97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1544

 

Introduced 2/9/2011, by Sen. William R. Haine

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/408  from Ch. 73, par. 1020

    Amends the Illinois Insurance Code. Provides that filing fees charged by the Director of Insurance for a policy filed as it will be issued regardless of the number of forms comprising that policy shall not exceed $1,000. Provides that for advisory or rating organizations, fees charged for a policy filed as it will be issued regardless of the number of forms comprising that policy shall not exceed $2,000. Effective immediately.


LRB097 06470 RPM 46552 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1544LRB097 06470 RPM 46552 b

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 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
9acquittances for the payment of the following fees and charges:
10        (a) For filing all documents submitted for the
11    incorporation or organization or certification of a
12    domestic company, except for a fraternal benefit society,
13    $2,000.
14        (b) For filing all documents submitted for the
15    incorporation or organization of a fraternal benefit
16    society, $500.
17        (c) For filing amendments to articles of incorporation
18    and amendments to declaration of organization, except for a
19    fraternal benefit society, a mutual benefit association, a
20    burial society or a farm mutual, $200.
21        (d) For filing amendments to articles of incorporation
22    of a fraternal benefit society, a mutual benefit
23    association or a burial society, $100.

 

 

SB1544- 2 -LRB097 06470 RPM 46552 b

1        (e) For filing amendments to articles of incorporation
2    of a farm mutual, $50.
3        (f) For filing bylaws or amendments thereto, $50.
4        (g) For filing agreement of merger or consolidation:
5            (i) for a domestic company, except for a fraternal
6        benefit society, a mutual benefit association, a
7        burial society, or a farm mutual, $2,000.
8            (ii) for a foreign or alien company, except for a
9        fraternal benefit society, $600.
10            (iii) for a fraternal benefit society, a mutual
11        benefit association, a burial society, or a farm
12        mutual, $200.
13        (h) For filing agreements of reinsurance by a domestic
14    company, $200.
15        (i) For filing all documents submitted by a foreign or
16    alien company to be admitted to transact business or
17    accredited as a reinsurer in this State, except for a
18    fraternal benefit society, $5,000.
19        (j) For filing all documents submitted by a foreign or
20    alien fraternal benefit society to be admitted to transact
21    business in this State, $500.
22        (k) For filing declaration of withdrawal of a foreign
23    or alien company, $50.
24        (l) For filing annual statement, except a fraternal
25    benefit society, a mutual benefit association, a burial
26    society, or a farm mutual, $200.

 

 

SB1544- 3 -LRB097 06470 RPM 46552 b

1        (m) For filing annual statement by a fraternal benefit
2    society, $100.
3        (n) For filing annual statement by a farm mutual, a
4    mutual benefit association, or a burial society, $50.
5        (o) For issuing a certificate of authority or renewal
6    thereof except to a fraternal benefit society, $200.
7        (p) For issuing a certificate of authority or renewal
8    thereof to a fraternal benefit society, $100.
9        (q) For issuing an amended certificate of authority,
10    $50.
11        (r) For each certified copy of certificate of
12    authority, $20.
13        (s) For each certificate of deposit, or valuation, or
14    compliance or surety certificate, $20.
15        (t) For copies of papers or records per page, $1.
16        (u) For each certification to copies of papers or
17    records, $10.
18        (v) For multiple copies of documents or certificates
19    listed in subparagraphs (r), (s), and (u) of paragraph (1)
20    of this Section, $10 for the first copy of a certificate of
21    any type and $5 for each additional copy of the same
22    certificate requested at the same time, unless, pursuant to
23    paragraph (2) of this Section, the Director finds these
24    additional fees excessive.
25        (w) For issuing a permit to sell shares or increase
26    paid-up capital:

 

 

