093_HB3459

 
                                     LRB093 10226 JLS 10480 b

 1        AN ACT concerning insurance.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Insurance  Code  is  amended  by
 5    changing Section 408 as follows:

 6        (215 ILCS 5/408) (from Ch. 73, par. 1020)
 7        Sec. 408.  Fees and charges.
 8        (1)  The  Director shall charge, collect, and give proper
 9    acquittances for  the  payment  of  the  following  fees  and
10    charges:
11             (a)  For  the  filing of all documents submitted for
12        the incorporation or organization or certification  of  a
13        domestic company, except for a fraternal benefit society,
14        $1,000.
15             (b)  For  filing  all  documents  submitted  for the
16        incorporation or  organization  of  a  fraternal  benefit
17        society, $250.
18             (c)  For    filing   amendments   to   articles   of
19        incorporation   and   amendments   to   declaration    of
20        organization,  except  for a fraternal benefit society, a
21        mutual benefit association, a burial society  or  a  farm
22        mutual, $100.
23             (d)  For    filing   amendments   to   articles   of
24        incorporation of a fraternal benefit  society,  a  mutual
25        benefit association or a burial society, $50.
26             (e)  For    filing   amendments   to   articles   of
27        incorporation of a farm mutual, $25.
28             (f)  For filing bylaws or amendments thereto, $25.
29             (g)  For   filing    agreement    of    merger    or
30        consolidation:
31                  (i)  for  a  domestic  company,  except  for  a
 
                            -2-      LRB093 10226 JLS 10480 b
 1             fraternal   benefit   society,   a   mutual  benefit
 2             association, a burial society,  or  a  farm  mutual,
 3             $1,000.
 4                  (ii)  for  a  foreign  or alien company, except
 5             for a fraternal benefit society, $300.
 6                  (iii)  for  a  fraternal  benefit  society,   a
 7             mutual  benefit  association, a burial society, or a
 8             farm mutual, $100.
 9             (h)  For  filing  agreements  of  reinsurance  by  a
10        domestic company, $100.
11             (i)  For filing all documents submitted by a foreign
12        or alien company to be admitted to transact  business  or
13        accredited  as  a  reinsurer  in this State, except for a
14        fraternal benefit society, $2,500.
15             (j)  For filing all documents submitted by a foreign
16        or alien fraternal benefit  society  to  be  admitted  to
17        transact business in this State, $250.
18             (k)  For  filing  declaration  of  withdrawal  of  a
19        foreign or alien company, $25.
20             (l)  For filing annual statement, except a fraternal
21        benefit  society,  a mutual benefit association, a burial
22        society, or a farm mutual, $100.
23             (m)  For filing  annual  statement  by  a  fraternal
24        benefit society, $50.
25             (n)  For filing annual statement by a farm mutual, a
26        mutual benefit association, or a burial society, $25.
27             (o)  For  issuing  a  certificate  of  authority  or
28        renewal  thereof  except  to a fraternal benefit society,
29        $100.
30             (p)  For  issuing  a  certificate  of  authority  or
31        renewal thereof to a fraternal benefit society, $50.
32             (q)  For   issuing   an   amended   certificate   of
33        authority, $25.
34             (r)  For  each  certified  copy  of  certificate  of
 
                            -3-      LRB093 10226 JLS 10480 b
 1        authority, $10.
 2             (s)  For each certificate of deposit, or  valuation,
 3        or compliance or surety certificate, $10.
 4             (t)  For copies of papers or records per page, $1.
 5             (u)  For  each  certification to copies of papers or
 6        records, $10.
 7             (v)  For   multiple   copies   of    documents    or
 8        certificates listed in subparagraphs (r), (s), and (u) of
 9        paragraph  (1) of this Section, $10 for the first copy of
10        a certificate of any type and $5 for each additional copy
11        of the same  certificate  requested  at  the  same  time,
12        unless,  pursuant  to  paragraph (2) of this Section, the
13        Director finds these additional fees excessive.
14             (w)  For issuing a permit to sell shares or increase
15        paid-up capital:
16                  (i)  in  connection   with   a   public   stock
17             offering, $150;
18                  (ii)  in any other case, $50.
19             (x)  For  issuing  any other certificate required or
20        permissible under the law, $25.
21             (y)  For filing a plan of exchange of the stock of a
22        domestic   stock   insurance   company,   a    plan    of
23        demutualization  of  a domestic mutual company, or a plan
24        of reorganization under Article XII, $1,000.
25             (z)  For filing a  statement  of  acquisition  of  a
26        domestic  company  as  defined  in  Section 131.4 of this
27        Code, $1,000.
28             (aa)  For  filing  an  agreement  to  purchase   the
29        business  of  an organization authorized under the Dental
30        Service Plan Act or the Voluntary Health  Services  Plans
31        Act  or of a health maintenance organization or a limited
32        health service organization, $1,000.
33             (bb)  For filing a statement  of  acquisition  of  a
34        foreign  or alien insurance company as defined in Section
 
