Public Act 90-0583 of the 90th General Assembly
Public Act 90-0583
SB659 Enrolled LRB9000419JSgcA
AN ACT concerning insurance company privilege taxes,
amending named Acts.
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 Sections 408, 409, 444, 444.1, and 531.13 as
follows:
(215 ILCS 5/408) (from Ch. 73, par. 1020)
Sec. 408. Fees and charges.
(1) The Director shall charge, collect and give proper
acquittances for the payment of the following fees and
charges:
(a) For filing all documents submitted for the
incorporation or organization or certification of a
domestic company, except for a fraternal benefit society,
$1,000.
(b) For filing all documents submitted for the
incorporation or organization of a fraternal benefit
society, $250.
(c) For filing amendments to articles of
incorporation and amendments to declaration of
organization, except for a fraternal benefit society, a
mutual benefit association, a burial society or a farm
mutual, $100.
(d) For filing amendments to articles of
incorporation of a fraternal benefit society, a mutual
benefit association or a burial society, $50.
(e) For filing amendments to articles of
incorporation of a farm mutual, $25.
(f) For filing bylaws or amendments thereto, $25.
(g) For filing agreement of merger or
consolidation:
(i) for a domestic company, except for a
fraternal benefit society, a mutual benefit
association, a burial society, or a farm mutual,
$1,000.
(ii) for a foreign or alien company, except
for a fraternal benefit society, $300.
(iii) for a fraternal benefit society, a
mutual benefit association, a burial society, or a
farm mutual, $100.
(h) For filing agreements of reinsurance by a
domestic company, $100.
(i) For filing all documents submitted by a foreign
or alien company to be admitted to transact business or
accredited as a reinsurer in this State, except for a
fraternal benefit society, $2,500.
(j) For filing all documents submitted by a foreign
or alien fraternal benefit society to be admitted to
transact business in this State, $250.
(k) For filing declaration of withdrawal of a
foreign or alien company, $25.
(l) For filing annual statement, except a fraternal
benefit society, a mutual benefit association, a burial
society, or a farm mutual, $100.
(m) For filing annual statement by a fraternal
benefit society, $50.
(n) For filing annual statement by a farm mutual, a
mutual benefit association, or a burial society, $25.
(o) For issuing a certificate of authority or
renewal thereof except to a fraternal benefit society,
$100.
(p) For issuing a certificate of authority or
renewal thereof to a fraternal benefit society, $50.
(q) For issuing an amended certificate of
authority, $25.
(r) For each certified copy of certificate of
authority, $10.
(s) For each certificate of deposit, or valuation,
or compliance or surety certificate, $10.
(t) For copies of papers or records per page, $1.
(u) For each certification to copies of papers or
records, $10.
(v) For multiple copies of documents or
certificates listed in subparagraphs (r), (s), and (u) of
paragraph (1) of this Section, $10 for the first copy of
a certificate of any type and $5 for each additional copy
of the same certificate requested at the same time,
unless, pursuant to paragraph (2) of this Section, the
Director finds these additional fees excessive.
(w) For issuing a permit to sell shares or increase
paid-up capital:
(i) in connection with a public stock
offering, $150;
(ii) in any other case, $50.
(x) For issuing any other certificate required or
permissible under the law, $25.
(y) For filing a plan of exchange of the stock of a
domestic stock insurance company, a plan of
demutualization of a domestic mutual company, or a plan
of reorganization under Article XII, $1,000.
(z) For filing a statement of acquisition of a
domestic company as defined in Section 131.4 of this
Code, $1,000.
(aa) For filing an agreement to purchase the
business of an organization authorized under the Dental
Service Plan Act or the Voluntary Health Services Plans
Act or of a health maintenance organization or a limited
health service organization, $1,000.
(bb) For filing a statement of acquisition of a
foreign or alien insurance company as defined in Section
131.12a of this Code, $500.
(cc) For filing a registration statement as
required in Sections 131.13 and 131.14, the notification
as required by Sections 131.16, 131.20a, or 141.4, or an
agreement or transaction required by Sections 124.2(2),
141, 141a, or 141.1, $100.
(dd) For filing an application for licensing of:
(i) a religious or charitable risk pooling
trust or a workers' compensation pool, $500;
(ii) a workers' compensation service company,
$250;
(iii) a self-insured automobile fleet, $100;
or
(iv) a renewal of or amendment of any license
issued pursuant to (i), (ii), or (iii) above, $50.
(ee) For filing articles of incorporation for a
syndicate to engage in the business of insurance through
the Illinois Insurance Exchange, $1,000.
(ff) For filing amended articles of incorporation
for a syndicate engaged in the business of insurance
through the Illinois Insurance Exchange, $50.
(gg) For filing articles of incorporation for a
limited syndicate to join with other subscribers or
limited syndicates to do business through the Illinois
Insurance Exchange, $500.
(hh) For filing amended articles of incorporation
for a limited syndicate to do business through the
Illinois Insurance Exchange, $50.
(ii) For a permit to solicit subscriptions to a
syndicate or limited syndicate, $50.
(jj) For the filing of each form as required in
Section 143 of this Code, $25 per form. The fee for
advisory and rating organizations shall be $100 per form.
(i) For the purposes of the form filing fee,
filings made on insert page basis will be considered
one form at the time of its original submission.
Changes made to a form subsequent to its approval
shall be considered a new filing.
(ii) Only one fee shall be charged for a form,
regardless of the number of other forms or policies
with which it will be used.
(iii) Fees charged for a policy filed as it
will be issued regardless of the number of forms
comprising that policy shall not exceed $500 or
$1000 for advisory or rating organizations.
(iv) The Director may by rule exempt forms
from such fees.
(kk) For filing an application for licensing of a
reinsurance intermediary, $250.
(ll) For filing an application for renewal of a
license of a reinsurance intermediary, $100.
(2) When printed copies or numerous copies of the same
paper or records are furnished or certified, the Director may
reduce such fees for copies if he finds them excessive. He
may, when he considers it in the public interest, furnish
without charge to state insurance departments and persons
other than companies, copies or certified copies of reports
of examinations and of other papers and records.
