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1 | AN ACT concerning the Department of 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 Sections 123B-8, 179A-15, 179E-65, and 408 as follows:
| ||||||||||||||||||||||||||||||
6 | (215 ILCS 5/123B-8) (from Ch. 73, par. 735B-8)
| ||||||||||||||||||||||||||||||
7 | Sec. 123B-8. Notice and registration requirements
of | ||||||||||||||||||||||||||||||
8 | purchasing groups.
| ||||||||||||||||||||||||||||||
9 | A. A purchasing group that intends to do business
in this | ||||||||||||||||||||||||||||||
10 | State shall, prior to doing business, furnish
notice to the | ||||||||||||||||||||||||||||||
11 | Director, on a form prescribed by the Director, that shall:
| ||||||||||||||||||||||||||||||
12 | (1) identify the state in which the group is domiciled;
| ||||||||||||||||||||||||||||||
13 | (2) specify the lines and classifications of liability
| ||||||||||||||||||||||||||||||
14 | insurance which the purchasing group intends to purchase;
| ||||||||||||||||||||||||||||||
15 | (3) identify the insurance company from which the
group | ||||||||||||||||||||||||||||||
16 | intends to purchase its insurance and the domicile
of such | ||||||||||||||||||||||||||||||
17 | company;
| ||||||||||||||||||||||||||||||
18 | (4) specify the method by which, and the person or
| ||||||||||||||||||||||||||||||
19 | persons, if any, through whom insurance will be offered
to | ||||||||||||||||||||||||||||||
20 | its members whose risks are resident or located in
this | ||||||||||||||||||||||||||||||
21 | State;
| ||||||||||||||||||||||||||||||
22 | (5) identify the principal place of business of the
| ||||||||||||||||||||||||||||||
23 | group;
| ||||||||||||||||||||||||||||||
24 | (6) identify all other states in which the group | ||||||||||||||||||||||||||||||
25 | intends
to do business; and
| ||||||||||||||||||||||||||||||
26 | (7) provide such other information as may be required
| ||||||||||||||||||||||||||||||
27 | by the Director to verify that the purchasing group
is | ||||||||||||||||||||||||||||||
28 | qualified under subsection (10) of Section 123B-2 of this | ||||||||||||||||||||||||||||||
29 | Article.
| ||||||||||||||||||||||||||||||
30 | B. A purchasing group shall, within 10 days, notify the | ||||||||||||||||||||||||||||||
31 | Director of any
changes in any item set forth in subsection A | ||||||||||||||||||||||||||||||
32 | of this Section.
|
| |||||||
|
|||||||
1 | C. The purchasing group shall register with and designate
| ||||||
2 | the Director as its agent solely for the purpose of
receiving | ||||||
3 | service of legal documents or process, for
which a filing fee | ||||||
4 | of $200
$100 payable to the Director shall
be required, except | ||||||
5 | that such requirements shall not
apply in the case of a | ||||||
6 | purchasing group:
| ||||||
7 | (1) which in any state of the United States:
| ||||||
8 | (a) was domiciled before April 2, 1986; and
| ||||||
9 | (b) is domiciled on and after October 27, 1986, in
| ||||||
10 | any state of the United States;
| ||||||
11 | (2) which:
| ||||||
12 | (a) before October 27, 1986, purchased insurance
| ||||||
13 | from an insurance carrier licensed in any state; and
| ||||||
14 | (b) since October 27, 1986, purchased its | ||||||
15 | insurance
from an insurance carrier licensed in any | ||||||
16 | state;
| ||||||
17 | (3) which was a purchasing group under the requirements
| ||||||
18 | of the Product Liability Risk Retention Act of 1981 before
| ||||||
19 | October 27, 1986; and
| ||||||
20 | (4) which does not purchase insurance that was not
| ||||||
21 | authorized for purposes of an exemption under that Act,
as | ||||||
22 | in effect before October 27, 1986.
| ||||||
23 | D. Any purchasing group which was doing business in
this | ||||||
24 | State prior to August 3, 1987, shall,
within 30 days after that | ||||||
25 | date, furnish notice to the Director pursuant to
the provisions | ||||||
26 | of subsection A of this Section and furnish
such information as | ||||||
27 | may be required pursuant to subsection B
of this Section.
| ||||||
28 | (Source: P.A. 87-1090.)
| ||||||
29 | (215 ILCS 5/179A-15)
| ||||||
30 | Sec. 179A-15. Establishment of protected cells.
