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Public Act 098-0910 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 10. The Illinois Insurance Code is amended by | ||||
changing Sections 131.16, 131.20a, and 139 and adding Article | ||||
VIII 1/4 as follows: | ||||
(215 ILCS 5/Art. VIII 1/4 heading new) | ||||
ARTICLE VIII 1/4. RISK MANAGEMENT AND | ||||
OWN RISK AND SOLVENCY ASSESSMENT | ||||
(215 ILCS 5/129 new) | ||||
Sec. 129. Short title. This Article may be cited as the | ||||
Risk Management and Own Risk and Solvency Assessment Law. | ||||
(215 ILCS 5/129.1 new) | ||||
Sec. 129.1. Purpose and scope. The purpose of this Article | ||||
is to provide the requirements for maintaining a risk | ||||
management framework and completing an own risk and solvency | ||||
assessment (ORSA) and provide guidance and instructions for | ||||
filing an ORSA summary report with the Director. | ||||
The requirements of this Article shall apply to all | ||||
insurers domiciled in this State unless exempt pursuant to | ||||
Section 129.7. |
The General Assembly finds and declares that an ORSA | ||
summary report will contain confidential and sensitive | ||
information related to an insurer or insurance group's | ||
identification of risks material and relevant to the insurer or | ||
insurance group filing the report. This information will | ||
include proprietary and trade secret information that has the | ||
potential for harm and competitive disadvantage to the insurer | ||
or insurance group if the information is made public. It is the | ||
intent of this General Assembly that the ORSA summary report | ||
shall be a confidential document filed with the Director, that | ||
the ORSA summary report shall be shared only as stated herein | ||
and to assist the Director in the performance of his or her | ||
duties, and that in no event shall an ORSA summary report be | ||
subject to public disclosure. | ||
(215 ILCS 5/129.2 new) | ||
Sec. 129.2. Definitions. In this Article: | ||
"Insurance group", for the purpose of conducting an ORSA, | ||
means those insurers and affiliates included within an | ||
insurance holding company system as defined in Section 131.1 of | ||
this Code. | ||
"Insurer" has the same meaning as set forth in Section 2 of | ||
this Code, except that it shall not include agencies, | ||
authorities, or instrumentalities of the United States or its | ||
possessions or territories, the Commonwealth of Puerto Rico, | ||
the District of Columbia, or a state or political subdivision |
of a state. | ||
"Own risk and solvency assessment" or "ORSA" means a | ||
confidential internal assessment, appropriate to the nature, | ||
scale, and complexity of an insurer or insurance group, | ||
conducted by that insurer or insurance group of the material | ||
and relevant risks associated with the insurer or insurance | ||
group's current business plan, and the sufficiency of capital | ||
resources to support those risks. | ||
"ORSA Guidance Manual" means the current version of the Own | ||
Risk and Solvency Assessment Guidance Manual developed and | ||
adopted by the National Association of Insurance Commissioners | ||
(NAIC) and as amended from time to time. A change in the ORSA | ||
Guidance Manual shall be effective on the January 1 following | ||
the calendar year in which the changes have been adopted by the | ||
NAIC. | ||
"ORSA summary report" means a confidential high-level | ||
summary of an insurer or insurance group's ORSA. | ||
(215 ILCS 5/129.3 new) | ||
Sec. 129.3. Risk management framework. An insurer shall | ||
maintain a risk management framework to assist the insurer with | ||
identifying, assessing, monitoring, managing, and reporting on | ||
its material and relevant risks. The requirement of this | ||
Section may be satisfied if the insurance group of which the | ||
insurer is a member maintains a risk management framework | ||
applicable to the operations of the insurer. |
(215 ILCS 5/129.4 new) | ||
Sec. 129.4. ORSA requirement. Subject to Section 129.7 of | ||
this Code, an insurer, or the insurance group of which the | ||
insurer is a member, shall regularly conduct an ORSA consistent | ||
with a process comparable to the ORSA Guidance Manual. The ORSA | ||
shall be conducted no less than annually but also at any time | ||
when there are significant changes to the risk profile of the | ||
insurer or the insurance group of which the insurer is a | ||
member. | ||
(215 ILCS 5/129.5 new) | ||
Sec. 129.5. ORSA summary report. | ||
(a) Upon the Director's request, and no more than once each | ||
