IL
Illinois Senate Bill SB1479

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1479 Compare Versions

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1-Public Act 103-0897
21 SB1479 EnrolledLRB103 05817 BMS 50837 b SB1479 Enrolled LRB103 05817 BMS 50837 b
32 SB1479 Enrolled LRB103 05817 BMS 50837 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 132, 132.5, 155.35, 402, 408, 511.109,
9-512-3, 512-5, and 513b3 and by adding Section 512-11 as
10-follows:
11-(215 ILCS 5/132) (from Ch. 73, par. 744)
12-Sec. 132. Market conduct actions and market analysis and
13-non-financial examinations.
14-(a) Definitions. As used in this Section:
15-"Data call" means a written solicitation by the Director
16-to 2 or more regulated companies or persons seeking existing
17-data or other existing information to be provided within a
18-reasonable time period for a narrow and targeted regulatory
19-oversight purpose for market analysis. "Data call" does not
20-include an information request in a market conduct action or
21-any data or information that the Director shall or may
22-specifically require under any other law, except as provided
23-by the other law.
24-"Desk examination" means an examination that is conducted
25-by market conduct surveillance personnel at a location other
26-than the regulated company's or person's premises. "Desk
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 132, 132.5, 155.35, 402, 408, 511.109,
8+6 512-3, 512-5, and 513b3 and by adding Section 512-11 as
9+7 follows:
10+8 (215 ILCS 5/132) (from Ch. 73, par. 744)
11+9 Sec. 132. Market conduct actions and market analysis and
12+10 non-financial examinations.
13+11 (a) Definitions. As used in this Section:
14+12 "Data call" means a written solicitation by the Director
15+13 to 2 or more regulated companies or persons seeking existing
16+14 data or other existing information to be provided within a
17+15 reasonable time period for a narrow and targeted regulatory
18+16 oversight purpose for market analysis. "Data call" does not
19+17 include an information request in a market conduct action or
20+18 any data or information that the Director shall or may
21+19 specifically require under any other law, except as provided
22+20 by the other law.
23+21 "Desk examination" means an examination that is conducted
24+22 by market conduct surveillance personnel at a location other
25+23 than the regulated company's or person's premises. "Desk
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33-examination" includes an examination performed at the
34-Department's offices with the company or person providing
35-requested documents by hard copy, microfiche, or discs or
36-other electronic media for review without an on-site
37-examination.
38-"Market analysis" means a process whereby market conduct
39-surveillance personnel collect and analyze information from
40-filed schedules, surveys, required reports, data calls, and
41-other sources to develop a baseline understanding of the
42-marketplace and to identify patterns or practices of regulated
43-persons that deviate significantly from the norm or that may
44-pose a potential risk to insurance consumers.
45-"Market conduct action" means any activity, other than
46-market analysis, that the Director may initiate to assess and
47-address the market and nonfinancial practices of regulated
48-persons, including market conduct examinations. The
49-Department's consumer complaint process outlined in 50 Ill.
50-Adm. Code 926 is not a market conduct action for purposes of
51-this Section; however, the Department may initiate market
52-conduct actions based on information gathered during that
53-process. "Market conduct action" includes:
54-(1) correspondence with the company or person;
55-(2) interviews with the company or person;
56-(3) information gathering;
57-(4) policy and procedure reviews;
58-(5) interrogatories;
59-
60-
61-(6) review of company or person self-evaluations and
62-voluntary compliance programs;
63-(7) self-audits; and
64-(8) market conduct examinations.
65-"Market conduct examination" or "examination" means any
66-type of examination, other than a financial examination, that
67-assesses a regulated person's compliance with the laws, rules,
68-and regulations applicable to the examinee. "Market conduct
69-examination" includes comprehensive examinations, targeted
70-examinations, and follow-up examinations, which may be
71-conducted as desk examinations, on-site examinations, or a
72-combination of those 2 methods.
73-"Market conduct surveillance" means market analysis or a
74-market conduct action.
75-"Market conduct surveillance personnel" means those
76-individuals employed or retained by the Department and
77-designated by the Director to collect, analyze, review, or act
78-on information in the insurance marketplace that identifies
79-patterns or practices of persons subject to the Director's
80-jurisdiction. "Market conduct surveillance personnel" includes
81-all persons identified as an examiner in the insurance laws or
82-rules of this State if the Director has designated them to
83-assist her or him in ascertaining the nonfinancial business
84-practices, performance, and operations of a company or person
85-subject to the Director's jurisdiction.
86-"On-site examination" means an examination conducted at
87-
88-
89-the company's or person's home office or the location where
90-the records under review are stored.
91-"SOFR rate" means the Secured Overnight Financing Rate
92-published by the Federal Reserve Bank of New York every
93-business day.
94-(b) Companies and persons subject to surveillance. The
95-Director, for the purposes of ascertaining the nonfinancial
96-business practices, performance, and operations of any person
97-subject to the Director's jurisdiction or within the
98-marketplace, may engage in market conduct actions or market
99-analysis relating to:
100-(1) any company transacting or being organized to
101-transact business in this State;
102-(2) any person engaged in or proposing to be engaged
103-in the organization, promotion, or solicitation of shares
104-or capital contributions to or aiding in the formation of
105-a company;
106-(3) any person having a written or oral contract
107-pertaining to the management or control of a company as
108-general agent, managing agent, or attorney-in-fact;
109-(4) any licensed or registered producer, firm,
110-pharmacy benefit manager, administrator, or any person
111-making application for any license, certificate, or
112-registration;
113-(5) any person engaged in the business of adjusting
114-losses or financing premiums; or
115-
116-
117-(6) any person, organization, trust, or corporation
118-having custody or control of information reasonably
119-related to the operation, performance, or conduct of a
120-company or person subject to the Director's jurisdiction,
121-but only as to the operation, performance, or conduct of a
122-company or person subject to the Director's jurisdiction.
123-(c) Market analysis and market conduct actions.
124-(1) The Director may perform market analysis by
125-gathering and analyzing information from data currently
126-available to the Director, information from surveys, data
127-call responses, or reports that are submitted to the
128-Director, information collected by the NAIC, and
129-information from a variety of other sources to develop a
130-baseline understanding of the marketplace and to identify
131-for further review companies or practices that deviate
132-from the norm or that may pose a potential risk to
133-insurance consumers. The Director shall use the most
134-recent NAIC Market Regulation Handbook as a guide in
135-performing market analysis. The Director may also employ
136-other guidelines or procedures as the Director may deem
137-appropriate.
138-(2) The Director may initiate a market conduct action
139-subject to the following:
140-(A) If the Director determines that further
141-inquiry into a particular person or practice is
142-needed, then the Director may consider undertaking a
143-
144-
145-market conduct action. The Director shall inform the
146-examinee of the initiation of the market conduct
147-action and shall use the most recent NAIC Market
148-Regulation Handbook as a guide in performing the
149-market conduct action. The Director may also employ
150-other guidelines or procedures as the Director may
151-deem appropriate.
152-(B) For an examination, the Director shall conduct
153-a pre-examination conference with the examinee to
154-clarify expectations before commencement of the
155-examination. At the pre-examination conference, the
156-Director or the market conduct surveillance personnel
157-shall disclose the basis of the examination, including
158-the statutes, regulations, or business practices at
159-issue. The Director shall provide at least 30 days'
160-advance notice of the date of the pre-examination
161-conference unless circumstances warrant that the
162-examination proceed more quickly.
163-(C) The Director may coordinate a market conduct
164-action and findings of this State with market conduct
165-actions and findings of other states.
166-(3) Nothing in this Section requires the Director to
167-undertake market analysis before initiating any market
168-conduct action.
169-(4) Nothing in this Section restricts the Director to
170-the type of market conduct action he or she initially
171-
172-
173-selected.
174-(5) A regulated person is required to respond to a
175-market analysis data call or to an information request in
176-a market conduct action on the terms and conditions
177-established by the Director. The Department shall
178-establish reasonable timelines that are commensurate with
179-the volume and nature of the data required to be collected
180-in the information request.
181-(6) Without limiting the contents of any examination
182-report, market conduct actions taken as a result of a
183-market analysis shall focus primarily on the general
184-business practices and compliance activities of companies
185-or persons rather than identifying infrequent or
186-unintentional random errors that do not cause significant
187-consumer harm. The Director may give a company or person
188-an opportunity to resolve matters that are identified as a
189-result of a market analysis to the Director's satisfaction
190-before undertaking a market conduct action against the
191-company or person.
192-(d) Access to books and records. Every examinee and its
193-officers, directors, and agents must provide to the Director
194-convenient and free access at all reasonable hours at its
195-office or location to all books, records, and documents and
196-any or all papers relating to the business, performance,
197-operations, and affairs of the examinee. The officers,
198-directors, and agents of the examinee must facilitate the
199-
200-
201-market conduct action and aid in the action so far as it is in
202-their power to do so. The Director and any authorized market
203-conduct surveillance personnel have the power to administer
204-oaths and examine under oath any person relevant to the
205-business of the examinee. A failure to produce requested
206-books, records, or documents by the deadline shall not be a
207-violation until after the later of:
208-(1) 5 business days after the initial response
209-deadline set by the Director or authorized personnel; or
210-(2) an extended deadline granted by the Director or
211-authorized personnel.
212-(e) Examination report. The market conduct surveillance
213-personnel designated by the Director under Section 402 must
214-make a full and true report of every examination made by them
215-that contains only facts ascertained from the books, papers,
216-records, documents, and other evidence obtained by
217-investigation and examined by them or ascertained from the
218-testimony of officers, agents, or other persons examined under
219-oath concerning the business, affairs, conduct, and
220-performance of the examinee. The report of examination must be
221-verified by the oath of the examiner in charge thereof, and
222-when so verified is prima facie evidence in any action or
223-proceeding in the name of the State against the examinee, its
224-officers, directors, or agents upon the facts stated therein.
225-(f) Examinee response to examination report. The
226-Department and the examinee shall comply with the following
227-
228-
229-timeline, unless a mutual agreement is reached to modify the
230-timeline:
231-(1) The Department shall deliver a draft report to the
232-examinee as soon as reasonably practicable. Nothing in
233-this Section prevents the Department from sharing an
234-earlier draft of the report with the examinee before
235-confirming that the examination is completed.
236-(2) If the examinee chooses to respond with written
237-submissions or rebuttals, then the examinee must do so
238-within 30 days after receipt of any draft report delivered
239-after the completion of the examination.
240-(3) As soon as reasonably practicable after receipt of
241-any written submissions or rebuttals, the Department shall
242-issue a final report. Whenever the Department has made
243-substantive changes to a previously shared draft report,
244-unless those changes remove part or all of an alleged
245-violation or were proposed by the examinee, the Department
246-shall deliver the revised version to the examinee as a new
247-draft and shall allow the examinee 30 days to respond
248-before the Department issues a final report.
249-(4) The examinee shall, within 10 days after the
250-issuance of the final report, accept the final report or
251-request a hearing in writing, unless granted an extension
252-by mutual agreement. Failure to take either action within
253-10 days or the mutually agreed extension shall be deemed
254-an acceptance of the final report. If the examinee accepts
255-
256-
257-the examination report, the Director shall continue to
258-hold the content of the examination report as private and
259-confidential for a period of 30 days. Thereafter, the
260-Director shall open the final report for public
261-inspection.
262-(g) Hearing; final examination report. Notwithstanding
263-anything to the contrary in this Code or Department rules, if
264-the examinee requests a hearing, then the following procedures
265-apply:
266-(1) The examinee must request the hearing in writing
267-and must specify the issues in the final report that the
268-examinee is challenging. The examinee is limited to
269-challenging the issues that were previously challenged in
270-the examinee's written submission and rebuttal or
271-supplemental submission and rebuttal pursuant to
272-paragraphs (2) and (3) of subsection (f).
273-(2) Except as permitted in paragraphs (3) and (8) of
274-this subsection, the hearing shall be limited to the
275-written arguments submitted by the parties to the
276-designated hearing officer. The designated hearing officer
277-may, however, grant a live hearing upon the request of
278-either party.
279-(3) Discovery is limited to the market conduct
280-surveillance personnel's work papers that are relevant to
281-the issues the examinee is challenging. The relevant
282-market conduct surveillance personnel's work papers shall
283-
284-
285-be admitted into the record. No other forms of discovery,
286-including depositions and interrogatories, are allowed,
287-except upon written agreement of the examinee and the
288-Department when necessary to conduct a fair hearing or as
289-otherwise provided in this subsection.
290-(4) Only the examinee and the Department may submit
291-written arguments.
292-(5) The examinee must submit its written argument and
293-any supporting evidence within 30 days after the
294-Department serves a formal notice of hearing.
295-(6) The Department must submit its written response
296-and any supporting evidence within 30 days after the
297-examinee submits its written argument.
298-(7) The designated hearing officer may allow
299-additional written submissions if necessary or useful to
300-the fair resolution of the hearing.
301-(8) If either the examinee or the Department submit
302-written testimony or affidavits, then the opposing party
303-shall be given the opportunity to cross-examine the
304-witness and to submit the cross-examination to the hearing
305-officer before a decision.
306-(9) The Director shall issue a decision accompanied by
307-findings and conclusions. The Director's order is a final
308-administrative decision and shall be served upon the
309-examinee together with a copy of the final report within
310-90 days after the conclusion of the hearing. The hearing
311-
312-
313-is deemed concluded on the later of the last date of any
314-live hearing or the final deadline date for written
315-submissions to the hearing officer, including any
316-continuances or supplemental briefings permitted by the
317-hearing officer.
318-(10) Any portion of the final examination report that
319-was not challenged by the examinee is incorporated into
320-the decision of the Director.
321-(11) Findings of fact and conclusions of law in the
322-Director's final administrative decision are prima facie
323-evidence in any legal or regulatory action.
324-(12) If an examinee has requested a hearing, then the
325-Director shall continue to hold the final report and any
326-related decision as private and confidential for a period
327-of 49 days after the final administrative decision. After
328-the 49-day period expires, the Director shall open the
329-final report and any related decision for public
330-inspection if a court of competent jurisdiction has not
331-stayed its publication.
332-(h) Disclosure. So long as the recipient agrees to and
333-verifies in writing its legal authority to hold the
334-information confidential in a manner consistent with this
335-Section, nothing in this Section prevents the Director from
336-disclosing at any time the content of an examination report,
337-preliminary examination report, or results, or any matter
338-relating to a report or results, to:
339-
340-
341-(1) the insurance regulatory authorities of any other
342-state; or
343-(2) any agency or office of the federal government.
344-(i) Confidentiality.
345-(1) The Director and any other person in the course of
346-market conduct surveillance shall keep confidential all
347-documents, including working papers, third-party models,
348-or products; complaint logs; copies of any documents
349-created, produced, obtained by, or disclosed to the
350-Director, market conduct surveillance personnel, or any
351-other person in the course of market conduct surveillance
352-conducted pursuant to this Section; and all documents
353-obtained by the NAIC pursuant to this Section. The
354-documents shall remain confidential after the termination
355-of the market conduct surveillance, are not subject to
356-subpoena, are not subject to discovery or admissible as
357-evidence in private civil litigation, are not subject to
358-disclosure under the Freedom of Information Act, and must
359-not be made public at any time or used by the Director or
360-any other person, except as provided in paragraphs (3),
361-(4), and (6) of this subsection (i) and in subsection (k).
362-(2) The Director and any other person in the course of
363-market conduct surveillance shall keep confidential any
364-self-evaluation or voluntary compliance program documents
365-disclosed to the Director or other person by an examinee
366-and the data collected via the NAIC market conduct annual
367-
368-
369-statement. The documents are not subject to subpoena, are
370-not subject to discovery or admissible as evidence in
371-private civil litigation, are not subject to disclosure
372-under the Freedom of Information Act, and they shall not
373-be made public or used by the Director or any other person,
374-except as provided in paragraphs (3) and (4) of this
375-subsection (i), in subsection (k), or in Section 155.35.
376-Nothing in this Section shall supersede the restrictions
377-on disclosure under Section 155.35.
