Sen. William R. Haine

Filed: 3/2/2012

 

 


 

 


 
09700SB2877sam003LRB097 16448 JWD 67097 a

1
AMENDMENT TO SENATE BILL 2877

2    AMENDMENT NO. ______. Amend Senate Bill 2877 as follows:
 
3on page 1, by replacing line 8, with "131.21, 131.22, 131.23,
4131.24, 131.26, 132.27, and 356z.12 and by adding Sections";
5and
 
6on page 1, line 9, by replacing "and 131.20c" with "131.20c,
7131.29, and 131.30"; and
 
8on page 3, by replacing lines 7 and 8 with the following:
9"company action level as set forth in Article IIA of this Code
10or would cause the company to be in hazardous financial
11condition as set forth in Article XII 1/2 of this Code."; and
 
12on page 10, line 16, by replacing "131.12a 131.12" with
13"131.12"; and
 

 

 

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1on page 13, line 24, by replacing "(a) (Blank)." with "(a)";
2and
 
3on page 14, line 5, by replacing "(b) (Blank)." with "(b)"; and
 
4on page 14, line 18, after "fairness", by inserting "of the
5proposal"; and
 
6on page 16, line 3, by replacing "it shall" with "the person
7will"; and
 
8on page 16, line 4, by replacing "131.20c" with "131.14b"; and
 
9on page 16, line 6, by replacing "An" with "Beginning July 1,
102013, an"; and
 
11on page 16, line 11, by replacing "insurer" with "company"; and
 
12on page 17, line 20, by replacing "After the change of control"
13with "after the After change of control,"; and
 
14on page 18, line 1, by replacing "be to not substantially" with
15"be not substantially to"; and
 
16on page 18, line 2, by replacing "not" with "not"; and
 

 

 

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1on page 19, line 3, after "would", by inserting "not"; and
 
2on page 19, line 16, by replacing "30 60" with "60"; and
 
3on page 19, line 22, by replacing "securityholders" with
4"shareholders securityholders"; and
 
5on page 20, line 22, by replacing "insurers" with "companies";
6and
 
7on page 20, line 23, by replacing "hearing," with "hearing";
8and
 
9on page 22, line 2, by replacing "thereto" with "thereto"; and
 
10on page 22, line 21, by replacing "insurers" with "companies
11insurers"; and
 
12on page 23, line 8, by replacing "involved insurer" with
13"involved company insurer"; and
 
14on page 23, line 8, by replacing "an insurer" with "a company
15an insurer"; and
 
16on page 23, line 14, by replacing "an insurer" with "a company
17an insurer"; and
 

 

 

09700SB2877sam003- 4 -LRB097 16448 JWD 67097 a

1on page 24, line 1, by replacing "insurer's" with "company's
2insurer's"; and
 
3on page 24, lines 20 and 24, by replacing "insurers" each time
4it appears with "companies insurers"; and
 
5on page 25, line 4, by replacing "insurers" with "companies
6insurers"; and
 
7on page 25, line 10, by replacing "an insurer" with "a company
8an insurer"; and
 
9on page 25, line 11, by replacing "insurer" with "company
10insurer"; and
 
11on page 25, line 14, by replacing "insurer's" with "company's
12insurer's"; and
 
13on page 27, line 7, by replacing "insurer" with "company
14insurer"; and
 
15on page 27, lines 13 and 17, by replacing "insurers" each time
16it appears with "companies insurers"; and
 
17on page 27, line 19, by replacing "Insurer" each time it

 

 

09700SB2877sam003- 5 -LRB097 16448 JWD 67097 a

1appears with "Company Insurer"; and
 
2on page 28, line 1, by replacing "Insurer" each time it appears
3with "Company Insurer"; and
 
4on page 28, lines 7 and 10, by replacing "insurers" each time
5it appears with "companies insurers"; and
 
6on page 28, line 14, by replacing "insurer" with "company
7insurer"; and
 
8on page 28, line 15, by replacing "Insurer" with "Company
9Insurer"; and
 
10on page 28, lines 18 and 23, by replacing "insurers" each time
11it appears with "companies insurers"; and
 
