, par. 755)
|
Sec. 143. Policy forms.
|
(1) Life, accident and health. No company
transacting the |
kind or kinds of business enumerated in Classes 1 (a), 1
(b) |
and 2 (a) of Section 4 shall issue or deliver in this State a |
policy
or certificate of insurance or evidence of coverage, |
attach an
endorsement or rider thereto,
incorporate by |
reference bylaws or other matter therein or use an
application |
blank in this State until the form and content of such
policy, |
certificate, evidence of coverage, endorsement, rider, bylaw |
or
other matter
incorporated by reference or application blank |
has been filed electronically
with the Director, either through |
the System for Electronic Rate and Form Filing (SERFF) or as |
otherwise prescribed by the Director, and
approved by the |
Director. The Department shall mail a quarterly invoice to the |
company for the appropriate filing fees required under Section |
408.
and the appropriate filing fee under Section 408
has been |
paid, except that Any such endorsement or rider
that |
unilaterally reduces benefits and is to be attached to a
policy |
subsequent to the date the policy is
issued must be filed with, |
reviewed, and formally approved by the
Director prior to the |
date it is attached to a policy issued or
delivered in this |
State. It shall be the duty of the Director to
withhold |
approval of any such policy, certificate, endorsement, rider,
|
bylaw or other matter incorporated by reference or application |
blank
filed with him if it contains provisions which encourage
|
misrepresentation or are unjust, unfair, inequitable, |
|
ambiguous,
misleading, inconsistent, deceptive, contrary to |
law or to the public
policy of this State, or contains |
exceptions and conditions that
unreasonably or deceptively |
affect the risk purported to be assumed in
the general coverage |
of the policy. In all cases the Director shall
approve or |
disapprove any such form within 60 days after submission
unless |
the Director extends by not more than an additional 30 days the
|
period within which he shall approve or disapprove any such |
form by
giving written notice to the insurer of such extension |
before expiration
of the initial 60 days period. The Director |
shall withdraw his approval
of a policy, certificate, evidence |
of coverage, endorsement, rider,
bylaw, or other matter |
incorporated
by reference or application blank if he |
subsequently determines that such
policy, certificate, |
evidence of coverage, endorsement, rider, bylaw,
other matter, |
or application
blank is misrepresentative, unjust, unfair, |
inequitable, ambiguous, misleading,
inconsistent, deceptive, |
contrary to law or public policy of this State,
or contains |
exceptions or conditions which unreasonably or deceptively |
affect
the risk purported to be assumed in the general coverage |
of the policy or
evidence of coverage.
|
If a previously approved policy, certificate, evidence of
|
coverage, endorsement, rider, bylaw
or other matter |
incorporated by reference or application blank is withdrawn
for |
use, the Director shall serve upon the company an order of |
withdrawal
of use, either personally or by mail, and if by |
mail, such service shall
be completed if such notice be |
deposited in the post office, postage prepaid,
addressed to the |
company's last known address specified in the records
of the |
Department of Insurance. The order of withdrawal of use shall |
take
effect 30 days from the date of mailing but shall be |
stayed if within the
30-day period a written request for |
hearing is filed with the Director.
Such hearing shall be held |
at such time and place as designated in the order
given by the |
Director. The hearing may be held either in the City of |
Springfield,
the City of Chicago or in the county where the |
|
principal business address
of the company is located.
The |
action of the Director in
disapproving or withdrawing such form |
shall be subject to judicial review under
the
Administrative |
Review Law.
|
This subsection shall not apply to riders or endorsements |
issued or
made at the request of the individual policyholder |
relating to the
manner of distribution of benefits or to the |
reservation of rights and
benefits under his life insurance |
policy.
|
(2) Casualty, fire, and marine. The Director shall require |
the
filing of all policy forms issued or delivered by any |
company transacting
the kind or
kinds of business enumerated in |
Classes 2 (except Class 2 (a)) and 3 of
Section 4. In addition, |
he may require the filing of any
generally used riders, |
endorsements, certificates, application blanks, and
other |
matter
incorporated by reference in any such policy or contract |
of insurance. The Department shall mail a quarterly invoice to |
the company for the appropriate filing fees required under |
Section 408
along with the appropriate filing fee under Section |
408.