378-(3) Notwithstanding paragraphs (1) and (2) of this
379-subsection (i), and consistent with paragraph (5) of this
380-subsection (i), in order to assist in the performance of
381-the Director's duties, the Director may:
382-(A) share documents, materials, communications, or
383-other information, including the confidential and
384-privileged documents, materials, or information
385-described in this subsection (i), with other State,
386-federal, alien, and international regulatory agencies
387-and law enforcement authorities and the NAIC, its
388-affiliates, and subsidiaries, if the recipient agrees
389-to and verifies in writing its legal authority to
390-maintain the confidentiality and privileged status of
391-the document, material, communication, or other
392-information;
393-(B) receive documents, materials, communications,
394-or information, including otherwise confidential and
395-
396-
397-privileged documents, materials, or information, from
398-the NAIC and its affiliates or subsidiaries, and from
399-regulatory and law enforcement officials of other
400-State, federal, alien, or international jurisdictions,
401-authorities, and agencies, and shall maintain as
402-confidential or privileged any document, material,
403-communication, or information received with notice or
404-the understanding that it is confidential or
405-privileged under the laws of the jurisdiction that is
406-the source of the document, material, communication,
407-or information; and
408-(C) enter into agreements governing the sharing
409-and use of information consistent with this Section.
410-(4) Nothing in this Section limits:
411-(A) the Director's authority to use, if consistent
412-with subsection (5) of Section 188.1, as applicable,
413-any final or preliminary examination report, any
414-market conduct surveillance or examinee work papers or
415-other documents, or any other information discovered
416-or developed during the course of any market conduct
417-surveillance in the furtherance of any legal or
418-regulatory action initiated by the Director that the
419-Director may, in the Director's sole discretion, deem
420-appropriate; however, confidential or privileged
421-information about a company or person that is used in
422-the legal or regulatory action shall not be made
423-
424-
425-public except by order of a court of competent
426-jurisdiction or with the written consent of the
427-company or person; or
428-(B) the ability of an examinee to conduct
429-discovery in accordance with paragraph (3) of
430-subsection (g).
431-(5) Disclosure to or by the Director of documents,
432-materials, communications, or information required as part
433-of any type of market conduct surveillance does not waive
434-any applicable privilege or claim of confidentiality in
435-the documents, materials, communications, or information.
436-(6) Notwithstanding the confidentiality requirements
437-of this Section or otherwise imposed by State law, if the
438-Director performs a data call, other than the collection
439-of data for the NAIC market conduct annual statement, the
440-Director may make the results of the data call available
441-for public inspection in an aggregated format that does
442-not disclose information or data attributed to any
443-specific company or person, including the name of any
444-company or person who responded to the data call, so long
445-as the Director provides all companies or persons that
446-responded to the data call 15 days' notice identifying the
447-information to be publicly released. Nothing in this
448-Section requires the Director to publish results from any
449-data call.
450-(j) Corrective actions.
451-
452-
453-(1) As a result of any market conduct action, the
454-Director may take any action the Director considers
455-necessary or appropriate in accordance with the report of
456-examination or any hearing thereon for acts in violation
457-of any law, rule, or prior lawful order of the Director. No
458-corrective action, including a penalty, shall be ordered
459-with respect to violations in transactions with consumers
460-or other entities that are isolated occurrences or that
461-occur with such low frequency as to fall below a
462-reasonable margin of error. Such actions include, but are
463-not limited to:
464-(A) requiring the regulated person to undertake
465-corrective actions to cease and desist an identified
466-violation or institute processes and practices to
467-comply with applicable standards;
468-(B) requiring reimbursement or restitution of any
469-actual losses or damages to persons harmed by the
470-regulated person's violation with interest from the
471-date that the actual loss or damage was incurred,
472-which shall be calculated at the SOFR rate applicable
473-on the date that the actual loss or damage was incurred
474-plus 2%; and
475-(C) imposing civil penalties as provided in this
476-subsection (j).
477-(2) The Director may order a penalty of up to $2,000
478-for each violation of any law, rule, or prior lawful order
479-
480-
481-of the Director. Any failure to respond to an information
482-request in a market conduct action or violation of
483-subsection (d) may carry a fine of up to $1,000 per day up
484-to a maximum of $50,000. Fines and penalties shall be
485-consistent, reasonable, and justifiable, and the Director
486-may consider reasonable criteria in ordering the fines and
487-penalties, including, but not limited to, consumer harm,
488-the intentionality of any violations, or remedial actions
489-already undertaken by the examinee. The Director shall
490-communicate to the examinee the basis for any assessed
491-fine or penalty.
492-(3) If any other provision of this Code or any other
493-law or rule under the Director's jurisdiction prescribes
494-an amount or range of monetary penalty for a violation of a
495-particular statute or rule or a maximum penalty in the
496-aggregate for repeated violations, the Director shall
497-assess penalties pursuant to the terms of the statute or
498-rule allowing the largest penalty.
499-(4) If any other provision of this Code or any other
500-law or rule under the Director's jurisdiction prescribes
501-or specifies a method by which the Director is to
502-determine a violation, then compliance with the process
503-set forth herein shall be deemed to comply with the method
504-prescribed or specified in the other provision.
505-(5) If the Director imposes any sanctions or
506-corrective actions described in subparagraphs (A) through
507-
508-
509-(C) of paragraph (1) of this subsection (j) based on the
510-final report, the Director shall include those actions in
511-a proposed stipulation and consent order enclosed with the
512-final report issued to the examinee under subsection (f).
513-The examinee shall have 10 days to sign the order or
514-request a hearing in writing on the actions proposed in
515-the order regardless of whether the examinee requests a
516-hearing on the contents of the report under subsection
517-(f). If the examinee does not sign the order or request a
518-hearing on the proposed actions or the final report within
519-10 days, the Director may issue a final order imposing the
520-sanctions or corrective actions. Nothing in this Section
521-prevents the Department from sharing an earlier draft of
522-the proposed order with the examinee before issuing the
523-final report.
524-(6) If the examinee accepts the order and the final
525-report, the Director shall hold the content of the order
526-and report as private and confidential for a period of 30
527-days. Thereafter, the Director shall open the order and
528-report for public inspection.
529-(7) If the examinee makes a timely request for a
530-hearing on the order, the request must specify the
531-sanctions or corrective actions in the order that the
532-examinee is challenging. Any hearing shall follow the
533-procedures set forth in paragraphs (2) through (7) of
534-subsection (g).
535-
536-
537-(8) If the examinee has also requested a hearing on
538-the contents of the report, then that hearing shall be
539-consolidated with the hearing on the order. The Director
540-shall not impose sanctions or corrective actions under
541-this Section until the conclusion of the hearing.
542-(9) The Director shall issue a decision accompanied by
543-findings and conclusions along with any corrective actions
544-or sanctions. Any sanctions or corrective actions shall be
545-based on the final report accepted by the examinee or
546-adopted by the Director under paragraph (9) of subsection
547-(g). The Director's order is a final administrative
548-decision and shall be served upon the examinee together
549-with a copy of the final report within 90 days after the
550-conclusion of the hearing or within 10 days after the
551-examinee's acceptance of the proposed order and final
552-report, as applicable. The hearing is deemed concluded on
553-the later of the last date of any live hearing or the final
554-deadline date for written submissions to the hearing
555-officer, including any continuances or supplemental
556-briefings permitted by the hearing officer.
557-(10) If an examinee has requested a hearing under this
558-subsection (i), the Director shall continue to hold the
559-final order and examination report as private and
560-confidential for a period of 49 days after the final
561-administrative decision. After the 49-day period expires,
562-the Director shall open the final order and examination
563-
564-
565-report if a court of competent jurisdiction has not stayed
566-their publication.
567-(k) National market conduct databases. The Director shall
568-collect and report market data to the NAIC's market
569-information systems, including, but not limited to, the
570-Complaint Database System, the Examination Tracking System,
571-and the Regulatory Information Retrieval System, or other
572-successor NAIC products as determined by the Director.
573-Information collected and maintained by the Department for
574-inclusion in these NAIC market information systems shall be
575-compiled in a manner that meets the requirements of the NAIC.
576-Confidential or privileged information collected, reported, or
577-maintained under this subsection (k) shall be subject to the
578-protections and restrictions on disclosure in subsection (i).
579-(l) Immunity of market conduct surveillance personnel.
580-(1) No cause of action shall arise nor shall any
581-liability be imposed against the Director, the Director's
582-authorized representatives, market conduct surveillance
583-personnel, or an examiner appointed by the Director for
584-any statements made or conduct performed in good faith
585-while carrying out the provisions of this Section.
586-(2) No cause of action shall arise nor shall any
587-liability be imposed against any person for the act of
588-communicating or delivering information or data to the
589-Director, the Director's authorized representative, market
590-conduct surveillance personnel, or examiner pursuant to an
591-
592-
593-examination made under this Section, if the act of
594-communication or delivery was performed in good faith and
595-without fraudulent intent or the intent to deceive.
596-(3) A person identified in paragraph (1) of this
597-subsection (l) shall be entitled to an award of attorney's
598-fees and costs if he or she is the prevailing party in a
599-civil cause of action for libel, slander, or any other
600-relevant tort arising out of activities in carrying out
601-the provisions of this Section and the party bringing the
602-action was not substantially justified in doing so. As
603-used in this paragraph, a proceeding is substantially
604-justified if it had a reasonable basis in law or fact at
605-the time it was initiated.
606-(4) This subsection (l) does not abrogate or modify in
607-any way any common law or statutory privilege or immunity
608-heretofore enjoyed by any person identified in paragraph
609-(1) of this subsection (l).
610-(1) The Director, for the purposes of ascertaining the
611-non-financial business practices, performance, and operations
612-of any company, may make examinations of:
613-(a) any company transacting or being organized to
614-transact business in this State;
615-(b) any person engaged in or proposing to be engaged
616-in the organization, promotion, or solicitation of shares
617-or capital contributions to or aiding in the formation of
618-a company;
619-
620-
621-(c) any person having a contract, written or oral,
622-pertaining to the management or control of a company as
623-general agent, managing agent, or attorney-in-fact;
624-(d) any licensed or registered producer, firm, or
625-administrator, or any person, organization, or corporation
626-making application for any licenses or registration;
627-(e) any person engaged in the business of adjusting
628-losses or financing premiums; or
629-(f) any person, organization, trust, or corporation
630-having custody or control of information reasonably
631-related to the operation, performance, or conduct of a
632-company or person subject to the jurisdiction of the
633-Director.
634-(2) Every company or person being examined and its
635-officers, directors, and agents must provide to the Director
636-convenient and free access at all reasonable hours at its
637-office or location to all books, records, documents, and any
638-or all papers relating to the business, performance,
639-operations, and affairs of the company. The officers,
640-directors, and agents of the company or person must facilitate
641-the examination and aid in the examination so far as it is in
642-their power to do so.
643-The Director and any authorized examiner have the power to
644-administer oaths and examine under oath any person relative to
645-the business of the company being examined.
646-(3) The examiners designated by the Director under Section
647-
648-
649-402 must make a full and true report of every examination made
650-by them, which contains only facts ascertained from the books,
651-papers, records, or documents, and other evidence obtained by
652-investigation and examined by them or ascertained from the
653-testimony of officers or agents or other persons examined
654-under oath concerning the business, affairs, conduct, and
655-performance of the company or person. The report of
656-examination must be verified by the oath of the examiner in
657-charge thereof, and when so verified is prima facie evidence
658-in any action or proceeding in the name of the State against
659-the company, its officers, or agents upon the facts stated
660-therein.
661-(4) The Director must notify the company or person made
662-the subject of any examination hereunder of the contents of
663-the verified examination report before filing it and making
664-the report public of any matters relating thereto, and must
665-afford the company or person an opportunity to demand a
666-hearing with reference to the facts and other evidence therein
667-contained.
668-The company or person may request a hearing within 10 days
669-after receipt of the examination report by giving the Director
670-written notice of that request, together with a statement of
671-its objections. The Director must then conduct a hearing in
672-accordance with Sections 402 and 403. He must issue a written
673-order based upon the examination report and upon the hearing
674-within 90 days after the report is filed or within 90 days
675-
676-
677-after the hearing.
678-If the examination reveals that the company is operating
679-in violation of any law, regulation, or prior order, the
680-Director in the written order may require the company or
681-person to take any action he considers necessary or
682-appropriate in accordance with the report of examination or
683-any hearing thereon. The order is subject to judicial review
684-under the Administrative Review Law. The Director may withhold
685-any report from public inspection for such time as he may deem
686-proper and may, after filing the same, publish any part or all
687-of the report as he considers to be in the interest of the
688-public, in one or more newspapers in this State, without
689-expense to the company.
690-(5) Any company which or person who violates or aids and
691-abets any violation of a written order issued under this
692-Section shall be guilty of a business offense and may be fined
693-not more than $5,000. The penalty shall be paid into the
694-General Revenue fund of the State of Illinois.
695-(Source: P.A. 87-108.)
696-(215 ILCS 5/132.5) (from Ch. 73, par. 744.5)
697-Sec. 132.5. Examination reports.
698-(a) General description. All examination reports shall be
699-comprised of only facts appearing upon the books, records, or
700-other documents of the company, its agents, or other persons
701-examined or as ascertained from the testimony of its officers,
702-
703-
704-agents, or other persons examined concerning its affairs and
705-the conclusions and recommendations as the examiners find
706-reasonably warranted from those facts.
707-(b) Filing of examination report. No later than 60 days
708-following completion of the examination, the examiner in
709-charge shall file with the Department a verified written
710-report of examination under oath. Upon receipt of the verified
711-report, the Department shall transmit the report to the
712-company examined, together with a notice that affords the
713-company examined a reasonable opportunity of not more than 30
714-days to make a written submission or rebuttal with respect to
715-any matters contained in the examination report.
716-(c) Adoption of the report on examination. Within 30 days
717-of the end of the period allowed for the receipt of written
718-submissions or rebuttals, the Director shall fully consider
719-and review the report, together with any written submissions
720-or rebuttals and any relevant portions of the examiners work
721-papers and enter an order:
722-(1) Adopting the examination report as filed or with
723-modification or corrections. If the examination report
724-reveals that the company is operating in violation of any
725-law, regulation, or prior order of the Director, the
726-Director may order the company to take any action the
727-Director considers necessary and appropriate to cure the
728-violation.
729-(2) Rejecting the examination report with directions
730-
731-
732-to the examiners to reopen the examination for purposes of
733-obtaining additional data, documentation, or information
734-and refiling under subsection (b).
735-(3) Calling for an investigatory hearing with no less
736-than 20 days notice to the company for purposes of
737-obtaining additional documentation, data, information, and
738-testimony.
739-(d) Order and procedures. All orders entered under
740-paragraph (1) of subsection (c) shall be accompanied by
741-findings and conclusions resulting from the Director's
742-consideration and review of the examination report, relevant
743-examiner work papers, and any written submissions or
744-rebuttals. The order shall be considered a final
745-administrative decision and may be appealed in accordance with
746-the Administrative Review Law. The order shall be served upon
747-the company by certified mail, together with a copy of the
748-adopted examination report. Within 30 days of the issuance of
749-the adopted report, the company shall file affidavits executed
750-by each of its directors stating under oath that they have
751-received a copy of the adopted report and related orders.
752-Any hearing conducted under paragraph (3) of subsection
753-(c) by the Director or an authorized representative shall be
754-conducted as a nonadversarial confidential investigatory
755-proceeding as necessary for the resolution of any
756-inconsistencies, discrepancies, or disputed issues apparent
757-upon the face of the filed examination report or raised by or
758-
759-
760-as a result of the Director's review of relevant work papers or
761-by the written submission or rebuttal of the company. Within
762-20 days of the conclusion of any hearing, the Director shall
763-enter an order under paragraph (1) of subsection (c).
764-The Director shall not appoint an examiner as an
765-authorized representative to conduct the hearing. The hearing
766-shall proceed expeditiously with discovery by the company
767-limited to the examiner's work papers that tend to
768-substantiate any assertions set forth in any written
769-submission or rebuttal. The Director or his representative may
770-issue subpoenas for the attendance of any witnesses or the
771-production of any documents deemed relevant to the
772-investigation, whether under the control of the Department,
773-the company, or other persons. The documents produced shall be
774-included in the record, and testimony taken by the Director or
775-his representative shall be under oath and preserved for the
776-record. Nothing contained in this Section shall require the
777-Department to disclose any information or records that would
778-indicate or show the existence or content of any investigation
779-or activity of a criminal justice agency.
780-The hearing shall proceed with the Director or his
781-representative posing questions to the persons subpoenaed.
782-Thereafter, the company and the Department may present
783-testimony relevant to the investigation. Cross-examination
784-shall be conducted only by the Director or his representative.
785-The company and the Department shall be permitted to make
786-
787-
788-closing statements and may be represented by counsel of their
789-choice.
790-(e) Publication and use. Upon the adoption of the
791-examination report under paragraph (1) of subsection (c), the
792-Director shall continue to hold the content of the examination
793-report as private and confidential information for a period of
794-35 days, except to the extent provided in subsection (b).
