Full Text of SB2404 93rd General Assembly
SB2404ham001 93RD GENERAL ASSEMBLY
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Insurance Committee
Adopted in House Comm. on May 27, 2004
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09300SB2404ham001 |
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LRB093 20536 AMC 51691 a |
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| AMENDMENT TO SENATE BILL 2404
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| AMENDMENT NO. ______. Amend Senate Bill 2404 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Sections 143, 204, and 408 as follows:
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| (215 ILCS 5/143) (from Ch. 73, par. 755)
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| Sec. 143. Policy forms.
| 8 |
| (1) Life, accident and health. No company
transacting the | 9 |
| kind or kinds of business enumerated in Classes 1 (a), 1
(b) | 10 |
| and 2 (a) of Section 4 shall issue or deliver in this State a | 11 |
| policy
or certificate of insurance or evidence of coverage, | 12 |
| attach an
endorsement or rider thereto,
incorporate by | 13 |
| reference bylaws or other matter therein or use an
application | 14 |
| blank in this State until the form and content of such
policy, | 15 |
| certificate, evidence of coverage, endorsement, rider, bylaw | 16 |
| or
other matter
incorporated by reference or application blank | 17 |
| has been filed electronically
with the Director, either through | 18 |
| the System for Electronic Rate and Form Filing (SERFF) or as | 19 |
| otherwise prescribed by the Director, and
approved by the | 20 |
| Director . The Department shall mail a quarterly invoice to the | 21 |
| company for the appropriate filing fees required under Section | 22 |
| 408.
and the appropriate filing fee under Section 408
has been | 23 |
| paid, except that Any such endorsement or rider
that | 24 |
| unilaterally reduces benefits and is to be attached to a
policy |
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| subsequent to the date the policy is
issued must be filed with, | 2 |
| reviewed, and formally approved by the
Director prior to the | 3 |
| date it is attached to a policy issued or
delivered in this | 4 |
| State. It shall be the duty of the Director to
withhold | 5 |
| approval of any such policy, certificate, endorsement, rider,
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| bylaw or other matter incorporated by reference or application | 7 |
| blank
filed with him if it contains provisions which encourage
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| misrepresentation or are unjust, unfair, inequitable, | 9 |
| ambiguous,
misleading, inconsistent, deceptive, contrary to | 10 |
| law or to the public
policy of this State, or contains | 11 |
| exceptions and conditions that
unreasonably or deceptively | 12 |
| affect the risk purported to be assumed in
the general coverage | 13 |
| of the policy. In all cases the Director shall
approve or | 14 |
| disapprove any such form within 60 days after submission
unless | 15 |
| the Director extends by not more than an additional 30 days the
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| period within which he shall approve or disapprove any such | 17 |
| form by
giving written notice to the insurer of such extension | 18 |
| before expiration
of the initial 60 days period. The Director | 19 |
| shall withdraw his approval
of a policy, certificate, evidence | 20 |
| of coverage, endorsement, rider,
bylaw, or other matter | 21 |
| incorporated
by reference or application blank if he | 22 |
| subsequently determines that such
policy, certificate, | 23 |
| evidence of coverage, endorsement, rider, bylaw,
other matter, | 24 |
| or application
blank is misrepresentative, unjust, unfair, | 25 |
| inequitable, ambiguous, misleading,
inconsistent, deceptive, | 26 |
| contrary to law or public policy of this State,
or contains | 27 |
| exceptions or conditions which unreasonably or deceptively | 28 |
| affect
the risk purported to be assumed in the general coverage | 29 |
| of the policy or
evidence of coverage.
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| If a previously approved policy, certificate, evidence of
| 31 |
| coverage, endorsement, rider, bylaw
or other matter | 32 |
| incorporated by reference or application blank is withdrawn
for | 33 |
| use, the Director shall serve upon the company an order of | 34 |
| withdrawal
of use, either personally or by mail, and if by |
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| mail, such service shall
be completed if such notice be | 2 |
| deposited in the post office, postage prepaid,
addressed to the | 3 |
| company's last known address specified in the records
of the | 4 |
| Department of Insurance. The order of withdrawal of use shall | 5 |
| take
effect 30 days from the date of mailing but shall be | 6 |
| stayed if within the
30-day period a written request for | 7 |
| hearing is filed with the Director.
Such hearing shall be held | 8 |
| at such time and place as designated in the order
given by the | 9 |
| Director. The hearing may be held either in the City of | 10 |
| Springfield,
the City of Chicago or in the county where the | 11 |
| principal business address
of the company is located.
The | 12 |
| action of the Director in
disapproving or withdrawing such form | 13 |
| shall be subject to judicial review under
the
Administrative | 14 |
| Review Law.
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| This subsection shall not apply to riders or endorsements | 16 |
| issued or
made at the request of the individual policyholder | 17 |
| relating to the
manner of distribution of benefits or to the | 18 |
| reservation of rights and
benefits under his life insurance | 19 |
| policy.
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| (2) Casualty, fire, and marine. The Director shall require | 21 |
| the
filing of all policy forms issued or delivered by any | 22 |
| company transacting
the kind or
kinds of business enumerated in | 23 |
| Classes 2 (except Class 2 (a)) and 3 of
Section 4. In addition, | 24 |
| he may require the filing of any
generally used riders, | 25 |
| endorsements, certificates, application blanks, and
other | 26 |
| matter
incorporated by reference in any such policy or contract | 27 |
| of insurance . The Department shall mail a quarterly invoice to | 28 |
| the company for the appropriate filing fees required under | 29 |
| Section 408
along with the appropriate filing fee under Section | 30 |
| 408 .
