Full Text of HB4472 93rd General Assembly
HB4472 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB4472
Introduced 02/03/04, by Frank J. Mautino SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/123B-8 |
from Ch. 73, par. 735B-8 |
215 ILCS 5/179A-15 |
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215 ILCS 5/179E-65 |
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215 ILCS 5/408 |
from Ch. 73, par. 1020 |
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Amends the Illinois Insurance Code. Increases various fees imposed by the Department of Insurance. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB4472 |
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LRB093 16344 SAS 41982 b |
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| AN ACT concerning the Department of Insurance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Sections 123B-8, 179A-15, 179E-65, and 408 as follows:
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| (215 ILCS 5/123B-8) (from Ch. 73, par. 735B-8)
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| Sec. 123B-8. Notice and registration requirements
of | 8 |
| purchasing groups.
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| A. A purchasing group that intends to do business
in this | 10 |
| State shall, prior to doing business, furnish
notice to the | 11 |
| Director, on a form prescribed by the Director, that shall:
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| (1) identify the state in which the group is domiciled;
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| (2) specify the lines and classifications of liability
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| insurance which the purchasing group intends to purchase;
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| (3) identify the insurance company from which the
group | 16 |
| intends to purchase its insurance and the domicile
of such | 17 |
| company;
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| (4) specify the method by which, and the person or
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| persons, if any, through whom insurance will be offered
to | 20 |
| its members whose risks are resident or located in
this | 21 |
| State;
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| (5) identify the principal place of business of the
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| group;
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| (6) identify all other states in which the group | 25 |
| intends
to do business; and
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| (7) provide such other information as may be required
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| by the Director to verify that the purchasing group
is | 28 |
| qualified under subsection (10) of Section 123B-2 of this | 29 |
| Article.
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| B. A purchasing group shall, within 10 days, notify the | 31 |
| Director of any
changes in any item set forth in subsection A | 32 |
| of this Section.
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LRB093 16344 SAS 41982 b |
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| C. The purchasing group shall register with and designate
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| the Director as its agent solely for the purpose of
receiving | 3 |
| service of legal documents or process, for
which a filing fee | 4 |
| of $200
$100 payable to the Director shall
be required, except | 5 |
| that such requirements shall not
apply in the case of a | 6 |
| purchasing group:
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| (1) which in any state of the United States:
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| (a) was domiciled before April 2, 1986; and
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| (b) is domiciled on and after October 27, 1986, in
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| any state of the United States;
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| (2) which:
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| (a) before October 27, 1986, purchased insurance
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| from an insurance carrier licensed in any state; and
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| (b) since October 27, 1986, purchased its | 15 |
| insurance
from an insurance carrier licensed in any | 16 |
| state;
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| (3) which was a purchasing group under the requirements
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| of the Product Liability Risk Retention Act of 1981 before
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| October 27, 1986; and
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| (4) which does not purchase insurance that was not
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| authorized for purposes of an exemption under that Act,
as | 22 |
| in effect before October 27, 1986.
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| D. Any purchasing group which was doing business in
this | 24 |
| State prior to August 3, 1987, shall,
within 30 days after that | 25 |
| date, furnish notice to the Director pursuant to
the provisions | 26 |
| of subsection A of this Section and furnish
such information as | 27 |
| may be required pursuant to subsection B
of this Section.
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| (Source: P.A. 87-1090.)
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| (215 ILCS 5/179A-15)
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| Sec. 179A-15. Establishment of protected cells.
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| (a) A domestic company may,
with the prior written approval | 32 |
| by the Director of a
plan of operation
submitted by the | 33 |
| domestic company with respect to each protected cell,
establish | 34 |
| one or more
protected cells in connection with an insurance | 35 |
| securitization. Upon the
written approval by the Director of |
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LRB093 16344 SAS 41982 b |
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| the plan of
operation, which shall
include, but not be limited | 2 |
| to, the specific business and investment
guidelines
of the | 3 |
| protected
cell, the protected cell company may, in accordance | 4 |
| with the approved plan
of operation,
attribute to the
protected | 5 |
| cell insurance obligations with
respect to
its insurance
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| business and obligations relating to the insurance | 7 |
| securitization and
assets to fund those obligations. A | 8 |
| protected cell shall have
its own distinct name
or designation, | 9 |
| which shall include the words "protected cell". The protected
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| cell company
shall transfer all
assets attributable to a | 11 |
| protected cell to one or more separately established
and | 12 |
| identified
protected cell accounts bearing the name or | 13 |
| designation of that protected cell.