| ||||||
31 | (a) A domestic company may,
with the prior written approval | ||||||
32 | by the Director of a
plan of operation
submitted by the | ||||||
33 | domestic company with respect to each protected cell,
establish | ||||||
34 | one or more
protected cells in connection with an insurance | ||||||
35 | securitization. Upon the
written approval by the Director of |
| |||||||
|
|||||||
1 | the plan of
operation, which shall
include, but not be limited | ||||||
2 | to, the specific business and investment
guidelines
of the | ||||||
3 | protected
cell, the protected cell company may, in accordance | ||||||
4 | with the approved plan
of operation,
attribute to the
protected | ||||||
5 | cell insurance obligations with
respect to
its insurance
| ||||||
6 | business and obligations relating to the insurance | ||||||
7 | securitization and
assets to fund those obligations. A | ||||||
8 | protected cell shall have
its own distinct name
or designation, | ||||||
9 | which shall include the words "protected cell". The protected
| ||||||
10 | cell company
shall transfer all
assets attributable to a | ||||||
11 | protected cell to one or more separately established
and | ||||||
12 | identified
protected cell accounts bearing the name or | ||||||
13 | designation of that protected cell.
Protected cell
assets shall | ||||||
14 | be held in the protected cell accounts for the purpose of
| ||||||
15 | satisfying the obligations of
that protected cell. The Director | ||||||
16 | shall charge $5,000 for filing a plan of operation.
| ||||||
17 | (b) All attributions of assets and
liabilities between a | ||||||
18 | protected
cell and the general account shall be in accordance
| ||||||
19 | with the
plan
of operation approved by the Director. No
other
| ||||||
20 | attribution of assets or
liabilities may be made by a protected | ||||||
21 | cell company
between the
protected cell company's general | ||||||
22 | account and its
protected cells.
Any attribution of assets and
| ||||||
23 | liabilities between the general account and a protected cell
or | ||||||
24 | from investors in the form of principal on a debt instrument
| ||||||
25 | issued by a
protected cell company shall be in cash or in | ||||||
26 | readily marketable securities
with
established market values.
| ||||||
27 | (c) The creation of a protected cell does not create, in | ||||||
28 | respect of that
protected cell, a legal person
separate from | ||||||
29 | the protected cell company. Amounts attributed to a protected
| ||||||
30 | cell under this
Article, including
assets transferred to a | ||||||
31 | protected cell account, are owned by the protected
cell company | ||||||
32 | and
the protected cell company may
not be, nor hold itself out | ||||||
33 | to be, a trustee with respect to those protected
cell assets of | ||||||
34 | that
protected cell account. Notwithstanding the foregoing, | ||||||
35 | the company may allow
for a security
interest to attach to | ||||||
36 | protected cell assets or a protected cell account when in
favor |
| |||||||
|
|||||||
1 | of a creditor of
the protected cell and otherwise allowed under | ||||||
2 | applicable law.
| ||||||
3 | (d) This Article shall not be construed to prohibit the | ||||||
4 | protected cell
company from
contracting with or
arranging for | ||||||
5 | an investment advisor, commodity trading advisor, or other | ||||||
6 | third
party to manage
the protected cell assets of a protected | ||||||
7 | cell, provided that all remuneration,
expenses, and other
| ||||||
8 | compensation of the third party advisor or manager are payable | ||||||
9 | from the
protected cell assets of
that protected cell and not | ||||||
10 | from the protected cell assets of other protected
cells or the | ||||||
11 | assets of
the protected cell company's general account.
| ||||||
12 | (e) A protected cell company shall
establish
| ||||||
13 | administrative and
accounting procedures necessary to properly | ||||||
14 | identify the one or more
protected cells of the
protected cell | ||||||
15 | company and the protected cell assets and protected cell
| ||||||
16 | liabilities
attributable to the protected cells. It shall be
| ||||||
17 | the duty of the directors of a protected cell company to:
| ||||||
18 | (1) keep protected
cell assets and
protected cell | ||||||
19 | liabilities separate and separately identifiable from the | ||||||
20 | assets
and liabilities of the
protected cell company's | ||||||
21 | general account; and
| ||||||
22 | (2) keep protected cell assets and protected
cell | ||||||
23 | liabilities
attributable to one protected cell separate | ||||||
24 | and separately identifiable from
protected cell assets
and | ||||||
25 | protected cell liabilities attributable to other protected | ||||||
26 | cells.
| ||||||
27 | If this Section is violated,
the remedy of tracing shall
be
| ||||||
28 | applicable to protected cell assets when commingled with | ||||||
29 | protected cell assets
of other protected
cells or the assets of | ||||||
30 | the protected cell company's general account.