year, an insurer shall submit to the Director an ORSA summary | ||
report or any combination of reports that together contain the | ||
information described in the ORSA Guidance Manual, applicable | ||
to the insurer and the insurance group of which it is a member. | ||
Notwithstanding any request from the Director, if the insurer | ||
is a member of an insurance group, the insurer shall submit the | ||
report or reports required by this subsection (a) if the | ||
Director is the lead state commissioner of the insurance group | ||
as determined by the procedures within the Financial Analysis | ||
Handbook adopted by the National Association of Insurance | ||
Commissioners. | ||
(b) The report or reports shall include a signature of the |
insurer or insurance group's chief risk officer or other | ||
executive having responsibility for the oversight of the | ||
insurer's enterprise risk management process attesting to the | ||
best of his or her belief and knowledge that the insurer | ||
applies the enterprise risk management process described in the | ||
ORSA summary report and that a copy of the report has been | ||
provided to the insurer's board of directors or the appropriate | ||
committee thereof. | ||
(c) An insurer may comply with subsection (a) of this | ||
Section by providing the most recent and substantially similar | ||
report or reports provided by the insurer or another member of | ||
an insurance group of which the insurer is a member to the | ||
commissioner of another state or to a supervisor or regulator | ||
of a foreign jurisdiction, if that report provides information | ||
that is comparable to the information described in the ORSA | ||
Guidance Manual. Any such report in a language other than | ||
English must be accompanied by a translation of that report | ||
into the English language. | ||
(d) The first filing of the ORSA summary report shall be in | ||
2015. | ||
(215 ILCS 5/129.6 new) | ||
Sec. 129.6. Contents of ORSA summary report. | ||
(a) The ORSA summary report shall be prepared consistent | ||
with the ORSA Guidance Manual, subject to the requirements of | ||
subsection (b) of this Section. Documentation and supporting |
information shall be maintained and made available upon | ||
examination or upon the request of the Director. | ||
(b) The review of the ORSA summary report, and any | ||
additional requests for information, shall be made using | ||
similar procedures currently used in the analysis and | ||
examination of multi-state or global insurers and insurance | ||
groups. | ||
(215 ILCS 5/129.7 new) | ||
Sec. 129.7. Exemption. | ||
(a) An insurer shall be exempt from the requirements of | ||
this Article if: | ||
(1) the insurer has annual direct written and | ||
unaffiliated assumed premium, including international | ||
direct and assumed premium, but excluding premiums | ||
reinsured with the Federal Crop Insurance Corporation and | ||
Federal Flood Program, less than $500,000,000; and | ||
(2) the insurance group of which the insurer is a | ||
member has annual direct written and unaffiliated assumed | ||
premium, including international direct and assumed | ||
premium, but excluding premiums reinsured with the Federal | ||
Crop Insurance Corporation and Federal Flood Program, less | ||
than $1,000,000,000. | ||
(b) If an insurer qualifies for exemption pursuant to item | ||
(1) of subsection (a) of this Section, but the insurance group | ||
of which the insurer is a member does not qualify for exemption |
pursuant to item (2) of subsection (a) of this Section, then | ||
the ORSA summary report that may be required pursuant to | ||
Section 129.5 of this Code shall include every insurer within | ||
the insurance group. This requirement may be satisfied by the | ||
submission of more than one ORSA summary report for any | ||
combination of insurers, provided any combination of reports | ||
includes every insurer within the insurance group. | ||
(c) If an insurer does not qualify for exemption pursuant | ||
to item (1) of subsection (a) of this Section, but the | ||
insurance group of which it is a member qualifies for exemption | ||
pursuant to item (2) of subsection (a) of this Section, then | ||
the only ORSA summary report that may be required pursuant to | ||
Section 129.5 shall be the report applicable to that insurer. | ||
(d) An insurer that does not qualify for exemption pursuant | ||
to subsection (a) of this Section may apply to the Director for | ||
a waiver from the requirements of this Article based upon | ||