Companies that are members of an organization, bureau, or |
association may
have the same filed for them by the |
organization, bureau, or association. If
the Director shall |
find from an examination of any such policy form,
rider, |
endorsement, certificate, application blank, or other matter
|
incorporated by
reference in any such policy so filed that it |
(i) violates any provision of
this Code, (ii) contains |
inconsistent, ambiguous, or misleading clauses, or
(iii) |
contains exceptions and conditions that will unreasonably or |
deceptively
affect the risks that are purported to be assumed |
by the policy, he
shall order the company or companies issuing |
these forms to discontinue
their use. Nothing in this |
subsection shall require a company
transacting the kind or |
kinds of business enumerated in Classes 2
(except Class 2 (a)) |
and 3 of Section 4 to obtain approval of these forms
before |
they are issued nor in any way affect the legality of any
|
policy that has been issued and found to be in conflict with |
|
this
subsection, but such policies shall be subject to the |
provisions of
Section 442.
|
(3) This Section shall not apply (i) to surety contracts or |
fidelity
bonds, (ii) to policies issued to an industrial |
insured as defined in Section
121-2.08 except for workers' |
compensation policies, nor (iii) to riders
or
endorsements |
prepared to meet special, unusual,
peculiar, or extraordinary |
conditions applying to an individual risk.
|
(Source: P.A. 90-794, eff. 8-14-98.)
|
(215 ILCS 5/204) (from Ch. 73, par. 816)
|
Sec. 204. Prohibited and voidable transfers and liens.
|
(a)(1) A preference is a transfer of any of the property of |
a company
to or for the benefit of a creditor, for or on |
account of an antecedent
debt, made or suffered by the company |
within 2 years before
the
filing of
a complaint under this |
Article, the effect of which may be to
enable the creditor to |
obtain a greater percentage of this debt than
another creditor |
of the same class would receive.
|
(2) Any preference may be avoided by the Director as |
rehabilitator,
liquidator, or conservator if:
|
(A) the company was insolvent at the time of the |
transfer; and
|
(B) the transfer was made within 4 months before the |
filing of the
complaint; or
the creditor receiving it was |
(i) an officer, or any employee or
attorney or other person |
who was in fact in a position of comparable
influence in |
the company to an officer whether or not that person held
|
such a position, (ii) any shareholder holding, directly or |
indirectly, more than
5% of any class of any equity |
security issued by the company, or (iii) any other
person, |
firm, corporation,
association, or aggregation of |
individuals with whom the company did not
deal at arm's |
length.
|
(3) Where the preference is voidable, the Director as |
rehabilitator,
liquidator, or conservator may recover the |
|
property or, if it has been
converted, its value from any |
person who has received or converted the
property; except where |
a bona fide purchaser or lienor has given less than
fair |
equivalent value, the purchaser or lienor shall have a lien |
upon the
property to the extent of the consideration actually |
given. Where a
preference by way of lien or security title is |
voidable, the court may on
due notice order the lien or title |
to be preserved for the benefit of the
estate, in which event |
the lien or title shall pass to the Director as
rehabilitator |
or liquidator.
|
(b) (1) A transfer of property other than real property |
shall be deemed
to be made or suffered when it becomes so far |
perfected that no subsequent
lien obtainable by legal or |
equitable proceedings on a simple contract
could become |
superior to the rights of the transferee.
|
(2) A transfer of real property shall be deemed to be made |
or suffered
when it becomes so far perfected that no subsequent |
bona fide purchaser
from the company could obtain rights |
superior to the rights of the transferee.
|
(3) A transfer that creates an equitable lien shall not be |
deemed to be
perfected if there are available means by which a |
legal lien could be created.
|
(4) A transfer not perfected before the filing of a |
complaint shall
be deemed to be made immediately before the |
filing of the complaint.
|
(5) The provisions of this subsection apply whether or not |
there are or
were creditors who might have obtained liens or |
persons who might have
become bona fide purchasers.
|
(c) For purposes of this Section:
|
(1) A lien obtainable by legal or
equitable proceedings |
upon a simple contract is one arising in the ordinary
|
course of the proceedings upon the entry or docketing of a |
judgment or
decree, or upon attachment, garnishment, |
execution, or like process,
whether before, upon, or after |
judgment or decree and whether before or upon
levy. It does |
not include liens that, under applicable law, are given a
|
|
special priority over other liens that are prior in time.