795-Thereafter, the Director may open the report for public
796-inspection so long as no court of competent jurisdiction has
797-stayed its publication.
798-Nothing contained in this Code shall prevent or be
799-construed as prohibiting the Director from disclosing the
800-content of an examination report, preliminary examination
801-report or results, or any matter relating thereto, to the
802-insurance department of any other state or country or to law
803-enforcement officials of this or any other state or agency of
804-the federal government at any time, so long as the agency or
805-office receiving the report or matters relating thereto agrees
806-in writing to hold it confidential and in a manner consistent
807-with this Code.
808-In the event the Director determines that regulatory
809-action is appropriate as a result of any examination, he may
810-initiate any proceedings or actions as provided by law.
811-(f) Confidentiality of ancillary information. All working
812-papers, recorded information, documents, and copies thereof
813-produced by, obtained by, or disclosed to the Director or any
814-
815-
816-other person in the course of any examination must be given
817-confidential treatment, are not subject to subpoena, and may
818-not be made public by the Director or any other persons, except
819-to the extent provided in subsection (e). Access may also be
820-granted to the National Association of Insurance
821-Commissioners. Those parties must agree in writing before
822-receiving the information to provide to it the same
823-confidential treatment as required by this Section, unless the
824-prior written consent of the company to which it pertains has
825-been obtained.
826-This subsection (f) applies to market conduct examinations
827-described in Section 132 of this Code.
828-(g) Disclosure. Nothing contained in this Code shall
829-prevent or be construed as prohibiting the Director from
830-disclosing the information described in subsections (e) and
831-(f) to the Illinois Insurance Guaranty Fund regarding any
832-member company defined in Section 534.5 if the member company
833-has an authorized control level event as defined in Section
834-35A-25. The Director may disclose the information described in
835-this subsection so long as the Fund agrees in writing to hold
836-that information confidential, in a manner consistent with
837-this Code, and uses that information to prepare for the
838-possible liquidation of the member company. Access to the
839-information disclosed by the Director to the Fund shall be
840-limited to the Fund's staff and its counsel. The Board of
841-Directors of the Fund may have access to the information
842-
843-
844-disclosed by the Director to the Fund once the member company
845-is subject to a delinquency proceeding under Article XIII
846-subject to any terms and conditions established by the
847-Director.
848-(Source: P.A. 102-929, eff. 5-27-22.)
849-(215 ILCS 5/155.35)
850-Sec. 155.35. Insurance compliance self-evaluative
851-privilege.
852-(a) To encourage insurance companies and persons
853-conducting activities regulated under this Code, both to
854-conduct voluntary internal audits of their compliance programs
855-and management systems and to assess and improve compliance
856-with State and federal statutes, rules, and orders, an
857-insurance compliance self-evaluative privilege is recognized
858-to protect the confidentiality of communications relating to
859-voluntary internal compliance audits. The General Assembly
860-hereby finds and declares that protection of insurance
861-consumers is enhanced by companies' voluntary compliance with
862-this State's insurance and other laws and that the public will
863-benefit from incentives to identify and remedy insurance and
864-other compliance issues. It is further declared that limited
865-expansion of the protection against disclosure will encourage
866-voluntary compliance and improve insurance market conduct
867-quality and that the voluntary provisions of this Section will
868-not inhibit the exercise of the regulatory authority by those
869-
870-
871-entrusted with protecting insurance consumers.
872-(b)(1) An insurance compliance self-evaluative audit
873-document is privileged information and is not admissible as
874-evidence in any legal action in any civil, criminal, or
875-administrative proceeding, except as provided in subsections
876-(c) and (d) of this Section. Documents, communications, data,
877-reports, or other information created as a result of a claim
878-involving personal injury or workers' compensation made
879-against an insurance policy are not insurance compliance
880-self-evaluative audit documents and are admissible as evidence
881-in civil proceedings as otherwise provided by applicable rules
882-of evidence or civil procedure, subject to any applicable
883-statutory or common law privilege, including, but not limited
884-to, the work product doctrine, the attorney-client privilege,
885-or the subsequent remedial measures exclusion.
886-(2) If any company, person, or entity performs or directs
887-the performance of an insurance compliance audit, an officer
888-or employee involved with the insurance compliance audit, or
889-any consultant who is hired for the purpose of performing the
890-insurance compliance audit, may not be examined in any civil,
891-criminal, or administrative proceeding as to the insurance
892-compliance audit or any insurance compliance self-evaluative
893-audit document, as defined in this Section. This subsection
894-(b)(2) does not apply if the privilege set forth in subsection
895-(b)(1) of this Section is determined under subsection (c) or
896-(d) not to apply.
897-
898-
899-(3) A company may voluntarily submit, in connection with
900-examinations conducted under this Article, an insurance
901-compliance self-evaluative audit document to the Director, or
902-his or her designee, as a confidential document under
903-subsection (i) of Section 132 or subsection (f) of Section
904-132.5 of this Code without waiving the privilege set forth in
905-this Section to which the company would otherwise be entitled;
906-provided, however, that the provisions in Sections 132 and
907-subsection (f) of Section 132.5 permitting the Director to
908-make confidential documents public pursuant to subsection (e)
909-of Section 132.5 and grant access to the National Association
910-of Insurance Commissioners shall not apply to the insurance
911-compliance self-evaluative audit document so voluntarily
912-submitted. Nothing contained in this subsection shall give the
913-Director any authority to compel a company to disclose
914-involuntarily or otherwise provide an insurance compliance
915-self-evaluative audit document.
916-(c)(1) The privilege set forth in subsection (b) of this
917-Section does not apply to the extent that it is expressly
918-waived by the company that prepared or caused to be prepared
919-the insurance compliance self-evaluative audit document.
920-(2) In a civil or administrative proceeding, a court of
921-record may, after an in camera review, require disclosure of
922-material for which the privilege set forth in subsection (b)
923-of this Section is asserted, if the court determines one of the
924-following:
925-
926-
927-(A) the privilege is asserted for a fraudulent
928-purpose;
929-(B) the material is not subject to the privilege; or
930-(C) even if subject to the privilege, the material
931-shows evidence of noncompliance with State and federal
932-statutes, rules and orders and the company failed to
933-undertake reasonable corrective action or eliminate the
934-noncompliance within a reasonable time.
935-(3) In a criminal proceeding, a court of record may, after
936-an in camera review, require disclosure of material for which
937-the privilege described in subsection (b) of this Section is
938-asserted, if the court determines one of the following:
939-(A) the privilege is asserted for a fraudulent
940-purpose;
941-(B) the material is not subject to the privilege;
942-(C) even if subject to the privilege, the material
943-shows evidence of noncompliance with State and federal
944-statutes, rules and orders and the company failed to
945-undertake reasonable corrective action or eliminate such
946-noncompliance within a reasonable time; or
947-(D) the material contains evidence relevant to
948-commission of a criminal offense under this Code, and all
949-of the following factors are present:
950-(i) the Director, State's Attorney, or Attorney
951-General has a compelling need for the information;
952-(ii) the information is not otherwise available;
953-
954-
955-and
956-(iii) the Director, State's Attorney, or Attorney
957-General is unable to obtain the substantial equivalent
958-of the information by any means without incurring
959-unreasonable cost and delay.
960-(d)(1) Within 30 days after the Director, State's
961-Attorney, or Attorney General makes a written request by
962-certified mail for disclosure of an insurance compliance
963-self-evaluative audit document under this subsection, the
964-company that prepared or caused the document to be prepared
965-may file with the appropriate court a petition requesting an
966-in camera hearing on whether the insurance compliance
967-self-evaluative audit document or portions of the document are
968-privileged under this Section or subject to disclosure. The
969-court has jurisdiction over a petition filed by a company
970-under this subsection requesting an in camera hearing on
971-whether the insurance compliance self-evaluative audit
972-document or portions of the document are privileged or subject
973-to disclosure. Failure by the company to file a petition
974-waives the privilege.
975-(2) A company asserting the insurance compliance
976-self-evaluative privilege in response to a request for
977-disclosure under this subsection shall include in its request
978-for an in camera hearing all of the information set forth in
979-subsection (d)(5) of this Section.
980-(3) Upon the filing of a petition under this subsection,
981-
982-
983-the court shall issue an order scheduling, within 45 days
984-after the filing of the petition, an in camera hearing to
985-determine whether the insurance compliance self-evaluative
986-audit document or portions of the document are privileged
987-under this Section or subject to disclosure.
988-(4) The court, after an in camera review, may require
989-disclosure of material for which the privilege in subsection
990-(b) of this Section is asserted if the court determines, based
991-upon its in camera review, that any one of the conditions set
992-forth in subsection (c)(2)(A) through (C) is applicable as to
993-a civil or administrative proceeding or that any one of the
994-conditions set forth in subsection (c)(3)(A) through (D) is
995-applicable as to a criminal proceeding. Upon making such a
996-determination, the court may only compel the disclosure of
997-those portions of an insurance compliance self-evaluative
998-audit document relevant to issues in dispute in the underlying
999-proceeding. Any compelled disclosure will not be considered to
1000-be a public document or be deemed to be a waiver of the
1001-privilege for any other civil, criminal, or administrative
1002-proceeding. A party unsuccessfully opposing disclosure may
1003-apply to the court for an appropriate order protecting the
1004-document from further disclosure.
1005-(5) A company asserting the insurance compliance
1006-self-evaluative privilege in response to a request for
1007-disclosure under this subsection (d) shall provide to the
1008-Director, State's Attorney, or Attorney General, as the case
1009-
1010-
1011-may be, at the time of filing any objection to the disclosure,
1012-all of the following information:
1013-(A) The date of the insurance compliance
1014-self-evaluative audit document.
1015-(B) The identity of the entity conducting the audit.
1016-(C) The general nature of the activities covered by
1017-the insurance compliance audit.
1018-(D) An identification of the portions of the insurance
1019-compliance self-evaluative audit document for which the
1020-privilege is being asserted.
1021-(e) (1) A company asserting the insurance compliance
1022-self-evaluative privilege set forth in subsection (b) of this
1023-Section has the burden of demonstrating the applicability of
1024-the privilege. Once a company has established the
1025-applicability of the privilege, a party seeking disclosure
1026-under subsections (c)(2)(A) or (C) of this Section has the
1027-burden of proving that the privilege is asserted for a
1028-fraudulent purpose or that the company failed to undertake
1029-reasonable corrective action or eliminate the noncompliance
1030-with a reasonable time. The Director, State's Attorney, or
1031-Attorney General seeking disclosure under subsection (c)(3) of
1032-this Section has the burden of proving the elements set forth
1033-in subsection (c)(3) of this Section.
1034-(2) The parties may at any time stipulate in proceedings
1035-under subsections (c) or (d) of this Section to entry of an
1036-order directing that specific information contained in an
1037-
1038-
1039-insurance compliance self-evaluative audit document is or is
1040-not subject to the privilege provided under subsection (b) of
1041-this Section.
1042-(f) The privilege set forth in subsection (b) of this
1043-Section shall not extend to any of the following:
1044-(1) documents, communications, data, reports, or other
1045-information required to be collected, developed,
1046-maintained, reported, or otherwise made available to a
1047-regulatory agency pursuant to this Code, or other federal
1048-or State law, rule, or order;
1049-(2) information obtained by observation or monitoring
1050-by any regulatory agency; or
1051-(3) information obtained from a source independent of
1052-the insurance compliance audit.
1053-(g) As used in this Section:
1054-(1) "Insurance compliance audit" means a voluntary,
1055-internal evaluation, review, assessment, or audit not
1056-otherwise expressly required by law of a company or an
1057-activity regulated under this Code, or other State or
1058-federal law applicable to a company, or of management
1059-systems related to the company or activity, that is
1060-designed to identify and prevent noncompliance and to
1061-improve compliance with those statutes, rules, or orders.
1062-An insurance compliance audit may be conducted by the
1063-company, its employees, or by independent contractors.
1064-(2) "Insurance compliance self-evaluative audit
1065-
1066-
1067-document" means documents prepared as a result of or in
1068-connection with and not prior to an insurance compliance
1069-audit. An insurance compliance self-evaluation audit
1070-document may include a written response to the findings of
1071-an insurance compliance audit. An insurance compliance
1072-self-evaluative audit document may include, but is not
1073-limited to, as applicable, field notes and records of
1074-observations, findings, opinions, suggestions,
1075-conclusions, drafts, memoranda, drawings, photographs,
1076-computer-generated or electronically recorded
1077-information, phone records, maps, charts, graphs, and
1078-surveys, provided this supporting information is collected
1079-or developed for the primary purpose and in the course of
1080-an insurance compliance audit. An insurance compliance
1081-self-evaluative audit document may also include any of the
1082-following:
1083-(A) an insurance compliance audit report prepared
1084-by an auditor, who may be an employee of the company or
1085-an independent contractor, which may include the scope
1086-of the audit, the information gained in the audit, and
1087-conclusions and recommendations, with exhibits and
1088-appendices;
1089-(B) memoranda and documents analyzing portions or
1090-all of the insurance compliance audit report and
1091-discussing potential implementation issues;
1092-(C) an implementation plan that addresses
1093-
1094-
1095-correcting past noncompliance, improving current
1096-compliance, and preventing future noncompliance; or
1097-(D) analytic data generated in the course of
1098-conducting the insurance compliance audit.
1099-(3) "Company" has the same meaning as provided in
1100-Section 2 of this Code.
1101-(h) Nothing in this Section shall limit, waive, or
1102-abrogate the scope or nature of any statutory or common law
1103-privilege including, but not limited to, the work product
1104-doctrine, the attorney-client privilege, or the subsequent
1105-remedial measures exclusion.
1106-(Source: P.A. 90-499, eff. 8-19-97; 90-655, eff. 7-30-98.)
1107-(215 ILCS 5/402) (from Ch. 73, par. 1014)
1108-Sec. 402. Examinations, investigations and hearings. (1)
1109-All examinations, investigations and hearings provided for by
1110-this Code may be conducted either by the Director personally,
1111-or by one or more of the actuaries, technical advisors,
1112-deputies, supervisors or examiners employed or retained by the
1113-Department and designated by the Director for such purpose.
1114-When necessary to supplement its examination procedures, the
1115-Department may retain independent actuaries deemed competent
1116-by the Director, independent certified public accountants, or
1117-qualified examiners of insurance companies, or other qualified
1118-outside professional assistance deemed competent by the
1119-Director, or any combination of the foregoing, the cost of
1120-
1121-
1122-which shall be borne by the company or person being examined.
1123-The Director may compensate independent actuaries, certified
1124-public accountants, and qualified examiners, and other
1125-qualified outside professional assistance retained for
1126-supplementing examination procedures in amounts not to exceed
1127-the reasonable and customary charges for such services. The
1128-Director may also accept as a part of the Department's
1129-examination of any company or person (a) a report by an
1130-independent actuary deemed competent by the Director or (b) a
1131-report of an audit made by an independent certified public
1132-accountant. Neither those persons so designated nor any
1133-members of their immediate families shall be officers of,
1134-connected with, or financially interested in any company other
1135-than as policyholders, nor shall they be financially
1136-interested in any other corporation or person affected by the
1137-examination, investigation or hearing.
1138-(2) All hearings provided for in this Code shall, unless
1139-otherwise specially provided, be held at such time and place
1140-as shall be designated in a notice which shall be given by the
1141-Director in writing to the person or company whose interests
1142-are affected, at least 10 days before the date designated
1143-therein. The notice shall state the subject of inquiry and the
1144-specific charges, if any. The hearings shall be held in the
1145-City of Springfield, the City of Chicago, or in the county
1146-where the principal business address of the person or company
1147-affected is located.
1148-
1149-
1150-(Source: P.A. 87-757.)
1151-(215 ILCS 5/408) (from Ch. 73, par. 1020)
1152-(Text of Section before amendment by P.A. 103-75)
1153-Sec. 408. Fees and charges.
1154-(1) The Director shall charge, collect and give proper
1155-acquittances for the payment of the following fees and
1156-charges:
1157-(a) For filing all documents submitted for the
1158-incorporation or organization or certification of a
1159-domestic company, except for a fraternal benefit society,
1160-$2,000.
1161-(b) For filing all documents submitted for the
1162-incorporation or organization of a fraternal benefit
1163-society, $500.
1164-(c) For filing amendments to articles of incorporation
1165-and amendments to declaration of organization, except for
1166-a fraternal benefit society, a mutual benefit association,
1167-a burial society or a farm mutual, $200.
