Sen. William R. Haine

Filed: 5/3/2011

 

 


 

 


 
09700HB1129sam001LRB097 06759 RPM 54788 a

1
AMENDMENT TO HOUSE BILL 1129

2    AMENDMENT NO. ______. Amend House Bill 1129 on page 1, line
35, after "136", by inserting ", 143,"; and
 
4on page 8, immediately below line 13, by inserting the
5following:
 
6    "(215 ILCS 5/143)  (from Ch. 73, par. 755)
7    Sec. 143. Policy forms.
8    (1) Life, accident and health. No company transacting the
9kind or kinds of business enumerated in Classes 1 (a), 1 (b)
10and 2 (a) of Section 4 shall issue or deliver in this State a
11policy or certificate of insurance or evidence of coverage,
12attach an endorsement or rider thereto, incorporate by
13reference bylaws or other matter therein or use an application
14blank in this State until the form and content of such policy,
15certificate, evidence of coverage, endorsement, rider, bylaw
16or other matter incorporated by reference or application blank

 

 

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1has been filed electronically with the Director, either through
2the System for Electronic Rate and Form Filing (SERFF) or as
3otherwise prescribed by the Director, and approved by the
4Director. The Department shall mail a quarterly invoice to the
5company for the appropriate filing fees required under Section
6408. Any such endorsement or rider that unilaterally reduces
7benefits and is to be attached to a policy subsequent to the
8date the policy is issued must be filed with, reviewed, and
9formally approved by the Director prior to the date it is
10attached to a policy issued or delivered in this State. It
11shall be the duty of the Director to withhold approval of any
12such policy, certificate, endorsement, rider, bylaw or other
13matter incorporated by reference or application blank filed
14with him if it contains provisions which encourage
15misrepresentation or are unjust, unfair, inequitable,
16ambiguous, misleading, inconsistent, deceptive, contrary to
17law or to the public policy of this State, or contains
18exceptions and conditions that unreasonably or deceptively
19affect the risk purported to be assumed in the general coverage
20of the policy. In all cases the Director shall approve or
21disapprove any such form within 60 days after submission unless
22the Director extends by not more than an additional 30 days the
23period within which he shall approve or disapprove any such
24form by giving written notice to the insurer of such extension
25before expiration of the initial 60 days period. The Director
26shall withdraw his approval of a policy, certificate, evidence

 

 

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1of coverage, endorsement, rider, bylaw, or other matter
2incorporated by reference or application blank if he
3subsequently determines that such policy, certificate,
4evidence of coverage, endorsement, rider, bylaw, other matter,
5or application blank is misrepresentative, unjust, unfair,
6inequitable, ambiguous, misleading, inconsistent, deceptive,
7contrary to law or public policy of this State, or contains
8exceptions or conditions which unreasonably or deceptively
9affect the risk purported to be assumed in the general coverage
10of the policy or evidence of coverage.
11    If a previously approved policy, certificate, evidence of
12coverage, endorsement, rider, bylaw or other matter
13incorporated by reference or application blank is withdrawn for
14use, the Director shall serve upon the company an order of
15withdrawal of use, either personally or by mail, and if by
16mail, such service shall be completed if such notice be
17deposited in the post office, postage prepaid, addressed to the
18company's last known address specified in the records of the
19Department of Insurance. The order of withdrawal of use shall
20take effect 30 days from the date of mailing but shall be
21stayed if within the 30-day period a written request for
22hearing is filed with the Director. Such hearing shall be held
23at such time and place as designated in the order given by the
24Director. The hearing may be held either in the City of
25Springfield, the City of Chicago or in the county where the
26principal business address of the company is located. The

 

 

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1action of the Director in disapproving or withdrawing such form
2shall be subject to judicial review under the Administrative
3Review Law.
4    This subsection shall not apply to riders or endorsements
5issued or made at the request of the individual policyholder
6relating to the manner of distribution of benefits or to the
7reservation of rights and benefits under his life insurance
8policy.
9    (2) Casualty, fire, and marine. The Director shall require
10the filing of all policy forms issued or delivered by any
11company transacting the kind or kinds of business enumerated in
12Classes 2 (except Class 2 (a)) and 3 of Section 4 in an
13electronic format either through the System for Electronic Rate
14and Form Filing (SERFF) or as otherwise prescribed and approved
15by the Director. In addition, he may require the filing of any
16generally used riders, endorsements, certificates, application
17blanks, and other matter incorporated by reference in any such
18policy or contract of insurance. The Department shall mail a
19quarterly invoice to the company for the appropriate filing
20fees required under Section 408. Companies that are members of
21an organization, bureau, or association may have the same filed
22for them by the organization, bureau, or association. If the
23Director shall find from an examination of any such policy
24form, rider, endorsement, certificate, application blank, or
25other matter incorporated by reference in any such policy so
26filed that it (i) violates any provision of this Code, (ii)

 

 

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1contains inconsistent, ambiguous, or misleading clauses, or
2(iii) contains exceptions and conditions that will
3unreasonably or deceptively affect the risks that are purported
4to be assumed by the policy, he shall order the company or
5companies issuing these forms to discontinue their use. Nothing
6in this subsection shall require a company transacting the kind
7or kinds of business enumerated in Classes 2 (except Class 2
8(a)) and 3 of Section 4 to obtain approval of these forms
9before they are issued nor in any way affect the legality of
10any policy that has been issued and found to be in conflict
11with this subsection, but such policies shall be subject to the
12provisions of Section 442.
13    (3) This Section shall not apply (i) to surety contracts or
14fidelity bonds, (ii) to policies issued to an industrial
15insured as defined in Section 121-2.08 except for workers'
16compensation policies, nor (iii) to riders or endorsements
17prepared to meet special, unusual, peculiar, or extraordinary
18conditions applying to an individual risk.
19(Source: P.A. 93-1083, eff. 2-7-05.)".