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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 412 as follows:
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6 | (215 ILCS 5/412) (from Ch. 73, par. 1024)
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7 | Sec. 412. Refunds; penalties; collection.
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8 | (1) (a) Whenever it appears to
the satisfaction of the | ||||||||||||||||||||||||
9 | Director that because of some mistake of fact,
error in | ||||||||||||||||||||||||
10 | calculation, or erroneous interpretation of a statute of | ||||||||||||||||||||||||
11 | this
or any other state, any authorized company has paid to | ||||||||||||||||||||||||
12 | him, pursuant to
any provision of law, taxes, fees, or | ||||||||||||||||||||||||
13 | other charges
in excess of the
amount legally chargeable | ||||||||||||||||||||||||
14 | against it, during the 6 year period
immediately preceding | ||||||||||||||||||||||||
15 | the discovery of such overpayment, he shall have
power to | ||||||||||||||||||||||||
16 | refund to such company the amount of the excess or excesses | ||||||||||||||||||||||||
17 | by
applying the amount or amounts thereof toward
the | ||||||||||||||||||||||||
18 | payment of taxes, fees, or other charges already due, or | ||||||||||||||||||||||||
19 | which may
thereafter become due from that company until | ||||||||||||||||||||||||
20 | such excess or excesses have been
fully
refunded, or upon a | ||||||||||||||||||||||||
21 | written request from the authorized company, the
Director | ||||||||||||||||||||||||
22 | shall provide a cash refund within
120 days after receipt | ||||||||||||||||||||||||
23 | of the written request if all necessary information has
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24 | been filed with the Department in order for it to perform | ||||||||||||||||||||||||
25 | an audit of the
annual return for the year in which the | ||||||||||||||||||||||||
26 | overpayment occurred or within 120 days
after the date the | ||||||||||||||||||||||||
27 | Department receives all the necessary information to | ||||||||||||||||||||||||
28 | perform
such audit. The Director shall not provide a cash | ||||||||||||||||||||||||
29 | refund if there are
insufficient funds in the Insurance | ||||||||||||||||||||||||
30 | Premium Tax Refund Fund to provide a cash
refund, if the | ||||||||||||||||||||||||
31 | amount of the overpayment is less than $100, or if the | ||||||||||||||||||||||||
32 | amount of
the overpayment can be fully offset against the |
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1 | taxpayer's estimated liability
for the year following the | ||||||
2 | year of the cash refund request. Any cash refund
shall be | ||||||
3 | paid from the Insurance Premium Tax Refund Fund, a special | ||||||
4 | fund hereby
created in the
State treasury.
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5 | (b) Except to the extent that the Director, in his | ||||||
6 | discretion, determines that the amount retained in the | ||||||
7 | Illinois Premium Tax Refund Fund exceeds the anticipated | ||||||
8 | amount of refunds to be made pursuant to this Section
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9 | Beginning January 1, 2000 and thereafter , the Department | ||||||
10 | shall deposit
a percentage of the amounts collected under | ||||||
11 | Sections 409, 444, and 444.1 of
this
Code into the | ||||||
12 | Insurance Premium Tax Refund Fund. The percentage | ||||||
13 | deposited into
the Insurance Premium Tax Refund Fund shall | ||||||
14 | be the annual percentage. The
annual
percentage shall be | ||||||
15 | calculated as a fraction, the numerator of which shall be
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16 | the amount of cash refunds approved by the Director for | ||||||
17 | payment and paid during
the preceding calendar year as a | ||||||
18 | result of overpayment of tax liability under
Sections 409, | ||||||
19 | 444, and 444.1 of this Code and the denominator of which | ||||||
20 | shall
be the amounts collected pursuant to Sections 409, | ||||||
21 | 444, and 444.1 of this Code
during the preceding calendar | ||||||
22 | year. However, if there were no cash refunds
paid in a | ||||||
23 | preceding calendar year, the Department shall deposit 5% of | ||||||
24 | the
amount collected in that preceding calendar year | ||||||
25 | pursuant to Sections 409, 444,
and 444.1 of this Code into | ||||||
26 | the Insurance Premium Tax Refund Fund instead of an
amount | ||||||
27 | calculated by using the annual percentage.
