Full Text of HB1129 97th General Assembly
HB1129eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning insurance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 3. The Illinois Insurance Code is amended by | 5 | | changing Sections 136 and 408 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 submit to file with the | 10 | | Director by March 1st in each year 2 copies of
its financial | 11 | | statement for the year ending December 31st immediately | 12 | | preceding in such manner and in such form as
on forms | 13 | | prescribed by the Director, which shall conform substantially | 14 | | to the
form of statement adopted by the National Association of | 15 | | Insurance
Commissioners. Unless the Director provides | 16 | | otherwise, the annual statement is
to be prepared in accordance | 17 | | with the annual statement instructions and the
Accounting | 18 | | Practices and Procedures Manual adopted by the National | 19 | | Association
of Insurance Commissioners. The Director shall | 20 | | have power to make such
modifications and additions in this | 21 | | form as he may deem desirable
or necessary to ascertain the | 22 | | condition and affairs of the company. The
Director shall have | 23 | | authority to extend the time for filing any statement by
any |
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| 1 | | company for reasons which he considers good and sufficient. In | 2 | | every
statement the admitted assets shall be shown at the | 3 | | actual values as of the
last day of the preceding year, in | 4 | | accordance with Section 126.7.
The statement
shall be verified | 5 | | by oaths of the president and secretary of the company or, in
| 6 | | their absence, by 2 other principal officers. In addition, any | 7 | | company may be
required by the Director, when he considers that | 8 | | action to be necessary and
appropriate for the protection of | 9 | | policyholders, creditors, shareholders, or
claimants, to file, | 10 | | within 60 days after mailing to the company a notice that
such | 11 | | is required, a supplemental summary statement as of the last | 12 | | day of any
calendar month occurring during the 100 days next | 13 | | preceding the mailing of such
notice designated by him on forms | 14 | | prescribed and furnished by the Director. The
Director may | 15 | | require supplemental summary statements to be certified by an
| 16 | | independent actuary deemed competent by the Director or by an | 17 | | independent
certified public accountant.
| 18 | | (2) The statement of an alien company shall embrace only | 19 | | its
condition and transactions in the United States and shall | 20 | | be verified by
the oaths of its resident manager or principal | 21 | | representative in the
United States, except that in the case of | 22 | | any life company organized
under the laws of Canada or any | 23 | | province thereof, the statement may be
verified by the oaths of | 24 | | any of its principal officers designated for
that purpose by | 25 | | its board of directors.
| 26 | | (3) For the information of the public generally the |
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| 1 | | Director shall
cause an abstract of the information contained | 2 | | in the annual statement
to be made available to the public as | 3 | | soon as practicable after filing
with the Department, by | 4 | | printing those abstracts in pamphlet tabular form
for free | 5 | | general distribution by the Department, or by such other
| 6 | | publication in the city of Springfield or in the city of | 7 | | Chicago as may
be reasonably necessary more fully to inform the | 8 | | public of the financial
condition of companies transacting | 9 | | business in this State.
| 10 | | (4) Each domestic, foreign, and alien insurer authorized to
| 11 | | do business in this State or accredited by this State shall | 12 | | participate
in the National Association of Insurance | 13 | | Commissioners' Insurance Regulatory
Information System, | 14 | | including the payment of all fees and charges of the
system. | 15 | | Each company shall, on or before March 1 of each year, file | 16 | | with the
National Association of Insurance Commissioners a copy | 17 | | of its annual financial
statement along with any additional | 18 | | filings prescribed by the Director for the
preceding year. The | 19 | | statement filed with the National Association of Insurance
| 20 | | Commissioners shall be in the same format and scope as that | 21 | | required by this
Code and shall include a signed jurat page and | 22 | | actuarial certification. Any
amendments and addendums to the | 23 | | annual statement shall also be filed with the
National | 24 | | Association of Insurance Commissioners. Each company shall | 25 | | also file
with the National Association of Insurance | 26 | | Commissioners annual and quarterly
financial statement |
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| 1 | | information in computer readable format as required by the
| 2 | | Insurance Regulatory Information System.
Failure of a company | 3 | | to file financial statement information in computer
readable | 4 | | format shall subject the company to the provisions of Section | 5 | | 139.
| 6 | | (5) All financial analysis ratios and examination synopsis | 7 | | concerning
insurance companies that are submitted to the | 8 | | Director by the National
Association of Insurance | 9 | | Commissioners' Insurance Regulatory Information
System are | 10 | | confidential and may not be disclosed by the Director.
