Full Text of SB2944 099th General Assembly
SB2944enr 99TH GENERAL ASSEMBLY |
| | SB2944 Enrolled | | LRB099 16156 EGJ 40482 b |
|
| 1 | | AN ACT concerning regulation.
| 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 Section 35A-15 as follows:
| 6 | | (215 ILCS 5/35A-15)
| 7 | | Sec. 35A-15. Company action level event.
| 8 | | (a) A company action level event means any of the following | 9 | | events:
| 10 | | (1) The filing of an RBC Report by an insurer that | 11 | | indicates that:
| 12 | | (A) the insurer's total adjusted capital is | 13 | | greater than or equal to its
regulatory action level | 14 | | RBC, but less than its company action level RBC;
| 15 | | (B) the insurer, if a life, health, or life and | 16 | | health insurer or a fraternal benefit society, has
| 17 | | total adjusted capital that is greater than or equal
to | 18 | | its company action level RBC, but less than the product | 19 | | of its authorized
control level RBC and 3.0 and has a | 20 | | negative trend; or
| 21 | | (C) the insurer, if a property and casualty | 22 | | insurer, has total adjusted capital that is greater | 23 | | than or equal
to its company action level RBC, but less |
| | | SB2944 Enrolled | - 2 - | LRB099 16156 EGJ 40482 b |
|
| 1 | | than the product of its authorized
control level RBC | 2 | | and 3.0 and triggers the trend test determined in | 3 | | accordance with the trend test calculation included in | 4 | | the property and casualty RBC Instructions. | 5 | | (D) the insurer, if a health organization, has | 6 | | total adjusted capital that is greater than or equal to | 7 | | its company action level RBC but less than the product | 8 | | of its authorized control level RBC and 3.0 and | 9 | | triggers the trend test determined in accordance with | 10 | | the trend test calculation included in the Health RBC | 11 | | Instructions.
| 12 | | (2) The notification by the Director to the insurer of | 13 | | an Adjusted RBC
Report that indicates an event described in
| 14 | | paragraph (1),
provided the insurer does not challenge the | 15 | | Adjusted RBC Report under Section
35A-35.
| 16 | | (3) The notification by the Director to the insurer | 17 | | that the Director has,
after a hearing, rejected the | 18 | | insurer's challenge under Section 35A-35 to an
Adjusted RBC | 19 | | Report that indicates the event described in paragraph (1).
| 20 | | (b) In the event of a company action level event, the | 21 | | insurer shall prepare
and submit to the Director an RBC Plan | 22 | | that does
all of the following:
| 23 | | (1) Identifies the conditions that contribute to the
| 24 | | company action level event.
| 25 | | (2) Contains proposed corrective actions that the | 26 | | insurer intends to
take and that are expected to result in |
| | | SB2944 Enrolled | - 3 - | LRB099 16156 EGJ 40482 b |
|
| 1 | | the elimination of the company action
level event.
A health | 2 | | organization is not prohibited from
proposing recognition | 3 | | of a parental guarantee or a letter of credit to
eliminate | 4 | | the company action level event; however the Director shall, | 5 | | at his
discretion, determine whether or the extent to which | 6 | | the proposed parental
guarantee or letter of credit is an | 7 | | acceptable part of a satisfactory RBC Plan
or Revised RBC | 8 | | Plan.
| 9 | | (3) Provides projections of the insurer's financial | 10 | | results in the current
year and at least the 4 succeeding | 11 | | years, both in the absence of proposed
corrective actions | 12 | | and giving effect to the proposed corrective actions,
| 13 | | including projections of statutory operating income, net | 14 | | income, capital, and
surplus. The projections for both new | 15 | | and renewal business may include
separate projections for | 16 | | each major line of business and separately identify
each | 17 | | significant income, expense, and benefit component.
| 18 | | (4) Identifies the key assumptions affecting the | 19 | | insurer's projections
and the sensitivity of the | 20 | | projections to the assumptions.
| 21 | | (5) Identifies the quality of, and problems associated | 22 | | with, the insurer's
business including, but not limited to, | 23 | | its assets, anticipated business growth
and associated | 24 | | surplus strain, extraordinary exposure to risk, mix of | 25 | | business,
and use of reinsurance, if any, in each case.
| 26 | | (c) The insurer shall submit the RBC Plan to the Director |
| | | SB2944 Enrolled | - 4 - | LRB099 16156 EGJ 40482 b |
|
| 1 | | within 45 days
after the company action
level event occurs or | 2 | | within 45 days after the Director notifies the insurer
that the | 3 | | Director has, after a hearing, rejected its
challenge under | 4 | | Section 35A-35 to an
Adjusted RBC Report.
| 5 | | (d) Within 60 days after an insurer submits an RBC Plan to | 6 | | the
Director, the Director shall notify the insurer whether the | 7 | | RBC Plan shall be
implemented or is, in the judgment of the | 8 | | Director, unsatisfactory. If the
Director determines the RBC | 9 | | Plan is unsatisfactory,
the notification to the insurer shall | 10 | | set forth the reasons for the
determination
and may set forth | 11 | | proposed revisions that will render the RBC Plan satisfactory
| 12 | | in the judgment of the Director. Upon notification from the | 13 | | Director, the
insurer shall prepare a Revised RBC Plan, which | 14 | | may incorporate by reference
any revisions proposed by the | 15 | | Director. The insurer shall submit the Revised
RBC Plan to the | 16 | | Director within 45 days after the Director notifies the insurer
| 17 | | that the RBC Plan is unsatisfactory or within 45 days after the | 18 | | Director
notifies the insurer that the Director has, after a | 19 | | hearing, rejected its
challenge under Section 35A-35 to the | 20 | | determination that the RBC Plan is
unsatisfactory.
| 21 | | (e) In the event the Director notifies an insurer that its
| 22 | | RBC Plan or Revised RBC Plan is unsatisfactory, the Director | 23 | | may, at
the Director's discretion and subject to the insurer's | 24 | | right to a hearing under
Section 35A-35, specify in the | 25 | | notification that the notification constitutes a
regulatory | 26 | | action level event.
|
| | | SB2944 Enrolled | - 5 - | LRB099 16156 EGJ 40482 b |
|
| 1 | | (f) Every domestic insurer that files an RBC Plan or | 2 | | Revised RBC Plan with
the Director shall file a copy of the RBC | 3 | | Plan or Revised RBC Plan with the
chief insurance regulatory | 4 | | official in any state in which the insurer is
authorized to do | 5 | | business if that state has a law substantially similar to the
| 6 | | confidentiality provisions in subsection (a) of Section 35A-50 | 7 | | and if that
official requests in writing a copy of the plan. | 8 | | The insurer shall file a copy
of the
RBC Plan or Revised RBC | 9 | | Plan in that state no later than the later of
15 days after | 10 | | receiving the written request for the copy or
the date on which | 11 | | the RBC Plan or Revised RBC Plan is filed under
subsection (c) | 12 | | or (d) of this Section.
| 13 | | (Source: P.A. 97-955, eff. 8-14-12; 98-157, eff. 8-2-13.)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
|
|