Rep. JoAnn D. Osmond

Filed: 2/17/2011

 

 


 

 


 
09700HB1129ham001LRB097 06759 RPM 50445 a

1
AMENDMENT TO HOUSE BILL 1129

2    AMENDMENT NO. ______. Amend House Bill 1129 on page 1,
3immediately below line 3, by inserting the following:
 
4    "Section 3. The Illinois Insurance Code is amended by
5changing Sections 136 and 408 as follows:
 
6    (215 ILCS 5/136)  (from Ch. 73, par. 748)
7    Sec. 136. Annual statement.
8    (1) Every company authorized to do business in this State
9or accredited by this State shall submit to file with the
10Director by March 1st in each year 2 copies of its financial
11statement for the year ending December 31st immediately
12preceding in such manner and in such form as on forms
13prescribed by the Director, which shall conform substantially
14to the form of statement adopted by the National Association of
15Insurance Commissioners. Unless the Director provides
16otherwise, the annual statement is to be prepared in accordance

 

 

09700HB1129ham001- 2 -LRB097 06759 RPM 50445 a

1with the annual statement instructions and the Accounting
2Practices and Procedures Manual adopted by the National
3Association of Insurance Commissioners. The Director shall
4have power to make such modifications and additions in this
5form as he may deem desirable or necessary to ascertain the
6condition and affairs of the company. The Director shall have
7authority to extend the time for filing any statement by any
8company for reasons which he considers good and sufficient. In
9every statement the admitted assets shall be shown at the
10actual values as of the last day of the preceding year, in
11accordance with Section 126.7. The statement shall be verified
12by oaths of the president and secretary of the company or, in
13their absence, by 2 other principal officers. In addition, any
14company may be required by the Director, when he considers that
15action to be necessary and appropriate for the protection of
16policyholders, creditors, shareholders, or claimants, to file,
17within 60 days after mailing to the company a notice that such
18is required, a supplemental summary statement as of the last
19day of any calendar month occurring during the 100 days next
20preceding the mailing of such notice designated by him on forms
21prescribed and furnished by the Director. The Director may
22require supplemental summary statements to be certified by an
23independent actuary deemed competent by the Director or by an
24independent certified public accountant.
25    (2) The statement of an alien company shall embrace only
26its condition and transactions in the United States and shall

 

 

09700HB1129ham001- 3 -LRB097 06759 RPM 50445 a

1be verified by the oaths of its resident manager or principal
2representative in the United States, except that in the case of
3any life company organized under the laws of Canada or any
4province thereof, the statement may be verified by the oaths of
5any of its principal officers designated for that purpose by
6its board of directors.
7    (3) For the information of the public generally the
8Director shall cause an abstract of the information contained
9in the annual statement to be made available to the public as
10soon as practicable after filing with the Department, by
11printing those abstracts in pamphlet tabular form for free
12general distribution by the Department, or by such other
13publication in the city of Springfield or in the city of
14Chicago as may be reasonably necessary more fully to inform the
15public of the financial condition of companies transacting
16business in this State.
17    (4) Each domestic, foreign, and alien insurer authorized to
18do business in this State or accredited by this State shall
19participate in the National Association of Insurance
20Commissioners' Insurance Regulatory Information System,
21including the payment of all fees and charges of the system.
22Each company shall, on or before March 1 of each year, file
23with the National Association of Insurance Commissioners a copy
24of its annual financial statement along with any additional
25filings prescribed by the Director for the preceding year. The
26statement filed with the National Association of Insurance

 

 

09700HB1129ham001- 4 -LRB097 06759 RPM 50445 a

1Commissioners shall be in the same format and scope as that
2required by this Code and shall include a signed jurat page and
3actuarial certification. Any amendments and addendums to the
4annual statement shall also be filed with the National
5Association of Insurance Commissioners. Each company shall
6also file with the National Association of Insurance
7Commissioners annual and quarterly financial statement
8information in computer readable format as required by the
9Insurance Regulatory Information System. Failure of a company
10to file financial statement information in computer readable
11format shall subject the company to the provisions of Section
12139.
13    (5) All financial analysis ratios and examination synopsis
14concerning insurance companies that are submitted to the
15Director by the National Association of Insurance
16Commissioners' Insurance Regulatory Information System are
17confidential and may not be disclosed by the Director.
18    (6) Every property and casualty insurance company doing
19business in this State, unless otherwise exempted by the
20Director, shall annually submit the opinion of an appointed
21actuary entitled "Statement of Actuarial Opinion". This
22opinion shall be filed in accordance with the appropriate
23National Association of Insurance Commissioners Property and
24Casualty Annual Statement Instructions.
25        (a) Every property and casualty insurance company
26    domiciled in this State that is required to submit a