(3) The expenses incurred in any performance examination
authorized by law shall be paid by the company or person
being examined. The charge shall be reasonably related to the
cost of the examination including but not limited to
compensation of examiners, electronic data processing costs,
supervision and preparation of an examination report and
lodging and travel expenses. All lodging and travel expenses
shall be in accord with the applicable travel regulations as
published by the Department of Central Management Services
and approved by the Governor's Travel Control Board, except
that out-of-state lodging and travel expenses related to
examinations authorized under Section 132 shall be in
accordance with travel rates prescribed under paragraph
301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
for reimbursement of subsistence expenses incurred during
official travel. All lodging and travel expenses may be
reimbursed directly upon authorization of the Director. With
the exception of the direct reimbursements authorized by the
Director, all performance examination charges collected by
the Department shall be paid to the Insurance Producers
Administration Fund, however, the electronic data processing
costs incurred by the Department in the performance of any
examination shall be billed directly to the company being
examined for payment to the Statistical Services Revolving
Fund.
(4) At the time of any service of process on the
Director as attorney for such service, the Director shall
charge and collect the sum of $10.00, which may be recovered
as taxable costs by the party to the suit or action causing
such service to be made if he prevails in such suit or
action.
(5) (a) The costs incurred by the Department of
Insurance in conducting any hearing authorized by law shall
be assessed against the parties to the hearing in such
proportion as the Director of Insurance may determine upon
consideration of all relevant circumstances including: (1)
the nature of the hearing; (2) whether the hearing was
instigated by, or for the benefit of a particular party or
parties; (3) whether there is a successful party on the
merits of the proceeding; and (4) the relative levels of
participation by the parties.
(b) For purposes of this subsection (5) costs incurred
shall mean the hearing officer fees, court reporter fees, and
travel expenses of Department of Insurance officers and
employees; provided however, that costs incurred shall not
include hearing officer fees or court reporter fees unless
the Department has retained the services of independent
contractors or outside experts to perform such functions.
(c) The Director shall make the assessment of costs
incurred as part of the final order or decision arising out
of the proceeding; provided, however, that such order or
decision shall include findings and conclusions in support of
the assessment of costs. This subsection (5) shall not be
construed as permitting the payment of travel expenses unless
calculated in accordance with the applicable travel
regulations of the Department of Central Management Services,
as approved by the Governor's Travel Control Board. The
Director as part of such order or decision shall require all
assessments for hearing officer fees and court reporter fees,
if any, to be paid directly to the hearing officer or court
reporter by the party(s) assessed for such costs. The
assessments for travel expenses of Department officers and
employees shall be reimbursable to the Director of Insurance
for deposit to the fund out of which those expenses had been
paid.
(d) The provisions of this subsection (5) shall apply in
the case of any hearing conducted by the Director of
Insurance not otherwise specifically provided for by law.
(6) The Director shall charge and collect an annual
financial regulation fee from every domestic company for
examination and analysis of its financial condition and to
fund the internal costs and expenses of the Interstate
Insurance Receivership Commission as may be allocated to the
State of Illinois and companies doing an insurance business
in this State pursuant to Article X of the Interstate
Insurance Receivership Compact. The fee shall be the greater
fixed amount based upon the combination of nationwide direct
premium income and nationwide reinsurance assumed premium
income or upon admitted assets calculated under this
subsection as follows:
(a) Combination of nationwide direct premium income
and nationwide reinsurance assumed premium.
(i) $100, if the premium is less than $500,000
and there is no reinsurance assumed premium;
(ii) $500, if the premium is $500,000 or more,
but less than $5,000,000 and there is no reinsurance
assumed premium; or if the premium is less than
$5,000,000 and the reinsurance assumed premium is
less than $10,000,000;
(iii) $2,500, if the premium is less than
$5,000,000 and the reinsurance assumed premium is
$10,000,000 or more;
(iv) $5,000, if the premium is $5,000,000 or
more, but less than $10,000,000;
(v) $12,000 $7,500, if the premium is
$10,000,000 or more, but less than $25,000,000;
(vi) $15,000 $10,000, if the premium is
$25,000,000 or more, but less than $50,000,000;
(vii) $20,000 $14,000, if the premium is
$50,000,000 or more, but less than $100,000,000;
(viii) $25,000 $16,000, if the premium is
$100,000,000 or more.
(b) Admitted assets.
(i) $100, if admitted assets are less than
$1,000,000;
(ii) $500, if admitted assets are $1,000,000
or more, but less than $5,000,000;
(iii) 2,500, if admitted assets are $5,000,000
or more, but less than $25,000,000;
(iv) $5,000, if admitted assets are
$25,000,000 or more, but less than $50,000,000;
(v) $12,000 $7,500, if admitted assets are
$50,000,000 or more, but less than $100,000,000;
(vi) $15,000 $10,000, if admitted assets are
$100,000,000 or more, but less than $500,000,000;
(vii) $20,000 $14,000, if admitted assets are
$500,000,000 or more, but less than $1,000,000,000;
(viii) $25,000 $16,000, if admitted assets are
$1,000,000,000 or more.
(c) The sum of financial regulation fees charged to
the domestic companies of the same domestic affiliated
group shall not exceed $100,000 in the aggregate in any
single year and shall be billed by the Director to the
member company designated by the group.
(7) The Director shall charge and collect an annual
financial regulation fee from every foreign or alien company,
except fraternal benefit societies, for the examination and
analysis of its financial condition and to fund the internal
costs and expenses of the Interstate Insurance Receivership
Commission as may be allocated to the State of Illinois and
companies doing an insurance business in this State pursuant
to Article X of the Interstate Insurance Receivership
Compact. The fee shall be a fixed amount based upon Illinois
direct premium income and nationwide reinsurance assumed
premium income in accordance with the following schedule:
(a) $100, if the premium is less than $500,000 and
there is no reinsurance assumed premium;
(b) $500, if the premium is $500,000 or more, but
less than $5,000,000 and there is no reinsurance assumed
premium; or if the premium is less than $5,000,000 and
the reinsurance assumed premium is less than $10,000,000;
(c) $2,500, if the premium is less than $5,000,000
and the reinsurance assumed premium is $10,000,000 or
more;
(d) $5,000, if the premium is $5,000,000 or more,
but less than $10,000,000;
(e) $12,000, if the premium is $10,000,000 or more,
but less than $25,000,000;
(f) $15,000, if the premium is $25,000,000 or more,
but less than $50,000,000;
(g) $20,000, if the premium is $50,000,000 or more,
but less than $100,000,000;
(h) $25,000, if the premium is $100,000,000 or
more.