The remedy of | ||||||
31 | tracing shall not be construed as an exclusive remedy.
| ||||||
32 | (f) The protected cell company shall, when
establishing a | ||||||
33 | protected cell, attribute to the protected cell assets with a
| ||||||
34 | value at least equal to the reserves and other insurance | ||||||
35 | liabilities attributed
to that protected cell.
| ||||||
36 | (Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.)
|
| |||||||
|
|||||||
1 | (215 ILCS 5/179E-65)
| ||||||
2 | Sec. 179E-65. Fees and taxes. The Director shall charge:
| ||||||
3 | (1) $5,000 for review of the plan of operation of a SPRV. | ||||||
4 | (2) $1,000 for filing financial statements. | ||||||
5 |
The Director may charge fees to reimburse
the
Director for | ||||||
6 | expenses and costs incurred by the Department incident to the
| ||||||
7 | examination of
financial statements and review of the plan of | ||||||
8 | operation and to reimburse other
such
activities of the | ||||||
9 | Director related to the formation and ongoing operation of an
| ||||||
10 | SPRV. An
SPRV is not be subject to State premium or other State | ||||||
11 | taxes incidental to the
operation of
its business as long as | ||||||
12 | the business remains within the limitations of this
Article.
| ||||||
13 | (Source: P.A. 92-124, eff. 7-20-01.)
| ||||||
14 | (215 ILCS 5/408) (from Ch. 73, par. 1020)
| ||||||
15 | Sec. 408. Fees and charges.
| ||||||
16 | (1) The Director shall charge, collect and
give proper | ||||||
17 | acquittances for the payment of the following fees and charges:
| ||||||
18 | (a) For filing all documents submitted for the | ||||||
19 | incorporation or
organization or certification of a | ||||||
20 | domestic company, except for a fraternal
benefit society, | ||||||
21 | $2,000.
| ||||||
22 | (b) For filing all documents submitted for the | ||||||
23 | incorporation or
organization of a fraternal benefit | ||||||
24 | society, $500.
| ||||||
25 | (c) For filing amendments to articles of incorporation | ||||||
26 | and amendments to
declaration of organization, except for a | ||||||
27 | fraternal benefit society, a
mutual benefit association, a | ||||||
28 | burial society or a farm mutual, $200.
| ||||||
29 | (d) For filing amendments to articles of incorporation | ||||||
30 | of a fraternal
benefit society, a mutual benefit | ||||||
31 | association or a burial society, $100.
| ||||||
32 | (e) For filing amendments to articles of incorporation | ||||||
33 | of a farm mutual,
$50.
| ||||||
34 | (f) For filing bylaws or amendments thereto, $50.
|
| |||||||
|
|||||||
1 | (g) For filing agreement of merger or consolidation:
| ||||||
2 | (i) for a domestic company, except
for a fraternal | ||||||
3 | benefit society, a
mutual benefit association, a | ||||||
4 | burial society,
or a farm mutual, $2,000.
| ||||||
5 | (ii) for a foreign or
alien company, except for a | ||||||
6 | fraternal
benefit society, $600.
| ||||||
7 | (iii) for a fraternal benefit society,
a mutual | ||||||
8 | benefit association, a burial society,
or a farm | ||||||
9 | mutual, $200.
| ||||||
10 | (h) For filing agreements of reinsurance by a domestic | ||||||
11 | company, $200.
| ||||||
12 | (i) For filing all documents submitted by a foreign or | ||||||
13 | alien
company to be admitted to transact business or | ||||||
14 | accredited as a
reinsurer in this State, except for a
| ||||||
15 | fraternal benefit society, $5,000.
| ||||||
16 | (j) For filing all documents submitted by a foreign or | ||||||
17 | alien
fraternal benefit society to be admitted to transact | ||||||
18 | business
in this State, $500.
| ||||||
19 | (k) For filing declaration of withdrawal of a foreign | ||||||
20 | or
alien company, $50.
| ||||||
21 | (l) For filing annual statement, except a fraternal | ||||||
22 | benefit
society, a mutual benefit association, a burial | ||||||
23 | society, or
a farm mutual, $200.
| ||||||
24 | (m) For filing annual statement by a fraternal benefit
| ||||||
25 | society, $100.
| ||||||
26 | (n) For filing annual statement by a farm mutual, a | ||||||
27 | mutual benefit
association, or a burial society, $50.
