Illinois General Assembly - Bill Status for SB2404

Deletes everything after the enacting clause. Amends the Illinois Insurance Code. Repeals the Standard Non-forfeiture Law for Individual Deferred Annuities on July 1, 2006, and adds a new Standard Non-forfeiture Law for Individual Deferred Annuities. Provides that a company may elect to apply the new provisions to annuity contracts on a contract form-by-contract form basis before July 1, 2006. Provides that, in all other instances, the new provisions become operative with respect to annuity contracts issued by the company on or after July 1, 2006. In provisions pertaining to the minimum values of any paid-up, cash surrender or death benefits available under an annuity contract be based upon minimum nonforfeiture amounts as defined, modifies the definition determining the minimum nonforfeiture amount. Provides that the interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of 3% per annum and a specified formula, which shall be specified in the contract if the interest rate will be reset. The new provisions make numerous other modifications to the current Standard Non-forfeiture Law for Individual Deferred Annuities. Effective July 1, 2004.

Further amends the Illinois Insurance Code. Provides that companies must file forms electronically through the System for Electronic Rate and Form Filing (SERFF). Provides that all examinations, investigations, and hearings under the Code may be conducted either by the Director of Insurance or by one or more of the actuaries, technical advisors, deputies, supervisors, or examiners employed or retained by the Department and designated by the Director for that purpose. Provides that the Department may retain independent actuaries, independent certified public accountants, or qualified examiners of insurance companies. In provisions regarding policy forms, requires the Department of Insurance to mail a quarterly invoice to insurance companies for the appropriate filing fees. Removes language providing that fees charged for a policy filed as it will be issued regardless of the number of forms comprising that policy shall not exceed $1,000 or $2,000 for advisory or rating organizations. Provisions added by this amendment are effective immediately.

Replaces everything after the enacting clause with the engrossed bill with the following changes. Deletes the provisions concerning standard non-forfeiture law for individual deferred annuities. Deletes provisions requiring all examinations, investigations, and hearings be conducted either by the Director or by one or more of the actuaries, technical advisors, deputies, supervisors, or examiners employed or retained by the Department and designated by the Director for that purpose. Adds language providing that the Director as rehabilitator, liquidator, or conservator may not avoid a transfer to the extent that the transfer was, in the case of a transfer by a company where the Director has determined that a regulatory action level event or an authorized control event has occurred, specifically approved by the Director in writing, whether or not the company is in receivership. All provisions are effective immediately.

Further amends the Illinois Insurance Code. Provides that a proof of claim upon the liquidation, rehabilitation, or conservation of a company must identify a known loss or occurrence (rather than a particular claim). Provides that the claim may be allowed by estimation. Provides that specified contingent or unliquidated general creditors' and ceding insurers' claims may (rather than shall) be determined and allowed by estimation. Provides that the estimation and allowance of the loss development on a known loss or occurrence shall trigger a reinsurer's obligation to pay pursuant to its reinsurance contract with the insolvent company. Provides that that portion of any estimated and allowed contingent claim that is attributable to claims incurred but not reported to the insolvent company's reinsured shall not be billable to the insolvent company's reinsurers. Provides that the liquidator may negotiate a voluntary commutation and release of all obligations arising from reinsurance contracts or other agreements. Provides that the changes made in these provisions by the amendatory Act do not apply to any company ordered into liquidation on or before January 1, 2004.

×