Illinois General Assembly - Bill Status for SB 1737

Amends the Illinois Insurance Code in provisions concerning credit allowed a domestic ceding insurer. Provides that the assuming insurer shall provide or make certain information to be reported to the Director of Insurance available to the ceding insurer and that the assuming insurer may decline to release trade secrets or commercially sensitive information that would qualify as exempt from disclosure under the Freedom of Information Act. With regard to an assuming insurer's trust fund, provides that not later than February 28 of each year, the assuming insurer's chief executive officer or chief financial officer shall certify to the Director that the trust fund contains funds in an amount not less than the assuming insurer's liabilities attributable to reinsurance ceded by U.S. ceding insurers, and in addition, a trusteed surplus of not less than $20,000,000. Permits a reduction in the required trusteed surplus in specified circumstances. Provides that in the event that the provision concerning the reduction in the required trusteed surplus applies to the trust, the assuming insurer's chief executive officer or chief financial officer shall then certify to the Director that the trust fund contains funds in an amount not less than the assuming insurer's liabilities attributable to reinsurance ceded by U.S. ceding insurers, and in addition, a reduced trusteed surplus of not less than the amount that has been authorized by the regulatory authority having principal regulatory oversight of the trust. Makes changes to provisions concerning financial strength ratings. Sets forth provisions concerning downgrades by rating agencies, the Director's authority, upgrading the rating of a certified reinsurer, and the revocation of the certification of a certified reinsurer. Makes other changes.

Replaces everything after the enacting clause. Creates the Short-Term, Limited-Duration Health Insurance Coverage Act. Provides disclosure requirements for policies, applications, and sales and marketing materials for short-term, limited-duration health insurance policies. Requires coverage subject to the Act to be approved by the Department of Insurance before it is issued or delivered. Requires a health insurance issuer who intends to deliver or issue a short-term, limited-duration health insurance policy to file certain documents with the Department. Authorizes the Department to adopt rules to carry out the provisions of the Act. Amends the Illinois Insurance Code. Creates the Domestic Stock Company Division Law in the Code. Provides that a domestic stock company may divide into 2 or more resulting companies pursuant to a plan of division. Contains provisions concerning the contents of the plan of division, approval of the plan of division by the Director of Insurance, effects of a division, certificates of division, liabilities, and shareholder rights. Makes conforming changes in provisions concerning mergers and consolidations. In provisions concerning credit allowed a domestic ceding insurer, provides that the assuming insurer shall provide or make certain information to be reported to the Director of Insurance available to the ceding insurer and that the assuming insurer may decline to release trade secrets or commercially sensitive information that would qualify as exempt from disclosure under the Freedom of Information Act. With regard to an assuming insurer's trust fund, provides that not later than February 28 of each year, the assuming insurer's chief executive officer or chief financial officer shall certify to the Director that the trust fund contains funds in an amount not less than the assuming insurer's liabilities attributable to reinsurance ceded by U.S. ceding insurers, and in addition, a trusteed surplus of not less than $20,000,000. Permits a reduction in the required trusteed surplus in specified circumstances. Provides that, if the provision concerning the reduction in the required trusteed surplus applies to the trust, the assuming insurer's chief executive officer or chief financial officer shall then certify to the Director that the trust fund contains funds in an amount not less than the assuming insurer's liabilities attributable to reinsurance ceded by U.S. ceding insurers, and in addition, a reduced trusteed surplus of not less than the amount that has been authorized by the regulatory authority having principal regulatory oversight of the trust. Makes changes to provisions concerning financial strength ratings. Sets forth provisions concerning downgrades by rating agencies, the Director's authority, upgrading the rating of a certified reinsurer, and the revocation of the certification of a certified reinsurer. Amends the Domestic Captive Insurance Companies Article of the Code. Prohibits captive insurance companies from issuing certain types of insurance. Provides that the Department may not issue a certificate of authority to a captive insurance company unless the company possesses and maintains unencumbered capital and surplus in an amount determined by the Director after considering specified factors. Provides that the amount of capital and surplus may not be less than specified for classes of captive insurance companies. Makes changes to the reports a captive insurance company must submit to the Director. Allows, upon written application to the Director, the annual report to be filed at the end of the fiscal year, rather than on or prior to March 1. Allows a captive insurance company to make loans to its affiliates with the prior approval of the Director. Adds additional requirements for a captive insurance company to provide reinsurance. Removes certain requirements to issue letters of credit. Allows the Director to approve captive reinsurance pools under certain circumstances. Makes provisions concerning standards for risk management of controlled unaffiliated businesses, captive managers, dividends, and confidentiality. Provides that a contract of insurance with an industrial insured that qualifies as a Safety-Net Hospital is exempt from certain requirements concerning transactions in the State involving contracts of insurance independently procured directly from an unauthorized insurer by an industrial insured. Amends the Employer's Liability Rates Article of the Code. Makes changes regarding whether a competitive market exists and disapproval of rates under specified circumstances. Repeals provisions concerning competitive markets and approval of rates and minimum surplus. Makes other changes. Some provisions effective immediately and some provisions effective February 1, 2019.