| ||||||
28 | (o) For issuing a certificate of authority or
renewal | ||||||
29 | thereof except to a fraternal benefit society, $200.
| ||||||
30 | (p) For issuing a certificate of authority or renewal | ||||||
31 | thereof to a
fraternal benefit society, $100.
| ||||||
32 | (q) For issuing an amended certificate of authority, | ||||||
33 | $50.
| ||||||
34 | (r) For each certified copy of certificate of | ||||||
35 | authority, $20.
| ||||||
36 | (s) For each certificate of deposit, or valuation, or |
| |||||||
|
|||||||
1 | compliance
or surety certificate, $20.
| ||||||
2 | (t) For copies of papers or records per page, $2
$1 .
| ||||||
3 | (u) For each certification to copies
of papers or | ||||||
4 | records, $20
$10 .
| ||||||
5 | (v) For multiple copies of documents or certificates | ||||||
6 | listed in
subparagraphs (r), (s), and (u) of paragraph (1) | ||||||
7 | of this Section, $20
$10 for
the first copy of a | ||||||
8 | certificate of any type and $10
$5 for each additional copy
| ||||||
9 | of the same certificate requested at the same time, unless, | ||||||
10 | pursuant to
paragraph (2) of this Section, the Director | ||||||
11 | finds these additional fees
excessive.
| ||||||
12 | (w) For issuing a permit to sell shares or increase | ||||||
13 | paid-up
capital:
| ||||||
14 | (i) in connection with a public stock offering, | ||||||
15 | $300;
| ||||||
16 | (ii) in any other case, $100.
| ||||||
17 | (x) For issuing any other certificate required or | ||||||
18 | permissible
under the law, $50.
| ||||||
19 | (y) For filing a plan of exchange of the stock of a | ||||||
20 | domestic
stock insurance company, a plan of | ||||||
21 | demutualization of a domestic
mutual company, or a plan of | ||||||
22 | reorganization under Article XII, $2,000.
| ||||||
23 | (z) For filing a statement of acquisition of a
domestic | ||||||
24 | company as defined in Section 131.4 of this Code, $2,000.
| ||||||
25 | (aa) For filing an agreement to purchase the business | ||||||
26 | of an
organization authorized under the Dental Service Plan | ||||||
27 | Act
or the Voluntary Health Services Plans Act or
of a | ||||||
28 | health maintenance
organization or a limited health | ||||||
29 | service organization, $2,000.
| ||||||
30 | (bb) For filing a statement of acquisition of a foreign | ||||||
31 | or alien
insurance company as defined in Section 131.12a of | ||||||
32 | this Code, $1,000.
| ||||||
33 | (cc) For filing a registration statement as required in | ||||||
34 | Sections 131.13
and 131.14, the notification as required by | ||||||
35 | Sections 131.16,
131.20a, or 141.4, or an
agreement or | ||||||
36 | transaction required by Sections 124.2(2), 141, 141a, or
|
| |||||||
|
|||||||
1 | 141.1, $200.
| ||||||
2 | (dd) For filing an application for licensing of:
| ||||||
3 | (i) a religious or charitable risk pooling trust or | ||||||
4 | a workers'
compensation pool, $1,000;
| ||||||
5 | (ii) a workers' compensation service company, | ||||||
6 | $500;
| ||||||
7 | (iii) a self-insured automobile fleet, $200; or
| ||||||
8 | (iv) a renewal of or amendment of any license | ||||||
9 | issued pursuant to (i),
(ii), or (iii) above, $100.
| ||||||
10 | (ee) For filing articles of incorporation for a | ||||||
11 | syndicate to engage in
the business of insurance through | ||||||
12 | the Illinois Insurance Exchange, $2,000.
| ||||||
13 | (ff) For filing amended articles of incorporation for a | ||||||
14 | syndicate engaged
in the business of insurance through the | ||||||
15 | Illinois Insurance Exchange, $100.
| ||||||
16 | (gg) For filing articles of incorporation for a limited | ||||||
17 | syndicate to
join with other subscribers or limited | ||||||
18 | syndicates to do business through
the Illinois Insurance | ||||||
19 | Exchange, $1,000.
| ||||||
20 | (hh) For filing amended articles of incorporation for a | ||||||
21 | limited
syndicate to do business through the Illinois | ||||||
22 | Insurance Exchange, $100.
| ||||||
23 | (ii) For a permit to solicit subscriptions to a | ||||||
24 | syndicate
or limited syndicate, $100.