 

 

09700HB1129ham001- 5 -LRB097 06759 RPM 50445 a

1    Statement of Actuarial Opinion shall annually submit an
2    Actuarial Opinion Summary, written by the company's
3    appointed actuary. This Actuarial Opinion Summary shall be
4    filed in accordance with the appropriate National
5    Association of Insurance Commissioners Property and
6    Casualty Annual Statement Instructions and shall be
7    considered as a document supporting the Actuarial Opinion
8    required in this subsection (6). Each foreign and alien
9    property and casualty company authorized to do business in
10    this State shall provide the Actuarial Opinion Summary upon
11    request.
12        (b) An Actuarial Report and underlying workpapers as
13    required by the appropriate National Association of
14    Insurance Commissioners Property and Casualty Annual
15    Statement Instructions shall be prepared to support each
16    Actuarial Opinion. If the insurance company fails to
17    provide a supporting Actuarial Report or workpapers at the
18    request of the Director or the Director determines that the
19    supporting Actuarial Report or workpapers provided by the
20    insurance company is otherwise unacceptable to the
21    Director, the Director may engage a qualified actuary at
22    the expense of the company to review the opinion and the
23    basis for the opinion and prepare the supporting Actuarial
24    Report or workpapers.
25        (c) The appointed actuary shall not be liable for
26    damages to any person (other than the insurance company and

 

 

09700HB1129ham001- 6 -LRB097 06759 RPM 50445 a

1    the Director) for any act, error, omission, decision, or
2    conduct with respect to the actuary's opinion, except in
3    cases of fraud or willful misconduct on the part of the
4    appointed actuary.
5        (d) The Statement of Actuarial Opinion shall be
6    provided with the Annual Statement in accordance with the
7    appropriate National Association of Insurance
8    Commissioners Property and Casualty Annual Statement
9    Instructions and shall be treated as a public document.
10    Documents, materials, or other information in the
11    possession or control of the Director that are considered
12    an Actuarial Report, workpapers, or Actuarial Opinion
13    Summary provided in support of the opinion, and any other
14    material provided by the company to the Director in
15    connection with the Actuarial Report, workpapers or
16    Actuarial Opinion Summary, must be given confidential
17    treatment, are not subject to subpoena, and may not be made
18    public by the Director or any other persons. This paragraph
19    (d) shall not be construed to limit the Director's
20    authority to release the documents to the Actuarial Board
21    for Counseling and Discipline (ABCD), so long as the
22    material is required for the purpose of professional
23    disciplinary proceedings and that the ABCD establishes
24    procedures satisfactory to the Director for preserving the
25    confidentiality of the documents, nor shall this paragraph
26    (d) be construed to limit the Director's authority to use

 

 

09700HB1129ham001- 7 -LRB097 06759 RPM 50445 a

1    the documents, materials or other information in
2    furtherance of any regulatory or legal action brought as
3    part of the Director's official duties. Neither the
4    Director nor any person who received documents, materials,
5    or other information while acting under the authority of
6    the Director shall be permitted or required to testify in
7    any private civil action concerning any confidential
8    documents, materials, or information subject to this
9    subsection (6). Except where another provision of this Code
10    expressly prohibits a disclosure of confidential
11    information to the specific officials or organizations
12    described in this subsection, the Director may:
13            (i) share documents, materials, or other
14        information, including the confidential and privileged
15        documents, materials or information subject to this
16        paragraph (d) with the insurance department of any
17        other state or country or with law enforcement
18        officials of this or any other state or agency of the
19        federal government at any time, as long as the agency
20        or office receiving the document, material, or other
21        information agrees in writing to hold it confidential
22        and in a manner consistent with this Code;
23            (ii) receive documents, materials, or information,
24        including otherwise confidential and privileged
25        documents, materials, or information, from the
26        National Association of Insurance Commissioners and