                            -4-      LRB093 10226 JLS 10480 b
 1        131.12a of this Code, $500.
 2             (cc)  For  filing  a   registration   statement   as
 3        required  in Sections 131.13 and 131.14, the notification
 4        as required by Sections 131.16, 131.20a, or 141.4, or  an
 5        agreement  or  transaction required by Sections 124.2(2),
 6        141, 141a, or 141.1, $100.
 7             (dd)  For filing an application for licensing of:
 8                  (i)  a religious  or  charitable  risk  pooling
 9             trust or a workers' compensation pool, $500;
10                  (ii)  a  workers' compensation service company,
11             $250;
12                  (iii)  a self-insured automobile  fleet,  $100;
13             or
14                  (iv)  a  renewal of or amendment of any license
15             issued pursuant to (i), (ii), or (iii) above, $50.
16             (ee)  For filing articles  of  incorporation  for  a
17        syndicate  to engage in the business of insurance through
18        the Illinois Insurance Exchange, $1,000.
19             (ff)  For filing amended articles  of  incorporation
20        for  a  syndicate  engaged  in  the business of insurance
21        through the Illinois Insurance Exchange, $50.
22             (gg)  For filing articles  of  incorporation  for  a
23        limited  syndicate  to  join  with  other  subscribers or
24        limited syndicates to do business  through  the  Illinois
25        Insurance Exchange, $500.
26             (hh)  For  filing  amended articles of incorporation
27        for a  limited  syndicate  to  do  business  through  the
28        Illinois Insurance Exchange, $50.
29             (ii)  For  a  permit  to  solicit subscriptions to a
30        syndicate or limited syndicate, $50.
31             (jj)  For the filing of each  form  as  required  in
32        Section  143  of  this  Code,  $25 per form.  The fee for
33        advisory and rating organizations shall be $100 per form.
34                  (i)  For the purposes of the form  filing  fee,
 
                            -5-      LRB093 10226 JLS 10480 b
 1             filings made on insert page basis will be considered
 2             one  form  at  the  time of its original submission.
 3             Changes made to a form subsequent  to  its  approval
 4             shall be considered a new filing.
 5                  (ii)  Only one fee shall be charged for a form,
 6             regardless  of the number of other forms or policies
 7             with which it will be used.
 8                  (iii)  Fees charged for a policy  filed  as  it
 9             will  be  issued  regardless  of the number of forms
10             comprising that policy  shall  not  exceed  $500  or
11             $1000 for advisory or rating organizations.
12                  (iv)  The  Director  may  by  rule exempt forms
13             from such fees.
14             (kk)  For filing an application for licensing  of  a
15        reinsurance intermediary, $250.
16             (ll)  For  filing  an  application  for renewal of a
17        license of a reinsurance intermediary, $100.
18        (2)  When printed copies or numerous copies of  the  same
19    paper or records are furnished or certified, the Director may
20    reduce  such  fees for copies if he finds them excessive.  He
21    may, when he considers it in  the  public  interest,  furnish
22    without  charge  to  state  insurance departments and persons
23    other than companies, copies or certified copies  of  reports
24    of examinations and of other papers and records.
25        (3)  The expenses incurred in any performance examination
26    authorized  by  law  shall  be  paid by the company or person
27    being examined. The charge shall be reasonably related to the
28    cost  of  the  examination  including  but  not  limited   to
29    compensation  of examiners, electronic data processing costs,
30    supervision and preparation  of  an  examination  report  and
31    lodging  and travel expenses. All lodging and travel expenses
32    shall be in accord with the applicable travel regulations  as
33    published  by  the  Department of Central Management Services
34    and approved by the Governor's Travel Control  Board,  except
 