Protected cell
assets shall | 14 |
| be held in the protected cell accounts for the purpose of
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| satisfying the obligations of
that protected cell. The Director | 16 |
| shall charge $5,000 for filing a plan of operation.
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| (b) All attributions of assets and
liabilities between a | 18 |
| protected
cell and the general account shall be in accordance
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| with the
plan
of operation approved by the Director. No
other
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| attribution of assets or
liabilities may be made by a protected | 21 |
| cell company
between the
protected cell company's general | 22 |
| account and its
protected cells.
Any attribution of assets and
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| liabilities between the general account and a protected cell
or | 24 |
| from investors in the form of principal on a debt instrument
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| issued by a
protected cell company shall be in cash or in | 26 |
| readily marketable securities
with
established market values.
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| (c) The creation of a protected cell does not create, in | 28 |
| respect of that
protected cell, a legal person
separate from | 29 |
| the protected cell company. Amounts attributed to a protected
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| cell under this
Article, including
assets transferred to a | 31 |
| protected cell account, are owned by the protected
cell company | 32 |
| and
the protected cell company may
not be, nor hold itself out | 33 |
| to be, a trustee with respect to those protected
cell assets of | 34 |
| that
protected cell account. Notwithstanding the foregoing, | 35 |
| the company may allow
for a security
interest to attach to | 36 |
| protected cell assets or a protected cell account when in
favor |
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LRB093 16344 SAS 41982 b |
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| of a creditor of
the protected cell and otherwise allowed under | 2 |
| applicable law.
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| (d) This Article shall not be construed to prohibit the | 4 |
| protected cell
company from
contracting with or
arranging for | 5 |
| an investment advisor, commodity trading advisor, or other | 6 |
| third
party to manage
the protected cell assets of a protected | 7 |
| cell, provided that all remuneration,
expenses, and other
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| compensation of the third party advisor or manager are payable | 9 |
| from the
protected cell assets of
that protected cell and not | 10 |
| from the protected cell assets of other protected
cells or the | 11 |
| assets of
the protected cell company's general account.
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| (e) A protected cell company shall
establish
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| administrative and
accounting procedures necessary to properly | 14 |
| identify the one or more
protected cells of the
protected cell | 15 |
| company and the protected cell assets and protected cell
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| liabilities
attributable to the protected cells. It shall be
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| the duty of the directors of a protected cell company to:
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| (1) keep protected
cell assets and
protected cell | 19 |
| liabilities separate and separately identifiable from the | 20 |
| assets
and liabilities of the
protected cell company's | 21 |
| general account; and
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| (2) keep protected cell assets and protected
cell | 23 |
| liabilities
attributable to one protected cell separate | 24 |
| and separately identifiable from
protected cell assets
and | 25 |
| protected cell liabilities attributable to other protected | 26 |
| cells.
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| If this Section is violated,
the remedy of tracing shall
be
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| applicable to protected cell assets when commingled with | 29 |
| protected cell assets
of other protected
cells or the assets of | 30 |
| the protected cell company's general account.
The remedy of | 31 |
| tracing shall not be construed as an exclusive remedy.
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| (f) The protected cell company shall, when
establishing a | 33 |
| protected cell, attribute to the protected cell assets with a
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| value at least equal to the reserves and other insurance | 35 |
| liabilities attributed
to that protected cell.
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| (Source: P.A. 91-278, eff. 7-23-99; 92-74, eff. 7-12-01.)
