90th General Assembly
Summary of SB0659
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Short description: 
INS CD-PRIVILEGE TAX-HMO-IIRC                                              

Synopsis of Bill as introduced:
        Amends the Insurance Exchange Article of the  Illinois  Insurance      
   Code.    Authorizes  the  exchange  to  establish  annual fees for the      
   admission of syndicates and limited  syndicates.   Provides  that  the      
   Director  of  Insurance  shall,  rather  than  may, be responsible for      
   examining the financial records of the Exchange and  related  parties.      
   Requires  the  Exchange to file an annual financial statement with the      
   Department  of  Insurance.   Requires  syndicates  to  file  quarterly      
   statements, actuarial opinions, and audited financial reports with the      
   Department and the Board.  Provides that liquidation expenses  of  the      
   Illinois  Insurance  Exchange  Immediate  Access  Association  and any      
   liquidator shall be paid  from  the  insolvent  syndicate's  trust  or      
   custodial account. Abolishes limit on examination fees.  Provides that      
   the Board of Trustees of the exchange may adopt rules.  Authorizes the      
   Department of Insurance to disapprove a rule.  Provides that all rules      
   adopted  before  the  effective  date  of this amendatory Act shall be      
   deemed to have been approved. Effective January 1, 1998.                    
        HOUSE AMENDMENT NO. 1. (House recedes May 22, 1998)                    
          Adds reference to:                                                   
          215 ILCS 5/534.3                from Ch. 73, par. 1065.84-3          
          215 ILCS 5/534.4                from Ch. 73, par. 1065.84-4          
          215 ILCS 5/538.4                from Ch. 73, par. 1065.88-4          
          215 ILCS 5/545                  from Ch. 73, par. 1065.95            
          215 ILCS 5/546                  from Ch. 73, par. 1065.96            
        Amends the Illinois Insurance Code concerning the Illinois In-         
   surance Guaranty Fund. Provides that "covered claim" does not include       
   certain third party claims against insurers. Repeals certain pro-           
   visions concerning exhaustion of claims. Provides that an insured or        
   claimant shall be required to first exhaust all coverage provided by        
   any other insurance policy if the claim arises from the same facts,         
   injury, or loss that gave rise to the covered claim against the Fund.       
   Provides that the Fund's obligation shall be reduced by the amount re-      
   covered or recoverable, whichever is greater, under the other in-           
   surance policy. Provides that to the extent the Fund's obligation           
   is reduced, the liability of person insured by the insolvent insurer's      
   policy for the claim shall be reduced in the same amount. Makes other       
   changes. Effective immediately, except that provisions concerning the       
   insurance exchange take effect January 1, 1998.                             
        CONFERENCE COMMITTEE REPORT NO. 1.                                     
        Recommends that the House recede from H-am 1.                          
        Recommends that the bill be further amended as follows:                
          Deletes reference to:                                                
          215 ILCS 5/107.05               from Ch. 73, par. 719.05             
          215 ILCS 5/107.07               from Ch. 73, par. 719.07             
          215 ILCS 5/107.12               from Ch. 73, par. 719.12             
          215 ILCS 5/107.13               from Ch. 73, par. 719.13             
          215 ILCS 5/107.13a              from Ch. 73, par. 719.13a            
          215 ILCS 5/107.14               from Ch. 73, par. 719.14             
          215 ILCS 5/107.15b new                                               
          215 ILCS 5/107.27               from Ch. 73, par. 719.27             
          215 ILCS 5/107.23 rep.                                               
          215 ILCS 5/534.3                from Ch. 73, par. 1065.84-3          
          215 ILCS 5/534.4                from Ch. 73, par. 1065.84-4          
          215 ILCS 5/538.4                from Ch. 73, par. 1065.88-4          
          215 ILCS 5/545                  from Ch. 73, par. 1065.95            
          215 ILCS 5/546                  from Ch. 73, par. 1065.96            
          Adds reference to:                                                   
          215 ILCS 5/408                  from Ch. 73, par. 1020               
          215 ILCS 5/409                  from Ch. 73, par. 1021               
          215 ILCS 5/444                  from Ch. 73, par. 1056               
          215 ILCS 5/444.1                from Ch. 73, par. 1056.1             
          215 ILCS 5/531.13               from Ch. 73, par. 1065.80-13         
          215 ILCS 5/408.1                from Ch. 73, par. 1020.1             
          215 ILCS 110/43                 from Ch. 32, par. 690.43             
          215 ILCS 120/15                 from Ch. 73, par. 1265               
          215 ILCS 125/5-3                from Ch. 111 1/2, par. 1411.2        
          215 ILCS 130/4003               from Ch. 73, par. 1504-3             
        Replaces the title and  everything  after  the  enacting  clause.      
   Amends  the  Illinois  Insurance  Code.  Imposes as of July 1, 1998, a      
   privilege tax on health maintenance organizations and as of January 1,      
   1998, a privilege tax on all other insurers.  Establishes a  tax  rate      
   of  0.4%  of  net  taxable  written  premium  for  accident and health      
   insurance and a tax rate of 0.5% of net taxable  written  premium  for      
   all  other  types  of  insurance.  Increases financial regulation fees      
   imposed  on  domestic,  alien,  and  foreign  companies  relating   to      
   examinations of a company's financial condition and to the expenses of      
   the Interstate Insurance Receivership Commission. Amends various other      
   insurance  regulatory  Acts  to  provide  that the privilege taxes are      
   applicable  to  insurers  organized  under   those   Acts.   Effective      
Last action on Bill: PUBLIC ACT.............................. 90-0583

   Last action date: 98-05-29

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   0


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