Full Text of HB4602 95th General Assembly
HB4602sam001 95TH GENERAL ASSEMBLY
|
Sen. William R. Haine
Filed: 5/13/2008
|
|
09500HB4602sam001 |
|
LRB095 16742 RPM 50776 a |
|
| 1 |
| AMENDMENT TO HOUSE BILL 4602
| 2 |
| AMENDMENT NO. ______. Amend House Bill 4602 by replacing | 3 |
| line 23 on page 3 and line 1 on page 4 with the following:
| 4 |
| "Section 25. The Illinois Insurance Code is amended by | 5 |
| changing Section 136 and by adding Section 356z.11 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 | 9 |
| or accredited by
this State shall file with the Director by | 10 |
| March 1st in each year 2 copies of
its financial statement for | 11 |
| the year ending December 31st immediately preceding
on forms | 12 |
| prescribed by the Director, which shall conform substantially | 13 |
| to the
form of statement adopted by the National Association of | 14 |
| Insurance
Commissioners. Unless the Director provides | 15 |
| otherwise, the annual statement is
to be prepared in accordance | 16 |
| with the annual statement instructions and the
Accounting |
|
|
|
09500HB4602sam001 |
- 2 - |
LRB095 16742 RPM 50776 a |
|
| 1 |
| Practices and Procedures Manual adopted by the National | 2 |
| Association
of Insurance Commissioners. The Director shall | 3 |
| have power to make such
modifications and additions in this | 4 |
| form as he may deem desirable
or necessary to ascertain the | 5 |
| condition and affairs of the company. The
Director shall have | 6 |
| authority to extend the time for filing any statement by
any | 7 |
| company for reasons which he considers good and sufficient. In | 8 |
| every
statement the admitted assets shall be shown at the | 9 |
| actual values as of the
last day of the preceding year, in | 10 |
| accordance with Section 126.7.
The statement
shall be verified | 11 |
| by oaths of the president and secretary of the company or, in
| 12 |
| their absence, by 2 other principal officers. In addition, any | 13 |
| company may be
required by the Director, when he considers that | 14 |
| action to be necessary and
appropriate for the protection of | 15 |
| policyholders, creditors, shareholders, or
claimants, to file, | 16 |
| within 60 days after mailing to the company a notice that
such | 17 |
| is required, a supplemental summary statement as of the last | 18 |
| day of any
calendar month occurring during the 100 days next | 19 |
| preceding the mailing of such
notice designated by him on forms | 20 |
| prescribed and furnished by the Director. The
Director may | 21 |
| require supplemental summary statements to be certified by an
| 22 |
| independent actuary deemed competent by the Director or by an | 23 |
| independent
certified public accountant.
| 24 |
| (2) The statement of an alien company shall embrace only | 25 |
| its
condition and transactions in the United States and shall | 26 |
| be verified by
the oaths of its resident manager or principal |
|
|
|
09500HB4602sam001 |
- 3 - |
LRB095 16742 RPM 50776 a |
|
| 1 |
| representative in the
United States, except that in the case of | 2 |
| any life company organized
under the laws of Canada or any | 3 |
| province thereof, the statement may be
verified by the oaths of | 4 |
| any of its principal officers designated for
that purpose by | 5 |
| its board of directors.
| 6 |
| (3) For the information of the public generally the | 7 |
| Director shall
cause an abstract of the information contained | 8 |
| in the annual statement
to be made available to the public as | 9 |
| soon as practicable after filing
with the Department, by | 10 |
| printing those abstracts in pamphlet tabular form
for free | 11 |
| general distribution by the Department, or by such other
| 12 |
| publication in the city of Springfield or in the city of | 13 |
| Chicago as may
be reasonably necessary more fully to inform the | 14 |
| public of the financial
condition of companies transacting | 15 |
| business in this State.
