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(215 ILCS 105/12)
(from Ch. 73, par. 1312)
Deficit or surplus.
a. If premiums or other receipts by the
Board exceed the amount required for the
of the Plan, including actual losses and administrative
expenses of the Plan, the Board shall direct that the excess be held at
interest, in a bank designated by the Board, or used to offset future
losses or to reduce Plan premiums. In this
subsection, the term "future losses" includes reserves for incurred but not
b. Any deficit incurred or expected to be incurred on behalf of eligible
persons who qualify for Plan coverage under Section 7 of this Act shall be
recouped by an
appropriation made by the General Assembly.
c. For the purposes of this Section, a deficit shall be incurred when
anticipated losses and incurred but not reported claims expenses exceed
anticipated income from earned premiums net of administrative expenses.
d. Any deficit incurred or expected to be incurred on behalf of federally
eligible individuals who qualify for Plan coverage under Section 15 of this Act
shall be recouped by an assessment of all insurers made in accordance with the
provisions of this Section. The Board shall within 90 days of the effective
date of this amendatory Act of 1997 and within the first quarter of each fiscal
year thereafter assess all insurers for the anticipated deficit in accordance
with the provisions of this Section. The Board may also make additional
assessments no more than 4 times a year to fund unanticipated deficits,
implementation expenses, and cash flow needs.
e. An insurer's assessment shall be determined by multiplying the total
assessment, as determined in subsection d. of this Section, by a fraction, the
numerator of which equals that insurer's direct Illinois premiums during the
preceding calendar year and the denominator of which equals the total of all
insurers' direct Illinois premiums. The Board may exempt those insurers whose
share as determined under this subsection would be so minimal as to not exceed
the estimated cost of levying the assessment.
f. The Board shall charge and collect from each insurer the amounts
determined to be due under this Section. The assessment shall be billed by
Board invoice based upon the insurer's direct Illinois premium income as shown
in its annual
statement for the preceding calendar year as filed with the Director. The
invoice shall be due upon
receipt and must be paid no later than 30 days after receipt by the insurer.
g. When an insurer fails to pay the full amount of any assessment of $100 or
due under this Section there shall be added to the amount due as a penalty the
greater of $50 or an amount equal to 5% of the deficiency for each month or
part of a month that the deficiency remains unpaid.
h. Amounts collected under this Section shall be paid to the Board for
deposit into the Plan Fund authorized by Section 3 of this Act.
i. An insurer may petition the Director for an abatement or deferment of
all or part of an assessment imposed by the Board. The Director may abate or
defer, in whole or in part, the assessment if, in the opinion of the Director,
payment of the assessment would endanger the ability of the insurer to fulfill
its contractual obligations. In the event an assessment against an insurer is
abated or deferred in whole or in part, the amount by which the assessment is
abated or deferred shall be assessed against the other insurers in a manner
consistent with the basis for assessments set forth in this subsection. The
insurer receiving a deferment shall remain liable to the Plan for the
deficiency for 4 years.
j. The Board shall establish procedures for appeal by any insurer subject
to assessment pursuant to this
Section. Such procedures shall require that:
(1) Any insurer that wishes to appeal all or any part
of an assessment made pursuant to this Section shall first pay the amount of the assessment as set forth in the invoice provided by the Board within the time provided in subsection f. of this Section. The Board shall hold such payments in a separate interest-bearing account. The payments shall be accompanied by a statement in writing that the payment is made under appeal. The statement shall specify the grounds for the appeal. The insurer may be represented in its appeal by counsel or other representative of its choosing.
(2) Within 90 days following the payment of an
assessment under appeal by any insurer, the Board shall notify the insurer or representative designated by the insurer in writing of its determination with respect to the appeal and the basis or bases for that determination unless the Board notifies the insurer that a reasonable amount of additional time is required to resolve the issues raised by the appeal.
(3) The Board shall refer to the Director any
question concerning the amount of direct Illinois premium income as shown in an insurer's annual statement for the preceding calendar year on file with the Director on the invoice date of the assessment. Unless additional time is required to resolve the question, the Director shall within 60 days report to the Board in writing his determination respecting the amount of direct Illinois premium income on file on the invoice date of the assessment.
(4) In the event the Board determines that the
insurer is entitled to a refund, the refund shall be paid within 30 days following the date upon which the Board makes its determination, together with the accrued interest. Interest on any refund due an insurer shall be paid at the rate actually earned by the Board on the separate account.
(5) The amount of any such refund shall then be
assessed against all insurers in a manner consistent with the basis for assessment as otherwise authorized by this Section.
(6) The Board's determination with respect to any
appeal received pursuant to this subsection shall be a final administrative decision as defined in Section 3-101 of the Code of Civil Procedure. The provisions of the Administrative Review Law shall apply to and govern all proceedings for the judicial review of final administrative decisions of the Board.
(7) If an insurer fails to appeal an assessment in
accordance with the provisions of this subsection, the insurer shall be deemed to have waived its right of appeal.
The provisions of this subsection apply to all assessments made in any
calendar year ending on or after December 31, 1997.
(Source: P.A. 90-30, eff. 7-1-97; 90-567, eff. 1-23-98