                            -6-      LRB093 10226 JLS 10480 b
 1    that  out-of-state  lodging  and  travel  expenses related to
 2    examinations  authorized  under  Section  132  shall  be   in
 3    accordance  with  travel  rates  prescribed  under  paragraph
 4    301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
 5    for  reimbursement  of  subsistence  expenses incurred during
 6    official travel.  All lodging  and  travel  expenses  may  be
 7    reimbursed  directly upon authorization of the Director. With
 8    the exception of the direct reimbursements authorized by  the
 9    Director,  all  performance  examination charges collected by
10    the Department shall  be  paid  to  the  Insurance  Producers
11    Administration  Fund, however, the electronic data processing
12    costs incurred by the Department in the  performance  of  any
13    examination  shall  be  billed  directly to the company being
14    examined for payment to the  Statistical  Services  Revolving
15    Fund.
16        (4)  At  the  time  of  any  service  of  process  on the
17    Director as attorney for such  service,  the  Director  shall
18    charge  and collect the sum of $10.00, which may be recovered
19    as taxable costs by the party to the suit or  action  causing
20    such  service  to  be  made  if  he  prevails in such suit or
21    action.
22        (5) (a)  The  costs  incurred  by   the   Department   of
23    Insurance  in  conducting any hearing authorized by law shall
24    be assessed against  the  parties  to  the  hearing  in  such
25    proportion  as  the  Director of Insurance may determine upon
26    consideration of all relevant circumstances  including:   (1)
27    the  nature  of  the  hearing;  (2)  whether  the hearing was
28    instigated by, or for the benefit of a  particular  party  or
29    parties;  (3)  whether  there  is  a  successful party on the
30    merits of the proceeding; and  (4)  the  relative  levels  of
31    participation by the parties.
32        (b)  For  purposes  of this subsection (5) costs incurred
33    shall mean the hearing officer fees, court reporter fees, and
34    travel expenses  of  Department  of  Insurance  officers  and
 
                            -7-      LRB093 10226 JLS 10480 b
 1    employees;  provided  however,  that costs incurred shall not
 2    include hearing officer fees or court  reporter  fees  unless
 3    the  Department  has  retained  the  services  of independent
 4    contractors or outside experts to perform such functions.
 5        (c)  The Director shall  make  the  assessment  of  costs
 6    incurred  as  part of the final order or decision arising out
 7    of the proceeding; provided,  however,  that  such  order  or
 8    decision shall include findings and conclusions in support of
 9    the  assessment  of  costs.  This subsection (5) shall not be
10    construed as permitting the payment of travel expenses unless
11    calculated  in  accordance   with   the   applicable   travel
12    regulations of the Department of Central Management Services,
13    as  approved  by  the  Governor's  Travel Control Board.  The
14    Director as part of such order or decision shall require  all
15    assessments for hearing officer fees and court reporter fees,
16    if  any,  to be paid directly to the hearing officer or court
17    reporter  by  the  party(s)  assessed  for  such  costs.  The
18    assessments for travel expenses of  Department  officers  and
19    employees  shall be reimbursable to the Director of Insurance
20    for deposit to the fund out of which those expenses had  been
21    paid.
22        (d)  The provisions of this subsection (5) shall apply in
23    the  case  of  any  hearing  conducted  by  the  Director  of
24    Insurance not otherwise specifically provided for by law.
25        (6)  The  Director  shall  charge  and  collect an annual
26    financial regulation fee  from  every  domestic  company  for
27    examination  and  analysis  of its financial condition and to
28    fund the  internal  costs  and  expenses  of  the  Interstate
29    Insurance  Receivership Commission as may be allocated to the
30    State of Illinois and companies doing an  insurance  business
31    in  this  State  pursuant  to  Article  X  of  the Interstate
32    Insurance Receivership Compact.  The fee shall be the greater
33    fixed amount based upon the combination of nationwide  direct
34    premium  income  and  nationwide  reinsurance assumed premium
 