Companies that are members of an organization, bureau, or | 31 |
| association may
have the same filed for them by the | 32 |
| organization, bureau, or association. If
the Director shall | 33 |
| find from an examination of any such policy form,
rider, | 34 |
| endorsement, certificate, application blank, or other matter
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| incorporated by
reference in any such policy so filed that it | 2 |
| (i) violates any provision of
this Code, (ii) contains | 3 |
| inconsistent, ambiguous, or misleading clauses, or
(iii) | 4 |
| contains exceptions and conditions that will unreasonably or | 5 |
| deceptively
affect the risks that are purported to be assumed | 6 |
| by the policy, he
shall order the company or companies issuing | 7 |
| these forms to discontinue
their use. Nothing in this | 8 |
| subsection shall require a company
transacting the kind or | 9 |
| kinds of business enumerated in Classes 2
(except Class 2 (a)) | 10 |
| and 3 of Section 4 to obtain approval of these forms
before | 11 |
| they are issued nor in any way affect the legality of any
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| policy that has been issued and found to be in conflict with | 13 |
| this
subsection, but such policies shall be subject to the | 14 |
| provisions of
Section 442.
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| (3) This Section shall not apply (i) to surety contracts or | 16 |
| fidelity
bonds, (ii) to policies issued to an industrial | 17 |
| insured as defined in Section
121-2.08 except for workers' | 18 |
| compensation policies, nor (iii) to riders
or
endorsements | 19 |
| prepared to meet special, unusual,
peculiar, or extraordinary | 20 |
| conditions applying to an individual risk.
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| (Source: P.A. 90-794, eff. 8-14-98.)
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| (215 ILCS 5/204) (from Ch. 73, par. 816)
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| Sec. 204. Prohibited and voidable transfers and liens.
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| (a)(1) A preference is a transfer of any of the property of | 25 |
| a company
to or for the benefit of a creditor, for or on | 26 |
| account of an antecedent
debt, made or suffered by the company | 27 |
| within 2 years before
the
filing of
a complaint under this | 28 |
| Article, the effect of which may be to
enable the creditor to | 29 |
| obtain a greater percentage of this debt than
another creditor | 30 |
| of the same class would receive.
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| (2) Any preference may be avoided by the Director as | 32 |
| rehabilitator,
liquidator, or conservator if:
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| (A) the company was insolvent at the time of the |
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| transfer; and
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| (B) the transfer was made within 4 months before the | 3 |
| filing of the
complaint; or
the creditor receiving it was | 4 |
| (i) an officer, or any employee or
attorney or other person | 5 |
| who was in fact in a position of comparable
influence in | 6 |
| the company to an officer whether or not that person held
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| such a position, (ii) any shareholder holding, directly or | 8 |
| indirectly, more than
5% of any class of any equity | 9 |
| security issued by the company, or (iii) any other
person, | 10 |
| firm, corporation,
association, or aggregation of | 11 |
| individuals with whom the company did not
deal at arm's | 12 |
| length.
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| (3) Where the preference is voidable, the Director as | 14 |
| rehabilitator,
liquidator, or conservator may recover the | 15 |
| property or, if it has been
converted, its value from any | 16 |
| person who has received or converted the
property; except where | 17 |
| a bona fide purchaser or lienor has given less than
fair | 18 |
| equivalent value, the purchaser or lienor shall have a lien | 19 |
| upon the
property to the extent of the consideration actually | 20 |
| given. Where a
preference by way of lien or security title is | 21 |
| voidable, the court may on
due notice order the lien or title | 22 |
| to be preserved for the benefit of the
estate, in which event | 23 |
| the lien or title shall pass to the Director as
rehabilitator | 24 |
| or liquidator.
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| (b) (1) A transfer of property other than real property | 26 |
| shall be deemed
to be made or suffered when it becomes so far | 27 |
| perfected that no subsequent
lien obtainable by legal or | 28 |
| equitable proceedings on a simple contract
could become | 29 |
| superior to the rights of the transferee.
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| (2) A transfer of real property shall be deemed to be made | 31 |
| or suffered
when it becomes so far perfected that no subsequent | 32 |
| bona fide purchaser
from the company could obtain rights | 33 |
| superior to the rights of the transferee.
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| (3) A transfer that creates an equitable lien shall not be |
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| deemed to be
perfected if there are available means by which a | 2 |
| legal lien could be created.
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| (4) A transfer not perfected before the filing of a | 4 |
| complaint shall
be deemed to be made immediately before the | 5 |
| filing of the complaint.
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| (5) The provisions of this subsection apply whether or not | 7 |
| there are or
were creditors who might have obtained liens or | 8 |
| persons who might have
become bona fide purchasers.
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| (c) For purposes of this Section:
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| (1) A lien obtainable by legal or
equitable proceedings | 11 |
| upon a simple contract is one arising in the ordinary
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| course of the proceedings upon the entry or docketing of a | 13 |
| judgment or
decree, or upon attachment, garnishment, | 14 |
| execution, or like process,
whether before, upon, or after | 15 |
| judgment or decree and whether before or upon
levy. It does | 16 |
| not include liens that, under applicable law, are given a
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| special priority over other liens that are prior in time.