1168-(d) For filing amendments to articles of incorporation
1169-of a fraternal benefit society, a mutual benefit
1170-association or a burial society, $100.
1171-(e) For filing amendments to articles of incorporation
1172-of a farm mutual, $50.
1173-(f) For filing bylaws or amendments thereto, $50.
1174-(g) For filing agreement of merger or consolidation:
1175-
1176-
1177-(i) for a domestic company, except for a fraternal
1178-benefit society, a mutual benefit association, a
1179-burial society, or a farm mutual, $2,000.
1180-(ii) for a foreign or alien company, except for a
1181-fraternal benefit society, $600.
1182-(iii) for a fraternal benefit society, a mutual
1183-benefit association, a burial society, or a farm
1184-mutual, $200.
1185-(h) For filing agreements of reinsurance by a domestic
1186-company, $200.
1187-(i) For filing all documents submitted by a foreign or
1188-alien company to be admitted to transact business or
1189-accredited as a reinsurer in this State, except for a
1190-fraternal benefit society, $5,000.
1191-(j) For filing all documents submitted by a foreign or
1192-alien fraternal benefit society to be admitted to transact
1193-business in this State, $500.
1194-(k) For filing declaration of withdrawal of a foreign
1195-or alien company, $50.
1196-(l) For filing annual statement by a domestic company,
1197-except a fraternal benefit society, a mutual benefit
1198-association, a burial society, or a farm mutual, $200.
1199-(m) For filing annual statement by a domestic
1200-fraternal benefit society, $100.
1201-(n) For filing annual statement by a farm mutual, a
1202-mutual benefit association, or a burial society, $50.
1203-
1204-
1205-(o) For issuing a certificate of authority or renewal
1206-thereof except to a foreign fraternal benefit society,
1207-$400.
1208-(p) For issuing a certificate of authority or renewal
1209-thereof to a foreign fraternal benefit society, $200.
1210-(q) For issuing an amended certificate of authority,
1211-$50.
1212-(r) For each certified copy of certificate of
1213-authority, $20.
1214-(s) For each certificate of deposit, or valuation, or
1215-compliance or surety certificate, $20.
1216-(t) For copies of papers or records per page, $1.
1217-(u) For each certification to copies of papers or
1218-records, $10.
1219-(v) For multiple copies of documents or certificates
1220-listed in subparagraphs (r), (s), and (u) of paragraph (1)
1221-of this Section, $10 for the first copy of a certificate of
1222-any type and $5 for each additional copy of the same
1223-certificate requested at the same time, unless, pursuant
1224-to paragraph (2) of this Section, the Director finds these
1225-additional fees excessive.
1226-(w) For issuing a permit to sell shares or increase
1227-paid-up capital:
1228-(i) in connection with a public stock offering,
1229-$300;
1230-(ii) in any other case, $100.
1231-
1232-
1233-(x) For issuing any other certificate required or
1234-permissible under the law, $50.
1235-(y) For filing a plan of exchange of the stock of a
1236-domestic stock insurance company, a plan of
1237-demutualization of a domestic mutual company, or a plan of
1238-reorganization under Article XII, $2,000.
1239-(z) For filing a statement of acquisition of a
1240-domestic company as defined in Section 131.4 of this Code,
1241-$2,000.
1242-(aa) For filing an agreement to purchase the business
1243-of an organization authorized under the Dental Service
1244-Plan Act or the Voluntary Health Services Plans Act or of a
1245-health maintenance organization or a limited health
1246-service organization, $2,000.
1247-(bb) For filing a statement of acquisition of a
1248-foreign or alien insurance company as defined in Section
1249-131.12a of this Code, $1,000.
1250-(cc) For filing a registration statement as required
1251-in Sections 131.13 and 131.14, the notification as
1252-required by Sections 131.16, 131.20a, or 141.4, or an
1253-agreement or transaction required by Sections 124.2(2),
1254-141, 141a, or 141.1, $200.
1255-(dd) For filing an application for licensing of:
1256-(i) a religious or charitable risk pooling trust
1257-or a workers' compensation pool, $1,000;
1258-(ii) a workers' compensation service company,
1259-
1260-
1261-$500;
1262-(iii) a self-insured automobile fleet, $200; or
1263-(iv) a renewal of or amendment of any license
1264-issued pursuant to (i), (ii), or (iii) above, $100.
1265-(ee) For filing articles of incorporation for a
1266-syndicate to engage in the business of insurance through
1267-the Illinois Insurance Exchange, $2,000.
1268-(ff) For filing amended articles of incorporation for
1269-a syndicate engaged in the business of insurance through
1270-the Illinois Insurance Exchange, $100.
1271-(gg) For filing articles of incorporation for a
1272-limited syndicate to join with other subscribers or
1273-limited syndicates to do business through the Illinois
1274-Insurance Exchange, $1,000.
1275-(hh) For filing amended articles of incorporation for
1276-a limited syndicate to do business through the Illinois
1277-Insurance Exchange, $100.
1278-(ii) For a permit to solicit subscriptions to a
1279-syndicate or limited syndicate, $100.
1280-(jj) For the filing of each form as required in
1281-Section 143 of this Code, $50 per form. Informational and
1282-advertising filings shall be $25 per filing. The fee for
1283-advisory and rating organizations shall be $200 per form.
1284-(i) For the purposes of the form filing fee,
1285-filings made on insert page basis will be considered
1286-one form at the time of its original submission.
1287-
1288-
1289-Changes made to a form subsequent to its approval
1290-shall be considered a new filing.
1291-(ii) Only one fee shall be charged for a form,
1292-regardless of the number of other forms or policies
1293-with which it will be used.
1294-(iii) Fees charged for a policy filed as it will be
1295-issued regardless of the number of forms comprising
1296-that policy shall not exceed $1,500. For advisory or
1297-rating organizations, fees charged for a policy filed
1298-as it will be issued regardless of the number of forms
1299-comprising that policy shall not exceed $2,500.
1300-(iv) The Director may by rule exempt forms from
1301-such fees.
1302-(kk) For filing an application for licensing of a
1303-reinsurance intermediary, $500.
1304-(ll) For filing an application for renewal of a
1305-license of a reinsurance intermediary, $200.
1306-(mm) For filing a plan of division of a domestic stock
1307-company under Article IIB, $10,000.
1308-(nn) For filing all documents submitted by a foreign
1309-or alien company to be a certified reinsurer in this
1310-State, except for a fraternal benefit society, $1,000.
1311-(oo) For filing a renewal by a foreign or alien
1312-company to be a certified reinsurer in this State, except
1313-for a fraternal benefit society, $400.
1314-(pp) For filing all documents submitted by a reinsurer
1315-
1316-
1317-domiciled in a reciprocal jurisdiction, $1,000.
1318-(qq) For filing a renewal by a reinsurer domiciled in
1319-a reciprocal jurisdiction, $400.
1320-(rr) For registering a captive management company or
1321-renewal thereof, $50.
1322-(2) When printed copies or numerous copies of the same
1323-paper or records are furnished or certified, the Director may
1324-reduce such fees for copies if he finds them excessive. He may,
1325-when he considers it in the public interest, furnish without
1326-charge to state insurance departments and persons other than
1327-companies, copies or certified copies of reports of
1328-examinations and of other papers and records.
1329-(3)(a) The expenses incurred in any performance
1330-examination authorized by law shall be paid by the company or
1331-person being examined. The charge shall be consistent with
1332-that otherwise authorized by law and shall be reasonably
1333-related to the cost of the examination including but not
1334-limited to compensation of examiners, electronic data
1335-processing costs, supervision and preparation of an
1336-examination report and lodging and travel expenses. All
1337-lodging and travel expenses shall be in accord with the
1338-applicable travel regulations as published by the Department
1339-of Central Management Services and approved by the Governor's
1340-Travel Control Board, except that out-of-state lodging and
1341-travel expenses related to examinations authorized under
1342-Section 132 shall be in accordance with travel rates
1343-
1344-
1345-prescribed under paragraph 301-7.2 of the Federal Travel
1346-Regulations, 41 C.F.R. 301-7.2, for reimbursement of
1347-subsistence expenses incurred during official travel. All
1348-lodging and travel expenses may be reimbursed directly upon
1349-authorization of the Director. With the exception of the
1350-direct reimbursements authorized by the Director, all
1351-performance examination charges collected by the Department
1352-shall be paid to the Insurance Producer Administration Fund,
1353-however, the electronic data processing costs incurred by the
1354-Department in the performance of any examination shall be
1355-billed directly to the company being examined for payment to
1356-the Technology Management Revolving Fund.
1357-(b) The costs and fees incurred in a market conduct
1358-examination shall be itemized and bills shall be provided to
1359-the examinee on a monthly basis for review prior to submission
1360-for payment. The Director shall review and affirmatively
1361-endorse detailed billings from any contracted, qualified
1362-outside professional assistance retained under Section 402 for
1363-market conduct examinations before the detailed billings are
1364-sent to the examinee. Before any qualified outside
1365-professional assistance conducts billable work on an
1366-examination, the Department shall disclose to the examinee the
1367-terms of the contracts with the qualified outside professional
1368-assistance that will be used, including the fees and hourly
1369-rates that can be charged.
1370-(4) At the time of any service of process on the Director
1371-
1372-
1373-as attorney for such service, the Director shall charge and
1374-collect the sum of $40, which may be recovered as taxable costs
1375-by the party to the suit or action causing such service to be
1376-made if he prevails in such suit or action.
1377-(5) (a) The costs incurred by the Department of Insurance
1378-in conducting any hearing authorized by law shall be assessed
1379-against the parties to the hearing in such proportion as the
1380-Director of Insurance may determine upon consideration of all
1381-relevant circumstances including: (1) the nature of the
1382-hearing; (2) whether the hearing was instigated by, or for the
1383-benefit of a particular party or parties; (3) whether there is
1384-a successful party on the merits of the proceeding; and (4) the
1385-relative levels of participation by the parties.
1386-(b) For purposes of this subsection (5) costs incurred
1387-shall mean the hearing officer fees, court reporter fees, and
1388-travel expenses of Department of Insurance officers and
1389-employees; provided however, that costs incurred shall not
1390-include hearing officer fees or court reporter fees unless the
1391-Department has retained the services of independent
1392-contractors or outside experts to perform such functions.
1393-(c) The Director shall make the assessment of costs
1394-incurred as part of the final order or decision arising out of
1395-the proceeding; provided, however, that such order or decision
1396-shall include findings and conclusions in support of the
1397-assessment of costs. This subsection (5) shall not be
1398-construed as permitting the payment of travel expenses unless
1399-
1400-
1401-calculated in accordance with the applicable travel
1402-regulations of the Department of Central Management Services,
1403-as approved by the Governor's Travel Control Board. The
1404-Director as part of such order or decision shall require all
1405-assessments for hearing officer fees and court reporter fees,
1406-if any, to be paid directly to the hearing officer or court
1407-reporter by the party(s) assessed for such costs. The
1408-assessments for travel expenses of Department officers and
1409-employees shall be reimbursable to the Director of Insurance
1410-for deposit to the fund out of which those expenses had been
1411-paid.
1412-(d) The provisions of this subsection (5) shall apply in
1413-the case of any hearing conducted by the Director of Insurance
1414-not otherwise specifically provided for by law.
1415-(6) The Director shall charge and collect an annual
1416-financial regulation fee from every domestic company for
1417-examination and analysis of its financial condition and to
1418-fund the internal costs and expenses of the Interstate
1419-Insurance Receivership Commission as may be allocated to the
1420-State of Illinois and companies doing an insurance business in
1421-this State pursuant to Article X of the Interstate Insurance
1422-Receivership Compact. The fee shall be the greater fixed
1423-amount based upon the combination of nationwide direct premium
1424-income and nationwide reinsurance assumed premium income or
1425-upon admitted assets calculated under this subsection as
1426-follows:
1427-
1428-
1429-(a) Combination of nationwide direct premium income
1430-and nationwide reinsurance assumed premium.
1431-(i) $150, if the premium is less than $500,000 and
1432-there is no reinsurance assumed premium;
1433-(ii) $750, if the premium is $500,000 or more, but
1434-less than $5,000,000 and there is no reinsurance
1435-assumed premium; or if the premium is less than
1436-$5,000,000 and the reinsurance assumed premium is less
1437-than $10,000,000;
1438-(iii) $3,750, if the premium is less than
1439-$5,000,000 and the reinsurance assumed premium is
1440-$10,000,000 or more;
1441-(iv) $7,500, if the premium is $5,000,000 or more,
1442-but less than $10,000,000;
1443-(v) $18,000, if the premium is $10,000,000 or
1444-more, but less than $25,000,000;
1445-(vi) $22,500, if the premium is $25,000,000 or
1446-more, but less than $50,000,000;
1447-(vii) $30,000, if the premium is $50,000,000 or
1448-more, but less than $100,000,000;
1449-(viii) $37,500, if the premium is $100,000,000 or
1450-more.
1451-(b) Admitted assets.
1452-(i) $150, if admitted assets are less than
1453-$1,000,000;
1454-(ii) $750, if admitted assets are $1,000,000 or
1455-
1456-
1457-more, but less than $5,000,000;
1458-(iii) $3,750, if admitted assets are $5,000,000 or
1459-more, but less than $25,000,000;
1460-(iv) $7,500, if admitted assets are $25,000,000 or
1461-more, but less than $50,000,000;
1462-(v) $18,000, if admitted assets are $50,000,000 or
1463-more, but less than $100,000,000;
1464-(vi) $22,500, if admitted assets are $100,000,000
1465-or more, but less than $500,000,000;
1466-(vii) $30,000, if admitted assets are $500,000,000
1467-or more, but less than $1,000,000,000;
1468-(viii) $37,500, if admitted assets are
1469-$1,000,000,000 or more.
1470-(c) The sum of financial regulation fees charged to
1471-the domestic companies of the same affiliated group shall
1472-not exceed $250,000 in the aggregate in any single year
1473-and shall be billed by the Director to the member company
1474-designated by the group.
1475-(7) The Director shall charge and collect an annual
1476-financial regulation fee from every foreign or alien company,
1477-except fraternal benefit societies, for the examination and
1478-analysis of its financial condition and to fund the internal
1479-costs and expenses of the Interstate Insurance Receivership
1480-Commission as may be allocated to the State of Illinois and
1481-companies doing an insurance business in this State pursuant
1482-to Article X of the Interstate Insurance Receivership Compact.
1483-
1484-
1485-The fee shall be a fixed amount based upon Illinois direct
1486-premium income and nationwide reinsurance assumed premium
1487-income in accordance with the following schedule:
1488-(a) $150, if the premium is less than $500,000 and
1489-there is no reinsurance assumed premium;
1490-(b) $750, if the premium is $500,000 or more, but less
1491-than $5,000,000 and there is no reinsurance assumed
1492-premium; or if the premium is less than $5,000,000 and the
1493-reinsurance assumed premium is less than $10,000,000;
1494-(c) $3,750, if the premium is less than $5,000,000 and
1495-the reinsurance assumed premium is $10,000,000 or more;
1496-(d) $7,500, if the premium is $5,000,000 or more, but
1497-less than $10,000,000;
1498-(e) $18,000, if the premium is $10,000,000 or more,
1499-but less than $25,000,000;
1500-(f) $22,500, if the premium is $25,000,000 or more,
1501-but less than $50,000,000;
1502-(g) $30,000, if the premium is $50,000,000 or more,
1503-but less than $100,000,000;
1504-(h) $37,500, if the premium is $100,000,000 or more.
1505-The sum of financial regulation fees under this subsection
1506-(7) charged to the foreign or alien companies within the same
1507-affiliated group shall not exceed $250,000 in the aggregate in
1508-any single year and shall be billed by the Director to the
1509-member company designated by the group.
1510-(8) Beginning January 1, 1992, the financial regulation
1511-
1512-
1513-fees imposed under subsections (6) and (7) of this Section
1514-shall be paid by each company or domestic affiliated group
1515-annually. After January 1, 1994, the fee shall be billed by
1516-Department invoice based upon the company's premium income or
1517-admitted assets as shown in its annual statement for the
1518-preceding calendar year. The invoice is due upon receipt and
1519-must be paid no later than June 30 of each calendar year. All
1520-financial regulation fees collected by the Department shall be
1521-paid to the Insurance Financial Regulation Fund. The
1522-Department may not collect financial examiner per diem charges
1523-from companies subject to subsections (6) and (7) of this
1524-Section undergoing financial examination after June 30, 1992.