In provisions concerning the authority and restrictions on captive insurance companies, removes language allowing a captive insurance company to write any type of insurance but only to the extent of insuring the operational risks of the company's affiliates and risks of a controlled unaffiliated business. Makes changes to the kind of insurance captive insurance companies may not issue. Removes language prohibiting a captive insurance company from issuing insurance as a prerequisite for obtaining a license or permit. Provides that a captive insurance company is also authorized to issue a contractual reimbursement to certain parent companies.

Recommends deleting the language creating the Short-Term, Limited-Duration Health Insurance Coverage Act. Regarding changes made to the Illinois Insurance Code concerning insurer rates, recommends: restoring a provision concerning excessive rates in a competitive and noncompetitive market; removing provisions requiring insurers to prefile (rather than file) their rate plans and other specified documents to the Director of Insurance; removing a provision requiring insurers to provide the Director with certain information if they intend to deviate from the filing requirements of a licensed rating organization; removing a provision requiring the Director to conduct a review hearing, upon written request, 30 days after a disapproval order has been entered against an insurer's rate filing; removing a provision requiring the Director to specify interim rates for an insurer if the insurer has no legally effective rates as a result of the Director's disapproval of rates; removing provisions requiring premium increase notices for a policy of workers' compensation insurance if the policy will result in a premium in excess of 5% above the rate recommendation filed with the Department of Insurance; restoring provisions concerning criteria the Director uses when determining whether a competitive market exists; and making the bill effective immediately (rather than some provisions effective immediately and some provisions effective February 1, 2019). (Deletes reference to: New Act; 215 ILCS 5/456; 215 ILCS 5/457; 215 ILCS 5/458; 215 ILCS 5/462a new; and 215 ILCS 5/460 rep.)