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28 | (c) Beginning July 1, 1999, moneys in the Insurance | ||||||
29 | Premium Tax Refund
Fund
shall be expended exclusively for | ||||||
30 | the purpose of paying cash refunds resulting
from | ||||||
31 | overpayment of tax liability under Sections 409, 444, and | ||||||
32 | 444.1 of this
Code
as
determined by the Director pursuant | ||||||
33 | to subsection 1(a) of this Section. Cash
refunds made in | ||||||
34 | accordance with this Section may be made from the Insurance
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35 | Premium Tax Refund Fund only to the extent that amounts | ||||||
36 | have been deposited and
retained in the Insurance Premium |
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1 | Tax Refund Fund.
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2 | (d) This Section shall constitute an irrevocable and | ||||||
3 | continuing
appropriation from the Insurance Premium Tax | ||||||
4 | Refund Fund for the purpose of
paying cash refunds pursuant | ||||||
5 | to the provisions of this Section.
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6 | (2) When any insurance company or any surplus line producer | ||||||
7 | fails to
file any tax return required under Sections 408.1, | ||||||
8 | 409, 444, 444.1 and 445 of
this Code or Section 12 of the Fire | ||||||
9 | Investigation Act on the date
prescribed, including any | ||||||
10 | extensions, there shall be added as a penalty
$400 or 10% of | ||||||
11 | the amount of such tax, whichever is
greater, for each month
or | ||||||
12 | part of a month of failure to file, the entire penalty not to | ||||||
13 | exceed
$2,000 or 50% of the tax due, whichever is greater.
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14 | (3) (a) When any insurance company or any surplus line | ||||||
15 | producer
fails to pay the full amount due under the | ||||||
16 | provisions of this Section,
Sections 408.1, 409, 444, 444.1 | ||||||
17 | or 445 of this Code, or Section 12 of the
Fire | ||||||
18 | Investigation Act, there shall be added to the amount due | ||||||
19 | as a penalty
an amount equal to 10% of the deficiency.
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20 | (b) If such failure to pay is determined by the | ||||||
21 | Director to be wilful,
after a hearing under Sections 402 | ||||||
22 | and 403, there shall be added to the tax
as a penalty an | ||||||
23 | amount equal to the greater of 50% of the
deficiency or 10%
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24 | of the amount due and unpaid for each month or part of a | ||||||
25 | month that the
deficiency remains unpaid commencing with | ||||||
26 | the date that the amount becomes
due. Such amount shall be | ||||||
27 | in lieu of any determined under paragraph (a).
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28 | (4) Any insurance company or any surplus line producer | ||||||
29 | which
fails to pay the full amount due under this Section or | ||||||
30 | Sections 408.1, 409,
444, 444.1 or 445 of this Code, or Section | ||||||
31 | 12 of the Fire Investigation
Act is liable, in addition to the | ||||||
32 | tax and any penalties, for interest
on such deficiency at the | ||||||
33 | rate of 12% per annum, or at such higher adjusted
rates as are | ||||||
34 | or may be established under subsection (b) of Section 6621
of | ||||||
35 | the Internal Revenue Code, from the date that payment of any | ||||||
36 | such tax
was due, determined without regard to any extensions, |
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1 | to the date of payment
of such amount.
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2 | (5) The Director, through the Attorney
General, may | ||||||
3 | institute an action in the name of the People of the State
of | ||||||
4 | Illinois, in any court of competent jurisdiction, for the | ||||||
5 | recovery of
the amount of such taxes, fees, and penalties due, | ||||||
6 | and prosecute the same to
final judgment, and take such steps | ||||||
7 | as are necessary to collect the same.
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8 | (6) In the event that the certificate of authority of a | ||||||
9 | foreign or
alien company is revoked for any cause or the | ||||||
10 | company withdraws from
this State prior to the renewal date of | ||||||
11 | the certificate of authority as
provided in Section 114, the | ||||||
12 | company may recover the amount of any such
tax paid in advance. | ||||||
13 | Except as provided in this subsection, no
revocation or | ||||||
14 | withdrawal excuses payment of or constitutes grounds for
the | ||||||
15 | recovery of any taxes or penalties imposed by this Code.
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16 | (7) When an insurance company or domestic affiliated group | ||||||
17 | fails to pay
the full amount of any fee of $200 or more due | ||||||
18 | under
Section 408 of this Code, there shall be added to the | ||||||
19 | amount due as
a penalty the greater of $100 or an amount equal | ||||||
20 | to 10%
of the deficiency for
each month or part of
a month that | ||||||
21 | the deficiency remains unpaid.
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22 | (Source: P.A. 93-32, eff. 7-1-03.)
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23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law.
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