Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0762 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0075
2	1		SB0762 EnrolledLRB103 03216 CPF 48222 b SB0762 Enrolled LRB103 03216 CPF 48222 b
3	2		SB0762 Enrolled LRB103 03216 CPF 48222 b
4		-	AN ACT concerning regulation.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Illinois Insurance Code is amended by
8		-	changing Sections 408 and 534.4 and by adding Article XLVII as
9		-	follows:
10		-	(215 ILCS 5/408) (from Ch. 73, par. 1020)
11		-	Sec. 408. Fees and charges.
12		-	(1) The Director shall charge, collect and give proper
13		-	acquittances for the payment of the following fees and
14		-	charges:
15		-	(a) For filing all documents submitted for the
16		-	incorporation or organization or certification of a
17		-	domestic company, except for a fraternal benefit society,
18		-	$2,000.
19		-	(b) For filing all documents submitted for the
20		-	incorporation or organization of a fraternal benefit
21		-	society, $500.
22		-	(c) For filing amendments to articles of incorporation
23		-	and amendments to declaration of organization, except for
24		-	a fraternal benefit society, a mutual benefit association,
25		-	a burial society or a farm mutual, $200.
26		-	(d) For filing amendments to articles of incorporation
	3	+	1 AN ACT concerning regulation.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Illinois Insurance Code is amended by
	7	+	5 changing Sections 408 and 534.4 and by adding Article XLVII as
	8	+	6 follows:
	9	+	7 (215 ILCS 5/408) (from Ch. 73, par. 1020)
	10	+	8 Sec. 408. Fees and charges.
	11	+	9 (1) The Director shall charge, collect and give proper
	12	+	10 acquittances for the payment of the following fees and
	13	+	11 charges:
	14	+	12 (a) For filing all documents submitted for the
	15	+	13 incorporation or organization or certification of a
	16	+	14 domestic company, except for a fraternal benefit society,
	17	+	15 $2,000.
	18	+	16 (b) For filing all documents submitted for the
	19	+	17 incorporation or organization of a fraternal benefit
	20	+	18 society, $500.
	21	+	19 (c) For filing amendments to articles of incorporation
	22	+	20 and amendments to declaration of organization, except for
	23	+	21 a fraternal benefit society, a mutual benefit association,
	24	+	22 a burial society or a farm mutual, $200.
	25	+	23 (d) For filing amendments to articles of incorporation
27	26
28	27
29	28
30	29		SB0762 Enrolled LRB103 03216 CPF 48222 b
31	30
32	31
33		-	of a fraternal benefit society, a mutual benefit
34		-	association or a burial society, $100.
35		-	(e) For filing amendments to articles of incorporation
36		-	of a farm mutual, $50.
37		-	(f) For filing bylaws or amendments thereto, $50.
38		-	(g) For filing agreement of merger or consolidation:
39		-	(i) for a domestic company, except for a fraternal
40		-	benefit society, a mutual benefit association, a
41		-	burial society, or a farm mutual, $2,000.
42		-	(ii) for a foreign or alien company, except for a
43		-	fraternal benefit society, $600.
44		-	(iii) for a fraternal benefit society, a mutual
45		-	benefit association, a burial society, or a farm
46		-	mutual, $200.
47		-	(h) For filing agreements of reinsurance by a domestic
48		-	company, $200.
49		-	(i) For filing all documents submitted by a foreign or
50		-	alien company to be admitted to transact business or
51		-	accredited as a reinsurer in this State, except for a
52		-	fraternal benefit society, $5,000.
53		-	(j) For filing all documents submitted by a foreign or
54		-	alien fraternal benefit society to be admitted to transact
55		-	business in this State, $500.
56		-	(k) For filing declaration of withdrawal of a foreign
57		-	or alien company, $50.
58		-	(l) For filing annual statement by a domestic company,
	32	+	SB0762 Enrolled- 2 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 2 - LRB103 03216 CPF 48222 b
	33	+	SB0762 Enrolled - 2 - LRB103 03216 CPF 48222 b
	34	+	1 of a fraternal benefit society, a mutual benefit
	35	+	2 association or a burial society, $100.
	36	+	3 (e) For filing amendments to articles of incorporation
	37	+	4 of a farm mutual, $50.
	38	+	5 (f) For filing bylaws or amendments thereto, $50.
	39	+	6 (g) For filing agreement of merger or consolidation:
	40	+	7 (i) for a domestic company, except for a fraternal
	41	+	8 benefit society, a mutual benefit association, a
	42	+	9 burial society, or a farm mutual, $2,000.
	43	+	10 (ii) for a foreign or alien company, except for a
	44	+	11 fraternal benefit society, $600.
	45	+	12 (iii) for a fraternal benefit society, a mutual
	46	+	13 benefit association, a burial society, or a farm
	47	+	14 mutual, $200.
	48	+	15 (h) For filing agreements of reinsurance by a domestic
	49	+	16 company, $200.
	50	+	17 (i) For filing all documents submitted by a foreign or
	51	+	18 alien company to be admitted to transact business or
	52	+	19 accredited as a reinsurer in this State, except for a
	53	+	20 fraternal benefit society, $5,000.
	54	+	21 (j) For filing all documents submitted by a foreign or
	55	+	22 alien fraternal benefit society to be admitted to transact
	56	+	23 business in this State, $500.
	57	+	24 (k) For filing declaration of withdrawal of a foreign
	58	+	25 or alien company, $50.
	59	+	26 (l) For filing annual statement by a domestic company,
59	60
60	61
61		-	except a fraternal benefit society, a mutual benefit
62		-	association, a burial society, or a farm mutual, $200.
63		-	(m) For filing annual statement by a domestic
64		-	fraternal benefit society, $100.
65		-	(n) For filing annual statement by a farm mutual, a
66		-	mutual benefit association, or a burial society, $50.
67		-	(o) For issuing a certificate of authority or renewal
68		-	thereof except to a foreign fraternal benefit society,
69		-	$400.
70		-	(p) For issuing a certificate of authority or renewal
71		-	thereof to a foreign fraternal benefit society, $200.
72		-	(q) For issuing an amended certificate of authority,
73		-	$50.
74		-	(r) For each certified copy of certificate of
75		-	authority, $20.
76		-	(s) For each certificate of deposit, or valuation, or
77		-	compliance or surety certificate, $20.
78		-	(t) For copies of papers or records per page, $1.
79		-	(u) For each certification to copies of papers or
80		-	records, $10.
81		-	(v) For multiple copies of documents or certificates
82		-	listed in subparagraphs (r), (s), and (u) of paragraph (1)
83		-	of this Section, $10 for the first copy of a certificate of
84		-	any type and $5 for each additional copy of the same
85		-	certificate requested at the same time, unless, pursuant
86		-	to paragraph (2) of this Section, the Director finds these
87	62
88	63
89		-	additional fees excessive.
90		-	(w) For issuing a permit to sell shares or increase
91		-	paid-up capital:
92		-	(i) in connection with a public stock offering,
93		-	$300;
94		-	(ii) in any other case, $100.
95		-	(x) For issuing any other certificate required or
96		-	permissible under the law, $50.
97		-	(y) For filing a plan of exchange of the stock of a
98		-	domestic stock insurance company, a plan of
99		-	demutualization of a domestic mutual company, or a plan of
100		-	reorganization under Article XII, $2,000.
101		-	(z) For filing a statement of acquisition of a
102		-	domestic company as defined in Section 131.4 of this Code,
103		-	$2,000.
104		-	(aa) For filing an agreement to purchase the business
105		-	of an organization authorized under the Dental Service
106		-	Plan Act or the Voluntary Health Services Plans Act or of a
107		-	health maintenance organization or a limited health
108		-	service organization, $2,000.
109		-	(bb) For filing a statement of acquisition of a
110		-	foreign or alien insurance company as defined in Section
111		-	131.12a of this Code, $1,000.
112		-	(cc) For filing a registration statement as required
113		-	in Sections 131.13 and 131.14, the notification as
114		-	required by Sections 131.16, 131.20a, or 141.4, or an
	64	+
	65	+	SB0762 Enrolled - 2 - LRB103 03216 CPF 48222 b
115	66
116	67
117		-	agreement or transaction required by Sections 124.2(2),
118		-	141, 141a, or 141.1, $200.
119		-	(dd) For filing an application for licensing of:
120		-	(i) a religious or charitable risk pooling trust
121		-	or a workers' compensation pool, $1,000;
122		-	(ii) a workers' compensation service company,
123		-	$500;
124		-	(iii) a self-insured automobile fleet, $200; or
125		-	(iv) a renewal of or amendment of any license
126		-	issued pursuant to (i), (ii), or (iii) above, $100.
127		-	(ee) For filing articles of incorporation for a
128		-	syndicate to engage in the business of insurance through
129		-	the Illinois Insurance Exchange, $2,000.
130		-	(ff) For filing amended articles of incorporation for
131		-	a syndicate engaged in the business of insurance through
132		-	the Illinois Insurance Exchange, $100.
133		-	(gg) For filing articles of incorporation for a
134		-	limited syndicate to join with other subscribers or
135		-	limited syndicates to do business through the Illinois
136		-	Insurance Exchange, $1,000.
137		-	(hh) For filing amended articles of incorporation for
138		-	a limited syndicate to do business through the Illinois
139		-	Insurance Exchange, $100.
140		-	(ii) For a permit to solicit subscriptions to a
141		-	syndicate or limited syndicate, $100.
142		-	(jj) For the filing of each form as required in
	68	+	SB0762 Enrolled- 3 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 3 - LRB103 03216 CPF 48222 b
	69	+	SB0762 Enrolled - 3 - LRB103 03216 CPF 48222 b
	70	+	1 except a fraternal benefit society, a mutual benefit
	71	+	2 association, a burial society, or a farm mutual, $200.
	72	+	3 (m) For filing annual statement by a domestic
	73	+	4 fraternal benefit society, $100.
	74	+	5 (n) For filing annual statement by a farm mutual, a
	75	+	6 mutual benefit association, or a burial society, $50.
	76	+	7 (o) For issuing a certificate of authority or renewal
	77	+	8 thereof except to a foreign fraternal benefit society,
	78	+	9 $400.
	79	+	10 (p) For issuing a certificate of authority or renewal
	80	+	11 thereof to a foreign fraternal benefit society, $200.
	81	+	12 (q) For issuing an amended certificate of authority,
	82	+	13 $50.
	83	+	14 (r) For each certified copy of certificate of
	84	+	15 authority, $20.
	85	+	16 (s) For each certificate of deposit, or valuation, or
	86	+	17 compliance or surety certificate, $20.
	87	+	18 (t) For copies of papers or records per page, $1.
	88	+	19 (u) For each certification to copies of papers or
	89	+	20 records, $10.
	90	+	21 (v) For multiple copies of documents or certificates
	91	+	22 listed in subparagraphs (r), (s), and (u) of paragraph (1)
	92	+	23 of this Section, $10 for the first copy of a certificate of
	93	+	24 any type and $5 for each additional copy of the same
	94	+	25 certificate requested at the same time, unless, pursuant
	95	+	26 to paragraph (2) of this Section, the Director finds these
143	96
144	97
145		-	Section 143 of this Code, $50 per form. Informational and
146		-	advertising filings shall be $25 per filing. The fee for
147		-	advisory and rating organizations shall be $200 per form.
148		-	(i) For the purposes of the form filing fee,
149		-	filings made on insert page basis will be considered
150		-	one form at the time of its original submission.
151		-	Changes made to a form subsequent to its approval
152		-	shall be considered a new filing.
153		-	(ii) Only one fee shall be charged for a form,
154		-	regardless of the number of other forms or policies
155		-	with which it will be used.
156		-	(iii) Fees charged for a policy filed as it will be
157		-	issued regardless of the number of forms comprising
158		-	that policy shall not exceed $1,500. For advisory or
159		-	rating organizations, fees charged for a policy filed
160		-	as it will be issued regardless of the number of forms
161		-	comprising that policy shall not exceed $2,500.
162		-	(iv) The Director may by rule exempt forms from
163		-	such fees.
164		-	(kk) For filing an application for licensing of a
165		-	reinsurance intermediary, $500.
166		-	(ll) For filing an application for renewal of a
167		-	license of a reinsurance intermediary, $200.
168		-	(mm) For filing a plan of division of a domestic stock
169		-	company under Article IIB, $10,000.
170		-	(nn) For filing all documents submitted by a foreign
171	98
172	99
173		-	or alien company to be a certified reinsurer in this
174		-	State, except for a fraternal benefit society, $1,000.
175		-	(oo) For filing a renewal by a foreign or alien
176		-	company to be a certified reinsurer in this State, except
177		-	for a fraternal benefit society, $400.
178		-	(pp) For filing all documents submitted by a reinsurer
179		-	domiciled in a reciprocal jurisdiction, $1,000.
180		-	(qq) For filing a renewal by a reinsurer domiciled in
181		-	a reciprocal jurisdiction, $400.
182		-	(rr) For registering a captive management company or
183		-	renewal thereof, $50.
184		-	(ss) For filing an insurance business transfer plan
185		-	under Article XLVII, $25,000.
186		-	(2) When printed copies or numerous copies of the same
187		-	paper or records are furnished or certified, the Director may
188		-	reduce such fees for copies if he finds them excessive. He may,
189		-	when he considers it in the public interest, furnish without
190		-	charge to state insurance departments and persons other than
191		-	companies, copies or certified copies of reports of
192		-	examinations and of other papers and records.
193		-	(3) The expenses incurred in any performance examination
194		-	authorized by law shall be paid by the company or person being
195		-	examined. The charge shall be reasonably related to the cost
196		-	of the examination including but not limited to compensation
197		-	of examiners, electronic data processing costs, supervision
198		-	and preparation of an examination report and lodging and
	100	+
	101	+	SB0762 Enrolled - 3 - LRB103 03216 CPF 48222 b
199	102
200	103
201		-	travel expenses. All lodging and travel expenses shall be in
202		-	accord with the applicable travel regulations as published by
203		-	the Department of Central Management Services and approved by
204		-	the Governor's Travel Control Board, except that out-of-state
205		-	lodging and travel expenses related to examinations authorized
206		-	under Section 132 shall be in accordance with travel rates
207		-	prescribed under paragraph 301-7.2 of the Federal Travel
208		-	Regulations, 41 C.F.R. 301-7.2, for reimbursement of
209		-	subsistence expenses incurred during official travel. All
210		-	lodging and travel expenses may be reimbursed directly upon
211		-	authorization of the Director. With the exception of the
212		-	direct reimbursements authorized by the Director, all
213		-	performance examination charges collected by the Department
214		-	shall be paid to the Insurance Producer Administration Fund,
215		-	however, the electronic data processing costs incurred by the
216		-	Department in the performance of any examination shall be
217		-	billed directly to the company being examined for payment to
218		-	the Technology Management Revolving Fund.