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| (2) A lien obtainable by legal or equitable proceedings | 19 |
| could become
superior to the rights of a transferee, or a | 20 |
| purchaser could obtain rights
superior to the rights of a | 21 |
| transferee within the meaning of subsection (b)
of this | 22 |
| Section, if such consequences would follow only from the | 23 |
| lien or
purchase itself, or from the lien or purchase | 24 |
| followed by any step wholly
within the control of the | 25 |
| respective lienholder or purchaser, with or
without the aid | 26 |
| of ministerial action by public officials. A lien
could | 27 |
| not, however, become superior and a purchase could not | 28 |
| create
superior rights for the purpose of subsection (b) of | 29 |
| this Section through any
acts subsequent to an obtaining of | 30 |
| the lien or subsequent to a
purchase that requires the | 31 |
| agreement or concurrence of any third party or
that | 32 |
| requires any further judicial action or ruling.
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| (d) A transfer of property for or on account of a new and
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| contemporaneous consideration which is deemed under subsection |
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| (b) of this
Section to be made or suffered after the transfer | 2 |
| because of delay in
perfecting it does not thereby become a | 3 |
| transfer for or on account of an
antecedent debt if any acts | 4 |
| required by the applicable law to be performed
in order to | 5 |
| perfect the transfer as against liens or bona fide purchasers'
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| rights are performed within 21 days or any period expressly | 7 |
| allowed
by the law, whichever is less. A transfer to secure a | 8 |
| future loan, if the
loan is actually made, or a transfer that | 9 |
| becomes security for a future
loan, shall have the same effect | 10 |
| as a transfer for or on account of a new
and contemporaneous | 11 |
| consideration.
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| (e) If any lien deemed voidable under part (2) of | 13 |
| subsection
(a) of this Section has been dissolved by the | 14 |
| furnishing of a bond or other
obligation, the surety on which | 15 |
| has been indemnified directly or indirectly
by the transfer of | 16 |
| or the creation of a lien upon any property of a company
before | 17 |
| the filing of a complaint under this Article, the indemnifying
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| transfer or lien shall also be deemed voidable.
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| (f) The property affected by any lien deemed voidable under | 20 |
| subsections
(a) and (e) of this Section shall be discharged | 21 |
| from the lien, and that
property and any of the indemnifying | 22 |
| property transferred to or for the
benefit of a surety shall | 23 |
| pass to the Director as rehabilitator or
liquidator, except | 24 |
| that the court may, on due notice, order any such lien to
be | 25 |
| preserved for the benefit of the estate and the court may | 26 |
| direct that
such conveyance be executed as may be proper or | 27 |
| adequate to
evidence the title of the Director as
rehabilitator | 28 |
| or liquidator.
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| (g) The court shall have summary jurisdiction over any | 30 |
| proceeding by the
Director as rehabilitator, liquidator, or | 31 |
| conservator to hear and determine
the rights of any parties | 32 |
| under this Section. Reasonable notice of any
hearings in the | 33 |
| proceeding shall be given to all parties in interest,
including | 34 |
| the obligee of a releasing bond or other life obligation. Where |
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| an
order is entered for the recovery of indemnifying property | 2 |
| in kind
or for the avoidance of
an indemnifying lien, the | 3 |
| court, upon application of any party in interest,
shall in the | 4 |
| same proceeding ascertain the value of the property or lien,
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| and if the value is less than the amount for which the property | 6 |
| is
indemnity or than the amount of the lien, the transferee or | 7 |
| lienholder may
elect to retain the property or lien upon | 8 |
| payment of its value, as
ascertained by the court, to the | 9 |
| Director as rehabilitator, liquidator, or
conservator, within | 10 |
| such reasonable times as the court shall fix.
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| (h) The liability of the surety under the releasing bond or | 12 |
| other similar
obligation shall be discharged to the extent of | 13 |
| the value of the
indemnifying property recovered or the | 14 |
| indemnifying lien nullified and
avoided by the Director as
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| rehabilitator, liquidator, or conservator. Where the property | 16 |
| is retained
under subsection (g) of this Section, the liability | 17 |
| shall be discharged to
the extent of the amount paid to the
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| Director as rehabilitator, liquidator, or conservator.
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| (i) If a creditor has been preferred and thereafter in good | 20 |
| faith gives
the company further credit without security of any | 21 |
| kind, for property which
becomes a part of the company's | 22 |
| estate, the amount of the new credit
remaining unpaid at the | 23 |
| time of the petition may be set off against the
preference | 24 |
| which would otherwise be recoverable from the creditor.
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| (j) If a company shall, directly or indirectly, within 4 | 26 |
| months
before the filing of a complaint under this Article, or | 27 |
| at any time in
contemplation of such a proceeding, pay money or | 28 |
| transfer property to any
attorney for services rendered or to | 29 |
| be rendered, the transactions may be
examined by the court on | 30 |
| its own motion or shall be examined by the court
on petition of | 31 |
| the
Director as rehabilitator, liquidator, or conservator and | 32 |
| shall be held
valid only to the extent of a reasonable amount | 33 |
| to be determined by the
court, and the excess may be recovered | 34 |
| by the Director as rehabilitator,
liquidator, or conservator |
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| for the benefit of the estate provided that where
the attorney | 2 |
| is in a position of influence in the company or an affiliate
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| thereof payment of any money or the transfer of any property to | 4 |
| the
attorney for services rendered or to be rendered shall be | 5 |
| governed by
item (B) of part (2) of subsection (a) of this | 6 |
| Section.
