Full Text of SB1544 97th General Assembly
SB1544enr 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 5. The Illinois Insurance Code is amended by | 5 | | changing Section 408 as follows:
| 6 | | (215 ILCS 5/408) (from Ch. 73, par. 1020)
| 7 | | Sec. 408. Fees and charges.
| 8 | | (1) The Director shall charge, collect and
give proper | 9 | | acquittances for the payment of the following fees and charges:
| 10 | | (a) For filing all documents submitted for the | 11 | | incorporation or
organization or certification of a | 12 | | domestic company, except for a fraternal
benefit society, | 13 | | $2,000.
| 14 | | (b) For filing all documents submitted for the | 15 | | incorporation or
organization of a fraternal benefit | 16 | | society, $500.
| 17 | | (c) For filing amendments to articles of incorporation | 18 | | and amendments to
declaration of organization, except for a | 19 | | fraternal benefit society, a
mutual benefit association, a | 20 | | burial society or a farm mutual, $200.
| 21 | | (d) For filing amendments to articles of incorporation | 22 | | of a fraternal
benefit society, a mutual benefit | 23 | | association or a burial society, $100.
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| 1 | | (e) For filing amendments to articles of incorporation | 2 | | of a farm mutual,
$50.
| 3 | | (f) For filing bylaws or amendments thereto, $50.
| 4 | | (g) For filing agreement of merger or consolidation:
| 5 | | (i) for a domestic company, except
for a fraternal | 6 | | benefit society, a
mutual benefit association, a | 7 | | burial society,
or a farm mutual, $2,000.
| 8 | | (ii) for a foreign or
alien company, except for a | 9 | | fraternal
benefit society, $600.
| 10 | | (iii) for a fraternal benefit society,
a mutual | 11 | | benefit association, a burial society,
or a farm | 12 | | mutual, $200.
| 13 | | (h) For filing agreements of reinsurance by a domestic | 14 | | company, $200.
| 15 | | (i) For filing all documents submitted by a foreign or | 16 | | alien
company to be admitted to transact business or | 17 | | accredited as a
reinsurer in this State, except for a
| 18 | | fraternal benefit society, $5,000.
| 19 | | (j) For filing all documents submitted by a foreign or | 20 | | alien
fraternal benefit society to be admitted to transact | 21 | | business
in this State, $500.
| 22 | | (k) For filing declaration of withdrawal of a foreign | 23 | | or
alien company, $50.
| 24 | | (l) For filing annual statement, except a fraternal | 25 | | benefit
society, a mutual benefit association, a burial | 26 | | society, or
a farm mutual, $200.
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| 1 | | (m) For filing annual statement by a fraternal benefit
| 2 | | society, $100.
| 3 | | (n) For filing annual statement by a farm mutual, a | 4 | | mutual benefit
association, or a burial society, $50.
| 5 | | (o) For issuing a certificate of authority or
renewal | 6 | | thereof except to a fraternal benefit society, $200.
| 7 | | (p) For issuing a certificate of authority or renewal | 8 | | thereof to a
fraternal benefit society, $100.
| 9 | | (q) For issuing an amended certificate of authority, | 10 | | $50.
| 11 | | (r) For each certified copy of certificate of | 12 | | authority, $20.
| 13 | | (s) For each certificate of deposit, or valuation, or | 14 | | compliance
or surety certificate, $20.
| 15 | | (t) For copies of papers or records per page, $1.
| 16 | | (u) For each certification to copies
of papers or | 17 | | records, $10.
| 18 | | (v) For multiple copies of documents or certificates | 19 | | listed in
subparagraphs (r), (s), and (u) of paragraph (1) | 20 | | of this Section, $10 for
the first copy of a certificate of | 21 | | any type and $5 for each additional copy
of the same | 22 | | certificate requested at the same time, unless, pursuant to
| 23 | | paragraph (2) of this Section, the Director finds these | 24 | | additional fees
excessive.
| 25 | | (w) For issuing a permit to sell shares or increase | 26 | | paid-up
capital:
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| 1 | | (i) in connection with a public stock offering, | 2 | | $300;
| 3 | | (ii) in any other case, $100.
| 4 | | (x) For issuing any other certificate required or | 5 | | permissible
under the law, $50.
| 6 | | (y) For filing a plan of exchange of the stock of a | 7 | | domestic
stock insurance company, a plan of | 8 | | demutualization of a domestic
mutual company, or a plan of | 9 | | reorganization under Article XII, $2,000.
| 10 | | (z) For filing a statement of acquisition of a
domestic | 11 | | company as defined in Section 131.4 of this Code, $2,000.