| 11 | | (6) Every property and casualty insurance company doing | 12 | | business in this State, unless otherwise exempted by the | 13 | | Director, shall annually submit the opinion of an appointed | 14 | | actuary entitled "Statement of Actuarial Opinion". This | 15 | | opinion shall be filed in accordance with the appropriate | 16 | | National Association of Insurance Commissioners Property and | 17 | | Casualty Annual Statement Instructions. | 18 | | (a) Every property and casualty insurance company | 19 | | domiciled in this State that is required to submit a | 20 | | Statement of Actuarial Opinion shall annually submit an | 21 | | Actuarial Opinion Summary, written by the company's | 22 | | appointed actuary. This Actuarial Opinion Summary shall be | 23 | | filed in accordance with the appropriate National | 24 | | Association of Insurance Commissioners Property and | 25 | | Casualty Annual Statement Instructions and shall be | 26 | | considered as a document supporting the Actuarial Opinion |
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| 1 | | required in this subsection (6). Each foreign and alien | 2 | | property and casualty company authorized to do business in | 3 | | this State shall provide the Actuarial Opinion Summary upon | 4 | | request. | 5 | | (b) An Actuarial Report and underlying workpapers as | 6 | | required by the appropriate National Association of | 7 | | Insurance Commissioners Property and Casualty Annual | 8 | | Statement Instructions shall be prepared to support each | 9 | | Actuarial Opinion. If the insurance company fails to | 10 | | provide a supporting Actuarial Report or workpapers at the | 11 | | request of the Director or the Director determines that the | 12 | | supporting Actuarial Report or workpapers provided by the | 13 | | insurance company is otherwise unacceptable to the | 14 | | Director, the Director may engage a qualified actuary at | 15 | | the expense of the company to review the opinion and the | 16 | | basis for the opinion and prepare the supporting Actuarial | 17 | | Report or workpapers. | 18 | | (c) The appointed actuary shall not be liable for | 19 | | damages to any person (other than the insurance company and | 20 | | the Director) for any act, error, omission, decision, or | 21 | | conduct with respect to the actuary's opinion, except in | 22 | | cases of fraud or willful misconduct on the part of the | 23 | | appointed actuary. | 24 | | (d) The Statement of Actuarial Opinion shall be | 25 | | provided with the Annual Statement in accordance with the | 26 | | appropriate National Association of Insurance |
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| 1 | | Commissioners Property and Casualty Annual Statement | 2 | | Instructions and shall be treated as a public document. | 3 | | Documents, materials, or other information in the | 4 | | possession or control of the Director that are considered | 5 | | an Actuarial Report, workpapers, or Actuarial Opinion | 6 | | Summary provided in support of the opinion, and any other | 7 | | material provided by the company to the Director in | 8 | | connection with the Actuarial Report, workpapers or | 9 | | Actuarial Opinion Summary, must be given confidential | 10 | | treatment, are not subject to subpoena, and may not be made | 11 | | public by the Director or any other persons. This paragraph | 12 | | (d) shall not be construed to limit the Director's | 13 | | authority to release the documents to the Actuarial Board | 14 | | for Counseling and Discipline (ABCD), so long as the | 15 | | material is required for the purpose of professional | 16 | | disciplinary proceedings and that the ABCD establishes | 17 | | procedures satisfactory to the Director for preserving the | 18 | | confidentiality of the documents, nor shall this paragraph | 19 | | (d) be construed to limit the Director's authority to use | 20 | | the documents, materials or other information in | 21 | | furtherance of any regulatory or legal action brought as | 22 | | part of the Director's official duties. Neither the | 23 | | Director nor any person who received documents, materials, | 24 | | or other information while acting under the authority of | 25 | | the Director shall be permitted or required to testify in | 26 | | any private civil action concerning any confidential |
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| 1 | | documents, materials, or information subject to this | 2 | | subsection (6). Except where another provision of this Code | 3 | | expressly prohibits a disclosure of confidential | 4 | | information to the specific officials or organizations | 5 | | described in this subsection, the Director may: | 6 | | (i) share documents, materials, or other | 7 | | information, including the confidential and privileged | 8 | | documents, materials or information subject to this | 9 | | paragraph (d) with the insurance department of any | 10 | | other state or country or with law enforcement | 11 | | officials of this or any other state or agency of the | 12 | | federal government at any time, as long as the agency | 13 | | or office receiving the document, material, or other | 14 | | information agrees in writing to hold it confidential | 15 | | and in a manner consistent with this Code; | 16 | | (ii) receive documents, materials, or information, | 17 | | including otherwise confidential and privileged | 18 | | documents, materials, or information, from the | 19 | | National Association of Insurance Commissioners and | 20 | | its affiliates and subsidiaries, and from regulatory | 21 | | and law enforcement officials of other foreign or | 22 | | domestic jurisdictions, and shall maintain as | 23 | | confidential or privileged any document, material, or | 24 | | information received with notice or the understanding | 25 | | that it is confidential or privileged under the laws of | 26 | | the jurisdiction that is the source of the document, |
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| 1 | | material, or information; and | 2 | | (iii) enter into agreements governing sharing and | 3 | | use of information consistent with paragraph (d). | 4 | | (e) No waiver of any applicable privilege or claim of | 5 | | confidentiality in the documents, materials or information | 6 | | shall occur as a result of disclosure to the Director under | 7 | | this Section or as a result of sharing as authorized in | 8 | | subparagraphs (i), (ii), and (iii) of paragraph (d) of | 9 | | subsection (6) of this Section.
All 2008 Annual Statements, | 10 | | which are filed in 2009, and all subsequent Annual | 11 | | Statement filings shall be done in accordance with | 12 | | subsection (6) of this Section. | 13 | | (Source: P.A. 96-145, eff. 8-7-09.)
| 14 | | (215 ILCS 5/408) (from Ch. 73, par. 1020)
| 15 | | Sec. 408. Fees and charges.
| 16 | | (1) The Director shall charge, collect and
give proper | 17 | | acquittances for the payment of the following fees and charges:
| 18 | | (a) For filing all documents submitted for the | 19 | | incorporation or
organization or certification of a | 20 | | domestic company, except for a fraternal
benefit society, | 21 | | $2,000.
| 22 | | (b) For filing all documents submitted for the | 23 | | incorporation or
organization of a fraternal benefit | 24 | | society, $500.
| 25 | | (c) For filing amendments to articles of incorporation |
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| 1 | | and amendments to
declaration of organization, except for a | 2 | | fraternal benefit society, a
mutual benefit association, a | 3 | | burial society or a farm mutual, $200.