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| (k) (1) An officer, director, manager, employee,
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| shareholder,
member, subscriber,
attorney, or other person | 9 |
| acting on behalf of the company who
knowingly
participates in | 10 |
| giving any preference when that officer, director, manager,
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| employee,
shareholder, member, subscriber, attorney, or other | 12 |
| person has reasonable
cause to believe the company is or is | 13 |
| about to become insolvent at the time
of the preference shall | 14 |
| be personally liable to the Director as
rehabilitator, | 15 |
| liquidator, or conservator for the amount of the preference.
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| There is a reasonable cause to so believe
if the transfer was | 17 |
| made within 4 months before the date of filing of the
| 18 |
| complaint.
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| (2) A person receiving any property from the company or the
| 20 |
| benefit
thereof as a preference voidable under subsection (a) | 21 |
| of this Section
shall be personally liable therefor and shall | 22 |
| be bound to account to the
Director as rehabilitator, | 23 |
| liquidator, or conservator.
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| (3) Nothing in this Section shall prejudice any other claim | 25 |
| by the
Director as rehabilitator, liquidator, or conservator | 26 |
| against any person.
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| (l) For purposes of this Section, the company is presumed | 28 |
| to have been
insolvent on and during the 4 month period | 29 |
| immediately preceding the date
of the filing of the complaint.
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| (m) The Director as rehabilitator, liquidator, or | 31 |
| conservator may not
avoid a transfer under this Section to the | 32 |
| extent that the transfer was:
| 33 |
| (A) Intended by the company and the creditor to or for | 34 |
| whose benefit
the transfer was made to be a contemporaneous |
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| exchange for new value given
to the company, and was
in | 2 |
| fact a substantially contemporaneous exchange ; or .
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| (B) In payment of a debt incurred by the company in the | 4 |
| ordinary course
of business or financial affairs of the | 5 |
| company and the transferee;
made in the ordinary course of | 6 |
| business or financial affairs of the
company and the | 7 |
| transferee; and
made according to ordinary business terms ; | 8 |
| or .
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| (C) In the case of a transfer by a company where the | 10 |
| Director has determined that an event described in Section | 11 |
| 35A-25 or 35A-30 has occurred, specifically approved by the | 12 |
| Director in writing pursuant to this subsection, whether or | 13 |
| not the company is in receivership under this Article. Upon | 14 |
| approval by the Director, such a transfer cannot later be | 15 |
| found to constitute a prohibited or voidable transfer based | 16 |
| solely upon a deviation from the statutory payment | 17 |
| priorities established by law for any subsequent | 18 |
| receivership.
| 19 |
| (n) The Director as rehabilitator, liquidator, or | 20 |
| conservator may avoid
any transfer of or lien upon the property | 21 |
| of a company that the estate of the
company or a policyholder, | 22 |
| creditor, member, or stockholder of the company
may have | 23 |
| avoided, and the Director as rehabilitator, liquidator, or | 24 |
| conservator
may recover and collect the property so transferred | 25 |
| or its value from the
person to whom it was transferred unless | 26 |
| the property was transferred to a
bona fide holder for value | 27 |
| before the filing of the complaint. The Director
as | 28 |
| rehabilitator, liquidator, or conservator shall be deemed a | 29 |
| creditor for
purposes of pursuing claims under the Uniform | 30 |
| Fraudulent Transfer Act.
| 31 |
| (Source: P.A. 89-206, eff. 7-21-95.)
| 32 |
| (215 ILCS 5/408) (from Ch. 73, par. 1020)
| 33 |
| Sec. 408. Fees and charges.
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| (1) The Director shall charge, collect and
give proper | 2 |
| acquittances for the payment of the following fees and charges:
| 3 |
| (a) For filing all documents submitted for the | 4 |
| incorporation or
organization or certification of a | 5 |
| domestic company, except for a fraternal
benefit society, | 6 |
| $2,000.
| 7 |
| (b) For filing all documents submitted for the | 8 |
| incorporation or
organization of a fraternal benefit | 9 |
| society, $500.
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| (c) For filing amendments to articles of incorporation | 11 |
| and amendments to
declaration of organization, except for a | 12 |
| fraternal benefit society, a
mutual benefit association, a | 13 |
| burial society or a farm mutual, $200.
| 14 |
| (d) For filing amendments to articles of incorporation | 15 |
| of a fraternal
benefit society, a mutual benefit | 16 |
| association or a burial society, $100.
| 17 |
| (e) For filing amendments to articles of incorporation | 18 |
| of a farm mutual,
$50.
| 19 |
| (f) For filing bylaws or amendments thereto, $50.
| 20 |
| (g) For filing agreement of merger or consolidation:
| 21 |
| (i) for a domestic company, except
for a fraternal | 22 |
| benefit society, a
mutual benefit association, a | 23 |
| burial society,
or a farm mutual, $2,000.
| 24 |
| (ii) for a foreign or
alien company, except for a | 25 |
| fraternal
benefit society, $600.
| 26 |
| (iii) for a fraternal benefit society,
a mutual | 27 |
| benefit association, a burial society,
or a farm | 28 |
| mutual, $200.
| 29 |
| (h) For filing agreements of reinsurance by a domestic | 30 |
| company, $200.
| 31 |
| (i) For filing all documents submitted by a foreign or | 32 |
| alien
company to be admitted to transact business or | 33 |
| accredited as a
reinsurer in this State, except for a
| 34 |
| fraternal benefit society, $5,000.