                            -8-      LRB093 10226 JLS 10480 b
 1    income  or  upon  admitted  assets  calculated   under   this
 2    subsection as follows:
 3             (a)  Combination of nationwide direct premium income
 4        and nationwide reinsurance assumed premium.
 5                  (i)  $100, if the premium is less than $500,000
 6             and there is no reinsurance assumed premium;
 7                  (ii)  $500, if the premium is $500,000 or more,
 8             but less than $5,000,000 and there is no reinsurance
 9             assumed  premium;  or  if  the  premium is less than
10             $5,000,000 and the reinsurance  assumed  premium  is
11             less than $10,000,000;
12                  (iii)  $2,500,  if  the  premium  is  less than
13             $5,000,000 and the reinsurance  assumed  premium  is
14             $10,000,000 or more;
15                  (iv)  $5,000,  if  the premium is $5,000,000 or
16             more, but less than $10,000,000;
17                  (v)  $12,000, if the premium is $10,000,000  or
18             more, but less than $25,000,000;
19                  (vi)  $15,000, if the premium is $25,000,000 or
20             more, but less than $50,000,000;
21                  (vii)  $20,000,  if  the premium is $50,000,000
22             or more, but less than $100,000,000;
23                  (viii)  $25,000, if the premium is $100,000,000
24             or more.
25             (b)  Admitted assets.
26                  (i)  $100, if admitted  assets  are  less  than
27             $1,000,000;
28                  (ii)  $500,  if  admitted assets are $1,000,000
29             or more, but less than $5,000,000;
30                  (iii)  2,500, if admitted assets are $5,000,000
31             or more, but less than $25,000,000;
32                  (iv)  $5,000,   if    admitted    assets    are
33             $25,000,000 or more, but less than $50,000,000;
34                  (v)  $12,000,    if    admitted    assets   are
 
                            -9-      LRB093 10226 JLS 10480 b
 1             $50,000,000 or more, but less than $100,000,000;
 2                  (vi)  $15,000,   if   admitted    assets    are
 3             $100,000,000 or more, but less than $500,000,000;
 4                  (vii)  $20,000,    if   admitted   assets   are
 5             $500,000,000 or more, but less than $1,000,000,000;
 6                  (viii)  $25,000,   if   admitted   assets   are
 7             $1,000,000,000 or more.
 8             (c)  The sum of financial regulation fees charged to
 9        the domestic companies of the same affiliated group shall
10        not exceed $100,000 in the aggregate in any  single  year
11        and shall be billed by the Director to the member company
12        designated by the group.
13        (7)  The  Director  shall  charge  and  collect an annual
14    financial regulation fee from every foreign or alien company,
15    except fraternal benefit societies, for the  examination  and
16    analysis  of its financial condition and to fund the internal
17    costs and expenses of the Interstate  Insurance  Receivership
18    Commission  as  may be allocated to the State of Illinois and
19    companies doing an insurance business in this State  pursuant
20    to   Article  X  of  the  Interstate  Insurance  Receivership
21    Compact.  The fee shall be a fixed amount based upon Illinois
22    direct premium  income  and  nationwide  reinsurance  assumed
23    premium income in accordance with the following schedule:
24             (a)  $100,  if the premium is less than $500,000 and
25        there is no reinsurance assumed premium;
26             (b)  $500, if the premium is $500,000 or  more,  but
27        less  than $5,000,000 and there is no reinsurance assumed
28        premium; or if the premium is less  than  $5,000,000  and
29        the reinsurance assumed premium is less than $10,000,000;
30             (c)  $2,500,  if the premium is less than $5,000,000
31        and the reinsurance assumed  premium  is  $10,000,000  or
32        more;
33             (d)  $5,000,  if  the premium is $5,000,000 or more,
34        but less than $10,000,000;
 
                            -10-     LRB093 10226 JLS 10480 b
 1             (e)  $12,000, if the premium is $10,000,000 or more,
 2        but less than $25,000,000;
 3             (f)  $15,000, if the premium is $25,000,000 or more,
 4        but less than $50,000,000;
 5             (g)  $20,000, if the premium is $50,000,000 or more,
 6        but less than $100,000,000;
 7             (h)  $25,000, if  the  premium  is  $100,000,000  or
 8        more.
 9        The   sum   of   financial  regulation  fees  under  this
10    subsection (7) charged to  the  foreign  or  alien  companies
11    within the same affiliated group shall not exceed $100,000 in
12    the  aggregate  in any single year and shall be billed by the
13    Director to the member company designated by the group.
14        (8)  Beginning January 1, 1992, the financial  regulation
15    fees  imposed  under  subsections (6) and (7) of this Section
16    shall be paid by each company or  domestic  affiliated  group
17    annually.   After January 1, 1994, the fee shall be billed by
18    Department invoice based upon the company's premium income or
19    admitted assets as shown in  its  annual  statement  for  the
20    preceding calendar year.  The invoice is due upon receipt and
21    must  be  paid  no  later than June 30 of each calendar year.
22    All financial regulation fees  collected  by  the  Department
23    shall  be  paid  to  the Insurance Financial Regulation Fund.
24    The Department may not collect financial  examiner  per  diem
25    charges  from companies subject to subsections (6) and (7) of
26    this Section undergoing financial examination after June  30,
27    1992.
28        (9)  In addition to the financial regulation fee required
29    by   this   Section,   a  company  undergoing  any  financial
30    examination authorized by law shall pay the  following  costs
31    and  expenses  incurred  by  the Department:  electronic data
32    processing  costs,  the  expenses  authorized  under  Section
33    131.21 and subsection (d) of Section 132.4 of this Code,  and
34    lodging and travel expenses.
 