SB1544- 4 -LRB097 06470 RPM 46552 b

1            (i) in connection with a public stock offering,
2        $300;
3            (ii) in any other case, $100.
4        (x) For issuing any other certificate required or
5    permissible under the law, $50.
6        (y) For filing a plan of exchange of the stock of a
7    domestic stock insurance company, a plan of
8    demutualization of a domestic mutual company, or a plan of
9    reorganization under Article XII, $2,000.
10        (z) For filing a statement of acquisition of a domestic
11    company as defined in Section 131.4 of this Code, $2,000.
12        (aa) For filing an agreement to purchase the business
13    of an organization authorized under the Dental Service Plan
14    Act or the Voluntary Health Services Plans Act or of a
15    health maintenance organization or a limited health
16    service organization, $2,000.
17        (bb) For filing a statement of acquisition of a foreign
18    or alien insurance company as defined in Section 131.12a of
19    this Code, $1,000.
20        (cc) For filing a registration statement as required in
21    Sections 131.13 and 131.14, the notification as required by
22    Sections 131.16, 131.20a, or 141.4, or an agreement or
23    transaction required by Sections 124.2(2), 141, 141a, or
24    141.1, $200.
25        (dd) For filing an application for licensing of:
26            (i) a religious or charitable risk pooling trust or

 

 

SB1544- 5 -LRB097 06470 RPM 46552 b

1        a workers' compensation pool, $1,000;
2            (ii) a workers' compensation service company,
3        $500;
4            (iii) a self-insured automobile fleet, $200; or
5            (iv) a renewal of or amendment of any license
6        issued pursuant to (i), (ii), or (iii) above, $100.
7        (ee) For filing articles of incorporation for a
8    syndicate to engage in the business of insurance through
9    the Illinois Insurance Exchange, $2,000.
10        (ff) For filing amended articles of incorporation for a
11    syndicate engaged in the business of insurance through the
12    Illinois Insurance Exchange, $100.
13        (gg) For filing articles of incorporation for a limited
14    syndicate to join with other subscribers or limited
15    syndicates to do business through the Illinois Insurance
16    Exchange, $1,000.
17        (hh) For filing amended articles of incorporation for a
18    limited syndicate to do business through the Illinois
19    Insurance Exchange, $100.
20        (ii) For a permit to solicit subscriptions to a
21    syndicate or limited syndicate, $100.
22        (jj) For the filing of each form as required in Section
23    143 of this Code, $50 per form. The fee for advisory and
24    rating organizations shall be $200 per form.
25            (i) For the purposes of the form filing fee,
26        filings made on insert page basis will be considered

 

 

SB1544- 6 -LRB097 06470 RPM 46552 b

1        one form at the time of its original submission.
2        Changes made to a form subsequent to its approval shall
3        be considered a new filing.
4            (ii) Only one fee shall be charged for a form,
5        regardless of the number of other forms or policies
6        with which it will be used.
7            (iii) Fees charged for a policy filed as it will be
8        issued regardless of the number of forms comprising
9        that policy shall not exceed $1,000. For advisory or
10        rating organizations, fees charged for a policy filed
11        as it will be issued regardless of the number of forms
12        comprising that policy shall not exceed $2,000
13        (Blank).
14            (iv) The Director may by rule exempt forms from
15        such fees.
16        (kk) For filing an application for licensing of a
17    reinsurance intermediary, $500.
18        (ll) For filing an application for renewal of a license
19    of a reinsurance intermediary, $200.
20    (2) When printed copies or numerous copies of the same
21paper or records are furnished or certified, the Director may
22reduce such fees for copies if he finds them excessive. He may,
23when he considers it in the public interest, furnish without
24charge to state insurance departments and persons other than
25companies, copies or certified copies of reports of
26examinations and of other papers and records.