| 4 | | (d) For filing amendments to articles of incorporation | 5 | | of a fraternal
benefit society, a mutual benefit | 6 | | association or a burial society, $100.
| 7 | | (e) For filing amendments to articles of incorporation | 8 | | of a farm mutual,
$50.
| 9 | | (f) For filing bylaws or amendments thereto, $50.
| 10 | | (g) For filing agreement of merger or consolidation:
| 11 | | (i) for a domestic company, except
for a fraternal | 12 | | benefit society, a
mutual benefit association, a | 13 | | burial society,
or a farm mutual, $2,000.
| 14 | | (ii) for a foreign or
alien company, except for a | 15 | | fraternal
benefit society, $600.
| 16 | | (iii) for a fraternal benefit society,
a mutual | 17 | | benefit association, a burial society,
or a farm | 18 | | mutual, $200.
| 19 | | (h) For filing agreements of reinsurance by a domestic | 20 | | company, $200.
| 21 | | (i) For filing all documents submitted by a foreign or | 22 | | alien
company to be admitted to transact business or | 23 | | accredited as a
reinsurer in this State, except for a
| 24 | | fraternal benefit society, $5,000.
| 25 | | (j) For filing all documents submitted by a foreign or | 26 | | alien
fraternal benefit society to be admitted to transact |
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| 1 | | business
in this State, $500.
| 2 | | (k) For filing declaration of withdrawal of a foreign | 3 | | or
alien company, $50.
| 4 | | (l) For filing annual statement by a domestic company , | 5 | | except a fraternal benefit
society, a mutual benefit | 6 | | association, a burial society, or
a farm mutual, $200.
| 7 | | (m) For filing annual statement by a domestic fraternal | 8 | | benefit
society, $100.
| 9 | | (n) For filing annual statement by a farm mutual, a | 10 | | mutual benefit
association, or a burial society, $50.
| 11 | | (o) For issuing a certificate of authority or
renewal | 12 | | thereof except to a foreign fraternal benefit society, $400 | 13 | | $200 .
| 14 | | (p) For issuing a certificate of authority or renewal | 15 | | thereof to a foreign
fraternal benefit society, $200 $100 .
| 16 | | (q) For issuing an amended certificate of authority, | 17 | | $50.
| 18 | | (r) For each certified copy of certificate of | 19 | | authority, $20.
| 20 | | (s) For each certificate of deposit, or valuation, or | 21 | | compliance
or surety certificate, $20.
| 22 | | (t) For copies of papers or records per page, $1.
| 23 | | (u) For each certification to copies
of papers or | 24 | | records, $10.
| 25 | | (v) For multiple copies of documents or certificates | 26 | | listed in
subparagraphs (r), (s), and (u) of paragraph (1) |
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| 1 | | of this Section, $10 for
the first copy of a certificate of | 2 | | any type and $5 for each additional copy
of the same | 3 | | certificate requested at the same time, unless, pursuant to
| 4 | | paragraph (2) of this Section, the Director finds these | 5 | | additional fees
excessive.
| 6 | | (w) For issuing a permit to sell shares or increase | 7 | | paid-up
capital:
| 8 | | (i) in connection with a public stock offering, | 9 | | $300;
| 10 | | (ii) in any other case, $100.
| 11 | | (x) For issuing any other certificate required or | 12 | | permissible
under the law, $50.
| 13 | | (y) For filing a plan of exchange of the stock of a | 14 | | domestic
stock insurance company, a plan of | 15 | | demutualization of a domestic
mutual company, or a plan of | 16 | | reorganization under Article XII, $2,000.
| 17 | | (z) For filing a statement of acquisition of a
domestic | 18 | | company as defined in Section 131.4 of this Code, $2,000.
| 19 | | (aa) For filing an agreement to purchase the business | 20 | | of an
organization authorized under the Dental Service Plan | 21 | | Act
or the Voluntary Health Services Plans Act or
of a | 22 | | health maintenance
organization or a limited health | 23 | | service organization, $2,000.
| 24 | | (bb) For filing a statement of acquisition of a foreign | 25 | | or alien
insurance company as defined in Section 131.12a of | 26 | | this Code, $1,000.
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| 1 | | (cc) For filing a registration statement as required in | 2 | | Sections 131.13
and 131.14, the notification as required by | 3 | | Sections 131.16,
131.20a, or 141.4, or an
agreement or | 4 | | transaction required by Sections 124.2(2), 141, 141a, or
| 5 | | 141.1, $200.
| 6 | | (dd) For filing an application for licensing of:
| 7 | | (i) a religious or charitable risk pooling trust or | 8 | | a workers'
compensation pool, $1,000;
| 9 | | (ii) a workers' compensation service company, | 10 | | $500;
| 11 | | (iii) a self-insured automobile fleet, $200; or
| 12 | | (iv) a renewal of or amendment of any license | 13 | | issued pursuant to (i),
(ii), or (iii) above, $100.
| 14 | | (ee) For filing articles of incorporation for a | 15 | | syndicate to engage in
the business of insurance through | 16 | | the Illinois Insurance Exchange, $2,000.
| 17 | | (ff) For filing amended articles of incorporation for a | 18 | | syndicate engaged
in the business of insurance through the | 19 | | Illinois Insurance Exchange, $100.
| 20 | | (gg) For filing articles of incorporation for a limited | 21 | | syndicate to
join with other subscribers or limited | 22 | | syndicates to do business through
the Illinois Insurance | 23 | | Exchange, $1,000.
| 24 | | (hh) For filing amended articles of incorporation for a | 25 | | limited
syndicate to do business through the Illinois | 26 | | Insurance Exchange, $100.