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| (j) For filing all documents submitted by a foreign or | 2 |
| alien
fraternal benefit society to be admitted to transact | 3 |
| business
in this State, $500.
| 4 |
| (k) For filing declaration of withdrawal of a foreign | 5 |
| or
alien company, $50.
| 6 |
| (l) For filing annual statement, except a fraternal | 7 |
| benefit
society, a mutual benefit association, a burial | 8 |
| society, or
a farm mutual, $200.
| 9 |
| (m) For filing annual statement by a fraternal benefit
| 10 |
| society, $100.
| 11 |
| (n) For filing annual statement by a farm mutual, a | 12 |
| mutual benefit
association, or a burial society, $50.
| 13 |
| (o) For issuing a certificate of authority or
renewal | 14 |
| thereof except to a fraternal benefit society, $200.
| 15 |
| (p) For issuing a certificate of authority or renewal | 16 |
| thereof to a
fraternal benefit society, $100.
| 17 |
| (q) For issuing an amended certificate of authority, | 18 |
| $50.
| 19 |
| (r) For each certified copy of certificate of | 20 |
| authority, $20.
| 21 |
| (s) For each certificate of deposit, or valuation, or | 22 |
| compliance
or surety certificate, $20.
| 23 |
| (t) For copies of papers or records per page, $1.
| 24 |
| (u) For each certification to copies
of papers or | 25 |
| records, $10.
| 26 |
| (v) For multiple copies of documents or certificates | 27 |
| listed in
subparagraphs (r), (s), and (u) of paragraph (1) | 28 |
| of this Section, $10 for
the first copy of a certificate of | 29 |
| any type and $5 for each additional copy
of the same | 30 |
| certificate requested at the same time, unless, pursuant to
| 31 |
| paragraph (2) of this Section, the Director finds these | 32 |
| additional fees
excessive.
| 33 |
| (w) For issuing a permit to sell shares or increase | 34 |
| paid-up
capital:
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09300SB2404ham001 |
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LRB093 20536 AMC 51691 a |
|
| 1 |
| (i) in connection with a public stock offering, | 2 |
| $300;
| 3 |
| (ii) in any other case, $100.
| 4 |
| (x) For issuing any other certificate required or | 5 |
| permissible
under the law, $50.
| 6 |
| (y) For filing a plan of exchange of the stock of a | 7 |
| domestic
stock insurance company, a plan of | 8 |
| demutualization of a domestic
mutual company, or a plan of | 9 |
| reorganization under Article XII, $2,000.
| 10 |
| (z) For filing a statement of acquisition of a
domestic | 11 |
| company as defined in Section 131.4 of this Code, $2,000.
| 12 |
| (aa) For filing an agreement to purchase the business | 13 |
| of an
organization authorized under the Dental Service Plan | 14 |
| Act
or the Voluntary Health Services Plans Act or
of a | 15 |
| health maintenance
organization or a limited health | 16 |
| service organization, $2,000.
| 17 |
| (bb) For filing a statement of acquisition of a foreign | 18 |
| or alien
insurance company as defined in Section 131.12a of | 19 |
| this Code, $1,000.
| 20 |
| (cc) For filing a registration statement as required in | 21 |
| Sections 131.13
and 131.14, the notification as required by | 22 |
| Sections 131.16,
131.20a, or 141.4, or an
agreement or | 23 |
| transaction required by Sections 124.2(2), 141, 141a, or
| 24 |
| 141.1, $200.
| 25 |
| (dd) For filing an application for licensing of:
| 26 |
| (i) a religious or charitable risk pooling trust or | 27 |
| a workers'
compensation pool, $1,000;
| 28 |
| (ii) a workers' compensation service company, | 29 |
| $500;
| 30 |
| (iii) a self-insured automobile fleet, $200; or
| 31 |
| (iv) a renewal of or amendment of any license | 32 |
| issued pursuant to (i),
(ii), or (iii) above, $100.
| 33 |
| (ee) For filing articles of incorporation for a | 34 |
| syndicate to engage in
the business of insurance through |
|
|
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09300SB2404ham001 |
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LRB093 20536 AMC 51691 a |
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| 1 |
| the Illinois Insurance Exchange, $2,000.
| 2 |
| (ff) For filing amended articles of incorporation for a | 3 |
| syndicate engaged
in the business of insurance through the | 4 |
| Illinois Insurance Exchange, $100.
| 5 |
| (gg) For filing articles of incorporation for a limited | 6 |
| syndicate to
join with other subscribers or limited | 7 |
| syndicates to do business through
the Illinois Insurance | 8 |
| Exchange, $1,000.
| 9 |
| (hh) For filing amended articles of incorporation for a | 10 |
| limited
syndicate to do business through the Illinois | 11 |
| Insurance Exchange, $100.
| 12 |
| (ii) For a permit to solicit subscriptions to a | 13 |
| syndicate
or limited syndicate, $100.
| 14 |
| (jj) For the filing of each form as required in Section | 15 |
| 143 of this
Code, $50 per form. The fee for advisory and | 16 |
| rating
organizations shall be $200 per form.
| 17 |
| (i) For the purposes of the form filing fee, | 18 |
| filings made on insert page
basis will be considered | 19 |
| one form at the time of its original submission.
| 20 |
| Changes made to a form subsequent to its approval shall | 21 |
| be considered a
new filing.
| 22 |
| (ii) Only one fee shall be charged for a form, | 23 |
| regardless of the number
of other forms or policies | 24 |
| with which it will be used.
| 25 |
| (iii) (Blank).
