Full Text of SB2877 97th General Assembly
SB2877sam003 97TH GENERAL ASSEMBLY | Sen. William R. Haine Filed: 3/2/2012
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| 1 | | AMENDMENT TO SENATE BILL 2877
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2877 as follows: | 3 | | on page 1, by replacing line 8, with "131.21, 131.22, 131.23, | 4 | | 131.24, 131.26, 132.27, and 356z.12 and by adding Sections"; | 5 | | and | 6 | | on page 1, line 9, by replacing "and 131.20c" with "131.20c, | 7 | | 131.29, and 131.30"; and | 8 | | on page 3, by replacing lines 7 and 8 with the following: | 9 | | " company action level as set forth in Article IIA of this Code | 10 | | or would cause the company to be in
hazardous financial | 11 | | condition as set forth in Article XII 1/2 of this Code. "; and
| 12 | | on page 10, line 16, by replacing " 131.12a 131.12 " with | 13 | | "131.12"; and
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| 1 | | on page 13, line 24, by replacing "(a) (Blank). " with " (a) "; | 2 | | and | 3 | | on page 14, line 5, by replacing "(b) (Blank). " with " (b) "; and | 4 | | on page 14, line 18, after " fairness ", by inserting " of the | 5 | | proposal "; and
| 6 | | on page 16, line 3, by replacing " it shall " with " the person | 7 | | will "; and
| 8 | | on page 16, line 4, by replacing " 131.20c " with " 131.14b "; and
| 9 | | on page 16, line 6, by replacing " An " with " Beginning July 1, | 10 | | 2013, an "; and
| 11 | | on page 16, line 11, by replacing " insurer " with " company "; and
| 12 | | on page 17, line 20, by replacing "After the change of control" | 13 | | with " after the After change of control , "; and
| 14 | | on page 18, line 1, by replacing " be to not substantially" with | 15 | | " be not substantially to "; and
| 16 | | on page 18, line 2, by replacing "not" with " not "; and
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| 1 | | on page 19, line 3, after "would", by inserting " not "; and
| 2 | | on page 19, line 16, by replacing " 30 60 " with "60"; and
| 3 | | on page 19, line 22, by replacing "securityholders" with | 4 | | " shareholders securityholders "; and
| 5 | | on page 20, line 22, by replacing " insurers " with " companies "; | 6 | | and
| 7 | | on page 20, line 23, by replacing " hearing, " with " hearing "; | 8 | | and
| 9 | | on page 22, line 2, by replacing "thereto" with " thereto "; and
| 10 | | on page 22, line 21, by replacing "insurers" with " companies | 11 | | insurers "; and
| 12 | | on page 23, line 8, by replacing "involved insurer" with | 13 | | "involved company insurer "; and
| 14 | | on page 23, line 8, by replacing "an insurer" with " a company | 15 | | an insurer "; and
| 16 | | on page 23, line 14, by replacing "an insurer" with " a company | 17 | | an insurer "; and
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| 1 | | on page 24, line 1, by replacing "insurer's" with " company's | 2 | | insurer's "; and
| 3 | | on page 24, lines 20 and 24, by replacing "insurers" each time | 4 | | it appears with " companies insurers "; and
| 5 | | on page 25, line 4, by replacing "insurers" with " companies | 6 | | insurers "; and
| 7 | | on page 25, line 10, by replacing "an insurer" with " a company | 8 | | an insurer "; and
| 9 | | on page 25, line 11, by replacing "insurer" with " company | 10 | | insurer "; and
| 11 | | on page 25, line 14, by replacing "insurer's" with " company's | 12 | | insurer's "; and
| 13 | | on page 27, line 7, by replacing "insurer" with " company | 14 | | insurer "; and
| 15 | | on page 27, lines 13 and 17, by replacing "insurers" each time | 16 | | it appears with " companies insurers "; and
| 17 | | on page 27, line 19, by replacing "Insurer" each time it |
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| 1 | | appears with " Company Insurer "; and
| 2 | | on page 28, line 1, by replacing "Insurer" each time it appears | 3 | | with " Company Insurer "; and
| 4 | | on page 28, lines 7 and 10, by replacing "insurers" each time | 5 | | it appears with " companies insurers "; and
| 6 | | on page 28, line 14, by replacing "insurer" with " company | 7 | | insurer "; and
| 8 | | on page 28, line 15, by replacing "Insurer" with " Company | 9 | | Insurer "; and
| 10 | | on page 28, lines 18 and 23, by replacing "insurers" each time | 11 | | it appears with " companies insurers "; and
| 12 | | on page 29, lines 2 and 3, by replacing "insurers" each time it | 13 | | appears with " companies insurers "; and
| 14 | | on page 29, line 5, by replacing "insurer's" with " company's | 15 | | insurer's "; and