unique circumstances. In deciding whether to grant the | ||
insurer's request for waiver, the Director may consider the | ||
type and volume of business written, ownership and | ||
organizational structure, and any other factor the Director | ||
considers relevant to the insurer or insurance group of which | ||
the insurer is a member. If the insurer is part of an insurance | ||
group with insurers domiciled in more than one state, the | ||
Director shall coordinate with the lead state commissioner and | ||
with the other domiciliary commissioners in considering | ||
whether to grant the insurer's request for a waiver. |
(e) Notwithstanding the exemptions stated in this Section,
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the following provisions shall apply: | ||
(1) The Director may require that an insurer maintain a | ||
risk management framework, conduct an ORSA, and file an | ||
ORSA summary report based on unique circumstances, | ||
including, but not limited to, the type and volume of | ||
business written, ownership and organizational structure, | ||
federal agency requests, and international supervisor | ||
requests. | ||
(2) The Director may require that an insurer maintain a | ||
risk management framework, conduct an ORSA, and file an | ||
ORSA summary report if the insurer has risk-based capital | ||
for a company action level event as set forth in Section | ||
35A-15 of this Code, meets one or more of the standards of | ||
an insurer deemed to be in hazardous financial condition as | ||
defined in Section 186.1 of this Code, or otherwise | ||
exhibits qualities of a troubled insurer as determined by | ||
the Director. | ||
(f) If an insurer that qualifies for an exemption pursuant | ||
to subsection (a) of this Section subsequently no longer | ||
qualifies for that exemption due to changes in premium as | ||
reflected in the insurer's most recent annual statement or in | ||
the most recent annual statements of the insurers within the | ||
insurance group of which the insurer is a member, the insurer | ||
shall have one year following the year the threshold is | ||
exceeded to comply with the requirements of this Article. |
(215 ILCS 5/129.8 new) | ||
Sec. 129.8. Confidentiality. | ||
(a) Documents, materials, or other information, including | ||
the ORSA summary report, in the possession or control of the | ||
Department that are obtained by, created by, or disclosed to | ||
the Director or any other person under this Article, is | ||
recognized by this State as being proprietary and to contain | ||
trade secrets. All such documents, materials, or other | ||
information shall be confidential by law and privileged, shall | ||
not be subject to the Freedom of Information Act, shall not be | ||
subject to subpoena, and shall not be subject to discovery or | ||
admissible in evidence in any private civil action. However, | ||
the Director is authorized to use the documents, materials, or | ||
other information in the furtherance of any regulatory or legal | ||
action brought as a part of the Director's official duties. The | ||
Director shall not otherwise make the documents, materials, or | ||
other information public without the prior written consent of | ||
the insurer. | ||
(b) Neither the Director nor any person who received | ||
documents, materials, or other ORSA-related information, | ||
through examination or otherwise, while acting under the | ||
authority of the Director or with whom such documents, | ||
materials, or other information are shared pursuant to this | ||
Article shall be permitted or required to testify in any | ||
private civil action concerning any confidential documents, |
materials, or information subject to subsection (a) of this | ||
Section. | ||
(c) In order to assist in the performance of regulatory | ||
duties, the Director may: | ||
(1) upon request, share documents, materials, or other | ||
ORSA-related information, including the confidential and | ||
privileged documents, materials, or information subject to | ||
subsection (a) of this Section, including proprietary and | ||
trade secret documents and materials with other state, | ||
federal, and international financial regulatory agencies, | ||
including members of any supervisory college as defined in | ||
the Section 131.20c of this Code, with the NAIC, and with | ||
any third-party consultants designated by the Director, | ||
provided that the recipient agrees in writing to maintain | ||
the confidentiality and privileged status of the | ||
ORSA-related documents, materials, or other information | ||