Fees charged for a policy filed as | 26 |
| it will be issued regardless of
the number of forms | 27 |
| comprising that policy shall not exceed $1,000
or | 28 |
| $2,000
for advisory or rating organizations.
| 29 |
| (iv) The Director may by rule exempt forms from | 30 |
| such fees.
| 31 |
| (kk) For filing an application for licensing of a | 32 |
| reinsurance
intermediary, $500.
| 33 |
| (ll) For filing an application for renewal of a license | 34 |
| of a reinsurance
intermediary, $200.
|
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09300SB2404ham001 |
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LRB093 20536 AMC 51691 a |
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| 1 |
| (2) When printed copies or numerous copies of the same | 2 |
| paper or records
are furnished or certified, the Director may | 3 |
| reduce such fees for copies
if he finds them excessive. He may, | 4 |
| when he considers it in the public
interest, furnish without | 5 |
| charge to state insurance departments and persons
other than | 6 |
| companies, copies or certified copies of reports of | 7 |
| examinations
and of other papers and records.
| 8 |
| (3) The expenses incurred in any performance
examination | 9 |
| authorized by law shall be paid by the company or person being
| 10 |
| examined. The charge shall be reasonably related to the cost of | 11 |
| the
examination including but not limited to compensation of | 12 |
| examiners,
electronic data processing costs, supervision and | 13 |
| preparation of an
examination report and lodging and travel | 14 |
| expenses.
All lodging and travel expenses shall be in accord
| 15 |
| with the applicable travel regulations as published by the | 16 |
| Department of
Central Management Services and approved by the | 17 |
| Governor's Travel Control
Board, except that out-of-state | 18 |
| lodging and travel expenses related to
examinations authorized | 19 |
| under Section 132 shall be in accordance with
travel rates | 20 |
| prescribed under paragraph 301-7.2 of the Federal Travel
| 21 |
| Regulations, 41 C.F.R. 301-7.2, for reimbursement of | 22 |
| subsistence expenses
incurred during official travel. All | 23 |
| lodging and travel expenses may be reimbursed directly upon | 24 |
| authorization of the
Director. With the exception of the
direct | 25 |
| reimbursements authorized by the
Director, all performance | 26 |
| examination charges collected by the
Department shall be paid
| 27 |
| to the Insurance Producers Administration Fund,
however, the | 28 |
| electronic data processing costs
incurred by the Department in | 29 |
| the performance of any examination shall be
billed directly to | 30 |
| the company being examined for payment to the
Statistical | 31 |
| Services Revolving Fund.
| 32 |
| (4) At the time of any service of process on the Director
| 33 |
| as attorney for such service, the Director shall charge and | 34 |
| collect the
sum of $20, which may be recovered as taxable costs |
|
|
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09300SB2404ham001 |
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LRB093 20536 AMC 51691 a |
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| by
the party to the suit or action causing such service to be | 2 |
| made if he prevails
in such suit or action.
| 3 |
| (5) (a) The costs incurred by the Department of Insurance
| 4 |
| in conducting any hearing authorized by law shall be assessed | 5 |
| against the
parties to the hearing in such proportion as the | 6 |
| Director of Insurance may
determine upon consideration of all | 7 |
| relevant circumstances including: (1)
the nature of the | 8 |
| hearing; (2) whether the hearing was instigated by, or
for the | 9 |
| benefit of a particular party or parties; (3) whether there is | 10 |
| a
successful party on the merits of the proceeding; and (4) the | 11 |
| relative levels
of participation by the parties.
| 12 |
| (b) For purposes of this subsection (5) costs incurred | 13 |
| shall
mean the hearing officer fees, court reporter fees, and | 14 |
| travel expenses
of Department of Insurance officers and | 15 |
| employees; provided however, that
costs incurred shall not | 16 |
| include hearing officer fees or court reporter
fees unless the | 17 |
| Department has retained the services of independent
| 18 |
| contractors or outside experts to perform such functions.
| 19 |
| (c) The Director shall make the assessment of costs | 20 |
| incurred as part of
the final order or decision arising out of | 21 |
| the proceeding; provided, however,
that such order or decision | 22 |
| shall include findings and conclusions in support
of the | 23 |
| assessment of costs. This subsection (5) shall not be construed | 24 |
| as
permitting the payment of travel expenses unless calculated | 25 |
| in accordance
with the applicable travel regulations of the | 26 |
| Department
of Central Management Services, as approved by the | 27 |
| Governor's Travel Control
Board. The Director as part of such | 28 |
| order or decision shall require all
assessments for hearing | 29 |
| officer fees and court reporter fees, if any, to
be paid | 30 |
| directly to the hearing officer or court reporter by the | 31 |
| party(s)
assessed for such costs. The assessments for travel | 32 |
| expenses of Department
officers and employees shall be | 33 |
| reimbursable to the
Director of Insurance for
deposit to the | 34 |
| fund out of which those expenses had been paid.
|
|
|
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09300SB2404ham001 |
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LRB093 20536 AMC 51691 a |
|
| 1 |
| (d) The provisions of this subsection (5) shall apply in | 2 |
| the case of any
hearing conducted by the Director of Insurance | 3 |
| not otherwise specifically
provided for by law.
| 4 |
| (6) The Director shall charge and collect an annual | 5 |
| financial
regulation fee from every domestic company for | 6 |
| examination and analysis of
its financial condition and to fund | 7 |
| the internal costs and expenses of the
Interstate Insurance | 8 |
| Receivership Commission as may be allocated to the State
of | 9 |
| Illinois and companies doing an insurance business in this | 10 |
| State pursuant to
Article X of the Interstate Insurance | 11 |
| Receivership Compact. The fee shall be
the greater fixed amount | 12 |
| based upon
the combination of nationwide direct premium income | 13 |
| and
nationwide reinsurance
assumed premium
income or upon | 14 |
| admitted assets calculated under this subsection as follows:
| 15 |
| (a) Combination of nationwide direct premium income | 16 |
| and
nationwide reinsurance assumed premium.