| 12 | | (aa) For filing an agreement to purchase the business | 13 | | of an
organization authorized under the Dental Service Plan | 14 | | Act
or the Voluntary Health Services Plans Act or
of a | 15 | | health maintenance
organization or a limited health | 16 | | service organization, $2,000.
| 17 | | (bb) For filing a statement of acquisition of a foreign | 18 | | or alien
insurance company as defined in Section 131.12a of | 19 | | this Code, $1,000.
| 20 | | (cc) For filing a registration statement as required in | 21 | | Sections 131.13
and 131.14, the notification as required by | 22 | | Sections 131.16,
131.20a, or 141.4, or an
agreement or | 23 | | transaction required by Sections 124.2(2), 141, 141a, or
| 24 | | 141.1, $200.
| 25 | | (dd) For filing an application for licensing of:
| 26 | | (i) a religious or charitable risk pooling trust or |
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| 1 | | a workers'
compensation pool, $1,000;
| 2 | | (ii) a workers' compensation service company, | 3 | | $500;
| 4 | | (iii) a self-insured automobile fleet, $200; or
| 5 | | (iv) a renewal of or amendment of any license | 6 | | issued pursuant to (i),
(ii), or (iii) above, $100.
| 7 | | (ee) For filing articles of incorporation for a | 8 | | syndicate to engage in
the business of insurance through | 9 | | the Illinois Insurance Exchange, $2,000.
| 10 | | (ff) For filing amended articles of incorporation for a | 11 | | syndicate engaged
in the business of insurance through the | 12 | | Illinois Insurance Exchange, $100.
| 13 | | (gg) For filing articles of incorporation for a limited | 14 | | syndicate to
join with other subscribers or limited | 15 | | syndicates to do business through
the Illinois Insurance | 16 | | Exchange, $1,000.
| 17 | | (hh) For filing amended articles of incorporation for a | 18 | | limited
syndicate to do business through the Illinois | 19 | | Insurance Exchange, $100.
| 20 | | (ii) For a permit to solicit subscriptions to a | 21 | | syndicate
or limited syndicate, $100.
| 22 | | (jj) For the filing of each form as required in Section | 23 | | 143 of this
Code, $50 per form. The fee for advisory and | 24 | | rating
organizations shall be $200 per form.
| 25 | | (i) For the purposes of the form filing fee, | 26 | | filings made on insert page
basis will be considered |
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| 1 | | one form at the time of its original submission.
| 2 | | Changes made to a form subsequent to its approval shall | 3 | | be considered a
new filing.
| 4 | | (ii) Only one fee shall be charged for a form, | 5 | | regardless of the number
of other forms or policies | 6 | | with which it will be used.
| 7 | | (iii) Fees charged for a policy filed as it will be | 8 | | issued regardless of the number of forms comprising | 9 | | that policy shall not exceed $1,500. For advisory or | 10 | | rating organizations, fees charged for a policy filed | 11 | | as it will be issued regardless of the number of forms | 12 | | comprising that policy shall not exceed $2,500 | 13 | | (Blank) .
| 14 | | (iv) The Director may by rule exempt forms from | 15 | | such fees.
| 16 | | (kk) For filing an application for licensing of a | 17 | | reinsurance
intermediary, $500.
| 18 | | (ll) For filing an application for renewal of a license | 19 | | of a reinsurance
intermediary, $200.
| 20 | | (2) When printed copies or numerous copies of the same | 21 | | paper or records
are furnished or certified, the Director may | 22 | | reduce such fees for copies
if he finds them excessive. He may, | 23 | | when he considers it in the public
interest, furnish without | 24 | | charge to state insurance departments and persons
other than | 25 | | companies, copies or certified copies of reports of | 26 | | examinations
and of other papers and records.
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| 1 | | (3) The expenses incurred in any performance
examination | 2 | | authorized by law shall be paid by the company or person being
| 3 | | examined. The charge shall be reasonably related to the cost of | 4 | | the
examination including but not limited to compensation of | 5 | | examiners,
electronic data processing costs, supervision and | 6 | | preparation of an
examination report and lodging and travel | 7 | | expenses.