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LRB093 16344 SAS 41982 b |
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| (215 ILCS 5/179E-65)
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| Sec. 179E-65. Fees and taxes. The Director shall charge:
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| (1) $5,000 for review of the plan of operation of a SPRV. | 4 |
| (2) $1,000 for filing financial statements. | 5 |
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The Director may charge fees to reimburse
the
Director for | 6 |
| expenses and costs incurred by the Department incident to the
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| examination of
financial statements and review of the plan of | 8 |
| operation and to reimburse other
such
activities of the | 9 |
| Director related to the formation and ongoing operation of an
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| SPRV. An
SPRV is not be subject to State premium or other State | 11 |
| taxes incidental to the
operation of
its business as long as | 12 |
| the business remains within the limitations of this
Article.
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| (Source: P.A. 92-124, eff. 7-20-01.)
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| (215 ILCS 5/408) (from Ch. 73, par. 1020)
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| Sec. 408. Fees and charges.
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| (1) The Director shall charge, collect and
give proper | 17 |
| acquittances for the payment of the following fees and charges:
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| (a) For filing all documents submitted for the | 19 |
| incorporation or
organization or certification of a | 20 |
| domestic company, except for a fraternal
benefit society, | 21 |
| $2,000.
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| (b) For filing all documents submitted for the | 23 |
| incorporation or
organization of a fraternal benefit | 24 |
| society, $500.
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| (c) For filing amendments to articles of incorporation | 26 |
| and amendments to
declaration of organization, except for a | 27 |
| fraternal benefit society, a
mutual benefit association, a | 28 |
| burial society or a farm mutual, $200.
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| (d) For filing amendments to articles of incorporation | 30 |
| of a fraternal
benefit society, a mutual benefit | 31 |
| association or a burial society, $100.
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| (e) For filing amendments to articles of incorporation | 33 |
| of a farm mutual,
$50.
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| (f) For filing bylaws or amendments thereto, $50.
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LRB093 16344 SAS 41982 b |
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| (g) For filing agreement of merger or consolidation:
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| (i) for a domestic company, except
for a fraternal | 3 |
| benefit society, a
mutual benefit association, a | 4 |
| burial society,
or a farm mutual, $2,000.
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| (ii) for a foreign or
alien company, except for a | 6 |
| fraternal
benefit society, $600.
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| (iii) for a fraternal benefit society,
a mutual | 8 |
| benefit association, a burial society,
or a farm | 9 |
| mutual, $200.
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| (h) For filing agreements of reinsurance by a domestic | 11 |
| company, $200.
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| (i) For filing all documents submitted by a foreign or | 13 |
| alien
company to be admitted to transact business or | 14 |
| accredited as a
reinsurer in this State, except for a
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| fraternal benefit society, $5,000.
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| (j) For filing all documents submitted by a foreign or | 17 |
| alien
fraternal benefit society to be admitted to transact | 18 |
| business
in this State, $500.
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| (k) For filing declaration of withdrawal of a foreign | 20 |
| or
alien company, $50.
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| (l) For filing annual statement, except a fraternal | 22 |
| benefit
society, a mutual benefit association, a burial | 23 |
| society, or
a farm mutual, $200.
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| (m) For filing annual statement by a fraternal benefit
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| society, $100.
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| (n) For filing annual statement by a farm mutual, a | 27 |
| mutual benefit
association, or a burial society, $50.
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| (o) For issuing a certificate of authority or
renewal | 29 |
| thereof except to a fraternal benefit society, $200.
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| (p) For issuing a certificate of authority or renewal | 31 |
| thereof to a
fraternal benefit society, $100.
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| (q) For issuing an amended certificate of authority, | 33 |
| $50.
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| (r) For each certified copy of certificate of | 35 |
| authority, $20.
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| (s) For each certificate of deposit, or valuation, or |
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LRB093 16344 SAS 41982 b |
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| compliance
or surety certificate, $20.
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| (t) For copies of papers or records per page, $2
$1 .
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| (u) For each certification to copies
of papers or | 4 |
| records, $20
$10 .
