Full Text of SB2402 97th General Assembly
SB2402 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2402 Introduced 2/15/2011, by Sen. Kwame Raoul SYNOPSIS AS INTRODUCED: |
| 215 ILCS 5/155.18 | from Ch. 73, par. 767.18 | 215 ILCS 5/155.18a | | 215 ILCS 5/155.19 | from Ch. 73, par. 767.19 | 215 ILCS 5/1204 | from Ch. 73, par. 1065.904 |
|
Amends the Illinois Insurance Code to re-enact certain provisions of Public Act 94-677, which was declared to be unconstitutional. Includes explanatory, validation, and severability provisions. Includes revisory changes. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | SB2402 | | LRB097 10185 RPM 50375 b |
|
| 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 1. Findings; purpose; revisory changes; | 5 | | validation. | 6 | | (a) The Illinois Supreme Court, in Lebron v. Gottlieb | 7 | | Memorial Hospital , found that the limitations on noneconomic | 8 | | damages in medical malpractice actions that were created in | 9 | | Public Act 94-677, contained in Section 2-1706.5 of the Code of | 10 | | Civil Procedure, violate the separation of powers clause of the | 11 | | Illinois Constitution. Because Public Act 94-677 contained an | 12 | | inseverability provision, the Court held the Act to be void in | 13 | | its entirety. The Court emphasized, however, that "because the | 14 | | other provisions contained in Public Act 94-677 are deemed | 15 | | invalid solely on inseverability grounds, the legislature | 16 | | remains free to reenact any provisions it deems appropriate". | 17 | | (b) It is the purpose of this Act to reenact the provisions | 18 | | of Public Act 94-677 that amended the Illinois Insurance Code, | 19 | | and to validate certain actions taken in reliance on those | 20 | | provisions. | 21 | | (c) Public Act 94-677 amended existing Sections 155.18, | 22 | | 155.19, and 1204 of the Illinois Insurance Code and added a new | 23 | | Section 155.18a. Section 1204 was subsequently amended by | 24 | | Public Act 95-331, which was a revisory bill that combined the |
| | | SB2402 | - 2 - | LRB097 10185 RPM 50375 b |
|
| 1 | | changes made by Public Act 94-277 with those made by Public Act | 2 | | 94-677. Sections 155.18, 155.18a, and 155.19 have not been | 3 | | amended since the enactment of Public Act 94-677. | 4 | | Executive Order No. 2004-6 changed the Department of | 5 | | Insurance into
the Division of Insurance within the Department | 6 | | of Financial
and Professional Regulation. In conformance with | 7 | | that executive order,
Public Act 94-677 changed certain | 8 | | references in the affected Sections from the Director of | 9 | | Insurance to the Secretary of Financial and Professional | 10 | | Regulation. Public Act 96-811 superseded the executive order | 11 | | and re-established the Department of Insurance as a separate | 12 | | department, once again under the supervision of the Director of | 13 | | Insurance. Therefore, in reenacting these Sections, revisory | 14 | | changes have been included that conform the text to Public Act | 15 | | 96-811 by changing references to the Secretary back to the | 16 | | Director. A revisory change is also made in a reference to the | 17 | | effective date of Public Act 94-677, which is replaced by the | 18 | | actual date. | 19 | | In this Act, the text of the reenacted Sections is set | 20 | | forth as it existed at the time of the Supreme Court's | 21 | | decision, including the amendment by Public Act 95-331. | 22 | | Striking and underscoring is used only to show the revisory | 23 | | changes being made to that text. | 24 | | (d) All otherwise lawful actions taken in reasonable | 25 | | reliance on or pursuant
to the Sections re-enacted by this Act, | 26 | | as set forth in Public Act 94-677 or
subsequently amended, by |
| | | SB2402 | - 3 - | LRB097 10185 RPM 50375 b |
|
| 1 | | any officer, employee, agency, or unit of State or
local | 2 | | government or by any other person or entity, are hereby | 3 | | validated. | 4 | | With respect to actions taken in relation to matters | 5 | | arising under the
Sections re-enacted by this Act, a person is | 6 | | rebuttably presumed to have acted in
reasonable reliance on and | 7 | | pursuant to the provisions of Public Act 94-677,
as those | 8 | | provisions had been amended at the time the action was taken. | 9 | | With respect to its administration of matters arising | 10 | | under the
Sections re-enacted by this Act, the Department of | 11 | | Insurance shall continue to
apply the provisions of Public Act | 12 | | 94-677, as those provisions had been
amended at the relevant | 13 | | time. | 14 | | Section 5. The Illinois Insurance Code is amended by | 15 | | reenacting and changing Sections 155.18, 155.18a, 155.19, and | 16 | | 1204 as follows:
| 17 | | (215 ILCS 5/155.18) (from Ch. 73, par. 767.18)
| 18 | | Sec. 155.18. (a) This Section shall apply to insurance on | 19 | | risks based
upon negligence by a physician, hospital or other | 20 | | health care provider,
referred to herein as medical liability | 21 | | insurance. This Section shall not
apply to contracts of | 22 | | reinsurance, nor to any farm, county, district or
township | 23 | | mutual insurance company transacting business under an Act | 24 | | entitled
"An Act relating to local mutual district, county and |
| | | SB2402 | - 4 - | LRB097 10185 RPM 50375 b |
|
| 1 | | township insurance
companies", approved March 13, 1936, as now | 2 | | or hereafter amended, nor to
any such company operating under a | 3 | | special charter.
