Full Text of HB6863 93rd General Assembly
HB6863 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB6863
Introduced 02/09/04, by Frank J. Mautino SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/143 |
from Ch. 73, par. 755 |
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Amends the Illinois Insurance Code. Provides that companies must file forms electronically through the System for Electronic Rate and Form Filing (SERFF). Provides that all examinations, investigations, and hearings provided for by this Code may be conducted either by the Director personally or by one or more of the actuaries, technical advisors, deputies, supervisors, or examiners employed or retained by the Department and designated by the Director for such purpose. Provides that the Department may retain independent actuaries, independent certified public accountants, or qualified examiners of insurance companies or any combination of the foregoing. Effective immediately.
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A BILL FOR
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HB6863 |
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LRB093 16595 SAS 42244 b |
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| AN ACT concerning 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 Section 143 as follows:
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| (215 ILCS 5/143) (from Ch. 73, par. 755)
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| Sec. 143. Policy forms.
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| (1) Life, accident and health. No company
transacting the | 9 |
| kind or kinds of business enumerated in Classes 1 (a), 1
(b) | 10 |
| and 2 (a) of Section 4 shall issue or deliver in this State a | 11 |
| policy
or certificate of insurance or evidence of coverage, | 12 |
| attach an
endorsement or rider thereto,
incorporate by | 13 |
| reference bylaws or other matter therein or use an
application | 14 |
| blank in this State until the form and content of such
policy, | 15 |
| certificate, evidence of coverage, endorsement, rider, bylaw | 16 |
| or
other matter
incorporated by reference or application blank | 17 |
| has been filed electronically
with the Director, either through | 18 |
| the System for Electronic Rate and Form Filing (SERFF) or as | 19 |
| otherwise prescribed by the Director,
and
approved by the | 20 |
| Director , and the appropriate filing fee under Section 408
has | 21 |
| been paid, except that any such endorsement or rider
that | 22 |
| unilaterally reduces benefits and is to be attached to a
policy | 23 |
| subsequent to the date the policy is
issued must be filed with, | 24 |
| reviewed, and formally approved by the
Director prior to the | 25 |
| date it is attached to a policy issued or
delivered in this | 26 |
| State. It shall be the duty of the Director to
withhold | 27 |
| approval of any such policy, certificate, endorsement, rider,
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| bylaw or other matter incorporated by reference or application | 29 |
| blank
filed with him if it contains provisions which encourage
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| misrepresentation or are unjust, unfair, inequitable, | 31 |
| ambiguous,
misleading, inconsistent, deceptive, contrary to | 32 |
| law or to the public
policy of this State, or contains |
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HB6863 |
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LRB093 16595 SAS 42244 b |
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| exceptions and conditions that
unreasonably or deceptively | 2 |
| affect the risk purported to be assumed in
the general coverage | 3 |
| of the policy. In all cases the Director shall
approve or | 4 |
| disapprove any such form within 60 days after submission
unless | 5 |
| the Director extends by not more than an additional 30 days the
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| period within which he shall approve or disapprove any such | 7 |
| form by
giving written notice to the insurer of such extension | 8 |
| before expiration
of the initial 60 days period. The Director | 9 |
| shall withdraw his approval
of a policy, certificate, evidence | 10 |
| of coverage, endorsement, rider,
bylaw, or other matter | 11 |
| incorporated
by reference or application blank if he | 12 |
| subsequently determines that such
policy, certificate, | 13 |
| evidence of coverage, endorsement, rider, bylaw,
other matter, | 14 |
| or application
blank is misrepresentative, unjust, unfair, | 15 |
| inequitable, ambiguous, misleading,
inconsistent, deceptive, | 16 |
| contrary to law or public policy of this State,
or contains | 17 |
| exceptions or conditions which unreasonably or deceptively | 18 |
| affect
the risk purported to be assumed in the general coverage | 19 |
| of the policy or
evidence of coverage.
