TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER ee: FEES, CHARGES AND TAXES
PART 2505 FEES AND CHARGES
SECTION 2505.70 FINANCIAL REGULATION FEE FOR DOMESTIC COMPANIES


 

Section 2505.70  Financial Regulation Fee for Domestic Companies

 

An annual financial regulation fee shall be charged and collected from every domestic company for examination and analysis of its financial condition.  The fee shall be the greater of  the amount assessed by either subsection (a) of this Section based on the combination of nationwide direct premium income and nationwide reinsurance assumed income of the domestic company, or by subsection (b) of this Section based on admitted assets.

 

a)         If the nationwide direct premium income of the domestic company is:

 

1)         Less than $500,000 and there is no reinsurance assumed premium, the fee is $150;

 

2)         $500,000 or more, but less than $5,000,000 and there is no reinsurance assumed premium; or if the nationwide direct premium is less than $5,000,000 and the reinsurance assumed premium is less than $10,000,000, the fee is $750;

 

3)         Less than $5,000,000 and the reinsurance assumed premium is $10,000,000 or more, the fee is $3,750;

 

4)         $5,000,000 or more, but less than $10,000,000, the fee is $7,500;

 

5)         $10,000,000 or more, but less than $25,000,000, the fee is $18,000;

 

6)         $25,000,000 or more, but less than $50,000,000, the fee is $22,500;

 

7)         $50,000,000 or more, but less than $100,000,000, the fee is $30,000; or

 

8)         $100,000,000 or more, the fee is $37,500.

 

b)         If the admitted assets, as defined by Section 3.1 of the Code [215 ILCS 5/3.1], of the domestic company are:

 

1)         Less than $1,000,000, the fee is $150;

 

2)         $1,000,000 or more, but less than $5,000,000, the fee is $750;

 

3)         $5,000,000 or more, but less than $25,000,000, the fee is $3,750;

 

4)         $25,000,000 or more, but less than $50,000,000, the fee is $7,500;

 

5)         $50,000,000 or more, but less than $100,000,000, the fee is $18,000;

 

6)         $100,000,000 or more, but less than $500,000,000, the fee is $22,500;

 

7)         $500,000,000 or more, but less than $1,000,000,000, the fee is $30,000; or

 

8)         $1,000,000,000 or more, the fee is $37,500.

 

c)         The sum of financial regulation fees in any single calendar year charged to domestic companies of the same affiliated group shall not exceed $250,000, in the aggregate, as calculated pursuant to subsection (c)(2) of this Section.

 

1)         On or before April 1st of every calendar year every affiliated group must notify the Department in writing to the attention of the Tax and Fiscal Section that the affiliated group intends to utilize this Section and must designate one domestic member to be billed by the Director for the entire domestic affiliated group's financial regulation fee.

 

2)         The sum of the financial regulation fees, in the aggregate, shall be calculated by totaling the amount of financial regulation fees paid by the domestic companies of the same affiliated group.  No financial regulation fee paid by a foreign or alien company of the same affiliated group shall be included in the aggregate amount of the affiliated group's domestic companies' aggregate sum.  Illustration A of this Part is an example of this calculation.

 

d)         The financial regulation fee is due upon receipt of the Department's invoice and must be paid no later than June 30th of each calendar year.

 

e)         The domestic company must include the Department's invoice, if applicable, and make payment pursuant to 50 Ill. Adm. Code 2500.70(a).

 

(Source:  Amended at 29 Ill. Reg. 9477, effective July 1, 2005)