| 4 | | (b) The following standards shall apply to the making and | 5 | | use of rates
pertaining to all classes of medical liability | 6 | | insurance:
| 7 | | (1) Rates shall not be excessive or inadequate nor
| 8 | | shall they be unfairly discriminatory.
| 9 | | (2) Consideration shall be given, to the extent | 10 | | applicable, to past and
prospective loss experience within | 11 | | and outside this State, to a reasonable
margin for | 12 | | underwriting profit and contingencies, to past and | 13 | | prospective
expenses both countrywide and those especially | 14 | | applicable to this State,
and to all other factors, | 15 | | including judgment factors, deemed relevant within
and | 16 | | outside this State.
| 17 | | Consideration may also be given in the making and use | 18 | | of rates to dividends,
savings or unabsorbed premium | 19 | | deposits allowed or returned by companies
to their | 20 | | policyholders, members or subscribers.
| 21 | | (3) The systems of expense provisions included in the | 22 | | rates for use by
any company or group of companies may | 23 | | differ from those of other companies
or groups of companies | 24 | | to reflect the operating methods of any such company
or | 25 | | group with respect to any kind of insurance, or with | 26 | | respect to any subdivision
or combination thereof.
|
| | | SB2402 | - 5 - | LRB097 10185 RPM 50375 b |
|
| 1 | | (4) Risks may be grouped by classifications for the | 2 | | establishment of rates
and minimum premiums. | 3 | | Classification rates may be modified to produce
rates for | 4 | | individual risks in accordance with rating plans which | 5 | | establish
standards for measuring variations in hazards or | 6 | | expense provisions, or
both. Such standards may measure any | 7 | | difference among risks that have a
probable effect upon | 8 | | losses or expenses. Such classifications or modifications
| 9 | | of classifications of risks may be established based upon | 10 | | size, expense,
management, individual experience, location | 11 | | or dispersion of hazard, or
any other reasonable | 12 | | considerations and shall apply to all risks under the
same | 13 | | or substantially the same circumstances or conditions.
The | 14 | | rate for
an established classification should be related | 15 | | generally to the anticipated
loss and expense factors of | 16 | | the class.
| 17 | | (c) (1) Every company writing medical liability insurance | 18 | | shall file with
the Director of Insurance Secretary of | 19 | | Financial and Professional Regulation the rates and rating | 20 | | schedules it uses for medical
liability insurance. A rate shall | 21 | | go into effect upon filing, except as otherwise provided in | 22 | | this Section.
| 23 | | (2) If (i) 1% of a company's insureds within a specialty or | 24 | | 25 of the company's insureds (whichever is greater) request a | 25 | | public hearing, (ii) the Director Secretary at his or her | 26 | | discretion decides to convene a public hearing, or (iii) the |
| | | SB2402 | - 6 - | LRB097 10185 RPM 50375 b |
|
| 1 | | percentage increase in a company's rate is greater than 6%, | 2 | | then the Director Secretary shall convene a public hearing in | 3 | | accordance with this paragraph (2). The Director Secretary | 4 | | shall notify the public of any application by an insurer for a | 5 | | rate increase to which this paragraph (2) applies. A public | 6 | | hearing under this paragraph (2) must be concluded within 90 | 7 | | days after the request, decision, or increase that gave rise to | 8 | | the hearing. The Director Secretary may, by order, adjust a | 9 | | rate or take any other appropriate action at the conclusion of | 10 | | the hearing. | 11 | | (3) A rate filing shall occur upon a company's commencement | 12 | | of medical liability insurance business in this State
and | 13 | | thereafter as often as the rates
are changed or amended.
