State of Illinois
92nd General Assembly
Legislation

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92_HB0584

 
                                               LRB9202593JSpc

 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 403A as follows:

 6        (215 ILCS 5/403A) (from Ch. 73, par. 1015A)
 7        Sec. 403A.  Violations;  notice  of  apparent  liability;
 8    limitation of forfeiture liability.
 9        (1)  Any  company  or person, agent or broker, officer or
10    director and any other person subject to this Code and as may
11    be defined in Section  2  of  this  Code,  who  willfully  or
12    repeatedly  fails to observe or who otherwise violates any of
13    the provisions  of  this  Code  or  any  rule  or  regulation
14    promulgated  by  the Director under authority of this Code or
15    any final order of the Director entered under  the  authority
16    of  this  Code shall by civil penalty forfeit to the State of
17    Illinois a sum not to exceed $1,000.  Each day during which a
18    violation occurs constitutes a separate offense.   The  civil
19    penalty  provided  for  in  this  Section shall apply only to
20    those Sections of this  Code  or  administrative  regulations
21    thereunder that do not otherwise provide for a monetary civil
22    penalty.
23        (2)  No  forfeiture liability under paragraph (1) of this
24    Section may  attach  unless  a  written  notice  of  apparent
25    liability has been issued by the Director and received by the
26    respondent,  or the Director sends written notice of apparent
27    liability by registered or  certified  mail,  return  receipt
28    requested,  to the last known address of the respondent.  Any
29    respondent so notified must  be  granted  an  opportunity  to
30    request  a  hearing within 10 days from receipt of notice, or
31    to show in writing, why he should  not  be  held  liable.   A
 
                            -2-                LRB9202593JSpc
 1    notice  issued  under  this  Section must set forth the date,
 2    facts and nature of  the  act  or  omission  with  which  the
 3    respondent  is  charged  and  must  specifically identify the
 4    particular provision of the Code, rule, regulation  or  order
 5    of which a violation is charged.
 6        (3)  No  forfeiture liability under paragraph (1) of this
 7    Section may attach for any violation occurring  more  than  2
 8    years prior to the date of issuance of the notice of apparent
 9    liability  and  in  no  event  may  the  total  civil penalty
10    forfeiture imposed for the acts or omissions set forth in any
11    one notice of apparent liability exceed $250,000.
12        (4)  The civil penalty forfeitures provided for  in  this
13    Section  are payable to the General Revenue Fund of the State
14    of Illinois, and may be recovered in a civil suit in the name
15    of the State of Illinois brought  in  the  Circuit  Court  in
16    Sangamon  County, or in the Circuit Court of the county where
17    the respondent is domiciled or has  its  principal  operating
18    office.
19        (5)  In  any  case  where the Director issues a notice of
20    apparent liability looking toward the imposition of  a  civil
21    penalty  forfeiture  under this Section, that fact may not be
22    used in any other  proceeding  before  the  Director  to  the
23    prejudice  of  the  respondent to whom the notice was issued,
24    unless (a) the civil penalty forfeiture has been paid, or (b)
25    a court has ordered payment of the civil  penalty  forfeiture
26    and that order has become final.
27        (6)  Notwithstanding    any   after-the-fact   compliance
28    procedures or any other factor, the amount of a civil penalty
29    or fine imposed for violation of the insurance laws  of  this
30    State  may  not  be  reduced by administrative action to less
31    than 85% of the civil penalty or fine initially imposed.
32    (Source: P.A. 86-938.)

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