|
(2) A lien obtainable by legal or equitable proceedings |
could become
superior to the rights of a transferee, or a |
purchaser could obtain rights
superior to the rights of a |
transferee within the meaning of subsection (b)
of this |
Section, if such consequences would follow only from the |
lien or
purchase itself, or from the lien or purchase |
followed by any step wholly
within the control of the |
respective lienholder or purchaser, with or
without the aid |
of ministerial action by public officials. A lien
could |
not, however, become superior and a purchase could not |
create
superior rights for the purpose of subsection (b) of |
this Section through any
acts subsequent to an obtaining of |
the lien or subsequent to a
purchase that requires the |
agreement or concurrence of any third party or
that |
requires any further judicial action or ruling.
|
(d) A transfer of property for or on account of a new and
|
contemporaneous consideration which is deemed under subsection |
(b) of this
Section to be made or suffered after the transfer |
because of delay in
perfecting it does not thereby become a |
transfer for or on account of an
antecedent debt if any acts |
required by the applicable law to be performed
in order to |
perfect the transfer as against liens or bona fide purchasers'
|
rights are performed within 21 days or any period expressly |
allowed
by the law, whichever is less. A transfer to secure a |
future loan, if the
loan is actually made, or a transfer that |
becomes security for a future
loan, shall have the same effect |
as a transfer for or on account of a new
and contemporaneous |
consideration.
|
(e) If any lien deemed voidable under part (2) of |
subsection
(a) of this Section has been dissolved by the |
furnishing of a bond or other
obligation, the surety on which |
has been indemnified directly or indirectly
by the transfer of |
or the creation of a lien upon any property of a company
before |
the filing of a complaint under this Article, the indemnifying
|
transfer or lien shall also be deemed voidable.
|
|
(f) The property affected by any lien deemed voidable under |
subsections
(a) and (e) of this Section shall be discharged |
from the lien, and that
property and any of the indemnifying |
property transferred to or for the
benefit of a surety shall |
pass to the Director as rehabilitator or
liquidator, except |
that the court may, on due notice, order any such lien to
be |
preserved for the benefit of the estate and the court may |
direct that
such conveyance be executed as may be proper or |
adequate to
evidence the title of the Director as
rehabilitator |
or liquidator.
|
(g) The court shall have summary jurisdiction over any |
proceeding by the
Director as rehabilitator, liquidator, or |
conservator to hear and determine
the rights of any parties |
under this Section. Reasonable notice of any
hearings in the |
proceeding shall be given to all parties in interest,
including |
the obligee of a releasing bond or other life obligation. Where |
an
order is entered for the recovery of indemnifying property |
in kind
or for the avoidance of
an indemnifying lien, the |
court, upon application of any party in interest,
shall in the |
same proceeding ascertain the value of the property or lien,
|
and if the value is less than the amount for which the property |
is
indemnity or than the amount of the lien, the transferee or |
lienholder may
elect to retain the property or lien upon |
payment of its value, as
ascertained by the court, to the |
Director as rehabilitator, liquidator, or
conservator, within |
such reasonable times as the court shall fix.
|
(h) The liability of the surety under the releasing bond or |
other similar
obligation shall be discharged to the extent of |
the value of the
indemnifying property recovered or the |
indemnifying lien nullified and
avoided by the Director as
|
rehabilitator, liquidator, or conservator. Where the property |
is retained
under subsection (g) of this Section, the liability |
shall be discharged to
the extent of the amount paid to the
|
Director as rehabilitator, liquidator, or conservator.
|
(i) If a creditor has been preferred and thereafter in good |
faith gives
the company further credit without security of any |
|
kind, for property which
becomes a part of the company's |
estate, the amount of the new credit
remaining unpaid at the |
time of the petition may be set off against the
preference |
which would otherwise be recoverable from the creditor.
|
(j) If a company shall, directly or indirectly, within 4 |
months
before the filing of a complaint under this Article, or |
at any time in
contemplation of such a proceeding, pay money or |
transfer property to any
attorney for services rendered or to |
be rendered, the transactions may be
examined by the court on |
its own motion or shall be examined by the court
on petition of |
the
Director as rehabilitator, liquidator, or conservator and |
shall be held
valid only to the extent of a reasonable amount |
to be determined by the
court, and the excess may be recovered |
by the Director as rehabilitator,
liquidator, or conservator |
for the benefit of the estate provided that where
the attorney |
is in a position of influence in the company or an affiliate
|
thereof payment of any money or the transfer of any property to |
the
attorney for services rendered or to be rendered shall be |
governed by
item (B) of part (2) of subsection (a) of this |
Section.