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| 1 | | (ii) For a permit to solicit subscriptions to a | 2 | | syndicate
or limited syndicate, $100.
| 3 | | (jj) For the filing of each form as required in Section | 4 | | 143 of this
Code, $50 per form. The fee for advisory and | 5 | | rating
organizations shall be $200 per form.
| 6 | | (i) For the purposes of the form filing fee, | 7 | | filings made on insert page
basis will be considered | 8 | | one form at the time of its original submission.
| 9 | | Changes made to a form subsequent to its approval shall | 10 | | be considered a
new filing.
| 11 | | (ii) Only one fee shall be charged for a form, | 12 | | regardless of the number
of other forms or policies | 13 | | with which it will be used.
| 14 | | (iii) (Blank).
| 15 | | (iv) The Director may by rule exempt forms from | 16 | | such fees.
| 17 | | (kk) For filing an application for licensing of a | 18 | | reinsurance
intermediary, $500.
| 19 | | (ll) For filing an application for renewal of a license | 20 | | of a reinsurance
intermediary, $200.
| 21 | | (2) When printed copies or numerous copies of the same | 22 | | paper or records
are furnished or certified, the Director may | 23 | | reduce such fees for copies
if he finds them excessive. He may, | 24 | | when he considers it in the public
interest, furnish without | 25 | | charge to state insurance departments and persons
other than | 26 | | companies, copies or certified copies of reports of |
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| 1 | | examinations
and of other papers and records.
| 2 | | (3) The expenses incurred in any performance
examination | 3 | | authorized by law shall be paid by the company or person being
| 4 | | examined. The charge shall be reasonably related to the cost of | 5 | | the
examination including but not limited to compensation of | 6 | | examiners,
electronic data processing costs, supervision and | 7 | | preparation of an
examination report and lodging and travel | 8 | | expenses.
All lodging and travel expenses shall be in accord
| 9 | | with the applicable travel regulations as published by the | 10 | | Department of
Central Management Services and approved by the | 11 | | Governor's Travel Control
Board, except that out-of-state | 12 | | lodging and travel expenses related to
examinations authorized | 13 | | under Section 132 shall be in accordance with
travel rates | 14 | | prescribed under paragraph 301-7.2 of the Federal Travel
| 15 | | Regulations, 41 C.F.R. 301-7.2, for reimbursement of | 16 | | subsistence expenses
incurred during official travel. All | 17 | | lodging and travel expenses may be reimbursed directly upon | 18 | | authorization of the
Director. With the exception of the
direct | 19 | | reimbursements authorized by the
Director, all performance | 20 | | examination charges collected by the
Department shall be paid
| 21 | | to the Insurance Producers Administration Fund,
however, the | 22 | | electronic data processing costs
incurred by the Department in | 23 | | the performance of any examination shall be
billed directly to | 24 | | the company being examined for payment to the
Statistical | 25 | | Services Revolving Fund.
| 26 | | (4) At the time of any service of process on the Director
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| 1 | | as attorney for such service, the Director shall charge and | 2 | | collect the
sum of $20, which may be recovered as taxable costs | 3 | | by
the party to the suit or action causing such service to be | 4 | | made if he prevails
in such suit or action.
| 5 | | (5) (a) The costs incurred by the Department of Insurance
| 6 | | in conducting any hearing authorized by law shall be assessed | 7 | | against the
parties to the hearing in such proportion as the | 8 | | Director of Insurance may
determine upon consideration of all | 9 | | relevant circumstances including: (1)
the nature of the | 10 | | hearing; (2) whether the hearing was instigated by, or
for the | 11 | | benefit of a particular party or parties; (3) whether there is | 12 | | a
successful party on the merits of the proceeding; and (4) the | 13 | | relative levels
of participation by the parties.
| 14 | | (b) For purposes of this subsection (5) costs incurred | 15 | | shall
mean the hearing officer fees, court reporter fees, and | 16 | | travel expenses
of Department of Insurance officers and | 17 | | employees; provided however, that
costs incurred shall not | 18 | | include hearing officer fees or court reporter
fees unless the | 19 | | Department has retained the services of independent
| 20 | | contractors or outside experts to perform such functions.
| 21 | | (c) The Director shall make the assessment of costs | 22 | | incurred as part of
the final order or decision arising out of | 23 | | the proceeding; provided, however,
that such order or decision | 24 | | shall include findings and conclusions in support
of the | 25 | | assessment of costs. This subsection (5) shall not be construed | 26 | | as
permitting the payment of travel expenses unless calculated |
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| 1 | | in accordance
with the applicable travel regulations of the | 2 | | Department
of Central Management Services, as approved by the | 3 | | Governor's Travel Control
Board. The Director as part of such | 4 | | order or decision shall require all
assessments for hearing | 5 | | officer fees and court reporter fees, if any, to
be paid | 6 | | directly to the hearing officer or court reporter by the | 7 | | party(s)
assessed for such costs. The assessments for travel | 8 | | expenses of Department
officers and employees shall be | 9 | | reimbursable to the
Director of Insurance for
deposit to the | 10 | | fund out of which those expenses had been paid.
| 11 | | (d) The provisions of this subsection (5) shall apply in | 12 | | the case of any
hearing conducted by the Director of Insurance | 13 | | not otherwise specifically
provided for by law.
| 14 | | (6) The Director shall charge and collect an annual | 15 | | financial
regulation fee from every domestic company for | 16 | | examination and analysis of
its financial condition and to fund | 17 | | the internal costs and expenses of the
Interstate Insurance | 18 | | Receivership Commission as may be allocated to the State
of | 19 | | Illinois and companies doing an insurance business in this | 20 | | State pursuant to
Article X of the Interstate Insurance | 21 | | Receivership Compact. The fee shall be
the greater fixed amount | 22 | | based upon
the combination of nationwide direct premium income | 23 | | and
nationwide reinsurance
assumed premium
income or upon | 24 | | admitted assets calculated under this subsection as follows:
| 25 | | (a) Combination of nationwide direct premium income | 26 | | and
nationwide reinsurance assumed premium.