 

 

09700HB1129ham001- 8 -LRB097 06759 RPM 50445 a

1        its affiliates and subsidiaries, and from regulatory
2        and law enforcement officials of other foreign or
3        domestic jurisdictions, and shall maintain as
4        confidential or privileged any document, material, or
5        information received with notice or the understanding
6        that it is confidential or privileged under the laws of
7        the jurisdiction that is the source of the document,
8        material, or information; and
9            (iii) enter into agreements governing sharing and
10        use of information consistent with paragraph (d).
11        (e) No waiver of any applicable privilege or claim of
12    confidentiality in the documents, materials or information
13    shall occur as a result of disclosure to the Director under
14    this Section or as a result of sharing as authorized in
15    subparagraphs (i), (ii), and (iii) of paragraph (d) of
16    subsection (6) of this Section. All 2008 Annual Statements,
17    which are filed in 2009, and all subsequent Annual
18    Statement filings shall be done in accordance with
19    subsection (6) of this Section.
20(Source: P.A. 96-145, eff. 8-7-09.)
 
21    (215 ILCS 5/408)  (from Ch. 73, par. 1020)
22    Sec. 408. Fees and charges.
23    (1) The Director shall charge, collect and give proper
24acquittances for the payment of the following fees and charges:
25        (a) For filing all documents submitted for the

 

 

09700HB1129ham001- 9 -LRB097 06759 RPM 50445 a

1    incorporation or organization or certification of a
2    domestic company, except for a fraternal benefit society,
3    $2,000.
4        (b) For filing all documents submitted for the
5    incorporation or organization of a fraternal benefit
6    society, $500.
7        (c) For filing amendments to articles of incorporation
8    and amendments to declaration of organization, except for a
9    fraternal benefit society, a mutual benefit association, a
10    burial society or a farm mutual, $200.
11        (d) For filing amendments to articles of incorporation
12    of a fraternal benefit society, a mutual benefit
13    association or a burial society, $100.
14        (e) For filing amendments to articles of incorporation
15    of a farm mutual, $50.
16        (f) For filing bylaws or amendments thereto, $50.
17        (g) For filing agreement of merger or consolidation:
18            (i) for a domestic company, except for a fraternal
19        benefit society, a mutual benefit association, a
20        burial society, or a farm mutual, $2,000.
21            (ii) for a foreign or alien company, except for a
22        fraternal benefit society, $600.
23            (iii) for a fraternal benefit society, a mutual
24        benefit association, a burial society, or a farm
25        mutual, $200.
26        (h) For filing agreements of reinsurance by a domestic

 

 

09700HB1129ham001- 10 -LRB097 06759 RPM 50445 a

1    company, $200.
2        (i) For filing all documents submitted by a foreign or
3    alien company to be admitted to transact business or
4    accredited as a reinsurer in this State, except for a
5    fraternal benefit society, $5,000.
6        (j) For filing all documents submitted by a foreign or
7    alien fraternal benefit society to be admitted to transact
8    business in this State, $500.
9        (k) For filing declaration of withdrawal of a foreign
10    or alien company, $50.
11        (l) For filing annual statement by a domestic company,
12    except a fraternal benefit society, a mutual benefit
13    association, a burial society, or a farm mutual, $200.
14        (m) For filing annual statement by a domestic fraternal
15    benefit society, $100.
16        (n) For filing annual statement by a farm mutual, a
17    mutual benefit association, or a burial society, $50.
18        (o) For issuing a certificate of authority or renewal
19    thereof except to a foreign fraternal benefit society, $400
20    $200.
21        (p) For issuing a certificate of authority or renewal
22    thereof to a foreign fraternal benefit society, $200 $100.
23        (q) For issuing an amended certificate of authority,
24    $50.
25        (r) For each certified copy of certificate of
26    authority, $20.