| 17 |
| (i) $150, if the premium is less than $500,000 and | 18 |
| there is
no
reinsurance assumed premium;
| 19 |
| (ii) $750, if the premium is $500,000 or more, but | 20 |
| less
than $5,000,000
and there is no reinsurance | 21 |
| assumed premium; or if the premium is less than
| 22 |
| $5,000,000 and the reinsurance assumed premium is less | 23 |
| than $10,000,000;
| 24 |
| (iii) $3,750, if the premium is less than | 25 |
| $5,000,000 and
the reinsurance
assumed premium is | 26 |
| $10,000,000 or more;
| 27 |
| (iv) $7,500, if the premium is $5,000,000 or more, | 28 |
| but
less than
$10,000,000;
| 29 |
| (v) $18,000, if the premium is $10,000,000 or more, | 30 |
| but
less than $25,000,000;
| 31 |
| (vi) $22,500, if the premium is $25,000,000 or | 32 |
| more, but
less
than $50,000,000;
| 33 |
| (vii) $30,000, if the premium is $50,000,000 or | 34 |
| more,
but less than $100,000,000;
|
|
|
|
09300SB2404ham001 |
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LRB093 20536 AMC 51691 a |
|
| 1 |
| (viii) $37,500, if the premium is $100,000,000 or | 2 |
| more.
| 3 |
| (b) Admitted assets.
| 4 |
| (i) $150, if admitted assets are less than | 5 |
| $1,000,000;
| 6 |
| (ii) $750, if admitted assets are $1,000,000 or | 7 |
| more, but
less than
$5,000,000;
| 8 |
| (iii) $3,750, if admitted assets are $5,000,000 or | 9 |
| more,
but less than
$25,000,000;
| 10 |
| (iv) $7,500, if admitted assets are $25,000,000 or | 11 |
| more,
but less than
$50,000,000;
| 12 |
| (v) $18,000, if admitted assets are $50,000,000 or | 13 |
| more,
but less than
$100,000,000;
| 14 |
| (vi) $22,500, if admitted assets are $100,000,000 | 15 |
| or
more, but less
than $500,000,000;
| 16 |
| (vii) $30,000, if admitted assets are $500,000,000 | 17 |
| or
more, but less
than $1,000,000,000;
| 18 |
| (viii) $37,500, if admitted assets are | 19 |
| $1,000,000,000
or more.
| 20 |
| (c) The sum of financial regulation fees charged to the | 21 |
| domestic
companies of the same affiliated group shall not | 22 |
| exceed $250,000
in the aggregate in any single year and | 23 |
| shall be billed by the Director to
the member company | 24 |
| designated by the
group.
| 25 |
| (7) The Director shall charge and collect an annual | 26 |
| financial regulation
fee from every foreign or alien company, | 27 |
| except fraternal benefit
societies, for the
examination and | 28 |
| analysis of its financial condition and to fund the internal
| 29 |
| costs and expenses of the Interstate Insurance Receivership | 30 |
| Commission as may
be allocated to the State of Illinois and | 31 |
| companies doing an insurance business
in this State pursuant to | 32 |
| Article X of the Interstate Insurance Receivership
Compact.
The | 33 |
| fee shall be a fixed amount based upon Illinois direct premium | 34 |
| income
and nationwide reinsurance assumed premium income in |
|
|
|
09300SB2404ham001 |
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LRB093 20536 AMC 51691 a |
|
| 1 |
| accordance with the
following schedule:
| 2 |
| (a) $150, if the premium is less than $500,000 and | 3 |
| there is
no
reinsurance assumed premium;
| 4 |
| (b) $750, if the premium is $500,000 or more, but less | 5 |
| than
$5,000,000
and there is no reinsurance assumed | 6 |
| premium;
or if the premium is less than $5,000,000 and the | 7 |
| reinsurance assumed
premium is less than $10,000,000;
| 8 |
| (c) $3,750, if the premium is less than $5,000,000 and | 9 |
| the
reinsurance
assumed premium is $10,000,000 or more;
| 10 |
| (d) $7,500, if the premium is $5,000,000 or more, but | 11 |
| less
than
$10,000,000;
| 12 |
| (e) $18,000, if the premium is $10,000,000 or more, but
| 13 |
| less than
$25,000,000;
| 14 |
| (f) $22,500, if the premium is $25,000,000 or more, but
| 15 |
| less than
$50,000,000;
| 16 |
| (g) $30,000, if the premium is $50,000,000 or more, but
| 17 |
| less than
$100,000,000;
| 18 |
| (h) $37,500, if the premium is $100,000,000 or more.
| 19 |
| The sum of financial regulation fees under this subsection | 20 |
| (7)
charged to the foreign or alien companies within the same | 21 |
| affiliated group
shall not exceed $250,000 in the aggregate in | 22 |
| any single year
and shall be
billed by the Director to the | 23 |
| member company designated by the group.