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| 1 | | (i) $150, if the premium is less than $500,000 and | 2 | | there is
no
reinsurance assumed premium;
| 3 | | (ii) $750, if the premium is $500,000 or more, but | 4 | | less
than $5,000,000
and there is no reinsurance | 5 | | assumed premium; or if the premium is less than
| 6 | | $5,000,000 and the reinsurance assumed premium is less | 7 | | than $10,000,000;
| 8 | | (iii) $3,750, if the premium is less than | 9 | | $5,000,000 and
the reinsurance
assumed premium is | 10 | | $10,000,000 or more;
| 11 | | (iv) $7,500, if the premium is $5,000,000 or more, | 12 | | but
less than
$10,000,000;
| 13 | | (v) $18,000, if the premium is $10,000,000 or more, | 14 | | but
less than $25,000,000;
| 15 | | (vi) $22,500, if the premium is $25,000,000 or | 16 | | more, but
less
than $50,000,000;
| 17 | | (vii) $30,000, if the premium is $50,000,000 or | 18 | | more,
but less than $100,000,000;
| 19 | | (viii) $37,500, if the premium is $100,000,000 or | 20 | | more.
| 21 | | (b) Admitted assets.
| 22 | | (i) $150, if admitted assets are less than | 23 | | $1,000,000;
| 24 | | (ii) $750, if admitted assets are $1,000,000 or | 25 | | more, but
less than
$5,000,000;
| 26 | | (iii) $3,750, if admitted assets are $5,000,000 or |
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| 1 | | more,
but less than
$25,000,000;
| 2 | | (iv) $7,500, if admitted assets are $25,000,000 or | 3 | | more,
but less than
$50,000,000;
| 4 | | (v) $18,000, if admitted assets are $50,000,000 or | 5 | | more,
but less than
$100,000,000;
| 6 | | (vi) $22,500, if admitted assets are $100,000,000 | 7 | | or
more, but less
than $500,000,000;
| 8 | | (vii) $30,000, if admitted assets are $500,000,000 | 9 | | or
more, but less
than $1,000,000,000;
| 10 | | (viii) $37,500, if admitted assets are | 11 | | $1,000,000,000
or more.
| 12 | | (c) The sum of financial regulation fees charged to the | 13 | | domestic
companies of the same affiliated group shall not | 14 | | exceed $250,000
in the aggregate in any single year and | 15 | | shall be billed by the Director to
the member company | 16 | | designated by the
group.
| 17 | | (7) The Director shall charge and collect an annual | 18 | | financial regulation
fee from every foreign or alien company, | 19 | | except fraternal benefit
societies, for the
examination and | 20 | | analysis of its financial condition and to fund the internal
| 21 | | costs and expenses of the Interstate Insurance Receivership | 22 | | Commission as may
be allocated to the State of Illinois and | 23 | | companies doing an insurance business
in this State pursuant to | 24 | | Article X of the Interstate Insurance Receivership
Compact.
The | 25 | | fee shall be a fixed amount based upon Illinois direct premium | 26 | | income
and nationwide reinsurance assumed premium income in |
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| 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
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| 1 | | annually. After January
1, 1994, the fee shall be billed by | 2 | | Department invoice
based upon the company's
premium income or | 3 | | admitted assets as shown in its annual statement for the
| 4 | | preceding calendar year. The invoice is due upon
receipt and | 5 | | must be paid no later than June 30 of each calendar year. All
| 6 | | financial
regulation fees collected by the Department shall be | 7 | | paid to the Insurance
Financial Regulation Fund. The Department | 8 | | may not collect financial
examiner per diem charges from | 9 | | companies subject to subsections (6) and (7)
of this Section | 10 | | undergoing financial examination
after June 30, 1992.
| 11 | | (9) In addition to the financial regulation fee required by | 12 | | this
Section, a company undergoing any financial examination | 13 | | authorized by law
shall pay the following costs and expenses | 14 | | incurred by the Department:
electronic data processing costs, | 15 | | the expenses authorized under Section 131.21
and
subsection (d) | 16 | | of Section 132.4 of this Code, and lodging and travel expenses.
| 17 | | Electronic data processing costs incurred by the | 18 | | Department in the
performance of any examination shall be | 19 | | billed directly to the company
undergoing examination for | 20 | | payment to the Statistical Services Revolving
Fund. Except for | 21 | | direct reimbursements authorized by the Director or
direct | 22 | | payments made under Section 131.21 or subsection (d) of Section
| 23 | | 132.4 of this Code, all financial regulation fees and all | 24 | | financial
examination charges collected by the Department | 25 | | shall be paid to the
Insurance Financial Regulation Fund.
| 26 | | All lodging and travel expenses shall be in accordance with |
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| 1 | | applicable
travel regulations published by the Department of | 2 | | Central Management
Services and approved by the Governor's | 3 | | Travel Control Board, except that
out-of-state lodging and | 4 | | travel expenses related to examinations authorized
under | 5 | | Sections 132.1 through 132.7 shall be in accordance
with travel | 6 | | rates prescribed
under paragraph 301-7.2 of the Federal Travel | 7 | | Regulations, 41 C.F.R. 301-7.2,
for reimbursement of | 8 | | subsistence expenses incurred during official travel.
