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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||||||||||||||||||||||
5 | changing Section 143 and 408 as follows:
| ||||||||||||||||||||||||||
6 | (215 ILCS 5/143) (from Ch. 73, par. 755)
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7 | Sec. 143. Policy forms.
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8 | (1) Life, accident and health. No company
transacting the | ||||||||||||||||||||||||||
9 | kind or kinds of business enumerated in Classes 1 (a), 1
(b) | ||||||||||||||||||||||||||
10 | and 2 (a) of Section 4 shall issue or deliver in this State a | ||||||||||||||||||||||||||
11 | policy
or certificate of insurance or evidence of coverage, | ||||||||||||||||||||||||||
12 | attach an
endorsement or rider thereto,
incorporate by | ||||||||||||||||||||||||||
13 | reference bylaws or other matter therein or use an
application | ||||||||||||||||||||||||||
14 | blank in this State until the form and content of such
policy, | ||||||||||||||||||||||||||
15 | certificate, evidence of coverage, endorsement, rider, bylaw | ||||||||||||||||||||||||||
16 | or
other matter
incorporated by reference or application blank | ||||||||||||||||||||||||||
17 | has been filed with and
approved by the Director . The | ||||||||||||||||||||||||||
18 | Department shall mail a quarterly invoice to the company for | ||||||||||||||||||||||||||
19 | the appropriate filing fees required under Section 408.
and the | ||||||||||||||||||||||||||
20 | appropriate filing fee under Section 408
has been paid, except | ||||||||||||||||||||||||||
21 | that Any such endorsement or rider
that unilaterally reduces | ||||||||||||||||||||||||||
22 | benefits and is to be attached to a
policy subsequent to the | ||||||||||||||||||||||||||
23 | date the policy is
issued must be filed with, reviewed, and | ||||||||||||||||||||||||||
24 | formally approved by the
Director prior to the date it is | ||||||||||||||||||||||||||
25 | attached to a policy issued or
delivered in this State. It | ||||||||||||||||||||||||||
26 | shall be the duty of the Director to
withhold approval of any | ||||||||||||||||||||||||||
27 | such policy, certificate, endorsement, rider,
bylaw or other | ||||||||||||||||||||||||||
28 | matter incorporated by reference or application blank
filed | ||||||||||||||||||||||||||
29 | with him if it contains provisions which encourage
| ||||||||||||||||||||||||||
30 | misrepresentation or are unjust, unfair, inequitable, | ||||||||||||||||||||||||||
31 | ambiguous,
misleading, inconsistent, deceptive, contrary to | ||||||||||||||||||||||||||
32 | law or to the public
policy of this State, or contains |
| |||||||
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1 | exceptions and conditions that
unreasonably or deceptively | ||||||
2 | affect the risk purported to be assumed in
the general coverage | ||||||
3 | of the policy. In all cases the Director shall
approve or | ||||||
4 | disapprove any such form within 60 days after submission
unless | ||||||
5 | the Director extends by not more than an additional 30 days the
| ||||||
6 | period within which he shall approve or disapprove any such | ||||||
7 | form by
giving written notice to the insurer of such extension | ||||||
8 | before expiration
of the initial 60 days period. The Director | ||||||
9 | shall withdraw his approval
of a policy, certificate, evidence | ||||||
10 | of coverage, endorsement, rider,
bylaw, or other matter | ||||||
11 | incorporated
by reference or application blank if he | ||||||
12 | subsequently determines that such
policy, certificate, | ||||||
13 | evidence of coverage, endorsement, rider, bylaw,
other matter, | ||||||
14 | or application
blank is misrepresentative, unjust, unfair, | ||||||
15 | inequitable, ambiguous, misleading,
inconsistent, deceptive, | ||||||
16 | contrary to law or public policy of this State,
or contains | ||||||
17 | exceptions or conditions which unreasonably or deceptively | ||||||
18 | affect
the risk purported to be assumed in the general coverage | ||||||
19 | of the policy or
evidence of coverage.
| ||||||
20 | If a previously approved policy, certificate, evidence of
| ||||||
21 | coverage, endorsement, rider, bylaw
or other matter | ||||||
22 | incorporated by reference or application blank is withdrawn
for | ||||||
23 | use, the Director shall serve upon the company an order of | ||||||
24 | withdrawal
of use, either personally or by mail, and if by | ||||||
25 | mail, such service shall
be completed if such notice be | ||||||
26 | deposited in the post office, postage prepaid,
addressed to the | ||||||
27 | company's last known address specified in the records
of the | ||||||
28 | Department of Insurance. The order of withdrawal of use shall | ||||||
29 | take
effect 30 days from the date of mailing but shall be | ||||||
30 | stayed if within the
30-day period a written request for | ||||||
31 | hearing is filed with the Director.