|
(k) (1) An officer, director, manager, employee,
|
shareholder,
member, subscriber,
attorney, or other person |
acting on behalf of the company who
knowingly
participates in |
giving any preference when that officer, director, manager,
|
employee,
shareholder, member, subscriber, attorney, or other |
person has reasonable
cause to believe the company is or is |
about to become insolvent at the time
of the preference shall |
be personally liable to the Director as
rehabilitator, |
liquidator, or conservator for the amount of the preference.
|
There is a reasonable cause to so believe
if the transfer was |
made within 4 months before the date of filing of the
|
complaint.
|
(2) A person receiving any property from the company or the
|
benefit
thereof as a preference voidable under subsection (a) |
of this Section
shall be personally liable therefor and shall |
be bound to account to the
Director as rehabilitator, |
|
liquidator, or conservator.
|
(3) Nothing in this Section shall prejudice any other claim |
by the
Director as rehabilitator, liquidator, or conservator |
against any person.
|
(l) For purposes of this Section, the company is presumed |
to have been
insolvent on and during the 4 month period |
immediately preceding the date
of the filing of the complaint.
|
(m) The Director as rehabilitator, liquidator, or |
conservator may not
avoid a transfer under this Section to the |
extent that the transfer was:
|
(A) Intended by the company and the creditor to or for |
whose benefit
the transfer was made to be a contemporaneous |
exchange for new value given
to the company, and was
in |
fact a substantially contemporaneous exchange; or .
|
(B) In payment of a debt incurred by the company in the |
ordinary course
of business or financial affairs of the |
company and the transferee;
made in the ordinary course of |
business or financial affairs of the
company and the |
transferee; and
made according to ordinary business terms; |
or .
|
(C) In the case of a transfer by a company where the |
Director has determined that an event described in Section |
35A-25 or 35A-30 has occurred, specifically approved by the |
Director in writing pursuant to this subsection, whether or |
not the company is in receivership under this Article. Upon |
approval by the Director, such a transfer cannot later be |
found to constitute a prohibited or voidable transfer based |
solely upon a deviation from the statutory payment |
priorities established by law for any subsequent |
receivership.
|
(n) The Director as rehabilitator, liquidator, or |
conservator may avoid
any transfer of or lien upon the property |
of a company that the estate of the
company or a policyholder, |
creditor, member, or stockholder of the company
may have |
avoided, and the Director as rehabilitator, liquidator, or |
conservator
may recover and collect the property so transferred |
|
or its value from the
person to whom it was transferred unless |
the property was transferred to a
bona fide holder for value |
before the filing of the complaint. The Director
as |
rehabilitator, liquidator, or conservator shall be deemed a |
creditor for
purposes of pursuing claims under the Uniform |
Fraudulent Transfer Act.
|
(Source: P.A. 89-206, eff. 7-21-95.)
|
(215 ILCS 5/209) (from Ch. 73, par. 821)
|
Sec. 209. Proof and allowance of claims.
|
(1) A proof of claim shall consist of a written statement |
signed
under oath setting forth the claim, the consideration
|
for it, whether the claim is secured
and, if
so, how, what |
payments have been made on the
claim, if any, and that
the sum |
claimed is justly owing from the company. Whenever
a claim is |
based upon a document, the document, unless
lost or destroyed, |
shall be filed with the proof of claim. If the document is
lost |
or destroyed, a statement of that fact and of
the
circumstances |
of the loss or destruction shall be included in
the proof of |
claim.
A claim may be allowed even if contingent or |
unliquidated as of the date
fixed by the court
pursuant to |
subsection (a) of Section 194 if it is filed in accordance with
|
this subsection. Except as otherwise provided in subsection |
(7), a proof of
claim required under this Section must identify |
a known loss or occurrence
particular claim.
|
(2) At any time, the Director may require the claimant to |
present
information or evidence supplementary to that required |
under subsection (l)
and
may take testimony under oath, require |
production of affidavits or depositions,
or otherwise obtain |
additional information or evidence.
|
(3) Upon the liquidation, rehabilitation, or conservation |
of
any
company which has issued policies insuring the lives of |
persons, the
Director shall, within a reasonable time, after |
the last day set for the
filing of claims, make a list of the |
persons who have not filed proofs of
claim with him and whose |
rights have not been reinsured, to whom it appears
from the |
|
books of the company, there are owing amounts on such policies |
and
he shall set opposite the name of each person such amount |
so owing to such
person. The Director shall incur no personal |
liability by reason of any
mistake in such list. Each person |
whose name shall appear upon said list
shall be deemed to have |
duly filed prior to the last day set for filing of
claims a |
proof of claim for the amount set opposite his name on said |
list.
