HB4147 101ST GENERAL ASSEMBLY

LRB101 16168 BMS 65537 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4147

Introduced 1/22/2020, by Rep. Jennifer Gong-Gershowitz

SYNOPSIS AS INTRODUCED:

215 ILCS 5/351A-7.5 new

Amends the Illinois Insurance Code. Provides that issuers of all long-term care policies issued, amended, renewed, or delivered after the effective date of the amendatory Act must submit all proposed rate changes to the Director of Insurance for approval. Provides that the Director shall disapprove of rate increases he or she does not find to be reasonable in relation to benefits under the policy and that all rates are subject to all minimum loss ratio requirements under the Illinois Administrative Code. Requires the Department of Insurance to accept comments on specified rates and, on and after January 1, 2021, to submit an annual report regarding long-term rate changes in the Illinois market to the General Assembly. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by adding Section 351A-7.5 as follows:

(215 ILCS 5/351A-7.5 new)

Sec. 351A-7.5. Rate approval and transparency.

(a) Issuers of all long-term care policies issued, amended, renewed, or delivered after the effective date of this amendatory Act of the 101st General Assembly must submit all proposed rate changes for Director approval. The Director shall disapprove of rate increases he or she does not find to be reasonable in relation to benefits under the policy provided. Additionally, all rates are subject to all minimum loss ratio requirements as outlined in the Illinois Administrative Code pursuant to Section 351A-11 of this Code.

(b) The Department shall accept comments on all rates subject to this Section and, on and after January 1, 2021, shall submit an annual report to the General Assembly regarding long-term rate changes in the Illinois market.

Section 99. Effective date. This Act takes effect upon becoming law.