The sum of financial regulation fees under this
subsection (7) charged to the foreign or alien companies
within the same affiliated group shall not exceed $100,000 in
the aggregate in any single year and shall be billed by the
Director to the member company designated by the group.
(8) Beginning January 1, 1992, the financial regulation
fees imposed under subsections (6) and (7) of this Section
shall be paid by each company or domestic affiliated group
annually. After January 1, 1994, the fee shall be billed by
Department invoice based upon the company's premium income or
admitted assets as shown in its annual statement for the
preceding calendar year. The invoice is due upon receipt and
must be paid no later than June 30 of each calendar year.
All financial regulation fees collected by the Department
shall be paid to the Insurance Financial Regulation Fund.
The Department may not collect financial examiner per diem
charges from companies subject to subsections (6) and (7) of
this Section undergoing financial examination after June 30,
1992.
(9) In addition to the financial regulation fee required
by this Section, a company undergoing any financial
examination authorized by law shall pay the following costs
and expenses incurred by the Department: electronic data
processing costs, the expenses authorized under Section
131.21 and subsection (d) of Section 132.4 of this Code, and
lodging and travel expenses.
Electronic data processing costs incurred by the
Department in the performance of any examination shall be
billed directly to the company undergoing examination for
payment to the Statistical Services Revolving Fund. Except
for direct reimbursements authorized by the Director or
direct payments made under Section 131.21 or subsection (d)
of Section 132.4 of this Code, all financial regulation fees
and all financial examination charges collected by the
Department shall be paid to the Insurance Financial
Regulation Fund.
All lodging and travel expenses shall be in accordance
with applicable travel regulations published by the
Department of Central Management Services and approved by the
Governor's Travel Control Board, except that out-of-state
lodging and travel expenses related to examinations
authorized under Sections 132.1 through 132.7 shall be in
accordance with travel rates prescribed under paragraph
301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
for reimbursement of subsistence expenses incurred during
official travel. All lodging and travel expenses may be
reimbursed directly upon the authorization of the Director.
In the case of an organization or person not subject to
the financial regulation fee, the expenses incurred in any
financial examination authorized by law shall be paid by the
organization or person being examined. The charge shall be
reasonably related to the cost of the examination including,
but not limited to, compensation of examiners and other costs
described in this subsection.
(10) Any company, person, or entity failing to make any
payment of $100 or more as required under this Section shall
be subject to the penalty and interest provisions provided
for in subsections (4) and (7) of Section 412.
(11) Unless otherwise specified, all of the fees
collected under this Section shall be paid into the Insurance
Financial Regulation Fund.
(12) For purposes of this Section:
(a) "domestic company" means a company as defined
in Section 2 of this Code which is incorporated or
organized under the laws of this State, and in addition
includes a not-for-profit corporation authorized under
the Dental, Pharmaceutical, or Voluntary Health Service
Plan Acts, and a health maintenance organization and a
limited health service organization;
(b) "foreign company" means a company as defined in
Section 2 of this Code which is incorporated or organized
under the laws of any state of the United States other
than this State and in addition includes a health
maintenance organization and a limited health service
organization which is incorporated or organized under the
laws of any state of the United States other than this
State;
(c) "alien company" means a company as defined in
Section 2 of this Code which is incorporated or organized
under the laws of any country other than the United
States;
(d) "fraternal benefit society" means a
corporation, society, order, lodge or voluntary
association as defined in Section 282.1 of this Code;
(e) "mutual benefit association" means a company,
association or corporation authorized by the Director to
do business in this State under the provisions of Article
XVIII of this Code;
(f) "burial society" means a person, firm,
corporation, society or association of individuals
authorized by the Director to do business in this State
under the provisions of Article XIX of this Code; and
(g) "farm mutual" means a district, county and
township mutual insurance company authorized by the
Director to do business in this State under the
provisions of the Farm Mutual Insurance Company Act of
1986.
(Source: P.A. 89-97, eff. 7-7-95; 89-247, eff. 1-1-96;
89-626, eff. 8-9-96; 90-177, eff. 7-23-97.)
(215 ILCS 5/409) (from Ch. 73, par. 1021)
Sec. 409. Annual privilege tax payable by foreign or
alien companies.
(1) As of January 1, 1999 for all health maintenance
organization premiums written; as of July 1, 1998 for all
premiums written as accident and health business, voluntary
health service plan business, dental service plan business,
or limited health service organization business; and as of
January 1, 1998 for all other types of insurance premiums
written, every company doing any form of insurance business
in this State, including, but not limited to, every risk
retention group, and excluding all fraternal benefit
societies, all farm mutual companies, all religious
charitable risk pooling trusts, and excluding all statutory
residual market and special purpose entities in which
companies are statutorily required to participate, whether
incorporated or otherwise, shall pay, for the privilege of
doing business in this State, to the Director for the State
treasury a State tax equal to 0.5% of the net taxable premium
written, together with any amounts due under Section 444 of
this Code, except that the tax to be paid on any premium
derived from any accident and health insurance or on any
insurance business written by any company operating as a
health maintenance organization, voluntary health service
plan, dental service plan, or limited health service
organization shall be equal to 0.4% of such net taxable
premium written, together with any amounts due under Section
444. Upon the failure of any company to pay any such tax
due, the Director may, by order, revoke or suspend the
company's certificate of authority after giving 20 days
written notice to the company, or commence proceedings for
the suspension of business in this State under the procedures
set forth by Section 401.1 of this Code. The gross taxable
premium written shall be the gross amount of premiums
received on direct business during the calendar year on
contracts covering risks in this State, except premiums on
annuities, premiums on which State premium taxes are
prohibited by federal law, premiums paid by the State for
health care coverage for Medicaid eligible insureds as
described in Section 5-2 of the Illinois Public Aid Code,
premiums paid for health care services included as an element
of tuition charges at any university or college owned and
operated by the State of Illinois, premiums on group
insurance contracts under the State Employees Group Insurance
Act of 1971, and except premiums for deferred compensation
plans for employees of the State, units of local government,
or school districts. The net taxable premium shall be the
gross taxable premium written reduced only by the following:
(a) the amount of premiums returned thereon which
shall be limited to premiums returned during the same
preceding calendar year and shall not include the return
of cash surrender values or death benefits on life
policies including annuities;
(b) dividends on such direct business that have
been paid in cash, applied in reduction of premiums or
left to accumulate to the credit of policyholders or
annuitants. In the case of life insurance, no deduction
shall be made for the payment of deferred dividends paid
in cash to policyholders on maturing policies; dividends
left to accumulate to the credit of policyholders or
annuitants shall be included as gross taxable premium
written when such dividend accumulations are applied to
purchase paid-up insurance or to shorten the endowment or
premium paying period.