219		-	(4) At the time of any service of process on the Director
220		-	as attorney for such service, the Director shall charge and
221		-	collect the sum of $40, which may be recovered as taxable costs
222		-	by the party to the suit or action causing such service to be
223		-	made if he prevails in such suit or action.
224		-	(5) (a) The costs incurred by the Department of Insurance
225		-	in conducting any hearing authorized by law shall be assessed
226		-	against the parties to the hearing in such proportion as the
	104	+	SB0762 Enrolled- 4 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 4 - LRB103 03216 CPF 48222 b
	105	+	SB0762 Enrolled - 4 - LRB103 03216 CPF 48222 b
	106	+	1 additional fees excessive.
	107	+	2 (w) For issuing a permit to sell shares or increase
	108	+	3 paid-up capital:
	109	+	4 (i) in connection with a public stock offering,
	110	+	5 $300;
	111	+	6 (ii) in any other case, $100.
	112	+	7 (x) For issuing any other certificate required or
	113	+	8 permissible under the law, $50.
	114	+	9 (y) For filing a plan of exchange of the stock of a
	115	+	10 domestic stock insurance company, a plan of
	116	+	11 demutualization of a domestic mutual company, or a plan of
	117	+	12 reorganization under Article XII, $2,000.
	118	+	13 (z) For filing a statement of acquisition of a
	119	+	14 domestic company as defined in Section 131.4 of this Code,
	120	+	15 $2,000.
	121	+	16 (aa) For filing an agreement to purchase the business
	122	+	17 of an organization authorized under the Dental Service
	123	+	18 Plan Act or the Voluntary Health Services Plans Act or of a
	124	+	19 health maintenance organization or a limited health
	125	+	20 service organization, $2,000.
	126	+	21 (bb) For filing a statement of acquisition of a
	127	+	22 foreign or alien insurance company as defined in Section
	128	+	23 131.12a of this Code, $1,000.
	129	+	24 (cc) For filing a registration statement as required
	130	+	25 in Sections 131.13 and 131.14, the notification as
	131	+	26 required by Sections 131.16, 131.20a, or 141.4, or an
227	132
228	133
229		-	Director of Insurance may determine upon consideration of all
230		-	relevant circumstances including: (1) the nature of the
231		-	hearing; (2) whether the hearing was instigated by, or for the
232		-	benefit of a particular party or parties; (3) whether there is
233		-	a successful party on the merits of the proceeding; and (4) the
234		-	relative levels of participation by the parties.
235		-	(b) For purposes of this subsection (5) costs incurred
236		-	shall mean the hearing officer fees, court reporter fees, and
237		-	travel expenses of Department of Insurance officers and
238		-	employees; provided however, that costs incurred shall not
239		-	include hearing officer fees or court reporter fees unless the
240		-	Department has retained the services of independent
241		-	contractors or outside experts to perform such functions.
242		-	(c) The Director shall make the assessment of costs
243		-	incurred as part of the final order or decision arising out of
244		-	the proceeding; provided, however, that such order or decision
245		-	shall include findings and conclusions in support of the
246		-	assessment of costs. This subsection (5) shall not be
247		-	construed as permitting the payment of travel expenses unless
248		-	calculated in accordance with the applicable travel
249		-	regulations of the Department of Central Management Services,
250		-	as approved by the Governor's Travel Control Board. The
251		-	Director as part of such order or decision shall require all
252		-	assessments for hearing officer fees and court reporter fees,
253		-	if any, to be paid directly to the hearing officer or court
254		-	reporter by the party(s) assessed for such costs. The
255	134
256	135
257		-	assessments for travel expenses of Department officers and
258		-	employees shall be reimbursable to the Director of Insurance
259		-	for deposit to the fund out of which those expenses had been
260		-	paid.
261		-	(d) The provisions of this subsection (5) shall apply in
262		-	the case of any hearing conducted by the Director of Insurance
263		-	not otherwise specifically provided for by law.
264		-	(6) The Director shall charge and collect an annual
265		-	financial regulation fee from every domestic company for
266		-	examination and analysis of its financial condition and to
267		-	fund the internal costs and expenses of the Interstate
268		-	Insurance Receivership Commission as may be allocated to the
269		-	State of Illinois and companies doing an insurance business in
270		-	this State pursuant to Article X of the Interstate Insurance
271		-	Receivership Compact. The fee shall be the greater fixed
272		-	amount based upon the combination of nationwide direct premium
273		-	income and nationwide reinsurance assumed premium income or
274		-	upon admitted assets calculated under this subsection as
275		-	follows:
276		-	(a) Combination of nationwide direct premium income
277		-	and nationwide reinsurance assumed premium.
278		-	(i) $150, if the premium is less than $500,000 and
279		-	there is no reinsurance assumed premium;
280		-	(ii) $750, if the premium is $500,000 or more, but
281		-	less than $5,000,000 and there is no reinsurance
282		-	assumed premium; or if the premium is less than
	136	+
	137	+	SB0762 Enrolled - 4 - LRB103 03216 CPF 48222 b
283	138
284	139
285		-	$5,000,000 and the reinsurance assumed premium is less
286		-	than $10,000,000;
287		-	(iii) $3,750, if the premium is less than
288		-	$5,000,000 and the reinsurance assumed premium is
289		-	$10,000,000 or more;
290		-	(iv) $7,500, if the premium is $5,000,000 or more,
291		-	but less than $10,000,000;
292		-	(v) $18,000, if the premium is $10,000,000 or
293		-	more, but less than $25,000,000;
294		-	(vi) $22,500, if the premium is $25,000,000 or
295		-	more, but less than $50,000,000;
296		-	(vii) $30,000, if the premium is $50,000,000 or
297		-	more, but less than $100,000,000;
298		-	(viii) $37,500, if the premium is $100,000,000 or
299		-	more.
300		-	(b) Admitted assets.
301		-	(i) $150, if admitted assets are less than
302		-	$1,000,000;
303		-	(ii) $750, if admitted assets are $1,000,000 or
304		-	more, but less than $5,000,000;
305		-	(iii) $3,750, if admitted assets are $5,000,000 or
306		-	more, but less than $25,000,000;
307		-	(iv) $7,500, if admitted assets are $25,000,000 or
308		-	more, but less than $50,000,000;
309		-	(v) $18,000, if admitted assets are $50,000,000 or
310		-	more, but less than $100,000,000;
	140	+	SB0762 Enrolled- 5 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 5 - LRB103 03216 CPF 48222 b
	141	+	SB0762 Enrolled - 5 - LRB103 03216 CPF 48222 b
	142	+	1 agreement or transaction required by Sections 124.2(2),
	143	+	2 141, 141a, or 141.1, $200.
	144	+	3 (dd) For filing an application for licensing of:
	145	+	4 (i) a religious or charitable risk pooling trust
	146	+	5 or a workers' compensation pool, $1,000;
	147	+	6 (ii) a workers' compensation service company,
	148	+	7 $500;
	149	+	8 (iii) a self-insured automobile fleet, $200; or
	150	+	9 (iv) a renewal of or amendment of any license
	151	+	10 issued pursuant to (i), (ii), or (iii) above, $100.
	152	+	11 (ee) For filing articles of incorporation for a
	153	+	12 syndicate to engage in the business of insurance through
	154	+	13 the Illinois Insurance Exchange, $2,000.
	155	+	14 (ff) For filing amended articles of incorporation for
	156	+	15 a syndicate engaged in the business of insurance through
	157	+	16 the Illinois Insurance Exchange, $100.
	158	+	17 (gg) For filing articles of incorporation for a
	159	+	18 limited syndicate to join with other subscribers or
	160	+	19 limited syndicates to do business through the Illinois
	161	+	20 Insurance Exchange, $1,000.
	162	+	21 (hh) For filing amended articles of incorporation for
	163	+	22 a limited syndicate to do business through the Illinois
	164	+	23 Insurance Exchange, $100.
	165	+	24 (ii) For a permit to solicit subscriptions to a
	166	+	25 syndicate or limited syndicate, $100.
	167	+	26 (jj) For the filing of each form as required in
311	168
312	169
313		-	(vi) $22,500, if admitted assets are $100,000,000
314		-	or more, but less than $500,000,000;
315		-	(vii) $30,000, if admitted assets are $500,000,000
316		-	or more, but less than $1,000,000,000;
317		-	(viii) $37,500, if admitted assets are
318		-	$1,000,000,000 or more.
319		-	(c) The sum of financial regulation fees charged to
320		-	the domestic companies of the same affiliated group shall
321		-	not exceed $250,000 in the aggregate in any single year
322		-	and shall be billed by the Director to the member company
323		-	designated by the group.
324		-	(7) The Director shall charge and collect an annual
325		-	financial regulation fee from every foreign or alien company,
326		-	except fraternal benefit societies, for the examination and
327		-	analysis of its financial condition and to fund the internal
328		-	costs and expenses of the Interstate Insurance Receivership
329		-	Commission as may be allocated to the State of Illinois and
330		-	companies doing an insurance business in this State pursuant
331		-	to Article X of the Interstate Insurance Receivership Compact.
332		-	The fee shall be a fixed amount based upon Illinois direct
333		-	premium income and nationwide reinsurance assumed premium
334		-	income in accordance with the following schedule:
335		-	(a) $150, if the premium is less than $500,000 and
336		-	there is no reinsurance assumed premium;
337		-	(b) $750, if the premium is $500,000 or more, but less
338		-	than $5,000,000 and there is no reinsurance assumed
339	170
340	171
341		-	premium; or if the premium is less than $5,000,000 and the
342		-	reinsurance assumed premium is less than $10,000,000;
343		-	(c) $3,750, if the premium is less than $5,000,000 and
344		-	the reinsurance assumed premium is $10,000,000 or more;
345		-	(d) $7,500, if the premium is $5,000,000 or more, but
346		-	less than $10,000,000;
347		-	(e) $18,000, if the premium is $10,000,000 or more,
348		-	but less than $25,000,000;
349		-	(f) $22,500, if the premium is $25,000,000 or more,
350		-	but less than $50,000,000;
351		-	(g) $30,000, if the premium is $50,000,000 or more,
352		-	but less than $100,000,000;
353		-	(h) $37,500, if the premium is $100,000,000 or more.
354		-	The sum of financial regulation fees under this subsection
355		-	(7) charged to the foreign or alien companies within the same
356		-	affiliated group shall not exceed $250,000 in the aggregate in
357		-	any single year and shall be billed by the Director to the
358		-	member company designated by the group.
359		-	(8) Beginning January 1, 1992, the financial regulation
360		-	fees imposed under subsections (6) and (7) of this Section
361		-	shall be paid by each company or domestic affiliated group
362		-	annually. After January 1, 1994, the fee shall be billed by
363		-	Department invoice based upon the company's premium income or
364		-	admitted assets as shown in its annual statement for the
365		-	preceding calendar year. The invoice is due upon receipt and
366		-	must be paid no later than June 30 of each calendar year. All
	172	+
	173	+	SB0762 Enrolled - 5 - LRB103 03216 CPF 48222 b
367	174
368	175
369		-	financial regulation fees collected by the Department shall be
370		-	paid to the Insurance Financial Regulation Fund. The
371		-	Department may not collect financial examiner per diem charges
372		-	from companies subject to subsections (6) and (7) of this
373		-	Section undergoing financial examination after June 30, 1992.
374		-	(9) In addition to the financial regulation fee required
375		-	by this Section, a company undergoing any financial
376		-	examination authorized by law shall pay the following costs
377		-	and expenses incurred by the Department: electronic data
378		-	processing costs, the expenses authorized under Section 131.21
379		-	and subsection (d) of Section 132.4 of this Code, and lodging
380		-	and travel expenses.
381		-	Electronic data processing costs incurred by the
382		-	Department in the performance of any examination shall be
383		-	billed directly to the company undergoing examination for
384		-	payment to the Technology Management Revolving Fund. Except
385		-	for direct reimbursements authorized by the Director or direct
386		-	payments made under Section 131.21 or subsection (d) of
387		-	Section 132.4 of this Code, all financial regulation fees and
388		-	all financial examination charges collected by the Department
389		-	shall be paid to the Insurance Financial Regulation Fund.
390		-	All lodging and travel expenses shall be in accordance
391		-	with applicable travel regulations published by the Department
392		-	of Central Management Services and approved by the Governor's
393		-	Travel Control Board, except that out-of-state lodging and
394		-	travel expenses related to examinations authorized under
	176	+	SB0762 Enrolled- 6 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 6 - LRB103 03216 CPF 48222 b
	177	+	SB0762 Enrolled - 6 - LRB103 03216 CPF 48222 b
	178	+	1 Section 143 of this Code, $50 per form. Informational and
	179	+	2 advertising filings shall be $25 per filing. The fee for
	180	+	3 advisory and rating organizations shall be $200 per form.
	181	+	4 (i) For the purposes of the form filing fee,
	182	+	5 filings made on insert page basis will be considered
	183	+	6 one form at the time of its original submission.
	184	+	7 Changes made to a form subsequent to its approval
	185	+	8 shall be considered a new filing.
	186	+	9 (ii) Only one fee shall be charged for a form,
	187	+	10 regardless of the number of other forms or policies
	188	+	11 with which it will be used.
	189	+	12 (iii) Fees charged for a policy filed as it will be
	190	+	13 issued regardless of the number of forms comprising
	191	+	14 that policy shall not exceed $1,500. For advisory or
	192	+	15 rating organizations, fees charged for a policy filed
	193	+	16 as it will be issued regardless of the number of forms
	194	+	17 comprising that policy shall not exceed $2,500.
	195	+	18 (iv) The Director may by rule exempt forms from
	196	+	19 such fees.
	197	+	20 (kk) For filing an application for licensing of a
	198	+	21 reinsurance intermediary, $500.
	199	+	22 (ll) For filing an application for renewal of a
	200	+	23 license of a reinsurance intermediary, $200.
	201	+	24 (mm) For filing a plan of division of a domestic stock
	202	+	25 company under Article IIB, $10,000.
	203	+	26 (nn) For filing all documents submitted by a foreign
395	204
396	205
397		-	Sections 132.1 through 132.7 shall be in accordance with
398		-	travel rates prescribed under paragraph 301-7.2 of the Federal
399		-	Travel Regulations, 41 C.F.R. 301-7.2, for reimbursement of
400		-	subsistence expenses incurred during official travel. All
401		-	lodging and travel expenses may be reimbursed directly upon
402		-	the authorization of the Director.
403		-	In the case of an organization or person not subject to the
404		-	financial regulation fee, the expenses incurred in any
405		-	financial examination authorized by law shall be paid by the
406		-	organization or person being examined. The charge shall be
407		-	reasonably related to the cost of the examination including,
408		-	but not limited to, compensation of examiners and other costs
409		-	described in this subsection.
410		-	(10) Any company, person, or entity failing to make any
411		-	payment of $150 or more as required under this Section shall be
412		-	subject to the penalty and interest provisions provided for in
413		-	subsections (4) and (7) of Section 412.
414		-	(11) Unless otherwise specified, all of the fees collected
415		-	under this Section shall be paid into the Insurance Financial
416		-	Regulation Fund.