and has verified in writing the legal authority to maintain | ||
confidentiality; and | ||
(2) receive documents, materials, or other | ||
ORSA-related information, including otherwise confidential | ||
and privileged documents, materials, or information, | ||
including proprietary and trade-secret information or | ||
documents, from regulatory officials of other foreign or | ||
domestic jurisdictions, including members of any | ||
supervisory college as defined in the Section 131.20c of | ||
this Code, and from the NAIC, and shall maintain as |
confidential or privileged any documents, materials, or | ||
information received with notice or the understanding that | ||
it is confidential or privileged under the laws of the | ||
jurisdiction that is the source of the document, material, | ||
or information. | ||
(d) The Director shall enter into a written agreement with | ||
the NAIC or a third-party consultant governing sharing and use | ||
of information provided pursuant to this Article, consistent | ||
with this Section that shall: | ||
(1) specify procedures and protocols regarding the | ||
confidentiality and security of information shared with | ||
the NAIC or a third-party consultant pursuant to this | ||
Article, including procedures and protocols for sharing by | ||
the NAIC with other state regulators from states in which | ||
the insurance group has domiciled insurers; the agreement | ||
shall provide that the recipient agrees in writing to | ||
maintain the confidentiality and privileged status of the | ||
ORSA-related documents, materials, or other information | ||
and has verified in writing the legal authority to maintain | ||
confidentiality; | ||
(2) specify that ownership of information shared with | ||
the NAIC or a third-party consultant pursuant to this | ||
Article remains with the Director and the NAIC's or a | ||
third-party consultant's use of the information is subject | ||
to the direction of the Director; | ||
(3) prohibit the NAIC or third-party consultant from |
storing the information shared pursuant to this Article in | ||
a permanent database after the underlying analysis is | ||
completed; | ||
(4) require prompt notice to be given to an insurer | ||
whose confidential information in the possession of the | ||
NAIC or a third-party consultant pursuant to this Article | ||
is subject to a request or subpoena to the NAIC or a | ||
third-party consultant for disclosure or production; | ||
(5) require the NAIC or a third-party consultant to | ||
consent to intervention by an insurer in any judicial or | ||
administrative action in which the NAIC or a third-party | ||
consultant may be required to disclose confidential | ||
information about the insurer shared with the NAIC or a | ||
third-party consultant pursuant to this Article; and | ||
(6) in the case of an agreement involving a third-party | ||
consultant, provide for the insurer's written consent. | ||
(e) The sharing of information and documents by the | ||
Director pursuant to this Article shall not constitute a | ||
delegation of regulatory authority or rulemaking, and the | ||
Director is solely responsible for the administration, | ||
execution, and enforcement of the provisions of this Article. | ||
(f) No waiver of any applicable privilege or claim of | ||
confidentiality in the documents, proprietary and trade-secret | ||
materials, or other ORSA-related information shall occur as a | ||
result of disclosure of such ORSA-related information or | ||
documents to the Director under this Section or as a result of |
sharing as authorized in this Article. | ||
(g) Documents, materials, or other information in the | ||
possession or control of the NAIC or any third-party | ||
consultants pursuant to this Article shall be confidential by | ||
law and privileged, shall not be subject to the Freedom of | ||
Information Act, shall not be subject to subpoena, and shall | ||
not be subject to discovery or admissible in evidence in any | ||
private civil action. | ||
(215 ILCS 5/129.9 new) | ||
Sec. 129.9. Sanctions. Any insurer failing, without just | ||
cause, to timely file the ORSA summary report as required in | ||
this Article shall be required, after notice and hearing, to | ||
pay a penalty of $200 for each day's delay, to be recovered by | ||
the Director, and the penalty so recovered shall be paid into | ||
the General Revenue Fund of this State. The Director may reduce | ||
the penalty if the insurer demonstrates to the Director that | ||
the imposition of the penalty would constitute a financial | ||
hardship to the insurer.
