Full Text of HB2494 94th General Assembly
HB2494 94TH GENERAL ASSEMBLY
|
|
|
94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB2494
Introduced 2/17/2005, by Rep. Mark H. Beaubien, Jr. SYNOPSIS AS INTRODUCED: |
|
215 ILCS 5/132 |
from Ch. 73, par. 744 |
|
Amends the Illinois Insurance Code. Makes a technical change in a Section concerning market conduct and non-financial examinations.
|
| |
|
|
A BILL FOR
|
|
|
|
|
HB2494 |
|
LRB094 07734 LJB 37912 b |
|
| 1 |
| AN ACT concerning regulation.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Section 132 as follows:
| 6 |
| (215 ILCS 5/132) (from Ch. 73, par. 744)
| 7 |
| Sec. 132. Market conduct and non-financial examinations.
| 8 |
| (1) The
The Director, for the purposes of ascertaining the
| 9 |
| non-financial business practices, performance, and operations | 10 |
| of any
company, may make
examinations of:
| 11 |
| (a) any company transacting or being organized to | 12 |
| transact business
in this State;
| 13 |
| (b) any person engaged in or proposing to be engaged in | 14 |
| the
organization, promotion, or solicitation of shares or | 15 |
| capital
contributions to or aiding in the formation of a | 16 |
| company;
| 17 |
| (c) any person having a contract, written or oral, | 18 |
| pertaining to the
management or control of a company as | 19 |
| general agent, managing agent, or
attorney-in-fact;
| 20 |
| (d) any licensed or registered
producer, firm, or | 21 |
| administrator, or any person,
organization, or corporation | 22 |
| making application for any
licenses or registration;
| 23 |
| (e) any person engaged in the business of adjusting | 24 |
| losses or
financing premiums; or
| 25 |
| (f) any person, organization, trust, or corporation | 26 |
| having custody or
control of information reasonably | 27 |
| related to the operation, performance, or
conduct of a | 28 |
| company or person subject to the jurisdiction of the | 29 |
| Director.
| 30 |
| (2) Every company or person being examined and its | 31 |
| officers, directors,
and agents must provide to the Director | 32 |
| convenient and free access at
all reasonable hours at its |
|
|
|
HB2494 |
- 2 - |
LRB094 07734 LJB 37912 b |
|
| 1 |
| office or location to all books, records,
documents, and any or | 2 |
| all papers relating to the
business, performance, operations, | 3 |
| and affairs of the company. The
officers, directors, and
agents | 4 |
| of the company or person must facilitate the examination and | 5 |
| aid
in the examination so far as it is in their power to do so.
| 6 |
| The Director and any authorized examiner have the power to | 7 |
| administer
oaths and examine under oath
any person relative to | 8 |
| the business of the company being examined.
| 9 |
| (3) The examiners designated by the Director under Section | 10 |
| 402 must
make a full and true report of every examination made | 11 |
| by them, which
contains only facts ascertained from the books, | 12 |
| papers, records, or documents,
and other evidence obtained by | 13 |
| investigation
and examined by them or ascertained from the | 14 |
| testimony of officers or
agents or other persons examined under | 15 |
| oath concerning the business,
affairs, conduct, and | 16 |
| performance of the
company or person. The report of
examination | 17 |
| must be verified by the oath of the examiner in charge
thereof, | 18 |
| and when so verified is prima facie evidence in any action or
| 19 |
| proceeding in the
name of the State against the company, its | 20 |
| officers, or agents upon the
facts stated therein.
| 21 |
| (4) The Director must notify the company or person made the | 22 |
| subject of
any examination hereunder of the
contents of the | 23 |
| verified examination report before filing it and making the
| 24 |
| report public of any matters relating thereto, and must afford | 25 |
| the
company or person an opportunity to demand a hearing with | 26 |
| reference to
the facts and other evidence therein contained.
| 27 |
| The company or person may request a hearing within 10 days | 28 |
| after
receipt of the examination report by giving the Director | 29 |
| written notice
of that request, together with a statement of | 30 |
| its objections. The
Director must then conduct a hearing in | 31 |
| accordance with Sections 402 and
403. He must issue a written | 32 |
| order based upon the examination report and
upon the hearing | 33 |
| within 90 days after the report is filed or within 90
days | 34 |
| after the hearing.
| 35 |
| If the examination reveals that the company is operating in | 36 |
| violation
of any law, regulation, or prior order, the Director |
|
|
|
HB2494 |
- 3 - |
LRB094 07734 LJB 37912 b |
|
| 1 |
| in the written
order may require the company or person to take | 2 |
| any action he considers
necessary or appropriate in accordance | 3 |
| with the report of examination
or any hearing thereon. The | 4 |
| order is subject to judicial review under
the Administrative | 5 |
| Review Law.
The Director may withhold any report from public
| 6 |
| inspection for such time as he may deem proper and may, after | 7 |
| filing the
same, publish any part or all of the report as he | 8 |
| considers to be in the
interest of the public, in one or more | 9 |
| newspapers in this State, without
expense to the company.
| 10 |
| (5) Any company which or person who violates or aids and | 11 |
| abets any
violation of a written order issued under this | 12 |
| Section shall be guilty
of a business offense and may be fined | 13 |
| not more than $5,000. The penalty
shall be paid into the | 14 |
| General Revenue fund of the State of Illinois.
| 15 |
| (Source: P.A. 87-108.)
|
|