417		-	(12) For purposes of this Section:
418		-	(a) "Domestic company" means a company as defined in
419		-	Section 2 of this Code which is incorporated or organized
420		-	under the laws of this State, and in addition includes a
421		-	not-for-profit corporation authorized under the Dental
422		-	Service Plan Act or the Voluntary Health Services Plans
423	206
424	207
425		-	Act, a health maintenance organization, and a limited
426		-	health service organization.
427		-	(b) "Foreign company" means a company as defined in
428		-	Section 2 of this Code which is incorporated or organized
429		-	under the laws of any state of the United States other than
430		-	this State and in addition includes a health maintenance
431		-	organization and a limited health service organization
432		-	which is incorporated or organized under the laws of any
433		-	state of the United States other than this State.
434		-	(c) "Alien company" means a company as defined in
435		-	Section 2 of this Code which is incorporated or organized
436		-	under the laws of any country other than the United
437		-	States.
438		-	(d) "Fraternal benefit society" means a corporation,
439		-	society, order, lodge or voluntary association as defined
440		-	in Section 282.1 of this Code.
441		-	(e) "Mutual benefit association" means a company,
442		-	association or corporation authorized by the Director to
443		-	do business in this State under the provisions of Article
444		-	XVIII of this Code.
445		-	(f) "Burial society" means a person, firm,
446		-	corporation, society or association of individuals
447		-	authorized by the Director to do business in this State
448		-	under the provisions of Article XIX of this Code.
449		-	(g) "Farm mutual" means a district, county and
450		-	township mutual insurance company authorized by the
	208	+
	209	+	SB0762 Enrolled - 6 - LRB103 03216 CPF 48222 b
451	210
452	211
453		-	Director to do business in this State under the provisions
454		-	of the Farm Mutual Insurance Company Act of 1986.
455		-	(Source: P.A. 102-775, eff. 5-13-22.)
456		-	(215 ILCS 5/534.4) (from Ch. 73, par. 1065.84-4)
457		-	Sec. 534.4. "Insolvent company" means a company organized
458		-	as a stock company, mutual company, reciprocal or Lloyds (a)
459		-	which holds a certificate of authority to transact insurance
460		-	in this State either at the time the policy was issued or when
461		-	the insured event occurred, or any company which has assumed
462		-	or has been allocated such policy obligation through merger,
463		-	division, insurance business transfer, consolidation, or
464		-	reinsurance, whether or not such assuming company held a
465		-	certificate of authority to transact insurance in this State
466		-	at the time such policy was issued or when the insured event
467		-	occurred; and (b) against which a final Order of Liquidation
468		-	with a finding of insolvency to which there is no further right
469		-	of appeal has been entered by a court of competent
470		-	jurisdiction in the company's State of domicile after the
471		-	effective date of this Article.
472		-	(Source: P.A. 100-1190, eff. 4-5-19.)
473		-	(215 ILCS 5/Art. XLVII heading new)
474		-	ARTICLE XLVII. INSURANCE BUSINESS TRANSFERS
475		-	(215 ILCS 5/1701 new)
	212	+	SB0762 Enrolled- 7 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 7 - LRB103 03216 CPF 48222 b
	213	+	SB0762 Enrolled - 7 - LRB103 03216 CPF 48222 b
	214	+	1 or alien company to be a certified reinsurer in this
	215	+	2 State, except for a fraternal benefit society, $1,000.
	216	+	3 (oo) For filing a renewal by a foreign or alien
	217	+	4 company to be a certified reinsurer in this State, except
	218	+	5 for a fraternal benefit society, $400.
	219	+	6 (pp) For filing all documents submitted by a reinsurer
	220	+	7 domiciled in a reciprocal jurisdiction, $1,000.
	221	+	8 (qq) For filing a renewal by a reinsurer domiciled in
	222	+	9 a reciprocal jurisdiction, $400.
	223	+	10 (rr) For registering a captive management company or
	224	+	11 renewal thereof, $50.
	225	+	12 (ss) For filing an insurance business transfer plan
	226	+	13 under Article XLVII, $25,000.
	227	+	14 (2) When printed copies or numerous copies of the same
	228	+	15 paper or records are furnished or certified, the Director may
	229	+	16 reduce such fees for copies if he finds them excessive. He may,
	230	+	17 when he considers it in the public interest, furnish without
	231	+	18 charge to state insurance departments and persons other than
	232	+	19 companies, copies or certified copies of reports of
	233	+	20 examinations and of other papers and records.
	234	+	21 (3) The expenses incurred in any performance examination
	235	+	22 authorized by law shall be paid by the company or person being
	236	+	23 examined. The charge shall be reasonably related to the cost
	237	+	24 of the examination including but not limited to compensation
	238	+	25 of examiners, electronic data processing costs, supervision
	239	+	26 and preparation of an examination report and lodging and
476	240
477	241
478		-	Sec. 1701. Short title. This Article may be cited as the
479		-	Insurance Business Transfer Law.
480		-	(215 ILCS 5/1703 new)
481		-	Sec. 1703. Purpose and intent. The purpose of this Article
482		-	is to provide a mechanism for insurers to transfer or assume
483		-	blocks of insurance business in an efficient and
484		-	cost-effective manner that provides needed legal finality for
485		-	such transfers in order to provide for improved operational
486		-	and capital efficiency for insurance companies, while
487		-	protecting the interests of the policyholders, reinsurers, and
488		-	claimants of the subject business. This new process is
489		-	intended to stimulate the economy by attracting segments of
490		-	the insurance industry to this State, make this State an
491		-	attractive home jurisdiction for insurance companies,
492		-	encourage economic growth and increased investment in the
493		-	financial services sector, and increase the availability of
494		-	quality insurance industry jobs in this State. These purposes
495		-	are accomplished by providing a basis and procedures for the
496		-	transfer and statutory novation of policies from a
497		-	transferring insurer to an assuming insurer by way of an
498		-	insurance business transfer without the affirmative consent of
499		-	policyholders or reinsureds, but with consideration of their
500		-	interests. This Article establishes the requirements for
501		-	notice and disclosure and standards and procedures for the
502		-	approval of the transfer and novation by a court pursuant to an
503	242
504	243
505		-	insurance business transfer plan. This Article does not limit
506		-	or restrict other means of effecting a transfer or novation.
507		-	(215 ILCS 5/1705 new)
508		-	Sec. 1705. Definitions. As used in this Article:
509		-	"Affiliate" means a person that directly or indirectly,
510		-	through one or more intermediaries, controls, is controlled
511		-	by, or is under common control with the person specified.
512		-	"Applicant" means a transferring insurer or reinsurer
513		-	applying under this Article.
514		-	"Assuming insurer" means an insurer domiciled in Illinois
515		-	and authorized to transact the type of business described in
516		-	clause (c) of Class 1, clauses (b) through (l) of Class 2, or
517		-	Class 3 of Section 4 that seeks to assume policies from a
518		-	transferring insurer pursuant to this Article.
519		-	"Court" means the circuit court of Sangamon County or Cook
520		-	County.
521		-	"Department" means the Department of Insurance.
522		-	"Director" means the Director of Insurance.
523		-	"Implementation order" means an order issued by a court
524		-	under this Article.
525		-	"Insurance business transfer" means a transfer and
526		-	novation that, once approved pursuant to this Article,
527		-	transfers insurance obligations or risks, or both, of existing
528		-	or in-force contracts of insurance or reinsurance from a
529		-	transferring insurer to an assuming insurer, and effects a
	244	+
	245	+	SB0762 Enrolled - 7 - LRB103 03216 CPF 48222 b
530	246
531	247
532		-	novation of the transferred contracts of insurance or
533		-	reinsurance with the result that the assuming insurer becomes
534		-	directly liable to the policyholders of the transferring
535		-	insurer and the transferring insurer's insurance obligations
536		-	or risks, or both, under the contracts are extinguished.
537		-	"Insurance business transfer plan" means the plan
538		-	submitted to the Department to accomplish the transfer and
539		-	novation pursuant to an insurance business transfer, including
540		-	any associated transfer of assets and rights from or on behalf
541		-	of the transferring insurer to the assuming insurer. An
542		-	"insurance business transfer plan" is limited to the types of
543		-	insurance described in clause (c) of Class 1, clauses (b)
544		-	through (l) of Class 2, or Class 3 of Section 4.
545		-	"Independent expert" means the impartial person procured
546		-	to assist the Director and the court in connection with their
547		-	review of a proposed transaction. The independent expert
548		-	shall:
549		-	(i) have no current or past, direct or indirect,
550		-	financial interest in either the assuming insurer or
551		-	transferring insurer or any of their respective
552		-	affiliates,
553		-	(ii) have not been employed by or acted as an officer,
554		-	director, consultant, or other independent contractor for
555		-	either the assuming insurer or transferring insurer or any
556		-	of their respective affiliates within the past 12 months,
557		-	(iii) not currently be appointed by the Director to
	248	+	SB0762 Enrolled- 8 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 8 - LRB103 03216 CPF 48222 b
	249	+	SB0762 Enrolled - 8 - LRB103 03216 CPF 48222 b
	250	+	1 travel expenses. All lodging and travel expenses shall be in
	251	+	2 accord with the applicable travel regulations as published by
	252	+	3 the Department of Central Management Services and approved by
	253	+	4 the Governor's Travel Control Board, except that out-of-state
	254	+	5 lodging and travel expenses related to examinations authorized
	255	+	6 under Section 132 shall be in accordance with travel rates
	256	+	7 prescribed under paragraph 301-7.2 of the Federal Travel
	257	+	8 Regulations, 41 C.F.R. 301-7.2, for reimbursement of
	258	+	9 subsistence expenses incurred during official travel. All
	259	+	10 lodging and travel expenses may be reimbursed directly upon
	260	+	11 authorization of the Director. With the exception of the
	261	+	12 direct reimbursements authorized by the Director, all
	262	+	13 performance examination charges collected by the Department
	263	+	14 shall be paid to the Insurance Producer Administration Fund,
	264	+	15 however, the electronic data processing costs incurred by the
	265	+	16 Department in the performance of any examination shall be
	266	+	17 billed directly to the company being examined for payment to
	267	+	18 the Technology Management Revolving Fund.
	268	+	19 (4) At the time of any service of process on the Director
	269	+	20 as attorney for such service, the Director shall charge and
	270	+	21 collect the sum of $40, which may be recovered as taxable costs
	271	+	22 by the party to the suit or action causing such service to be
	272	+	23 made if he prevails in such suit or action.
	273	+	24 (5) (a) The costs incurred by the Department of Insurance
	274	+	25 in conducting any hearing authorized by law shall be assessed
	275	+	26 against the parties to the hearing in such proportion as the
558	276
559	277
560		-	assist in any capacity in any proceeding initiated under
561		-	Article XIII, and
562		-	(iv) receive no compensation in connection with the
563		-	transaction governed by this Article other than a fee
564		-	based on a fixed or hourly basis that is not contingent on
565		-	the approval or consummation of an insurance business
566		-	transfer.
567		-	"Insurer" means an insurance, surety, or reinsurance
568		-	company, corporation, partnership, association, society,
569		-	order, individual, or aggregation of individuals engaging in
570		-	or proposing or attempting to engage in insurance or surety
571		-	business, including the exchanging of reciprocal or
572		-	inter-insurance contracts between individuals, partnerships,
573		-	and corporations.
574		-	"Policy" means a policy, certificate of insurance, or a
575		-	contract of reinsurance pursuant to which an insurer agrees to
576		-	assume an obligation or risk, or both, of the policyholder or
577		-	to make payments on behalf of, or to, the policyholder or its
578		-	beneficiaries, and includes property and casualty insurance.
579		-	"Policy" does not include any policy, contract, or certificate
580		-	of life, accident, or health insurance, including those
581		-	defined in clause (a) or (b) of Class 1 or clause (a) of Class
582		-	2 of Section 4.
583		-	"Policyholder" means an insured or a reinsured under a
584		-	policy that is part of the subject business.
585		-	"State guaranty association" means the Illinois Insurance
586	278
587	279
588		-	Guaranty Fund, the Illinois Life and Health Guaranty
589		-	Association, or any similar organization in another state.
590		-	"Subject business" means the policy or policies that are
591		-	the subject of the insurance business transfer plan.
592		-	"Transfer and novation" means the transfer of insurance
593		-	obligations or risks, or both, of existing or in-force
594		-	policies from a transferring insurer to an assuming insurer
595		-	that is intended to effect a novation of the transferred
596		-	policies with the result that the assuming insurer becomes
597		-	directly liable to the policyholders of the transferring
598		-	insurer on the transferred policies and the transferring
599		-	insurer's obligations or risks, or both, under the transferred
600		-	policies are extinguished.
601		-	"Transferring insurer" means an insurer or reinsurer that
602		-	transfers and novates or seeks to transfer and novate
603		-	obligations or risks, or both, under one or more policies to an
604		-	assuming insurer pursuant to an insurance business transfer
605		-	plan.
606		-	(215 ILCS 5/1710 new)
607		-	Sec. 1710. Court authority. Notwithstanding any other
608		-	provision of law, a court may issue any order, process, or
609		-	judgment that is necessary or appropriate to carry out the
610		-	provisions of this Article. No provision of this Article shall
611		-	be construed to preclude a court from, on its own motion,
612		-	taking any action or making any determination necessary or
	280	+
	281	+	SB0762 Enrolled - 8 - LRB103 03216 CPF 48222 b
613	282
614	283
615		-	appropriate to enforce or implement court orders or rules or
616		-	to prevent an abuse of power.
617		-	(215 ILCS 5/1715 new)
618		-	Sec. 1715. Notice requirements.
619		-	(a) Whenever notice is required to be given by an
620		-	applicant under this Article, except as otherwise permitted by
621		-	a court or the Director, the applicant shall within 15 days
622		-	after the event triggering the requirement transmit the
623		-	notice:
624		-	(1) to the chief insurance regulator in each
625		-	jurisdiction:
626		-	(A) in which the applicant holds or has ever held a
627		-	certificate of authority; and
628		-	(B) in which policies that are part of the subject
629		-	business were issued or policyholders currently
630		-	reside;
631		-	(2) to the National Conference of Insurance Guaranty
632		-	Funds, the National Organization of Life and Health
633		-	Insurance Guaranty Associations, and all state insurance
634		-	guaranty associations for the states:
635		-	(A) in which the applicant holds or has ever held a
636		-	certificate of authority; and
637		-	(B) in which policies that are part of the subject
638		-	business were issued or policyholders currently
639		-	reside;
	284	+	SB0762 Enrolled- 9 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 9 - LRB103 03216 CPF 48222 b
	285	+	SB0762 Enrolled - 9 - LRB103 03216 CPF 48222 b
	286	+	1 Director of Insurance may determine upon consideration of all
	287	+	2 relevant circumstances including: (1) the nature of the
	288	+	3 hearing; (2) whether the hearing was instigated by, or for the
	289	+	4 benefit of a particular party or parties; (3) whether there is
	290	+	5 a successful party on the merits of the proceeding; and (4) the
	291	+	6 relative levels of participation by the parties.