All | 9 | | lodging and travel expenses may be
reimbursed directly upon the | 10 | | authorization of the Director.
| 11 | | In the case of an organization or person not subject to the | 12 | | financial
regulation fee, the expenses incurred in any | 13 | | financial examination authorized
by law shall be paid by the | 14 | | organization or person being examined. The charge
shall be | 15 | | reasonably related to the cost of the examination including, | 16 | | but not
limited to, compensation of examiners and other costs | 17 | | described in this
subsection.
| 18 | | (10) Any company, person, or entity failing to make any | 19 | | payment of $150
or more as required under this Section shall be | 20 | | subject to the penalty and
interest provisions provided for in | 21 | | subsections (4) and (7)
of Section 412.
| 22 | | (11) Unless otherwise specified, all of the fees collected | 23 | | under this
Section shall be paid into the Insurance Financial | 24 | | Regulation Fund.
| 25 | | (12) For purposes of this Section:
| 26 | | (a) "Domestic company" means a company as defined in |
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| 1 | | Section 2 of this
Code which is incorporated or organized | 2 | | under the laws of this State, and in
addition includes a | 3 | | not-for-profit corporation authorized under the Dental
| 4 | | Service Plan Act or the Voluntary Health
Services Plans | 5 | | Act, a health maintenance organization, and a
limited
| 6 | | health service organization.
| 7 | | (b) "Foreign company" means a company as defined in | 8 | | Section 2 of this
Code which is incorporated or organized | 9 | | under the laws of any state of the
United States other than | 10 | | this State and in addition includes a health
maintenance | 11 | | organization and a limited health service organization | 12 | | which is
incorporated or organized under the laws
of any | 13 | | state of the United States other than this State.
| 14 | | (c) "Alien company" means a company as defined in | 15 | | Section 2 of this Code
which is incorporated or organized | 16 | | under the laws of any country other than
the United States.
| 17 | | (d) "Fraternal benefit society" means a corporation, | 18 | | society, order,
lodge or voluntary association as defined | 19 | | in Section 282.1 of this
Code.
| 20 | | (e) "Mutual benefit association" means a company, | 21 | | association or
corporation authorized by the Director to do | 22 | | business in this State under
the provisions of Article | 23 | | XVIII of this Code.
| 24 | | (f) "Burial society" means a person, firm, | 25 | | corporation, society or
association of individuals | 26 | | authorized by the Director to do business in
this State |
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| 1 | | under the provisions of Article XIX of this Code.
| 2 | | (g) "Farm mutual" means a district, county and township | 3 | | mutual insurance
company authorized by the Director to do | 4 | | business in this State under the
provisions of the Farm | 5 | | Mutual Insurance Company Act of 1986.
| 6 | | (Source: P.A. 93-32, eff. 7-1-03; 93-1083, eff. 2-7-05.)
| 7 | | Section 5. The Dental Service Plan Act is amended by | 8 | | changing Section 25 as follows:
| 9 | | (215 ILCS 110/25) (from Ch. 32, par. 690.25)
| 10 | | Sec. 25. Application of Insurance Code provisions. Dental | 11 | | service
plan corporations and all persons interested therein or | 12 | | dealing therewith
shall be subject to the provisions of | 13 | | Articles IIA and XII 1/2
and
Sections 3.1,
133, 136, 139, 140, | 14 | | 143, 143c, 149, 355.2, 367.2, 401, 401.1, 402, 403, 403A, 408,
| 15 | | 408.2, and 412, and subsection (15) of Section 367 of the | 16 | | Illinois Insurance
Code.
| 17 | | (Source: P.A. 91-549, eff. 8-14-99.)
| 18 | | Section 10. The Health Maintenance Organization Act is | 19 | | amended by changing Section 5-3 as follows:
| 20 | | (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
| 21 | | Sec. 5-3. Insurance Code provisions.
| 22 | | (a) Health Maintenance Organizations
shall be subject to |
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| 1 | | the provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
| 2 | | 141.2, 141.3, 143, 143c, 147, 148, 149, 151,
152, 153, 154, | 3 | | 154.5, 154.6,
154.7, 154.8, 155.04, 355.2, 356g.5-1, 356m, | 4 | | 356v, 356w, 356x, 356y,
356z.2, 356z.4, 356z.5, 356z.6, 356z.8, | 5 | | 356z.9, 356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, | 6 | | 356z.17, 356z.18, 364.01, 367.2, 367.2-5, 367i, 368a, 368b, | 7 | | 368c, 368d, 368e, 370c,
401, 401.1, 402, 403, 403A,
408, 408.2, | 8 | | 409, 412, 444,
and
444.1,
paragraph (c) of subsection (2) of | 9 | | Section 367, and Articles IIA, VIII 1/2,
XII,
XII 1/2, XIII, | 10 | | XIII 1/2, XXV, and XXVI of the Illinois Insurance Code.
| 11 | | (b) For purposes of the Illinois Insurance Code, except for | 12 | | Sections 444
and 444.1 and Articles XIII and XIII 1/2, Health | 13 | | Maintenance Organizations in
the following categories are | 14 | | deemed to be "domestic companies":
| 15 | | (1) a corporation authorized under the
Dental Service | 16 | | Plan Act or the Voluntary Health Services Plans Act;
| 17 | | (2) a corporation organized under the laws of this | 18 | | State; or
| 19 | | (3) a corporation organized under the laws of another | 20 | | state, 30% or more
of the enrollees of which are residents | 21 | | of this State, except a
corporation subject to | 22 | | substantially the same requirements in its state of
| 23 | | organization as is a "domestic company" under Article VIII | 24 | | 1/2 of the
Illinois Insurance Code.