 

 

SB1544- 7 -LRB097 06470 RPM 46552 b

1    (3) The expenses incurred in any performance examination
2authorized by law shall be paid by the company or person being
3examined. The charge shall be reasonably related to the cost of
4the examination including but not limited to compensation of
5examiners, electronic data processing costs, supervision and
6preparation of an examination report and lodging and travel
7expenses. All lodging and travel expenses shall be in accord
8with the applicable travel regulations as published by the
9Department of Central Management Services and approved by the
10Governor's Travel Control Board, except that out-of-state
11lodging and travel expenses related to examinations authorized
12under Section 132 shall be in accordance with travel rates
13prescribed under paragraph 301-7.2 of the Federal Travel
14Regulations, 41 C.F.R. 301-7.2, for reimbursement of
15subsistence expenses incurred during official travel. All
16lodging and travel expenses may be reimbursed directly upon
17authorization of the Director. With the exception of the direct
18reimbursements authorized by the Director, all performance
19examination charges collected by the Department shall be paid
20to the Insurance Producers Administration Fund, however, the
21electronic data processing costs incurred by the Department in
22the performance of any examination shall be billed directly to
23the company being examined for payment to the Statistical
24Services Revolving Fund.
25    (4) At the time of any service of process on the Director
26as attorney for such service, the Director shall charge and

 

 

SB1544- 8 -LRB097 06470 RPM 46552 b

1collect the sum of $20, which may be recovered as taxable costs
2by the party to the suit or action causing such service to be
3made if he prevails in such suit or action.
4    (5) (a) The costs incurred by the Department of Insurance
5in conducting any hearing authorized by law shall be assessed
6against the parties to the hearing in such proportion as the
7Director of Insurance may determine upon consideration of all
8relevant circumstances including: (1) the nature of the
9hearing; (2) whether the hearing was instigated by, or for the
10benefit of a particular party or parties; (3) whether there is
11a successful party on the merits of the proceeding; and (4) the
12relative levels of participation by the parties.
13    (b) For purposes of this subsection (5) costs incurred
14shall mean the hearing officer fees, court reporter fees, and
15travel expenses of Department of Insurance officers and
16employees; provided however, that costs incurred shall not
17include hearing officer fees or court reporter fees unless the
18Department has retained the services of independent
19contractors or outside experts to perform such functions.
20    (c) The Director shall make the assessment of costs
21incurred as part of the final order or decision arising out of
22the proceeding; provided, however, that such order or decision
23shall include findings and conclusions in support of the
24assessment of costs. This subsection (5) shall not be construed
25as permitting the payment of travel expenses unless calculated
26in accordance with the applicable travel regulations of the

 

 

SB1544- 9 -LRB097 06470 RPM 46552 b

1Department of Central Management Services, as approved by the
2Governor's Travel Control Board. The Director as part of such
3order or decision shall require all assessments for hearing
4officer fees and court reporter fees, if any, to be paid
5directly to the hearing officer or court reporter by the
6party(s) assessed for such costs. The assessments for travel
7expenses of Department officers and employees shall be
8reimbursable to the Director of Insurance for deposit to the
9fund out of which those expenses had been paid.
10    (d) The provisions of this subsection (5) shall apply in
11the case of any hearing conducted by the Director of Insurance
12not otherwise specifically provided for by law.
13    (6) The Director shall charge and collect an annual
14financial regulation fee from every domestic company for
15examination and analysis of its financial condition and to fund
16the internal costs and expenses of the Interstate Insurance
17Receivership Commission as may be allocated to the State of
18Illinois and companies doing an insurance business in this
19State pursuant to Article X of the Interstate Insurance
20Receivership Compact. The fee shall be the greater fixed amount
21based upon the combination of nationwide direct premium income
22and nationwide reinsurance assumed premium income or upon
23admitted assets calculated under this subsection as follows:
24        (a) Combination of nationwide direct premium income
25    and nationwide reinsurance assumed premium.
26            (i) $150, if the premium is less than $500,000 and

 

 