12on page 29, lines 2 and 3, by replacing "insurers" each time it
13appears with "companies insurers"; and
 
14on page 29, line 5, by replacing "insurer's" with "company's
15insurer's"; and
 
16on page 29, line 22, by replacing "insurers" with "companies
17insurers"; and
 

 

 

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1on page 31, lines 5 and 10, by replacing "insurer" each time it
2appears with "company insurer"; and
 
3on page 32, line 17, by replacing "insurer" with "company
4insurer"; and
 
5on page 35, line 12, by replacing "affiliate" with "controlling
6affiliate"; and
 
7on page 36, lines 4 and 5, by deleting "is responsible for
8and"; and
 
9on page 38, line 3, by replacing "5" with "15 5"; and
 
10on page 38, line 18, by replacing "statement" with "statement,
11any summary of changes to a registration statement, or any
12Enterprise Risk Filing"; and
 
13on page 42, line 11, by replacing "insurer" with "company
14insurer"; and
 
15on page 46, lines 5 and 6, by replacing "an insurer" with "a
16company an insurer"; and
 
17on page 46, lines 7 and 9, by replacing "insurer" each time it
18appears with "company insurer"; and
 

 

 

09700SB2877sam003- 7 -LRB097 16448 JWD 67097 a

1on page 46, line 12, by replacing "reinsurance allocation" with
2"all reinsurance allocation"; and
 
3on page 46, line 14, by replacing "cost-sharing" with "all
4cost-sharing"; and
 
5on page 46, line 17, by replacing "insurer" with "company"; and
 
6on page 46, line 21, by replacing "insurer's" with "company's";
7and
 
8on page 46, line 25, by replacing "(v);" with "(v)."; and
 
9on page 47, lines 1 and 2, by replacing "insurer" each time it
10appears with "company"; and
 
11on page 47, line 3, by replacing "insurer's" with "company's";
12and
 
13on page 47, line 14, by replacing "insurer's" with "company's
14insurer's"; and
 
15on page 47, line 24, by replacing "an insurer" with "a company
16an insurer"; and
 

 

 

09700SB2877sam003- 8 -LRB097 16448 JWD 67097 a

1on page 48, line 3, by replacing "insurer" with "company
2insurer"; and
 
3on page 48, line 7, by replacing "insurer's" with "company's
4insurer's"; and
 
5on page 49, lines 1, 10, and 12, by replacing "insurer" each
6time it appears with "company insurer"; and
 
7on page 50, line 16, by replacing "insurers" with "companies
8insurers"; and
 
9on page 50, lines 17, 18, 20, and 24, by replacing "insurer"
10each time it appears with "company insurer"; and
 
11on page 51, lines 8, 9, and 11, by replacing "insurer" each
12time it appears with "company insurer"; and
 
13on page 54, line 9; by replacing "insurer" with "company"; and
 
14on page 54, line 13, by replacing "companies," with "companies
15in accordance with Section 131.21 of this Code,"; and
 
16on page 54, line 17, by replacing "agreements" with "agreements
17in accordance with Section 131.22 of this Code"; and
 

 

 

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1on page 55, line 5, by replacing "insurer" with "company"; and
 
2on page 60, lines 13 and 17, by replacing "an insurer" each
3time it appears with "a company"; and
 
4on page 60, line 20, by replacing "insurer" with "company"; and
 
5on page 62, immediately below line 10, by inserting the
6following:
 
7    "(215 ILCS 5/131.23)  (from Ch. 73, par. 743.23)
8    Sec. 131.23. Injunctions; prohibitions against voting
9securities; sequestration of voting securities. (1) Whenever
10it appears to the Director that any company or any director,
11officer, employee or agent thereof has committed or is about to
12commit a violation of this Article or of any rule, regulation,
13or order issued by the Director hereunder, the Director may
14apply to the Circuit Court for the county in which the
15principal office of the company is located or to the Circuit
16Court for Sangamon County for an order enjoining the company or
17the director, officer, employee or agent thereof from violating
18or continuing to violate this Article or any rule, regulation
19or order, and for any other equitable relief as the nature of
20the case and the interests of the company's policyholders,
21creditors or the public may require. In any proceeding, the
22validity of the rule, regulation or order alleged to have been