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| If a previously approved policy, certificate, evidence of
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| coverage, endorsement, rider, bylaw
or other matter | 22 |
| incorporated by reference or application blank is withdrawn
for | 23 |
| use, the Director shall serve upon the company an order of | 24 |
| withdrawal
of use, either personally or by mail, and if by | 25 |
| mail, such service shall
be completed if such notice be | 26 |
| deposited in the post office, postage prepaid,
addressed to the | 27 |
| company's last known address specified in the records
of the | 28 |
| Department of Insurance. The order of withdrawal of use shall | 29 |
| take
effect 30 days from the date of mailing but shall be | 30 |
| stayed if within the
30-day period a written request for | 31 |
| hearing is filed with the Director.
Such hearing shall be held | 32 |
| at such time and place as designated in the order
given by the | 33 |
| Director. The hearing may be held either in the City of | 34 |
| Springfield,
the City of Chicago or in the county where the | 35 |
| principal business address
of the company is located.
The | 36 |
| action of the Director in
disapproving or withdrawing such form |
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HB6863 |
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LRB093 16595 SAS 42244 b |
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| shall be subject to judicial review under
the
Administrative | 2 |
| Review Law.
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| All examinations, investigations, and hearings provided | 4 |
| for by this Code may
be conducted either by the Director | 5 |
| personally or by one or more of the
actuaries, technical | 6 |
| advisors, deputies, supervisors, or examiners
employed or | 7 |
| retained by the Department and designated by the Director
for | 8 |
| such purpose. When necessary to supplement its examination
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| procedures, the Department may retain independent actuaries | 10 |
| deemed
competent by the Director, independent certified public | 11 |
| accountants, or
qualified examiners of insurance companies | 12 |
| deemed competent by the
Director, or any combination of the | 13 |
| foregoing, the cost of which shall
be borne by the company or | 14 |
| person being examined.
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| This subsection shall not apply to riders or endorsements | 16 |
| issued or
made at the request of the individual policyholder | 17 |
| relating to the
manner of distribution of benefits or to the | 18 |
| reservation of rights and
benefits under his life insurance | 19 |
| policy.
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| (2) Casualty, fire, and marine. The Director shall require | 21 |
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filing of all policy forms issued or delivered by any | 22 |
| company transacting
the kind or
kinds of business enumerated in | 23 |
| Classes 2 (except Class 2 (a)) and 3 of
Section 4. In addition, | 24 |
| he may require the filing of any
generally used riders, | 25 |
| endorsements, certificates, application blanks, and
other | 26 |
| matter
incorporated by reference in any such policy or contract | 27 |
| of insurance
along with the appropriate filing fee under | 28 |
| Section 408.
Companies that are members of an organization, | 29 |
| bureau, or association may
have the same filed for them by the | 30 |
| organization, bureau, or association. If
the Director shall | 31 |
| find from an examination of any such policy form,
rider, | 32 |
| endorsement, certificate, application blank, or other matter
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| incorporated by
reference in any such policy so filed that it | 34 |
| (i) violates any provision of
this Code, (ii) contains | 35 |
| inconsistent, ambiguous, or misleading clauses, or
(iii) | 36 |
| contains exceptions and conditions that will unreasonably or |
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HB6863 |
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LRB093 16595 SAS 42244 b |
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| deceptively
affect the risks that are purported to be assumed | 2 |
| by the policy, he
shall order the company or companies issuing | 3 |
| these forms to discontinue
their use. Nothing in this | 4 |
| subsection shall require a company
transacting the kind or | 5 |
| kinds of business enumerated in Classes 2
(except Class 2 (a)) | 6 |
| and 3 of Section 4 to obtain approval of these forms
before | 7 |
| they are issued nor in any way affect the legality of any
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| policy that has been issued and found to be in conflict with | 9 |
| this
subsection, but such policies shall be subject to the | 10 |
| provisions of
Section 442.
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| (3) This Section shall not apply (i) to surety contracts or | 12 |
| fidelity
bonds, (ii) to policies issued to an industrial | 13 |
| insured as defined in Section
121-2.08 except for workers' | 14 |
| compensation policies, nor (iii) to riders
or
endorsements | 15 |
| prepared to meet special, unusual,
peculiar, or extraordinary | 16 |
| conditions applying to an individual risk.
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| (Source: P.A. 90-794, eff. 8-14-98.)
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| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law.
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