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| (v) For multiple copies of documents or certificates | 6 |
| listed in
subparagraphs (r), (s), and (u) of paragraph (1) | 7 |
| of this Section, $20
$10 for
the first copy of a | 8 |
| certificate of any type and $10
$5 for each additional copy
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| of the same certificate requested at the same time, unless, | 10 |
| pursuant to
paragraph (2) of this Section, the Director | 11 |
| finds these additional fees
excessive.
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| (w) For issuing a permit to sell shares or increase | 13 |
| paid-up
capital:
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| (i) in connection with a public stock offering, | 15 |
| $300;
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| (ii) in any other case, $100.
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| (x) For issuing any other certificate required or | 18 |
| permissible
under the law, $50.
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| (y) For filing a plan of exchange of the stock of a | 20 |
| domestic
stock insurance company, a plan of | 21 |
| demutualization of a domestic
mutual company, or a plan of | 22 |
| reorganization under Article XII, $2,000.
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| (z) For filing a statement of acquisition of a
domestic | 24 |
| company as defined in Section 131.4 of this Code, $2,000.
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| (aa) For filing an agreement to purchase the business | 26 |
| of an
organization authorized under the Dental Service Plan | 27 |
| Act
or the Voluntary Health Services Plans Act or
of a | 28 |
| health maintenance
organization or a limited health | 29 |
| service organization, $2,000.
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| (bb) For filing a statement of acquisition of a foreign | 31 |
| or alien
insurance company as defined in Section 131.12a of | 32 |
| this Code, $1,000.
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| (cc) For filing a registration statement as required in | 34 |
| Sections 131.13
and 131.14, the notification as required by | 35 |
| Sections 131.16,
131.20a, or 141.4, or an
agreement or | 36 |
| transaction required by Sections 124.2(2), 141, 141a, or
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LRB093 16344 SAS 41982 b |
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| 141.1, $200.
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| (dd) For filing an application for licensing of:
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| (i) a religious or charitable risk pooling trust or | 4 |
| a workers'
compensation pool, $1,000;
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| (ii) a workers' compensation service company, | 6 |
| $500;
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| (iii) a self-insured automobile fleet, $200; or
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| (iv) a renewal of or amendment of any license | 9 |
| issued pursuant to (i),
(ii), or (iii) above, $100.
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| (ee) For filing articles of incorporation for a | 11 |
| syndicate to engage in
the business of insurance through | 12 |
| the Illinois Insurance Exchange, $2,000.
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| (ff) For filing amended articles of incorporation for a | 14 |
| syndicate engaged
in the business of insurance through the | 15 |
| Illinois Insurance Exchange, $100.
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| (gg) For filing articles of incorporation for a limited | 17 |
| syndicate to
join with other subscribers or limited | 18 |
| syndicates to do business through
the Illinois Insurance | 19 |
| Exchange, $1,000.
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| (hh) For filing amended articles of incorporation for a | 21 |
| limited
syndicate to do business through the Illinois | 22 |
| Insurance Exchange, $100.
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| (ii) For a permit to solicit subscriptions to a | 24 |
| syndicate
or limited syndicate, $100.
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| (jj) For the filing of each form as required in Section | 26 |
| 143 of this
Code, $50 per form. The fee for advisory and | 27 |
| rating
organizations shall be $200 per form.
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| (i) For the purposes of the form filing fee, | 29 |
| filings made on insert page
basis will be considered | 30 |
| one form at the time of its original submission.
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| Changes made to a form subsequent to its approval shall | 32 |
| be considered a
new filing.
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| (ii) Only one fee shall be charged for a form, | 34 |
| regardless of the number
of other forms or policies | 35 |
| with which it will be used.
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| (iii) Fees charged for a policy filed as it will be |
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LRB093 16344 SAS 41982 b |
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| issued regardless of
the number of forms comprising | 2 |
| that policy shall not exceed $1,000
or $2,000
for | 3 |
| advisory or rating organizations.
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| (iv) The Director may by rule exempt forms from | 5 |
| such fees.