 

 

09700HB1129ham001- 11 -LRB097 06759 RPM 50445 a

1        (s) For each certificate of deposit, or valuation, or
2    compliance or surety certificate, $20.
3        (t) For copies of papers or records per page, $1.
4        (u) For each certification to copies of papers or
5    records, $10.
6        (v) For multiple copies of documents or certificates
7    listed in subparagraphs (r), (s), and (u) of paragraph (1)
8    of this Section, $10 for the first copy of a certificate of
9    any type and $5 for each additional copy of the same
10    certificate requested at the same time, unless, pursuant to
11    paragraph (2) of this Section, the Director finds these
12    additional fees excessive.
13        (w) For issuing a permit to sell shares or increase
14    paid-up capital:
15            (i) in connection with a public stock offering,
16        $300;
17            (ii) in any other case, $100.
18        (x) For issuing any other certificate required or
19    permissible under the law, $50.
20        (y) For filing a plan of exchange of the stock of a
21    domestic stock insurance company, a plan of
22    demutualization of a domestic mutual company, or a plan of
23    reorganization under Article XII, $2,000.
24        (z) For filing a statement of acquisition of a domestic
25    company as defined in Section 131.4 of this Code, $2,000.
26        (aa) For filing an agreement to purchase the business

 

 

09700HB1129ham001- 12 -LRB097 06759 RPM 50445 a

1    of an organization authorized under the Dental Service Plan
2    Act or the Voluntary Health Services Plans Act or of a
3    health maintenance organization or a limited health
4    service organization, $2,000.
5        (bb) For filing a statement of acquisition of a foreign
6    or alien insurance company as defined in Section 131.12a of
7    this Code, $1,000.
8        (cc) For filing a registration statement as required in
9    Sections 131.13 and 131.14, the notification as required by
10    Sections 131.16, 131.20a, or 141.4, or an agreement or
11    transaction required by Sections 124.2(2), 141, 141a, or
12    141.1, $200.
13        (dd) For filing an application for licensing of:
14            (i) a religious or charitable risk pooling trust or
15        a workers' compensation pool, $1,000;
16            (ii) a workers' compensation service company,
17        $500;
18            (iii) a self-insured automobile fleet, $200; or
19            (iv) a renewal of or amendment of any license
20        issued pursuant to (i), (ii), or (iii) above, $100.
21        (ee) For filing articles of incorporation for a
22    syndicate to engage in the business of insurance through
23    the Illinois Insurance Exchange, $2,000.
24        (ff) For filing amended articles of incorporation for a
25    syndicate engaged in the business of insurance through the
26    Illinois Insurance Exchange, $100.

 

 

09700HB1129ham001- 13 -LRB097 06759 RPM 50445 a

1        (gg) For filing articles of incorporation for a limited
2    syndicate to join with other subscribers or limited
3    syndicates to do business through the Illinois Insurance
4    Exchange, $1,000.
5        (hh) For filing amended articles of incorporation for a
6    limited syndicate to do business through the Illinois
7    Insurance Exchange, $100.
8        (ii) For a permit to solicit subscriptions to a
9    syndicate or limited syndicate, $100.
10        (jj) For the filing of each form as required in Section
11    143 of this Code, $50 per form. The fee for advisory and
12    rating organizations shall be $200 per form.
13            (i) For the purposes of the form filing fee,
14        filings made on insert page basis will be considered
15        one form at the time of its original submission.
16        Changes made to a form subsequent to its approval shall
17        be considered a new filing.
18            (ii) Only one fee shall be charged for a form,
19        regardless of the number of other forms or policies
20        with which it will be used.
21            (iii) (Blank).
22            (iv) The Director may by rule exempt forms from
23        such fees.
24        (kk) For filing an application for licensing of a
25    reinsurance intermediary, $500.
26        (ll) For filing an application for renewal of a license

 

 