1525-(9) In addition to the financial regulation fee required
1526-by this Section, a company undergoing any financial
1527-examination authorized by law shall pay the following costs
1528-and expenses incurred by the Department: electronic data
1529-processing costs, the expenses authorized under Section 131.21
1530-and subsection (d) of Section 132.4 of this Code, and lodging
1531-and travel expenses.
1532-Electronic data processing costs incurred by the
1533-Department in the performance of any examination shall be
1534-billed directly to the company undergoing examination for
1535-payment to the Technology Management Revolving Fund. Except
1536-for direct reimbursements authorized by the Director or direct
1537-payments made under Section 131.21 or subsection (d) of
1538-Section 132.4 of this Code, all financial regulation fees and
1539-
1540-
1541-all financial examination charges collected by the Department
1542-shall be paid to the Insurance Financial Regulation Fund.
1543-All lodging and travel expenses shall be in accordance
1544-with applicable travel regulations published by the Department
1545-of Central Management Services and approved by the Governor's
1546-Travel Control Board, except that out-of-state lodging and
1547-travel expenses related to examinations authorized under
1548-Sections 132.1 through 132.7 shall be in accordance with
1549-travel rates prescribed under paragraph 301-7.2 of the Federal
1550-Travel Regulations, 41 C.F.R. 301-7.2, for reimbursement of
1551-subsistence expenses incurred during official travel. All
1552-lodging and travel expenses may be reimbursed directly upon
1553-the authorization of the Director.
1554-In the case of an organization or person not subject to the
1555-financial regulation fee, the expenses incurred in any
1556-financial examination authorized by law shall be paid by the
1557-organization or person being examined. The charge shall be
1558-reasonably related to the cost of the examination including,
1559-but not limited to, compensation of examiners and other costs
1560-described in this subsection.
1561-(10) Any company, person, or entity failing to make any
1562-payment of $150 or more as required under this Section shall be
1563-subject to the penalty and interest provisions provided for in
1564-subsections (4) and (7) of Section 412.
1565-(11) Unless otherwise specified, all of the fees collected
1566-under this Section shall be paid into the Insurance Financial
1567-
1568-
1569-Regulation Fund.
1570-(12) For purposes of this Section:
1571-(a) "Domestic company" means a company as defined in
1572-Section 2 of this Code which is incorporated or organized
1573-under the laws of this State, and in addition includes a
1574-not-for-profit corporation authorized under the Dental
1575-Service Plan Act or the Voluntary Health Services Plans
1576-Act, a health maintenance organization, and a limited
1577-health service organization.
1578-(b) "Foreign company" means a company as defined in
1579-Section 2 of this Code which is incorporated or organized
1580-under the laws of any state of the United States other than
1581-this State and in addition includes a health maintenance
1582-organization and a limited health service organization
1583-which is incorporated or organized under the laws of any
1584-state of the United States other than this State.
1585-(c) "Alien company" means a company as defined in
1586-Section 2 of this Code which is incorporated or organized
1587-under the laws of any country other than the United
1588-States.
1589-(d) "Fraternal benefit society" means a corporation,
1590-society, order, lodge or voluntary association as defined
1591-in Section 282.1 of this Code.
1592-(e) "Mutual benefit association" means a company,
1593-association or corporation authorized by the Director to
1594-do business in this State under the provisions of Article
1595-
1596-
1597-XVIII of this Code.
1598-(f) "Burial society" means a person, firm,
1599-corporation, society or association of individuals
1600-authorized by the Director to do business in this State
1601-under the provisions of Article XIX of this Code.
1602-(g) "Farm mutual" means a district, county and
1603-township mutual insurance company authorized by the
1604-Director to do business in this State under the provisions
1605-of the Farm Mutual Insurance Company Act of 1986.
1606-(Source: P.A. 102-775, eff. 5-13-22.)
1607-(Text of Section after amendment by P.A. 103-75)
1608-Sec. 408. Fees and charges.
1609-(1) The Director shall charge, collect and give proper
1610-acquittances for the payment of the following fees and
1611-charges:
1612-(a) For filing all documents submitted for the
1613-incorporation or organization or certification of a
1614-domestic company, except for a fraternal benefit society,
1615-$2,000.
1616-(b) For filing all documents submitted for the
1617-incorporation or organization of a fraternal benefit
1618-society, $500.
1619-(c) For filing amendments to articles of incorporation
1620-and amendments to declaration of organization, except for
1621-a fraternal benefit society, a mutual benefit association,
1622-
1623-
1624-a burial society or a farm mutual, $200.
1625-(d) For filing amendments to articles of incorporation
1626-of a fraternal benefit society, a mutual benefit
1627-association or a burial society, $100.
1628-(e) For filing amendments to articles of incorporation
1629-of a farm mutual, $50.
1630-(f) For filing bylaws or amendments thereto, $50.
1631-(g) For filing agreement of merger or consolidation:
1632-(i) for a domestic company, except for a fraternal
1633-benefit society, a mutual benefit association, a
1634-burial society, or a farm mutual, $2,000.
1635-(ii) for a foreign or alien company, except for a
1636-fraternal benefit society, $600.
1637-(iii) for a fraternal benefit society, a mutual
1638-benefit association, a burial society, or a farm
1639-mutual, $200.
1640-(h) For filing agreements of reinsurance by a domestic
1641-company, $200.
1642-(i) For filing all documents submitted by a foreign or
1643-alien company to be admitted to transact business or
1644-accredited as a reinsurer in this State, except for a
1645-fraternal benefit society, $5,000.
1646-(j) For filing all documents submitted by a foreign or
1647-alien fraternal benefit society to be admitted to transact
1648-business in this State, $500.
1649-(k) For filing declaration of withdrawal of a foreign
1650-
1651-
1652-or alien company, $50.
1653-(l) For filing annual statement by a domestic company,
1654-except a fraternal benefit society, a mutual benefit
1655-association, a burial society, or a farm mutual, $200.
1656-(m) For filing annual statement by a domestic
1657-fraternal benefit society, $100.
1658-(n) For filing annual statement by a farm mutual, a
1659-mutual benefit association, or a burial society, $50.
1660-(o) For issuing a certificate of authority or renewal
1661-thereof except to a foreign fraternal benefit society,
1662-$400.
1663-(p) For issuing a certificate of authority or renewal
1664-thereof to a foreign fraternal benefit society, $200.
1665-(q) For issuing an amended certificate of authority,
1666-$50.
1667-(r) For each certified copy of certificate of
1668-authority, $20.
1669-(s) For each certificate of deposit, or valuation, or
1670-compliance or surety certificate, $20.
1671-(t) For copies of papers or records per page, $1.
1672-(u) For each certification to copies of papers or
1673-records, $10.
1674-(v) For multiple copies of documents or certificates
1675-listed in subparagraphs (r), (s), and (u) of paragraph (1)
1676-of this Section, $10 for the first copy of a certificate of
1677-any type and $5 for each additional copy of the same
1678-
1679-
1680-certificate requested at the same time, unless, pursuant
1681-to paragraph (2) of this Section, the Director finds these
1682-additional fees excessive.
1683-(w) For issuing a permit to sell shares or increase
1684-paid-up capital:
1685-(i) in connection with a public stock offering,
1686-$300;
1687-(ii) in any other case, $100.
1688-(x) For issuing any other certificate required or
1689-permissible under the law, $50.
1690-(y) For filing a plan of exchange of the stock of a
1691-domestic stock insurance company, a plan of
1692-demutualization of a domestic mutual company, or a plan of
1693-reorganization under Article XII, $2,000.
1694-(z) For filing a statement of acquisition of a
1695-domestic company as defined in Section 131.4 of this Code,
1696-$2,000.
1697-(aa) For filing an agreement to purchase the business
1698-of an organization authorized under the Dental Service
1699-Plan Act or the Voluntary Health Services Plans Act or of a
1700-health maintenance organization or a limited health
1701-service organization, $2,000.
1702-(bb) For filing a statement of acquisition of a
1703-foreign or alien insurance company as defined in Section
1704-131.12a of this Code, $1,000.
1705-(cc) For filing a registration statement as required
1706-
1707-
1708-in Sections 131.13 and 131.14, the notification as
1709-required by Sections 131.16, 131.20a, or 141.4, or an
1710-agreement or transaction required by Sections 124.2(2),
1711-141, 141a, or 141.1, $200.
1712-(dd) For filing an application for licensing of:
1713-(i) a religious or charitable risk pooling trust
1714-or a workers' compensation pool, $1,000;
1715-(ii) a workers' compensation service company,
1716-$500;
1717-(iii) a self-insured automobile fleet, $200; or
1718-(iv) a renewal of or amendment of any license
1719-issued pursuant to (i), (ii), or (iii) above, $100.
1720-(ee) For filing articles of incorporation for a
1721-syndicate to engage in the business of insurance through
1722-the Illinois Insurance Exchange, $2,000.
1723-(ff) For filing amended articles of incorporation for
1724-a syndicate engaged in the business of insurance through
1725-the Illinois Insurance Exchange, $100.
1726-(gg) For filing articles of incorporation for a
1727-limited syndicate to join with other subscribers or
1728-limited syndicates to do business through the Illinois
1729-Insurance Exchange, $1,000.
1730-(hh) For filing amended articles of incorporation for
1731-a limited syndicate to do business through the Illinois
1732-Insurance Exchange, $100.
1733-(ii) For a permit to solicit subscriptions to a
1734-
1735-
1736-syndicate or limited syndicate, $100.
1737-(jj) For the filing of each form as required in
1738-Section 143 of this Code, $50 per form. Informational and
1739-advertising filings shall be $25 per filing. The fee for
1740-advisory and rating organizations shall be $200 per form.
1741-(i) For the purposes of the form filing fee,
1742-filings made on insert page basis will be considered
1743-one form at the time of its original submission.
1744-Changes made to a form subsequent to its approval
1745-shall be considered a new filing.
1746-(ii) Only one fee shall be charged for a form,
1747-regardless of the number of other forms or policies
1748-with which it will be used.
1749-(iii) Fees charged for a policy filed as it will be
1750-issued regardless of the number of forms comprising
1751-that policy shall not exceed $1,500. For advisory or
1752-rating organizations, fees charged for a policy filed
1753-as it will be issued regardless of the number of forms
1754-comprising that policy shall not exceed $2,500.
1755-(iv) The Director may by rule exempt forms from
1756-such fees.
1757-(kk) For filing an application for licensing of a
1758-reinsurance intermediary, $500.
1759-(ll) For filing an application for renewal of a
1760-license of a reinsurance intermediary, $200.
1761-(mm) For filing a plan of division of a domestic stock
1762-
1763-
1764-company under Article IIB, $10,000.
1765-(nn) For filing all documents submitted by a foreign
1766-or alien company to be a certified reinsurer in this
1767-State, except for a fraternal benefit society, $1,000.
1768-(oo) For filing a renewal by a foreign or alien
1769-company to be a certified reinsurer in this State, except
1770-for a fraternal benefit society, $400.
1771-(pp) For filing all documents submitted by a reinsurer
1772-domiciled in a reciprocal jurisdiction, $1,000.
1773-(qq) For filing a renewal by a reinsurer domiciled in
1774-a reciprocal jurisdiction, $400.
1775-(rr) For registering a captive management company or
1776-renewal thereof, $50.
1777-(ss) For filing an insurance business transfer plan
1778-under Article XLVII, $25,000.
1779-(2) When printed copies or numerous copies of the same
1780-paper or records are furnished or certified, the Director may
1781-reduce such fees for copies if he finds them excessive. He may,
1782-when he considers it in the public interest, furnish without
1783-charge to state insurance departments and persons other than
1784-companies, copies or certified copies of reports of
1785-examinations and of other papers and records.
1786-(3)(a) The expenses incurred in any performance
1787-examination authorized by law shall be paid by the company or
1788-person being examined. The charge shall be consistent with
1789-that otherwise authorized by law and shall be reasonably
1790-
1791-
1792-related to the cost of the examination including but not
1793-limited to compensation of examiners, electronic data
1794-processing costs, supervision and preparation of an
1795-examination report and lodging and travel expenses. All
1796-lodging and travel expenses shall be in accord with the
1797-applicable travel regulations as published by the Department
1798-of Central Management Services and approved by the Governor's
1799-Travel Control Board, except that out-of-state lodging and
1800-travel expenses related to examinations authorized under
1801-Section 132 shall be in accordance with travel rates
1802-prescribed under paragraph 301-7.2 of the Federal Travel
1803-Regulations, 41 C.F.R. 301-7.2, for reimbursement of
1804-subsistence expenses incurred during official travel. All
1805-lodging and travel expenses may be reimbursed directly upon
1806-authorization of the Director. With the exception of the
1807-direct reimbursements authorized by the Director, all
1808-performance examination charges collected by the Department
1809-shall be paid to the Insurance Producer Administration Fund,
1810-however, the electronic data processing costs incurred by the
1811-Department in the performance of any examination shall be
1812-billed directly to the company being examined for payment to
1813-the Technology Management Revolving Fund.
1814-(b) The costs and fees incurred in a market conduct
1815-examination shall be itemized and bills shall be provided to
1816-the examinee on a monthly basis for review prior to submission
1817-for payment. The Director shall review and affirmatively
1818-
1819-
1820-endorse detailed billings from any contracted, qualified
1821-outside professional assistance retained under Section 402 for
1822-market conduct examinations before the detailed billings are
1823-sent to the examinee. Before any qualified outside
1824-professional assistance conducts billable work on an
1825-examination, the Department shall disclose to the examinee the
1826-terms of the contracts with the qualified outside professional
1827-assistance that will be used, including the fees and hourly
1828-rates that can be charged.
1829-(4) At the time of any service of process on the Director
1830-as attorney for such service, the Director shall charge and
1831-collect the sum of $40, which may be recovered as taxable costs
1832-by the party to the suit or action causing such service to be
1833-made if he prevails in such suit or action.
1834-(5) (a) The costs incurred by the Department of Insurance
1835-in conducting any hearing authorized by law shall be assessed
1836-against the parties to the hearing in such proportion as the
1837-Director of Insurance may determine upon consideration of all
1838-relevant circumstances including: (1) the nature of the
1839-hearing; (2) whether the hearing was instigated by, or for the
1840-benefit of a particular party or parties; (3) whether there is
1841-a successful party on the merits of the proceeding; and (4) the
1842-relative levels of participation by the parties.
1843-(b) For purposes of this subsection (5) costs incurred
1844-shall mean the hearing officer fees, court reporter fees, and
1845-travel expenses of Department of Insurance officers and
1846-
1847-
1848-employees; provided however, that costs incurred shall not
1849-include hearing officer fees or court reporter fees unless the
1850-Department has retained the services of independent
1851-contractors or outside experts to perform such functions.
1852-(c) The Director shall make the assessment of costs
1853-incurred as part of the final order or decision arising out of
1854-the proceeding; provided, however, that such order or decision
1855-shall include findings and conclusions in support of the
1856-assessment of costs. This subsection (5) shall not be
1857-construed as permitting the payment of travel expenses unless
1858-calculated in accordance with the applicable travel
1859-regulations of the Department of Central Management Services,
1860-as approved by the Governor's Travel Control Board. The
1861-Director as part of such order or decision shall require all
1862-assessments for hearing officer fees and court reporter fees,
1863-if any, to be paid directly to the hearing officer or court
1864-reporter by the party(s) assessed for such costs. The
1865-assessments for travel expenses of Department officers and
1866-employees shall be reimbursable to the Director of Insurance
1867-for deposit to the fund out of which those expenses had been
1868-paid.
1869-(d) The provisions of this subsection (5) shall apply in
1870-the case of any hearing conducted by the Director of Insurance
1871-not otherwise specifically provided for by law.
1872-(6) The Director shall charge and collect an annual
1873-financial regulation fee from every domestic company for
1874-
1875-
1876-examination and analysis of its financial condition and to
1877-fund the internal costs and expenses of the Interstate
1878-Insurance Receivership Commission as may be allocated to the
1879-State of Illinois and companies doing an insurance business in
1880-this State pursuant to Article X of the Interstate Insurance
1881-Receivership Compact. The fee shall be the greater fixed
1882-amount based upon the combination of nationwide direct premium
1883-income and nationwide reinsurance assumed premium income or
1884-upon admitted assets calculated under this subsection as
1885-follows:
1886-(a) Combination of nationwide direct premium income
1887-and nationwide reinsurance assumed premium.