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| (kk) For filing an application for licensing of a | 7 |
| reinsurance
intermediary, $500.
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| (ll) For filing an application for renewal of a license | 9 |
| of a reinsurance
intermediary, $200.
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| (2) When printed copies or numerous copies of the same | 11 |
| paper or records
are furnished or certified, the Director may | 12 |
| reduce such fees for copies
if he finds them excessive. He may, | 13 |
| when he considers it in the public
interest, furnish without | 14 |
| charge to state insurance departments and persons
other than | 15 |
| companies, copies or certified copies of reports of | 16 |
| examinations
and of other papers and records.
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| (3) The expenses incurred in any performance
examination | 18 |
| authorized by law shall be paid by the company or person being
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| examined. The charge shall be reasonably related to the cost of | 20 |
| the
examination including but not limited to compensation of | 21 |
| examiners,
electronic data processing costs, supervision and | 22 |
| preparation of an
examination report and lodging and travel | 23 |
| expenses.
All lodging and travel expenses shall be in accord
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| with the applicable travel regulations as published by the | 25 |
| Department of
Central Management Services and approved by the | 26 |
| Governor's Travel Control
Board, except that out-of-state | 27 |
| lodging and travel expenses related to
examinations authorized | 28 |
| under Section 132 shall be in accordance with
travel rates | 29 |
| prescribed under paragraph 301-7.2 of the Federal Travel
| 30 |
| Regulations, 41 C.F.R. 301-7.2, for reimbursement of | 31 |
| subsistence expenses
incurred during official travel. All | 32 |
| lodging and travel expenses may be reimbursed directly upon | 33 |
| authorization of the
Director. With the exception of the
direct | 34 |
| reimbursements authorized by the
Director, all performance | 35 |
| examination charges collected by the
Department shall be paid
| 36 |
| to the Insurance Producers Administration Fund,
however, the |
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HB4472 |
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LRB093 16344 SAS 41982 b |
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| electronic data processing costs
incurred by the Department in | 2 |
| the performance of any examination shall be
billed directly to | 3 |
| the company being examined for payment to the
Statistical | 4 |
| Services Revolving Fund.
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| (4) At the time of any service of process on the Director
| 6 |
| as attorney for such service, the Director shall charge and | 7 |
| collect the
sum of $20, which may be recovered as taxable costs | 8 |
| by
the party to the suit or action causing such service to be | 9 |
| made if he prevails
in such suit or action.
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| (5) (a) The costs incurred by the Department of Insurance
| 11 |
| in conducting any hearing authorized by law shall be assessed | 12 |
| against the
parties to the hearing in such proportion as the | 13 |
| Director of Insurance may
determine upon consideration of all | 14 |
| relevant circumstances including: (1)
the nature of the | 15 |
| hearing; (2) whether the hearing was instigated by, or
for the | 16 |
| benefit of a particular party or parties; (3) whether there is | 17 |
| a
successful party on the merits of the proceeding; and (4) the | 18 |
| relative levels
of participation by the parties.
| 19 |
| (b) For purposes of this subsection (5) costs incurred | 20 |
| shall
mean the hearing officer fees, court reporter fees, and | 21 |
| travel expenses
of Department of Insurance officers and | 22 |
| employees; provided however, that
costs incurred shall not | 23 |
| include hearing officer fees or court reporter
fees unless the | 24 |
| Department has retained the services of independent
| 25 |
| contractors or outside experts to perform such functions.
| 26 |
| (c) The Director shall make the assessment of costs | 27 |
| incurred as part of
the final order or decision arising out of | 28 |
| the proceeding; provided, however,
that such order or decision | 29 |
| shall include findings and conclusions in support
of the | 30 |
| assessment of costs. This subsection (5) shall not be construed | 31 |
| as
permitting the payment of travel expenses unless calculated | 32 |
| in accordance
with the applicable travel regulations of the | 33 |
| Department
of Central Management Services, as approved by the | 34 |
| Governor's Travel Control
Board. The Director as part of such | 35 |
| order or decision shall require all
assessments for hearing | 36 |
| officer fees and court reporter fees, if any, to
be paid |
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LRB093 16344 SAS 41982 b |
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| directly to the hearing officer or court reporter by the | 2 |
| party(s)
assessed for such costs. The assessments for travel | 3 |
| expenses of Department
officers and employees shall be | 4 |
| reimbursable to the
Director of Insurance for
deposit to the | 5 |
| fund out of which those expenses had been paid.