| 16 | | on page 29, line 22, by replacing "insurers" with " companies | 17 | | insurers "; and
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| 1 | | on page 31, lines 5 and 10, by replacing "insurer" each time it | 2 | | appears with " company insurer "; and
| 3 | | on page 32, line 17, by replacing "insurer" with " company | 4 | | insurer "; and
| 5 | | on page 35, line 12, by replacing "affiliate" with " controlling | 6 | | affiliate"; and
| 7 | | on page 36, lines 4 and 5, by deleting " is
responsible for | 8 | | and "; and
| 9 | | on page 38, line 3, by replacing "5" with " 15 5 "; and
| 10 | | on page 38, line 18, by replacing "statement" with "statement , | 11 | | any summary of changes to a registration statement, or any | 12 | | Enterprise Risk Filing "; and
| 13 | | on page 42, line 11, by replacing "insurer" with " company | 14 | | insurer "; and
| 15 | | on page 46, lines 5 and 6, by replacing "an insurer" with " a | 16 | | company an insurer "; and
| 17 | | on page 46, lines 7 and 9, by replacing "insurer" each time it | 18 | | appears with " company insurer "; and
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| 1 | | on page 46, line 12, by replacing " reinsurance allocation " with | 2 | | " all reinsurance allocation "; and
| 3 | | on page 46, line 14, by replacing "cost-sharing" with " all | 4 | | cost-sharing"; and
| 5 | | on page 46, line 17, by replacing " insurer " with " company "; and
| 6 | | on page 46, line 21, by replacing " insurer's " with " company's "; | 7 | | and
| 8 | | on page 46, line 25, by replacing " (v); " with " (v). "; and
| 9 | | on page 47, lines 1 and 2, by replacing " insurer " each time it | 10 | | appears with " company "; and
| 11 | | on page 47, line 3, by replacing " insurer's " with " company's "; | 12 | | and
| 13 | | on page 47, line 14, by replacing "insurer's" with " company's | 14 | | insurer's "; and
| 15 | | on page 47, line 24, by replacing "an insurer" with " a company | 16 | | an insurer "; and
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| 1 | | on page 48, line 3, by replacing "insurer" with " company | 2 | | insurer "; and
| 3 | | on page 48, line 7, by replacing "insurer's" with " company's | 4 | | insurer's "; and
| 5 | | on page 49, lines 1, 10, and 12, by replacing "insurer" each | 6 | | time it appears with " company insurer "; and
| 7 | | on page 50, line 16, by replacing "insurers" with " companies | 8 | | insurers "; and
| 9 | | on page 50, lines 17, 18, 20, and 24, by replacing "insurer" | 10 | | each time it appears with " company insurer "; and
| 11 | | on page 51, lines 8, 9, and 11, by replacing "insurer" each | 12 | | time it appears with " company insurer "; and
| 13 | | on page 54, line 9; by replacing " insurer " with " company "; and
| 14 | | on page 54, line 13, by replacing " companies, " with " companies | 15 | | in accordance with Section 131.21 of this Code, "; and
| 16 | | on page 54, line 17, by replacing " agreements " with " agreements | 17 | | in accordance with Section 131.22 of this Code "; and
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| 1 | | on page 55, line 5, by replacing " insurer " with " company "; and
| 2 | | on page 60, lines 13 and 17, by replacing " an insurer " each | 3 | | time it appears with " a company "; and
| 4 | | on page 60, line 20, by replacing " insurer " with " company "; and
| 5 | | on page 62, immediately below line 10, by inserting the | 6 | | following:
| 7 | | "(215 ILCS 5/131.23) (from Ch. 73, par. 743.23)
| 8 | | Sec. 131.23.
Injunctions; prohibitions against voting | 9 | | securities; sequestration of
voting securities.
(1) Whenever | 10 | | it appears to the Director that any company or any
director, | 11 | | officer, employee or agent thereof has committed or is about to
| 12 | | commit a violation of this Article or of any rule, regulation, | 13 | | or order
issued by the Director hereunder, the Director may | 14 | | apply to the Circuit
Court for the county in which the | 15 | | principal office of the company is
located or to the Circuit | 16 | | Court for Sangamon County for an order enjoining
the company or | 17 | | the director, officer, employee or agent thereof from
violating | 18 | | or continuing to violate this Article or any rule, regulation | 19 | | or
order, and for any other equitable relief as the nature of | 20 | | the case and the
interests of the company's policyholders, | 21 | | creditors or the
public may require. In any proceeding, the | 22 | | validity of the rule, regulation
or order alleged to have been |
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| 1 | | violated may be determined by the Court.