| 24 |
| (8) Beginning January 1, 1992, the financial regulation | 25 |
| fees imposed
under subsections (6) and (7)
of this Section | 26 |
| shall be paid by each company or domestic affiliated group
| 27 |
| annually. After January
1, 1994, the fee shall be billed by | 28 |
| Department invoice
based upon the company's
premium income or | 29 |
| admitted assets as shown in its annual statement for the
| 30 |
| preceding calendar year. The invoice is due upon
receipt and | 31 |
| must be paid no later than June 30 of each calendar year. All
| 32 |
| financial
regulation fees collected by the Department shall be | 33 |
| paid to the Insurance
Financial Regulation Fund. The Department | 34 |
| may not collect financial
examiner per diem charges from |
|
|
|
09300SB2404ham001 |
- 20 - |
LRB093 20536 AMC 51691 a |
|
| 1 |
| companies subject to subsections (6) and (7)
of this Section | 2 |
| undergoing financial examination
after June 30, 1992.
| 3 |
| (9) In addition to the financial regulation fee required by | 4 |
| this
Section, a company undergoing any financial examination | 5 |
| authorized by law
shall pay the following costs and expenses | 6 |
| incurred by the Department:
electronic data processing costs, | 7 |
| the expenses authorized under Section 131.21
and
subsection (d) | 8 |
| of Section 132.4 of this Code, and lodging and travel expenses.
| 9 |
| Electronic data processing costs incurred by the | 10 |
| Department in the
performance of any examination shall be | 11 |
| billed directly to the company
undergoing examination for | 12 |
| payment to the Statistical Services Revolving
Fund. Except for | 13 |
| direct reimbursements authorized by the Director or
direct | 14 |
| payments made under Section 131.21 or subsection (d) of Section
| 15 |
| 132.4 of this Code, all financial regulation fees and all | 16 |
| financial
examination charges collected by the Department | 17 |
| shall be paid to the
Insurance Financial Regulation Fund.
| 18 |
| All lodging and travel expenses shall be in accordance with | 19 |
| applicable
travel regulations published by the Department of | 20 |
| Central Management
Services and approved by the Governor's | 21 |
| Travel Control Board, except that
out-of-state lodging and | 22 |
| travel expenses related to examinations authorized
under | 23 |
| Sections 132.1 through 132.7 shall be in accordance
with travel | 24 |
| rates prescribed
under paragraph 301-7.2 of the Federal Travel | 25 |
| Regulations, 41 C.F.R. 301-7.2,
for reimbursement of | 26 |
| subsistence expenses incurred during official travel.
All | 27 |
| lodging and travel expenses may be
reimbursed directly upon the | 28 |
| authorization of the Director.
| 29 |
| In the case of an organization or person not subject to the | 30 |
| financial
regulation fee, the expenses incurred in any | 31 |
| financial examination authorized
by law shall be paid by the | 32 |
| organization or person being examined. The charge
shall be | 33 |
| reasonably related to the cost of the examination including, | 34 |
| but not
limited to, compensation of examiners and other costs |
|
|
|
09300SB2404ham001 |
- 21 - |
LRB093 20536 AMC 51691 a |
|
| 1 |
| described in this
subsection.
| 2 |
| (10) Any company, person, or entity failing to make any | 3 |
| payment of $150
or more as required under this Section shall be | 4 |
| subject to the penalty and
interest provisions provided for in | 5 |
| subsections (4) and (7)
of Section 412.
| 6 |
| (11) Unless otherwise specified, all of the fees collected | 7 |
| under this
Section shall be paid into the Insurance Financial | 8 |
| Regulation Fund.
| 9 |
| (12) For purposes of this Section:
| 10 |
| (a) "Domestic company" means a company as defined in | 11 |
| Section 2 of this
Code which is incorporated or organized | 12 |
| under the laws of this State, and in
addition includes a | 13 |
| not-for-profit corporation authorized under the Dental
| 14 |
| Service Plan Act or the Voluntary Health
Services Plans | 15 |
| Act, a health maintenance organization, and a
limited
| 16 |
| health service organization.
| 17 |
| (b) "Foreign company" means a company as defined in | 18 |
| Section 2 of this
Code which is incorporated or organized | 19 |
| under the laws of any state of the
United States other than | 20 |
| this State and in addition includes a health
maintenance | 21 |
| organization and a limited health service organization | 22 |
| which is
incorporated or organized under the laws
of any | 23 |
| state of the United States other than this State.
| 24 |
| (c) "Alien company" means a company as defined in | 25 |
| Section 2 of this Code
which is incorporated or organized | 26 |
| under the laws of any country other than
the United States.
| 27 |
| (d) "Fraternal benefit society" means a corporation, | 28 |
| society, order,
lodge or voluntary association as defined | 29 |
| in Section 282.1 of this
Code.
| 30 |
| (e) "Mutual benefit association" means a company, | 31 |
| association or
corporation authorized by the Director to do | 32 |
| business in this State under
the provisions of Article | 33 |
| XVIII of this Code.
| 34 |
| (f) "Burial society" means a person, firm, |
|
|
|
09300SB2404ham001 |
- 22 - |
LRB093 20536 AMC 51691 a |
|
| 1 |
| corporation, society or
association of individuals | 2 |
| authorized by the Director to do business in
this State | 3 |
| under the provisions of Article XIX of this Code.
| 4 |
| (g) "Farm mutual" means a district, county and township | 5 |
| mutual insurance
company authorized by the Director to do | 6 |
| business in this State under the
provisions of the Farm | 7 |
| Mutual Insurance Company Act of 1986.
| 8 |
| (Source: P.A. 93-32, eff. 7-1-03.)
| 9 |
| Section 99. Effective date. This Act takes effect upon | 10 |
| becoming law.".
|
|