| ||||||
25 | (jj) For the filing of each form as required in Section | ||||||
26 | 143 of this
Code, $50 per form. The fee for advisory and | ||||||
27 | rating
organizations shall be $200 per form.
| ||||||
28 | (i) For the purposes of the form filing fee, | ||||||
29 | filings made on insert page
basis will be considered | ||||||
30 | one form at the time of its original submission.
| ||||||
31 | Changes made to a form subsequent to its approval shall | ||||||
32 | be considered a
new filing.
| ||||||
33 | (ii) Only one fee shall be charged for a form, | ||||||
34 | regardless of the number
of other forms or policies | ||||||
35 | with which it will be used.
| ||||||
36 | (iii) Fees charged for a policy filed as it will be |
| |||||||
|
|||||||
1 | issued regardless of
the number of forms comprising | ||||||
2 | that policy shall not exceed $1,000
or $2,000
for | ||||||
3 | advisory or rating organizations.
| ||||||
4 | (iv) The Director may by rule exempt forms from | ||||||
5 | such fees.
| ||||||
6 | (kk) For filing an application for licensing of a | ||||||
7 | reinsurance
intermediary, $500.
| ||||||
8 | (ll) For filing an application for renewal of a license | ||||||
9 | of a reinsurance
intermediary, $200.
| ||||||
10 | (2) When printed copies or numerous copies of the same | ||||||
11 | paper or records
are furnished or certified, the Director may | ||||||
12 | reduce such fees for copies
if he finds them excessive. He may, | ||||||
13 | when he considers it in the public
interest, furnish without | ||||||
14 | charge to state insurance departments and persons
other than | ||||||
15 | companies, copies or certified copies of reports of | ||||||
16 | examinations
and of other papers and records.
| ||||||
17 | (3) The expenses incurred in any performance
examination | ||||||
18 | authorized by law shall be paid by the company or person being
| ||||||
19 | examined. The charge shall be reasonably related to the cost of | ||||||
20 | the
examination including but not limited to compensation of | ||||||
21 | examiners,
electronic data processing costs, supervision and | ||||||
22 | preparation of an
examination report and lodging and travel | ||||||
23 | expenses.
All lodging and travel expenses shall be in accord
| ||||||
24 | with the applicable travel regulations as published by the | ||||||
25 | Department of
Central Management Services and approved by the | ||||||
26 | Governor's Travel Control
Board, except that out-of-state | ||||||
27 | lodging and travel expenses related to
examinations authorized | ||||||
28 | under Section 132 shall be in accordance with
travel rates | ||||||
29 | prescribed under paragraph 301-7.2 of the Federal Travel
| ||||||
30 | Regulations, 41 C.F.R. 301-7.2, for reimbursement of | ||||||
31 | subsistence expenses
incurred during official travel. All | ||||||
32 | lodging and travel expenses may be reimbursed directly upon | ||||||
33 | authorization of the
Director. With the exception of the
direct | ||||||
34 | reimbursements authorized by the
Director, all performance | ||||||
35 | examination charges collected by the
Department shall be paid
| ||||||
36 | to the Insurance Producers Administration Fund,
however, the |
| |||||||
|
|||||||
1 | electronic data processing costs
incurred by the Department in | ||||||
2 | the performance of any examination shall be
billed directly to | ||||||
3 | the company being examined for payment to the
Statistical | ||||||
4 | Services Revolving Fund.
| ||||||
5 | (4) At the time of any service of process on the Director
| ||||||
6 | as attorney for such service, the Director shall charge and | ||||||
7 | collect the
sum of $20, which may be recovered as taxable costs | ||||||
8 | by
the party to the suit or action causing such service to be | ||||||
9 | made if he prevails
in such suit or action.
| ||||||
10 | (5) (a) The costs incurred by the Department of Insurance
| ||||||
11 | in conducting any hearing authorized by law shall be assessed | ||||||
12 | against the
parties to the hearing in such proportion as the | ||||||
13 | Director of Insurance may
determine upon consideration of all | ||||||
14 | relevant circumstances including: (1)
the nature of the | ||||||
15 | hearing; (2) whether the hearing was instigated by, or
for the | ||||||
16 | benefit of a particular party or parties; (3) whether there is | ||||||
17 | a
successful party on the merits of the proceeding; and (4) the | ||||||
18 | relative levels
of participation by the parties.