All lodging and travel expenses shall be in accord
| 8 | | with the applicable travel regulations as published by the | 9 | | Department of
Central Management Services and approved by the | 10 | | Governor's Travel Control
Board, except that out-of-state | 11 | | lodging and travel expenses related to
examinations authorized | 12 | | under Section 132 shall be in accordance with
travel rates | 13 | | prescribed under paragraph 301-7.2 of the Federal Travel
| 14 | | Regulations, 41 C.F.R. 301-7.2, for reimbursement of | 15 | | subsistence expenses
incurred during official travel. All | 16 | | lodging and travel expenses may be reimbursed directly upon | 17 | | authorization of the
Director. With the exception of the
direct | 18 | | reimbursements authorized by the
Director, all performance | 19 | | examination charges collected by the
Department shall be paid
| 20 | | to the Insurance Producers Administration Fund,
however, the | 21 | | electronic data processing costs
incurred by the Department in | 22 | | the performance of any examination shall be
billed directly to | 23 | | the company being examined for payment to the
Statistical | 24 | | Services Revolving Fund.
| 25 | | (4) At the time of any service of process on the Director
| 26 | | as attorney for such service, the Director shall charge and |
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| 1 | | collect the
sum of $20, which may be recovered as taxable costs | 2 | | by
the party to the suit or action causing such service to be | 3 | | made if he prevails
in such suit or action.
| 4 | | (5) (a) The costs incurred by the Department of Insurance
| 5 | | in conducting any hearing authorized by law shall be assessed | 6 | | against the
parties to the hearing in such proportion as the | 7 | | Director of Insurance may
determine upon consideration of all | 8 | | relevant circumstances including: (1)
the nature of the | 9 | | hearing; (2) whether the hearing was instigated by, or
for the | 10 | | benefit of a particular party or parties; (3) whether there is | 11 | | a
successful party on the merits of the proceeding; and (4) the | 12 | | relative levels
of participation by the parties.
| 13 | | (b) For purposes of this subsection (5) costs incurred | 14 | | shall
mean the hearing officer fees, court reporter fees, and | 15 | | travel expenses
of Department of Insurance officers and | 16 | | employees; provided however, that
costs incurred shall not | 17 | | include hearing officer fees or court reporter
fees unless the | 18 | | Department has retained the services of independent
| 19 | | contractors or outside experts to perform such functions.
| 20 | | (c) The Director shall make the assessment of costs | 21 | | incurred as part of
the final order or decision arising out of | 22 | | the proceeding; provided, however,
that such order or decision | 23 | | shall include findings and conclusions in support
of the | 24 | | assessment of costs. This subsection (5) shall not be construed | 25 | | as
permitting the payment of travel expenses unless calculated | 26 | | in accordance
with the applicable travel regulations of the |
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| 1 | | Department
of Central Management Services, as approved by the | 2 | | Governor's Travel Control
Board. The Director as part of such | 3 | | order or decision shall require all
assessments for hearing | 4 | | officer fees and court reporter fees, if any, to
be paid | 5 | | directly to the hearing officer or court reporter by the | 6 | | party(s)
assessed for such costs. The assessments for travel | 7 | | expenses of Department
officers and employees shall be | 8 | | reimbursable to the
Director of Insurance for
deposit to the | 9 | | fund out of which those expenses had been paid.
| 10 | | (d) The provisions of this subsection (5) shall apply in | 11 | | the case of any
hearing conducted by the Director of Insurance | 12 | | not otherwise specifically
provided for by law.
| 13 | | (6) The Director shall charge and collect an annual | 14 | | financial
regulation fee from every domestic company for | 15 | | examination and analysis of
its financial condition and to fund | 16 | | the internal costs and expenses of the
Interstate Insurance | 17 | | Receivership Commission as may be allocated to the State
of | 18 | | Illinois and companies doing an insurance business in this | 19 | | State pursuant to
Article X of the Interstate Insurance | 20 | | Receivership Compact. The fee shall be
the greater fixed amount | 21 | | based upon
the combination of nationwide direct premium income | 22 | | and
nationwide reinsurance
assumed premium
income or upon | 23 | | admitted assets calculated under this subsection as follows:
| 24 | | (a) Combination of nationwide direct premium income | 25 | | and
nationwide reinsurance assumed premium.
| 26 | | (i) $150, if the premium is less than $500,000 and |
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| 1 | | there is
no
reinsurance assumed premium;
| 2 | | (ii) $750, if the premium is $500,000 or more, but | 3 | | less
than $5,000,000
and there is no reinsurance | 4 | | assumed premium; or if the premium is less than
| 5 | | $5,000,000 and the reinsurance assumed premium is less | 6 | | than $10,000,000;
| 7 | | (iii) $3,750, if the premium is less than | 8 | | $5,000,000 and
the reinsurance
assumed premium is | 9 | | $10,000,000 or more;
| 10 | | (iv) $7,500, if the premium is $5,000,000 or more, | 11 | | but
less than
$10,000,000;
| 12 | | (v) $18,000, if the premium is $10,000,000 or more, | 13 | | but
less than $25,000,000;
| 14 | | (vi) $22,500, if the premium is $25,000,000 or | 15 | | more, but
less
than $50,000,000;
| 16 | | (vii) $30,000, if the premium is $50,000,000 or | 17 | | more,
but less than $100,000,000;
| 18 | | (viii) $37,500, if the premium is $100,000,000 or | 19 | | more.
