(215 ILCS 5/511.106)
(from Ch. 73, par. 1065.58-106)
(Section scheduled to be repealed on January 1, 2027)
(a) Each administrator shall
identify to the Director any ownership interest or affiliation of any kind
with any plan sponsor or insurer responsible directly or through reinsurance
for providing benefits to any plan for which it provides services as an administrator.
(b) An administrator shall provide services as an administrator pursuant
to a written agreement. The written agreement shall be between the administrator
and the plan sponsor or insurer and shall be retained as part of the official
records of the administrator for the duration of said agreement and for
5 years thereafter.
(c) An administrator shall maintain in its principal office for the duration
of the written agreement with any plan sponsor or insurer and for 5 years
thereafter adequate books and records of all transactions involving a plan
sponsor or insurer and covered individuals or beneficiaries. Such books and
records shall be maintained in accordance with generally accepted standards
of business recordkeeping. An administrator is not required to maintain
copies of books and records if such originals are returned to the plan sponsor
or insurer prior to the end of such 5 year period. The administrator shall
maintain evidence of the return of the originals for the balance of the 5 year period.
(d) The administrator shall file with the Director the names and addresses
of the insurers and plan sponsors with whom the administrator has written
agreements. If an insurer or plan sponsor does not assume or bear the risk,
the administrator must disclose the name and address of the ultimate risk
bearer. This filing requirement shall apply to the initial application
for an administrator's license and the renewal of such license.
(e) An administrator shall use only advertising pertaining to the plan which
has been approved in advance by the plan sponsor or insurer.
(f) Upon receipt of instructions from the plan sponsor or insurer, an
administrator shall deliver promptly to covered individuals or beneficiaries
all policies, certificate booklets, termination notices or other written communications.
(g) An administrator shall not receive compensation from a plan sponsor
or insurer which is contingent upon the loss ratio of the plan. This subsection
shall not, however, prevent the administrator from engaging in cost containment
activities with a plan sponsor or insurer.
(h) An administrator shall not receive from any plan sponsor, insurer,
covered individual or beneficiary under a plan any compensation or other
payments except as expressly set forth in the written agreement between
the administrator and the plan sponsor or insurer.
(i) Upon request of the Director, an administrator shall make available
for examination, either in the City of Springfield or at the licensee's
principal place of business, all basic organizational documents including
but not limited to articles of incorporation, articles of association, partnership
agreement, trade name certificate, trust agreement, shareholder agreement
and other applicable documents and all amendments thereto, bylaws, rules
and regulations or similar documents regulating the conduct of its internal affairs.
(Source: P.A. 84-887