| 14 | | (4) For the purposes of this Section, any change in premium | 15 | | to the company's
insureds as a result of a change in the | 16 | | company's base rates or a change
in its increased limits | 17 | | factors shall constitute a change in rates and shall
require a | 18 | | filing with the Director Secretary .
| 19 | | (5) It shall be certified in such filing by an officer of | 20 | | the company
and a qualified actuary that the company's rates
| 21 | | are based on sound actuarial
principles and are not | 22 | | inconsistent with the company's experience.
The Director | 23 | | Secretary may request any additional statistical data and other | 24 | | pertinent information necessary to determine the manner the | 25 | | company used to set the filed rates and the reasonableness of | 26 | | those rates. This data and information shall be made available, |
| | | SB2402 | - 7 - | LRB097 10185 RPM 50375 b |
|
| 1 | | on a company-by-company basis, to the general public.
| 2 | | (d) If after
a public hearing the Director Secretary finds:
| 3 | | (1) that any rate, rating plan or rating system | 4 | | violates the provisions
of this Section applicable to it, | 5 | | he shall issue an order to the company which
has been the | 6 | | subject of the hearing specifying in what respects such | 7 | | violation
exists and, in that order, may adjust the rate;
| 8 | | (2) that the violation of any of the provisions of this | 9 | | Section by any company which has been the subject of the | 10 | | hearing was wilful or that any company has repeatedly | 11 | | violated any provision of this Section, he
may take either | 12 | | or both of the following actions: | 13 | | (A) Suspend or revoke, in whole or in part, the | 14 | | certificate of authority
of such company with respect | 15 | | to the class of insurance which has been the
subject of | 16 | | the hearing.
| 17 | | (B) Impose a penalty of up to $1,000 against the | 18 | | company for each violation. Each day during which a | 19 | | violation occurs constitutes a separate violation.
| 20 | | The burden is on the company to justify the rate or | 21 | | proposed rate at the public hearing.
| 22 | | (e) Every company writing medical liability insurance in | 23 | | this State shall offer to each of its medical liability | 24 | | insureds the option to make premium payments in quarterly | 25 | | installments as prescribed by and filed with the Director | 26 | | Secretary . This offer shall be included in the initial offer or |
| | | SB2402 | - 8 - | LRB097 10185 RPM 50375 b |
|
| 1 | | in the first policy renewal occurring after August 25, 2005 the | 2 | | effective date of this amendatory Act of the 94th General | 3 | | Assembly , but no earlier than January 1, 2006.
| 4 | | (f) Every company writing medical liability insurance is | 5 | | encouraged, but not required, to offer the opportunity for | 6 | | participation in a plan offering deductibles to its medical | 7 | | liability insureds. Any plan to offer deductibles shall be | 8 | | filed with the Department. | 9 | | (g) Every company writing medical liability insurance is | 10 | | encouraged, but not required, to offer their medical liability | 11 | | insureds a plan
providing premium discounts for participation | 12 | | in risk
management activities. Any
such plan shall be reported | 13 | | to the Department.
| 14 | | (h) A company writing medical liability insurance in | 15 | | Illinois must give 180 days' notice before the company | 16 | | discontinues the writing of medical liability insurance in | 17 | | Illinois.
| 18 | | (Source: P.A. 94-677, eff. 8-25-05.)
| 19 | | (215 ILCS 5/155.18a) | 20 | | Sec. 155.18a. Professional Liability Insurance Resource | 21 | | Center. The Director of Insurance Secretary of Financial and | 22 | | Professional Regulation shall establish a Professional | 23 | | Liability Insurance Resource Center on the Department's | 24 | | Internet website containing the name, telephone number, and | 25 | | base rates of each licensed company providing medical liability |
| | | SB2402 | - 9 - | LRB097 10185 RPM 50375 b |
|
| 1 | | insurance and the name, address, and telephone number of each | 2 | | producer who sells medical liability insurance and the name of | 3 | | each licensed company for which the producer sells medical | 4 | | liability insurance. Each company and producer shall submit the | 5 | | information to the Department on or before September 30 of each | 6 | | year in order to be listed on the website. Hyperlinks to | 7 | | company websites shall be included, if available. The | 8 | | publication of the information on the Department's website | 9 | | shall commence on January 1, 2006. The Department shall update | 10 | | the information on the Professional Liability Insurance | 11 | | Resource Center at least annually.