Such hearing shall be held | ||||||
32 | at such time and place as designated in the order
given by the | ||||||
33 | Director. The hearing may be held either in the City of | ||||||
34 | Springfield,
the City of Chicago or in the county where the | ||||||
35 | principal business address
of the company is located.
The | ||||||
36 | action of the Director in
disapproving or withdrawing such form |
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1 | shall be subject to judicial review under
the
Administrative | ||||||
2 | Review Law.
| ||||||
3 | This subsection shall not apply to riders or endorsements | ||||||
4 | issued or
made at the request of the individual policyholder | ||||||
5 | relating to the
manner of distribution of benefits or to the | ||||||
6 | reservation of rights and
benefits under his life insurance | ||||||
7 | policy.
| ||||||
8 | (2) Casualty, fire, and marine. The Director shall require | ||||||
9 | the
filing of all policy forms issued or delivered by any | ||||||
10 | company transacting
the kind or
kinds of business enumerated in | ||||||
11 | Classes 2 (except Class 2 (a)) and 3 of
Section 4. In addition, | ||||||
12 | he may require the filing of any
generally used riders, | ||||||
13 | endorsements, certificates, application blanks, and
other | ||||||
14 | matter
incorporated by reference in any such policy or contract | ||||||
15 | of insurance . The Department shall mail a quarterly invoice to | ||||||
16 | the company for the appropriate filing fees required under | ||||||
17 | Section 408
along with the appropriate filing fee under Section | ||||||
18 | 408 .
Companies that are members of an organization, bureau, or | ||||||
19 | association may
have the same filed for them by the | ||||||
20 | organization, bureau, or association. If
the Director shall | ||||||
21 | find from an examination of any such policy form,
rider, | ||||||
22 | endorsement, certificate, application blank, or other matter
| ||||||
23 | incorporated by
reference in any such policy so filed that it | ||||||
24 | (i) violates any provision of
this Code, (ii) contains | ||||||
25 | inconsistent, ambiguous, or misleading clauses, or
(iii) | ||||||
26 | contains exceptions and conditions that will unreasonably or | ||||||
27 | deceptively
affect the risks that are purported to be assumed | ||||||
28 | by the policy, he
shall order the company or companies issuing | ||||||
29 | these forms to discontinue
their use. Nothing in this | ||||||
30 | subsection shall require a company
transacting the kind or | ||||||
31 | kinds of business enumerated in Classes 2
(except Class 2 (a)) | ||||||
32 | and 3 of Section 4 to obtain approval of these forms
before | ||||||
33 | they are issued nor in any way affect the legality of any
| ||||||
34 | policy that has been issued and found to be in conflict with | ||||||
35 | this
subsection, but such policies shall be subject to the | ||||||
36 | provisions of
Section 442.
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1 | (3) This Section shall not apply (i) to surety contracts or | ||||||
2 | fidelity
bonds, (ii) to policies issued to an industrial | ||||||
3 | insured as defined in Section
121-2.08 except for workers' | ||||||
4 | compensation policies, nor (iii) to riders
or
endorsements | ||||||
5 | prepared to meet special, unusual,
peculiar, or extraordinary | ||||||
6 | conditions applying to an individual risk.
| ||||||
7 | (Source: P.A. 90-794, eff. 8-14-98.)
| ||||||
8 | (215 ILCS 5/408) (from Ch. 73, par. 1020)
| ||||||
9 | Sec. 408. Fees and charges.