| ||||||
19 | (b) For purposes of this subsection (5) costs incurred | ||||||
20 | shall
mean the hearing officer fees, court reporter fees, and | ||||||
21 | travel expenses
of Department of Insurance officers and | ||||||
22 | employees; provided however, that
costs incurred shall not | ||||||
23 | include hearing officer fees or court reporter
fees unless the | ||||||
24 | Department has retained the services of independent
| ||||||
25 | contractors or outside experts to perform such functions.
| ||||||
26 | (c) The Director shall make the assessment of costs | ||||||
27 | incurred as part of
the final order or decision arising out of | ||||||
28 | the proceeding; provided, however,
that such order or decision | ||||||
29 | shall include findings and conclusions in support
of the | ||||||
30 | assessment of costs. This subsection (5) shall not be construed | ||||||
31 | as
permitting the payment of travel expenses unless calculated | ||||||
32 | in accordance
with the applicable travel regulations of the | ||||||
33 | Department
of Central Management Services, as approved by the | ||||||
34 | Governor's Travel Control
Board. The Director as part of such | ||||||
35 | order or decision shall require all
assessments for hearing | ||||||
36 | officer fees and court reporter fees, if any, to
be paid |
| |||||||
|
|||||||
1 | directly to the hearing officer or court reporter by the | ||||||
2 | party(s)
assessed for such costs. The assessments for travel | ||||||
3 | expenses of Department
officers and employees shall be | ||||||
4 | reimbursable to the
Director of Insurance for
deposit to the | ||||||
5 | fund out of which those expenses had been paid.
| ||||||
6 | (d) The provisions of this subsection (5) shall apply in | ||||||
7 | the case of any
hearing conducted by the Director of Insurance | ||||||
8 | not otherwise specifically
provided for by law.
| ||||||
9 | (6) The Director shall charge and collect an annual | ||||||
10 | financial
regulation fee from every domestic company for | ||||||
11 | examination and analysis of
its financial condition and to fund | ||||||
12 | the internal costs and expenses of the
Interstate Insurance | ||||||
13 | Receivership Commission as may be allocated to the State
of | ||||||
14 | Illinois and companies doing an insurance business in this | ||||||
15 | State pursuant to
Article X of the Interstate Insurance | ||||||
16 | Receivership Compact. The fee shall be
the greater fixed amount | ||||||
17 | based upon
the combination of nationwide direct premium income | ||||||
18 | and
nationwide reinsurance
assumed premium
income or upon | ||||||
19 | admitted assets calculated under this subsection as follows:
| ||||||
20 | (a) Combination of nationwide direct premium income | ||||||
21 | and
nationwide reinsurance assumed premium.
| ||||||
22 | (i) $150, if the premium is less than $500,000 and | ||||||
23 | there is
no
reinsurance assumed premium;
| ||||||
24 | (ii) $750, if the premium is $500,000 or more, but | ||||||
25 | less
than $5,000,000
and there is no reinsurance | ||||||
26 | assumed premium; or if the premium is less than
| ||||||
27 | $5,000,000 and the reinsurance assumed premium is less | ||||||
28 | than $10,000,000;
| ||||||
29 | (iii) $3,750, if the premium is less than | ||||||
30 | $5,000,000 and
the reinsurance
assumed premium is | ||||||
31 | $10,000,000 or more;
| ||||||
32 | (iv) $7,500, if the premium is $5,000,000 or more, | ||||||
33 | but
less than
$10,000,000;
| ||||||
34 | (v) $18,000, if the premium is $10,000,000 or more, | ||||||
35 | but
less than $25,000,000;
| ||||||
36 | (vi) $22,500, if the premium is $25,000,000 or |
| |||||||
|
|||||||
1 | more, but
less
than $50,000,000;
| ||||||
2 | (vii) $30,000, if the premium is $50,000,000 or | ||||||
3 | more,
but less than $100,000,000;
| ||||||
4 | (viii) $37,500, if the premium is $100,000,000 or | ||||||
5 | more.
| ||||||
6 | (b) Admitted assets.
| ||||||
7 | (i) $150, if admitted assets are less than | ||||||
8 | $1,000,000;
| ||||||
9 | (ii) $750, if admitted assets are $1,000,000 or | ||||||
10 | more, but
less than
$5,000,000;
| ||||||
11 | (iii) $3,750, if admitted assets are $5,000,000 or | ||||||
12 | more,
but less than
$25,000,000;
| ||||||
13 | (iv) $7,500, if admitted assets are $25,000,000 or | ||||||
14 | more,
but less than
$50,000,000;
| ||||||
15 | (v) $18,000, if admitted assets are $50,000,000 or | ||||||
16 | more,
but less than
$100,000,000;
| ||||||
17 | (vi) $22,500, if admitted assets are $100,000,000 | ||||||
18 | or
more, but less
than $500,000,000;
| ||||||
19 | (vii) $30,000, if admitted assets are $500,000,000 | ||||||
20 | or
more, but less
than $1,000,000,000;
| ||||||
21 | (viii) $37,500, if admitted assets are | ||||||
22 | $1,000,000,000
or more.