1888-(i) $150, if the premium is less than $500,000 and
1889-there is no reinsurance assumed premium;
1890-(ii) $750, if the premium is $500,000 or more, but
1891-less than $5,000,000 and there is no reinsurance
1892-assumed premium; or if the premium is less than
1893-$5,000,000 and the reinsurance assumed premium is less
1894-than $10,000,000;
1895-(iii) $3,750, if the premium is less than
1896-$5,000,000 and the reinsurance assumed premium is
1897-$10,000,000 or more;
1898-(iv) $7,500, if the premium is $5,000,000 or more,
1899-but less than $10,000,000;
1900-(v) $18,000, if the premium is $10,000,000 or
1901-more, but less than $25,000,000;
1902-
1903-
1904-(vi) $22,500, if the premium is $25,000,000 or
1905-more, but less than $50,000,000;
1906-(vii) $30,000, if the premium is $50,000,000 or
1907-more, but less than $100,000,000;
1908-(viii) $37,500, if the premium is $100,000,000 or
1909-more.
1910-(b) Admitted assets.
1911-(i) $150, if admitted assets are less than
1912-$1,000,000;
1913-(ii) $750, if admitted assets are $1,000,000 or
1914-more, but less than $5,000,000;
1915-(iii) $3,750, if admitted assets are $5,000,000 or
1916-more, but less than $25,000,000;
1917-(iv) $7,500, if admitted assets are $25,000,000 or
1918-more, but less than $50,000,000;
1919-(v) $18,000, if admitted assets are $50,000,000 or
1920-more, but less than $100,000,000;
1921-(vi) $22,500, if admitted assets are $100,000,000
1922-or more, but less than $500,000,000;
1923-(vii) $30,000, if admitted assets are $500,000,000
1924-or more, but less than $1,000,000,000;
1925-(viii) $37,500, if admitted assets are
1926-$1,000,000,000 or more.
1927-(c) The sum of financial regulation fees charged to
1928-the domestic companies of the same affiliated group shall
1929-not exceed $250,000 in the aggregate in any single year
1930-
1931-
1932-and shall be billed by the Director to the member company
1933-designated by the group.
1934-(7) The Director shall charge and collect an annual
1935-financial regulation fee from every foreign or alien company,
1936-except fraternal benefit societies, for the examination and
1937-analysis of its financial condition and to fund the internal
1938-costs and expenses of the Interstate Insurance Receivership
1939-Commission as may be allocated to the State of Illinois and
1940-companies doing an insurance business in this State pursuant
1941-to Article X of the Interstate Insurance Receivership Compact.
1942-The fee shall be a fixed amount based upon Illinois direct
1943-premium income and nationwide reinsurance assumed premium
1944-income in accordance with the following schedule:
1945-(a) $150, if the premium is less than $500,000 and
1946-there is no reinsurance assumed premium;
1947-(b) $750, if the premium is $500,000 or more, but less
1948-than $5,000,000 and there is no reinsurance assumed
1949-premium; or if the premium is less than $5,000,000 and the
1950-reinsurance assumed premium is less than $10,000,000;
1951-(c) $3,750, if the premium is less than $5,000,000 and
1952-the reinsurance assumed premium is $10,000,000 or more;
1953-(d) $7,500, if the premium is $5,000,000 or more, but
1954-less than $10,000,000;
1955-(e) $18,000, if the premium is $10,000,000 or more,
1956-but less than $25,000,000;
1957-(f) $22,500, if the premium is $25,000,000 or more,
1958-
1959-
1960-but less than $50,000,000;
1961-(g) $30,000, if the premium is $50,000,000 or more,
1962-but less than $100,000,000;
1963-(h) $37,500, if the premium is $100,000,000 or more.
1964-The sum of financial regulation fees under this subsection
1965-(7) charged to the foreign or alien companies within the same
1966-affiliated group shall not exceed $250,000 in the aggregate in
1967-any single year and shall be billed by the Director to the
1968-member company designated by the group.
1969-(8) Beginning January 1, 1992, the financial regulation
1970-fees imposed under subsections (6) and (7) of this Section
1971-shall be paid by each company or domestic affiliated group
1972-annually. After January 1, 1994, the fee shall be billed by
1973-Department invoice based upon the company's premium income or
1974-admitted assets as shown in its annual statement for the
1975-preceding calendar year. The invoice is due upon receipt and
1976-must be paid no later than June 30 of each calendar year. All
1977-financial regulation fees collected by the Department shall be
1978-paid to the Insurance Financial Regulation Fund. The
1979-Department may not collect financial examiner per diem charges
1980-from companies subject to subsections (6) and (7) of this
1981-Section undergoing financial examination after June 30, 1992.
1982-(9) In addition to the financial regulation fee required
1983-by this Section, a company undergoing any financial
1984-examination authorized by law shall pay the following costs
1985-and expenses incurred by the Department: electronic data
1986-
1987-
1988-processing costs, the expenses authorized under Section 131.21
1989-and subsection (d) of Section 132.4 of this Code, and lodging
1990-and travel expenses.
1991-Electronic data processing costs incurred by the
1992-Department in the performance of any examination shall be
1993-billed directly to the company undergoing examination for
1994-payment to the Technology Management Revolving Fund. Except
1995-for direct reimbursements authorized by the Director or direct
1996-payments made under Section 131.21 or subsection (d) of
1997-Section 132.4 of this Code, all financial regulation fees and
1998-all financial examination charges collected by the Department
1999-shall be paid to the Insurance Financial Regulation Fund.
2000-All lodging and travel expenses shall be in accordance
2001-with applicable travel regulations published by the Department
2002-of Central Management Services and approved by the Governor's
2003-Travel Control Board, except that out-of-state lodging and
2004-travel expenses related to examinations authorized under
2005-Sections 132.1 through 132.7 shall be in accordance with
2006-travel rates prescribed under paragraph 301-7.2 of the Federal
2007-Travel Regulations, 41 C.F.R. 301-7.2, for reimbursement of
2008-subsistence expenses incurred during official travel. All
2009-lodging and travel expenses may be reimbursed directly upon
2010-the authorization of the Director.
2011-In the case of an organization or person not subject to the
2012-financial regulation fee, the expenses incurred in any
2013-financial examination authorized by law shall be paid by the
2014-
2015-
2016-organization or person being examined. The charge shall be
2017-reasonably related to the cost of the examination including,
2018-but not limited to, compensation of examiners and other costs
2019-described in this subsection.
2020-(10) Any company, person, or entity failing to make any
2021-payment of $150 or more as required under this Section shall be
2022-subject to the penalty and interest provisions provided for in
2023-subsections (4) and (7) of Section 412.
2024-(11) Unless otherwise specified, all of the fees collected
2025-under this Section shall be paid into the Insurance Financial
2026-Regulation Fund.
2027-(12) For purposes of this Section:
2028-(a) "Domestic company" means a company as defined in
2029-Section 2 of this Code which is incorporated or organized
2030-under the laws of this State, and in addition includes a
2031-not-for-profit corporation authorized under the Dental
2032-Service Plan Act or the Voluntary Health Services Plans
2033-Act, a health maintenance organization, and a limited
2034-health service organization.
2035-(b) "Foreign company" means a company as defined in
2036-Section 2 of this Code which is incorporated or organized
2037-under the laws of any state of the United States other than
2038-this State and in addition includes a health maintenance
2039-organization and a limited health service organization
2040-which is incorporated or organized under the laws of any
2041-state of the United States other than this State.
2042-
2043-
2044-(c) "Alien company" means a company as defined in
2045-Section 2 of this Code which is incorporated or organized
2046-under the laws of any country other than the United
2047-States.
2048-(d) "Fraternal benefit society" means a corporation,
2049-society, order, lodge or voluntary association as defined
2050-in Section 282.1 of this Code.
2051-(e) "Mutual benefit association" means a company,
2052-association or corporation authorized by the Director to
2053-do business in this State under the provisions of Article
2054-XVIII of this Code.
2055-(f) "Burial society" means a person, firm,
2056-corporation, society or association of individuals
2057-authorized by the Director to do business in this State
2058-under the provisions of Article XIX of this Code.
2059-(g) "Farm mutual" means a district, county and
2060-township mutual insurance company authorized by the
2061-Director to do business in this State under the provisions
2062-of the Farm Mutual Insurance Company Act of 1986.
2063-(Source: P.A. 102-775, eff. 5-13-22; 103-75, eff. 1-1-25.)
2064-(215 ILCS 5/511.109) (from Ch. 73, par. 1065.58-109)
2065-(Section scheduled to be repealed on January 1, 2027)
2066-Sec. 511.109. Examination.
2067-(a) The Director or the Director's his designee may
2068-examine any applicant for or holder of an administrator's
2069-
2070-
2071-license in accordance with Sections 132 through 132.7. If the
2072-Director or the examiners find that the administrator has
2073-violated this Article or any other insurance-related laws,
2074-rules, or regulations under the Director's jurisdiction
2075-because of the manner in which the administrator has conducted
2076-business on behalf of an insurer or plan sponsor, then, unless
2077-the insurer or plan sponsor is included in the examination and
2078-has been afforded the same opportunity to request or
2079-participate in a hearing on the examination report, the
2080-examination report shall not allege a violation by the insurer
2081-or plan sponsor and the Director's order based on the report
2082-shall not impose any requirements, prohibitions, or penalties
2083-on the insurer or plan sponsor. Nothing in this Section shall
2084-prevent the Director from using any information obtained
2085-during the examination of an administrator to examine,
2086-investigate, or take other appropriate regulatory or legal
2087-action with respect to an insurer or plan sponsor.
2088-(b) Any administrator being examined shall provide to the
2089-Director or his designee convenient and free access, at all
2090-reasonable hours at their offices, to all books, records,
2091-documents and other papers relating to such administrator's
2092-business affairs.
2093-(c) The Director or his designee may administer oaths and
2094-thereafter examine any individual about the business of the
2095-administrator.
2096-(d) The examiners designated by the Director pursuant to
2097-
2098-
2099-this Section may make reports to the Director. Any report
2100-alleging substantive violations of this Article, any
2101-applicable provisions of the Illinois Insurance Code, or any
2102-applicable Part of Title 50 of the Illinois Administrative
2103-Code shall be in writing and be based upon facts obtained by
2104-the examiners. The report shall be verified by the examiners.
2105-(e) If a report is made, the Director shall either deliver
2106-a duplicate thereof to the administrator being examined or
2107-send such duplicate by certified or registered mail to the
2108-administrator's address specified in the records of the
2109-Department. The Director shall afford the administrator an
2110-opportunity to request a hearing to object to the report. The
2111-administrator may request a hearing within 30 days after
2112-receipt of the duplicate of the examination report by giving
2113-the Director written notice of such request together with
2114-written objections to the report. Any hearing shall be
2115-conducted in accordance with Sections 402 and 403 of this
2116-Code. The right to hearing is waived if the delivery of the
2117-report is refused or the report is otherwise undeliverable or
2118-the administrator does not timely request a hearing. After the
2119-hearing or upon expiration of the time period during which an
2120-administrator may request a hearing, if the examination
2121-reveals that the administrator is operating in violation of
2122-any applicable provision of the Illinois Insurance Code, any
2123-applicable Part of Title 50 of the Illinois Administrative
2124-Code or prior order, the Director, in the written order, may
2125-
2126-
2127-require the administrator to take any action the Director
2128-considers necessary or appropriate in accordance with the
2129-report or examination hearing. If the Director issues an
2130-order, it shall be issued within 90 days after the report is
2131-filed, or if there is a hearing, within 90 days after the
2132-conclusion of the hearing. The order is subject to review
2133-under the Administrative Review Law.
2134-(Source: P.A. 84-887.)
2135-(215 ILCS 5/512-3) (from Ch. 73, par. 1065.59-3)
2136-Sec. 512-3. Definitions. For the purposes of this Article,
2137-unless the context otherwise requires, the terms defined in
2138-this Article have the meanings ascribed to them herein:
2139-"Health care payer" means an insurance company, health
2140-maintenance organization, limited health service organization,
2141-health services plan corporation, or dental service plan
2142-corporation authorized to do business in this State.
2143-(a) "Third party prescription program" or "program" means
2144-any system of providing for the reimbursement of
2145-pharmaceutical services and prescription drug products offered
2146-or operated in this State under a contractual arrangement or
2147-agreement between a provider of such services and another
2148-party who is not the consumer of those services and products.
2149-Such programs may include, but need not be limited to,
2150-employee benefit plans whereby a consumer receives
2151-prescription drugs or other pharmaceutical services and those
2152-
2153-
2154-services are paid for by an agent of the employer or others.
2155-(b) "Third party program administrator" or "administrator"
2156-means any person, partnership or corporation who issues or
2157-causes to be issued any payment or reimbursement to a provider
2158-for services rendered pursuant to a third party prescription
2159-program, but does not include the Director of Healthcare and
2160-Family Services or any agent authorized by the Director to
2161-reimburse a provider of services rendered pursuant to a
2162-program of which the Department of Healthcare and Family
2163-Services is the third party.
2164-(Source: P.A. 95-331, eff. 8-21-07.)
2165-(215 ILCS 5/512-5) (from Ch. 73, par. 1065.59-5)
2166-Sec. 512-5. Fiduciary and Bonding Requirements. A third
2167-party prescription program administrator shall (1) establish
2168-and maintain a fiduciary account, separate and apart from any
2169-and all other accounts, for the receipt and disbursement of
2170-funds for reimbursement of providers of services under the
2171-program, or (2) post, or cause to be posted, a bond of
2172-indemnity in an amount equal to not less than 10% of the total
2173-estimated annual reimbursements under the program.
2174-The establishment of such fiduciary accounts and bonds
2175-shall be consistent with applicable State law. If a bond of
2176-indemnity is posted, it shall be held by the Director of
2177-Insurance for the benefit and indemnification of the providers
2178-of services under the third party prescription program.
2179-
2180-
2181-An administrator who operates more than one third party
2182-prescription program may establish and maintain a separate
2183-fiduciary account or bond of indemnity for each such program,
2184-or may operate and maintain a consolidated fiduciary account
2185-or bond of indemnity for all such programs.
2186-The requirements of this Section do not apply to any third
2187-party prescription program administered by or on behalf of any
2188-health care payer insurance company, Health Care Service Plan
2189-Corporation or Pharmaceutical Service Plan Corporation
2190-authorized to do business in the State of Illinois.
2191-(Source: P.A. 82-1005.)
2192-(215 ILCS 5/512-11 new)
2193-Sec. 512-11. Examination. The Director or the Director's
2194-designee may examine any applicant for or holder of an
2195-administrator's registration in accordance with Sections 132
2196-through 132.7 of this Code. If the Director or the examiners
2197-find that the administrator has violated this Article or any
2198-other insurance-related laws or regulations under the
2199-Director's jurisdiction because of the manner in which the
2200-administrator has conducted business on behalf of a separately
2201-incorporated health care payer, then, unless the health care
2202-payer is included in the examination and has been afforded the
2203-same opportunity to request or participate in a hearing on the
2204-examination report, the examination report shall not allege a
2205-violation by the health care payer and the Director's order
2206-
2207-
2208-based on the report shall not impose any requirements,
2209-prohibitions, or penalties on the health care payer. Nothing
2210-in this Section shall prevent the Director from using any
2211-information obtained during the examination of an
2212-administrator to examine, investigate, or take other
2213-appropriate regulatory or legal action with respect to a
2214-health care payer.
2215-(215 ILCS 5/513b3)
2216-Sec. 513b3. Examination. (a) The Director, or his or her
2217-designee, may examine a registered pharmacy benefit manager in
2218-accordance with Sections 132-132.7. If the Director or the
2219-examiners find that the pharmacy benefit manager has violated
2220-this Article or any other insurance-related laws, rules, or
2221-regulations under the Director's jurisdiction because of the
2222-manner in which the pharmacy benefit manager has conducted
2223-business on behalf of a health insurer or plan sponsor, then,
2224-unless the health insurer or plan sponsor is included in the
2225-examination and has been afforded the same opportunity to
2226-request or participate in a hearing on the examination report,
2227-the examination report shall not allege a violation by the
2228-health insurer or plan sponsor and the Director's order based
2229-on the report shall not impose any requirements, prohibitions,
2230-or penalties on the health insurer or plan sponsor. Nothing in
2231-this Section shall prevent the Director from using any
2232-information obtained during the examination of an
2233-
2234-
2235-administrator to examine, investigate, or take other
2236-appropriate regulatory or legal action with respect to a
2237-health insurer or plan sponsor.
2238-(b) Any pharmacy benefit manager being examined shall
2239-provide to the Director, or his or her designee, convenient
2240-and free access to all books, records, documents, and other
2241-papers relating to such pharmacy benefit manager's business
2242-affairs at all reasonable hours at its offices.
