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90_HB1875
215 ILCS 5/466 from Ch. 73, par. 1065.13
Amends the Illinois Insurance Code. Makes a technical
change in a Section relating to rate administration.
LRB9003978JSfg
LRB9003978JSfg
1 AN ACT to amend the Illinois Insurance Code by changing
2 Section 466.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 changing Section 466 as follows:
7 (215 ILCS 5/466) (from Ch. 73, par. 1065.13)
8 Sec. 466. Rate administration.
9 (1) Recording and Reporting of Loss and Expense
10 Experience.
11 The Director shall promulgate reasonable rules and shall
12 approve statistical plans, reasonably adapted to each of the
13 rating systems on file with him, which may be modified from
14 time to time and which shall be used thereafter by each
15 company in the recording and reporting of its loss and
16 countrywide expense experience, in order that the experience
17 of all companies may be made available at least annually in
18 such form and detail as may be necessary to aid him in
19 determining whether rating systems comply with the standards
20 set forth in Section 456. An approved statistical plan need
21 not be adopted as a rule, but shall be made available for
22 public inspection at the Department's principal office and a
23 copy of the plan shall be filed with the Secretary of State.
24 Such rules and plans may also provide for the recording and
25 reporting of expense experience items which are specially
26 applicable to this state and are not susceptible of
27 determination by a prorating of countrywide expense
28 experience. In promulgating such rules and approving plans,
29 the Director shall give due consideration to the rating
30 systems on file with him and in order that such rules and
31 plans may be as uniform as is practicable among the several
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1 states, to the rules and to the form of the plans used for
2 such rating systems in other states. No company shall be
3 required to record or report any experience on an experience
4 classification which it does not use in the making of its
5 rates or to record or report its experience on any basis or
6 statistical plan that differs from that which is regularly
7 employed and used in the usual course of such company's
8 business, nor shall any company be required to record or
9 report its loss experience on a classification basis that is
10 inconsistent with the rating system filed by it, nor shall it
11 be required to report such experience to any rating
12 organization of which it is not a member or subscriber, or to
13 an agency operated by or subject to the control of such a
14 rating organization, nor shall the Department's rules state
15 that the insurer must record or report its experience in
16 accordance with a uniform statistical plan which differs from
17 that which is regularly employed and used in the usual course
18 of such company's business. Any company not reporting such
19 experience to a rating organization or other agency
20 designated by the Director, shall report such experience to
21 the Director. The Director may designate one or more rating
22 organizations or other agencies to assist him in gathering
23 all such experience and in making compilations thereof. The
24 experience of any company filed with the Director shall be
25 deemed confidential and shall not be revealed by the Director
26 to any other company or other person, provided, however, that
27 the Director may make compilations of all experience,
28 including the experience of any such company, or of such
29 experience and the compilation made by the designated rating
30 organization or other agency. All such compilations, whether
31 made by the Director or by any designated rating organization
32 or other agency, shall be made available, subject to
33 reasonable rules promulgated by the Director, to companies
34 and rating organizations.
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1 (2) Interchange of Rating Plan Data.
2 Reasonable rules and plans may be promulgated by the
3 Director for the interchange of data necessary for the
4 application of rating plans.
5 (3) Consultation with Other States.
6 In order to further uniform administration of rate
7 regulatory laws, the Director and every company and rating
8 organization may exchange information and experience data
9 with insurance supervisory officials, companies and rating
10 organizations in other states and may consult with them with
11 respect to rate making and the application of rating systems.
12 (4) Rules and Regulations.
13 The Director may make reasonable rules and regulations
14 necessary to effect the purpose of this Article.
15 (Source: P.A. 84-427.)