| 20 | | (b) Admitted assets.
| 21 | | (i) $150, if admitted assets are less than | 22 | | $1,000,000;
| 23 | | (ii) $750, if admitted assets are $1,000,000 or | 24 | | more, but
less than
$5,000,000;
| 25 | | (iii) $3,750, if admitted assets are $5,000,000 or | 26 | | more,
but less than
$25,000,000;
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| 1 | | (iv) $7,500, if admitted assets are $25,000,000 or | 2 | | more,
but less than
$50,000,000;
| 3 | | (v) $18,000, if admitted assets are $50,000,000 or | 4 | | more,
but less than
$100,000,000;
| 5 | | (vi) $22,500, if admitted assets are $100,000,000 | 6 | | or
more, but less
than $500,000,000;
| 7 | | (vii) $30,000, if admitted assets are $500,000,000 | 8 | | or
more, but less
than $1,000,000,000;
| 9 | | (viii) $37,500, if admitted assets are | 10 | | $1,000,000,000
or more.
| 11 | | (c) The sum of financial regulation fees charged to the | 12 | | domestic
companies of the same affiliated group shall not | 13 | | exceed $250,000
in the aggregate in any single year and | 14 | | shall be billed by the Director to
the member company | 15 | | designated by the
group.
| 16 | | (7) The Director shall charge and collect an annual | 17 | | financial regulation
fee from every foreign or alien company, | 18 | | except fraternal benefit
societies, for the
examination and | 19 | | analysis of its financial condition and to fund the internal
| 20 | | costs and expenses of the Interstate Insurance Receivership | 21 | | Commission as may
be allocated to the State of Illinois and | 22 | | companies doing an insurance business
in this State pursuant to | 23 | | Article X of the Interstate Insurance Receivership
Compact.
The | 24 | | fee shall be a fixed amount based upon Illinois direct premium | 25 | | income
and nationwide reinsurance assumed premium income in | 26 | | accordance with the
following schedule:
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| 1 | | (a) $150, if the premium is less than $500,000 and | 2 | | there is
no
reinsurance assumed premium;
| 3 | | (b) $750, if the premium is $500,000 or more, but less | 4 | | than
$5,000,000
and there is no reinsurance assumed | 5 | | premium;
or if the premium is less than $5,000,000 and the | 6 | | reinsurance assumed
premium is less than $10,000,000;
| 7 | | (c) $3,750, if the premium is less than $5,000,000 and | 8 | | the
reinsurance
assumed premium is $10,000,000 or more;
| 9 | | (d) $7,500, if the premium is $5,000,000 or more, but | 10 | | less
than
$10,000,000;
| 11 | | (e) $18,000, if the premium is $10,000,000 or more, but
| 12 | | less than
$25,000,000;
| 13 | | (f) $22,500, if the premium is $25,000,000 or more, but
| 14 | | less than
$50,000,000;
| 15 | | (g) $30,000, if the premium is $50,000,000 or more, but
| 16 | | less than
$100,000,000;
| 17 | | (h) $37,500, if the premium is $100,000,000 or more.
| 18 | | The sum of financial regulation fees under this subsection | 19 | | (7)
charged to the foreign or alien companies within the same | 20 | | affiliated group
shall not exceed $250,000 in the aggregate in | 21 | | any single year
and shall be
billed by the Director to the | 22 | | member company designated by the group.
| 23 | | (8) Beginning January 1, 1992, the financial regulation | 24 | | fees imposed
under subsections (6) and (7)
of this Section | 25 | | shall be paid by each company or domestic affiliated group
| 26 | | annually. After January
1, 1994, the fee shall be billed by |
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| 1 | | Department invoice
based upon the company's
premium income or | 2 | | admitted assets as shown in its annual statement for the
| 3 | | preceding calendar year. The invoice is due upon
receipt and | 4 | | must be paid no later than June 30 of each calendar year. All
| 5 | | financial
regulation fees collected by the Department shall be | 6 | | paid to the Insurance
Financial Regulation Fund. The Department | 7 | | may not collect financial
examiner per diem charges from | 8 | | companies subject to subsections (6) and (7)
of this Section | 9 | | undergoing financial examination
after June 30, 1992.