	292	+	7 (b) For purposes of this subsection (5) costs incurred
	293	+	8 shall mean the hearing officer fees, court reporter fees, and
	294	+	9 travel expenses of Department of Insurance officers and
	295	+	10 employees; provided however, that costs incurred shall not
	296	+	11 include hearing officer fees or court reporter fees unless the
	297	+	12 Department has retained the services of independent
	298	+	13 contractors or outside experts to perform such functions.
	299	+	14 (c) The Director shall make the assessment of costs
	300	+	15 incurred as part of the final order or decision arising out of
	301	+	16 the proceeding; provided, however, that such order or decision
	302	+	17 shall include findings and conclusions in support of the
	303	+	18 assessment of costs. This subsection (5) shall not be
	304	+	19 construed as permitting the payment of travel expenses unless
	305	+	20 calculated in accordance with the applicable travel
	306	+	21 regulations of the Department of Central Management Services,
	307	+	22 as approved by the Governor's Travel Control Board. The
	308	+	23 Director as part of such order or decision shall require all
	309	+	24 assessments for hearing officer fees and court reporter fees,
	310	+	25 if any, to be paid directly to the hearing officer or court
	311	+	26 reporter by the party(s) assessed for such costs. The
640	312
641	313
642		-	(3) to reinsurers of the applicant pursuant to the
643		-	notice provisions of the reinsurance agreements applicable
644		-	to the policies that are part of the subject business or,
645		-	where an agreement has no provision for notice, by
646		-	internationally recognized delivery service;
647		-	(4) to all policyholders holding policies that are
648		-	part of the subject business at their last known address
649		-	as indicated by the records of the applicant or to the
650		-	address to which premium notices or other policy documents
651		-	are sent. A notice of transfer shall also be sent to the
652		-	transferring insurer's agents or brokers of record on the
653		-	subject business; and
654		-	(5) by publication in a newspaper of general
655		-	circulation in the state in which the applicant has its
656		-	principal place of business and in such other publications
657		-	that the Director requires.
658		-	(b) If notice is given in accordance with this Section,
659		-	any orders under this Article shall be conclusive with respect
660		-	to all intended recipients of the notice whether or not they
661		-	receive actual notice.
662		-	(c) If this Article requires that the applicant provide
663		-	notice but the Director has been named receiver of the
664		-	applicant pursuant to Article XIII, the Director shall provide
665		-	the required notice.
666		-	(d) Notice under this Section may take the form of
667		-	first-class mail, facsimile, or electronic notice. The court
668	314
669	315
670		-	may order that notice take a specific form.
671		-	(215 ILCS 5/1720 new)
672		-	Sec. 1720. Application procedure.
673		-	(a) Before filing an insurance business transfer plan, the
674		-	applicant shall file with the Department a notice of its
675		-	intention to file a plan and shall pay the required fee. Upon
676		-	request, the applicant and the assuming insurer shall provide
677		-	the Department with any information necessary for the
678		-	Department to procure an independent expert that meets the
679		-	requirements of this Article.
680		-	(b) An insurance business transfer plan shall be filed by
681		-	the applicant with the Director for his or her review and
682		-	approval. The plan may be supplemented by other information
683		-	deemed necessary by the Director, and shall contain the
684		-	following information or an explanation as to why the
685		-	following information is not included:
686		-	(1) the name, address, and telephone number of the
687		-	transferring insurer and the assuming insurer and their
688		-	respective direct and indirect controlling persons, if
689		-	any;
690		-	(2) a summary of the insurance business transfer plan;
691		-	(3) an identification and description of the subject
692		-	business;
693		-	(4) the most recent audited financial statements and
694		-	statutory annual and quarterly reports of the transferring
	316	+
	317	+	SB0762 Enrolled - 9 - LRB103 03216 CPF 48222 b
695	318
696	319
697		-	insurer and the assuming insurer filed with their
698		-	domiciliary regulator;
699		-	(5) the most recent actuarial report and opinion that
700		-	quantify the liabilities associated with the subject
701		-	business;
702		-	(6) pro forma financial statements showing the
703		-	projected statutory balance sheet, results of operation,
704		-	and cash flows of the assuming insurer for the 3 years
705		-	following the proposed transfer and novation;
706		-	(7) officers' certificates of the transferring insurer
707		-	and the assuming insurer attesting that each has obtained
708		-	all required internal approvals and authorizations
709		-	regarding the insurance business transfer plan and
710		-	completed all necessary and appropriate actions relating
711		-	thereto;
712		-	(8) a proposal for plan implementation and
713		-	administration, including the form of notice to be
714		-	provided under the insurance business transfer plan to any
715		-	policyholder whose policy is part of the subject business;
716		-	(9) a full description as to how notice under the
717		-	insurance business transfer plan shall be provided;
718		-	(10) a description of any reinsurance arrangements
719		-	that would pass to the assuming insurer under the
720		-	insurance business transfer plan;
721		-	(11) a description of any guarantees or additional
722		-	reinsurance that will cover the subject business following
	320	+	SB0762 Enrolled- 10 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 10 - LRB103 03216 CPF 48222 b
	321	+	SB0762 Enrolled - 10 - LRB103 03216 CPF 48222 b
	322	+	1 assessments for travel expenses of Department officers and
	323	+	2 employees shall be reimbursable to the Director of Insurance
	324	+	3 for deposit to the fund out of which those expenses had been
	325	+	4 paid.
	326	+	5 (d) The provisions of this subsection (5) shall apply in
	327	+	6 the case of any hearing conducted by the Director of Insurance
	328	+	7 not otherwise specifically provided for by law.
	329	+	8 (6) The Director shall charge and collect an annual
	330	+	9 financial regulation fee from every domestic company for
	331	+	10 examination and analysis of its financial condition and to
	332	+	11 fund the internal costs and expenses of the Interstate
	333	+	12 Insurance Receivership Commission as may be allocated to the
	334	+	13 State of Illinois and companies doing an insurance business in
	335	+	14 this State pursuant to Article X of the Interstate Insurance
	336	+	15 Receivership Compact. The fee shall be the greater fixed
	337	+	16 amount based upon the combination of nationwide direct premium
	338	+	17 income and nationwide reinsurance assumed premium income or
	339	+	18 upon admitted assets calculated under this subsection as
	340	+	19 follows:
	341	+	20 (a) Combination of nationwide direct premium income
	342	+	21 and nationwide reinsurance assumed premium.
	343	+	22 (i) $150, if the premium is less than $500,000 and
	344	+	23 there is no reinsurance assumed premium;
	345	+	24 (ii) $750, if the premium is $500,000 or more, but
	346	+	25 less than $5,000,000 and there is no reinsurance
	347	+	26 assumed premium; or if the premium is less than
723	348
724	349
725		-	the transfer and novation;
726		-	(12) a statement describing the assuming insurer's
727		-	proposed investment policies and any contemplated
728		-	third-party claims management and administration
729		-	arrangements;
730		-	(13) a description of how the transferring and
731		-	assuming insurers will be licensed for the purpose of
732		-	preserving state guaranty association coverage;
733		-	(14) a description of the financial implications of
734		-	the transaction including solvency, capital adequacy, cash
735		-	flow, reserves, asset quality, and risk-based capital;
736		-	(15) an analysis of the assuming insurer's corporate
737		-	governance structure to ensure that there is proper board
738		-	management oversight and expertise to manage the subject
739		-	business;
740		-	(16) an evaluation of the competency, experience, and
741		-	integrity of the persons who would control the operation
742		-	of an involved insurer;
743		-	(17) a certified statement that the transaction is not
744		-	being made for improper purposes, including fraud;
745		-	(18) evidence of approval or nonobjection of the
746		-	transfer from the chief insurance regulator of the state
747		-	of the transferring insurer's domicile; and
748		-	(19) a report from the independent expert that shall
749		-	provide the following:
750		-	(A) a statement of the independent expert's
751	350
752	351
753		-	professional qualifications and descriptions of the
754		-	experience that qualifies him or her as an expert
755		-	suitable for the engagement;
756		-	(B) a certified statement from the independent
757		-	expert that he or she meets the standards for an
758		-	independent expert under this Article;
759		-	(C) a description of the scope of the report;
760		-	(D) a summary of the terms of the insurance
761		-	business transfer plan to the extent relevant to the
762		-	report;
763		-	(E) a listing and summaries of documents, reports,
764		-	and other material information the independent expert
765		-	has considered in preparing the report and whether any
766		-	information requested was not provided;
767		-	(F) the extent to which the independent expert has
768		-	relied on information provided by or judgment of
769		-	others;
770		-	(G) the people on whom the independent expert has
771		-	relied and why, in his or her opinion, such reliance is
772		-	reasonable;
773		-	(H) the independent expert's opinion of the likely
774		-	effects of the insurance business transfer plan on
775		-	policyholders, reinsurers, and claimants,
776		-	distinguishing between:
777		-	(i) transferring policyholders, reinsurers,
778		-	and claimants;
	352	+
	353	+	SB0762 Enrolled - 10 - LRB103 03216 CPF 48222 b
779	354
780	355
781		-	(ii) policyholders, reinsurers, and claimants
782		-	of the transferring insurer whose policies will
783		-	not be transferred; and
784		-	(iii) policyholders, reinsurers, and claimants
785		-	of the assuming insurer;
786		-	(I) the facts and circumstances supporting each
787		-	opinion that the independent expert expresses in the
788		-	report; and
789		-	(J) consideration as to whether the security
790		-	position of policyholders that are affected by the
791		-	insurance business transfer are materially adversely
792		-	affected by the transfer, including, but not limited
793		-	to, state guaranty association coverage.
794		-	(c) The independent expert's report as required by
795		-	paragraph (19) of subsection (b) shall also include, but not
796		-	be limited to, a review of and report on the following:
797		-	(1) analysis of the transferring insurer's actuarial
798		-	review of resources for the subject business to determine
799		-	the reserve adequacy;
800		-	(2) analysis of the financial condition of the
801		-	transferring and assuming insurers and the effect the
802		-	transfer will have on the financial condition of each
803		-	company;
804		-	(3) review of the plans or proposals the assuming
805		-	insurer has with respect to the administration of the
806		-	policies subject to the proposed transfer;
	356	+	SB0762 Enrolled- 11 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 11 - LRB103 03216 CPF 48222 b
	357	+	SB0762 Enrolled - 11 - LRB103 03216 CPF 48222 b
	358	+	1 $5,000,000 and the reinsurance assumed premium is less
	359	+	2 than $10,000,000;
	360	+	3 (iii) $3,750, if the premium is less than
	361	+	4 $5,000,000 and the reinsurance assumed premium is
	362	+	5 $10,000,000 or more;
	363	+	6 (iv) $7,500, if the premium is $5,000,000 or more,
	364	+	7 but less than $10,000,000;
	365	+	8 (v) $18,000, if the premium is $10,000,000 or
	366	+	9 more, but less than $25,000,000;
	367	+	10 (vi) $22,500, if the premium is $25,000,000 or
	368	+	11 more, but less than $50,000,000;
	369	+	12 (vii) $30,000, if the premium is $50,000,000 or
	370	+	13 more, but less than $100,000,000;
	371	+	14 (viii) $37,500, if the premium is $100,000,000 or
	372	+	15 more.
	373	+	16 (b) Admitted assets.
	374	+	17 (i) $150, if admitted assets are less than
	375	+	18 $1,000,000;
	376	+	19 (ii) $750, if admitted assets are $1,000,000 or
	377	+	20 more, but less than $5,000,000;
	378	+	21 (iii) $3,750, if admitted assets are $5,000,000 or
	379	+	22 more, but less than $25,000,000;
	380	+	23 (iv) $7,500, if admitted assets are $25,000,000 or
	381	+	24 more, but less than $50,000,000;
	382	+	25 (v) $18,000, if admitted assets are $50,000,000 or
	383	+	26 more, but less than $100,000,000;
807	384
808	385
809		-	(4) whether the proposed transfer has a material,
810		-	adverse impact on the policyholders, reinsurers, and
811		-	claimants of the transferring and the assuming insurers;
812		-	(5) analysis of the assuming insurer's corporate
813		-	governance structure to ensure that there is proper board
814		-	and management oversight and expertise to manage the
815		-	subject business;
816		-	(6) analysis of whether any policyholder or group of
817		-	policyholders will lose or gain state guaranty association
818		-	coverage as a result of the transaction; and
819		-	(7) any other information that the Director requests
820		-	in order to review the insurance business transfer.
821		-	(d) After the receipt of a complete insurance business
822		-	transfer plan, the Director shall review the plan to determine
823		-	if the applicant is authorized to submit it to a court.
824		-	(e) The Director shall authorize the submission of the
825		-	insurance business transfer plan to a court unless he or she
826		-	finds that the insurance business transfer would have a
827		-	material adverse impact on the interests of policyholders,
828		-	reinsurers, or claimants that are part of the subject
829		-	business.
830		-	(f) If the Director determines that the insurance business
831		-	transfer would have a material adverse impact on the interests
832		-	of policyholders, reinsurers, or claimants that are part of
833		-	the subject business, he or she shall notify the applicant and
834		-	specify any modifications, supplements, or amendments and any
835	386
836	387
837		-	additional information or documentation with respect to the
838		-	plan that must be provided to the Director before he or she
839		-	shall allow the applicant to proceed with the court filing.
840		-	(g) The applicant shall have 30 days following the date
841		-	the Director notifies him or her of a determination under
842		-	subsection (f) to file an amended insurance business transfer
843		-	plan providing the modifications, supplements, or amendments
844		-	and additional information or documentation as requested by
845		-	the Director. If necessary, the applicant may request in
846		-	writing an extension of time of 30 days. If the applicant does
847		-	not make an amended filing within the time period provided in
848		-	this subsection, including any extension of time granted by
849		-	the Director, the insurance business transfer plan filing
850		-	shall terminate and a subsequent filing by the applicant shall
851		-	be considered a new filing which shall require compliance with
852		-	all provisions of this Article as if the prior filing had never
853		-	been made.
854		-	(h) When the modification, supplement, amendment, or
855		-	additional information requested in subsection (f) is
856		-	received, the Director shall review the amended plan in
857		-	accordance with subsection (c).
858		-	(i) If the Director determines that the plan may proceed
859		-	with the court filing, the Director shall confirm that fact in
860		-	writing to the applicant.
861		-	(215 ILCS 5/1725 new)
	388	+
	389	+	SB0762 Enrolled - 11 - LRB103 03216 CPF 48222 b
862	390
863	391
864		-	Sec. 1725. Application to the court for approval of a
865		-	plan.
866		-	(a) Within 30 days after notice from the Director that the
867		-	applicant may proceed with the court filing, the applicant
868		-	shall apply to the court for approval of the insurance
869		-	business transfer plan. Upon written request by the applicant,
870		-	the Director may extend the period for filing an application
871		-	with the court for an additional 30 days.