SB1544- 10 -LRB097 06470 RPM 46552 b

1        there is no reinsurance assumed premium;
2            (ii) $750, if the premium is $500,000 or more, but
3        less than $5,000,000 and there is no reinsurance
4        assumed premium; or if the premium is less than
5        $5,000,000 and the reinsurance assumed premium is less
6        than $10,000,000;
7            (iii) $3,750, if the premium is less than
8        $5,000,000 and the reinsurance assumed premium is
9        $10,000,000 or more;
10            (iv) $7,500, if the premium is $5,000,000 or more,
11        but less than $10,000,000;
12            (v) $18,000, if the premium is $10,000,000 or more,
13        but less than $25,000,000;
14            (vi) $22,500, if the premium is $25,000,000 or
15        more, but less than $50,000,000;
16            (vii) $30,000, if the premium is $50,000,000 or
17        more, but less than $100,000,000;
18            (viii) $37,500, if the premium is $100,000,000 or
19        more.
20        (b) Admitted assets.
21            (i) $150, if admitted assets are less than
22        $1,000,000;
23            (ii) $750, if admitted assets are $1,000,000 or
24        more, but less than $5,000,000;
25            (iii) $3,750, if admitted assets are $5,000,000 or
26        more, but less than $25,000,000;

 

 

SB1544- 11 -LRB097 06470 RPM 46552 b

1            (iv) $7,500, if admitted assets are $25,000,000 or
2        more, but less than $50,000,000;
3            (v) $18,000, if admitted assets are $50,000,000 or
4        more, but less than $100,000,000;
5            (vi) $22,500, if admitted assets are $100,000,000
6        or more, but less than $500,000,000;
7            (vii) $30,000, if admitted assets are $500,000,000
8        or more, but less than $1,000,000,000;
9            (viii) $37,500, if admitted assets are
10        $1,000,000,000 or more.
11        (c) The sum of financial regulation fees charged to the
12    domestic companies of the same affiliated group shall not
13    exceed $250,000 in the aggregate in any single year and
14    shall be billed by the Director to the member company
15    designated by the group.
16    (7) The Director shall charge and collect an annual
17financial regulation fee from every foreign or alien company,
18except fraternal benefit societies, for the examination and
19analysis of its financial condition and to fund the internal
20costs and expenses of the Interstate Insurance Receivership
21Commission as may be allocated to the State of Illinois and
22companies doing an insurance business in this State pursuant to
23Article X of the Interstate Insurance Receivership Compact. The
24fee shall be a fixed amount based upon Illinois direct premium
25income and nationwide reinsurance assumed premium income in
26accordance with the following schedule:

 

 

SB1544- 12 -LRB097 06470 RPM 46552 b

1        (a) $150, if the premium is less than $500,000 and
2    there is no reinsurance assumed premium;
3        (b) $750, if the premium is $500,000 or more, but less
4    than $5,000,000 and there is no reinsurance assumed
5    premium; or if the premium is less than $5,000,000 and the
6    reinsurance assumed premium is less than $10,000,000;
7        (c) $3,750, if the premium is less than $5,000,000 and
8    the reinsurance assumed premium is $10,000,000 or more;
9        (d) $7,500, if the premium is $5,000,000 or more, but
10    less than $10,000,000;
11        (e) $18,000, if the premium is $10,000,000 or more, but
12    less than $25,000,000;
13        (f) $22,500, if the premium is $25,000,000 or more, but
14    less than $50,000,000;
15        (g) $30,000, if the premium is $50,000,000 or more, but
16    less than $100,000,000;
17        (h) $37,500, if the premium is $100,000,000 or more.
18    The sum of financial regulation fees under this subsection
19(7) charged to the foreign or alien companies within the same
20affiliated group shall not exceed $250,000 in the aggregate in
21any single year and shall be billed by the Director to the
22member company designated by the group.
23    (8) Beginning January 1, 1992, the financial regulation
24fees imposed under subsections (6) and (7) of this Section
25shall be paid by each company or domestic affiliated group
26annually. After January 1, 1994, the fee shall be billed by

 

 