| ||||||
10 | (1) The Director shall charge, collect and
give proper | ||||||
11 | acquittances for the payment of the following fees and charges:
| ||||||
12 | (a) For filing all documents submitted for the | ||||||
13 | incorporation or
organization or certification of a | ||||||
14 | domestic company, except for a fraternal
benefit society, | ||||||
15 | $2,000.
| ||||||
16 | (b) For filing all documents submitted for the | ||||||
17 | incorporation or
organization of a fraternal benefit | ||||||
18 | society, $500.
| ||||||
19 | (c) For filing amendments to articles of incorporation | ||||||
20 | and amendments to
declaration of organization, except for a | ||||||
21 | fraternal benefit society, a
mutual benefit association, a | ||||||
22 | burial society or a farm mutual, $200.
| ||||||
23 | (d) For filing amendments to articles of incorporation | ||||||
24 | of a fraternal
benefit society, a mutual benefit | ||||||
25 | association or a burial society, $100.
| ||||||
26 | (e) For filing amendments to articles of incorporation | ||||||
27 | of a farm mutual,
$50.
| ||||||
28 | (f) For filing bylaws or amendments thereto, $50.
| ||||||
29 | (g) For filing agreement of merger or consolidation:
| ||||||
30 | (i) for a domestic company, except
for a fraternal | ||||||
31 | benefit society, a
mutual benefit association, a | ||||||
32 | burial society,
or a farm mutual, $2,000.
| ||||||
33 | (ii) for a foreign or
alien company, except for a | ||||||
34 | fraternal
benefit society, $600.
| ||||||
35 | (iii) for a fraternal benefit society,
a mutual |
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1 | benefit association, a burial society,
or a farm | ||||||
2 | mutual, $200.
| ||||||
3 | (h) For filing agreements of reinsurance by a domestic | ||||||
4 | company, $200.
| ||||||
5 | (i) For filing all documents submitted by a foreign or | ||||||
6 | alien
company to be admitted to transact business or | ||||||
7 | accredited as a
reinsurer in this State, except for a
| ||||||
8 | fraternal benefit society, $5,000.
| ||||||
9 | (j) For filing all documents submitted by a foreign or | ||||||
10 | alien
fraternal benefit society to be admitted to transact | ||||||
11 | business
in this State, $500.
| ||||||
12 | (k) For filing declaration of withdrawal of a foreign | ||||||
13 | or
alien company, $50.
| ||||||
14 | (l) For filing annual statement, except a fraternal | ||||||
15 | benefit
society, a mutual benefit association, a burial | ||||||
16 | society, or
a farm mutual, $200.
| ||||||
17 | (m) For filing annual statement by a fraternal benefit
| ||||||
18 | society, $100.
| ||||||
19 | (n) For filing annual statement by a farm mutual, a | ||||||
20 | mutual benefit
association, or a burial society, $50.
| ||||||
21 | (o) For issuing a certificate of authority or
renewal | ||||||
22 | thereof except to a fraternal benefit society, $200.
| ||||||
23 | (p) For issuing a certificate of authority or renewal | ||||||
24 | thereof to a
fraternal benefit society, $100.
| ||||||
25 | (q) For issuing an amended certificate of authority, | ||||||
26 | $50.
| ||||||
27 | (r) For each certified copy of certificate of | ||||||
28 | authority, $20.
| ||||||
29 | (s) For each certificate of deposit, or valuation, or | ||||||
30 | compliance
or surety certificate, $20.
| ||||||
31 | (t) For copies of papers or records per page, $1.
| ||||||
32 | (u) For each certification to copies
of papers or | ||||||
33 | records, $10.
| ||||||
34 | (v) For multiple copies of documents or certificates | ||||||
35 | listed in
subparagraphs (r), (s), and (u) of paragraph (1) | ||||||
36 | of this Section, $10 for
the first copy of a certificate of |
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1 | any type and $5 for each additional copy
of the same | ||||||
2 | certificate requested at the same time, unless, pursuant to
| ||||||
3 | paragraph (2) of this Section, the Director finds these | ||||||
4 | additional fees
excessive.
| ||||||
5 | (w) For issuing a permit to sell shares or increase | ||||||
6 | paid-up
capital:
| ||||||
7 | (i) in connection with a public stock offering, | ||||||
8 | $300;
| ||||||
9 | (ii) in any other case, $100.