872		-	(b) The applicant shall inform the court of the reasons
873		-	why he or she petitions the court to find no material adverse
874		-	impact to policyholders, reinsurers, or claimants affected by
875		-	the proposed transfer.
876		-	(c) The application shall be in the form of a verified
877		-	petition for implementation of the insurance business transfer
878		-	plan in the court. The petition shall include the insurance
879		-	business transfer plan and shall identify any documents and
880		-	witnesses which the applicant intends to present at a hearing
881		-	regarding the petition.
882		-	(d) The Director shall be a party to the proceedings
883		-	before the court concerning the petition and shall be served
884		-	with copies of all filings. The Director's position in the
885		-	proceeding shall not be limited by his or her initial review of
886		-	the plan. The Director shall have all the rights of a litigant
887		-	under the Illinois Supreme Court Rules and the Code of Civil
888		-	Procedure, including, but not limited to, the right to appeal.
889		-	(e) Following the filing of the petition, the applicant
	392	+	SB0762 Enrolled- 12 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 12 - LRB103 03216 CPF 48222 b
	393	+	SB0762 Enrolled - 12 - LRB103 03216 CPF 48222 b
	394	+	1 (vi) $22,500, if admitted assets are $100,000,000
	395	+	2 or more, but less than $500,000,000;
	396	+	3 (vii) $30,000, if admitted assets are $500,000,000
	397	+	4 or more, but less than $1,000,000,000;
	398	+	5 (viii) $37,500, if admitted assets are
	399	+	6 $1,000,000,000 or more.
	400	+	7 (c) The sum of financial regulation fees charged to
	401	+	8 the domestic companies of the same affiliated group shall
	402	+	9 not exceed $250,000 in the aggregate in any single year
	403	+	10 and shall be billed by the Director to the member company
	404	+	11 designated by the group.
	405	+	12 (7) The Director shall charge and collect an annual
	406	+	13 financial regulation fee from every foreign or alien company,
	407	+	14 except fraternal benefit societies, for the examination and
	408	+	15 analysis of its financial condition and to fund the internal
	409	+	16 costs and expenses of the Interstate Insurance Receivership
	410	+	17 Commission as may be allocated to the State of Illinois and
	411	+	18 companies doing an insurance business in this State pursuant
	412	+	19 to Article X of the Interstate Insurance Receivership Compact.
	413	+	20 The fee shall be a fixed amount based upon Illinois direct
	414	+	21 premium income and nationwide reinsurance assumed premium
	415	+	22 income in accordance with the following schedule:
	416	+	23 (a) $150, if the premium is less than $500,000 and
	417	+	24 there is no reinsurance assumed premium;
	418	+	25 (b) $750, if the premium is $500,000 or more, but less
	419	+	26 than $5,000,000 and there is no reinsurance assumed
890	420
891	421
892		-	shall file a motion for a scheduling order setting a hearing on
893		-	the petition.
894		-	(f) Within 15 days after receipt of the scheduling order,
895		-	the applicant shall cause notice of the hearing to be provided
896		-	in accordance with the notice provisions of Section 1715.
897		-	Following the date of distribution of the notice, there shall
898		-	be a 60-day comment period. The notice and all comments
899		-	received shall be part of the court record.
900		-	(g) The notice shall be filed with and approved by the
901		-	court before distribution, and the Director shall be given the
902		-	opportunity to review and comment on the sufficiency of the
903		-	notice before court approval. The notice shall state or
904		-	provide:
905		-	(1) the date and time of the approval hearing;
906		-	(2) the name, address, and telephone number of the
907		-	assuming insurer and transferring insurer;
908		-	(3) that the recipient may comment on or object to the
909		-	transfer and novation;
910		-	(4) the procedures and deadline for submitting
911		-	comments or objections on the plan;
912		-	(5) a summary of any effect that the transfer and
913		-	novation will have on the policyholder's rights;
914		-	(6) a statement that the assuming insurer is
915		-	authorized to assume the subject business and that court
916		-	approval of the plan shall extinguish all rights of
917		-	policyholders under policies that are part of the subject
918	422
919	423
920		-	business against the transferring insurer;
921		-	(7) a statement regarding whether any policyholder or
922		-	group of policyholders may or will lose or gain state
923		-	guaranty association coverage as a result of the transfer
924		-	and the implication of losing or gaining state guaranty
925		-	association coverage;
926		-	(8) that recipients shall not have the opportunity to
927		-	opt out of or otherwise reject the transfer and novation;
928		-	(9) contact information for the Department where the
929		-	policyholder may obtain further information;
930		-	(10) information on how an electronic copy of the
931		-	insurance business transfer plan may be accessed. If
932		-	policyholders are unable to readily access electronic
933		-	copies, the applicant shall provide hard copies by
934		-	first-class mail; and
935		-	(11) any other information that the court may require.
936		-	(h) Any person, including by their legal representative,
937		-	who considers himself, herself, or itself to be adversely
938		-	affected can present evidence or comments to the court at the
939		-	approval hearing. Any person participating in the approval
940		-	hearing must follow the process established by the court and
941		-	shall bear his or her own costs and attorney's fees.
942		-	(215 ILCS 5/1730 new)
943		-	Sec. 1730. Approval; denial; insurance business transfer
944		-	plans.
	424	+
	425	+	SB0762 Enrolled - 12 - LRB103 03216 CPF 48222 b
945	426
946	427
947		-	(a) After the comment period pursuant to subsection (f) of
948		-	Section 1725 has ended the insurance business transfer plan
949		-	shall be presented by the applicant for approval by the court.
950		-	(b) At any time before the court issues an order approving
951		-	the insurance business transfer plan, the applicant may
952		-	withdraw the petition without prejudice.
953		-	(c) If the court finds that the implementation of the
954		-	insurance business transfer plan would not materially
955		-	adversely affect the interests of policyholders, reinsurers,
956		-	or claimants that are part of the subject business, the court
957		-	shall enter a judgment and implementation order. The judgment
958		-	and implementation order shall:
959		-	(1) order implementation of the insurance business
960		-	transfer plan;
961		-	(2) order a statutory novation with respect to all
962		-	policyholders or reinsureds and their respective policies
963		-	and reinsurance agreements under the subject business,
964		-	including the extinguishment of all rights of
965		-	policyholders under policies that are part of the subject
966		-	business against the transferring insurer, and providing
967		-	that the transferring insurer shall have no further
968		-	rights, obligations, or liabilities with respect to such
969		-	policies, and that the assuming insurer shall have all
970		-	such rights, obligations, and liabilities as if it were
971		-	the original insurer of such policies;
972		-	(3) release the transferring insurer from all
	428	+	SB0762 Enrolled- 13 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 13 - LRB103 03216 CPF 48222 b
	429	+	SB0762 Enrolled - 13 - LRB103 03216 CPF 48222 b
	430	+	1 premium; or if the premium is less than $5,000,000 and the
	431	+	2 reinsurance assumed premium is less than $10,000,000;
	432	+	3 (c) $3,750, if the premium is less than $5,000,000 and
	433	+	4 the reinsurance assumed premium is $10,000,000 or more;
	434	+	5 (d) $7,500, if the premium is $5,000,000 or more, but
	435	+	6 less than $10,000,000;
	436	+	7 (e) $18,000, if the premium is $10,000,000 or more,
	437	+	8 but less than $25,000,000;
	438	+	9 (f) $22,500, if the premium is $25,000,000 or more,
	439	+	10 but less than $50,000,000;
	440	+	11 (g) $30,000, if the premium is $50,000,000 or more,
	441	+	12 but less than $100,000,000;
	442	+	13 (h) $37,500, if the premium is $100,000,000 or more.
	443	+	14 The sum of financial regulation fees under this subsection
	444	+	15 (7) charged to the foreign or alien companies within the same
	445	+	16 affiliated group shall not exceed $250,000 in the aggregate in
	446	+	17 any single year and shall be billed by the Director to the
	447	+	18 member company designated by the group.
	448	+	19 (8) Beginning January 1, 1992, the financial regulation
	449	+	20 fees imposed under subsections (6) and (7) of this Section
	450	+	21 shall be paid by each company or domestic affiliated group
	451	+	22 annually. After January 1, 1994, the fee shall be billed by
	452	+	23 Department invoice based upon the company's premium income or
	453	+	24 admitted assets as shown in its annual statement for the
	454	+	25 preceding calendar year. The invoice is due upon receipt and
	455	+	26 must be paid no later than June 30 of each calendar year. All
973	456
974	457
975		-	obligations or liabilities under policies that are part of
976		-	the subject business;
977		-	(4) authorize and order the transfer of property or
978		-	liabilities, including, but not limited to, the ceded
979		-	reinsurance of transferred policies and contracts on the
980		-	subject business, notwithstanding any non-assignment
981		-	provisions in any such reinsurance contracts. The subject
982		-	business shall vest in and become liabilities of the
983		-	assuming insurer;
984		-	(5) order that the applicant provide notice of the
985		-	transfer and novation in accordance with the notice
986		-	provisions in Section 1715; and
987		-	(6) make such other provisions with respect to
988		-	incidental, consequential, and supplementary matters as
989		-	are necessary to assure the insurance business transfer
990		-	plan is fully and effectively carried out.
991		-	(d) If the court finds that the insurance business
992		-	transfer plan should not be approved, the court by its order
993		-	shall deny the petition.
994		-	(e) The applicant shall have 30 days following the
995		-	withdrawal or denial of the petition to file an amended
996		-	business transfer plan with the Director in accordance with
997		-	Section 1720.
998		-	(f) Nothing in this Section in any way affects the right of
999		-	appeal of any party.
1000	458
1001	459
1002		-	(215 ILCS 5/1735 new)
1003		-	Sec. 1735. Rules. The Department may adopt rules that are
1004		-	consistent with the provisions of this Article.
1005		-	(215 ILCS 5/1740 new)
1006		-	Sec. 1740. Confidentiality. The portion of the application
1007		-	for an insurance business transfer that would otherwise be
1008		-	confidential, including any documents, materials,
1009		-	communications, or other information submitted to the Director
1010		-	in contemplation of such application, shall not lose such
1011		-	confidentiality, except (i) the Director may disclose
1012		-	confidential information as needed to procure the independent
1013		-	expert and ensure that the expert meets the requirements under
1014		-	this Article and (ii) if the Director determines that
1015		-	disclosure of confidential information is necessary to fully
1016		-	and fairly advise policyholders and others entitled to notice
1017		-	of the material implications of the insurance business
1018		-	transfer plan.
1019		-	(215 ILCS 5/1745 new)
1020		-	Sec. 1745. Department oversight. Insurers engaging in an
1021		-	insurance business transfer under this Article consent to the
1022		-	jurisdiction of the Director with regard to any aspect of the
1023		-	transferred business or business transfer plan, including the
1024		-	authority of the Director to conduct financial analysis and
1025		-	examinations, regardless of whether the insurer has a
	460	+
	461	+	SB0762 Enrolled - 13 - LRB103 03216 CPF 48222 b
1026	462
1027	463
1028		-	certificate of authority or another basis for the Director's
1029		-	jurisdiction exists.
1030		-	(215 ILCS 5/1750 new)
1031		-	Sec. 1750. Fees and costs.
1032		-	(a) All expenses incurred by the Director for the
1033		-	compensation, costs, and expenses of the independent expert
1034		-	and any consultants retained by the independent expert
1035		-	incurred in fulfilling the obligations of the independent
1036		-	expert under this Article shall be paid by the applicant.
1037		-	(b) The Director may retain the services of any attorneys,
1038		-	actuaries, accountants, and other professionals and
1039		-	specialists as may be reasonably necessary to assist the
1040		-	Director in reviewing the insurance business transfer plan.
1041		-	All expenses incurred by the Director in connection with
1042		-	proceedings under this Article, including, but not limited to,
1043		-	expenses for the services of any attorneys, actuaries,
1044		-	accountants, and other professionals and specialists, shall be
1045		-	paid by the applicant.
1046		-	(c) The transferring insurer and the assuming insurer
1047		-	shall jointly be obligated to pay all debts incurred pursuant
1048		-	to this Section. Nothing in this Article shall be construed to
1049		-	create any duty for the independent expert to any party other
1050		-	than the Department or a court.
1051		-	(d) Failure to pay any of the requisite fees or costs
1052		-	within 30 days after demand shall be grounds for the Director
	464	+	SB0762 Enrolled- 14 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 14 - LRB103 03216 CPF 48222 b
	465	+	SB0762 Enrolled - 14 - LRB103 03216 CPF 48222 b
	466	+	1 financial regulation fees collected by the Department shall be
	467	+	2 paid to the Insurance Financial Regulation Fund. The
	468	+	3 Department may not collect financial examiner per diem charges
	469	+	4 from companies subject to subsections (6) and (7) of this
	470	+	5 Section undergoing financial examination after June 30, 1992.
	471	+	6 (9) In addition to the financial regulation fee required
	472	+	7 by this Section, a company undergoing any financial
	473	+	8 examination authorized by law shall pay the following costs
	474	+	9 and expenses incurred by the Department: electronic data
	475	+	10 processing costs, the expenses authorized under Section 131.21
	476	+	11 and subsection (d) of Section 132.4 of this Code, and lodging
	477	+	12 and travel expenses.
	478	+	13 Electronic data processing costs incurred by the
	479	+	14 Department in the performance of any examination shall be
	480	+	15 billed directly to the company undergoing examination for
	481	+	16 payment to the Technology Management Revolving Fund. Except
	482	+	17 for direct reimbursements authorized by the Director or direct
	483	+	18 payments made under Section 131.21 or subsection (d) of
	484	+	19 Section 132.4 of this Code, all financial regulation fees and
	485	+	20 all financial examination charges collected by the Department
	486	+	21 shall be paid to the Insurance Financial Regulation Fund.
	487	+	22 All lodging and travel expenses shall be in accordance
	488	+	23 with applicable travel regulations published by the Department
	489	+	24 of Central Management Services and approved by the Governor's
	490	+	25 Travel Control Board, except that out-of-state lodging and
	491	+	26 travel expenses related to examinations authorized under
1053	492
1054	493
1055		-	to request that a court dismiss the petition for approval of
1056		-	the insurance business transfer plan before the filing of an
1057		-	implementation order by the court or, if after the filing of an
1058		-	implementation order, the Director may suspend or revoke the
1059		-	assuming insurer's certificate of authority to transact
1060		-	insurance business in this State. The Director may also take
1061		-	any other action authorized by law against an insurer who
1062		-	fails to pay the requisite fees or costs.
1063		-	Section 99. Effective date. This Act takes effect upon
1064		-	becoming law, except that the changes to Section 408 and
1065		-	Article XLVII of the Illinois Insurance Code take effect
1066		-	January 1, 2025.