09700HB1129ham001- 14 -LRB097 06759 RPM 50445 a

1    of a reinsurance intermediary, $200.
2    (2) When printed copies or numerous copies of the same
3paper or records are furnished or certified, the Director may
4reduce such fees for copies if he finds them excessive. He may,
5when he considers it in the public interest, furnish without
6charge to state insurance departments and persons other than
7companies, copies or certified copies of reports of
8examinations and of other papers and records.
9    (3) The expenses incurred in any performance examination
10authorized by law shall be paid by the company or person being
11examined. The charge shall be reasonably related to the cost of
12the examination including but not limited to compensation of
13examiners, electronic data processing costs, supervision and
14preparation of an examination report and lodging and travel
15expenses. All lodging and travel expenses shall be in accord
16with the applicable travel regulations as published by the
17Department of Central Management Services and approved by the
18Governor's Travel Control Board, except that out-of-state
19lodging and travel expenses related to examinations authorized
20under Section 132 shall be in accordance with travel rates
21prescribed under paragraph 301-7.2 of the Federal Travel
22Regulations, 41 C.F.R. 301-7.2, for reimbursement of
23subsistence expenses incurred during official travel. All
24lodging and travel expenses may be reimbursed directly upon
25authorization of the Director. With the exception of the direct
26reimbursements authorized by the Director, all performance

 

 

09700HB1129ham001- 15 -LRB097 06759 RPM 50445 a

1examination charges collected by the Department shall be paid
2to the Insurance Producers Administration Fund, however, the
3electronic data processing costs incurred by the Department in
4the performance of any examination shall be billed directly to
5the company being examined for payment to the Statistical
6Services Revolving Fund.
7    (4) At the time of any service of process on the Director
8as attorney for such service, the Director shall charge and
9collect the sum of $20, which may be recovered as taxable costs
10by the party to the suit or action causing such service to be
11made if he prevails in such suit or action.
12    (5) (a) The costs incurred by the Department of Insurance
13in conducting any hearing authorized by law shall be assessed
14against the parties to the hearing in such proportion as the
15Director of Insurance may determine upon consideration of all
16relevant circumstances including: (1) the nature of the
17hearing; (2) whether the hearing was instigated by, or for the
18benefit of a particular party or parties; (3) whether there is
19a successful party on the merits of the proceeding; and (4) the
20relative levels of participation by the parties.
21    (b) For purposes of this subsection (5) costs incurred
22shall mean the hearing officer fees, court reporter fees, and
23travel expenses of Department of Insurance officers and
24employees; provided however, that costs incurred shall not
25include hearing officer fees or court reporter fees unless the
26Department has retained the services of independent

 

 

09700HB1129ham001- 16 -LRB097 06759 RPM 50445 a

1contractors or outside experts to perform such functions.
2    (c) The Director shall make the assessment of costs
3incurred as part of the final order or decision arising out of
4the proceeding; provided, however, that such order or decision
5shall include findings and conclusions in support of the
6assessment of costs. This subsection (5) shall not be construed
7as permitting the payment of travel expenses unless calculated
8in accordance with the applicable travel regulations of the
9Department of Central Management Services, as approved by the
10Governor's Travel Control Board. The Director as part of such
11order or decision shall require all assessments for hearing
12officer fees and court reporter fees, if any, to be paid
13directly to the hearing officer or court reporter by the
14party(s) assessed for such costs. The assessments for travel
15expenses of Department officers and employees shall be
16reimbursable to the Director of Insurance for deposit to the
17fund out of which those expenses had been paid.
18    (d) The provisions of this subsection (5) shall apply in
19the case of any hearing conducted by the Director of Insurance
20not otherwise specifically provided for by law.
21    (6) The Director shall charge and collect an annual
22financial regulation fee from every domestic company for
23examination and analysis of its financial condition and to fund
24the internal costs and expenses of the Interstate Insurance
25Receivership Commission as may be allocated to the State of
26Illinois and companies doing an insurance business in this

 

 