| 12 | | (Source: P.A. 94-677, eff. 8-25-05.)
| 13 | | (215 ILCS 5/155.19) (from Ch. 73, par. 767.19)
| 14 | | Sec. 155.19. All claims filed after December 31, 1976 with | 15 | | any insurer
and all suits filed after December 31, 1976 in any | 16 | | court in this State,
alleging liability on the part of any | 17 | | physician, hospital or other health
care provider for medically | 18 | | related injuries, shall be reported to the Director of | 19 | | Insurance Secretary of Financial and Professional Regulation | 20 | | in such form and under such terms and conditions as may be
| 21 | | prescribed by the Director Secretary . In addition, and | 22 | | notwithstanding any other provision of law to the contrary, any | 23 | | insurer, stop loss insurer, captive insurer, risk retention | 24 | | group, county risk retention trust, religious or charitable | 25 | | risk pooling trust, surplus line insurer, or other entity |
| | | SB2402 | - 10 - | LRB097 10185 RPM 50375 b |
|
| 1 | | authorized or permitted by law to provide medical liability | 2 | | insurance in this State shall report to the Director Secretary ,
| 3 | | in such form and under such terms and conditions as may be
| 4 | | prescribed by the Director Secretary , all claims filed
after | 5 | | December 31, 2005 and all suits filed
after December 31, 2005 | 6 | | in any court in this State alleging liability on the part of | 7 | | any physician, hospital, or health
care provider for medically | 8 | | related injuries. Each clerk of the circuit court shall provide | 9 | | to the Director Secretary such information as the Director | 10 | | Secretary may deem necessary to verify the accuracy and | 11 | | completeness of reports made to the Director Secretary under | 12 | | this Section. The Director Secretary shall maintain complete | 13 | | and accurate
records of all claims and suits including their | 14 | | nature, amount, disposition
(categorized by verdict, | 15 | | settlement, dismissal, or otherwise and including disposition | 16 | | of any post-trial motions and types of damages awarded, if any, | 17 | | including but not limited to economic damages and non-economic | 18 | | damages) and other information as he may deem useful or | 19 | | desirable in observing and
reporting on health care provider | 20 | | liability trends in this State. Records received by the | 21 | | Director Secretary under this Section shall be available to the | 22 | | general public; however, the records made available to the | 23 | | general public shall not include the names or addresses of the | 24 | | parties to any claims or suits. The Director Secretary
shall | 25 | | release to appropriate disciplinary and licensing agencies any | 26 | | such
data or information which may assist such agencies in
|
| | | SB2402 | - 11 - | LRB097 10185 RPM 50375 b |
|
| 1 | | improving the quality of health care or which may be useful to | 2 | | such agencies
for the purpose of professional discipline.
| 3 | | With due regard for appropriate maintenance of the | 4 | | confidentiality thereof,
the Director Secretary
shall
release, | 5 | | on an annual basis, to the Governor, the General
Assembly and | 6 | | the general public statistical reports based on such data and | 7 | | information.
| 8 | | If the Director Secretary finds that any entity required to | 9 | | report information in its possession under this Section has | 10 | | violated any provision of this Section by filing late, | 11 | | incomplete, or inaccurate reports, the Director Secretary may | 12 | | fine the entity up to $1,000 for each offense. Each day during | 13 | | which a violation occurs constitutes a separate offense.
| 14 | | The Director Secretary may promulgate such rules and | 15 | | regulations as may be necessary
to carry out the provisions of | 16 | | this Section.
| 17 | | (Source: P.A. 94-677, eff. 8-25-05.)