2243-(c) The Director, or his or her designee, may administer
2244-oaths and thereafter examine the pharmacy benefit manager's
2245-designee, representative, or any officer or senior manager as
2246-listed on the license or registration certificate about the
2247-business of the pharmacy benefit manager.
2248-(d) The examiners designated by the Director under this
2249-Section may make reports to the Director. Any report alleging
2250-substantive violations of this Article, any applicable
2251-provisions of this Code, or any applicable Part of Title 50 of
2252-the Illinois Administrative Code shall be in writing and be
2253-based upon facts obtained by the examiners. The report shall
2254-be verified by the examiners.
2255-(e) If a report is made, the Director shall either deliver
2256-a duplicate report to the pharmacy benefit manager being
2257-examined or send such duplicate by certified or registered
2258-mail to the pharmacy benefit manager's address specified in
2259-the records of the Department. The Director shall afford the
2260-pharmacy benefit manager an opportunity to request a hearing
2261-
2262-
2263-to object to the report. The pharmacy benefit manager may
2264-request a hearing within 30 days after receipt of the
2265-duplicate report by giving the Director written notice of such
2266-request together with written objections to the report. Any
2267-hearing shall be conducted in accordance with Sections 402 and
2268-403 of this Code. The right to a hearing is waived if the
2269-delivery of the report is refused or the report is otherwise
2270-undeliverable or the pharmacy benefit manager does not timely
2271-request a hearing. After the hearing or upon expiration of the
2272-time period during which a pharmacy benefit manager may
2273-request a hearing, if the examination reveals that the
2274-pharmacy benefit manager is operating in violation of any
2275-applicable provision of this Code, any applicable Part of
2276-Title 50 of the Illinois Administrative Code, a provision of
2277-this Article, or prior order, the Director, in the written
2278-order, may require the pharmacy benefit manager to take any
2279-action the Director considers necessary or appropriate in
2280-accordance with the report or examination hearing. If the
2281-Director issues an order, it shall be issued within 90 days
2282-after the report is filed, or if there is a hearing, within 90
2283-days after the conclusion of the hearing. The order is subject
2284-to review under the Administrative Review Law.
2285-(Source: P.A. 101-452, eff. 1-1-20.)
2286-Section 95. No acceleration or delay. Where this Act makes
2287-changes in a statute that is represented in this Act by text
2288-
2289-
2290-that is not yet or no longer in effect (for example, a Section
2291-represented by multiple versions), the use of that text does
2292-not accelerate or delay the taking effect of (i) the changes
2293-made by this Act or (ii) provisions derived from any other
2294-Public Act.
32+SB1479 Enrolled- 2 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 2 - LRB103 05817 BMS 50837 b
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34+1 examination" includes an examination performed at the
35+2 Department's offices with the company or person providing
36+3 requested documents by hard copy, microfiche, or discs or
37+4 other electronic media for review without an on-site
38+5 examination.
39+6 "Market analysis" means a process whereby market conduct
40+7 surveillance personnel collect and analyze information from
41+8 filed schedules, surveys, required reports, data calls, and
42+9 other sources to develop a baseline understanding of the
43+10 marketplace and to identify patterns or practices of regulated
44+11 persons that deviate significantly from the norm or that may
45+12 pose a potential risk to insurance consumers.
46+13 "Market conduct action" means any activity, other than
47+14 market analysis, that the Director may initiate to assess and
48+15 address the market and nonfinancial practices of regulated
49+16 persons, including market conduct examinations. The
50+17 Department's consumer complaint process outlined in 50 Ill.
51+18 Adm. Code 926 is not a market conduct action for purposes of
52+19 this Section; however, the Department may initiate market
53+20 conduct actions based on information gathered during that
54+21 process. "Market conduct action" includes:
55+22 (1) correspondence with the company or person;
56+23 (2) interviews with the company or person;
57+24 (3) information gathering;
58+25 (4) policy and procedure reviews;
59+26 (5) interrogatories;
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70+1 (6) review of company or person self-evaluations and
71+2 voluntary compliance programs;
72+3 (7) self-audits; and
73+4 (8) market conduct examinations.
74+5 "Market conduct examination" or "examination" means any
75+6 type of examination, other than a financial examination, that
76+7 assesses a regulated person's compliance with the laws, rules,
77+8 and regulations applicable to the examinee. "Market conduct
78+9 examination" includes comprehensive examinations, targeted
79+10 examinations, and follow-up examinations, which may be
80+11 conducted as desk examinations, on-site examinations, or a
81+12 combination of those 2 methods.
82+13 "Market conduct surveillance" means market analysis or a
83+14 market conduct action.
84+15 "Market conduct surveillance personnel" means those
85+16 individuals employed or retained by the Department and
86+17 designated by the Director to collect, analyze, review, or act
87+18 on information in the insurance marketplace that identifies
88+19 patterns or practices of persons subject to the Director's
89+20 jurisdiction. "Market conduct surveillance personnel" includes
90+21 all persons identified as an examiner in the insurance laws or
91+22 rules of this State if the Director has designated them to
92+23 assist her or him in ascertaining the nonfinancial business
93+24 practices, performance, and operations of a company or person
94+25 subject to the Director's jurisdiction.
95+26 "On-site examination" means an examination conducted at
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106+1 the company's or person's home office or the location where
107+2 the records under review are stored.
108+3 "SOFR rate" means the Secured Overnight Financing Rate
109+4 published by the Federal Reserve Bank of New York every
110+5 business day.
111+6 (b) Companies and persons subject to surveillance. The
112+7 Director, for the purposes of ascertaining the nonfinancial
113+8 business practices, performance, and operations of any person
114+9 subject to the Director's jurisdiction or within the
115+10 marketplace, may engage in market conduct actions or market
116+11 analysis relating to:
117+12 (1) any company transacting or being organized to
118+13 transact business in this State;
119+14 (2) any person engaged in or proposing to be engaged
120+15 in the organization, promotion, or solicitation of shares
121+16 or capital contributions to or aiding in the formation of
122+17 a company;
123+18 (3) any person having a written or oral contract
124+19 pertaining to the management or control of a company as
125+20 general agent, managing agent, or attorney-in-fact;
126+21 (4) any licensed or registered producer, firm,
127+22 pharmacy benefit manager, administrator, or any person
128+23 making application for any license, certificate, or
129+24 registration;
130+25 (5) any person engaged in the business of adjusting
131+26 losses or financing premiums; or
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142+1 (6) any person, organization, trust, or corporation
143+2 having custody or control of information reasonably
144+3 related to the operation, performance, or conduct of a
145+4 company or person subject to the Director's jurisdiction,
146+5 but only as to the operation, performance, or conduct of a
147+6 company or person subject to the Director's jurisdiction.
148+7 (c) Market analysis and market conduct actions.
149+8 (1) The Director may perform market analysis by
150+9 gathering and analyzing information from data currently
151+10 available to the Director, information from surveys, data
152+11 call responses, or reports that are submitted to the
153+12 Director, information collected by the NAIC, and
154+13 information from a variety of other sources to develop a
155+14 baseline understanding of the marketplace and to identify
156+15 for further review companies or practices that deviate
157+16 from the norm or that may pose a potential risk to
158+17 insurance consumers. The Director shall use the most
159+18 recent NAIC Market Regulation Handbook as a guide in
160+19 performing market analysis. The Director may also employ
161+20 other guidelines or procedures as the Director may deem
162+21 appropriate.
163+22 (2) The Director may initiate a market conduct action
164+23 subject to the following:
165+24 (A) If the Director determines that further
166+25 inquiry into a particular person or practice is
167+26 needed, then the Director may consider undertaking a
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178+1 market conduct action. The Director shall inform the
179+2 examinee of the initiation of the market conduct
180+3 action and shall use the most recent NAIC Market
181+4 Regulation Handbook as a guide in performing the
182+5 market conduct action. The Director may also employ
183+6 other guidelines or procedures as the Director may
184+7 deem appropriate.
185+8 (B) For an examination, the Director shall conduct
186+9 a pre-examination conference with the examinee to
187+10 clarify expectations before commencement of the
188+11 examination. At the pre-examination conference, the
189+12 Director or the market conduct surveillance personnel
190+13 shall disclose the basis of the examination, including
191+14 the statutes, regulations, or business practices at
192+15 issue. The Director shall provide at least 30 days'
193+16 advance notice of the date of the pre-examination
194+17 conference unless circumstances warrant that the
195+18 examination proceed more quickly.
196+19 (C) The Director may coordinate a market conduct
197+20 action and findings of this State with market conduct
198+21 actions and findings of other states.
199+22 (3) Nothing in this Section requires the Director to
200+23 undertake market analysis before initiating any market
201+24 conduct action.
202+25 (4) Nothing in this Section restricts the Director to
203+26 the type of market conduct action he or she initially
204+
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214+1 selected.
215+2 (5) A regulated person is required to respond to a
216+3 market analysis data call or to an information request in
217+4 a market conduct action on the terms and conditions
218+5 established by the Director. The Department shall
219+6 establish reasonable timelines that are commensurate with
220+7 the volume and nature of the data required to be collected
221+8 in the information request.
222+9 (6) Without limiting the contents of any examination
223+10 report, market conduct actions taken as a result of a
224+11 market analysis shall focus primarily on the general
225+12 business practices and compliance activities of companies
226+13 or persons rather than identifying infrequent or
227+14 unintentional random errors that do not cause significant
228+15 consumer harm. The Director may give a company or person
229+16 an opportunity to resolve matters that are identified as a
230+17 result of a market analysis to the Director's satisfaction
231+18 before undertaking a market conduct action against the
232+19 company or person.
233+20 (d) Access to books and records. Every examinee and its
234+21 officers, directors, and agents must provide to the Director
235+22 convenient and free access at all reasonable hours at its
236+23 office or location to all books, records, and documents and
237+24 any or all papers relating to the business, performance,
238+25 operations, and affairs of the examinee. The officers,
239+26 directors, and agents of the examinee must facilitate the
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250+1 market conduct action and aid in the action so far as it is in
251+2 their power to do so. The Director and any authorized market
252+3 conduct surveillance personnel have the power to administer
253+4 oaths and examine under oath any person relevant to the
254+5 business of the examinee. A failure to produce requested
255+6 books, records, or documents by the deadline shall not be a
256+7 violation until after the later of:
257+8 (1) 5 business days after the initial response
258+9 deadline set by the Director or authorized personnel; or
259+10 (2) an extended deadline granted by the Director or
260+11 authorized personnel.
261+12 (e) Examination report. The market conduct surveillance
262+13 personnel designated by the Director under Section 402 must
263+14 make a full and true report of every examination made by them
264+15 that contains only facts ascertained from the books, papers,
265+16 records, documents, and other evidence obtained by
266+17 investigation and examined by them or ascertained from the
267+18 testimony of officers, agents, or other persons examined under
268+19 oath concerning the business, affairs, conduct, and
269+20 performance of the examinee. The report of examination must be
270+21 verified by the oath of the examiner in charge thereof, and
271+22 when so verified is prima facie evidence in any action or
272+23 proceeding in the name of the State against the examinee, its
273+24 officers, directors, or agents upon the facts stated therein.
274+25 (f) Examinee response to examination report. The
275+26 Department and the examinee shall comply with the following
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286+1 timeline, unless a mutual agreement is reached to modify the
287+2 timeline:
288+3 (1) The Department shall deliver a draft report to the
289+4 examinee as soon as reasonably practicable. Nothing in
290+5 this Section prevents the Department from sharing an
291+6 earlier draft of the report with the examinee before
292+7 confirming that the examination is completed.
293+8 (2) If the examinee chooses to respond with written
294+9 submissions or rebuttals, then the examinee must do so
295+10 within 30 days after receipt of any draft report delivered
296+11 after the completion of the examination.
297+12 (3) As soon as reasonably practicable after receipt of
298+13 any written submissions or rebuttals, the Department shall
299+14 issue a final report. Whenever the Department has made
300+15 substantive changes to a previously shared draft report,
301+16 unless those changes remove part or all of an alleged
302+17 violation or were proposed by the examinee, the Department
303+18 shall deliver the revised version to the examinee as a new
304+19 draft and shall allow the examinee 30 days to respond
305+20 before the Department issues a final report.
306+21 (4) The examinee shall, within 10 days after the
307+22 issuance of the final report, accept the final report or
308+23 request a hearing in writing, unless granted an extension
309+24 by mutual agreement. Failure to take either action within
310+25 10 days or the mutually agreed extension shall be deemed
311+26 an acceptance of the final report. If the examinee accepts
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322+1 the examination report, the Director shall continue to
323+2 hold the content of the examination report as private and
324+3 confidential for a period of 30 days. Thereafter, the
325+4 Director shall open the final report for public
326+5 inspection.
327+6 (g) Hearing; final examination report. Notwithstanding
328+7 anything to the contrary in this Code or Department rules, if
329+8 the examinee requests a hearing, then the following procedures
330+9 apply:
331+10 (1) The examinee must request the hearing in writing
332+11 and must specify the issues in the final report that the
333+12 examinee is challenging. The examinee is limited to
334+13 challenging the issues that were previously challenged in
335+14 the examinee's written submission and rebuttal or
336+15 supplemental submission and rebuttal pursuant to
337+16 paragraphs (2) and (3) of subsection (f).
338+17 (2) Except as permitted in paragraphs (3) and (8) of
339+18 this subsection, the hearing shall be limited to the
340+19 written arguments submitted by the parties to the
341+20 designated hearing officer. The designated hearing officer
342+21 may, however, grant a live hearing upon the request of
343+22 either party.
344+23 (3) Discovery is limited to the market conduct
345+24 surveillance personnel's work papers that are relevant to
346+25 the issues the examinee is challenging. The relevant
347+26 market conduct surveillance personnel's work papers shall
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358+1 be admitted into the record. No other forms of discovery,
359+2 including depositions and interrogatories, are allowed,
360+3 except upon written agreement of the examinee and the
361+4 Department when necessary to conduct a fair hearing or as
362+5 otherwise provided in this subsection.
363+6 (4) Only the examinee and the Department may submit
364+7 written arguments.
365+8 (5) The examinee must submit its written argument and
366+9 any supporting evidence within 30 days after the
367+10 Department serves a formal notice of hearing.
368+11 (6) The Department must submit its written response
369+12 and any supporting evidence within 30 days after the
370+13 examinee submits its written argument.
371+14 (7) The designated hearing officer may allow
372+15 additional written submissions if necessary or useful to
373+16 the fair resolution of the hearing.
374+17 (8) If either the examinee or the Department submit
375+18 written testimony or affidavits, then the opposing party
376+19 shall be given the opportunity to cross-examine the
377+20 witness and to submit the cross-examination to the hearing
378+21 officer before a decision.
379+22 (9) The Director shall issue a decision accompanied by
380+23 findings and conclusions. The Director's order is a final
381+24 administrative decision and shall be served upon the
382+25 examinee together with a copy of the final report within
383+26 90 days after the conclusion of the hearing. The hearing
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394+1 is deemed concluded on the later of the last date of any
395+2 live hearing or the final deadline date for written
396+3 submissions to the hearing officer, including any
397+4 continuances or supplemental briefings permitted by the
398+5 hearing officer.
399+6 (10) Any portion of the final examination report that
400+7 was not challenged by the examinee is incorporated into
401+8 the decision of the Director.
402+9 (11) Findings of fact and conclusions of law in the
403+10 Director's final administrative decision are prima facie
404+11 evidence in any legal or regulatory action.
405+12 (12) If an examinee has requested a hearing, then the
406+13 Director shall continue to hold the final report and any
407+14 related decision as private and confidential for a period
408+15 of 49 days after the final administrative decision. After
409+16 the 49-day period expires, the Director shall open the
410+17 final report and any related decision for public
411+18 inspection if a court of competent jurisdiction has not
412+19 stayed its publication.
413+20 (h) Disclosure. So long as the recipient agrees to and
414+21 verifies in writing its legal authority to hold the
415+22 information confidential in a manner consistent with this
416+23 Section, nothing in this Section prevents the Director from
417+24 disclosing at any time the content of an examination report,
418+25 preliminary examination report, or results, or any matter
419+26 relating to a report or results, to:
420+
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430+1 (1) the insurance regulatory authorities of any other
431+2 state; or
432+3 (2) any agency or office of the federal government.
433+4 (i) Confidentiality.