| 6 |
| (d) The provisions of this subsection (5) shall apply in | 7 |
| the case of any
hearing conducted by the Director of Insurance | 8 |
| not otherwise specifically
provided for by law.
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| (6) The Director shall charge and collect an annual | 10 |
| financial
regulation fee from every domestic company for | 11 |
| examination and analysis of
its financial condition and to fund | 12 |
| the internal costs and expenses of the
Interstate Insurance | 13 |
| Receivership Commission as may be allocated to the State
of | 14 |
| Illinois and companies doing an insurance business in this | 15 |
| State pursuant to
Article X of the Interstate Insurance | 16 |
| Receivership Compact. The fee shall be
the greater fixed amount | 17 |
| based upon
the combination of nationwide direct premium income | 18 |
| and
nationwide reinsurance
assumed premium
income or upon | 19 |
| admitted assets calculated under this subsection as follows:
| 20 |
| (a) Combination of nationwide direct premium income | 21 |
| and
nationwide reinsurance assumed premium.
| 22 |
| (i) $150, if the premium is less than $500,000 and | 23 |
| there is
no
reinsurance assumed premium;
| 24 |
| (ii) $750, if the premium is $500,000 or more, but | 25 |
| less
than $5,000,000
and there is no reinsurance | 26 |
| assumed premium; or if the premium is less than
| 27 |
| $5,000,000 and the reinsurance assumed premium is less | 28 |
| than $10,000,000;
| 29 |
| (iii) $3,750, if the premium is less than | 30 |
| $5,000,000 and
the reinsurance
assumed premium is | 31 |
| $10,000,000 or more;
| 32 |
| (iv) $7,500, if the premium is $5,000,000 or more, | 33 |
| but
less than
$10,000,000;
| 34 |
| (v) $18,000, if the premium is $10,000,000 or more, | 35 |
| but
less than $25,000,000;
| 36 |
| (vi) $22,500, if the premium is $25,000,000 or |
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HB4472 |
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LRB093 16344 SAS 41982 b |
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| more, but
less
than $50,000,000;
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| (vii) $30,000, if the premium is $50,000,000 or | 3 |
| more,
but less than $100,000,000;
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| (viii) $37,500, if the premium is $100,000,000 or | 5 |
| more.
| 6 |
| (b) Admitted assets.
| 7 |
| (i) $150, if admitted assets are less than | 8 |
| $1,000,000;
| 9 |
| (ii) $750, if admitted assets are $1,000,000 or | 10 |
| more, but
less than
$5,000,000;
| 11 |
| (iii) $3,750, if admitted assets are $5,000,000 or | 12 |
| more,
but less than
$25,000,000;
| 13 |
| (iv) $7,500, if admitted assets are $25,000,000 or | 14 |
| more,
but less than
$50,000,000;
| 15 |
| (v) $18,000, if admitted assets are $50,000,000 or | 16 |
| more,
but less than
$100,000,000;
| 17 |
| (vi) $22,500, if admitted assets are $100,000,000 | 18 |
| or
more, but less
than $500,000,000;
| 19 |
| (vii) $30,000, if admitted assets are $500,000,000 | 20 |
| or
more, but less
than $1,000,000,000;
| 21 |
| (viii) $37,500, if admitted assets are | 22 |
| $1,000,000,000
or more.
| 23 |
| (c) The sum of financial regulation fees charged to the | 24 |
| domestic
companies of the same affiliated group shall not | 25 |
| exceed $250,000
in the aggregate in any single year and | 26 |
| shall be billed by the Director to
the member company | 27 |
| designated by the
group.
| 28 |
| (7) The Director shall charge and collect an annual | 29 |
| financial regulation
fee from every foreign or alien company, | 30 |
| except fraternal benefit
societies, for the
examination and | 31 |
| analysis of its financial condition and to fund the internal
| 32 |
| costs and expenses of the Interstate Insurance Receivership | 33 |
| Commission as may
be allocated to the State of Illinois and | 34 |
| companies doing an insurance business
in this State pursuant to | 35 |
| Article X of the Interstate Insurance Receivership
Compact.