| 2 | | (2) No security which is the subject of any agreement or | 3 | | arrangement
regarding acquisition, or which is acquired or to | 4 | | be acquired, in
contravention of this Article or of any rule, | 5 | | regulation or order issued by
the Director hereunder may be | 6 | | voted at any shareholder's securityholders' meeting, or may be
| 7 | | counted for quorum purposes, and any action of shareholder's | 8 | | securityholders' requiring the
affirmative vote of a | 9 | | percentage of securities may be taken as though such
securities | 10 | | were not issued and outstanding; but no action taken at any | 11 | | such
meeting may be invalidated by the voting of such | 12 | | securities, unless the
action would materially affect control | 13 | | of the company or unless any court
of this State has so | 14 | | ordered. If the Director has reason to
believe that any | 15 | | security of the company has been or is about to be
acquired in | 16 | | contravention of this Article or of any rule, regulation or
| 17 | | order issued by the Director hereunder the company or the | 18 | | Director may
apply to the Circuit Court for Sangamon County or | 19 | | to the Circuit Court for
the county in which the company has | 20 | | its principal place of business (a) to
enjoin the further | 21 | | pursuit or use of any offer, request, invitation,
agreement or | 22 | | acquisition made in contravention of Sections 131.4 through
| 23 | | 131.12 or any rule, regulation, or order issued by the Director | 24 | | thereunder;
(b) to enjoin the voting of any security so | 25 | | acquired; (c) to void any vote
of such security already cast at | 26 | | any meeting of shareholders securityholders ; and (d) for
any |
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| 1 | | other equitable relief as the nature of the case and the | 2 | | interests of
the company's policyholders, creditors, or the | 3 | | public may
require.
| 4 | | (3) In any case where a person has acquired or is proposing | 5 | | to acquire
any voting securities in violation of this Article | 6 | | or any rule, regulation
or order issued by the Director | 7 | | hereunder, the Circuit Court for Sangamon
County or the Circuit | 8 | | Court for the county in which the company has its
principal | 9 | | place of business may, on such notice as the court deems
| 10 | | appropriate, upon the application of the company or the | 11 | | Director seize or
sequester any voting securities of the | 12 | | company owned directly or indirectly
by such person, and issue | 13 | | any orders with respect thereto as may be
appropriate to | 14 | | effectuate this Article. Notwithstanding any other
provisions | 15 | | of law, for the purposes of this Article, the situs of the
| 16 | | ownership of the securities of domestic companies is deemed to | 17 | | be in this
State.
| 18 | | (4) If the Director has reason to believe that any | 19 | | policyholders' proxies
have been or are about to be acquired in | 20 | | contravention of this Article or
of any rule, regulations or | 21 | | order issued by the Director hereunder, the
Director may apply | 22 | | to the Circuit Court for Sangamon County or to the Circuit
| 23 | | Court for the county in which the company has its principal | 24 | | place of business
(a) to enjoin further pursuit or use of any | 25 | | offer, request, invitation,
agreement or acquisition made in | 26 | | contravention of Section 131.4 through
131.12 and (b) for any |
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| 1 | | other equitable relief as the nature of the case
and the | 2 | | interests of the company's policyholders, creditors or the | 3 | | public may require.
| 4 | | (Source: P.A. 84-805.)"; and
| 5 | | on page 64, line 19, by replacing " insurer " with " company "; and
| 6 | | on page 64, by replacing line 22 with the following: | 7 | | " company under an order of supervision in accordance with | 8 | | Article XII 1/2 of this Code. "; and
| 9 | | on page 64, immediately below line 23, by inserting the | 10 | | following:
| 11 | | "(215 ILCS 5/131.26) (from Ch. 73, par. 743.26)
| 12 | | Sec. 131.26. Revocation, suspension, or non-renewal of | 13 | | company's license.
| 14 | | Whenever it appears to the Director that any person has | 15 | | committed a
violation of this Article which makes the continued | 16 | | operation of a company
contrary to the interests of | 17 | | policyholders or the public, the Director may,
after notice and | 18 | | hearing suspend, revoke or refuse to renew the company's
| 19 | | license or authority to do business in this State for such a | 20 | | period as the Director he finds
is required for the protection | 21 | | of policyholders or the public. Any such
determination must be | 22 | | accompanied by specific findings of fact and
conclusions of |
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| 1 | | law.
| 2 | | (Source: P.A. 77-673.)"; and
| 3 | | on page 65, immediately below line 21, by inserting the | 4 | | following:
| 5 | | "(215 ILCS 5/131.29 new) | 6 | | Sec. 131.29. Rulemaking power.