| ||||||
23 | (c) The sum of financial regulation fees charged to the | ||||||
24 | domestic
companies of the same affiliated group shall not | ||||||
25 | exceed $250,000
in the aggregate in any single year and | ||||||
26 | shall be billed by the Director to
the member company | ||||||
27 | designated by the
group.
| ||||||
28 | (7) The Director shall charge and collect an annual | ||||||
29 | financial regulation
fee from every foreign or alien company, | ||||||
30 | except fraternal benefit
societies, for the
examination and | ||||||
31 | analysis of its financial condition and to fund the internal
| ||||||
32 | costs and expenses of the Interstate Insurance Receivership | ||||||
33 | Commission as may
be allocated to the State of Illinois and | ||||||
34 | companies doing an insurance business
in this State pursuant to | ||||||
35 | Article X of the Interstate Insurance Receivership
Compact.
The | ||||||
36 | fee shall be a fixed amount based upon Illinois direct premium |
| |||||||
|
|||||||
1 | income
and nationwide reinsurance assumed premium income in | ||||||
2 | accordance with the
following schedule:
| ||||||
3 | (a) $150, if the premium is less than $500,000 and | ||||||
4 | there is
no
reinsurance assumed premium;
| ||||||
5 | (b) $750, if the premium is $500,000 or more, but less | ||||||
6 | than
$5,000,000
and there is no reinsurance assumed | ||||||
7 | premium;
or if the premium is less than $5,000,000 and the | ||||||
8 | reinsurance assumed
premium is less than $10,000,000;
| ||||||
9 | (c) $3,750, if the premium is less than $5,000,000 and | ||||||
10 | the
reinsurance
assumed premium is $10,000,000 or more;
| ||||||
11 | (d) $7,500, if the premium is $5,000,000 or more, but | ||||||
12 | less
than
$10,000,000;
| ||||||
13 | (e) $18,000, if the premium is $10,000,000 or more, but
| ||||||
14 | less than
$25,000,000;
| ||||||
15 | (f) $22,500, if the premium is $25,000,000 or more, but
| ||||||
16 | less than
$50,000,000;
| ||||||
17 | (g) $30,000, if the premium is $50,000,000 or more, but
| ||||||
18 | less than
$100,000,000;
| ||||||
19 | (h) $37,500, if the premium is $100,000,000 or more.
| ||||||
20 | The sum of financial regulation fees under this subsection | ||||||
21 | (7)
charged to the foreign or alien companies within the same | ||||||
22 | affiliated group
shall not exceed $250,000 in the aggregate in | ||||||
23 | any single year
and shall be
billed by the Director to the | ||||||
24 | member company designated by the group.
| ||||||
25 | (8) Beginning January 1, 1992, the financial regulation | ||||||
26 | fees imposed
under subsections (6) and (7)
of this Section | ||||||
27 | shall be paid by each company or domestic affiliated group
| ||||||
28 | annually. After January
1, 1994, the fee shall be billed by | ||||||
29 | Department invoice
based upon the company's
premium income or | ||||||
30 | admitted assets as shown in its annual statement for the
| ||||||
31 | preceding calendar year. The invoice is due upon
receipt and | ||||||
32 | must be paid no later than June 30 of each calendar year. All
| ||||||
33 | financial
regulation fees collected by the Department shall be | ||||||
34 | paid to the Insurance
Financial Regulation Fund. The Department | ||||||
35 | may not collect financial
examiner per diem charges from | ||||||
36 | companies subject to subsections (6) and (7)
of this Section |
| |||||||
|
|||||||
1 | undergoing financial examination
after June 30, 1992.
| ||||||
2 | (9) In addition to the financial regulation fee required by | ||||||
3 | this
Section, a company undergoing any financial examination | ||||||
4 | authorized by law
shall pay the following costs and expenses | ||||||
5 | incurred by the Department:
electronic data processing costs, | ||||||
6 | the expenses authorized under Section 131.21
and
subsection (d) | ||||||
7 | of Section 132.4 of this Code, and lodging and travel expenses.