| ||||||
10 | (x) For issuing any other certificate required or | ||||||
11 | permissible
under the law, $50.
| ||||||
12 | (y) For filing a plan of exchange of the stock of a | ||||||
13 | domestic
stock insurance company, a plan of | ||||||
14 | demutualization of a domestic
mutual company, or a plan of | ||||||
15 | reorganization under Article XII, $2,000.
| ||||||
16 | (z) For filing a statement of acquisition of a
domestic | ||||||
17 | company as defined in Section 131.4 of this Code, $2,000.
| ||||||
18 | (aa) For filing an agreement to purchase the business | ||||||
19 | of an
organization authorized under the Dental Service Plan | ||||||
20 | Act
or the Voluntary Health Services Plans Act or
of a | ||||||
21 | health maintenance
organization or a limited health | ||||||
22 | service organization, $2,000.
| ||||||
23 | (bb) For filing a statement of acquisition of a foreign | ||||||
24 | or alien
insurance company as defined in Section 131.12a of | ||||||
25 | this Code, $1,000.
| ||||||
26 | (cc) For filing a registration statement as required in | ||||||
27 | Sections 131.13
and 131.14, the notification as required by | ||||||
28 | Sections 131.16,
131.20a, or 141.4, or an
agreement or | ||||||
29 | transaction required by Sections 124.2(2), 141, 141a, or
| ||||||
30 | 141.1, $200.
| ||||||
31 | (dd) For filing an application for licensing of:
| ||||||
32 | (i) a religious or charitable risk pooling trust or | ||||||
33 | a workers'
compensation pool, $1,000;
| ||||||
34 | (ii) a workers' compensation service company, | ||||||
35 | $500;
| ||||||
36 | (iii) a self-insured automobile fleet, $200; or
|
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|
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1 | (iv) a renewal of or amendment of any license | ||||||
2 | issued pursuant to (i),
(ii), or (iii) above, $100.
| ||||||
3 | (ee) For filing articles of incorporation for a | ||||||
4 | syndicate to engage in
the business of insurance through | ||||||
5 | the Illinois Insurance Exchange, $2,000.
| ||||||
6 | (ff) For filing amended articles of incorporation for a | ||||||
7 | syndicate engaged
in the business of insurance through the | ||||||
8 | Illinois Insurance Exchange, $100.
| ||||||
9 | (gg) For filing articles of incorporation for a limited | ||||||
10 | syndicate to
join with other subscribers or limited | ||||||
11 | syndicates to do business through
the Illinois Insurance | ||||||
12 | Exchange, $1,000.
| ||||||
13 | (hh) For filing amended articles of incorporation for a | ||||||
14 | limited
syndicate to do business through the Illinois | ||||||
15 | Insurance Exchange, $100.
| ||||||
16 | (ii) For a permit to solicit subscriptions to a | ||||||
17 | syndicate
or limited syndicate, $100.
| ||||||
18 | (jj) For the filing of each form as required in Section | ||||||
19 | 143 of this
Code, $50 per form. The fee for advisory and | ||||||
20 | rating
organizations shall be $200 per form.
| ||||||
21 | (i) For the purposes of the form filing fee, | ||||||
22 | filings made on insert page
basis will be considered | ||||||
23 | one form at the time of its original submission.
| ||||||
24 | Changes made to a form subsequent to its approval shall | ||||||
25 | be considered a
new filing.
| ||||||
26 | (ii) Only one fee shall be charged for a form, | ||||||
27 | regardless of the number
of other forms or policies | ||||||
28 | with which it will be used.
| ||||||
29 | (iii) (Blank).