The Director may adopt such | 7 | | administrative rules as are necessary to implement the | 8 | | provisions of this Article. | 9 | | (215 ILCS 5/131.30 new) | 10 | | Sec. 131.30. Conflict with other laws.
This Code supersedes | 11 | | all laws and parts of laws of this State inconsistent with this | 12 | | Code with respect to matters covered by this Code.
| 13 | | (215 ILCS 5/356z.12) | 14 | | Sec. 356z.12. Dependent coverage. | 15 | | (a) A group or individual policy of accident and health | 16 | | insurance or managed care plan that provides coverage for | 17 | | dependents and that is amended, delivered, issued, or renewed | 18 | | after the effective date of this amendatory Act of the 95th | 19 | | General Assembly shall not terminate coverage or deny the | 20 | | election of coverage for an unmarried dependent by reason of | 21 | | the dependent's age before the dependent's 26th birthday. | 22 | | (b) A policy or plan subject to this Section shall, upon |
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| 1 | | amendment, delivery, issuance, or renewal, establish an | 2 | | initial enrollment period of not less than 90 days during which | 3 | | an insured may make a written election for coverage of an | 4 | | unmarried person as a dependent under this Section. After the | 5 | | initial enrollment period, enrollment by a dependent pursuant | 6 | | to this Section shall be consistent with the enrollment terms | 7 | | of the plan or policy. | 8 | | (c) A policy or plan subject to this Section shall allow | 9 | | for dependent coverage during the annual open enrollment date | 10 | | or the annual renewal date if the dependent, as of the date on | 11 | | which the insured elects dependent coverage under this | 12 | | subsection, has: | 13 | | (1) a period of continuous creditable coverage of 90 | 14 | | days or more; and | 15 | | (2) not been without creditable coverage for more than | 16 | | 63 days. | 17 | | An insured may elect coverage for a dependent who does not meet | 18 | | the continuous creditable coverage requirements of this | 19 | | subsection (c) and that dependent shall not be denied coverage | 20 | | due to age. | 21 | | For purposes of this subsection (c), "creditable coverage" | 22 | | shall have the meaning provided under subsection (C)(1) of | 23 | | Section 20 of the Illinois Health Insurance Portability and | 24 | | Accountability Act. | 25 | | (d) Military personnel. A group or individual policy of | 26 | | accident and health insurance or managed care plan that |
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| 1 | | provides coverage for dependents and that is amended, | 2 | | delivered, issued, or renewed after the effective date of this | 3 | | amendatory Act of the 95th General Assembly shall not terminate | 4 | | coverage or deny the election of coverage for an unmarried | 5 | | dependent by reason of the dependent's age before the | 6 | | dependent's 30th birthday if the dependent (i) is an Illinois | 7 | | resident, (ii) served as a member of the active or reserve | 8 | | components of any of the branches of the Armed Forces of the | 9 | | United States, and (iii) has received a release or discharge | 10 | | other than a dishonorable discharge. To be eligible for | 11 | | coverage under this subsection (d), the eligible dependent | 12 | | shall submit to the insurer a form approved by the Illinois | 13 | | Department of Veterans' Affairs stating the date on which the | 14 | | dependent was released from service. | 15 | | (e) Calculation of the cost of coverage provided to an | 16 | | unmarried dependent under this Section shall be identical. | 17 | | (f) Nothing in this Section shall prohibit an employer from | 18 | | requiring an employee to pay all or part of the cost of | 19 | | coverage provided under this Section. | 20 | | (g) No exclusions or limitations may be applied to coverage | 21 | | elected pursuant to this Section that do not apply to all | 22 | | dependents covered under the policy. | 23 | | (h) A policy or plan subject to this Section shall not | 24 | | condition eligibility for dependent coverage provided pursuant | 25 | | to this Section on enrollment in any educational institution. | 26 | | (i) Notice regarding coverage for a dependent as provided |
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| 1 | | pursuant to this Section shall be provided to an insured by the | 2 | | insurer: | 3 | | (1) upon application or enrollment; | 4 | | (2) in the certificate of coverage or equivalent | 5 | | document prepared for an insured and delivered on or about | 6 | | the date on which the coverage commences; and | 7 | | (3) (blank) in a notice delivered to an insured on a | 8 | | semi-annual basis .
| 9 | | (Source: P.A. 95-958, eff. 6-1-09 .)"; and | 10 | | on page 66, by replacing line 4 with the following: | 11 | | "1, 2013, except that Section 131.14b of the Illinois Insurance | 12 | | Code takes effect July 1, 2013.".
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