| 25 | | (c) In considering the merger, consolidation, or other | 26 | | acquisition of
control of a Health Maintenance Organization |
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| 1 | | pursuant to Article VIII 1/2
of the Illinois Insurance Code,
| 2 | | (1) the Director shall give primary consideration to | 3 | | the continuation of
benefits to enrollees and the financial | 4 | | conditions of the acquired Health
Maintenance Organization | 5 | | after the merger, consolidation, or other
acquisition of | 6 | | control takes effect;
| 7 | | (2)(i) the criteria specified in subsection (1)(b) of | 8 | | Section 131.8 of
the Illinois Insurance Code shall not | 9 | | apply and (ii) the Director, in making
his determination | 10 | | with respect to the merger, consolidation, or other
| 11 | | acquisition of control, need not take into account the | 12 | | effect on
competition of the merger, consolidation, or | 13 | | other acquisition of control;
| 14 | | (3) the Director shall have the power to require the | 15 | | following
information:
| 16 | | (A) certification by an independent actuary of the | 17 | | adequacy
of the reserves of the Health Maintenance | 18 | | Organization sought to be acquired;
| 19 | | (B) pro forma financial statements reflecting the | 20 | | combined balance
sheets of the acquiring company and | 21 | | the Health Maintenance Organization sought
to be | 22 | | acquired as of the end of the preceding year and as of | 23 | | a date 90 days
prior to the acquisition, as well as pro | 24 | | forma financial statements
reflecting projected | 25 | | combined operation for a period of 2 years;
| 26 | | (C) a pro forma business plan detailing an |
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| 1 | | acquiring party's plans with
respect to the operation | 2 | | of the Health Maintenance Organization sought to
be | 3 | | acquired for a period of not less than 3 years; and
| 4 | | (D) such other information as the Director shall | 5 | | require.
| 6 | | (d) The provisions of Article VIII 1/2 of the Illinois | 7 | | Insurance Code
and this Section 5-3 shall apply to the sale by | 8 | | any health maintenance
organization of greater than 10% of its
| 9 | | enrollee population (including without limitation the health | 10 | | maintenance
organization's right, title, and interest in and to | 11 | | its health care
certificates).
| 12 | | (e) In considering any management contract or service | 13 | | agreement subject
to Section 141.1 of the Illinois Insurance | 14 | | Code, the Director (i) shall, in
addition to the criteria | 15 | | specified in Section 141.2 of the Illinois
Insurance Code, take | 16 | | into account the effect of the management contract or
service | 17 | | agreement on the continuation of benefits to enrollees and the
| 18 | | financial condition of the health maintenance organization to | 19 | | be managed or
serviced, and (ii) need not take into account the | 20 | | effect of the management
contract or service agreement on | 21 | | competition.
| 22 | | (f) Except for small employer groups as defined in the | 23 | | Small Employer
Rating, Renewability and Portability Health | 24 | | Insurance Act and except for
medicare supplement policies as | 25 | | defined in Section 363 of the Illinois
Insurance Code, a Health | 26 | | Maintenance Organization may by contract agree with a
group or |
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| 1 | | other enrollment unit to effect refunds or charge additional | 2 | | premiums
under the following terms and conditions:
| 3 | | (i) the amount of, and other terms and conditions with | 4 | | respect to, the
refund or additional premium are set forth | 5 | | in the group or enrollment unit
contract agreed in advance | 6 | | of the period for which a refund is to be paid or
| 7 | | additional premium is to be charged (which period shall not | 8 | | be less than one
year); and
| 9 | | (ii) the amount of the refund or additional premium | 10 | | shall not exceed 20%
of the Health Maintenance | 11 | | Organization's profitable or unprofitable experience
with | 12 | | respect to the group or other enrollment unit for the | 13 | | period (and, for
purposes of a refund or additional | 14 | | premium, the profitable or unprofitable
experience shall | 15 | | be calculated taking into account a pro rata share of the
| 16 | | Health Maintenance Organization's administrative and | 17 | | marketing expenses, but
shall not include any refund to be | 18 | | made or additional premium to be paid
pursuant to this | 19 | | subsection (f)). The Health Maintenance Organization and | 20 | | the
group or enrollment unit may agree that the profitable | 21 | | or unprofitable
experience may be calculated taking into | 22 | | account the refund period and the
immediately preceding 2 | 23 | | plan years.
| 24 | | The Health Maintenance Organization shall include a | 25 | | statement in the
evidence of coverage issued to each enrollee | 26 | | describing the possibility of a
refund or additional premium, |
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| 1 | | and upon request of any group or enrollment unit,
provide to | 2 | | the group or enrollment unit a description of the method used | 3 | | to
calculate (1) the Health Maintenance Organization's | 4 | | profitable experience with
respect to the group or enrollment | 5 | | unit and the resulting refund to the group
or enrollment unit | 6 | | or (2) the Health Maintenance Organization's unprofitable
| 7 | | experience with respect to the group or enrollment unit and the | 8 | | resulting
additional premium to be paid by the group or | 9 | | enrollment unit.
| 10 | | In no event shall the Illinois Health Maintenance | 11 | | Organization
Guaranty Association be liable to pay any | 12 | | contractual obligation of an
insolvent organization to pay any | 13 | | refund authorized under this Section.