 

 

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1violated may be determined by the Court.
2    (2) No security which is the subject of any agreement or
3arrangement regarding acquisition, or which is acquired or to
4be acquired, in contravention of this Article or of any rule,
5regulation or order issued by the Director hereunder may be
6voted at any shareholder's securityholders' meeting, or may be
7counted for quorum purposes, and any action of shareholder's
8securityholders' requiring the affirmative vote of a
9percentage of securities may be taken as though such securities
10were not issued and outstanding; but no action taken at any
11such meeting may be invalidated by the voting of such
12securities, unless the action would materially affect control
13of the company or unless any court of this State has so
14ordered. If the Director has reason to believe that any
15security of the company has been or is about to be acquired in
16contravention of this Article or of any rule, regulation or
17order issued by the Director hereunder the company or the
18Director may apply to the Circuit Court for Sangamon County or
19to the Circuit Court for the county in which the company has
20its principal place of business (a) to enjoin the further
21pursuit or use of any offer, request, invitation, agreement or
22acquisition made in contravention of Sections 131.4 through
23131.12 or any rule, regulation, or order issued by the Director
24thereunder; (b) to enjoin the voting of any security so
25acquired; (c) to void any vote of such security already cast at
26any meeting of shareholders securityholders; and (d) for any

 

 

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1other equitable relief as the nature of the case and the
2interests of the company's policyholders, creditors, or the
3public may require.
4    (3) In any case where a person has acquired or is proposing
5to acquire any voting securities in violation of this Article
6or any rule, regulation or order issued by the Director
7hereunder, the Circuit Court for Sangamon County or the Circuit
8Court for the county in which the company has its principal
9place of business may, on such notice as the court deems
10appropriate, upon the application of the company or the
11Director seize or sequester any voting securities of the
12company owned directly or indirectly by such person, and issue
13any orders with respect thereto as may be appropriate to
14effectuate this Article. Notwithstanding any other provisions
15of law, for the purposes of this Article, the situs of the
16ownership of the securities of domestic companies is deemed to
17be in this State.
18    (4) If the Director has reason to believe that any
19policyholders' proxies have been or are about to be acquired in
20contravention of this Article or of any rule, regulations or
21order issued by the Director hereunder, the Director may apply
22to the Circuit Court for Sangamon County or to the Circuit
23Court for the county in which the company has its principal
24place of business (a) to enjoin further pursuit or use of any
25offer, request, invitation, agreement or acquisition made in
26contravention of Section 131.4 through 131.12 and (b) for any

 

 

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1other equitable relief as the nature of the case and the
2interests of the company's policyholders, creditors or the
3public may require.
4(Source: P.A. 84-805.)"; and
 
5on page 64, line 19, by replacing "insurer" with "company"; and
 
6on page 64, by replacing line 22 with the following:
7"company under an order of supervision in accordance with
8Article XII 1/2 of this Code."; and
 
9on page 64, immediately below line 23, by inserting the
10following:
 
11    "(215 ILCS 5/131.26)  (from Ch. 73, par. 743.26)
12    Sec. 131.26. Revocation, suspension, or non-renewal of
13company's license.
14    Whenever it appears to the Director that any person has
15committed a violation of this Article which makes the continued
16operation of a company contrary to the interests of
17policyholders or the public, the Director may, after notice and
18hearing suspend, revoke or refuse to renew the company's
19license or authority to do business in this State for such a
20period as the Director he finds is required for the protection
21of policyholders or the public. Any such determination must be
22accompanied by specific findings of fact and conclusions of

 

 

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1law.
2(Source: P.A. 77-673.)"; and
 
3on page 65, immediately below line 21, by inserting the
4following:
 
5    "(215 ILCS 5/131.29 new)
6    Sec. 131.29. Rulemaking power. The Director may adopt such
7administrative rules as are necessary to implement the
8provisions of this Article.
 