(2) The annual privilege tax payment due from a company
under subsection (4) of this Section may be reduced by: (a)
the excess amount, if any, by which the aggregate income
taxes paid by the company, on a cash basis, for the preceding
calendar year under subsections (a) through (d) of Section
201 of the Illinois Income Tax Act exceed 1.5% of the
company's net taxable premium written for that prior calendar
year, as determined under subsection (1) of this Section; and
(b) the amount of any fire department taxes paid by the
company during the preceding calendar year under Section
11-10-1 of the Illinois Municipal Code. Any deductible
amount or offset allowed under items (a) and (b) of this
subsection for any calendar year will not be allowed as a
deduction or offset against the company's privilege tax
liability for any other taxing period or calendar year.
(3) If a company survives or was formed by a merger,
consolidation, reorganization, or reincorporation, the
premiums received and amounts returned or paid by all
companies party to the merger, consolidation, reorganization,
or reincorporation shall, for purposes of determining the
amount of the tax imposed by this Section, be regarded as
received, returned, or paid by the surviving or new company.
(4)(a) All companies subject to the provisions of this
Section shall make an annual return for the preceding
calendar year on or before March 15 setting forth such
information on such forms as the Director may reasonably
require. Payments of quarterly installments of the
taxpayer's total estimated tax for the current calendar year
shall be due on or before April 15, June 15, September 15,
and December 15 of such year, except that all companies
transacting insurance in this State whose annual tax for the
immediately preceding calendar year was less than $5,000
shall make only an annual return. Failure of a company to
make the annual payment, or to make the quarterly payments,
if required, of at least 25% of either (i) the total tax paid
during the previous calendar year or (ii) 80% of the actual
tax for the current calendar year shall subject it to the
penalty provisions set forth in Section 412 of this Code.
(b) Notwithstanding the foregoing provisions, no annual
return shall be required or made on March 15, 1998, under
this subsection. For the calendar year 1998:
(i) each health maintenance organization shall have
no estimated tax installments;
(ii) all companies subject to the tax as of July 1,
1998 as set forth in subsection (1) shall have estimated
tax installments due on September 15 and December 15 of
1998 which installments shall each amount to no less than
one-half of 80% of the actual tax on its net taxable
premium written during the period July 1, 1998, through
December 31, 1998; and
(iii) all other companies shall have estimated tax
installments due on June 15, September 15, and December
15 of 1998 which installments shall each amount to no
less than one-third of 80% of the actual tax on its net
taxable premium written during the calendar year 1998.
In the year 1999 and thereafter all companies shall make
annual and quarterly installments of their estimated tax as
provided by paragraph (a) of this subsection.
(5) In addition to the authority specifically granted
under Article XXV of this Code, the Director shall have such
authority to adopt rules and establish forms as may be
reasonably necessary for purposes of determining the
allocation of Illinois corporate income taxes paid under
subsections (a) through (d) of Section 201 of the Illinois
Income Tax Act amongst members of a business group that files
an Illinois corporate income tax return on a unitary basis,
for purposes of regulating the amendment of tax returns, for
purposes of defining terms, and for purposes of enforcing the
provisions of Article XXV of this Code. The Director shall
also have authority to defer, waive, or abate the tax imposed
by this Section if in his opinion the company's solvency and
ability to meet its insured obligations would be immediately
threatened by payment of the tax due.
(1) Every foreign or alien company doing an insurance
business in this State, except fraternal benefit societies,
shall, for the privilege of doing business in this State by
renewal of certificate of authority as provided in Section
114, pay to the Director for the State treasury a State tax
equal to 2 per cent of the net taxable premium income,
together with any amounts due under Section 444. Every
domestic insurance company, except a fraternal benefit
society, which fails to comply with all the requirements of
subsection (4) of this Section must pay to the Director for
payment into the State Treasury a State tax equal to 2 per
cent of the net taxable premium income and upon the failure
of any company to pay any such tax due, the Director may, by
order, revoke the company's certificate of authority after
giving 20 days written notice to the company. The gross
taxable premium income shall be the gross amount of premiums
received on direct business during the preceding calendar
year on contracts covering risks in this State, except
premiums on annuities and except premiums on group insurance
contracts awarded after the effective date of this amendatory
Act of 1976 under the State Employees Group Insurance Act of
1971, and except premiums for deferred compensation plans for
employees of the State, units of local government or school
districts. The net taxable premium income shall be the gross
taxable premium income reduced only by the following:
(a) the amount of premiums returned thereon which
shall be limited to premiums returned during the
preceding calendar year and shall not include the return
of cash surrender values or death benefits on life
policies;
(b) dividends on such direct business that have
been paid in cash, applied in reduction of premiums or
left to accumulate to the credit of policyholders or
annuitants. In the case of life insurance, no deduction
shall be made for the payment of deferred dividends paid
in cash to policyholders on maturing policies; dividends
left to accumulate to the credit of policyholders or
annuitants shall be included as gross taxable premium
income when such dividend accumulations are applied to
purchase paid-up insurance or to shorten the endowment or
premium paying period.
(2) There shall be deducted from the tax thus computed,
but only to the extent thereof, the amount, if any, paid
during the preceding calendar year: (a) for the benefit of
organized fire departments, to cities, villages, incorporated
towns and fire protection districts of this State as a tax on
premiums received by such company in such cities, villages,
incorporated towns and fire protection districts, and (b) as
a tax to this State or any subdivision thereof on or measured
by net income, and (c) as a tax to this State or any
subdivision thereof on or measured by the value of the
company in excess of the value of its tangible property, and
(d) as a fee or charge for the valuation of life insurance
policies, and (e) if the company is not an Illinois domestic
company, as a financial regulation fee under subsection (7)
of Section 408 of this Code for the examination and analysis
of financial condition, and the remainder shall be paid by
such company as its annual privilege tax, and (f) for fees
paid pursuant to Section 408 (1) (jj).