SB1544- 13 -LRB097 06470 RPM 46552 b

1Department invoice based upon the company's premium income or
2admitted assets as shown in its annual statement for the
3preceding calendar year. The invoice is due upon receipt and
4must be paid no later than June 30 of each calendar year. All
5financial regulation fees collected by the Department shall be
6paid to the Insurance Financial Regulation Fund. The Department
7may not collect financial examiner per diem charges from
8companies subject to subsections (6) and (7) of this Section
9undergoing financial examination after June 30, 1992.
10    (9) In addition to the financial regulation fee required by
11this Section, a company undergoing any financial examination
12authorized by law shall pay the following costs and expenses
13incurred by the Department: electronic data processing costs,
14the expenses authorized under Section 131.21 and subsection (d)
15of Section 132.4 of this Code, and lodging and travel expenses.
16    Electronic data processing costs incurred by the
17Department in the performance of any examination shall be
18billed directly to the company undergoing examination for
19payment to the Statistical Services Revolving Fund. Except for
20direct reimbursements authorized by the Director or direct
21payments made under Section 131.21 or subsection (d) of Section
22132.4 of this Code, all financial regulation fees and all
23financial examination charges collected by the Department
24shall be paid to the Insurance Financial Regulation Fund.
25    All lodging and travel expenses shall be in accordance with
26applicable travel regulations published by the Department of

 

 

SB1544- 14 -LRB097 06470 RPM 46552 b

1Central Management Services and approved by the Governor's
2Travel Control Board, except that out-of-state lodging and
3travel expenses related to examinations authorized under
4Sections 132.1 through 132.7 shall be in accordance with travel
5rates prescribed under paragraph 301-7.2 of the Federal Travel
6Regulations, 41 C.F.R. 301-7.2, for reimbursement of
7subsistence expenses incurred during official travel. All
8lodging and travel expenses may be reimbursed directly upon the
9authorization of the Director.
10    In the case of an organization or person not subject to the
11financial regulation fee, the expenses incurred in any
12financial examination authorized by law shall be paid by the
13organization or person being examined. The charge shall be
14reasonably related to the cost of the examination including,
15but not limited to, compensation of examiners and other costs
16described in this subsection.
17    (10) Any company, person, or entity failing to make any
18payment of $150 or more as required under this Section shall be
19subject to the penalty and interest provisions provided for in
20subsections (4) and (7) of Section 412.
21    (11) Unless otherwise specified, all of the fees collected
22under this Section shall be paid into the Insurance Financial
23Regulation Fund.
24    (12) For purposes of this Section:
25        (a) "Domestic company" means a company as defined in
26    Section 2 of this Code which is incorporated or organized

 

 

SB1544- 15 -LRB097 06470 RPM 46552 b

1    under the laws of this State, and in addition includes a
2    not-for-profit corporation authorized under the Dental
3    Service Plan Act or the Voluntary Health Services Plans
4    Act, a health maintenance organization, and a limited
5    health service organization.
6        (b) "Foreign company" means a company as defined in
7    Section 2 of this Code which is incorporated or organized
8    under the laws of any state of the United States other than
9    this State and in addition includes a health maintenance
10    organization and a limited health service organization
11    which is incorporated or organized under the laws of any
12    state of the United States other than this State.
13        (c) "Alien company" means a company as defined in
14    Section 2 of this Code which is incorporated or organized
15    under the laws of any country other than the United States.
16        (d) "Fraternal benefit society" means a corporation,
17    society, order, lodge or voluntary association as defined
18    in Section 282.1 of this Code.
19        (e) "Mutual benefit association" means a company,
20    association or corporation authorized by the Director to do
21    business in this State under the provisions of Article
22    XVIII of this Code.
23        (f) "Burial society" means a person, firm,
24    corporation, society or association of individuals
25    authorized by the Director to do business in this State
26    under the provisions of Article XIX of this Code.

 

 

SB1544- 16 -LRB097 06470 RPM 46552 b

1        (g) "Farm mutual" means a district, county and township
2    mutual insurance company authorized by the Director to do
3    business in this State under the provisions of the Farm
4    Mutual Insurance Company Act of 1986.
5(Source: P.A. 93-32, eff. 7-1-03; 93-1083, eff. 2-7-05.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.