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(215 ILCS 5/131.16) (from Ch. 73, par. 743.16)
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Sec. 131.16. Reporting material changes or additions; | ||
penalty for late
registration statement. | ||
(1) Each registered company must keep current the | ||
information required to be
included in its registration | ||
statement by reporting all material changes
or additions on |
amendment forms designated by the Director within 15 days
after | ||
the end of the month in which it learns of each change or | ||
addition,
or within a longer time thereafter as the Director | ||
may establish. Any
transaction which has been submitted to the | ||
Director pursuant to Section
131.20a need not be reported to | ||
the Director under this subsection; except
each registered | ||
company must
report all dividends and other distributions to | ||
shareholders within 5 15
business days following the | ||
declaration , and no less than 10 business days prior to payment | ||
thereof .
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(2) On or before May 1 each year, each company subject to | ||
registration
under this Article shall file a statement in a | ||
format as designated by
the Director. This statement shall | ||
include information previously included
in an amendment under | ||
subsection (1) of this Section, transactions and
agreements
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submitted under Section 131.20a, and any other material | ||
transactions which
are required to be reported.
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(2.5) Any person within an insurance holding company system | ||
subject to registration shall be required to provide complete | ||
and accurate information to a company where the information is | ||
reasonably necessary to enable the company to comply with the | ||
provisions of this Article. | ||
(3) Any company failing, without just cause, to file any | ||
registration
statement, any summary of changes to a | ||
registration statement, or any Enterprise Risk Filing or any | ||
person within an insurance holding company system who fails to |
provide complete and accurate information to a company as | ||
required in this Code shall be required , after notice and | ||
hearing,
to pay a penalty of up to $1,000 for each day's delay, | ||
to be
recovered by the Director
of Insurance of the State of | ||
Illinois , using the notice and hearing procedure in subsection | ||
(2) of Section 403A of this Code, and the penalty so recovered | ||
shall
be paid into the General Revenue Fund of the State of | ||
Illinois. The maximum
penalty under this section is $50,000. | ||
The Director may reduce
the penalty if the company demonstrates | ||
to the Director that the imposition
of the penalty would | ||
constitute a financial hardship to the company.
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(Source: P.A. 98-609, eff. 1-1-14.)
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(215 ILCS 5/131.20a) (from Ch. 73, par. 743.20a)
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Sec. 131.20a. Prior notification of transactions; | ||
dividends and
distributions. | ||
(1) (a) The following transactions listed in items (i) | ||
through (vii) involving a domestic
company and any person in | ||
its insurance holding company system, including amendments or | ||
modifications (other than termination) of affiliate agreements | ||
previously filed pursuant to this Section, which are subject to | ||
any materiality standards contained in this Section, may not be | ||
entered
into unless the company has notified the Director in | ||
writing of its
intention to enter into such transaction at | ||
least 30 days prior thereto, or
such shorter period as the | ||
Director may permit, and the Director has not
disapproved it |
within such period. The notice for amendments or modifications | ||
(other than termination) shall include the reasons for the | ||
change and the financial impact on the domestic company. | ||
Informal notice shall be reported, within 30 days after a | ||
termination of a previously filed agreement, to the Director | ||
for determination of the type of filing required, if any.
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(i) Sales, purchases, exchanges of assets, loans or | ||
extensions of credit,
guarantees, investments, or any | ||
other transaction, except dividends, that involves the
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transfer of assets from or liabilities to a company (A) | ||
equal to or exceeding the
lesser of 3% of the
company's | ||
admitted assets or 25% of its surplus as regards
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policyholders as
of the 31st day of December next preceding | ||
or (B) that is proposed when the
domestic
company is not | ||
eligible to declare and pay a dividend or other | ||
distribution
pursuant to the provisions of Section 27.