| 14 | | (g) Rulemaking authority to implement Public Act 95-1045, | 15 | | if any, is conditioned on the rules being adopted in accordance | 16 | | with all provisions of the Illinois Administrative Procedure | 17 | | Act and all rules and procedures of the Joint Committee on | 18 | | Administrative Rules; any purported rule not so adopted, for | 19 | | whatever reason, is unauthorized. | 20 | | (Source: P.A. 95-422, eff. 8-24-07; 95-520, eff. 8-28-07; | 21 | | 95-876, eff. 8-21-08; 95-958, eff. 6-1-09; 95-978, eff. 1-1-09; | 22 | | 95-1005, eff. 12-12-08; 95-1045, eff. 3-27-09; 95-1049, eff. | 23 | | 1-1-10; 96-328, eff. 8-11-09; 96-639, eff. 1-1-10; 96-833, eff. | 24 | | 6-1-10; 96-1000, eff. 7-2-10.) | 25 | | Section 15. The Limited Health Service Organization Act is |
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| 1 | | amended by changing Section 4003 as follows:
| 2 | | (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
| 3 | | Sec. 4003. Illinois Insurance Code provisions. Limited | 4 | | health service
organizations shall be subject to the provisions | 5 | | of Sections 133, 134, 136, 137, 139,
140, 141.1, 141.2, 141.3, | 6 | | 143, 143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
154.6, | 7 | | 154.7, 154.8, 155.04, 155.37, 355.2, 356v, 356z.10, 368a, 401, | 8 | | 401.1,
402,
403, 403A, 408,
408.2, 409, 412, 444, and 444.1 and | 9 | | Articles IIA, VIII 1/2, XII, XII 1/2,
XIII,
XIII 1/2, XXV, and | 10 | | XXVI of the Illinois Insurance Code. For purposes of the
| 11 | | Illinois Insurance Code, except for Sections 444 and 444.1 and | 12 | | Articles XIII
and XIII 1/2, limited health service | 13 | | organizations in the following categories
are deemed to be | 14 | | domestic companies:
| 15 | | (1) a corporation under the laws of this State; or
| 16 | | (2) a corporation organized under the laws of another | 17 | | state, 30% of more
of the enrollees of which are residents | 18 | | of this State, except a corporation
subject to | 19 | | substantially the same requirements in its state of | 20 | | organization as
is a domestic company under Article VIII | 21 | | 1/2 of the Illinois Insurance Code.
| 22 | | (Source: P.A. 95-520, eff. 8-28-07; 95-876, eff. 8-21-08.)
| 23 | | Section 20. The Voluntary Health Services Plans Act is | 24 | | amended by changing Section 10 as follows:
|
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| 1 | | (215 ILCS 165/10) (from Ch. 32, par. 604)
| 2 | | Sec. 10. Application of Insurance Code provisions. Health | 3 | | services
plan corporations and all persons interested therein | 4 | | or dealing therewith
shall be subject to the provisions of | 5 | | Articles IIA and XII 1/2 and Sections
3.1, 133, 136, 139, 140, | 6 | | 143, 143c, 149, 155.37, 354, 355.2, 356g, 356g.5, 356g.5-1, | 7 | | 356r, 356t, 356u, 356v,
356w, 356x, 356y, 356z.1, 356z.2, | 8 | | 356z.4, 356z.5, 356z.6, 356z.8, 356z.9,
356z.10, 356z.11, | 9 | | 356z.12, 356z.13, 356z.14, 356z.15, 356z.18, 364.01, 367.2, | 10 | | 368a, 401, 401.1,
402,
403, 403A, 408,
408.2, and 412, and | 11 | | paragraphs (7) and (15) of Section 367 of the Illinois
| 12 | | Insurance Code.
| 13 | | Rulemaking authority to implement Public Act 95-1045, if | 14 | | any, is conditioned on the rules being adopted in accordance | 15 | | with all provisions of the Illinois Administrative Procedure | 16 | | Act and all rules and procedures of the Joint Committee on | 17 | | Administrative Rules; any purported rule not so adopted, for | 18 | | whatever reason, is unauthorized. | 19 | | (Source: P.A. 95-189, eff. 8-16-07; 95-331, eff. 8-21-07; | 20 | | 95-422, eff. 8-24-07; 95-520, eff. 8-28-07; 95-876, eff. | 21 | | 8-21-08; 95-958, eff. 6-1-09; 95-978, eff. 1-1-09; 95-1005, | 22 | | eff. 12-12-08; 95-1045, eff. 3-27-09; 95-1049, eff. 1-1-10; | 23 | | 96-328, eff. 8-11-09; 96-833, eff. 6-1-10; 96-1000, eff. | 24 | | 7-2-10.)
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| 1 | | (215 ILCS 110/36 rep.)
| 2 | | (215 ILCS 110/37 rep.)
| 3 | | Section 25. The Dental Service Plan Act is amended by | 4 | | repealing Sections 36 and 37.
| 5 | | (215 ILCS 125/2-7 rep.)
| 6 | | Section 30. The Health Maintenance Organization Act is | 7 | | amended by repealing Section 2-7.
| 8 | | (215 ILCS 130/2007 rep.)
| 9 | | Section 35. The Limited Health Service Organization Act is | 10 | | amended by repealing Section 2007.
| 11 | | (215 ILCS 165/21 rep.)
| 12 | | (215 ILCS 165/22 rep.)
| 13 | | Section 40. The Voluntary Health Services Plans Act is | 14 | | amended by repealing Sections 21 and 22.
|
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