(3) If a company survives or was formed by a merger,
consolidation, reorganization or reincorporation, the
premiums received, and amounts returned or paid, by all
foreign or alien companies parties to such merger,
consolidation, reorganization or reincorporation, shall, for
the purposes of determining the amount of the tax imposed by
this Section, be regarded as received, returned or paid by
such surviving or new company.
(4) A domestic company must pay the State tax in
subsection (1) of this Section unless:
(a) it maintains its principal place of business in
this State; and
(b) it maintains in this State officers and
personnel knowledgeable of and responsible for the
company's operation, books, records, administration, and
annual statement; and
(c) it conducts in this State substantially all of
its underwriting, policy issuing, and serving operations
relating to Illinois policyholders and certificate
holders; and
(d) it complies with the provisions of Section 133
(2) of this Code.
Payments shall be due on an estimated basis for all of
calendar year 1969 on or before September 1, 1969. Effective
January 1, 1970, a company shall make an annual return for
the preceding calendar year on or before March 1st setting
forth such information on such forms as the Director may
reasonably require. Payments of quarterly installments of
the taxpayer's total estimated tax for the current calendar
year shall be due on or before April 15th, June 15th,
September 15th and December 15th, unless for the calendar
year 1971, and each calendar year thereafter, insurers
transacting insurance in this State whose annual tax for the
preceding calendar year was less than $5,000, shall then make
only an annual return. Failure of a company to make
quarterly payments, if required, of at least one-fourth of
either (a) the total tax paid during the previous calendar
year or (b) 80% of the actual tax for the current calendar
year shall subject it to the penalty provisions set forth in
Section 412 of this Act.
(Source: P.A. 86-753; 87-108.)
(215 ILCS 5/444) (from Ch. 73, par. 1056)
Sec. 444. Retaliation.
(1) Whenever the existing or future laws of any other
state or country shall require of companies incorporated or
organized under the laws of this State as a condition
precedent to their doing business in such other state or
country, compliance with laws, rules, regulations, and
prohibitions more onerous or burdensome than the rules and
regulations imposed by this State on foreign or alien
companies, or shall require any deposit of securities or
other obligations in such state or country, for the
protection of policyholders or otherwise or require of such
companies or agents thereof or brokers the payment of
penalties, fees, charges, or taxes greater than the
penalties, fees, charges, or taxes required in the aggregate
for like purposes by this Code or any other law of this
State, of foreign or alien companies, agents thereof or
brokers, then such laws, rules, regulations, and prohibitions
of said other state or country shall apply to companies
incorporated or organized under the laws of such state or
country doing business in this State, and all such companies,
agents thereof, or brokers doing business in this State,
shall be required to make deposits, pay penalties, fees,
charges, and taxes, in amounts equal to those required in the
aggregate for like purposes of Illinois companies doing
business in such state or country, agents thereof or brokers.
Whenever any other state or country shall refuse to permit
any insurance company incorporated or organized under the
laws of this State to transact business according to its
usual plan in such other state or country, the director may,
if satisfied that such company of this State is solvent,
properly managed, and can operate legally under the laws of
such other state or country, forthwith suspend or cancel the
license of every insurance company doing business in this
State which is incorporated or organized under the laws of
such other state or country to the extent that it insures in
this State against any of the risks or hazards which are
sought to be insured against by the company of this State in
such other state or country.
(2) The provisions of this Section shall not apply to
residual market or special purpose assessments or guaranty
fund or guaranty association assessments, both under the laws
of this State and under the laws of any other state or
country, and any tax offset or credit for any such assessment
shall, for purposes of this Section, be treated as a tax paid
both under the laws of this State and under the laws of any
other state or country.
(3) The terms "penalties", "fees", "charges", and
"taxes" in subsection (1) of this Section shall include: the
penalties, fees, charges, and taxes collected under State law
and referenced within Article XXV exclusive of any items
referenced by subsection (2) of this Section, but including
any tax offset allowed under Section 531.13 of this Code; the
Illinois corporate income taxes imposed under subsections (a)
through (d) of Section 201 of the Illinois Income Tax Act
after any tax offset allowed under Section 531.13 of this
Code; income or personal property taxes imposed by other
states or countries; penalties, fees, charges, and taxes of
other states or countries imposed for purposes like those of
the penalties, fees, charges, and taxes specified in Article
XXV of this Code exclusive of any item referenced in
subsection (2) of this Section; and any penalties, fees,
charges, and taxes required as a franchise, privilege, or
licensing tax for conducting the business of insurance
whether calculated as a percentage of income, gross receipts,
premium, or otherwise.
(4) Nothing contained in this Section or Section 409 or
Section 444.1 is intended to authorize or expand any power of
local governmental units or municipalities to impose taxes,
fees, or charges.
(Source: Laws 1941, vol. 1, p. 837.)
(215 ILCS 5/444.1) (from Ch. 73, par. 1056.1)
Sec. 444.1. Payment of retaliatory taxes.
(1) Every foreign or alien company doing insurance
business in this State shall pay the Director the retaliatory
tax determined in accordance with Section 444.
(2) (a) All companies subject to the provisions of this
Section shall make an annual return for the preceding
calendar year on or before March 15 setting forth such
information on such forms as the Director may reasonably
require. Payments of quarterly installments of the
taxpayer's total estimated retaliatory tax for the current
calendar year shall be due on or before April 15, June 15,
September 15, and December 15 of such year, except that all
companies transacting insurance business in this State whose
annual tax for the immediately preceding calendar year was
less than $5,000 shall make only an annual return. Failure
of a company to make the annual payment, or to make the
quarterly payments, if required, of at least one-fourth of
either (i) the total tax paid during the previous calendar
year or (ii) 80% of the actual tax for the current calendar
year shall subject it to the penalty provisions set forth in
Section 412 of this Code.
(b) Notwithstanding the foregoing provisions of
paragraph (a) of this subsection, the retaliatory tax
liability of companies under Section 444 of this Code for the
calendar year ended December 31, 1997 shall be determined in
accordance with this amendatory Act of 1998 and shall include
in the aggregate comparative tax burden for the State of
Illinois, any tax offset allowed under Section 531.13 of this
Code and any income taxes paid for the year 1997 under
subsections (a) through (d) of Section 201 of the Illinois
Income Tax Act after any tax offset allowed under Section
531.13 of this Code.