	494	+
	495	+
	496	+
	497	+	SB0762 Enrolled - 14 - LRB103 03216 CPF 48222 b
	498	+
	499	+
	500	+	SB0762 Enrolled- 15 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 15 - LRB103 03216 CPF 48222 b
	501	+	SB0762 Enrolled - 15 - LRB103 03216 CPF 48222 b
	502	+	1 Sections 132.1 through 132.7 shall be in accordance with
	503	+	2 travel rates prescribed under paragraph 301-7.2 of the Federal
	504	+	3 Travel Regulations, 41 C.F.R. 301-7.2, for reimbursement of
	505	+	4 subsistence expenses incurred during official travel. All
	506	+	5 lodging and travel expenses may be reimbursed directly upon
	507	+	6 the authorization of the Director.
	508	+	7 In the case of an organization or person not subject to the
	509	+	8 financial regulation fee, the expenses incurred in any
	510	+	9 financial examination authorized by law shall be paid by the
	511	+	10 organization or person being examined. The charge shall be
	512	+	11 reasonably related to the cost of the examination including,
	513	+	12 but not limited to, compensation of examiners and other costs
	514	+	13 described in this subsection.
	515	+	14 (10) Any company, person, or entity failing to make any
	516	+	15 payment of $150 or more as required under this Section shall be
	517	+	16 subject to the penalty and interest provisions provided for in
	518	+	17 subsections (4) and (7) of Section 412.
	519	+	18 (11) Unless otherwise specified, all of the fees collected
	520	+	19 under this Section shall be paid into the Insurance Financial
	521	+	20 Regulation Fund.
	522	+	21 (12) For purposes of this Section:
	523	+	22 (a) "Domestic company" means a company as defined in
	524	+	23 Section 2 of this Code which is incorporated or organized
	525	+	24 under the laws of this State, and in addition includes a
	526	+	25 not-for-profit corporation authorized under the Dental
	527	+	26 Service Plan Act or the Voluntary Health Services Plans
	528	+
	529	+
	530	+
	531	+
	532	+
	533	+	SB0762 Enrolled - 15 - LRB103 03216 CPF 48222 b
	534	+
	535	+
	536	+	SB0762 Enrolled- 16 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 16 - LRB103 03216 CPF 48222 b
	537	+	SB0762 Enrolled - 16 - LRB103 03216 CPF 48222 b
	538	+	1 Act, a health maintenance organization, and a limited
	539	+	2 health service organization.
	540	+	3 (b) "Foreign company" means a company as defined in
	541	+	4 Section 2 of this Code which is incorporated or organized
	542	+	5 under the laws of any state of the United States other than
	543	+	6 this State and in addition includes a health maintenance
	544	+	7 organization and a limited health service organization
	545	+	8 which is incorporated or organized under the laws of any
	546	+	9 state of the United States other than this State.
	547	+	10 (c) "Alien company" means a company as defined in
	548	+	11 Section 2 of this Code which is incorporated or organized
	549	+	12 under the laws of any country other than the United
	550	+	13 States.
	551	+	14 (d) "Fraternal benefit society" means a corporation,
	552	+	15 society, order, lodge or voluntary association as defined
	553	+	16 in Section 282.1 of this Code.
	554	+	17 (e) "Mutual benefit association" means a company,
	555	+	18 association or corporation authorized by the Director to
	556	+	19 do business in this State under the provisions of Article
	557	+	20 XVIII of this Code.
	558	+	21 (f) "Burial society" means a person, firm,
	559	+	22 corporation, society or association of individuals
	560	+	23 authorized by the Director to do business in this State
	561	+	24 under the provisions of Article XIX of this Code.
	562	+	25 (g) "Farm mutual" means a district, county and
	563	+	26 township mutual insurance company authorized by the
	564	+
	565	+
	566	+
	567	+
	568	+
	569	+	SB0762 Enrolled - 16 - LRB103 03216 CPF 48222 b
	570	+
	571	+
	572	+	SB0762 Enrolled- 17 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 17 - LRB103 03216 CPF 48222 b
	573	+	SB0762 Enrolled - 17 - LRB103 03216 CPF 48222 b
	574	+	1 Director to do business in this State under the provisions
	575	+	2 of the Farm Mutual Insurance Company Act of 1986.
	576	+	3 (Source: P.A. 102-775, eff. 5-13-22.)
	577	+	4 (215 ILCS 5/534.4) (from Ch. 73, par. 1065.84-4)
	578	+	5 Sec. 534.4. "Insolvent company" means a company organized
	579	+	6 as a stock company, mutual company, reciprocal or Lloyds (a)
	580	+	7 which holds a certificate of authority to transact insurance
	581	+	8 in this State either at the time the policy was issued or when
	582	+	9 the insured event occurred, or any company which has assumed
	583	+	10 or has been allocated such policy obligation through merger,
	584	+	11 division, insurance business transfer, consolidation, or
	585	+	12 reinsurance, whether or not such assuming company held a
	586	+	13 certificate of authority to transact insurance in this State
	587	+	14 at the time such policy was issued or when the insured event
	588	+	15 occurred; and (b) against which a final Order of Liquidation
	589	+	16 with a finding of insolvency to which there is no further right
	590	+	17 of appeal has been entered by a court of competent
	591	+	18 jurisdiction in the company's State of domicile after the
	592	+	19 effective date of this Article.
	593	+	20 (Source: P.A. 100-1190, eff. 4-5-19.)
	594	+	21 (215 ILCS 5/Art. XLVII heading new)
	595	+	22 ARTICLE XLVII. INSURANCE BUSINESS TRANSFERS
	596	+	23 (215 ILCS 5/1701 new)
	597	+
	598	+
	599	+
	600	+
	601	+
	602	+	SB0762 Enrolled - 17 - LRB103 03216 CPF 48222 b
	603	+
	604	+
	605	+	SB0762 Enrolled- 18 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 18 - LRB103 03216 CPF 48222 b
	606	+	SB0762 Enrolled - 18 - LRB103 03216 CPF 48222 b
	607	+	1 Sec. 1701. Short title. This Article may be cited as the
	608	+	2 Insurance Business Transfer Law.
	609	+	3 (215 ILCS 5/1703 new)
	610	+	4 Sec. 1703. Purpose and intent. The purpose of this Article
	611	+	5 is to provide a mechanism for insurers to transfer or assume
	612	+	6 blocks of insurance business in an efficient and
	613	+	7 cost-effective manner that provides needed legal finality for
	614	+	8 such transfers in order to provide for improved operational
	615	+	9 and capital efficiency for insurance companies, while
	616	+	10 protecting the interests of the policyholders, reinsurers, and
	617	+	11 claimants of the subject business. This new process is
	618	+	12 intended to stimulate the economy by attracting segments of
	619	+	13 the insurance industry to this State, make this State an
	620	+	14 attractive home jurisdiction for insurance companies,
	621	+	15 encourage economic growth and increased investment in the
	622	+	16 financial services sector, and increase the availability of
	623	+	17 quality insurance industry jobs in this State. These purposes
	624	+	18 are accomplished by providing a basis and procedures for the
	625	+	19 transfer and statutory novation of policies from a
	626	+	20 transferring insurer to an assuming insurer by way of an
	627	+	21 insurance business transfer without the affirmative consent of
	628	+	22 policyholders or reinsureds, but with consideration of their
	629	+	23 interests. This Article establishes the requirements for
	630	+	24 notice and disclosure and standards and procedures for the
	631	+	25 approval of the transfer and novation by a court pursuant to an
	632	+
	633	+
	634	+
	635	+
	636	+
	637	+	SB0762 Enrolled - 18 - LRB103 03216 CPF 48222 b
	638	+
	639	+
	640	+	SB0762 Enrolled- 19 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 19 - LRB103 03216 CPF 48222 b
	641	+	SB0762 Enrolled - 19 - LRB103 03216 CPF 48222 b
	642	+	1 insurance business transfer plan. This Article does not limit
	643	+	2 or restrict other means of effecting a transfer or novation.
	644	+	3 (215 ILCS 5/1705 new)
	645	+	4 Sec. 1705. Definitions. As used in this Article:
	646	+	5 "Affiliate" means a person that directly or indirectly,
	647	+	6 through one or more intermediaries, controls, is controlled
	648	+	7 by, or is under common control with the person specified.
	649	+	8 "Applicant" means a transferring insurer or reinsurer
	650	+	9 applying under this Article.
	651	+	10 "Assuming insurer" means an insurer domiciled in Illinois
	652	+	11 and authorized to transact the type of business described in
	653	+	12 clause (c) of Class 1, clauses (b) through (l) of Class 2, or
	654	+	13 Class 3 of Section 4 that seeks to assume policies from a
	655	+	14 transferring insurer pursuant to this Article.
	656	+	15 "Court" means the circuit court of Sangamon County or Cook
	657	+	16 County.
	658	+	17 "Department" means the Department of Insurance.
	659	+	18 "Director" means the Director of Insurance.
	660	+	19 "Implementation order" means an order issued by a court
	661	+	20 under this Article.
	662	+	21 "Insurance business transfer" means a transfer and
	663	+	22 novation that, once approved pursuant to this Article,
	664	+	23 transfers insurance obligations or risks, or both, of existing
	665	+	24 or in-force contracts of insurance or reinsurance from a
	666	+	25 transferring insurer to an assuming insurer, and effects a
	667	+
	668	+
	669	+
	670	+
	671	+
	672	+	SB0762 Enrolled - 19 - LRB103 03216 CPF 48222 b
	673	+
	674	+
	675	+	SB0762 Enrolled- 20 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 20 - LRB103 03216 CPF 48222 b
	676	+	SB0762 Enrolled - 20 - LRB103 03216 CPF 48222 b
	677	+	1 novation of the transferred contracts of insurance or
	678	+	2 reinsurance with the result that the assuming insurer becomes
	679	+	3 directly liable to the policyholders of the transferring
	680	+	4 insurer and the transferring insurer's insurance obligations
	681	+	5 or risks, or both, under the contracts are extinguished.
	682	+	6 "Insurance business transfer plan" means the plan
	683	+	7 submitted to the Department to accomplish the transfer and
	684	+	8 novation pursuant to an insurance business transfer, including
	685	+	9 any associated transfer of assets and rights from or on behalf
	686	+	10 of the transferring insurer to the assuming insurer. An
	687	+	11 "insurance business transfer plan" is limited to the types of
	688	+	12 insurance described in clause (c) of Class 1, clauses (b)
	689	+	13 through (l) of Class 2, or Class 3 of Section 4.
	690	+	14 "Independent expert" means the impartial person procured
	691	+	15 to assist the Director and the court in connection with their
	692	+	16 review of a proposed transaction. The independent expert
	693	+	17 shall:
	694	+	18 (i) have no current or past, direct or indirect,
	695	+	19 financial interest in either the assuming insurer or
	696	+	20 transferring insurer or any of their respective
	697	+	21 affiliates,
	698	+	22 (ii) have not been employed by or acted as an officer,
	699	+	23 director, consultant, or other independent contractor for
	700	+	24 either the assuming insurer or transferring insurer or any
	701	+	25 of their respective affiliates within the past 12 months,
	702	+	26 (iii) not currently be appointed by the Director to
	703	+
	704	+
	705	+
	706	+
	707	+
	708	+	SB0762 Enrolled - 20 - LRB103 03216 CPF 48222 b
	709	+
	710	+
	711	+	SB0762 Enrolled- 21 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 21 - LRB103 03216 CPF 48222 b
	712	+	SB0762 Enrolled - 21 - LRB103 03216 CPF 48222 b
	713	+	1 assist in any capacity in any proceeding initiated under
	714	+	2 Article XIII, and
	715	+	3 (iv) receive no compensation in connection with the
	716	+	4 transaction governed by this Article other than a fee
	717	+	5 based on a fixed or hourly basis that is not contingent on
	718	+	6 the approval or consummation of an insurance business
	719	+	7 transfer.
	720	+	8 "Insurer" means an insurance, surety, or reinsurance
	721	+	9 company, corporation, partnership, association, society,
	722	+	10 order, individual, or aggregation of individuals engaging in
	723	+	11 or proposing or attempting to engage in insurance or surety
	724	+	12 business, including the exchanging of reciprocal or
	725	+	13 inter-insurance contracts between individuals, partnerships,
	726	+	14 and corporations.
	727	+	15 "Policy" means a policy, certificate of insurance, or a
	728	+	16 contract of reinsurance pursuant to which an insurer agrees to
	729	+	17 assume an obligation or risk, or both, of the policyholder or
	730	+	18 to make payments on behalf of, or to, the policyholder or its
	731	+	19 beneficiaries, and includes property and casualty insurance.
	732	+	20 "Policy" does not include any policy, contract, or certificate
	733	+	21 of life, accident, or health insurance, including those
	734	+	22 defined in clause (a) or (b) of Class 1 or clause (a) of Class
	735	+	23 2 of Section 4.
	736	+	24 "Policyholder" means an insured or a reinsured under a
	737	+	25 policy that is part of the subject business.
	738	+	26 "State guaranty association" means the Illinois Insurance
	739	+
	740	+
	741	+
	742	+
	743	+
	744	+	SB0762 Enrolled - 21 - LRB103 03216 CPF 48222 b
	745	+
	746	+
	747	+	SB0762 Enrolled- 22 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 22 - LRB103 03216 CPF 48222 b
	748	+	SB0762 Enrolled - 22 - LRB103 03216 CPF 48222 b
	749	+	1 Guaranty Fund, the Illinois Life and Health Guaranty
	750	+	2 Association, or any similar organization in another state.
	751	+	3 "Subject business" means the policy or policies that are
	752	+	4 the subject of the insurance business transfer plan.
	753	+	5 "Transfer and novation" means the transfer of insurance
	754	+	6 obligations or risks, or both, of existing or in-force
	755	+	7 policies from a transferring insurer to an assuming insurer
	756	+	8 that is intended to effect a novation of the transferred
	757	+	9 policies with the result that the assuming insurer becomes
	758	+	10 directly liable to the policyholders of the transferring
	759	+	11 insurer on the transferred policies and the transferring
	760	+	12 insurer's obligations or risks, or both, under the transferred
	761	+	13 policies are extinguished.
	762	+	14 "Transferring insurer" means an insurer or reinsurer that
	763	+	15 transfers and novates or seeks to transfer and novate
	764	+	16 obligations or risks, or both, under one or more policies to an
	765	+	17 assuming insurer pursuant to an insurance business transfer
	766	+	18 plan.
	767	+	19 (215 ILCS 5/1710 new)
	768	+	20 Sec. 1710. Court authority. Notwithstanding any other
	769	+	21 provision of law, a court may issue any order, process, or
	770	+	22 judgment that is necessary or appropriate to carry out the
	771	+	23 provisions of this Article. No provision of this Article shall
	772	+	24 be construed to preclude a court from, on its own motion,
	773	+	25 taking any action or making any determination necessary or
	774	+
	775	+
	776	+
	777	+
	778	+
	779	+	SB0762 Enrolled - 22 - LRB103 03216 CPF 48222 b
	780	+
	781	+
	782	+	SB0762 Enrolled- 23 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 23 - LRB103 03216 CPF 48222 b
	783	+	SB0762 Enrolled - 23 - LRB103 03216 CPF 48222 b
	784	+	1 appropriate to enforce or implement court orders or rules or
	785	+	2 to prevent an abuse of power.
