98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2333

 

Introduced , by Rep. Robyn Gabel

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/351A-11.1 new
215 ILCS 5/355  from Ch. 73, par. 967

    Amends the Illinois Insurance Code. Provides that, with respect to long-term care insurance coverage, no policy or certificate, or modification thereof, shall be issued or delivered to any person in this State until the classification of risks and the premium rates pertaining thereto have been approved by the Director of Insurance and that any subsequent addition to or change in premium rates shall also be subject to the Director's approval. Sets forth provisions concerning the standards for approval, determinations by the Director, and public hearings. Provides that, with respect to long-term care insurance, a filing of premium rates shall not be considered complete unless it contains all information necessary to justify the premium rate and such other information as the Director may require to determine the rate's compliance with the provision concerning long-term care insurance rates and prior approval. Sets forth additional requirements for rate filings. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning insurance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 355 and by adding Section 351A-11.1 as
6follows:
 
7    (215 ILCS 5/351A-11.1 new)
8    Sec. 351A-11.1. Long-term care insurance rates; prior
9approval.
10    (a) With respect to long-term care insurance coverage, no
11policy or certificate, or modification thereof, shall be issued
12or delivered to any person in this State until the
13classification of risks and the premium rates pertaining
14thereto have been approved by the Director under this Section.
15Any subsequent addition to or change in premium rates shall
16also be subject to the Director's approval under this Section.
17    (b) The Director shall disapprove a premium rate under this
18Section if:
19        (1) the benefits provided are not reasonable in
20    relation to the premium charged;
21        (2) the proposed premium rate is excessive,
22    unjustified, or unfairly discriminatory; or
23        (3) for a given policy form, the premium rate

 

 

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1    applicable to any particular policy issued on that policy
2    form is increased by an amount exceeding an annual rate cap
3    of 15%.
4    The company proposing the rate has the burden of proving by
5clear and convincing evidence that the rate does not violate
6this Section.
7    (c) The Director may request actuarial reasons and data, as
8well as other information, needed to determine if a
9previously-approved rate continues to satisfy the requirements
10of this Section. The Director may withdraw approval of any rate
11that has previously been approved on any of the grounds set
12forth in subsection (b) of this Section.
13    (d) The Director, at his or her discretion, may conduct a
14public hearing on any proposed change in premium rates
15referenced in subsection (a) of this Section.
 
16    (215 ILCS 5/355)  (from Ch. 73, par. 967)
17    Sec. 355. Accident and health policies-Provisions.)
18    (a) No policy of insurance against loss or damage from the
19sickness, or from the bodily injury or death of the insured by
20accident shall be issued or delivered to any person in this
21State until a copy of the form thereof and of the
22classification of risks and the premium rates pertaining
23thereto have been filed with the Director; nor shall it be so
24issued or delivered until the Director shall have approved such
25policy pursuant to the provisions of Section 143. If the

 

 

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1Director disapproves the policy form he shall make a written
2decision stating the respects in which such form does not
3comply with the requirements of law and shall deliver a copy
4thereof to the company and it shall be unlawful thereafter for
5any such company to issue any policy in such form.
6    (b) With respect to long-term care insurance, a filing of
7premium rates pursuant to subsection (a) of this Section shall
8not be considered complete unless it contains all information
9necessary to justify the premium rate and such other
10information as the Director may require to determine the rate's
11compliance with Section 351A-11.1 of this Code. Each rate
12filing must also include a certification by a qualified actuary
13that to the best of the actuary's knowledge and judgment the
14rate filing is in compliance with applicable laws and
15regulations and that the premiums are reasonable in relation to
16the benefits and consistent with company experience. Each rate
17filing shall also include a certification from an office of the
18company that the requested increase has been reviewed and
19authorized by company management. For the purpose of this
20Section, "long-term care insurance" has the meaning given to it
21in subsection (a) of Section 351A-1 of this Code.
22(Source: P.A. 79-777.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.