Fees charged for a policy filed as | ||||||
30 | it will be issued regardless of
the number of forms | ||||||
31 | comprising that policy shall not exceed $1,000
or | ||||||
32 | $2,000
for advisory or rating organizations.
| ||||||
33 | (iv) The Director may by rule exempt forms from | ||||||
34 | such fees.
| ||||||
35 | (kk) For filing an application for licensing of a | ||||||
36 | reinsurance
intermediary, $500.
|
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1 | (ll) For filing an application for renewal of a license | ||||||
2 | of a reinsurance
intermediary, $200.
| ||||||
3 | (2) When printed copies or numerous copies of the same | ||||||
4 | paper or records
are furnished or certified, the Director may | ||||||
5 | reduce such fees for copies
if he finds them excessive. He may, | ||||||
6 | when he considers it in the public
interest, furnish without | ||||||
7 | charge to state insurance departments and persons
other than | ||||||
8 | companies, copies or certified copies of reports of | ||||||
9 | examinations
and of other papers and records.
| ||||||
10 | (3) The expenses incurred in any performance
examination | ||||||
11 | authorized by law shall be paid by the company or person being
| ||||||
12 | examined. The charge shall be reasonably related to the cost of | ||||||
13 | the
examination including but not limited to compensation of | ||||||
14 | examiners,
electronic data processing costs, supervision and | ||||||
15 | preparation of an
examination report and lodging and travel | ||||||
16 | expenses.
All lodging and travel expenses shall be in accord
| ||||||
17 | with the applicable travel regulations as published by the | ||||||
18 | Department of
Central Management Services and approved by the | ||||||
19 | Governor's Travel Control
Board, except that out-of-state | ||||||
20 | lodging and travel expenses related to
examinations authorized | ||||||
21 | under Section 132 shall be in accordance with
travel rates | ||||||
22 | prescribed under paragraph 301-7.2 of the Federal Travel
| ||||||
23 | Regulations, 41 C.F.R. 301-7.2, for reimbursement of | ||||||
24 | subsistence expenses
incurred during official travel. All | ||||||
25 | lodging and travel expenses may be reimbursed directly upon | ||||||
26 | authorization of the
Director. With the exception of the
direct | ||||||
27 | reimbursements authorized by the
Director, all performance | ||||||
28 | examination charges collected by the
Department shall be paid
| ||||||
29 | to the Insurance Producers Administration Fund,
however, the | ||||||
30 | electronic data processing costs
incurred by the Department in | ||||||
31 | the performance of any examination shall be
billed directly to | ||||||
32 | the company being examined for payment to the
Statistical | ||||||
33 | Services Revolving Fund.
| ||||||
34 | (4) At the time of any service of process on the Director
| ||||||
35 | as attorney for such service, the Director shall charge and | ||||||
36 | collect the
sum of $20, which may be recovered as taxable costs |
| |||||||
|
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1 | by
the party to the suit or action causing such service to be | ||||||
2 | made if he prevails
in such suit or action.
| ||||||
3 | (5) (a) The costs incurred by the Department of Insurance
| ||||||
4 | in conducting any hearing authorized by law shall be assessed | ||||||
5 | against the
parties to the hearing in such proportion as the | ||||||
6 | Director of Insurance may
determine upon consideration of all | ||||||
7 | relevant circumstances including: (1)
the nature of the | ||||||
8 | hearing; (2) whether the hearing was instigated by, or
for the | ||||||
9 | benefit of a particular party or parties; (3) whether there is | ||||||
10 | a
successful party on the merits of the proceeding; and (4) the | ||||||
11 | relative levels
of participation by the parties.
| ||||||
12 | (b) For purposes of this subsection (5) costs incurred | ||||||
13 | shall
mean the hearing officer fees, court reporter fees, and | ||||||
14 | travel expenses
of Department of Insurance officers and | ||||||
15 | employees; provided however, that
costs incurred shall not | ||||||
16 | include hearing officer fees or court reporter
fees unless the | ||||||
17 | Department has retained the services of independent
| ||||||
18 | contractors or outside experts to perform such functions.
| ||||||
19 | (c) The Director shall make the assessment of costs | ||||||
20 | incurred as part of
the final order or decision arising out of | ||||||
21 | the proceeding; provided, however,
that such order or decision | ||||||
22 | shall include findings and conclusions in support
of the | ||||||
23 | assessment of costs. This subsection (5) shall not be construed | ||||||
24 | as
permitting the payment of travel expenses unless calculated | ||||||
25 | in accordance
with the applicable travel regulations of the | ||||||
26 | Department
of Central Management Services, as approved by the | ||||||
27 | Governor's Travel Control
Board. The Director as part of such | ||||||
28 | order or decision shall require all
assessments for hearing | ||||||
29 | officer fees and court reporter fees, if any, to
be paid | ||||||
30 | directly to the hearing officer or court reporter by the | ||||||
31 | party(s)
assessed for such costs. The assessments for travel | ||||||
32 | expenses of Department
officers and employees shall be | ||||||
33 | reimbursable to the
Director of Insurance for
deposit to the | ||||||
34 | fund out of which those expenses had been paid.