The | 36 |
| fee shall be a fixed amount based upon Illinois direct premium |
|
|
|
HB4472 |
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LRB093 16344 SAS 41982 b |
|
| 1 |
| income
and nationwide reinsurance assumed premium income in | 2 |
| accordance with the
following schedule:
| 3 |
| (a) $150, if the premium is less than $500,000 and | 4 |
| there is
no
reinsurance assumed premium;
| 5 |
| (b) $750, if the premium is $500,000 or more, but less | 6 |
| than
$5,000,000
and there is no reinsurance assumed | 7 |
| premium;
or if the premium is less than $5,000,000 and the | 8 |
| reinsurance assumed
premium is less than $10,000,000;
| 9 |
| (c) $3,750, if the premium is less than $5,000,000 and | 10 |
| the
reinsurance
assumed premium is $10,000,000 or more;
| 11 |
| (d) $7,500, if the premium is $5,000,000 or more, but | 12 |
| less
than
$10,000,000;
| 13 |
| (e) $18,000, if the premium is $10,000,000 or more, but
| 14 |
| less than
$25,000,000;
| 15 |
| (f) $22,500, if the premium is $25,000,000 or more, but
| 16 |
| less than
$50,000,000;
| 17 |
| (g) $30,000, if the premium is $50,000,000 or more, but
| 18 |
| less than
$100,000,000;
| 19 |
| (h) $37,500, if the premium is $100,000,000 or more.
| 20 |
| The sum of financial regulation fees under this subsection | 21 |
| (7)
charged to the foreign or alien companies within the same | 22 |
| affiliated group
shall not exceed $250,000 in the aggregate in | 23 |
| any single year
and shall be
billed by the Director to the | 24 |
| member company designated by the group.
| 25 |
| (8) Beginning January 1, 1992, the financial regulation | 26 |
| fees imposed
under subsections (6) and (7)
of this Section | 27 |
| shall be paid by each company or domestic affiliated group
| 28 |
| annually. After January
1, 1994, the fee shall be billed by | 29 |
| Department invoice
based upon the company's
premium income or | 30 |
| admitted assets as shown in its annual statement for the
| 31 |
| preceding calendar year. The invoice is due upon
receipt and | 32 |
| must be paid no later than June 30 of each calendar year. All
| 33 |
| financial
regulation fees collected by the Department shall be | 34 |
| paid to the Insurance
Financial Regulation Fund. The Department | 35 |
| may not collect financial
examiner per diem charges from | 36 |
| companies subject to subsections (6) and (7)
of this Section |
|
|
|
HB4472 |
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LRB093 16344 SAS 41982 b |
|
| 1 |
| undergoing financial examination
after June 30, 1992.
| 2 |
| (9) In addition to the financial regulation fee required by | 3 |
| this
Section, a company undergoing any financial examination | 4 |
| authorized by law
shall pay the following costs and expenses | 5 |
| incurred by the Department:
electronic data processing costs, | 6 |
| the expenses authorized under Section 131.21
and
subsection (d) | 7 |
| of Section 132.4 of this Code, and lodging and travel expenses.
| 8 |
| Electronic data processing costs incurred by the | 9 |
| Department in the
performance of any examination shall be | 10 |
| billed directly to the company
undergoing examination for | 11 |
| payment to the Statistical Services Revolving
Fund. Except for | 12 |
| direct reimbursements authorized by the Director or
direct | 13 |
| payments made under Section 131.21 or subsection (d) of Section
| 14 |
| 132.4 of this Code, all financial regulation fees and all | 15 |
| financial
examination charges collected by the Department | 16 |
| shall be paid to the
Insurance Financial Regulation Fund.
