Full Text of SB2902 93rd General Assembly
SB2902 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2902
Introduced 2/6/2004, by Susan Garrett SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/155.18 |
from Ch. 73, par. 767.18 |
215 ILCS 5/155.21a new |
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225 ILCS 60/20 |
from Ch. 111, par. 4400-20 |
735 ILCS 5/2-101 |
from Ch. 110, par. 2-101 |
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Amends the Illinois Insurance Code. In provisions pertaining to the rates and rating schedules of companies writing medical liability insurance, provides that if a company's rate filing seeks a rate increase of 10% or more, such a rate increase may not go into effect without
prior approval of the Director of the Department of Insurance. Requires the company to provide the Director with information as the Director deems appropriate to evaluate the company's filing. Provides that if, after a hearing, the Director finds that the rate increase is excessive under standards that shall be adopted by the Director by rule, the Director shall reduce the amount of the rate increase, and the reduced rate shall go into effect. Provides that if, after a hearing, the Director finds that the rate increase is appropriate under those standards, the rate shall go into effect. Requires the Department of Insurance and all medical organizations to disclose and make accessible to the public a listing of all registered and operating medical liability insurance providers in this State including all addresses and telephone numbers and the names of all agents and brokers associated with such providers. Amends the Medical Practice Act of 1987. In provisions pertaining to continuing education, requires risk management training. Amends the Code of Civil Procedure. Provides that every medical malpractice action must be
commenced in the county where the occurrence or incident took place. Effective immediately.
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A BILL FOR
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SB2902 |
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LRB093 21065 SAS 47094 b |
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| AN ACT concerning medical malpractice.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Section 155.18 and by adding Section 155.21a as | 6 |
| follows:
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| (215 ILCS 5/155.18) (from Ch. 73, par. 767.18)
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| Sec. 155.18. (a) This Section shall apply to insurance on | 9 |
| risks based
upon negligence by a physician, hospital or other | 10 |
| health care provider,
referred to herein as medical liability | 11 |
| insurance. This Section shall not
apply to contracts of | 12 |
| reinsurance, nor to any farm, county, district or
township | 13 |
| mutual insurance company transacting business under an Act | 14 |
| entitled
"An Act relating to local mutual district, county and | 15 |
| township insurance
companies", approved March 13, 1936, as now | 16 |
| or hereafter amended, nor to
any such company operating under a | 17 |
| special charter.
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| (b) The following standards shall apply to the making and | 19 |
| use of rates
pertaining to all classes of medical liability | 20 |
| insurance:
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| (1) Rates shall not be excessive or inadequate, as herein | 22 |
| defined, nor
shall they be unfairly discriminatory. No rate | 23 |
| shall be held to be excessive
unless such rate is unreasonably | 24 |
| high for the insurance provided, and a
reasonable degree of | 25 |
| competition does not exist in the area with respect
to the | 26 |
| classification to which such rate is applicable.
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| No rate shall be held inadequate unless it is unreasonably | 28 |
| low for the
insurance provided and continued use of it would | 29 |
| endanger solvency of the company.
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| (2) Consideration shall be given, to the extent applicable, | 31 |
| to past and
prospective loss experience within and outside this | 32 |
| State, to a reasonable
margin for underwriting profit and |
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SB2902 |
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LRB093 21065 SAS 47094 b |
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| contingencies, to past and prospective
expenses both | 2 |
| countrywide and those especially applicable to this State,
and | 3 |
| to all other factors, including judgment factors, deemed | 4 |
| relevant within
and outside this State.
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| Consideration may also be given in the making and use of | 6 |
| rates to dividends,
savings or unabsorbed premium deposits | 7 |
| allowed or returned by companies
to their policyholders, | 8 |
| members or subscribers.
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| (3) The systems of expense provisions included in the rates | 10 |
| for use by
any company or group of companies may differ from | 11 |
| those of other companies
or groups of companies to reflect the | 12 |
| operating methods of any such company
or group with respect to | 13 |
| any kind of insurance, or with respect to any subdivision
or | 14 |
| combination thereof.
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| (4) Risks may be grouped by classifications for the | 16 |
| establishment of rates
and minimum premiums. Classification | 17 |
| rates may be modified to produce
rates for individual risks in | 18 |
| accordance with rating plans which establish
standards for | 19 |
| measuring variations in hazards or expense provisions, or
both. | 20 |
| Such standards may measure any difference among risks that have | 21 |
| a
probable effect upon losses or expenses. Such classifications | 22 |
| or modifications
of classifications of risks may be established | 23 |
| based upon size, expense,
management, individual experience, | 24 |
| location or dispersion of hazard, or
any other reasonable | 25 |
| considerations and shall apply to all risks under the
same or | 26 |
| substantially the same circumstances or conditions. The rate | 27 |
| for
an established classification should be related generally | 28 |
| to the anticipated
loss and expense factors of the class.
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| (c) Every company writing medical liability insurance | 30 |
| shall file with
the Director of Insurance the rates and rating | 31 |
| schedules it uses for medical
liability insurance.
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| (1) This filing shall occur at least annually and as often | 33 |
| as the rates
are changed or amended.
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| (2) For the purposes of this Section any change in premium | 35 |
| to the company's
insureds as a result of a change in the | 36 |
| company's base rates or a change
in its increased limits |
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SB2902 |
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LRB093 21065 SAS 47094 b |
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| factors shall constitute a change in rates and shall
require a | 2 |
| filing with the Director.
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| (3) It shall be certified in such filing by an officer of | 4 |
| the company
and a qualified actuary that the company's rates | 5 |
| are based on sound actuarial
principles and are not | 6 |
| inconsistent with the company's experience.
