Public Act 096-0145
 
HB0394 Enrolled LRB096 03634 RPM 13662 b

    AN ACT concerning 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 Section 136 as follows:
 
    (215 ILCS 5/136)  (from Ch. 73, par. 748)
    Sec. 136. Annual statement.
    (1) Every company authorized to do business in this State
or accredited by this State shall file with the Director by
March 1st in each year 2 copies of its financial statement for
the year ending December 31st immediately preceding on forms
prescribed by the Director, which shall conform substantially
to the form of statement adopted by the National Association of
Insurance Commissioners. Unless the Director provides
otherwise, the annual statement is to be prepared in accordance
with the annual statement instructions and the Accounting
Practices and Procedures Manual adopted by the National
Association of Insurance Commissioners. The Director shall
have power to make such modifications and additions in this
form as he may deem desirable or necessary to ascertain the
condition and affairs of the company. The Director shall have
authority to extend the time for filing any statement by any
company for reasons which he considers good and sufficient. In
every statement the admitted assets shall be shown at the
actual values as of the last day of the preceding year, in
accordance with Section 126.7. The statement shall be verified
by oaths of the president and secretary of the company or, in
their absence, by 2 other principal officers. In addition, any
company may be required by the Director, when he considers that
action to be necessary and appropriate for the protection of
policyholders, creditors, shareholders, or claimants, to file,
within 60 days after mailing to the company a notice that such
is required, a supplemental summary statement as of the last
day of any calendar month occurring during the 100 days next
preceding the mailing of such notice designated by him on forms
prescribed and furnished by the Director. The Director may
require supplemental summary statements to be certified by an
independent actuary deemed competent by the Director or by an
independent certified public accountant.
    (2) The statement of an alien company shall embrace only
its condition and transactions in the United States and shall
be verified by the oaths of its resident manager or principal
representative in the United States, except that in the case of
any life company organized under the laws of Canada or any
province thereof, the statement may be verified by the oaths of
any of its principal officers designated for that purpose by
its board of directors.
    (3) For the information of the public generally the
Director shall cause an abstract of the information contained
in the annual statement to be made available to the public as
soon as practicable after filing with the Department, by
printing those abstracts in pamphlet tabular form for free
general distribution by the Department, or by such other
publication in the city of Springfield or in the city of
Chicago as may be reasonably necessary more fully to inform the
public of the financial condition of companies transacting
business in this State.
    (4) Each domestic, foreign, and alien insurer authorized to
do business in this State or accredited by this State shall
participate in the National Association of Insurance
Commissioners' Insurance Regulatory Information System,
including the payment of all fees and charges of the system.
Each company shall, on or before March 1 of each year, file
with the National Association of Insurance Commissioners a copy
of its annual financial statement along with any additional
filings prescribed by the Director for the preceding year. The
statement filed with the National Association of Insurance
Commissioners shall be in the same format and scope as that
required by this Code and shall include a signed jurat page and
actuarial certification. Any amendments and addendums to the
annual statement shall also be filed with the National
Association of Insurance Commissioners. Each company shall
also file with the National Association of Insurance
Commissioners annual and quarterly financial statement
information in computer readable format as required by the
Insurance Regulatory Information System. Failure of a company
to file financial statement information in computer readable
format shall subject the company to the provisions of Section
139.
    (5) All financial analysis ratios and examination synopsis
concerning insurance companies that are submitted to the
Director by the National Association of Insurance
Commissioners' Insurance Regulatory Information System are
confidential and may not be disclosed by the Director.
    (6) Every property and casualty insurance company doing
business in this State, unless otherwise exempted by the
Director, shall annually submit the opinion of an appointed
actuary entitled "Statement of Actuarial Opinion". This
opinion shall be filed in accordance with the appropriate
National Association of Insurance Commissioners Property and
Casualty Annual Statement Instructions.
        (a) Every property and casualty insurance company
    domiciled in this State that is required to submit a
    Statement of Actuarial Opinion shall annually submit an
    Actuarial Opinion Summary, written by the company's