09700HB1129ham001- 17 -LRB097 06759 RPM 50445 a

1State pursuant to Article X of the Interstate Insurance
2Receivership Compact. The fee shall be the greater fixed amount
3based upon the combination of nationwide direct premium income
4and nationwide reinsurance assumed premium income or upon
5admitted assets calculated under this subsection as follows:
6        (a) Combination of nationwide direct premium income
7    and nationwide reinsurance assumed premium.
8            (i) $150, if the premium is less than $500,000 and
9        there is no reinsurance assumed premium;
10            (ii) $750, if the premium is $500,000 or more, but
11        less than $5,000,000 and there is no reinsurance
12        assumed premium; or if the premium is less than
13        $5,000,000 and the reinsurance assumed premium is less
14        than $10,000,000;
15            (iii) $3,750, if the premium is less than
16        $5,000,000 and the reinsurance assumed premium is
17        $10,000,000 or more;
18            (iv) $7,500, if the premium is $5,000,000 or more,
19        but less than $10,000,000;
20            (v) $18,000, if the premium is $10,000,000 or more,
21        but less than $25,000,000;
22            (vi) $22,500, if the premium is $25,000,000 or
23        more, but less than $50,000,000;
24            (vii) $30,000, if the premium is $50,000,000 or
25        more, but less than $100,000,000;
26            (viii) $37,500, if the premium is $100,000,000 or

 

 

09700HB1129ham001- 18 -LRB097 06759 RPM 50445 a

1        more.
2        (b) Admitted assets.
3            (i) $150, if admitted assets are less than
4        $1,000,000;
5            (ii) $750, if admitted assets are $1,000,000 or
6        more, but less than $5,000,000;
7            (iii) $3,750, if admitted assets are $5,000,000 or
8        more, but less than $25,000,000;
9            (iv) $7,500, if admitted assets are $25,000,000 or
10        more, but less than $50,000,000;
11            (v) $18,000, if admitted assets are $50,000,000 or
12        more, but less than $100,000,000;
13            (vi) $22,500, if admitted assets are $100,000,000
14        or more, but less than $500,000,000;
15            (vii) $30,000, if admitted assets are $500,000,000
16        or more, but less than $1,000,000,000;
17            (viii) $37,500, if admitted assets are
18        $1,000,000,000 or more.
19        (c) The sum of financial regulation fees charged to the
20    domestic companies of the same affiliated group shall not
21    exceed $250,000 in the aggregate in any single year and
22    shall be billed by the Director to the member company
23    designated by the group.
24    (7) The Director shall charge and collect an annual
25financial regulation fee from every foreign or alien company,
26except fraternal benefit societies, for the examination and

 

 

09700HB1129ham001- 19 -LRB097 06759 RPM 50445 a

1analysis of its financial condition and to fund the internal
2costs and expenses of the Interstate Insurance Receivership
3Commission as may be allocated to the State of Illinois and
4companies doing an insurance business in this State pursuant to
5Article X of the Interstate Insurance Receivership Compact. The
6fee shall be a fixed amount based upon Illinois direct premium
7income and nationwide reinsurance assumed premium income in
8accordance with the following schedule:
9        (a) $150, if the premium is less than $500,000 and
10    there is no reinsurance assumed premium;
11        (b) $750, if the premium is $500,000 or more, but less
12    than $5,000,000 and there is no reinsurance assumed
13    premium; or if the premium is less than $5,000,000 and the
14    reinsurance assumed premium is less than $10,000,000;
15        (c) $3,750, if the premium is less than $5,000,000 and
16    the reinsurance assumed premium is $10,000,000 or more;
17        (d) $7,500, if the premium is $5,000,000 or more, but
18    less than $10,000,000;
19        (e) $18,000, if the premium is $10,000,000 or more, but
20    less than $25,000,000;
21        (f) $22,500, if the premium is $25,000,000 or more, but
22    less than $50,000,000;
23        (g) $30,000, if the premium is $50,000,000 or more, but
24    less than $100,000,000;
25        (h) $37,500, if the premium is $100,000,000 or more.
26    The sum of financial regulation fees under this subsection

 

 