(i) Any annual retaliatory tax returns and payments
made for the year ended December 31, 1997 and any
quarterly installments of the taxpayer's total estimated
1998 retaliatory tax liability paid prior to the
effective date of this Amendatory Act of 1998 that do not
include the items specified by subsection (1) of this
Section shall be amended and restated, at the taxpayer's
election, on forms prepared by the Director so as to
provide for the inclusion of such items. An amended and
restated return for the year ended December 31, 1997
filed under this subparagraph shall treat any payment of
estimated privilege taxes under Section 409 as in effect
prior to October 23, 1997 as a payment of estimated
retaliatory taxes for the year ended December 31, 1997.
(ii) Any overpayment resulting from such amended
return and restated tax liability shall be allowed as a
credit against any subsequent privilege or retaliatory
tax obligations of the taxpayer.
(iii) In the year 1999 and thereafter all companies
shall make annual and quarterly installments of their
estimated tax as provided by paragraph (a) of this
subsection. The Director may order that payments of such
tax shall be due on an estimated basis for the 1982
calendar year as provided in Section 409 on or before
April 15, June 15, September 15 and December 15. For the
1983 calendar year, and each calendar year thereafter,
the Director may order that payments of quarterly
installments of the total estimated tax shall be due and
payable on or before April 15, June 15, September 15 and
December 15 pursuant to this Section, and such payments
shall be in lieu of retaliatory tax payments otherwise
required by Section 409. For the 1983 calendar year, and
each calendar year thereafter, the taxpayer shall make
only an annual return if the annual tax for the preceding
calendar year was less than $5,000. Effective January 1,
1983, a company shall make an annual return for the
preceding calendar year on or before March 1 setting
forth such information on such forms as the Director may
reasonably require.
(3) Any tax payment made under this Section and any tax
returns prepared in compliance with Section 410 shall give
full consideration to the impact of any future reduction in
or elimination of a taxpayer's liability under Section 409,
whether such reduction or elimination is due to an operation
of law or an Act of the General Assembly.
(4) Any foreign or alien taxpayer who makes, under
protest, a tax payment required by Section 409 shall, at the
time of payment, file a retaliatory tax return sufficient to
disclose the full amount of retaliatory taxes which would be
due and owing for the tax period in question if the protest
were upheld. Notwithstanding the provisions of the State
Officers and Employees Money Disposition Act "An Act in
relation to the payment and disposition of moneys received by
officers and employees of the State of Illinois by virtue of
their office or employment", approved June 9, 1911, as now or
hereafter amended, or any other laws of this State, the
protested payment, to the extent of the retaliatory tax so
disclosed, shall be deposited directly in the General Revenue
Fund; and the balance of the payment, if any, shall be
deposited in a protest account pursuant to the provisions of
the aforesaid Act, as now or hereafter amended.
(5) The failure of a company to make the annual payment
or to make the quarterly payments, if required, of equal to
at least one-fourth of either (i) the total tax paid during
the preceding calendar year or (ii) 80% of the actual tax for
the current calendar year, whichever is greater, shall
subject it to the penalty provisions set forth in Section 412
of this Code.
(Source: P.A. 82-767.)
(215 ILCS 5/531.13) (from Ch. 73, par. 1065.80-13)
Sec. 531.13. Tax offset. In the event the aggregate
Class A, B and C assessments for all member insurers do not
exceed $3,000,000 in any one calendar year, no member insurer
shall receive a tax offset. However, for in any one calendar
year before 1998 in which the total of such assessments
exceeds $3,000,000, the amount in excess of $3,000,000 shall
be subject to a tax offset to the extent of 20% of the amount
of such assessment for each of the 5 five calendar years
following the year in which such assessment was paid and each
member insurer may offset the proportionate amount of such
excess paid by the insurer against its liabilities for the
tax imposed by subsections (a) and (b) of Section 201 of the
"Illinois Income Tax Act. The provisions of this Section
shall expire and be given no effect for any tax period
commencing on and after January 1, 2003", for the tax imposed
by Section 409 of the "Illinois Insurance Code", and for the
fees imposed by Section 408.1 of the "Illinois Insurance
Code".
(Source: P.A. 84-221.)
Section 10. The Illinois Insurance Code is amended by
changing Section 408.1 as follows:
(215 ILCS 5/408.1) (from Ch. 73, par. 1020.1)
Sec. 408.1. Fee for valuation of life insurance
policies. Upon the effective date of this amendatory Act of
1998, all actions to collect life insurance policy valuation
fees or to transfer such fees to the General Revenue Fund
from any protest account established under the State Officers
and Employees Money Disposition Act shall cease and any such
protested life insurance policy valuation fee payments shall
be returned to the taxpayer who initiated the protest.) The
Director shall charge and collect an annual fee from every
domestic company for the valuation of life insurance policies
except group contracts awarded under the State Employee Group
Insurance Act of 1971, as now or hereafter amended. The fee
shall be 3¢ for each $1,000 of direct life insurance policies
in force as of December 31, each year, but not less than
$100. Each domestic company shall pay the fee under this
Section not later than 60 days after the date on which such
company is required to file its annual statement for the
preceding calendar year, under this Code. Failure of a
company to make payment as required shall subject it to the
penalty provisions set forth in Section 412 of this Act.
(Source: P.A. 81-603.)
Section 15. The Dental Service Plan Act is amended by
changing Section 43 as follows:
(215 ILCS 110/43) (from Ch. 32, par. 690.43)
Sec. 43. Every dental service plan corporation organized
hereunder shall be operated and conducted not-for-profit and
shall be deemed a charitable and benevolent corporation, and
all of its funds and property shall be exempt from every
State, county, district, municipal and school tax or
assessment, and all other taxes and license fees, from the
payment of which charitable and benevolent corporations or
institutions are now or may hereafter be exempt. This
exemption shall not prevail against fees and charges imposed
by Sections 408, and 408.2, 409, 444, and 444.1 of the
Illinois Insurance Code. The laws of this state applicable to
the merger, dissolution and liquidation of domestic
not-for-profit corporations and in respect to the rights,
classification and meetings of members, the selection,
change, duties and powers of corporate officers, and the
filing of annual reports by domestic not-for-profit
corporations shall be applicable to corporations organized
under this act to the extent the same are not inconsistent
with the provisions of this act. Wherever in any such laws
reference is made to "Directors" of such not-for-profit
corporations, such statutory provisions shall be deemed to
apply to the trustees of corporations organized under this
act, and wherever the office of the Secretary of State is
mentioned in such an act, such provisions shall be deemed to
refer to and designate the Director of Insurance when applied
to corporations organized hereunder.