| 18 | | (215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
| 19 | | Sec. 1204. (A) The Director Secretary shall promulgate | 20 | | rules and regulations
which shall require each insurer licensed | 21 | | to write property or casualty
insurance in the State and each | 22 | | syndicate doing business on the Illinois
Insurance Exchange to | 23 | | record and report its loss and expense experience
and other | 24 | | data as may be necessary to assess the relationship of
| 25 | | insurance premiums and related income as compared to insurance |
| | | SB2402 | - 12 - | LRB097 10185 RPM 50375 b |
|
| 1 | | costs and
expenses. The Director Secretary may designate one or | 2 | | more rate service
organizations or advisory organizations to | 3 | | gather and compile such
experience and data. The Director | 4 | | Secretary shall require each insurer licensed to
write property | 5 | | or casualty insurance in this State and each syndicate doing
| 6 | | business on the Illinois Insurance Exchange to submit a report, | 7 | | on
a form furnished by the Director Secretary , showing its | 8 | | direct writings in this
State and companywide.
| 9 | | (B) Such report required by subsection (A) of this Section | 10 | | may include,
but not be limited to, the following specific | 11 | | types of insurance written by
such insurer:
| 12 | | (1) Political subdivision liability insurance reported | 13 | | separately in the
following categories:
| 14 | | (a) municipalities;
| 15 | | (b) school districts;
| 16 | | (c) other political subdivisions;
| 17 | | (2) Public official liability insurance;
| 18 | | (3) Dram shop liability insurance;
| 19 | | (4) Day care center liability insurance;
| 20 | | (5) Labor, fraternal or religious organizations | 21 | | liability insurance;
| 22 | | (6) Errors and omissions liability insurance;
| 23 | | (7) Officers and directors liability insurance | 24 | | reported separately as
follows:
| 25 | | (a) non-profit entities;
| 26 | | (b) for-profit entities;
|
| | | SB2402 | - 13 - | LRB097 10185 RPM 50375 b |
|
| 1 | | (8) Products liability insurance;
| 2 | | (9) Medical malpractice insurance;
| 3 | | (10) Attorney malpractice insurance;
| 4 | | (11) Architects and engineers malpractice insurance; | 5 | | and
| 6 | | (12) Motor vehicle insurance reported separately for | 7 | | commercial and
private passenger vehicles as follows:
| 8 | | (a) motor vehicle physical damage insurance;
| 9 | | (b) motor vehicle liability insurance.
| 10 | | (C) Such report may include, but need not be limited to the | 11 | | following data,
both
specific to this State and companywide, in | 12 | | the aggregate or by type of
insurance for the previous year on | 13 | | a calendar year basis:
| 14 | | (1) Direct premiums written;
| 15 | | (2) Direct premiums earned;
| 16 | | (3) Number of policies;
| 17 | | (4) Net investment income, using appropriate estimates | 18 | | where necessary;
| 19 | | (5) Losses paid;
| 20 | | (6) Losses incurred;
| 21 | | (7) Loss reserves:
| 22 | | (a) Losses unpaid on reported claims;
| 23 | | (b) Losses unpaid on incurred but not reported | 24 | | claims;
| 25 | | (8) Number of claims:
| 26 | | (a) Paid claims;
|
| | | SB2402 | - 14 - | LRB097 10185 RPM 50375 b |
|
| 1 | | (b) Arising claims;
| 2 | | (9) Loss adjustment expenses:
| 3 | | (a) Allocated loss adjustment expenses;
| 4 | | (b) Unallocated loss adjustment expenses;
| 5 | | (10) Net underwriting gain or loss;
| 6 | | (11) Net operation gain or loss, including net | 7 | | investment income;
| 8 | | (12) Any other information requested by the Director | 9 | | Secretary .
| 10 | | (C-3) Additional information by an advisory organization | 11 | | as defined in Section 463 of this Code. | 12 | | (1) An advisory organization as defined in Section 463 | 13 | | of this Code shall report annually the following | 14 | | information in such format as may be prescribed by the | 15 | | Director Secretary : | 16 | | (a) paid and incurred losses for each of the past | 17 | | 10 years; | 18 | | (b) medical payments and medical charges, if | 19 | | collected, for each of the past 10 years; | 20 | | (c) the following indemnity payment information:
| 21 | | cumulative payments by accident year by calendar year | 22 | | of
development. This array will show payments made and | 23 | | frequency of claims in the following categories: | 24 | | medical only, permanent partial disability (PPD), | 25 | | permanent total
disability (PTD), temporary total | 26 | | disability (TTD), and fatalities; |
| | | SB2402 | - 15 - | LRB097 10185 RPM 50375 b |
|
| 1 | | (d) injuries by frequency and severity; | 2 | | (e) by class of employee. | 3 | | (2) The report filed with the Director Secretary of | 4 | | Financial and Professional Regulation under paragraph (1) | 5 | | of this
subsection (C-3) shall be made available, on an | 6 | | aggregate basis, to the General
Assembly and to the general | 7 | | public. The identity of the petitioner, the respondent, the | 8 | | attorneys, and the insurers shall not be disclosed.
