093_HB2623

 
                                     LRB093 03402 MKM 03420 b

 1        AN  ACT  to amend the Illinois Municipal Code by changing
 2    Section 11-10-1.

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

 5        Section  5.   The  Illinois  Municipal Code is amended by
 6    changing Section 11-10-1 as follows:

 7        (65 ILCS 5/11-10-1) (from Ch. 24, par. 11-10-1)
 8        Sec. 11-10-1. In each  municipality  or  fire  protection
 9    district,  whether  incorporated  under  a general or special
10    law, which has a fire department established  and  maintained
11    by  municipal  or  fire protection district ordinances, every
12    corporation,  company,   and   association   which   is   not
13    incorporated  under  the  laws  of  this  State  and which is
14    engaged in effecting fire insurance in  the  municipality  or
15    fire  protection  district, shall pay to the treasurer of the
16    Foreign Fire Insurance Board, or if there is not one, then to
17    the treasurer of the municipality or to the secretary of  the
18    fire  protection  district  for  the  maintenance,  use,  and
19    benefit  of  the fire department thereof, a sum not exceeding
20    2% of the gross receipts received from  fire  insurance  upon
21    property situated within the municipality or district.
22        Each   municipality  and  fire  protection  district  may
23    prescribe by ordinance the rate of the tax or license fee  to
24    be paid, but this rate shall not exceed the rate specified in
25    this  Section.  Each  designated  corporation,  company,  and
26    association  shall  pay  at  the rate so prescribed, upon the
27    amount of all premiums which have been  received  during  the
28    year ending on every first day of July for all fire insurance
29    effected or agreed to be effected on property situated within
30    the   municipality  or  fire  protection  district,  by  that
31    corporation, company, or association respectively.
 
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 1        Every person who acts in any  specified  municipality  or
 2    fire protection district as agent, or otherwise, on behalf of
 3    a  designated  corporation,  company,  or  association, shall
 4    render to the treasurer of the Foreign Fire  Insurance  Board
 5    in  that  municipality  or fire protection district municipal
 6    comptroller, if there is one, or  if  not  to  the  municipal
 7    treasurer clerk or secretary of the fire protection district,
 8    on  or  before the fifteenth day of July of each year, a full
 9    and true account,  verified  by  his  oath,  of  all  of  the
10    premiums  which,  during  the year ending on the first day of
11    July preceding the report, were received by him,  or  by  any
12    other  person for him on behalf of that corporation, company,
13    or association. He shall specify in this report  the  amounts
14    received  for  fire  insurance,  and  he  shall  pay  to  the
15    treasurer  of  the  Foreign  Fire  Insurance  Board  of  that
16    municipality  or fire protection district if there is one, if
17    not then to the treasurer of  the  municipality,  or  to  the
18    secretary  of  the  fire  protection district, at the time of
19    rendering this report, the amount as determined by  the  rate
20    fixed by the ordinance of the municipality or fire protection
21    district  for  which his corporation, company, or association
22    is accountable under this Section and the ordinance.
23        If this account of premiums is not rendered on or  before
24    the  fifteenth  day  of  July of each year, or if the sum due
25    remains unpaid after that day, it shall be unlawful  for  any
26    corporation,  company,  or  association,  so  in  default, to
27    transact any business in the municipality or fire  protection
28    district  until  the  sum  due  has been fully paid. But this
29    provision shall not  relieve  any  corporation,  company,  or
30    association  from  the payment of any loss upon any risk that
31    may be taken in violation of this requirement.
32        On or before the 15th of August of each  year,  an  agent
33    who,  contractually or otherwise, collects the tax or license
34    fee  on  behalf  of  a  Foreign  Fire  Insurance   Board,   a
 