(Source: P.A. 84-989.)
Section 20. The Farm Mutual Insurance Company Act of
1986 is amended by changing Section 15 as follows:
(215 ILCS 120/15) (from Ch. 73, par. 1265)
Sec. 15. Application of law. Companies subject to this
Act shall be subject to the provisions of Article X (Merger)
and Article XXV of the Illinois Insurance Code but shall not
be subject to any other provisions of the Illinois Insurance
Code unless specifically enumerated therein.
(Source: P.A. 84-1431.)
Section 25. The Health Maintenance Organization Act is
amended by changing Section 5-3 as follows:
(215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
(Text of Section before amendment by P.A. 90-372)
Sec. 5-3. Insurance Code provisions.
(a) Health Maintenance Organizations shall be subject to
the provisions of Sections 133, 134, 137, 140, 141.1, 141.2,
141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
154.6, 154.7, 154.8, 155.04, 355.2, 356m, 356v, 356t, 367i,
401, 401.1, 402, 403, 403A, 408, 408.2, 409, and 412, 444,
and 444.1, paragraph (c) of subsection (2) of Section 367,
and Articles VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and
XXVI of the Illinois Insurance Code.
(b) For purposes of the Illinois Insurance Code, except
for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
Health Maintenance Organizations in the following categories
are deemed to be "domestic companies":
(1) a corporation authorized under the Medical
Service Plan Act, the Dental Service Plan Act, the
Pharmaceutical Service Plan Act, or the Voluntary Health
Services Plans Plan Act, or the Nonprofit Health Care
Service Plan Act;
(2) a corporation organized under the laws of this
State; or
(3) a corporation organized under the laws of
another state, 30% or more of the enrollees of which are
residents of this State, except a corporation subject to
substantially the same requirements in its state of
organization as is a "domestic company" under Article
VIII 1/2 of the Illinois Insurance Code.
(c) In considering the merger, consolidation, or other
acquisition of control of a Health Maintenance Organization
pursuant to Article VIII 1/2 of the Illinois Insurance Code,
(1) the Director shall give primary consideration
to the continuation of benefits to enrollees and the
financial conditions of the acquired Health Maintenance
Organization after the merger, consolidation, or other
acquisition of control takes effect;
(2)(i) the criteria specified in subsection (1)(b)
of Section 131.8 of the Illinois Insurance Code shall not
apply and (ii) the Director, in making his determination
with respect to the merger, consolidation, or other
acquisition of control, need not take into account the
effect on competition of the merger, consolidation, or
other acquisition of control;
(3) the Director shall have the power to require
the following information:
(A) certification by an independent actuary of
the adequacy of the reserves of the Health
Maintenance Organization sought to be acquired;
(B) pro forma financial statements reflecting
the combined balance sheets of the acquiring company
and the Health Maintenance Organization sought to be
acquired as of the end of the preceding year and as
of a date 90 days prior to the acquisition, as well
as pro forma financial statements reflecting
projected combined operation for a period of 2
years;
(C) a pro forma business plan detailing an
acquiring party's plans with respect to the
operation of the Health Maintenance Organization
sought to be acquired for a period of not less than
3 years; and
(D) such other information as the Director
shall require.
(d) The provisions of Article VIII 1/2 of the Illinois
Insurance Code and this Section 5-3 shall apply to the sale
by any health maintenance organization of greater than 10% of
its enrollee population (including without limitation the
health maintenance organization's right, title, and interest
in and to its health care certificates).
(e) In considering any management contract or service
agreement subject to Section 141.1 of the Illinois Insurance
Code, the Director (i) shall, in addition to the criteria
specified in Section 141.2 of the Illinois Insurance Code,
take into account the effect of the management contract or
service agreement on the continuation of benefits to
enrollees and the financial condition of the health
maintenance organization to be managed or serviced, and (ii)
need not take into account the effect of the management
contract or service agreement on competition.
(f) Except for small employer groups as defined in the
Small Employer Rating, Renewability and Portability Health
Insurance Act and except for medicare supplement policies as
defined in Section 363 of the Illinois Insurance Code, a
Health Maintenance Organization may by contract agree with a
group or other enrollment unit to effect refunds or charge
additional premiums under the following terms and conditions:
(i) the amount of, and other terms and conditions
with respect to, the refund or additional premium are set
forth in the group or enrollment unit contract agreed in
advance of the period for which a refund is to be paid or
additional premium is to be charged (which period shall
not be less than one year); and
(ii) the amount of the refund or additional premium
shall not exceed 20% of the Health Maintenance
Organization's profitable or unprofitable experience with
respect to the group or other enrollment unit for the
period (and, for purposes of a refund or additional
premium, the profitable or unprofitable experience shall
be calculated taking into account a pro rata share of the
Health Maintenance Organization's administrative and
marketing expenses, but shall not include any refund to
be made or additional premium to be paid pursuant to this
subsection (f)). The Health Maintenance Organization and
the group or enrollment unit may agree that the
profitable or unprofitable experience may be calculated
taking into account the refund period and the immediately
preceding 2 plan years.
The Health Maintenance Organization shall include a
statement in the evidence of coverage issued to each enrollee
describing the possibility of a refund or additional premium,
and upon request of any group or enrollment unit, provide to
the group or enrollment unit a description of the method used
to calculate (1) the Health Maintenance Organization's
profitable experience with respect to the group or enrollment
unit and the resulting refund to the group or enrollment unit
or (2) the Health Maintenance Organization's unprofitable
experience with respect to the group or enrollment unit and
the resulting additional premium to be paid by the group or
enrollment unit.
In no event shall the Illinois Health Maintenance
Organization Guaranty Association be liable to pay any
contractual obligation of an insolvent organization to pay
any refund authorized under this Section.
(Source: P.A. 89-90, eff. 6-30-95; 90-25, eff. 1-1-98;
90-177, eff. 7-23-97; revised 11-21-97.)
(Text of Section after amendment by P.A. 90-372)
Sec. 5-3. Insurance Code provisions.