| 9 | | (3) Reports required under this
subsection (C-3)
shall | 10 | | be filed with the Director Secretary no later than | 11 | | September 1 in 2006 and no later than September 1 of each | 12 | | year thereafter.
| 13 | | (C-5) Additional information required from medical | 14 | | malpractice insurers. | 15 | | (1) In addition to the other requirements of this | 16 | | Section, the following information shall be included in the | 17 | | report required by subsection (A) of this Section in such | 18 | | form and under such terms and conditions as may be | 19 | | prescribed by the Director Secretary : | 20 | | (a) paid and incurred losses by county for each of | 21 | | the past 10 policy years; | 22 | | (b) earned exposures by ISO code, policy type, and | 23 | | policy year by county for each of the past 10 years; | 24 | | and | 25 | | (c) the following actuarial information: | 26 | | (i) Base class and territory equivalent |
| | | SB2402 | - 16 - | LRB097 10185 RPM 50375 b |
|
| 1 | | exposures by report year by relative accident | 2 | | year. | 3 | | (ii) Cumulative loss array by accident year by | 4 | | calendar year of development. This array will show | 5 | | frequency of claims in the following categories: | 6 | | open, closed with indemnity (CWI), closed with | 7 | | expense (CWE), and closed no pay (CNP); paid | 8 | | severity in the following categories: indemnity | 9 | | and allocated loss adjustment expenses (ALAE) on | 10 | | closed claims;
and indemnity and expense reserves | 11 | | on pending claims. | 12 | | (iii) Cumulative loss array by report year by | 13 | | calendar year of development. This array will show | 14 | | frequency of claims in the following categories: | 15 | | open, closed with indemnity (CWI), closed with | 16 | | expense (CWE), and closed no pay (CNP); paid | 17 | | severity in the following categories: indemnity | 18 | | and allocated loss adjustment expenses (ALAE) on | 19 | | closed claims; and indemnity and expense reserves | 20 | | on pending claims. | 21 | | (iv) Maturity year and tail factors. | 22 | | (v) Any expense, contingency ddr (death, | 23 | | disability, and retirement), commission, tax, | 24 | | and/or off-balance factors. | 25 | | (2) The following information must also be annually | 26 | | provided to the Department:
|
| | | SB2402 | - 17 - | LRB097 10185 RPM 50375 b |
|
| 1 | | (a) copies of the company's reserve and surplus | 2 | | studies; and | 3 | | (b) consulting actuarial report and data | 4 | | supporting the company's rate
filing. | 5 | | (3) All information collected by the Director | 6 | | Secretary under paragraphs (1) and (2) shall be made | 7 | | available, on a company-by-company basis, to the General | 8 | | Assembly and the general public. This provision shall | 9 | | supersede any other provision of State law that may | 10 | | otherwise protect such information from public disclosure | 11 | | as confidential.
| 12 | | (D) In addition to the information which may be requested | 13 | | under
subsection (C), the Director Secretary may also request | 14 | | on a companywide, aggregate
basis, Federal Income Tax | 15 | | recoverable, net realized capital gain or loss,
net unrealized | 16 | | capital gain or loss, and all other expenses not requested
in | 17 | | subsection (C) above.
| 18 | | (E) Violations - Suspensions - Revocations.
| 19 | | (1) Any company or person
subject to this Article, who | 20 | | willfully or repeatedly fails to observe or who
otherwise | 21 | | violates any of the provisions of this Article or any rule | 22 | | or
regulation promulgated by the Director Secretary under | 23 | | authority of this Article or any
final order of the | 24 | | Director Secretary entered under the authority of this | 25 | | Article shall
by civil penalty forfeit to the State of | 26 | | Illinois a sum not to exceed
$2,000. Each day during which |
| | | SB2402 | - 18 - | LRB097 10185 RPM 50375 b |
|
| 1 | | a violation occurs constitutes a
separate
offense.