| ||||||
35 | (d) The provisions of this subsection (5) shall apply in | ||||||
36 | the case of any
hearing conducted by the Director of Insurance |
| |||||||
|
|||||||
1 | not otherwise specifically
provided for by law.
| ||||||
2 | (6) The Director shall charge and collect an annual | ||||||
3 | financial
regulation fee from every domestic company for | ||||||
4 | examination and analysis of
its financial condition and to fund | ||||||
5 | the internal costs and expenses of the
Interstate Insurance | ||||||
6 | Receivership Commission as may be allocated to the State
of | ||||||
7 | Illinois and companies doing an insurance business in this | ||||||
8 | State pursuant to
Article X of the Interstate Insurance | ||||||
9 | Receivership Compact. The fee shall be
the greater fixed amount | ||||||
10 | based upon
the combination of nationwide direct premium income | ||||||
11 | and
nationwide reinsurance
assumed premium
income or upon | ||||||
12 | admitted assets calculated under this subsection as follows:
| ||||||
13 | (a) Combination of nationwide direct premium income | ||||||
14 | and
nationwide reinsurance assumed premium.
| ||||||
15 | (i) $150, if the premium is less than $500,000 and | ||||||
16 | there is
no
reinsurance assumed premium;
| ||||||
17 | (ii) $750, if the premium is $500,000 or more, but | ||||||
18 | less
than $5,000,000
and there is no reinsurance | ||||||
19 | assumed premium; or if the premium is less than
| ||||||
20 | $5,000,000 and the reinsurance assumed premium is less | ||||||
21 | than $10,000,000;
| ||||||
22 | (iii) $3,750, if the premium is less than | ||||||
23 | $5,000,000 and
the reinsurance
assumed premium is | ||||||
24 | $10,000,000 or more;
| ||||||
25 | (iv) $7,500, if the premium is $5,000,000 or more, | ||||||
26 | but
less than
$10,000,000;
| ||||||
27 | (v) $18,000, if the premium is $10,000,000 or more, | ||||||
28 | but
less than $25,000,000;
| ||||||
29 | (vi) $22,500, if the premium is $25,000,000 or | ||||||
30 | more, but
less
than $50,000,000;
| ||||||
31 | (vii) $30,000, if the premium is $50,000,000 or | ||||||
32 | more,
but less than $100,000,000;
| ||||||
33 | (viii) $37,500, if the premium is $100,000,000 or | ||||||
34 | more.
| ||||||
35 | (b) Admitted assets.
| ||||||
36 | (i) $150, if admitted assets are less than |
| |||||||
|
|||||||
1 | $1,000,000;
| ||||||
2 | (ii) $750, if admitted assets are $1,000,000 or | ||||||
3 | more, but
less than
$5,000,000;
| ||||||
4 | (iii) $3,750, if admitted assets are $5,000,000 or | ||||||
5 | more,
but less than
$25,000,000;
| ||||||
6 | (iv) $7,500, if admitted assets are $25,000,000 or | ||||||
7 | more,
but less than
$50,000,000;
| ||||||
8 | (v) $18,000, if admitted assets are $50,000,000 or | ||||||
9 | more,
but less than
$100,000,000;
| ||||||
10 | (vi) $22,500, if admitted assets are $100,000,000 | ||||||
11 | or
more, but less
than $500,000,000;
| ||||||
12 | (vii) $30,000, if admitted assets are $500,000,000 | ||||||
13 | or
more, but less
than $1,000,000,000;
| ||||||
14 | (viii) $37,500, if admitted assets are | ||||||
15 | $1,000,000,000
or more.
| ||||||
16 | (c) The sum of financial regulation fees charged to the | ||||||
17 | domestic
companies of the same affiliated group shall not | ||||||
18 | exceed $250,000
in the aggregate in any single year and | ||||||
19 | shall be billed by the Director to
the member company | ||||||
20 | designated by the
group.