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(ii) Loans or extensions of credit to any person that | ||
is not an
affiliate (A) that involve the lesser of 3% of | ||
the company's
admitted assets
or 25% of the company's | ||
surplus, each as of the 31st day of December next
| ||
preceding, made with the agreement or understanding that | ||
the proceeds of
such transactions, in whole or in | ||
substantial part, are to be used to make
loans or | ||
extensions of credit to, to purchase assets of, or to make
| ||
investments in, any affiliate of the company making such | ||
loans or extensions of
credit or (B) that are proposed when |
the domestic company is not eligible to
declare and
pay a | ||
dividend or other distribution pursuant to the provisions | ||
of
Section 27.
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(iii) Reinsurance agreements or modifications thereto, | ||
including all reinsurance pooling agreements, reinsurance | ||
agreements in which the reinsurance premium or a change in | ||
the company's liabilities, or the projected reinsurance | ||
premium or a change in the company's liabilities in any of | ||
the next 3 years, equals or exceeds 5% of the company's | ||
surplus as regards policyholders, as of the 31st day of | ||
December next preceding, including those
agreements that | ||
may require as consideration the transfer of assets from a | ||
company to a nonaffiliate, if an agreement or understanding | ||
exists between the
company and nonaffiliate that any | ||
portion of those assets will be transferred
to one or more | ||
affiliates of the company.
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(iv) All management agreements; service contracts, | ||
other than agency contracts; tax allocation agreements;
| ||
all reinsurance allocation agreements related to
| ||
reinsurance agreements required to be filed under this
| ||
Section; and all cost-sharing
arrangements.
| ||
(v) Direct or indirect acquisitions or investments in a | ||
person that controls the company, or in an affiliate of the | ||
company, in an amount which, together with its present | ||
holdings in such investments, exceeds 2.5% of the company's | ||
surplus as regards policyholders. Direct or indirect |
acquisitions or investments in subsidiaries acquired | ||
pursuant to Section 131.2 of this Article (or authorized | ||
under any other Section of this Code), or in non-subsidiary | ||
insurance affiliates that are subject to the provisions of | ||
this Article, are exempt from this requirement. | ||
(vi) Any series of the previously described | ||
transactions that are
substantially similar to each other, | ||
that take place within any 180 day period,
and that in | ||
total are equal to or exceed the lesser of 3% of the | ||
domestic
company's
admitted assets or 25% of its | ||
policyholders surplus, as of the 31st day of the
December | ||
next preceding.
| ||
(vii) Any other material transaction that the
Director | ||
by rule determines
might render the company's surplus as | ||
regards policyholders
unreasonable in
relation to the | ||
company's outstanding liabilities and inadequate to its
| ||
financial needs or may otherwise adversely affect the | ||
interests of the
company's policyholders or shareholders.
| ||
Nothing herein contained shall be deemed to authorize or | ||
permit any
transactions that, in the case of a company not a | ||
member of the same holding
company system, would be otherwise | ||
contrary to law.
| ||
(b) Any transaction or contract otherwise described in | ||
paragraph (a) of this
subsection that is between a domestic | ||
company and any person that is not its
affiliate and that | ||
precedes or follows within 180 days or is concurrent with a
|
similar transaction between that nonaffiliate and an affiliate | ||
of the domestic
company and that involves amounts that are | ||
equal to or exceed the lesser of 3%
of the domestic company's | ||
admitted assets or 25% of its surplus as regards
policyholders | ||
at the end of the prior year may not be entered into unless the
| ||
company has notified the Director in writing of its intention | ||
to enter into the
transaction at least 30 days prior thereto or | ||
such shorter period as the
Director may permit, and the | ||
Director has not disapproved it within such
period.
| ||
(c) A company may not enter into transactions which are | ||
part of
a plan
or series of like transactions with any person | ||
within the holding company
system if the purpose of those | ||
separate transactions is to avoid the
statutory threshold | ||
amount and thus avoid the review that would occur
otherwise. If | ||
the Director determines that such separate transactions were
| ||
entered into for such purpose, he may
exercise his authority | ||
under subsection (2) of Section 131.24.