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| (d) If after a hearing the Director finds:
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| (1) that any rate, rating plan or rating system | 9 |
| violates the provisions
of this Section applicable to it, | 10 |
| he may issue an order to the company which
has been the | 11 |
| subject of the hearing specifying in what respects such | 12 |
| violation
exists and stating when, within a reasonable | 13 |
| period of time, the further
use of such rate or rating | 14 |
| system by such company in contracts of insurance
made | 15 |
| thereafter shall be prohibited;
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| (2) that the violation of any of the provisions of this | 17 |
| Section applicable
to it by any company which has been the | 18 |
| subject of hearing was wilful, he
may suspend or revoke, in | 19 |
| whole or in part, the certificate of authority
of such | 20 |
| company with respect to the class of insurance which has | 21 |
| been the
subject of the hearing.
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| (e) Notwithstanding any other provision of this Section, a | 23 |
| hearing must be held by the Director if a company's filing | 24 |
| seeks a rate increase of 10% or more. Such a rate increase may | 25 |
| not go into effect without
prior approval of the Director. | 26 |
| Before the hearing, the company shall provide to the Director | 27 |
| such information as the Director deems appropriate to evaluate | 28 |
| the company's filing. If, after a hearing, the Director finds | 29 |
| that the rate increase is excessive under standards that shall | 30 |
| be adopted by the Director by rule, the Director shall reduce | 31 |
| the amount of the rate increase and the reduced rate shall go | 32 |
| into effect. If, after a hearing, the Director finds that the | 33 |
| rate increase is appropriate under those standards, the rate | 34 |
| shall go into effect.
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| (Source: P.A. 79-1434.)
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LRB093 21065 SAS 47094 b |
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| (215 ILCS 5/155.21a new) | 2 |
| Sec. 155.21a. Disclosure of medical liability insurance | 3 |
| companies. The Department of Insurance and all medical | 4 |
| organizations must disclose and make accessible to the public a | 5 |
| listing of all registered and operating medical liability | 6 |
| insurance providers in this State including all addresses, | 7 |
| telephone numbers, and the names of all agents and brokers | 8 |
| associated with such providers. | 9 |
| Section 10. The Medical Practice Act of 1987 is amended by | 10 |
| changing Section 20 as follows:
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| (225 ILCS 60/20) (from Ch. 111, par. 4400-20)
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| (Section scheduled to be repealed on January 1, 2007)
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| Sec. 20. Continuing education. The Department shall | 14 |
| promulgate
rules of continuing education for persons licensed | 15 |
| under
this Act that require 150 hours of
continuing education , | 16 |
| including risk management training, per license renewal cycle. | 17 |
| These rules
shall be consistent with
requirements of relevant | 18 |
| professional associations, speciality
societies, or boards. | 19 |
| The rules shall also address variances in part or in
whole for | 20 |
| good cause, including but not limited to illness
or
hardship. | 21 |
| In establishing these rules, the
Department shall consider | 22 |
| educational requirements for
medical staffs, requirements for | 23 |
| specialty society board
certification or for continuing | 24 |
| education requirements as a
condition of membership in | 25 |
| societies representing the 2
categories of licensee under this | 26 |
| Act. These rules shall
assure that licensees are given the | 27 |
| opportunity to
participate in those programs sponsored by or | 28 |
| through their
professional associations or hospitals which are | 29 |
| relevant to
their practice. Each licensee is responsible for | 30 |
| maintaining records of
completion of continuing education and | 31 |
| shall be prepared to produce the
records when requested by the | 32 |
| Department.
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| (Source: P.A. 92-750, eff. 1-1-03.)
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LRB093 21065 SAS 47094 b |
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| Section 15. The Code of Civil Procedure is amended by | 2 |
| changing Section 2-101 as follows:
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| (735 ILCS 5/2-101) (from Ch. 110, par. 2-101)
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| Sec. 2-101. Generally. Except as otherwise provided in this | 5 |
| Act, every action must be
commenced (1) in the county of | 6 |
| residence of any defendant who is joined
in good faith and with | 7 |
| probable cause for the purpose of obtaining a
judgment against | 8 |
| him or her and not solely for the purpose of fixing venue in
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| that county, or (2) in the county in which the transaction or | 10 |
| some part
thereof occurred out of which the cause of action | 11 |
| arose.
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| Except as otherwise provided in this Act, every medical | 13 |
| malpractice action must be
commenced in the county where the | 14 |
| occurrence or incident took place.
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| If a check, draft, money order, or other instrument for the | 16 |
| payment of
child support payable to or delivered to the State | 17 |
| Disbursement Unit
established under Section 10-26 of the | 18 |
| Illinois Public Aid Code is returned by
the bank or depository | 19 |
| for any reason, venue for the enforcement of any
criminal | 20 |
| proceedings or civil cause of action for recovery and attorney | 21 |
| fees
shall be in the county where the principal office of the | 22 |
| State Disbursement
Unit is located.
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| If all defendants are nonresidents of the State, an action | 24 |
| may be
commenced in any county.
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| If the corporate limits of a city, village or town extend | 26 |
| into more
than one county, then the venue of an action or | 27 |
| proceeding
instituted by that
municipality to enforce any fine, | 28 |
| imprisonment, penalty or forfeiture
for violation of any | 29 |
| ordinance of that municipality,
regardless of the county in | 30 |
| which the violation was committed or occurred, may
be in the | 31 |
| appropriate court (i) in the county
wherein the office of the | 32 |
| clerk of the municipality is located
or (ii) in any county
in | 33 |
| which at least 35% of the territory within the municipality's | 34 |
| corporate
limits is located.
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| (Source: P.A. 91-212, eff. 7-20-99.)
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SB2902 |
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LRB093 21065 SAS 47094 b |
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.
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