| 16 |
| (4) Each domestic, foreign, and alien insurer authorized to
| 17 |
| do business in this State or accredited by this State shall | 18 |
| participate
in the National Association of Insurance | 19 |
| Commissioners' Insurance Regulatory
Information System, | 20 |
| including the payment of all fees and charges of the
system. | 21 |
| Each company shall, on or before March 1 of each year, file | 22 |
| with the
National Association of Insurance Commissioners a copy | 23 |
| of its annual financial
statement along with any additional | 24 |
| filings prescribed by the Director for the
preceding year. The | 25 |
| statement filed with the National Association of Insurance
| 26 |
| Commissioners shall be in the same format and scope as that |
|
|
|
09500HB4602sam001 |
- 4 - |
LRB095 16742 RPM 50776 a |
|
| 1 |
| required by this
Code and shall include a signed jurat page and | 2 |
| actuarial certification. Any
amendments and addendums to the | 3 |
| annual statement shall also be filed with the
National | 4 |
| Association of Insurance Commissioners. Each company shall | 5 |
| also file
with the National Association of Insurance | 6 |
| Commissioners annual and quarterly
financial statement | 7 |
| information in computer readable format as required by the
| 8 |
| Insurance Regulatory Information System.
Failure of a company | 9 |
| to file financial statement information in computer
readable | 10 |
| format shall subject the company to the provisions of Section | 11 |
| 139.
| 12 |
| (5) All financial analysis ratios and examination synopsis | 13 |
| concerning
insurance companies that are submitted to the | 14 |
| Director by the National
Association of Insurance | 15 |
| Commissioners' Insurance Regulatory Information
System are | 16 |
| confidential and may not be disclosed by the Director.
| 17 |
| (6) Every property and casualty insurance company doing | 18 |
| business in this State, unless otherwise exempted by the | 19 |
| Director, shall annually submit the opinion of an appointed | 20 |
| actuary entitled "Statement of Actuarial Opinion". This | 21 |
| opinion shall be filed in accordance with the appropriate | 22 |
| National Association of Insurance Commissioners Property and | 23 |
| Casualty Annual Statement Instructions. | 24 |
| (a) Every property and casualty insurance company | 25 |
| domiciled in this State that is required to submit a | 26 |
| Statement of Actuarial Opinion shall annually submit an |
|
|
|
09500HB4602sam001 |
- 5 - |
LRB095 16742 RPM 50776 a |
|
| 1 |
| Actuarial Opinion Summary, written by the company's | 2 |
| appointed actuary. This Actuarial Opinion Summary shall be | 3 |
| filed in accordance with the appropriate National | 4 |
| Association of Insurance Commissioners Property and | 5 |
| Casualty Annual Statement Instructions and shall be | 6 |
| considered as a document supporting the Actuarial Opinion | 7 |
| required in this subsection (6). Each foreign and alien | 8 |
| property and casualty company authorized to do business in | 9 |
| this State shall provide the Actuarial Opinion Summary upon | 10 |
| request. | 11 |
| (b) An Actuarial Report and underlying workpapers as | 12 |
| required by the appropriate National Association of | 13 |
| Insurance Commissioners Property and Casualty Annual | 14 |
| Statement Instructions shall be prepared to support each | 15 |
| Actuarial Opinion. If the insurance company fails to | 16 |
| provide a supporting Actuarial Report or workpapers or both | 17 |
| at the request of the Director of the Division of Insurance | 18 |
| or the Director determines that the supporting Actuarial | 19 |
| Report or workpapers provided by the insurance company is | 20 |
| otherwise unacceptable to the Director, the Director may | 21 |
| engage a qualified actuary at the expense of the company to | 22 |
| review the opinion and the basis for the opinion and | 23 |
| prepare the supporting Actuarial Report or workpapers. | 24 |
| (c) The appointed actuary shall not be liable for | 25 |
| damages to any person (other than the insurance company and | 26 |
| the Director) for any act, error, omission, decision, or |
|
|
|
09500HB4602sam001 |
- 6 - |
LRB095 16742 RPM 50776 a |
|
| 1 |
| conduct with respect to the actuary's opinion, except in | 2 |
| cases of fraud or willful misconduct on the part of the | 3 |