    appointed actuary. This Actuarial Opinion Summary shall be
    filed in accordance with the appropriate National
    Association of Insurance Commissioners Property and
    Casualty Annual Statement Instructions and shall be
    considered as a document supporting the Actuarial Opinion
    required in this subsection (6). Each foreign and alien
    property and casualty company authorized to do business in
    this State shall provide the Actuarial Opinion Summary upon
    request.
        (b) An Actuarial Report and underlying workpapers as
    required by the appropriate National Association of
    Insurance Commissioners Property and Casualty Annual
    Statement Instructions shall be prepared to support each
    Actuarial Opinion. If the insurance company fails to
    provide a supporting Actuarial Report or workpapers at the
    request of the Director or the Director determines that the
    supporting Actuarial Report or workpapers provided by the
    insurance company is otherwise unacceptable to the
    Director, the Director may engage a qualified actuary at
    the expense of the company to review the opinion and the
    basis for the opinion and prepare the supporting Actuarial
    Report or workpapers.
        (c) The appointed actuary shall not be liable for
    damages to any person (other than the insurance company and
    the Director) for any act, error, omission, decision, or
    conduct with respect to the actuary's opinion, except in
    cases of fraud or willful misconduct on the part of the
    appointed actuary.
        (d) The Statement of Actuarial Opinion shall be
    provided with the Annual Statement in accordance with the
    appropriate National Association of Insurance
    Commissioners Property and Casualty Annual Statement
    Instructions and shall be treated as a public document.
    Documents, materials, or other information in the
    possession or control of the Director that are considered
    an Actuarial Report, workpapers, or Actuarial Opinion
    Summary provided in support of the opinion, and any other
    material provided by the company to the Director in
    connection with the Actuarial Report, workpapers or
    Actuarial Opinion Summary, must be given confidential
    treatment, are not subject to subpoena, and may not be made
    public by the Director or any other persons. This paragraph
    (d) shall not be construed to limit the Director's
    authority to release the documents to the Actuarial Board
    for Counseling and Discipline (ABCD), so long as the
    material is required for the purpose of professional
    disciplinary proceedings and that the ABCD establishes
    procedures satisfactory to the Director for preserving the
    confidentiality of the documents, nor shall this paragraph
    (d) be construed to limit the Director's authority to use
    the documents, materials or other information in
    furtherance of any regulatory or legal action brought as
    part of the Director's official duties. Neither the
    Director nor any person who received documents, materials,
    or other information while acting under the authority of
    the Director shall be permitted or required to testify in
    any private civil action concerning any confidential
    documents, materials, or information subject to this
    subsection (6). Except where another provision of this Code
    expressly prohibits a disclosure of confidential
    information to the specific officials or organizations
    described in this subsection, the Director may:
            (i) share documents, materials, or other
        information, including the confidential and privileged
        documents, materials or information subject to this
        paragraph (d) with the insurance department of any
        other state or country or with law enforcement
        officials of this or any other state or agency of the
        federal government at any time, as long as the agency
        or office receiving the document, material, or other
        information agrees in writing to hold it confidential
        and in a manner consistent with this Code;
            (ii) receive documents, materials, or information,
        including otherwise confidential and privileged
        documents, materials, or information, from the
        National Association of Insurance Commissioners and
        its affiliates and subsidiaries, and from regulatory
        and law enforcement officials of other foreign or
        domestic jurisdictions, and shall maintain as
        confidential or privileged any document, material, 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, or information; and
            (iii) enter into agreements governing sharing and
        use of information consistent with paragraph (d).
        (e) No waiver of any applicable privilege or claim of
    confidentiality in the documents, materials or information
    shall occur as a result of disclosure to the Director under
    this Section or as a result of sharing as authorized in
    subparagraphs (i), (ii), and (iii) of paragraph (d) of
    subsection (6) of this Section. All 2008 Annual Statements,
    which are filed in 2009, and all subsequent Annual
    Statement filings shall be done in accordance with
    subsection (6) of this Section.
(Source: P.A. 90-418, eff. 8-15-97.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.