09700HB1129ham001- 20 -LRB097 06759 RPM 50445 a

1(7) charged to the foreign or alien companies within the same
2affiliated group shall not exceed $250,000 in the aggregate in
3any single year and shall be billed by the Director to the
4member company designated by the group.
5    (8) Beginning January 1, 1992, the financial regulation
6fees imposed under subsections (6) and (7) of this Section
7shall be paid by each company or domestic affiliated group
8annually. After January 1, 1994, the fee shall be billed by
9Department invoice based upon the company's premium income or
10admitted assets as shown in its annual statement for the
11preceding calendar year. The invoice is due upon receipt and
12must be paid no later than June 30 of each calendar year. All
13financial regulation fees collected by the Department shall be
14paid to the Insurance Financial Regulation Fund. The Department
15may not collect financial examiner per diem charges from
16companies subject to subsections (6) and (7) of this Section
17undergoing financial examination after June 30, 1992.
18    (9) In addition to the financial regulation fee required by
19this Section, a company undergoing any financial examination
20authorized by law shall pay the following costs and expenses
21incurred by the Department: electronic data processing costs,
22the expenses authorized under Section 131.21 and subsection (d)
23of Section 132.4 of this Code, and lodging and travel expenses.
24    Electronic data processing costs incurred by the
25Department in the performance of any examination shall be
26billed directly to the company undergoing examination for

 

 

09700HB1129ham001- 21 -LRB097 06759 RPM 50445 a

1payment to the Statistical Services Revolving Fund. Except for
2direct reimbursements authorized by the Director or direct
3payments made under Section 131.21 or subsection (d) of Section
4132.4 of this Code, all financial regulation fees and all
5financial examination charges collected by the Department
6shall be paid to the Insurance Financial Regulation Fund.
7    All lodging and travel expenses shall be in accordance with
8applicable travel regulations published by the Department of
9Central Management Services and approved by the Governor's
10Travel Control Board, except that out-of-state lodging and
11travel expenses related to examinations authorized under
12Sections 132.1 through 132.7 shall be in accordance with travel
13rates prescribed under paragraph 301-7.2 of the Federal Travel
14Regulations, 41 C.F.R. 301-7.2, for reimbursement of
15subsistence expenses incurred during official travel. All
16lodging and travel expenses may be reimbursed directly upon the
17authorization of the Director.
18    In the case of an organization or person not subject to the
19financial regulation fee, the expenses incurred in any
20financial examination authorized by law shall be paid by the
21organization or person being examined. The charge shall be
22reasonably related to the cost of the examination including,
23but not limited to, compensation of examiners and other costs
24described in this subsection.
25    (10) Any company, person, or entity failing to make any
26payment of $150 or more as required under this Section shall be

 

 

09700HB1129ham001- 22 -LRB097 06759 RPM 50445 a

1subject to the penalty and interest provisions provided for in
2subsections (4) and (7) of Section 412.
3    (11) Unless otherwise specified, all of the fees collected
4under this Section shall be paid into the Insurance Financial
5Regulation Fund.
6    (12) For purposes of this Section:
7        (a) "Domestic company" means a company as defined in
8    Section 2 of this Code which is incorporated or organized
9    under the laws of this State, and in addition includes a
10    not-for-profit corporation authorized under the Dental
11    Service Plan Act or the Voluntary Health Services Plans
12    Act, a health maintenance organization, and a limited
13    health service organization.
14        (b) "Foreign company" means a company as defined in
15    Section 2 of this Code which is incorporated or organized
16    under the laws of any state of the United States other than
17    this State and in addition includes a health maintenance
18    organization and a limited health service organization
19    which is incorporated or organized under the laws of any
20    state of the United States other than this State.
21        (c) "Alien company" means a company as defined in
22    Section 2 of this Code which is incorporated or organized
23    under the laws of any country other than the United States.
24        (d) "Fraternal benefit society" means a corporation,
25    society, order, lodge or voluntary association as defined
26    in Section 282.1 of this Code.

 

 

09700HB1129ham001- 23 -LRB097 06759 RPM 50445 a

1        (e) "Mutual benefit association" means a company,
2    association or corporation authorized by the Director to do
3    business in this State under the provisions of Article
4    XVIII of this Code.
5        (f) "Burial society" means a person, firm,
6    corporation, society or association of individuals
7    authorized by the Director to do business in this State
8    under the provisions of Article XIX of this Code.
9        (g) "Farm mutual" means a district, county and township
10    mutual insurance company authorized by the Director to do
11    business in this State under the provisions of the Farm
12    Mutual Insurance Company Act of 1986.
13(Source: P.A. 93-32, eff. 7-1-03; 93-1083, eff. 2-7-05.)".