| ||
(d) The Director, in reviewing transactions pursuant to | ||
paragraph (a),
shall consider whether the transactions comply | ||
with the standards set forth in
Section 131.20 and whether they | ||
may adversely affect the interests of
policyholders.
| ||
(e) The Director shall be notified within 30 days of any | ||
investment of the
domestic company in any one corporation if | ||
the total investment in that
corporation by the insurance | ||
holding company system exceeds 10% of that
corporation's voting | ||
securities.
|
(f) Except for those transactions subject to approval
under | ||
other
Sections
of this Code,
any such transaction or agreements | ||
which are not disapproved by the
Director may be effective as | ||
of the date set forth in the notice required
under this | ||
Section.
| ||
(g) If a domestic company enters into a transaction | ||
described in this
subsection without having given the required | ||
notification, the Director , using the notice and hearing | ||
procedure in subsection (2) of Section 403A of this Code, may
| ||
cause the company to pay a civil forfeiture of not more than | ||
$250,000. Each
transaction so entered shall be considered a | ||
separate offense.
| ||
(2) No domestic company subject to registration under | ||
Section 131.13 may
pay any extraordinary dividend or make any | ||
other extraordinary distribution
to its shareholders until: | ||
(a) 30 days after the Director has received
notice of the | ||
declaration thereof and has not within such period
disapproved | ||
the payment, or (b) the Director approves such payment within
| ||
the 30-day period. For purposes of this subsection, an | ||
extraordinary
dividend or distribution is any dividend or | ||
distribution of cash or other
property whose fair market value, | ||
together with that of other dividends or
distributions, made | ||
within the period of 12 consecutive months ending on the
date | ||
on which the proposed dividend is scheduled for payment or
| ||
distribution exceeds the greater of: (a) 10% of the company's
| ||
surplus as regards policyholders as of the 31st day of December |
next
preceding, or (b) the net income of the company for the | ||
12-month period ending the 31st day
of December next preceding, | ||
but does not include pro rata distributions of
any class of the | ||
company's own securities.
| ||
Notwithstanding any other provision of law, the company may | ||
declare an
extraordinary dividend or distribution which is | ||
conditional upon the
Director's approval, and such a | ||
declaration confers no rights upon
security holders until: (a) | ||
the Director has approved the payment of the
dividend or | ||
distribution, or (b) the Director has not disapproved the
| ||
payment within the 30-day period referred to above.
| ||
(Source: P.A. 98-609, eff. 1-1-14.)
| ||
(215 ILCS 5/139) (from Ch. 73, par. 751)
| ||
Sec. 139. Penalties for late or false annual statement.
| ||
(1) Any company failing, without just cause, to file its | ||
financial
statements as required in this Code shall be | ||
required, after notice and
hearing, to pay a penalty of up to | ||
$1,000 for each day's delay, to
be recovered by
the Director of | ||
Insurance of the State of Illinois using the notice and hearing | ||
procedure in subsection (2) of Section 403A of this Code, and | ||
the penalty so
recovered shall be paid into the General Revenue | ||
fund of the State of
Illinois. The Director may reduce the | ||
penalty if the company demonstrates
to the Director that the | ||
imposition of the penalty would constitute a financial
hardship | ||
to the company.
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Any statement which is not materially complete when filed
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
shall
not be considered to have been properly filed until those | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
deficiencies
which make the filing incomplete have been | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
corrected and filed.
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(2) Any director, officer, agent or employee of any | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
company, who
subscribes to, makes or concurs in making or | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
publishing any annual or other
statement required by law, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
knowing the same to contain any material
statement which is | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
false shall, after notice and hearing, be guilty of a
business | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
offense and shall be fined not more than $50,000.
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The penalty shall be paid into the General Revenue fund of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the State of
Illinois.
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(Source: P.A. 88-364.)
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Section 97. Severability. The provisions of this Act are | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
severable under Section 1.31 of the Statute on Statutes.
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Section 99. Effective date. This Act takes effect July 1, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015.
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