	786	+	3 (215 ILCS 5/1715 new)
	787	+	4 Sec. 1715. Notice requirements.
	788	+	5 (a) Whenever notice is required to be given by an
	789	+	6 applicant under this Article, except as otherwise permitted by
	790	+	7 a court or the Director, the applicant shall within 15 days
	791	+	8 after the event triggering the requirement transmit the
	792	+	9 notice:
	793	+	10 (1) to the chief insurance regulator in each
	794	+	11 jurisdiction:
	795	+	12 (A) in which the applicant holds or has ever held a
	796	+	13 certificate of authority; and
	797	+	14 (B) in which policies that are part of the subject
	798	+	15 business were issued or policyholders currently
	799	+	16 reside;
	800	+	17 (2) to the National Conference of Insurance Guaranty
	801	+	18 Funds, the National Organization of Life and Health
	802	+	19 Insurance Guaranty Associations, and all state insurance
	803	+	20 guaranty associations for the states:
	804	+	21 (A) in which the applicant holds or has ever held a
	805	+	22 certificate of authority; and
	806	+	23 (B) in which policies that are part of the subject
	807	+	24 business were issued or policyholders currently
	808	+	25 reside;
	809	+
	810	+
	811	+
	812	+
	813	+
	814	+	SB0762 Enrolled - 23 - LRB103 03216 CPF 48222 b
	815	+
	816	+
	817	+	SB0762 Enrolled- 24 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 24 - LRB103 03216 CPF 48222 b
	818	+	SB0762 Enrolled - 24 - LRB103 03216 CPF 48222 b
	819	+	1 (3) to reinsurers of the applicant pursuant to the
	820	+	2 notice provisions of the reinsurance agreements applicable
	821	+	3 to the policies that are part of the subject business or,
	822	+	4 where an agreement has no provision for notice, by
	823	+	5 internationally recognized delivery service;
	824	+	6 (4) to all policyholders holding policies that are
	825	+	7 part of the subject business at their last known address
	826	+	8 as indicated by the records of the applicant or to the
	827	+	9 address to which premium notices or other policy documents
	828	+	10 are sent. A notice of transfer shall also be sent to the
	829	+	11 transferring insurer's agents or brokers of record on the
	830	+	12 subject business; and
	831	+	13 (5) by publication in a newspaper of general
	832	+	14 circulation in the state in which the applicant has its
	833	+	15 principal place of business and in such other publications
	834	+	16 that the Director requires.
	835	+	17 (b) If notice is given in accordance with this Section,
	836	+	18 any orders under this Article shall be conclusive with respect
	837	+	19 to all intended recipients of the notice whether or not they
	838	+	20 receive actual notice.
	839	+	21 (c) If this Article requires that the applicant provide
	840	+	22 notice but the Director has been named receiver of the
	841	+	23 applicant pursuant to Article XIII, the Director shall provide
	842	+	24 the required notice.
	843	+	25 (d) Notice under this Section may take the form of
	844	+	26 first-class mail, facsimile, or electronic notice. The court
	845	+
	846	+
	847	+
	848	+
	849	+
	850	+	SB0762 Enrolled - 24 - LRB103 03216 CPF 48222 b
	851	+
	852	+
	853	+	SB0762 Enrolled- 25 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 25 - LRB103 03216 CPF 48222 b
	854	+	SB0762 Enrolled - 25 - LRB103 03216 CPF 48222 b
	855	+	1 may order that notice take a specific form.
	856	+	2 (215 ILCS 5/1720 new)
	857	+	3 Sec. 1720. Application procedure.
	858	+	4 (a) Before filing an insurance business transfer plan, the
	859	+	5 applicant shall file with the Department a notice of its
	860	+	6 intention to file a plan and shall pay the required fee. Upon
	861	+	7 request, the applicant and the assuming insurer shall provide
	862	+	8 the Department with any information necessary for the
	863	+	9 Department to procure an independent expert that meets the
	864	+	10 requirements of this Article.
	865	+	11 (b) An insurance business transfer plan shall be filed by
	866	+	12 the applicant with the Director for his or her review and
	867	+	13 approval. The plan may be supplemented by other information
	868	+	14 deemed necessary by the Director, and shall contain the
	869	+	15 following information or an explanation as to why the
	870	+	16 following information is not included:
	871	+	17 (1) the name, address, and telephone number of the
	872	+	18 transferring insurer and the assuming insurer and their
	873	+	19 respective direct and indirect controlling persons, if
	874	+	20 any;
	875	+	21 (2) a summary of the insurance business transfer plan;
	876	+	22 (3) an identification and description of the subject
	877	+	23 business;
	878	+	24 (4) the most recent audited financial statements and
	879	+	25 statutory annual and quarterly reports of the transferring
	880	+
	881	+
	882	+
	883	+
	884	+
	885	+	SB0762 Enrolled - 25 - LRB103 03216 CPF 48222 b
	886	+
	887	+
	888	+	SB0762 Enrolled- 26 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 26 - LRB103 03216 CPF 48222 b
	889	+	SB0762 Enrolled - 26 - LRB103 03216 CPF 48222 b
	890	+	1 insurer and the assuming insurer filed with their
	891	+	2 domiciliary regulator;
	892	+	3 (5) the most recent actuarial report and opinion that
	893	+	4 quantify the liabilities associated with the subject
	894	+	5 business;
	895	+	6 (6) pro forma financial statements showing the
	896	+	7 projected statutory balance sheet, results of operation,
	897	+	8 and cash flows of the assuming insurer for the 3 years
	898	+	9 following the proposed transfer and novation;
	899	+	10 (7) officers' certificates of the transferring insurer
	900	+	11 and the assuming insurer attesting that each has obtained
	901	+	12 all required internal approvals and authorizations
	902	+	13 regarding the insurance business transfer plan and
	903	+	14 completed all necessary and appropriate actions relating
	904	+	15 thereto;
	905	+	16 (8) a proposal for plan implementation and
	906	+	17 administration, including the form of notice to be
	907	+	18 provided under the insurance business transfer plan to any
	908	+	19 policyholder whose policy is part of the subject business;
	909	+	20 (9) a full description as to how notice under the
	910	+	21 insurance business transfer plan shall be provided;
	911	+	22 (10) a description of any reinsurance arrangements
	912	+	23 that would pass to the assuming insurer under the
	913	+	24 insurance business transfer plan;
	914	+	25 (11) a description of any guarantees or additional
	915	+	26 reinsurance that will cover the subject business following
	916	+
	917	+
	918	+
	919	+
	920	+
	921	+	SB0762 Enrolled - 26 - LRB103 03216 CPF 48222 b
	922	+
	923	+
	924	+	SB0762 Enrolled- 27 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 27 - LRB103 03216 CPF 48222 b
	925	+	SB0762 Enrolled - 27 - LRB103 03216 CPF 48222 b
	926	+	1 the transfer and novation;
	927	+	2 (12) a statement describing the assuming insurer's
	928	+	3 proposed investment policies and any contemplated
	929	+	4 third-party claims management and administration
	930	+	5 arrangements;
	931	+	6 (13) a description of how the transferring and
	932	+	7 assuming insurers will be licensed for the purpose of
	933	+	8 preserving state guaranty association coverage;
	934	+	9 (14) a description of the financial implications of
	935	+	10 the transaction including solvency, capital adequacy, cash
	936	+	11 flow, reserves, asset quality, and risk-based capital;
	937	+	12 (15) an analysis of the assuming insurer's corporate
	938	+	13 governance structure to ensure that there is proper board
	939	+	14 management oversight and expertise to manage the subject
	940	+	15 business;
	941	+	16 (16) an evaluation of the competency, experience, and
	942	+	17 integrity of the persons who would control the operation
	943	+	18 of an involved insurer;
	944	+	19 (17) a certified statement that the transaction is not
	945	+	20 being made for improper purposes, including fraud;
	946	+	21 (18) evidence of approval or nonobjection of the
	947	+	22 transfer from the chief insurance regulator of the state
	948	+	23 of the transferring insurer's domicile; and
	949	+	24 (19) a report from the independent expert that shall
	950	+	25 provide the following:
	951	+	26 (A) a statement of the independent expert's
	952	+
	953	+
	954	+
	955	+
	956	+
	957	+	SB0762 Enrolled - 27 - LRB103 03216 CPF 48222 b
	958	+
	959	+
	960	+	SB0762 Enrolled- 28 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 28 - LRB103 03216 CPF 48222 b
	961	+	SB0762 Enrolled - 28 - LRB103 03216 CPF 48222 b
	962	+	1 professional qualifications and descriptions of the
	963	+	2 experience that qualifies him or her as an expert
	964	+	3 suitable for the engagement;
	965	+	4 (B) a certified statement from the independent
	966	+	5 expert that he or she meets the standards for an
	967	+	6 independent expert under this Article;
	968	+	7 (C) a description of the scope of the report;
	969	+	8 (D) a summary of the terms of the insurance
	970	+	9 business transfer plan to the extent relevant to the
	971	+	10 report;
	972	+	11 (E) a listing and summaries of documents, reports,
	973	+	12 and other material information the independent expert
	974	+	13 has considered in preparing the report and whether any
	975	+	14 information requested was not provided;
	976	+	15 (F) the extent to which the independent expert has
	977	+	16 relied on information provided by or judgment of
	978	+	17 others;
	979	+	18 (G) the people on whom the independent expert has
	980	+	19 relied and why, in his or her opinion, such reliance is
	981	+	20 reasonable;
	982	+	21 (H) the independent expert's opinion of the likely
	983	+	22 effects of the insurance business transfer plan on
	984	+	23 policyholders, reinsurers, and claimants,
	985	+	24 distinguishing between:
	986	+	25 (i) transferring policyholders, reinsurers,
	987	+	26 and claimants;
	988	+
	989	+
	990	+
	991	+
	992	+
	993	+	SB0762 Enrolled - 28 - LRB103 03216 CPF 48222 b
	994	+
	995	+
	996	+	SB0762 Enrolled- 29 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 29 - LRB103 03216 CPF 48222 b
	997	+	SB0762 Enrolled - 29 - LRB103 03216 CPF 48222 b
	998	+	1 (ii) policyholders, reinsurers, and claimants
	999	+	2 of the transferring insurer whose policies will
	1000	+	3 not be transferred; and
	1001	+	4 (iii) policyholders, reinsurers, and claimants
	1002	+	5 of the assuming insurer;
	1003	+	6 (I) the facts and circumstances supporting each
	1004	+	7 opinion that the independent expert expresses in the
	1005	+	8 report; and
	1006	+	9 (J) consideration as to whether the security
	1007	+	10 position of policyholders that are affected by the
	1008	+	11 insurance business transfer are materially adversely
	1009	+	12 affected by the transfer, including, but not limited
	1010	+	13 to, state guaranty association coverage.
	1011	+	14 (c) The independent expert's report as required by
	1012	+	15 paragraph (19) of subsection (b) shall also include, but not
	1013	+	16 be limited to, a review of and report on the following:
	1014	+	17 (1) analysis of the transferring insurer's actuarial
	1015	+	18 review of resources for the subject business to determine
	1016	+	19 the reserve adequacy;
	1017	+	20 (2) analysis of the financial condition of the
	1018	+	21 transferring and assuming insurers and the effect the
	1019	+	22 transfer will have on the financial condition of each
	1020	+	23 company;
	1021	+	24 (3) review of the plans or proposals the assuming
	1022	+	25 insurer has with respect to the administration of the
	1023	+	26 policies subject to the proposed transfer;
	1024	+
	1025	+
	1026	+
	1027	+
	1028	+
	1029	+	SB0762 Enrolled - 29 - LRB103 03216 CPF 48222 b
	1030	+
	1031	+
	1032	+	SB0762 Enrolled- 30 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 30 - LRB103 03216 CPF 48222 b
	1033	+	SB0762 Enrolled - 30 - LRB103 03216 CPF 48222 b
	1034	+	1 (4) whether the proposed transfer has a material,
	1035	+	2 adverse impact on the policyholders, reinsurers, and
	1036	+	3 claimants of the transferring and the assuming insurers;
	1037	+	4 (5) analysis of the assuming insurer's corporate
	1038	+	5 governance structure to ensure that there is proper board
	1039	+	6 and management oversight and expertise to manage the
	1040	+	7 subject business;
	1041	+	8 (6) analysis of whether any policyholder or group of
	1042	+	9 policyholders will lose or gain state guaranty association
	1043	+	10 coverage as a result of the transaction; and
	1044	+	11 (7) any other information that the Director requests
	1045	+	12 in order to review the insurance business transfer.
	1046	+	13 (d) After the receipt of a complete insurance business
	1047	+	14 transfer plan, the Director shall review the plan to determine
	1048	+	15 if the applicant is authorized to submit it to a court.
	1049	+	16 (e) The Director shall authorize the submission of the
	1050	+	17 insurance business transfer plan to a court unless he or she
	1051	+	18 finds that the insurance business transfer would have a
	1052	+	19 material adverse impact on the interests of policyholders,
	1053	+	20 reinsurers, or claimants that are part of the subject
	1054	+	21 business.
	1055	+	22 (f) If the Director determines that the insurance business
	1056	+	23 transfer would have a material adverse impact on the interests
	1057	+	24 of policyholders, reinsurers, or claimants that are part of
	1058	+	25 the subject business, he or she shall notify the applicant and
	1059	+	26 specify any modifications, supplements, or amendments and any
	1060	+
	1061	+
	1062	+
	1063	+
	1064	+
	1065	+	SB0762 Enrolled - 30 - LRB103 03216 CPF 48222 b
	1066	+
	1067	+
	1068	+	SB0762 Enrolled- 31 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 31 - LRB103 03216 CPF 48222 b
	1069	+	SB0762 Enrolled - 31 - LRB103 03216 CPF 48222 b
	1070	+	1 additional information or documentation with respect to the
	1071	+	2 plan that must be provided to the Director before he or she
	1072	+	3 shall allow the applicant to proceed with the court filing.
	1073	+	4 (g) The applicant shall have 30 days following the date
	1074	+	5 the Director notifies him or her of a determination under
	1075	+	6 subsection (f) to file an amended insurance business transfer
	1076	+	7 plan providing the modifications, supplements, or amendments
	1077	+	8 and additional information or documentation as requested by
	1078	+	9 the Director. If necessary, the applicant may request in
	1079	+	10 writing an extension of time of 30 days. If the applicant does
	1080	+	11 not make an amended filing within the time period provided in
	1081	+	12 this subsection, including any extension of time granted by
	1082	+	13 the Director, the insurance business transfer plan filing
	1083	+	14 shall terminate and a subsequent filing by the applicant shall
	1084	+	15 be considered a new filing which shall require compliance with
	1085	+	16 all provisions of this Article as if the prior filing had never
	1086	+	17 been made.
