Bill Status of SB 1805   99th General Assembly

Short Description:  INS CD-WORKERS COMP REQS

Senate Sponsors
Sen. William R. Haine

House Sponsors
(Rep. Frank J. Mautino-Robert Rita-Anthony DeLuca-John C. D'Amico-John Cavaletto and Will Guzzardi)


Last Action  View All Actions

DateChamber Action
  8/14/2015SenatePublic Act . . . . . . . . . 99-0369

Statutes Amended In Order of Appearance
215 ILCS 5/155.44 new

Synopsis As Introduced
Amends the Illinois Insurance Code. Provides that any insurer with less than $100,000,000 in group surplus authorized to issue workers' compensation policies with a per-occurrence deductible of $100,000 or greater shall report the outstanding obligations owed under the deductible as liabilities of the insurer, unless the obligation is fully collateralized, and limit per-occurrence deductible obligations. Effective July 1, 2015.

Senate Floor Amendment No. 1
Replaces everything after the enacting clause with the introduced bill with the following changes: Defines "insurer" to mean insurers authorized to issue a workers' compensation policy in this State that has an A.M. Best Company rating below "A-" and does not have at least $200,000,000 in surplus (rather than less than $100,000,000 in group surplus). Defines "large deductible agreement". Requires insurers to require full collateralization of outstanding obligations owed under large deductible agreements using certain methods. Provides that one method for collateralization is through cash or securities held in trust by a third party or by the insurer (rather than by a third party), provided that if the assets are held by the insurer those assets are not commingled with the insurer's other assets. Provides that insurers shall limit the size of the policyholder's obligations under a large deductible agreement to 20% of the total net worth of the policyholder at each policy inception (rather than 20% of full policy premium value or 10% of the total accounting net worth) of the policyholder). Provides that insurers determined to be in a financially hazardous condition under the Illinois Insurance Code by the Director of Insurance in this State or the equivalent in any other state is prohibited from issuing or renewing a policy that includes a large deductible agreement except when approved by the Director. Applies to large deductible agreements issued or renewed by any insurer on or after January 1, 2016. Effective July 1, 2015.

House Committee Amendment No. 1
Provides that insurers shall limit the size of a policyholder's obligations under a large deductible agreement to no greater than 20% (rather than to 20%) of the total net worth of the policyholder. In the definition of "large deductible agreement", includes security agreements which provide for the policyholder to bear the risk of loss of $100,000 or greater (rather than a specified amount) per claim or occurrence.

Actions 
DateChamber Action
  2/20/2015SenateFiled with Secretary by Sen. William R. Haine
  2/20/2015SenateFirst Reading
  2/20/2015SenateReferred to Assignments
  3/12/2015SenateAssigned to Insurance
  3/19/2015SenatePostponed - Insurance
  3/26/2015SenateDo Pass Insurance; 013-000-001
  3/26/2015SenatePlaced on Calendar Order of 2nd Reading April 14, 2015
  4/15/2015SenateSecond Reading
  4/15/2015SenatePlaced on Calendar Order of 3rd Reading April 16, 2015
  4/17/2015SenateSenate Floor Amendment No. 1 Filed with Secretary by Sen. William R. Haine
  4/17/2015SenateSenate Floor Amendment No. 1 Referred to Assignments
  4/21/2015SenateSenate Floor Amendment No. 1 Assignments Refers to Insurance
  4/22/2015SenateSenate Floor Amendment No. 1 Recommend Do Adopt Insurance; 012-000-000
  4/22/2015SenateRecalled to Second Reading
  4/22/2015SenateSenate Floor Amendment No. 1 Adopted; Haine
  4/22/2015SenatePlaced on Calendar Order of 3rd Reading
  4/22/2015SenateThird Reading - Passed; 050-000-000
  4/23/2015HouseArrived in House
  4/23/2015HouseChief House Sponsor Rep. John Bradley
  4/23/2015HouseFirst Reading
  4/23/2015HouseReferred to Rules Committee
  5/4/2015HouseAssigned to Insurance Committee
  5/7/2015HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. John Bradley
  5/7/2015HouseHouse Committee Amendment No. 1 Referred to Rules Committee
  5/8/2015HouseCommittee Deadline Extended-Rule 9(b) May 15, 2015
  5/11/2015HouseHouse Committee Amendment No. 1 Rules Refers to Insurance Committee
  5/12/2015HouseAlternate Chief Sponsor Changed to Rep. Frank J. Mautino
  5/12/2015HouseHouse Committee Amendment No. 1 Adopted in Insurance Committee; by Voice Vote
  5/12/2015HouseDo Pass as Amended / Short Debate Insurance Committee; 015-000-000
  5/13/2015HousePlaced on Calendar 2nd Reading - Short Debate
  5/19/2015HouseAdded Alternate Chief Co-Sponsor Rep. Robert Rita
  5/19/2015HouseSecond Reading - Short Debate
  5/19/2015HouseHeld on Calendar Order of Second Reading - Short Debate
  5/21/2015HousePlaced on Calendar Order of 3rd Reading - Short Debate
  5/22/2015HouseFinal Action Deadline Extended-9(b) May 31, 2015
  5/30/2015HouseAdded Alternate Chief Co-Sponsor Rep. Anthony DeLuca
  5/30/2015HouseAdded Alternate Chief Co-Sponsor Rep. John C. D'Amico
  5/30/2015HouseAdded Alternate Chief Co-Sponsor Rep. John Cavaletto
  5/30/2015HouseAdded Alternate Co-Sponsor Rep. Will Guzzardi
  5/30/2015HouseThird Reading - Short Debate - Passed 113-000-000
  5/30/2015SenateSecretary's Desk - Concurrence House Amendment(s) 1
  5/30/2015SenatePlaced on Calendar Order of Concurrence House Amendment(s) 1 - May 31, 2015
  5/31/2015SenateHouse Committee Amendment No. 1 Motion to Concur Filed with Secretary Sen. William R. Haine
  5/31/2015SenateHouse Committee Amendment No. 1 Motion to Concur Referred to Assignments
  5/31/2015SenateHouse Committee Amendment No. 1 Motion to Concur Be Approved for Consideration Assignments
  5/31/2015SenateHouse Committee Amendment No. 1 Senate Concurs 053-000-000
  5/31/2015SenateSenate Concurs 053-000-000
  5/31/2015SenatePassed Both Houses
  6/24/2015SenateSent to the Governor
  8/14/2015SenateGovernor Approved
  8/14/2015SenateEffective Date August 14, 2015
  8/14/2015SenatePublic Act . . . . . . . . . 99-0369

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