| 2 | | (2) No forfeiture liability under paragraph (1) of this | 3 | | subsection may
attach unless a written notice of apparent | 4 | | liability has been issued by the Director
Secretary and | 5 | | received by the respondent, or the Director Secretary sends | 6 | | written
notice of apparent liability by registered or | 7 | | certified mail, return
receipt requested, to the last known | 8 | | address of the respondent. Any
respondent so notified must | 9 | | be granted an opportunity to request a hearing
within 10 | 10 | | days from receipt of notice, or to show in writing, why he | 11 | | should
not be held liable. A notice issued under this | 12 | | Section must set forth the
date, facts and nature of the | 13 | | act or omission with which the respondent is
charged and | 14 | | must specifically identify the particular provision of | 15 | | this
Article, rule, regulation or order of which a | 16 | | violation is charged.
| 17 | | (3) No forfeiture liability under paragraph (1) of this | 18 | | subsection may
attach for any violation occurring more than | 19 | | 2 years prior to the date of
issuance of the notice of | 20 | | apparent liability and in no event may the total
civil | 21 | | penalty forfeiture imposed for the acts or omissions set | 22 | | forth in any
one notice of apparent liability exceed | 23 | | $100,000.
| 24 | | (4) All administrative hearings conducted pursuant to | 25 | | this Article are
subject to 50 Ill. Adm. Code 2402 and all | 26 | | administrative hearings are
subject to the Administrative |
| | | SB2402 | - 19 - | LRB097 10185 RPM 50375 b |
|
| 1 | | Review Law.
| 2 | | (5) The civil penalty forfeitures provided for in this | 3 | | Section are
payable to the General Revenue Fund of the | 4 | | State of Illinois, and may be
recovered in a civil suit in | 5 | | the name of the State of Illinois brought in
the Circuit | 6 | | Court in Sangamon County or in the Circuit Court of the | 7 | | county
where the respondent is domiciled or has its | 8 | | principal operating office.
| 9 | | (6) In any case where the Director Secretary issues a | 10 | | notice of apparent liability
looking toward the imposition | 11 | | of a civil penalty forfeiture under this
Section that fact | 12 | | may not be used in any other proceeding before the Director
| 13 | | Secretary to the prejudice of the respondent to whom the | 14 | | notice was issued,
unless (a) the civil penalty forfeiture | 15 | | has been paid, or (b) a court has
ordered payment of the | 16 | | civil penalty forfeiture and that order has become
final.
| 17 | | (7) When any person or company has a license or | 18 | | certificate of authority
under this Code and knowingly | 19 | | fails or refuses to comply with a lawful
order of the | 20 | | Director Secretary requiring compliance with this Article, | 21 | | entered after
notice and hearing, within the period of time | 22 | | specified in the order, the Director
Secretary may, in | 23 | | addition to any other penalty or authority
provided, revoke | 24 | | or refuse to renew the license or certificate of authority
| 25 | | of such person
or company, or may suspend the license or | 26 | | certificate of authority
of such
person or company until |
| | | SB2402 | - 20 - | LRB097 10185 RPM 50375 b |
|
| 1 | | compliance with such order has been obtained.
| 2 | | (8) When any person or company has a license or | 3 | | certificate of authority
under this Code and knowingly | 4 | | fails or refuses to comply with any
provisions of this | 5 | | Article, the Director Secretary may, after notice and | 6 | | hearing, in
addition to any other penalty provided, revoke | 7 | | or refuse to renew the
license or certificate of authority | 8 | | of such person or company, or may
suspend the license or | 9 | | certificate of authority of such person or company,
until | 10 | | compliance with such provision of this Article has been | 11 | | obtained.
| 12 | | (9) No suspension or revocation under this Section may | 13 | | become effective
until 5 days from the date that the notice | 14 | | of suspension or revocation has
been personally delivered | 15 | | or delivered by registered or certified mail to
the company | 16 | | or person. A suspension or revocation under this Section is
| 17 | | stayed upon the filing, by the company or person, of a | 18 | | petition for
judicial review under the Administrative | 19 | | Review Law.
| 20 | | (Source: P.A. 94-277, eff. 7-20-05; 94-677, eff. 8-25-05; | 21 | | 95-331, eff. 8-21-07.)
| 22 | | Section 97. Severability. The provisions of this Act are | 23 | | severable under Section 1.31 of the Statute on Statutes.
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
|
|