|
(4)(a) When a Liquidation, Rehabilitation, or
Conservation |
Order has been entered in a proceeding against an insurer under
|
this Code, any insured under an insurance policy shall have
the |
right to file a contingent claim. The Court at the time of the |
entry of
the Order of Liquidation, Rehabilitation or |
Conservation shall fix the final
date for the liquidation of |
insureds' contingent claims, but
in no event
shall said date be |
more than 3 years after the last day fixed for the filing of
|
claims, provided, such date may be extended by the Court on |
petition of the
Director should the Director determine that |
such extension will not delay
distribution of assets under |
Section 210. Such a contingent claim
shall be allowed if such |
claim is liquidated and the insured
claimant presents evidence |
of payment of such claim to the Director on or
before the last |
day fixed by the Court.
|
(b) When an insured has been unable to liquidate its claim |
under paragraph
(a) of this subsection (4), the insured may |
have its claim allowed by
estimation if (i) it may be |
reasonably inferred from the proof presented upon
the claim |
that a claim exists under the policy; (ii) the insured has |
furnished
suitable proof, unless the court for good cause shown |
shall otherwise direct,
that no further valid claims against |
the insurer arising out of the cause of
action other than those |
already presented can be made, and (iii) the total
liability of |
the insurer to all claimants arising out of the same act shall |
be
no greater than its total liability would be were it not in |
liquidation,
rehabilitation, or conservation.
|
(5) The obligation of the insurer, if any, to defend or |
|
continue the
defense
of any claim or suit under a liability |
insurance policy shall terminate on
the entry of the Order of |
Liquidation, Rehabilitation or Conservation,
except during the |
appeal of an Order of Liquidation as provided by Section
190.1 |
or, unless upon the petition of the Director, the court directs
|
otherwise. Insureds may include in contingent claims |
reasonable attorneys
fees for services rendered subsequent to |
the date of Liquidation,
Rehabilitation or Conservation in |
defense of claims or suits covered by the
insured's policy |
provided such attorneys fees have actually been paid by the
|
assured and evidence of payment presented in the manner |
required for insured's
contingent claims.
|
(6) When a liquidation, rehabilitation, or
conservation |
order has been
entered in a proceeding against
an insurer under |
this Code, any person who has a cause of action against an
|
insured of the insurer under an insurance
policy issued by the |
insurer shall have the right to file a
claim in the proceeding, |
regardless of the fact that the claim
may be contingent, and |
the claim may be allowed by estimation (a) if it may be
|
reasonably, inferred from proof presented upon the claim
that |
the claimant would be able to obtain a judgment upon
the cause |
of action against the insured; and (b) if
the person has |
furnished
suitable proof, unless the court for
good cause shown |
shall otherwise direct, that no further valid claims
against |
the insurer arising out of the cause of
action other than those
|
already presented can be made, and (c) the total liability of
|
the
insurer to all claimants arising out of the same act shall
|
be no greater than its total liability would be were it not in |
liquidation,
rehabilitation, or
conservation.
|
(7) Contingent or unliquidated general creditors' and |
ceding insurers'
claims that are not made absolute and |
liquidated by the last day fixed by the
court pursuant to |
subsection (4) may
shall be determined and allowed by |
estimation.
Any such estimate shall be based upon an actuarial |
evaluation made
with reasonable actuarial certainty or upon |
another accepted method of valuing
claims with reasonable |
|
certainty and, with respect to ceding insurers' claims,
may |
include an estimate of incurred but not reported losses.
|
(7.5) (a) The estimation and allowance of the loss |
development on a known loss or occurrence shall trigger a |
reinsurer's obligation to pay pursuant to its reinsurance |
contract with the insolvent company, provided that the |
allowance is made in accordance with paragraph (b) of |
subsection (4) or subsection (6). The Director shall have the |
authority to exercise all available remedies on behalf of the |
insolvent company to marshal these reinsurance recoverables. |
(b) That portion of any estimated and allowed contingent |
claim that is attributable to claims incurred but not reported |
to the insolvent company's reinsured shall not be billable to |
the insolvent company's reinsurers, except to the extent that |
(A) such claims develop into known losses or occurrences and |
become billable under paragraph (a) of this subsection or (B) |
the reinsurance contract specifically provides for the payment |
of such losses or reserves. |
(c) Notwithstanding any other provision of this Code, the |
liquidator may negotiate a voluntary commutation and release of |
all obligations arising from reinsurance contracts or other |
agreements.
