Senate Sponsors: MADIGAN,R. House Sponsors: BRADY-MAUTINO 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 immediately. 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 END OF INQUIRY Full Text Bill Status