Public Act 099-0542
 
SB2944 EnrolledLRB099 16156 EGJ 40482 b


  
    AN ACT concerning regulation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Illinois Insurance Code is amended  by 
changing Section 35A-15 as follows:
 



    (215 ILCS 5/35A-15)



    Sec. 35A-15. Company action level event. 

    (a) A company action level event means any of the following 
events:


        (1) The filing of an RBC Report by an insurer that 
    indicates that:


            (A) the insurer's total adjusted capital is 
        greater than or equal to its
regulatory action level 
        RBC, but less than its company action level RBC;


            (B) the insurer, if a life, health, or life and 
        health insurer or a fraternal benefit society, has

        total adjusted capital that is greater than or equal
to 
        its company action level RBC, but less than the product 
        of its authorized
control level RBC and 3.0 and has a 
        negative trend; or

            (C) the insurer, if a property and casualty 
        insurer, has total adjusted capital that is greater 
        than or equal
to its company action level RBC, but less 
        than the product of its authorized
control level RBC 
        and 3.0 and triggers the trend test determined in 
        accordance with the trend test calculation included in 
        the property and casualty RBC Instructions. 
            (D) the insurer, if a health organization, has 
        total adjusted capital that is greater than or equal to 
        its company action level RBC but less than the product 
        of its authorized control level RBC and 3.0 and 
        triggers the trend test determined in accordance with 
        the trend test calculation included in the Health RBC 
        Instructions. 

        (2) The notification by the Director to the insurer of 
    an Adjusted RBC
Report that indicates an event described in

    paragraph (1),
provided the insurer does not challenge the 
    Adjusted RBC Report under Section
35A-35.


        (3) The notification by the Director to the insurer 
    that the Director has,
after a hearing, rejected the 
    insurer's challenge under Section 35A-35 to an
Adjusted RBC 
    Report that indicates the event described in paragraph (1).

    (b) In the event of a company action level event, the 
insurer shall prepare
and submit to the Director an RBC Plan 
that does
all of the following:


        (1) Identifies the conditions that contribute to the

    company action level event.


        (2) Contains proposed corrective actions that the 
    insurer intends to
take and that are expected to result in 
    the elimination of the company action
level event.
A health 
    organization is not prohibited from
proposing recognition 
    of a parental guarantee or a letter of credit to
eliminate 
    the company action level event; however the Director shall, 
    at his
discretion, determine whether or the extent to which 
    the proposed parental
guarantee or letter of credit is an 
    acceptable part of a satisfactory RBC Plan
or Revised RBC 
    Plan. 


        (3) Provides projections of the insurer's financial 
    results in the current
year and at least the 4 succeeding 
    years, both in the absence of proposed
corrective actions 
    and giving effect to the proposed corrective actions,

    including projections of statutory operating income, net 
    income, capital, and
surplus.  The projections for both new 
    and renewal business may include
separate projections for 
    each major line of business and separately identify
each 
    significant income, expense, and benefit component.


        (4) Identifies the key assumptions affecting the 
    insurer's projections
and the sensitivity of the 
    projections to the assumptions.


        (5) Identifies the quality of, and problems associated 
    with, the insurer's
business including, but not limited to, 
    its assets, anticipated business growth
and associated 
    surplus strain, extraordinary exposure to risk, mix of 
    business,
and use of reinsurance, if any, in each case.

    (c) The insurer shall submit the RBC Plan to the Director  
within 45 days
after the company action
level event occurs or 
within 45 days after the Director notifies the insurer
that the 
Director has, after a hearing, rejected its
 challenge under 
Section 35A-35 to an
Adjusted RBC Report.

    (d) Within 60 days after an insurer submits an RBC Plan to 
the
Director, the Director shall notify the insurer whether the 
RBC Plan shall be
implemented or is, in the judgment of the 
Director, unsatisfactory.  If the
Director determines the RBC 
Plan is unsatisfactory,
the notification to the insurer shall 
set forth the reasons for the
determination
and may set forth 
proposed revisions that will render the RBC Plan satisfactory

in the judgment of the Director.  Upon notification from the 
Director, the
insurer shall prepare a Revised RBC Plan, which 
may incorporate by reference
any revisions proposed by the 
Director.  The insurer shall submit the Revised
RBC Plan to the 
Director within 45 days after the Director notifies the insurer

that the RBC Plan is unsatisfactory or within 45 days after the 
Director
notifies the insurer that the Director has, after a 
hearing, rejected its
challenge under Section 35A-35 to the 
determination that the RBC Plan is
unsatisfactory.

    (e) In the event the Director notifies an insurer that its

RBC Plan or Revised RBC Plan is unsatisfactory, the Director 
may, at
the Director's discretion and subject to the insurer's 
right to a hearing under
Section 35A-35, specify in the 
notification that the notification constitutes a
regulatory 
action level event.

    (f) Every domestic insurer that files an RBC Plan or 
Revised RBC Plan with
the Director shall file a copy of the RBC 
Plan or Revised RBC Plan with the
chief insurance regulatory 
official in any state in which the insurer is
authorized to do 
business if that state has a law substantially similar to the

confidentiality provisions in subsection (a) of Section 35A-50 
and if that
official requests in writing a copy of the plan.  
The insurer shall file a copy
of the
RBC Plan or Revised RBC 
Plan in that state no later than the later of
15 days after 
receiving the written request for the copy or
the date on which 
the RBC Plan or Revised RBC Plan is filed under
subsection (c) 
or (d) of this Section.

(Source: P.A. 97-955, eff. 8-14-12; 98-157, eff. 8-2-13.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law. 
  


Effective Date:  7/8/2016