                            -11-     LRB093 10226 JLS 10480 b
 1        Electronic   data   processing   costs  incurred  by  the
 2    Department in the performance of  any  examination  shall  be
 3    billed  directly  to  the  company undergoing examination for
 4    payment to the Statistical Services Revolving  Fund.   Except
 5    for  direct  reimbursements  authorized  by  the  Director or
 6    direct payments made under Section 131.21 or  subsection  (d)
 7    of  Section 132.4 of this Code, all financial regulation fees
 8    and  all  financial  examination  charges  collected  by  the
 9    Department  shall  be  paid  to   the   Insurance   Financial
10    Regulation Fund.
11        All  lodging  and  travel expenses shall be in accordance
12    with  applicable  travel   regulations   published   by   the
13    Department of Central Management Services and approved by the
14    Governor's  Travel  Control  Board,  except that out-of-state
15    lodging  and  travel   expenses   related   to   examinations
16    authorized  under  Sections  132.1  through 132.7 shall be in
17    accordance  with  travel  rates  prescribed  under  paragraph
18    301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
19    for reimbursement of  subsistence  expenses  incurred  during
20    official  travel.    All  lodging  and travel expenses may be
21    reimbursed directly upon the authorization of the Director.
22        In the case of an organization or person not  subject  to
23    the  financial  regulation  fee, the expenses incurred in any
24    financial examination authorized by law shall be paid by  the
25    organization  or  person being examined.  The charge shall be
26    reasonably related to the cost of the examination  including,
27    but not limited to, compensation of examiners and other costs
28    described in this subsection.
29        (10)  Any  company, person, or entity failing to make any
30    payment of $100 or more as required under this Section  shall
31    be  subject  to  the penalty and interest provisions provided
32    for in subsections (4) and (7) of Section 412.
33        (11)  Unless  otherwise  specified,  all  of   the   fees
34    collected under this Section shall be paid into the Insurance
 
                            -12-     LRB093 10226 JLS 10480 b
 1    Financial Regulation Fund.
 2        (12)  For purposes of this Section:
 3             (a)  "Domestic  company"  means a company as defined
 4        in Section 2  of  this  Code  which  is  incorporated  or
 5        organized  under  the laws of this State, and in addition
 6        includes a not-for-profit  corporation  authorized  under
 7        the  Dental  Service  Plan  Act  or  the Voluntary Health
 8        Services Plans Act, a  health  maintenance  organization,
 9        and a limited health service organization.
10             (b)  "Foreign company" means a company as defined in
11        Section 2 of this Code which is incorporated or organized
12        under  the  laws  of any state of the United States other
13        than  this  State  and  in  addition  includes  a  health
14        maintenance organization and  a  limited  health  service
15        organization which is incorporated or organized under the
16        laws  of  any  state of the United States other than this
17        State.
18             (c)  "Alien company" means a company as  defined  in
19        Section 2 of this Code which is incorporated or organized
20        under  the  laws  of  any  country  other than the United
21        States.
22             (d)  "Fraternal    benefit    society"    means    a
23        corporation,   society,   order,   lodge   or   voluntary
24        association as defined in Section 282.1 of this Code.
25             (e)  "Mutual benefit association" means  a  company,
26        association  or corporation authorized by the Director to
27        do business in this State under the provisions of Article
28        XVIII of this Code.
29             (f)  "Burial  society"   means   a   person,   firm,
30        corporation,   society   or  association  of  individuals
31        authorized by the Director to do business in  this  State
32        under the provisions of Article XIX of this Code.
33             (g)  "Farm  mutual"  means  a  district,  county and
34        township  mutual  insurance  company  authorized  by  the
 
                            -13-     LRB093 10226 JLS 10480 b
 1        Director  to  do  business  in  this  State   under   the
 2        provisions  of  the  Farm Mutual Insurance Company Act of
 3        1986.
 4    (Source: P.A. 90-177, eff.  7-23-97;  90-583,  eff.  5-29-98;
 5    91-357, eff. 7-29-99.)