98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3671

 

Introduced 11/7/2014, by Sen. William R. Haine

 

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 regulation.
 
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 20%, unless the company proposing the rate increase
4    provides evidence in the form of actuarial data to prove,
5    according to the Director's determination, that a rate
6    increase in excess of 20% is necessary for the financial
7    stability of the company.
8    The company proposing the rate has the burden of proving by
9clear and convincing evidence that the rate does not violate
10this Section.
11    (c) The Director may request actuarial reasons and data, as
12well as other information, needed to determine if a
13previously-approved rate continues to satisfy the requirements
14of this Section. The Director may withdraw approval of any rate
15that has previously been approved on any of the grounds set
16forth in subsection (b) of this Section.
17    (d) The Director, at his or her discretion, may conduct a
18public hearing on any proposed change in premium rates
19referenced in subsection (a) of this Section.
 
20    (215 ILCS 5/355)  (from Ch. 73, par. 967)
21    Sec. 355. Accident and health policies-Provisions.)
22    (a) No policy of insurance against loss or damage from the
23sickness, or from the bodily injury or death of the insured by
24accident shall be issued or delivered to any person in this
25State until a copy of the form thereof and of the

 

 

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1classification of risks and the premium rates pertaining
2thereto have been filed with the Director; nor shall it be so
3issued or delivered until the Director shall have approved such
4policy pursuant to the provisions of Section 143. If the
5Director disapproves the policy form he shall make a written
6decision stating the respects in which such form does not
7comply with the requirements of law and shall deliver a copy
8thereof to the company and it shall be unlawful thereafter for
9any such company to issue any policy in such form.
10    (b) With respect to long-term care insurance, a filing of
11premium rates pursuant to subsection (a) of this Section shall
12not be considered complete unless it contains all information
13necessary to justify the premium rate and such other
14information as the Director may require to determine the rate's
15compliance with Section 351A-11.1 of this Code. Each rate
16filing must also include a certification by a qualified actuary
17that to the best of the actuary's knowledge and judgment the
18rate filing is in compliance with applicable laws and
19regulations and that the premiums are reasonable in relation to
20the benefits and consistent with company experience. Each rate
21filing shall also include a certification from an office of the
22company that the requested increase has been reviewed and
23authorized by company management. For the purpose of this
24Section, "long-term care insurance" has the meaning given to it
25in subsection (a) of Section 351A-1 of this Code.
26(Source: P.A. 79-777.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.