| 10 | | (9) In addition to the financial regulation fee required by | 11 | | this
Section, a company undergoing any financial examination | 12 | | authorized by law
shall pay the following costs and expenses | 13 | | incurred by the Department:
electronic data processing costs, | 14 | | the expenses authorized under Section 131.21
and
subsection (d) | 15 | | of Section 132.4 of this Code, and lodging and travel expenses.
| 16 | | Electronic data processing costs incurred by the | 17 | | Department in the
performance of any examination shall be | 18 | | billed directly to the company
undergoing examination for | 19 | | payment to the Statistical Services Revolving
Fund. Except for | 20 | | direct reimbursements authorized by the Director or
direct | 21 | | payments made under Section 131.21 or subsection (d) of Section
| 22 | | 132.4 of this Code, all financial regulation fees and all | 23 | | financial
examination charges collected by the Department | 24 | | shall be paid to the
Insurance Financial Regulation Fund.
| 25 | | All lodging and travel expenses shall be in accordance with | 26 | | applicable
travel regulations published by the Department of |
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| 1 | | Central Management
Services and approved by the Governor's | 2 | | Travel Control Board, except that
out-of-state lodging and | 3 | | travel expenses related to examinations authorized
under | 4 | | Sections 132.1 through 132.7 shall be in accordance
with travel | 5 | | rates prescribed
under paragraph 301-7.2 of the Federal Travel | 6 | | Regulations, 41 C.F.R. 301-7.2,
for reimbursement of | 7 | | subsistence expenses incurred during official travel.
All | 8 | | lodging and travel expenses may be
reimbursed directly upon the | 9 | | authorization of the Director.
| 10 | | In the case of an organization or person not subject to the | 11 | | financial
regulation fee, the expenses incurred in any | 12 | | financial examination authorized
by law shall be paid by the | 13 | | organization or person being examined. The charge
shall be | 14 | | reasonably related to the cost of the examination including, | 15 | | but not
limited to, compensation of examiners and other costs | 16 | | described in this
subsection.
| 17 | | (10) Any company, person, or entity failing to make any | 18 | | payment of $150
or more as required under this Section shall be | 19 | | subject to the penalty and
interest provisions provided for in | 20 | | subsections (4) and (7)
of Section 412.
| 21 | | (11) Unless otherwise specified, all of the fees collected | 22 | | under this
Section shall be paid into the Insurance Financial | 23 | | Regulation Fund.
| 24 | | (12) For purposes of this Section:
| 25 | | (a) "Domestic company" means a company as defined in | 26 | | Section 2 of this
Code which is incorporated or organized |
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| 1 | | under the laws of this State, and in
addition includes a | 2 | | not-for-profit corporation authorized under the Dental
| 3 | | Service Plan Act or the Voluntary Health
Services Plans | 4 | | Act, a health maintenance organization, and a
limited
| 5 | | health service organization.
| 6 | | (b) "Foreign company" means a company as defined in | 7 | | Section 2 of this
Code which is incorporated or organized | 8 | | under the laws of any state of the
United States other than | 9 | | this State and in addition includes a health
maintenance | 10 | | organization and a limited health service organization | 11 | | which is
incorporated or organized under the laws
of any | 12 | | state of the United States other than this State.
| 13 | | (c) "Alien company" means a company as defined in | 14 | | Section 2 of this Code
which is incorporated or organized | 15 | | under the laws of any country other than
the United States.
| 16 | | (d) "Fraternal benefit society" means a corporation, | 17 | | society, order,
lodge or voluntary association as defined | 18 | | in Section 282.1 of this
Code.
| 19 | | (e) "Mutual benefit association" means a company, | 20 | | association or
corporation authorized by the Director to do | 21 | | business in this State under
the provisions of Article | 22 | | XVIII of this Code.
| 23 | | (f) "Burial society" means a person, firm, | 24 | | corporation, society or
association of individuals | 25 | | authorized by the Director to do business in
this State | 26 | | under the provisions of Article XIX of this Code.
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| 1 | | (g) "Farm mutual" means a district, county and township | 2 | | mutual insurance
company authorized by the Director to do | 3 | | business in this State under the
provisions of the Farm | 4 | | Mutual Insurance Company Act of 1986.
| 5 | | (Source: P.A. 93-32, eff. 7-1-03; 93-1083, eff. 2-7-05.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
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