| appointed actuary. | 4 |
| (d) The Statement of Actuarial Opinion shall be | 5 |
| provided with the Annual Statement in accordance with the | 6 |
| appropriate National Association of Insurance | 7 |
| Commissioners Property and Casualty Annual Statement | 8 |
| Instructions and shall be treated as a public document. | 9 |
| Documents, materials, or other information in the | 10 |
| possession or control of the Director that are considered | 11 |
| an Actuarial Report, workpapers, or Actuarial Opinion | 12 |
| Summary provided in support of the opinion, and any other | 13 |
| material provided by the company to the Director in | 14 |
| connection with the Actuarial Report, workpapers, or | 15 |
| Actuarial Opinion Summary, must be given confidential | 16 |
| treatment, are not subject to subpoena, and may not be made | 17 |
| public by the Director or any other persons. This paragraph | 18 |
| (d) shall not be construed to limit the Director's | 19 |
| authority to release the documents to the Actuarial Board | 20 |
| for Counseling and Discipline (ABCD), so long as the | 21 |
| material is required for the purpose of professional | 22 |
| disciplinary proceedings and that the ABCD establishes | 23 |
| procedures satisfactory to the Director for preserving the | 24 |
| confidentiality of the documents, nor shall this paragraph | 25 |
| (d) be construed to limit the Director's authority to use | 26 |
| the documents, materials or other information in |
|
|
|
09500HB4602sam001 |
- 7 - |
LRB095 16742 RPM 50776 a |
|
| 1 |
| furtherance of any regulatory or legal action brought as | 2 |
| part of the Director's official duties. Neither the | 3 |
| Director nor any person who received documents, materials, | 4 |
| or other information while acting under the authority of | 5 |
| the Director shall be permitted or required to testify in | 6 |
| any private civil action concerning any confidential | 7 |
| documents, materials, or information subject to this | 8 |
| subsection (6). Except where another provision of this Code | 9 |
| expressly prohibits a disclosure of confidential | 10 |
| information to the specific officials or organizations | 11 |
| described in this subsection, the Director may: | 12 |
| (i) share documents, materials, or other | 13 |
| information, including the confidential and privileged | 14 |
| documents, materials, or information subject to this | 15 |
| paragraph (d) with the insurance department of any | 16 |
| other state or country or with law enforcement | 17 |
| officials of this or any other state or agency of the | 18 |
| federal government at any time, as long as the agency | 19 |
| or office receiving the document, material, or other | 20 |
| information agrees in writing to hold it confidential | 21 |
| and in a manner consistent with this Code; | 22 |
| (ii) receive documents, materials, or information, | 23 |
| including otherwise confidential and privileged | 24 |
| documents, materials, or information, from the | 25 |
| National Association of Insurance Commissioners and | 26 |
| its affiliates and subsidiaries, and from regulatory |
|
|
|
09500HB4602sam001 |
- 8 - |
LRB095 16742 RPM 50776 a |
|
| 1 |
| and law enforcement officials of other foreign or | 2 |
| domestic jurisdictions, and shall maintain as | 3 |
| confidential or privileged any document, material, or | 4 |
| information received with notice or the understanding | 5 |
| that it is confidential or privileged under the laws of | 6 |
| the jurisdiction that is the source of the document, | 7 |
| material, or information; and | 8 |
| (iii) enter into agreements governing sharing and | 9 |
| use of information consistent with paragraph (d). | 10 |
| (e) No waiver of any applicable privilege or claim of | 11 |
| confidentiality in the documents, materials or information | 12 |
| shall occur as a result of disclosure to the Director under | 13 |
| this Section or as a result of sharing as authorized in | 14 |
| subparagraphs (i), (ii), and (iii) of paragraph (d) of | 15 |
| subsection (6) of this Section. | 16 |
| All 2008 Annual Statements, which are filed in 2009, | 17 |
| and all subsequent Annual Statement filings shall be done | 18 |
| in accordance with subsection (6) of this Section. | 19 |
| (Source: P.A. 90-418, eff. 8-15-97.)".
|
|