Full Text of HB1129 97th General Assembly
HB1129sam001 97TH GENERAL ASSEMBLY | Sen. William R. Haine Filed: 5/3/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1129
| 2 | | AMENDMENT NO. ______. Amend House Bill 1129 on page 1, line | 3 | | 5, after "136", by inserting ", 143,"; and
| 4 | | on page 8, immediately below line 13, by inserting the | 5 | | following:
| 6 | | "(215 ILCS 5/143) (from Ch. 73, par. 755)
| 7 | | 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 |
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| 1 | | has been filed electronically
with the Director, either through | 2 | | the System for Electronic Rate and Form Filing (SERFF) or as | 3 | | otherwise prescribed by the Director, and
approved by the | 4 | | Director. The Department shall mail a quarterly invoice to the | 5 | | company for the appropriate filing fees required under Section | 6 | | 408. Any such endorsement or rider
that unilaterally reduces | 7 | | benefits and is to be attached to a
policy subsequent to the | 8 | | date the policy is
issued must be filed with, reviewed, and | 9 | | formally approved by the
Director prior to the date it is | 10 | | attached to a policy issued or
delivered in this State. It | 11 | | shall be the duty of the Director to
withhold approval of any | 12 | | such policy, certificate, endorsement, rider,
bylaw or other | 13 | | matter incorporated by reference or application blank
filed | 14 | | with him if it contains provisions which encourage
| 15 | | misrepresentation or are unjust, unfair, inequitable, | 16 | | ambiguous,
misleading, inconsistent, deceptive, contrary to | 17 | | law or to the public
policy of this State, or contains | 18 | | exceptions and conditions that
unreasonably or deceptively | 19 | | affect the risk purported to be assumed in
the general coverage | 20 | | of the policy. In all cases the Director shall
approve or | 21 | | disapprove any such form within 60 days after submission
unless | 22 | | the Director extends by not more than an additional 30 days the
| 23 | | period within which he shall approve or disapprove any such | 24 | | form by
giving written notice to the insurer of such extension | 25 | | before expiration
of the initial 60 days period. The Director | 26 | | shall withdraw his approval
of a policy, certificate, evidence |
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| 1 | | of coverage, endorsement, rider,
bylaw, or other matter | 2 | | incorporated
by reference or application blank if he | 3 | | subsequently determines that such
policy, certificate, | 4 | | evidence of coverage, endorsement, rider, bylaw,
other matter, | 5 | | or application
blank is misrepresentative, unjust, unfair, | 6 | | inequitable, ambiguous, misleading,
inconsistent, deceptive, | 7 | | contrary to law or public policy of this State,
or contains | 8 | | exceptions or conditions which unreasonably or deceptively | 9 | | affect
the risk purported to be assumed in the general coverage | 10 | | of the policy or
evidence of coverage.
| 11 | | If a previously approved policy, certificate, evidence of
| 12 | | coverage, endorsement, rider, bylaw
or other matter | 13 | | incorporated by reference or application blank is withdrawn
for | 14 | | use, the Director shall serve upon the company an order of | 15 | | withdrawal
of use, either personally or by mail, and if by | 16 | | mail, such service shall
be completed if such notice be | 17 | | deposited in the post office, postage prepaid,
addressed to the | 18 | | company's last known address specified in the records
of the | 19 | | Department of Insurance. The order of withdrawal of use shall | 20 | | take
effect 30 days from the date of mailing but shall be | 21 | | stayed if within the
30-day period a written request for | 22 | | hearing is filed with the Director.
Such hearing shall be held | 23 | | at such time and place as designated in the order
given by the | 24 | | Director. The hearing may be held either in the City of | 25 | | Springfield,
the City of Chicago or in the county where the | 26 | | principal business address
of the company is located.
The |
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| 1 | | action of the Director in
disapproving or withdrawing such form | 2 | | shall be subject to judicial review under
the
Administrative | 3 | | Review Law.
| 4 | | This subsection shall not apply to riders or endorsements | 5 | | issued or
made at the request of the individual policyholder | 6 | | relating to the
manner of distribution of benefits or to the | 7 | | reservation of rights and
benefits under his life insurance | 8 | | policy.
| 9 | | (2) Casualty, fire, and marine. The Director shall require | 10 | | the
filing of all policy forms issued or delivered by any | 11 | | company transacting
the kind or
kinds of business enumerated in | 12 | | Classes 2 (except Class 2 (a)) and 3 of
Section 4 in an | 13 | | electronic format either through the System for Electronic Rate | 14 | | and Form Filing (SERFF) or as otherwise prescribed and approved | 15 | | by the Director . In addition, he may require the filing of any
| 16 | | generally used riders, endorsements, certificates, application | 17 | | blanks, and
other matter
incorporated by reference in any such | 18 | | policy or contract of insurance. The Department shall mail a | 19 | | quarterly invoice to the company for the appropriate filing | 20 | | fees required under Section 408.
Companies that are members of | 21 | | an organization, bureau, or association may
have the same filed | 22 | | for them by the organization, bureau, or association. If
the | 23 | | Director shall find from an examination of any such policy | 24 | | form,
rider, endorsement, certificate, application blank, or | 25 | | other matter
incorporated by
reference in any such policy so | 26 | | filed that it (i) violates any provision of
this Code, (ii) |
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| 1 | | contains inconsistent, ambiguous, or misleading clauses, or
| 2 | | (iii) contains exceptions and conditions that will | 3 | | unreasonably or deceptively
affect the risks that are purported | 4 | | to be assumed by the policy, he
shall order the company or | 5 | | companies issuing these forms to discontinue
their use. Nothing | 6 | | in this subsection shall require a company
transacting the kind | 7 | | or kinds of business enumerated in Classes 2
(except Class 2 | 8 | | (a)) and 3 of Section 4 to obtain approval of these forms
| 9 | | before they are issued nor in any way affect the legality of | 10 | | any
policy that has been issued and found to be in conflict | 11 | | with this
subsection, but such policies shall be subject to the | 12 | | provisions of
Section 442.
| 13 | | (3) This Section shall not apply (i) to surety contracts or | 14 | | fidelity
bonds, (ii) to policies issued to an industrial | 15 | | insured as defined in Section
121-2.08 except for workers' | 16 | | compensation policies, nor (iii) to riders
or
endorsements | 17 | | prepared to meet special, unusual,
peculiar, or extraordinary | 18 | | conditions applying to an individual risk.
| 19 | | (Source: P.A. 93-1083, eff. 2-7-05.)".
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