| ||||||
8 | Electronic data processing costs incurred by the | ||||||
9 | Department in the
performance of any examination shall be | ||||||
10 | billed directly to the company
undergoing examination for | ||||||
11 | payment to the Statistical Services Revolving
Fund. Except for | ||||||
12 | direct reimbursements authorized by the Director or
direct | ||||||
13 | payments made under Section 131.21 or subsection (d) of Section
| ||||||
14 | 132.4 of this Code, all financial regulation fees and all | ||||||
15 | financial
examination charges collected by the Department | ||||||
16 | shall be paid to the
Insurance Financial Regulation Fund.
| ||||||
17 | All lodging and travel expenses shall be in accordance with | ||||||
18 | applicable
travel regulations published by the Department of | ||||||
19 | Central Management
Services and approved by the Governor's | ||||||
20 | Travel Control Board, except that
out-of-state lodging and | ||||||
21 | travel expenses related to examinations authorized
under | ||||||
22 | Sections 132.1 through 132.7 shall be in accordance
with travel | ||||||
23 | rates prescribed
under paragraph 301-7.2 of the Federal Travel | ||||||
24 | Regulations, 41 C.F.R. 301-7.2,
for reimbursement of | ||||||
25 | subsistence expenses incurred during official travel.
All | ||||||
26 | lodging and travel expenses may be
reimbursed directly upon the | ||||||
27 | authorization of the Director.
| ||||||
28 | In the case of an organization or person not subject to the | ||||||
29 | financial
regulation fee, the expenses incurred in any | ||||||
30 | financial examination authorized
by law shall be paid by the | ||||||
31 | organization or person being examined. The charge
shall be | ||||||
32 | reasonably related to the cost of the examination including, | ||||||
33 | but not
limited to, compensation of examiners and other costs | ||||||
34 | described in this
subsection.
| ||||||
35 | (10) Any company, person, or entity failing to make any | ||||||
36 | payment of $150
or more as required under this Section shall be |
| |||||||
|
|||||||
1 | subject to the penalty and
interest provisions provided for in | ||||||
2 | subsections (4) and (7)
of Section 412.
| ||||||
3 | (11) Unless otherwise specified, all of the fees collected | ||||||
4 | under this
Section shall be paid into the Insurance Financial | ||||||
5 | Regulation Fund.
| ||||||
6 | (12) For purposes of this Section:
| ||||||
7 | (a) "Domestic company" means a company as defined in | ||||||
8 | Section 2 of this
Code which is incorporated or organized | ||||||
9 | under the laws of this State, and in
addition includes a | ||||||
10 | not-for-profit corporation authorized under the Dental
| ||||||
11 | Service Plan Act or the Voluntary Health
Services Plans | ||||||
12 | Act, a health maintenance organization, and a
limited
| ||||||
13 | health service organization.
| ||||||
14 | (b) "Foreign company" means a company as defined in | ||||||
15 | Section 2 of this
Code which is incorporated or organized | ||||||
16 | under the laws of any state of the
United States other than | ||||||
17 | this State and in addition includes a health
maintenance | ||||||
18 | organization and a limited health service organization | ||||||
19 | which is
incorporated or organized under the laws
of any | ||||||
20 | state of the United States other than this State.
| ||||||
21 | (c) "Alien company" means a company as defined in | ||||||
22 | Section 2 of this Code
which is incorporated or organized | ||||||
23 | under the laws of any country other than
the United States.
| ||||||
24 | (d) "Fraternal benefit society" means a corporation, | ||||||
25 | society, order,
lodge or voluntary association as defined | ||||||
26 | in Section 282.1 of this
Code.
| ||||||
27 | (e) "Mutual benefit association" means a company, | ||||||
28 | association or
corporation authorized by the Director to do | ||||||
29 | business in this State under
the provisions of Article | ||||||
30 | XVIII of this Code.
| ||||||
31 | (f) "Burial society" means a person, firm, | ||||||
32 | corporation, society or
association of individuals | ||||||
33 | authorized by the Director to do business in
this State | ||||||
34 | under the provisions of Article XIX of this Code.
| ||||||
35 | (g) "Farm mutual" means a district, county and township | ||||||
36 | mutual insurance
company authorized by the Director to do |
| |||||||
|
|||||||
1 | business in this State under the
provisions of the Farm | ||||||
2 | Mutual Insurance Company Act of 1986.
| ||||||
3 | (Source: P.A. 93-32, eff. 7-1-03.)
| ||||||
4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.
|