|
(8) No judgment against such an insured or an
insurer taken |
after the date of the entry of the liquidation,
rehabilitation, |
or conservation order shall be considered in the
proceedings
as |
evidence of liability, or of the amount of damages, and no |
judgment
against an insured or an insurer taken by default, or |
by collusion prior to
the entry of the liquidation order shall |
be considered as conclusive
evidence in the proceeding either |
of the liability of such insured to such
person upon such cause |
of action or of the amount of damages to which such
person is |
therein entitled.
|
(9) The value of securities held by secured creditors shall |
be
determined by converting the same into money according to |
the terms of the
agreement pursuant to which such securities |
were delivered to such
creditors, or by such creditors and the |
|
Director by agreement, or by the
court, and the amount of such |
value shall be credited upon the claims of
such secured |
creditors and their claims allowed only for the balance.
|
(10) Claims of creditors or policyholders who have received
|
preferences
voidable under Section 204 or to whom conveyances |
or transfers,
assignments or incumbrances have been made or |
given which are void under
Section 204, shall not be allowed |
unless such creditors or policyholders
shall surrender such |
preferences, conveyances, transfers, assignments or
|
incumbrances.
|
(11)(a) When the Director denies a claim or allows a claim |
for less than
the amount requested by the claimant, written |
notice of the determination and
of the right to object shall be |
given promptly to the claimant or the
claimant's representative |
by first class mail at the address shown on the
proof of claim. |
Within 60 days from the mailing of the notice, the claimant
may
|
file his written objections with the Director. If no such |
filing is made on a
timely basis, the claimant may not further |
object to the determination.
|
(b) Whenever objections are filed with the Director and he |
does not alter
his determination as a result of the objection |
and the claimant continues to
object, the Director shall |
petition the court for a hearing as soon as
practicable and |
give notice of the hearing by first class mail to the claimant
|
or his representative and to any other persons known by the |
Director to be
directly affected, not less than 10 days before |
the date of the hearing.
|
(12) The Director shall review all claims duly filed in the |
liquidation,
rehabilitation, or conservation proceeding, |
unless otherwise directed by the
court, and shall make such |
further investigation as he considers necessary.
The Director |
may compound, compromise, or in any other manner negotiate the
|
amount for which claims will be recommended to the court. |
Unresolved disputes
shall be determined under subsection (11).
|
(13)(a) The Director shall present to the court reports of |
claims reviewed
under subsection (12) with his recommendations |
|
as to each claim.
|
(b) The court may approve or disapprove any recommendations |
contained in the
reports of claims filed by the Director, |
except that the Director's agreements
with claimants shall be |
accepted as final by the court on claims settled for
$10,000 or |
less.
|
(14) The changes made in this Section by this amendatory |
Act of 1993
apply to
all
liquidation, rehabilitation, or
|
conservation proceedings that are pending on the effective date |
of this
amendatory Act of 1993 and to all future liquidation, |
rehabilitation, or
conservation proceedings,
except that the |
changes made to the provisions of
this Section by this |
amendatory Act of 1993 shall not apply to any company
ordered |
into liquidation on or before January 1, 1982.
|
(15) The changes made in this Section by this amendatory |
Act of the 93rd General Assembly do not apply to any company |
ordered into liquidation on or before January 1, 2004.
|
(Source: P.A. 91-357, eff. 7-29-99.)
|
(215 ILCS 5/408) (from Ch. 73, par. 1020)
|
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, except a fraternal |
benefit
society, a mutual benefit association, a burial |
society, or
a farm mutual, $200.
|
(m) For filing annual statement by a 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 fraternal benefit society, $200.
|
(p) For issuing a certificate of authority or renewal |
thereof to a
fraternal benefit society, $100.
|
(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. 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) (Blank).
Fees charged for a policy filed as |
it will be issued regardless of
the number of forms |
comprising that policy shall not exceed $1,000
or |
$2,000
for advisory or rating organizations.
|
(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.
|
(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) The expenses incurred in any performance
examination |
authorized by law shall be paid by the company or person being
|
examined. The charge 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 Producers 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
Statistical |
Services Revolving Fund.
|
(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 $20, 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 Statistical Services 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 |