| ||||||
21 | (7) The Director shall charge and collect an annual | ||||||
22 | financial regulation
fee from every foreign or alien company, | ||||||
23 | except fraternal benefit
societies, for the
examination and | ||||||
24 | analysis of its financial condition and to fund the internal
| ||||||
25 | costs and expenses of the Interstate Insurance Receivership | ||||||
26 | Commission as may
be allocated to the State of Illinois and | ||||||
27 | companies doing an insurance business
in this State pursuant to | ||||||
28 | Article X of the Interstate Insurance Receivership
Compact.
The | ||||||
29 | fee shall be a fixed amount based upon Illinois direct premium | ||||||
30 | income
and nationwide reinsurance assumed premium income in | ||||||
31 | accordance with the
following schedule:
| ||||||
32 | (a) $150, if the premium is less than $500,000 and | ||||||
33 | there is
no
reinsurance assumed premium;
| ||||||
34 | (b) $750, if the premium is $500,000 or more, but less | ||||||
35 | than
$5,000,000
and there is no reinsurance assumed | ||||||
36 | premium;
or if the premium is less than $5,000,000 and the |
| |||||||
|
|||||||
1 | reinsurance assumed
premium is less than $10,000,000;
| ||||||
2 | (c) $3,750, if the premium is less than $5,000,000 and | ||||||
3 | the
reinsurance
assumed premium is $10,000,000 or more;
| ||||||
4 | (d) $7,500, if the premium is $5,000,000 or more, but | ||||||
5 | less
than
$10,000,000;
| ||||||
6 | (e) $18,000, if the premium is $10,000,000 or more, but
| ||||||
7 | less than
$25,000,000;
| ||||||
8 | (f) $22,500, if the premium is $25,000,000 or more, but
| ||||||
9 | less than
$50,000,000;
| ||||||
10 | (g) $30,000, if the premium is $50,000,000 or more, but
| ||||||
11 | less than
$100,000,000;
| ||||||
12 | (h) $37,500, if the premium is $100,000,000 or more.
| ||||||
13 | The sum of financial regulation fees under this subsection | ||||||
14 | (7)
charged to the foreign or alien companies within the same | ||||||
15 | affiliated group
shall not exceed $250,000 in the aggregate in | ||||||
16 | any single year
and shall be
billed by the Director to the | ||||||
17 | member company designated by the group.
| ||||||
18 | (8) Beginning January 1, 1992, the financial regulation | ||||||
19 | fees imposed
under subsections (6) and (7)
of this Section | ||||||
20 | shall be paid by each company or domestic affiliated group
| ||||||
21 | annually. After January
1, 1994, the fee shall be billed by | ||||||
22 | Department invoice
based upon the company's
premium income or | ||||||
23 | admitted assets as shown in its annual statement for the
| ||||||
24 | preceding calendar year. The invoice is due upon
receipt and | ||||||
25 | must be paid no later than June 30 of each calendar year. All
| ||||||
26 | financial
regulation fees collected by the Department shall be | ||||||
27 | paid to the Insurance
Financial Regulation Fund. The Department | ||||||
28 | may not collect financial
examiner per diem charges from | ||||||
29 | companies subject to subsections (6) and (7)
of this Section | ||||||
30 | undergoing financial examination
after June 30, 1992.
| ||||||
31 | (9) In addition to the financial regulation fee required by | ||||||
32 | this
Section, a company undergoing any financial examination | ||||||
33 | authorized by law
shall pay the following costs and expenses | ||||||
34 | incurred by the Department:
electronic data processing costs, | ||||||
35 | the expenses authorized under Section 131.21
and
subsection (d) | ||||||
36 | of Section 132.4 of this Code, and lodging and travel expenses.
|
| |||||||
|
|||||||
1 | Electronic data processing costs incurred by the | ||||||
2 | Department in the
performance of any examination shall be | ||||||
3 | billed directly to the company
undergoing examination for | ||||||
4 | payment to the Statistical Services Revolving
Fund. Except for | ||||||
5 | direct reimbursements authorized by the Director or
direct | ||||||
6 | payments made under Section 131.21 or subsection (d) of Section
| ||||||
7 | 132.4 of this Code, all financial regulation fees and all | ||||||
8 | financial
examination charges collected by the Department | ||||||
9 | shall be paid to the
Insurance Financial Regulation Fund.