| 17 |
| All lodging and travel expenses shall be in accordance with | 18 |
| applicable
travel regulations published by the Department of | 19 |
| Central Management
Services and approved by the Governor's | 20 |
| Travel Control Board, except that
out-of-state lodging and | 21 |
| travel expenses related to examinations authorized
under | 22 |
| Sections 132.1 through 132.7 shall be in accordance
with travel | 23 |
| rates prescribed
under paragraph 301-7.2 of the Federal Travel | 24 |
| Regulations, 41 C.F.R. 301-7.2,
for reimbursement of | 25 |
| subsistence expenses incurred during official travel.
All | 26 |
| lodging and travel expenses may be
reimbursed directly upon the | 27 |
| authorization of the Director.
| 28 |
| In the case of an organization or person not subject to the | 29 |
| financial
regulation fee, the expenses incurred in any | 30 |
| financial examination authorized
by law shall be paid by the | 31 |
| organization or person being examined. The charge
shall be | 32 |
| reasonably related to the cost of the examination including, | 33 |
| but not
limited to, compensation of examiners and other costs | 34 |
| described in this
subsection.
| 35 |
| (10) Any company, person, or entity failing to make any | 36 |
| payment of $150
or more as required under this Section shall be |
|
|
|
HB4472 |
- 15 - |
LRB093 16344 SAS 41982 b |
|
| 1 |
| subject to the penalty and
interest provisions provided for in | 2 |
| subsections (4) and (7)
of Section 412.
| 3 |
| (11) Unless otherwise specified, all of the fees collected | 4 |
| under this
Section shall be paid into the Insurance Financial | 5 |
| Regulation Fund.
| 6 |
| (12) For purposes of this Section:
| 7 |
| (a) "Domestic company" means a company as defined in | 8 |
| Section 2 of this
Code which is incorporated or organized | 9 |
| under the laws of this State, and in
addition includes a | 10 |
| not-for-profit corporation authorized under the Dental
| 11 |
| Service Plan Act or the Voluntary Health
Services Plans | 12 |
| Act, a health maintenance organization, and a
limited
| 13 |
| health service organization.
| 14 |
| (b) "Foreign company" means a company as defined in | 15 |
| Section 2 of this
Code which is incorporated or organized | 16 |
| under the laws of any state of the
United States other than | 17 |
| this State and in addition includes a health
maintenance | 18 |
| organization and a limited health service organization | 19 |
| which is
incorporated or organized under the laws
of any | 20 |
| state of the United States other than this State.
| 21 |
| (c) "Alien company" means a company as defined in | 22 |
| Section 2 of this Code
which is incorporated or organized | 23 |
| under the laws of any country other than
the United States.
| 24 |
| (d) "Fraternal benefit society" means a corporation, | 25 |
| society, order,
lodge or voluntary association as defined | 26 |
| in Section 282.1 of this
Code.
| 27 |
| (e) "Mutual benefit association" means a company, | 28 |
| association or
corporation authorized by the Director to do | 29 |
| business in this State under
the provisions of Article | 30 |
| XVIII of this Code.
| 31 |
| (f) "Burial society" means a person, firm, | 32 |
| corporation, society or
association of individuals | 33 |
| authorized by the Director to do business in
this State | 34 |
| under the provisions of Article XIX of this Code.
| 35 |
| (g) "Farm mutual" means a district, county and township | 36 |
| mutual insurance
company authorized by the Director to do |
|
|
|
HB4472 |
- 16 - |
LRB093 16344 SAS 41982 b |
|
| 1 |
| business in this State under the
provisions of the Farm | 2 |
| Mutual Insurance Company Act of 1986.
| 3 |
| (Source: P.A. 93-32, eff. 7-1-03.)
| 4 |
| Section 99. Effective date. This Act takes effect upon | 5 |
| becoming law.
|
|