	1087	+	18 (h) When the modification, supplement, amendment, or
	1088	+	19 additional information requested in subsection (f) is
	1089	+	20 received, the Director shall review the amended plan in
	1090	+	21 accordance with subsection (c).
	1091	+	22 (i) If the Director determines that the plan may proceed
	1092	+	23 with the court filing, the Director shall confirm that fact in
	1093	+	24 writing to the applicant.
	1094	+	25 (215 ILCS 5/1725 new)
	1095	+
	1096	+
	1097	+
	1098	+
	1099	+
	1100	+	SB0762 Enrolled - 31 - LRB103 03216 CPF 48222 b
	1101	+
	1102	+
	1103	+	SB0762 Enrolled- 32 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 32 - LRB103 03216 CPF 48222 b
	1104	+	SB0762 Enrolled - 32 - LRB103 03216 CPF 48222 b
	1105	+	1 Sec. 1725. Application to the court for approval of a
	1106	+	2 plan.
	1107	+	3 (a) Within 30 days after notice from the Director that the
	1108	+	4 applicant may proceed with the court filing, the applicant
	1109	+	5 shall apply to the court for approval of the insurance
	1110	+	6 business transfer plan. Upon written request by the applicant,
	1111	+	7 the Director may extend the period for filing an application
	1112	+	8 with the court for an additional 30 days.
	1113	+	9 (b) The applicant shall inform the court of the reasons
	1114	+	10 why he or she petitions the court to find no material adverse
	1115	+	11 impact to policyholders, reinsurers, or claimants affected by
	1116	+	12 the proposed transfer.
	1117	+	13 (c) The application shall be in the form of a verified
	1118	+	14 petition for implementation of the insurance business transfer
	1119	+	15 plan in the court. The petition shall include the insurance
	1120	+	16 business transfer plan and shall identify any documents and
	1121	+	17 witnesses which the applicant intends to present at a hearing
	1122	+	18 regarding the petition.
	1123	+	19 (d) The Director shall be a party to the proceedings
	1124	+	20 before the court concerning the petition and shall be served
	1125	+	21 with copies of all filings. The Director's position in the
	1126	+	22 proceeding shall not be limited by his or her initial review of
	1127	+	23 the plan. The Director shall have all the rights of a litigant
	1128	+	24 under the Illinois Supreme Court Rules and the Code of Civil
	1129	+	25 Procedure, including, but not limited to, the right to appeal.
	1130	+	26 (e) Following the filing of the petition, the applicant
	1131	+
	1132	+
	1133	+
	1134	+
	1135	+
	1136	+	SB0762 Enrolled - 32 - LRB103 03216 CPF 48222 b
	1137	+
	1138	+
	1139	+	SB0762 Enrolled- 33 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 33 - LRB103 03216 CPF 48222 b
	1140	+	SB0762 Enrolled - 33 - LRB103 03216 CPF 48222 b
	1141	+	1 shall file a motion for a scheduling order setting a hearing on
	1142	+	2 the petition.
	1143	+	3 (f) Within 15 days after receipt of the scheduling order,
	1144	+	4 the applicant shall cause notice of the hearing to be provided
	1145	+	5 in accordance with the notice provisions of Section 1715.
	1146	+	6 Following the date of distribution of the notice, there shall
	1147	+	7 be a 60-day comment period. The notice and all comments
	1148	+	8 received shall be part of the court record.
	1149	+	9 (g) The notice shall be filed with and approved by the
	1150	+	10 court before distribution, and the Director shall be given the
	1151	+	11 opportunity to review and comment on the sufficiency of the
	1152	+	12 notice before court approval. The notice shall state or
	1153	+	13 provide:
	1154	+	14 (1) the date and time of the approval hearing;
	1155	+	15 (2) the name, address, and telephone number of the
	1156	+	16 assuming insurer and transferring insurer;
	1157	+	17 (3) that the recipient may comment on or object to the
	1158	+	18 transfer and novation;
	1159	+	19 (4) the procedures and deadline for submitting
	1160	+	20 comments or objections on the plan;
	1161	+	21 (5) a summary of any effect that the transfer and
	1162	+	22 novation will have on the policyholder's rights;
	1163	+	23 (6) a statement that the assuming insurer is
	1164	+	24 authorized to assume the subject business and that court
	1165	+	25 approval of the plan shall extinguish all rights of
	1166	+	26 policyholders under policies that are part of the subject
	1167	+
	1168	+
	1169	+
	1170	+
	1171	+
	1172	+	SB0762 Enrolled - 33 - LRB103 03216 CPF 48222 b
	1173	+
	1174	+
	1175	+	SB0762 Enrolled- 34 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 34 - LRB103 03216 CPF 48222 b
	1176	+	SB0762 Enrolled - 34 - LRB103 03216 CPF 48222 b
	1177	+	1 business against the transferring insurer;
	1178	+	2 (7) a statement regarding whether any policyholder or
	1179	+	3 group of policyholders may or will lose or gain state
	1180	+	4 guaranty association coverage as a result of the transfer
	1181	+	5 and the implication of losing or gaining state guaranty
	1182	+	6 association coverage;
	1183	+	7 (8) that recipients shall not have the opportunity to
	1184	+	8 opt out of or otherwise reject the transfer and novation;
	1185	+	9 (9) contact information for the Department where the
	1186	+	10 policyholder may obtain further information;
	1187	+	11 (10) information on how an electronic copy of the
	1188	+	12 insurance business transfer plan may be accessed. If
	1189	+	13 policyholders are unable to readily access electronic
	1190	+	14 copies, the applicant shall provide hard copies by
	1191	+	15 first-class mail; and
	1192	+	16 (11) any other information that the court may require.
	1193	+	17 (h) Any person, including by their legal representative,
	1194	+	18 who considers himself, herself, or itself to be adversely
	1195	+	19 affected can present evidence or comments to the court at the
	1196	+	20 approval hearing. Any person participating in the approval
	1197	+	21 hearing must follow the process established by the court and
	1198	+	22 shall bear his or her own costs and attorney's fees.
	1199	+	23 (215 ILCS 5/1730 new)
	1200	+	24 Sec. 1730. Approval; denial; insurance business transfer
	1201	+	25 plans.
	1202	+
	1203	+
	1204	+
	1205	+
	1206	+
	1207	+	SB0762 Enrolled - 34 - LRB103 03216 CPF 48222 b
	1208	+
	1209	+
	1210	+	SB0762 Enrolled- 35 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 35 - LRB103 03216 CPF 48222 b
	1211	+	SB0762 Enrolled - 35 - LRB103 03216 CPF 48222 b
	1212	+	1 (a) After the comment period pursuant to subsection (f) of
	1213	+	2 Section 1725 has ended the insurance business transfer plan
	1214	+	3 shall be presented by the applicant for approval by the court.
	1215	+	4 (b) At any time before the court issues an order approving
	1216	+	5 the insurance business transfer plan, the applicant may
	1217	+	6 withdraw the petition without prejudice.
	1218	+	7 (c) If the court finds that the implementation of the
	1219	+	8 insurance business transfer plan would not materially
	1220	+	9 adversely affect the interests of policyholders, reinsurers,
	1221	+	10 or claimants that are part of the subject business, the court
	1222	+	11 shall enter a judgment and implementation order. The judgment
	1223	+	12 and implementation order shall:
	1224	+	13 (1) order implementation of the insurance business
	1225	+	14 transfer plan;
	1226	+	15 (2) order a statutory novation with respect to all
	1227	+	16 policyholders or reinsureds and their respective policies
	1228	+	17 and reinsurance agreements under the subject business,
	1229	+	18 including the extinguishment of all rights of
	1230	+	19 policyholders under policies that are part of the subject
	1231	+	20 business against the transferring insurer, and providing
	1232	+	21 that the transferring insurer shall have no further
	1233	+	22 rights, obligations, or liabilities with respect to such
	1234	+	23 policies, and that the assuming insurer shall have all
	1235	+	24 such rights, obligations, and liabilities as if it were
	1236	+	25 the original insurer of such policies;
	1237	+	26 (3) release the transferring insurer from all
	1238	+
	1239	+
	1240	+
	1241	+
	1242	+
	1243	+	SB0762 Enrolled - 35 - LRB103 03216 CPF 48222 b
	1244	+
	1245	+
	1246	+	SB0762 Enrolled- 36 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 36 - LRB103 03216 CPF 48222 b
	1247	+	SB0762 Enrolled - 36 - LRB103 03216 CPF 48222 b
	1248	+	1 obligations or liabilities under policies that are part of
	1249	+	2 the subject business;
	1250	+	3 (4) authorize and order the transfer of property or
	1251	+	4 liabilities, including, but not limited to, the ceded
	1252	+	5 reinsurance of transferred policies and contracts on the
	1253	+	6 subject business, notwithstanding any non-assignment
	1254	+	7 provisions in any such reinsurance contracts. The subject
	1255	+	8 business shall vest in and become liabilities of the
	1256	+	9 assuming insurer;
	1257	+	10 (5) order that the applicant provide notice of the
	1258	+	11 transfer and novation in accordance with the notice
	1259	+	12 provisions in Section 1715; and
	1260	+	13 (6) make such other provisions with respect to
	1261	+	14 incidental, consequential, and supplementary matters as
	1262	+	15 are necessary to assure the insurance business transfer
	1263	+	16 plan is fully and effectively carried out.
	1264	+	17 (d) If the court finds that the insurance business
	1265	+	18 transfer plan should not be approved, the court by its order
	1266	+	19 shall deny the petition.
	1267	+	20 (e) The applicant shall have 30 days following the
	1268	+	21 withdrawal or denial of the petition to file an amended
	1269	+	22 business transfer plan with the Director in accordance with
	1270	+	23 Section 1720.
	1271	+	24 (f) Nothing in this Section in any way affects the right of
	1272	+	25 appeal of any party.
	1273	+
	1274	+
	1275	+
	1276	+
	1277	+
	1278	+	SB0762 Enrolled - 36 - LRB103 03216 CPF 48222 b
	1279	+
	1280	+
	1281	+	SB0762 Enrolled- 37 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 37 - LRB103 03216 CPF 48222 b
	1282	+	SB0762 Enrolled - 37 - LRB103 03216 CPF 48222 b
	1283	+	1 (215 ILCS 5/1735 new)
	1284	+	2 Sec. 1735. Rules. The Department may adopt rules that are
	1285	+	3 consistent with the provisions of this Article.
	1286	+	4 (215 ILCS 5/1740 new)
	1287	+	5 Sec. 1740. Confidentiality. The portion of the application
	1288	+	6 for an insurance business transfer that would otherwise be
	1289	+	7 confidential, including any documents, materials,
	1290	+	8 communications, or other information submitted to the Director
	1291	+	9 in contemplation of such application, shall not lose such
	1292	+	10 confidentiality, except (i) the Director may disclose
	1293	+	11 confidential information as needed to procure the independent
	1294	+	12 expert and ensure that the expert meets the requirements under
	1295	+	13 this Article and (ii) if the Director determines that
	1296	+	14 disclosure of confidential information is necessary to fully
	1297	+	15 and fairly advise policyholders and others entitled to notice
	1298	+	16 of the material implications of the insurance business
	1299	+	17 transfer plan.
	1300	+	18 (215 ILCS 5/1745 new)
	1301	+	19 Sec. 1745. Department oversight. Insurers engaging in an
	1302	+	20 insurance business transfer under this Article consent to the
	1303	+	21 jurisdiction of the Director with regard to any aspect of the
	1304	+	22 transferred business or business transfer plan, including the
	1305	+	23 authority of the Director to conduct financial analysis and
	1306	+	24 examinations, regardless of whether the insurer has a
	1307	+
	1308	+
	1309	+
	1310	+
	1311	+
	1312	+	SB0762 Enrolled - 37 - LRB103 03216 CPF 48222 b
	1313	+
	1314	+
	1315	+	SB0762 Enrolled- 38 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 38 - LRB103 03216 CPF 48222 b
	1316	+	SB0762 Enrolled - 38 - LRB103 03216 CPF 48222 b
	1317	+	1 certificate of authority or another basis for the Director's
	1318	+	2 jurisdiction exists.
	1319	+	3 (215 ILCS 5/1750 new)
	1320	+	4 Sec. 1750. Fees and costs.
	1321	+	5 (a) All expenses incurred by the Director for the
	1322	+	6 compensation, costs, and expenses of the independent expert
	1323	+	7 and any consultants retained by the independent expert
	1324	+	8 incurred in fulfilling the obligations of the independent
	1325	+	9 expert under this Article shall be paid by the applicant.
	1326	+	10 (b) The Director may retain the services of any attorneys,
	1327	+	11 actuaries, accountants, and other professionals and
	1328	+	12 specialists as may be reasonably necessary to assist the
	1329	+	13 Director in reviewing the insurance business transfer plan.
	1330	+	14 All expenses incurred by the Director in connection with
	1331	+	15 proceedings under this Article, including, but not limited to,
	1332	+	16 expenses for the services of any attorneys, actuaries,
	1333	+	17 accountants, and other professionals and specialists, shall be
	1334	+	18 paid by the applicant.
	1335	+	19 (c) The transferring insurer and the assuming insurer
	1336	+	20 shall jointly be obligated to pay all debts incurred pursuant
	1337	+	21 to this Section. Nothing in this Article shall be construed to
	1338	+	22 create any duty for the independent expert to any party other
	1339	+	23 than the Department or a court.
	1340	+	24 (d) Failure to pay any of the requisite fees or costs
	1341	+	25 within 30 days after demand shall be grounds for the Director
	1342	+
	1343	+
	1344	+
	1345	+
	1346	+
	1347	+	SB0762 Enrolled - 38 - LRB103 03216 CPF 48222 b
	1348	+
	1349	+
	1350	+	SB0762 Enrolled- 39 -LRB103 03216 CPF 48222 b SB0762 Enrolled - 39 - LRB103 03216 CPF 48222 b
	1351	+	SB0762 Enrolled - 39 - LRB103 03216 CPF 48222 b
	1352	+	1 to request that a court dismiss the petition for approval of
	1353	+	2 the insurance business transfer plan before the filing of an
	1354	+	3 implementation order by the court or, if after the filing of an
	1355	+	4 implementation order, the Director may suspend or revoke the
	1356	+	5 assuming insurer's certificate of authority to transact
	1357	+	6 insurance business in this State. The Director may also take
	1358	+	7 any other action authorized by law against an insurer who
	1359	+	8 fails to pay the requisite fees or costs.
	1360	+	9 Section 99. Effective date. This Act takes effect upon
	1361	+	10 becoming law, except that the changes to Section 408 and
	1362	+	11 Article XLVII of the Illinois Insurance Code take effect
	1363	+	12 January 1, 2025.
	1364	+
	1365	+
	1366	+
	1367	+
	1368	+
	1369	+	SB0762 Enrolled - 39 - LRB103 03216 CPF 48222 b