| ||||||
10 | All lodging and travel expenses shall be in accordance with | ||||||
11 | applicable
travel regulations published by the Department of | ||||||
12 | Central Management
Services and approved by the Governor's | ||||||
13 | Travel Control Board, except that
out-of-state lodging and | ||||||
14 | travel expenses related to examinations authorized
under | ||||||
15 | Sections 132.1 through 132.7 shall be in accordance
with travel | ||||||
16 | rates prescribed
under paragraph 301-7.2 of the Federal Travel | ||||||
17 | Regulations, 41 C.F.R. 301-7.2,
for reimbursement of | ||||||
18 | subsistence expenses incurred during official travel.
All | ||||||
19 | lodging and travel expenses may be
reimbursed directly upon the | ||||||
20 | authorization of the Director.
| ||||||
21 | In the case of an organization or person not subject to the | ||||||
22 | financial
regulation fee, the expenses incurred in any | ||||||
23 | financial examination authorized
by law shall be paid by the | ||||||
24 | organization or person being examined. The charge
shall be | ||||||
25 | reasonably related to the cost of the examination including, | ||||||
26 | but not
limited to, compensation of examiners and other costs | ||||||
27 | described in this
subsection.
| ||||||
28 | (10) Any company, person, or entity failing to make any | ||||||
29 | payment of $150
or more as required under this Section shall be | ||||||
30 | subject to the penalty and
interest provisions provided for in | ||||||
31 | subsections (4) and (7)
of Section 412.
| ||||||
32 | (11) Unless otherwise specified, all of the fees collected | ||||||
33 | under this
Section shall be paid into the Insurance Financial | ||||||
34 | Regulation Fund.
| ||||||
35 | (12) For purposes of this Section:
| ||||||
36 | (a) "Domestic company" means a company as defined in |
| |||||||
|
|||||||
1 | Section 2 of this
Code which is incorporated or organized | ||||||
2 | under the laws of this State, and in
addition includes a | ||||||
3 | not-for-profit corporation authorized under the Dental
| ||||||
4 | Service Plan Act or the Voluntary Health
Services Plans | ||||||
5 | Act, a health maintenance organization, and a
limited
| ||||||
6 | health service organization.
| ||||||
7 | (b) "Foreign company" means a company as defined in | ||||||
8 | Section 2 of this
Code which is incorporated or organized | ||||||
9 | under the laws of any state of the
United States other than | ||||||
10 | this State and in addition includes a health
maintenance | ||||||
11 | organization and a limited health service organization | ||||||
12 | which is
incorporated or organized under the laws
of any | ||||||
13 | state of the United States other than this State.
| ||||||
14 | (c) "Alien company" means a company as defined in | ||||||
15 | Section 2 of this Code
which is incorporated or organized | ||||||
16 | under the laws of any country other than
the United States.
| ||||||
17 | (d) "Fraternal benefit society" means a corporation, | ||||||
18 | society, order,
lodge or voluntary association as defined | ||||||
19 | in Section 282.1 of this
Code.
| ||||||
20 | (e) "Mutual benefit association" means a company, | ||||||
21 | association or
corporation authorized by the Director to do | ||||||
22 | business in this State under
the provisions of Article | ||||||
23 | XVIII of this Code.
| ||||||
24 | (f) "Burial society" means a person, firm, | ||||||
25 | corporation, society or
association of individuals | ||||||
26 | authorized by the Director to do business in
this State | ||||||
27 | under the provisions of Article XIX of this Code.
| ||||||
28 | (g) "Farm mutual" means a district, county and township | ||||||
29 | mutual insurance
company authorized by the Director to do | ||||||
30 | business in this State under the
provisions of the Farm | ||||||
31 | Mutual Insurance Company Act of 1986.
| ||||||
32 | (Source: P.A. 93-32, eff. 7-1-03.)
| ||||||
33 | Section 99. Effective date. This Act takes effect upon | ||||||
34 | becoming law.
|