9    (215 ILCS 5/131.30 new)
10    Sec. 131.30. Conflict with other laws. This Code supersedes
11all laws and parts of laws of this State inconsistent with this
12Code with respect to matters covered by this Code.
 
13    (215 ILCS 5/356z.12)
14    Sec. 356z.12. Dependent coverage.
15    (a) A group or individual policy of accident and health
16insurance or managed care plan that provides coverage for
17dependents and that is amended, delivered, issued, or renewed
18after the effective date of this amendatory Act of the 95th
19General Assembly shall not terminate coverage or deny the
20election of coverage for an unmarried dependent by reason of
21the dependent's age before the dependent's 26th birthday.
22    (b) A policy or plan subject to this Section shall, upon

 

 

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1amendment, delivery, issuance, or renewal, establish an
2initial enrollment period of not less than 90 days during which
3an insured may make a written election for coverage of an
4unmarried person as a dependent under this Section. After the
5initial enrollment period, enrollment by a dependent pursuant
6to this Section shall be consistent with the enrollment terms
7of the plan or policy.
8    (c) A policy or plan subject to this Section shall allow
9for dependent coverage during the annual open enrollment date
10or the annual renewal date if the dependent, as of the date on
11which the insured elects dependent coverage under this
12subsection, has:
13        (1) a period of continuous creditable coverage of 90
14    days or more; and
15        (2) not been without creditable coverage for more than
16    63 days.
17An insured may elect coverage for a dependent who does not meet
18the continuous creditable coverage requirements of this
19subsection (c) and that dependent shall not be denied coverage
20due to age.
21    For purposes of this subsection (c), "creditable coverage"
22shall have the meaning provided under subsection (C)(1) of
23Section 20 of the Illinois Health Insurance Portability and
24Accountability Act.
25    (d) Military personnel. A group or individual policy of
26accident and health insurance or managed care plan that

 

 

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1provides coverage for dependents and that is amended,
2delivered, issued, or renewed after the effective date of this
3amendatory Act of the 95th General Assembly shall not terminate
4coverage or deny the election of coverage for an unmarried
5dependent by reason of the dependent's age before the
6dependent's 30th birthday if the dependent (i) is an Illinois
7resident, (ii) served as a member of the active or reserve
8components of any of the branches of the Armed Forces of the
9United States, and (iii) has received a release or discharge
10other than a dishonorable discharge. To be eligible for
11coverage under this subsection (d), the eligible dependent
12shall submit to the insurer a form approved by the Illinois
13Department of Veterans' Affairs stating the date on which the
14dependent was released from service.
15    (e) Calculation of the cost of coverage provided to an
16unmarried dependent under this Section shall be identical.
17    (f) Nothing in this Section shall prohibit an employer from
18requiring an employee to pay all or part of the cost of
19coverage provided under this Section.
20    (g) No exclusions or limitations may be applied to coverage
21elected pursuant to this Section that do not apply to all
22dependents covered under the policy.
23    (h) A policy or plan subject to this Section shall not
24condition eligibility for dependent coverage provided pursuant
25to this Section on enrollment in any educational institution.
26    (i) Notice regarding coverage for a dependent as provided

 

 

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1pursuant to this Section shall be provided to an insured by the
2insurer:
3        (1) upon application or enrollment;
4        (2) in the certificate of coverage or equivalent
5    document prepared for an insured and delivered on or about
6    the date on which the coverage commences; and
7        (3) (blank) in a notice delivered to an insured on a
8    semi-annual basis.
9(Source: P.A. 95-958, eff. 6-1-09.)"; and
 
10on page 66, by replacing line 4 with the following:
11"1, 2013, except that Section 131.14b of the Illinois Insurance
12Code takes effect July 1, 2013.".