                            -3-      LRB093 03402 MKM 03420 b
 1    municipality,  or  a  fire  protection district shall pay all
 2    collected  amounts, less a fee  charged  for  its  collection
 3    services,  as  permitted by this Section, to the treasurer of
 4    the Foreign Fire Insurance Board, if there is one, or if not,
 5    to the municipal treasurer  or  the  secretary  of  the  fire
 6    protection  district.  The maximum fee that may be charged by
 7    an agent for  collection  of  the  funds  from  foreign  fire
 8    insurance  companies  is  2% of the amount collected for each
 9    Foreign  Fire  Insurance  Board,  fire  department,  or  fire
10    protection district.   If  the  agent  of  the  Foreign  Fire
11    Insurance  Board,  municipality, or fire protection district,
12    fails to pay the funds to the Foreign Fire  Insurance  Board,
13    fire  department,  or fire protection district by the 15th of
14    August, the agent shall pay interest on the funds at  a  rate
15    of 1% each month or 12% each year.
16        Each  Foreign Fire Insurance Board, municipality, or fire
17    protection  district,  or  any   person,   company,   entity,
18    organization,      association,   or  other  body  that  acts
19    contractually or  otherwise  on  behalf  of  a  Foreign  Fire
20    Insurance  Board, municipality, or fire protection  district,
21    that collects and disburses this tax  or  license  fee  shall
22    file a written report by the 15th of August of each year with
23    the Department of Insurance.  The report shall include:
24             (1)  The  name  and  address  of  the  Foreign  Fire
25        Insurance   Board,   municipality,   or  fire  protection
26        district;
27             (2)  The name and address of each insurance  company
28        paying the tax or license fee;
29             (3)  The amount paid by each insurance company;
30             (4)  The   date  on  which  the  payment  from  each
31        insurance company was received;
32             (5)  The amount and  percentage  of  fees,  if  any,
33        charged  by an agent of the Foreign Fire Insurance Board,
34        municipality, or fire protection district for  collection
 
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 1        services;
 2             (6)  If  the tax or license fee collected under this
 3        Section is collected by an  agent  of  the  Foreign  Fire
 4        Insurance   Board,   municipality,   or  fire  protection
 5        district and held in a bank account between the  date  on
 6        which  the funds were collected and the date on which the
 7        funds were disbursed to the Foreign Fire Insurance Board,
 8        municipality, or fire protection  district,  the  account
 9        number, location of the funds received, and the amount of
10        any interest earned on the funds;
11             (7)  If  the  fee is collected by a municipality, or
12        an  agent  of   the   Foreign   Fire   Insurance   Board,
13        municipality,  or  fire  protection district, the date on
14        which each payment of funds was made to the Foreign  Fire
15        Insurance Board or fire protection district; and
16             (8)  A  copy of the annual accounting report that is
17        required by this Section to be filed with the   treasurer
18        of  the Foreign Fire Insurance Board, municipal clerk, or
19        secretary of the fire protection district  on  or  before
20        the  15th    of  July  of  each  year  setting  forth  an
21        accounting of premiums paid by the insurance company.
22        Information  that  is  required  by  this  Section  to be
23    provided to the Department of Insurance  shall  be  available
24    for  public inspection upon the filing of a request under the
25    Freedom of Information Act.
26        The amount of this tax or license fee  may  be  recovered
27    from  the corporation, company, or association which owes it,
28    or from its agent, by an action in the name and for  the  use
29    of  the municipality or fire protection district as for money
30    had and received.
31        The Department of Insurance, fire  department,  or  other
32    interested  party  may  bring suit against each  Foreign Fire
33    Insurance Board, municipality, fire protection  district,  or
34    agent  of  a  Foreign  Fire Insurance Board, municipality, or
 
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 1    fire protection district that  fails  to    comply  with  the
 2    submission  of  any  written  report  under  this  Section to
 3    require compliance with this  Section.   The  party  bringing
 4    suit  may  be  entitled to compensation for damages suffered,
 5    including, but not  limited  to,  compensatory  and  punitive
 6    damages,  attorney's  fees,  and  court  costs,  as  well  as
 7    injunctive relief.
 8        The   treasurer  of  the  Foreign  Fire  Insurance  Board
 9    municipal comptroller, if any, and if not, then the municipal
10    treasurer clerk or  the  secretary  of  the  fire  protection
11    district,  may  examine  the books, records, and other papers
12    and documents of a designated agent, corporation, company, or
13    association for the purpose of verifying the  correctness  of
14    the report of the amounts received for fire insurance.
15        This  Section  shall  not  be applicable to receipts from
16    contracts of  marine  insurance,  even  though  they  include
17    insurance  against  fire,  where  the  premium  for  the fire
18    insurance is not separately specified.
19    (Source: Laws 1961, p. 576.)

20        Section 99.  Effective date.  This Act  takes  effect  on
21    July 1, 2003.