Date	Chamber	Action
11/29/2018	Senate	Public Act . . . . . . . . . 100-1118

Date	Chamber	Action
2/9/2017	Senate	Filed with Secretary by Sen. Antonio Muñoz
2/9/2017	Senate	First Reading
2/9/2017	Senate	Referred to Assignments
2/28/2017	Senate	Assigned to Insurance
3/9/2017	Senate	Do Pass Insurance; 011-000-000
3/9/2017	Senate	Placed on Calendar Order of 2nd Reading March 14, 2017
4/6/2017	Senate	Second Reading
4/6/2017	Senate	Placed on Calendar Order of 3rd Reading April 25, 2017
4/27/2017	Senate	Third Reading - Passed; 057-000-000
4/27/2017	House	Arrived in House
4/27/2017	House	Chief House Sponsor Rep. Michael J. Zalewski
4/27/2017	House	First Reading
4/27/2017	House	Referred to Rules Committee
5/9/2017	House	Assigned to Executive Committee
5/19/2017	House	Committee Deadline Extended-Rule 9(b) May 26, 2017
5/26/2017	House	Final Action Deadline Extended-9(b) May 31, 2017
5/31/2017	House	Rule 19(a) / Re-referred to Rules Committee
5/25/2018	House	Alternate Chief Sponsor Changed to Rep. Jay Hoffman
5/28/2018	House	Assigned to Executive Committee
5/28/2018	House	Final Action Deadline Extended-9(b) May 31, 2018
5/28/2018	House	Motion Filed to Suspend Rule 21 Executive Committee; Rep. Barbara Flynn Currie
5/28/2018	House	Motion to Suspend Rule 21 - Prevailed
5/29/2018	House	Do Pass / Short Debate Executive Committee; 011-000-000
5/29/2018	House	Placed on Calendar 2nd Reading - Short Debate
5/29/2018	House	Second Reading - Short Debate
5/29/2018	House	Held on Calendar Order of Second Reading - Short Debate
5/30/2018	House	House Floor Amendment No. 1 Filed with Clerk by Rep. Jay Hoffman
5/30/2018	House	House Floor Amendment No. 1 Referred to Rules Committee
5/30/2018	House	House Floor Amendment No. 1 Rules Refers to Labor & Commerce Committee
5/30/2018	House	House Floor Amendment No. 1 Recommends Be Adopted Labor & Commerce Committee; 017-010-000
5/31/2018	House	Added Alternate Chief Co-Sponsor Rep. Michael D. Unes
5/31/2018	House	Added Alternate Chief Co-Sponsor Rep. Norine K. Hammond
5/31/2018	House	House Floor Amendment No. 2 Filed with Clerk by Rep. Jay Hoffman
5/31/2018	House	House Floor Amendment No. 2 Referred to Rules Committee
5/31/2018	House	House Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 004-000-000
5/31/2018	House	Added Alternate Chief Co-Sponsor Rep. Dan Brady
5/31/2018	House	House Floor Amendment No. 1 Fiscal Note Filed as Amended
5/31/2018	House	House Floor Amendment No. 1 Adopted
5/31/2018	House	House Floor Amendment No. 2 Adopted
5/31/2018	House	Placed on Calendar Order of 3rd Reading - Short Debate
5/31/2018	House	Removed from Short Debate Status
5/31/2018	House	Placed on Calendar Order of 3rd Reading - Standard Debate
5/31/2018	House	Added Alternate Co-Sponsor Rep. Katie Stuart
5/31/2018	House	Added Alternate Co-Sponsor Rep. LaToya Greenwood
5/31/2018	House	Third Reading - Standard Debate - Passed 085-028-000
5/31/2018	House	Added Alternate Chief Co-Sponsor Rep. Michael J. Zalewski
5/31/2018	Senate	Secretary's Desk - Concurrence House Amendment(s) 1, 2
5/31/2018	Senate	Placed on Calendar Order of Concurrence House Amendment(s) 1, 2 - May 31, 2018
5/31/2018	Senate	House Floor Amendment No. 1 Motion to Concur Filed with Secretary Sen. Antonio Muñoz
5/31/2018	Senate	House Floor Amendment No. 1 Motion to Concur Referred to Assignments
5/31/2018	Senate	House Floor Amendment No. 2 Motion to Concur Filed with Secretary Sen. Antonio Muñoz
5/31/2018	Senate	House Floor Amendment No. 2 Motion to Concur Referred to Assignments
5/31/2018	Senate	House Floor Amendment No. 1 Motion to Concur Be Approved for Consideration Assignments
5/31/2018	Senate	House Floor Amendment No. 2 Motion to Concur Be Approved for Consideration Assignments
5/31/2018	Senate	House Floor Amendment No. 1 Senate Concurs 042-005-000
5/31/2018	Senate	House Floor Amendment No. 2 Senate Concurs 042-005-000
5/31/2018	Senate	Senate Concurs
5/31/2018	Senate	Passed Both Houses
6/29/2018	Senate	Sent to the Governor
8/26/2018	Senate	Governor Amendatory Veto
11/13/2018	Senate	Placed on Calendar Amendatory Veto November 14, 2018
11/13/2018	Senate	Motion Filed Override Amendatory Veto Sen. Antonio Muñoz
11/14/2018	Senate	3/5 Vote Required
11/14/2018	Senate	Override Amendatory Veto - Senate Passed 052-000-000
11/15/2018	House	Arrived in House
11/15/2018	House	Placed on Calendar Amendatory Veto
11/19/2018	House	Added Alternate Co-Sponsor Rep. Laura Fine
11/20/2018	House	Motion Filed Override Amendatory Veto Rep. Jay Hoffman
11/27/2018	House	3/5 Vote Required
11/27/2018	House	Override Amendatory Veto - House Passed 089-020-001
11/27/2018	Senate	Amendatory Veto Overridden Both Houses
11/29/2018	Senate	Effective Date November 27, 2018; Some provisions
11/29/2018	Senate	Effective Date February 1, 2019; Some provisions
11/29/2018	Senate	Public Act . . . . . . . . . 100-1118

	Fiscal Note, House Floor Amendment No. 1 (Dept of Insurance)
	HB 1737 (H-AM 1) will require the Department of Insurance to hire new staff to implement the additional regulatory responsibilities. There will also be reduced revenues due to the tax changes. In total, this legislation represents a cost to the State of $16,658,883.