(a) Health Maintenance Organizations shall be subject to
the provisions of Sections 133, 134, 137, 140, 141.1, 141.2,
141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
154.6, 154.7, 154.8, 155.04, 355.2, 356m, 356v, 356t, 367i,
401, 401.1, 402, 403, 403A, 408, 408.2, 409, and 412, 444,
and 444.1, paragraph (c) of subsection (2) of Section 367,
and Articles VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and
XXVI of the Illinois Insurance Code.
(b) For purposes of the Illinois Insurance Code, except
for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
Health Maintenance Organizations in the following categories
are deemed to be "domestic companies":
(1) a corporation authorized under the Medical
Service Plan Act, the Dental Service Plan Act or, the
Voluntary Health Services Plans Plan Act, or the
Nonprofit Health Care Service Plan Act;
(2) a corporation organized under the laws of this
State; or
(3) a corporation organized under the laws of
another state, 30% or more of the enrollees of which are
residents of this State, except a corporation subject to
substantially the same requirements in its state of
organization as is a "domestic company" under Article
VIII 1/2 of the Illinois Insurance Code.
(c) In considering the merger, consolidation, or other
acquisition of control of a Health Maintenance Organization
pursuant to Article VIII 1/2 of the Illinois Insurance Code,
(1) the Director shall give primary consideration
to the continuation of benefits to enrollees and the
financial conditions of the acquired Health Maintenance
Organization after the merger, consolidation, or other
acquisition of control takes effect;
(2)(i) the criteria specified in subsection (1)(b)
of Section 131.8 of the Illinois Insurance Code shall not
apply and (ii) the Director, in making his determination
with respect to the merger, consolidation, or other
acquisition of control, need not take into account the
effect on competition of the merger, consolidation, or
other acquisition of control;
(3) the Director shall have the power to require
the following information:
(A) certification by an independent actuary of
the adequacy of the reserves of the Health
Maintenance Organization sought to be acquired;
(B) pro forma financial statements reflecting
the combined balance sheets of the acquiring company
and the Health Maintenance Organization sought to be
acquired as of the end of the preceding year and as
of a date 90 days prior to the acquisition, as well
as pro forma financial statements reflecting
projected combined operation for a period of 2
years;
(C) a pro forma business plan detailing an
acquiring party's plans with respect to the
operation of the Health Maintenance Organization
sought to be acquired for a period of not less than
3 years; and
(D) such other information as the Director
shall require.
(d) The provisions of Article VIII 1/2 of the Illinois
Insurance Code and this Section 5-3 shall apply to the sale
by any health maintenance organization of greater than 10% of
its enrollee population (including without limitation the
health maintenance organization's right, title, and interest
in and to its health care certificates).
(e) In considering any management contract or service
agreement subject to Section 141.1 of the Illinois Insurance
Code, the Director (i) shall, in addition to the criteria
specified in Section 141.2 of the Illinois Insurance Code,
take into account the effect of the management contract or
service agreement on the continuation of benefits to
enrollees and the financial condition of the health
maintenance organization to be managed or serviced, and (ii)
need not take into account the effect of the management
contract or service agreement on competition.
(f) Except for small employer groups as defined in the
Small Employer Rating, Renewability and Portability Health
Insurance Act and except for medicare supplement policies as
defined in Section 363 of the Illinois Insurance Code, a
Health Maintenance Organization may by contract agree with a
group or other enrollment unit to effect refunds or charge
additional premiums under the following terms and conditions:
(i) the amount of, and other terms and conditions
with respect to, the refund or additional premium are set
forth in the group or enrollment unit contract agreed in
advance of the period for which a refund is to be paid or
additional premium is to be charged (which period shall
not be less than one year); and
(ii) the amount of the refund or additional premium
shall not exceed 20% of the Health Maintenance
Organization's profitable or unprofitable experience with
respect to the group or other enrollment unit for the
period (and, for purposes of a refund or additional
premium, the profitable or unprofitable experience shall
be calculated taking into account a pro rata share of the
Health Maintenance Organization's administrative and
marketing expenses, but shall not include any refund to
be made or additional premium to be paid pursuant to this
subsection (f)). The Health Maintenance Organization and
the group or enrollment unit may agree that the
profitable or unprofitable experience may be calculated
taking into account the refund period and the immediately
preceding 2 plan years.
The Health Maintenance Organization shall include a
statement in the evidence of coverage issued to each enrollee
describing the possibility of a refund or additional premium,
and upon request of any group or enrollment unit, provide to
the group or enrollment unit a description of the method used
to calculate (1) the Health Maintenance Organization's
profitable experience with respect to the group or enrollment
unit and the resulting refund to the group or enrollment unit
or (2) the Health Maintenance Organization's unprofitable
experience with respect to the group or enrollment unit and
the resulting additional premium to be paid by the group or
enrollment unit.
In no event shall the Illinois Health Maintenance
Organization Guaranty Association be liable to pay any
contractual obligation of an insolvent organization to pay
any refund authorized under this Section.
(Source: P.A. 89-90, eff. 6-30-95; 90-25, eff. 1-1-98;
90-177, eff. 7-23-97; 90-372, eff. 7-1-98; revised 11-21-97.)
Section 30. The Limited Health Service Organization Act
is amended by changing Section 4003 as follows:
(215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
Sec. 4003. Illinois Insurance Code provisions. Limited
health service organizations shall be subject to the
provisions of Sections 133, 134, 137, 140, 141.1, 141.2,
141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154, 154.5,
154.6, 154.7, 154.8, 155.04, 355.2, 356v, 356t, 401, 401.1,
402, 403, 403A, 408, 408.2, 409, and 412, 444, and 444.1 and
Articles VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, and
XXVI of the Illinois Insurance Code. For purposes of the
Illinois Insurance Code, except for Sections 444 and 444.1
and Articles XIII and XIII 1/2, limited health service
organizations in the following categories are deemed to be
domestic companies:
(1) a corporation under the laws of this State; or
(2) a corporation organized under the laws of
another state, 30% of more of the enrollees of which are
residents of this State, except a corporation subject to
substantially the same requirements in its state of
organization as is a domestic company under Article VIII
1/2 of the Illinois Insurance Code.
(Source: P.A. 90-25, eff. 1-1-98; revised 10-14-97.)
Section 95. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i)
the changes made by this Act or (ii) provisions derived from
any other Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.