434+5 (1) The Director and any other person in the course of
435+6 market conduct surveillance shall keep confidential all
436+7 documents, including working papers, third-party models,
437+8 or products; complaint logs; copies of any documents
438+9 created, produced, obtained by, or disclosed to the
439+10 Director, market conduct surveillance personnel, or any
440+11 other person in the course of market conduct surveillance
441+12 conducted pursuant to this Section; and all documents
442+13 obtained by the NAIC pursuant to this Section. The
443+14 documents shall remain confidential after the termination
444+15 of the market conduct surveillance, are not subject to
445+16 subpoena, are not subject to discovery or admissible as
446+17 evidence in private civil litigation, are not subject to
447+18 disclosure under the Freedom of Information Act, and must
448+19 not be made public at any time or used by the Director or
449+20 any other person, except as provided in paragraphs (3),
450+21 (4), and (6) of this subsection (i) and in subsection (k).
451+22 (2) The Director and any other person in the course of
452+23 market conduct surveillance shall keep confidential any
453+24 self-evaluation or voluntary compliance program documents
454+25 disclosed to the Director or other person by an examinee
455+26 and the data collected via the NAIC market conduct annual
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466+1 statement. The documents are not subject to subpoena, are
467+2 not subject to discovery or admissible as evidence in
468+3 private civil litigation, are not subject to disclosure
469+4 under the Freedom of Information Act, and they shall not
470+5 be made public or used by the Director or any other person,
471+6 except as provided in paragraphs (3) and (4) of this
472+7 subsection (i), in subsection (k), or in Section 155.35.
473+8 Nothing in this Section shall supersede the restrictions
474+9 on disclosure under Section 155.35.
475+10 (3) Notwithstanding paragraphs (1) and (2) of this
476+11 subsection (i), and consistent with paragraph (5) of this
477+12 subsection (i), in order to assist in the performance of
478+13 the Director's duties, the Director may:
479+14 (A) share documents, materials, communications, or
480+15 other information, including the confidential and
481+16 privileged documents, materials, or information
482+17 described in this subsection (i), with other State,
483+18 federal, alien, and international regulatory agencies
484+19 and law enforcement authorities and the NAIC, its
485+20 affiliates, and subsidiaries, if the recipient agrees
486+21 to and verifies in writing its legal authority to
487+22 maintain the confidentiality and privileged status of
488+23 the document, material, communication, or other
489+24 information;
490+25 (B) receive documents, materials, communications,
491+26 or information, including otherwise confidential and
492+
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502+1 privileged documents, materials, or information, from
503+2 the NAIC and its affiliates or subsidiaries, and from
504+3 regulatory and law enforcement officials of other
505+4 State, federal, alien, or international jurisdictions,
506+5 authorities, and agencies, and shall maintain as
507+6 confidential or privileged any document, material,
508+7 communication, or information received with notice or
509+8 the understanding that it is confidential or
510+9 privileged under the laws of the jurisdiction that is
511+10 the source of the document, material, communication,
512+11 or information; and
513+12 (C) enter into agreements governing the sharing
514+13 and use of information consistent with this Section.
515+14 (4) Nothing in this Section limits:
516+15 (A) the Director's authority to use, if consistent
517+16 with subsection (5) of Section 188.1, as applicable,
518+17 any final or preliminary examination report, any
519+18 market conduct surveillance or examinee work papers or
520+19 other documents, or any other information discovered
521+20 or developed during the course of any market conduct
522+21 surveillance in the furtherance of any legal or
523+22 regulatory action initiated by the Director that the
524+23 Director may, in the Director's sole discretion, deem
525+24 appropriate; however, confidential or privileged
526+25 information about a company or person that is used in
527+26 the legal or regulatory action shall not be made
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538+1 public except by order of a court of competent
539+2 jurisdiction or with the written consent of the
540+3 company or person; or
541+4 (B) the ability of an examinee to conduct
542+5 discovery in accordance with paragraph (3) of
543+6 subsection (g).
544+7 (5) Disclosure to or by the Director of documents,
545+8 materials, communications, or information required as part
546+9 of any type of market conduct surveillance does not waive
547+10 any applicable privilege or claim of confidentiality in
548+11 the documents, materials, communications, or information.
549+12 (6) Notwithstanding the confidentiality requirements
550+13 of this Section or otherwise imposed by State law, if the
551+14 Director performs a data call, other than the collection
552+15 of data for the NAIC market conduct annual statement, the
553+16 Director may make the results of the data call available
554+17 for public inspection in an aggregated format that does
555+18 not disclose information or data attributed to any
556+19 specific company or person, including the name of any
557+20 company or person who responded to the data call, so long
558+21 as the Director provides all companies or persons that
559+22 responded to the data call 15 days' notice identifying the
560+23 information to be publicly released. Nothing in this
561+24 Section requires the Director to publish results from any
562+25 data call.
563+26 (j) Corrective actions.
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574+1 (1) As a result of any market conduct action, the
575+2 Director may take any action the Director considers
576+3 necessary or appropriate in accordance with the report of
577+4 examination or any hearing thereon for acts in violation
578+5 of any law, rule, or prior lawful order of the Director. No
579+6 corrective action, including a penalty, shall be ordered
580+7 with respect to violations in transactions with consumers
581+8 or other entities that are isolated occurrences or that
582+9 occur with such low frequency as to fall below a
583+10 reasonable margin of error. Such actions include, but are
584+11 not limited to:
585+12 (A) requiring the regulated person to undertake
586+13 corrective actions to cease and desist an identified
587+14 violation or institute processes and practices to
588+15 comply with applicable standards;
589+16 (B) requiring reimbursement or restitution of any
590+17 actual losses or damages to persons harmed by the
591+18 regulated person's violation with interest from the
592+19 date that the actual loss or damage was incurred,
593+20 which shall be calculated at the SOFR rate applicable
594+21 on the date that the actual loss or damage was incurred
595+22 plus 2%; and
596+23 (C) imposing civil penalties as provided in this
597+24 subsection (j).
598+25 (2) The Director may order a penalty of up to $2,000
599+26 for each violation of any law, rule, or prior lawful order
600+
601+
602+
603+
604+
605+ SB1479 Enrolled - 17 - LRB103 05817 BMS 50837 b
606+
607+
608+SB1479 Enrolled- 18 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 18 - LRB103 05817 BMS 50837 b
609+ SB1479 Enrolled - 18 - LRB103 05817 BMS 50837 b
610+1 of the Director. Any failure to respond to an information
611+2 request in a market conduct action or violation of
612+3 subsection (d) may carry a fine of up to $1,000 per day up
613+4 to a maximum of $50,000. Fines and penalties shall be
614+5 consistent, reasonable, and justifiable, and the Director
615+6 may consider reasonable criteria in ordering the fines and
616+7 penalties, including, but not limited to, consumer harm,
617+8 the intentionality of any violations, or remedial actions
618+9 already undertaken by the examinee. The Director shall
619+10 communicate to the examinee the basis for any assessed
620+11 fine or penalty.
621+12 (3) If any other provision of this Code or any other
622+13 law or rule under the Director's jurisdiction prescribes
623+14 an amount or range of monetary penalty for a violation of a
624+15 particular statute or rule or a maximum penalty in the
625+16 aggregate for repeated violations, the Director shall
626+17 assess penalties pursuant to the terms of the statute or
627+18 rule allowing the largest penalty.
628+19 (4) If any other provision of this Code or any other
629+20 law or rule under the Director's jurisdiction prescribes
630+21 or specifies a method by which the Director is to
631+22 determine a violation, then compliance with the process
632+23 set forth herein shall be deemed to comply with the method
633+24 prescribed or specified in the other provision.
634+25 (5) If the Director imposes any sanctions or
635+26 corrective actions described in subparagraphs (A) through
636+
637+
638+
639+
640+
641+ SB1479 Enrolled - 18 - LRB103 05817 BMS 50837 b
642+
643+
644+SB1479 Enrolled- 19 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 19 - LRB103 05817 BMS 50837 b
645+ SB1479 Enrolled - 19 - LRB103 05817 BMS 50837 b
646+1 (C) of paragraph (1) of this subsection (j) based on the
647+2 final report, the Director shall include those actions in
648+3 a proposed stipulation and consent order enclosed with the
649+4 final report issued to the examinee under subsection (f).
650+5 The examinee shall have 10 days to sign the order or
651+6 request a hearing in writing on the actions proposed in
652+7 the order regardless of whether the examinee requests a
653+8 hearing on the contents of the report under subsection
654+9 (f). If the examinee does not sign the order or request a
655+10 hearing on the proposed actions or the final report within
656+11 10 days, the Director may issue a final order imposing the
657+12 sanctions or corrective actions. Nothing in this Section
658+13 prevents the Department from sharing an earlier draft of
659+14 the proposed order with the examinee before issuing the
660+15 final report.
661+16 (6) If the examinee accepts the order and the final
662+17 report, the Director shall hold the content of the order
663+18 and report as private and confidential for a period of 30
664+19 days. Thereafter, the Director shall open the order and
665+20 report for public inspection.
666+21 (7) If the examinee makes a timely request for a
667+22 hearing on the order, the request must specify the
668+23 sanctions or corrective actions in the order that the
669+24 examinee is challenging. Any hearing shall follow the
670+25 procedures set forth in paragraphs (2) through (7) of
671+26 subsection (g).
672+
673+
674+
675+
676+
677+ SB1479 Enrolled - 19 - LRB103 05817 BMS 50837 b
678+
679+
680+SB1479 Enrolled- 20 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 20 - LRB103 05817 BMS 50837 b
681+ SB1479 Enrolled - 20 - LRB103 05817 BMS 50837 b
682+1 (8) If the examinee has also requested a hearing on
683+2 the contents of the report, then that hearing shall be
684+3 consolidated with the hearing on the order. The Director
685+4 shall not impose sanctions or corrective actions under
686+5 this Section until the conclusion of the hearing.
687+6 (9) The Director shall issue a decision accompanied by
688+7 findings and conclusions along with any corrective actions
689+8 or sanctions. Any sanctions or corrective actions shall be
690+9 based on the final report accepted by the examinee or
691+10 adopted by the Director under paragraph (9) of subsection
692+11 (g). The Director's order is a final administrative
693+12 decision and shall be served upon the examinee together
694+13 with a copy of the final report within 90 days after the
695+14 conclusion of the hearing or within 10 days after the
696+15 examinee's acceptance of the proposed order and final
697+16 report, as applicable. The hearing is deemed concluded on
698+17 the later of the last date of any live hearing or the final
699+18 deadline date for written submissions to the hearing
700+19 officer, including any continuances or supplemental
701+20 briefings permitted by the hearing officer.
702+21 (10) If an examinee has requested a hearing under this
703+22 subsection (i), the Director shall continue to hold the
704+23 final order and examination report as private and
705+24 confidential for a period of 49 days after the final
706+25 administrative decision. After the 49-day period expires,
707+26 the Director shall open the final order and examination
708+
709+
710+
711+
712+
713+ SB1479 Enrolled - 20 - LRB103 05817 BMS 50837 b
714+
715+
716+SB1479 Enrolled- 21 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 21 - LRB103 05817 BMS 50837 b
717+ SB1479 Enrolled - 21 - LRB103 05817 BMS 50837 b
718+1 report if a court of competent jurisdiction has not stayed
719+2 their publication.
720+3 (k) National market conduct databases. The Director shall
721+4 collect and report market data to the NAIC's market
722+5 information systems, including, but not limited to, the
723+6 Complaint Database System, the Examination Tracking System,
724+7 and the Regulatory Information Retrieval System, or other
725+8 successor NAIC products as determined by the Director.
726+9 Information collected and maintained by the Department for
727+10 inclusion in these NAIC market information systems shall be
728+11 compiled in a manner that meets the requirements of the NAIC.
729+12 Confidential or privileged information collected, reported, or
730+13 maintained under this subsection (k) shall be subject to the
731+14 protections and restrictions on disclosure in subsection (i).
732+15 (l) Immunity of market conduct surveillance personnel.
733+16 (1) No cause of action shall arise nor shall any
734+17 liability be imposed against the Director, the Director's
735+18 authorized representatives, market conduct surveillance
736+19 personnel, or an examiner appointed by the Director for
737+20 any statements made or conduct performed in good faith
738+21 while carrying out the provisions of this Section.
739+22 (2) No cause of action shall arise nor shall any
740+23 liability be imposed against any person for the act of
741+24 communicating or delivering information or data to the
742+25 Director, the Director's authorized representative, market
743+26 conduct surveillance personnel, or examiner pursuant to an
744+
745+
746+
747+
748+
749+ SB1479 Enrolled - 21 - LRB103 05817 BMS 50837 b
750+
751+
752+SB1479 Enrolled- 22 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 22 - LRB103 05817 BMS 50837 b
753+ SB1479 Enrolled - 22 - LRB103 05817 BMS 50837 b
754+1 examination made under this Section, if the act of
755+2 communication or delivery was performed in good faith and
756+3 without fraudulent intent or the intent to deceive.
757+4 (3) A person identified in paragraph (1) of this
758+5 subsection (l) shall be entitled to an award of attorney's
759+6 fees and costs if he or she is the prevailing party in a
760+7 civil cause of action for libel, slander, or any other
761+8 relevant tort arising out of activities in carrying out
762+9 the provisions of this Section and the party bringing the
763+10 action was not substantially justified in doing so. As
764+11 used in this paragraph, a proceeding is substantially
765+12 justified if it had a reasonable basis in law or fact at
766+13 the time it was initiated.
767+14 (4) This subsection (l) does not abrogate or modify in
768+15 any way any common law or statutory privilege or immunity
769+16 heretofore enjoyed by any person identified in paragraph
770+17 (1) of this subsection (l).
771+18 (1) The Director, for the purposes of ascertaining the
772+19 non-financial business practices, performance, and operations
773+20 of any company, may make examinations of:
774+21 (a) any company transacting or being organized to
775+22 transact business in this State;
776+23 (b) any person engaged in or proposing to be engaged
777+24 in the organization, promotion, or solicitation of shares
778+25 or capital contributions to or aiding in the formation of
779+26 a company;
780+
781+
782+
783+
784+
785+ SB1479 Enrolled - 22 - LRB103 05817 BMS 50837 b
786+
787+
788+SB1479 Enrolled- 23 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 23 - LRB103 05817 BMS 50837 b
789+ SB1479 Enrolled - 23 - LRB103 05817 BMS 50837 b
790+1 (c) any person having a contract, written or oral,
791+2 pertaining to the management or control of a company as
792+3 general agent, managing agent, or attorney-in-fact;
793+4 (d) any licensed or registered producer, firm, or
794+5 administrator, or any person, organization, or corporation
795+6 making application for any licenses or registration;
796+7 (e) any person engaged in the business of adjusting
797+8 losses or financing premiums; or
798+9 (f) any person, organization, trust, or corporation
799+10 having custody or control of information reasonably
800+11 related to the operation, performance, or conduct of a
801+12 company or person subject to the jurisdiction of the
802+13 Director.
803+14 (2) Every company or person being examined and its
804+15 officers, directors, and agents must provide to the Director
805+16 convenient and free access at all reasonable hours at its
806+17 office or location to all books, records, documents, and any
807+18 or all papers relating to the business, performance,
808+19 operations, and affairs of the company. The officers,
809+20 directors, and agents of the company or person must facilitate
810+21 the examination and aid in the examination so far as it is in
811+22 their power to do so.
812+23 The Director and any authorized examiner have the power to
813+24 administer oaths and examine under oath any person relative to
814+25 the business of the company being examined.
815+26 (3) The examiners designated by the Director under Section
816+
817+
818+
819+
820+
821+ SB1479 Enrolled - 23 - LRB103 05817 BMS 50837 b
822+
823+
824+SB1479 Enrolled- 24 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 24 - LRB103 05817 BMS 50837 b
825+ SB1479 Enrolled - 24 - LRB103 05817 BMS 50837 b
826+1 402 must make a full and true report of every examination made
827+2 by them, which contains only facts ascertained from the books,
828+3 papers, records, or documents, and other evidence obtained by
829+4 investigation and examined by them or ascertained from the
830+5 testimony of officers or agents or other persons examined
831+6 under oath concerning the business, affairs, conduct, and
832+7 performance of the company or person. The report of
833+8 examination must be verified by the oath of the examiner in
834+9 charge thereof, and when so verified is prima facie evidence
835+10 in any action or proceeding in the name of the State against
836+11 the company, its officers, or agents upon the facts stated
837+12 therein.
838+13 (4) The Director must notify the company or person made
839+14 the subject of any examination hereunder of the contents of
840+15 the verified examination report before filing it and making
841+16 the report public of any matters relating thereto, and must
842+17 afford the company or person an opportunity to demand a
843+18 hearing with reference to the facts and other evidence therein
844+19 contained.
845+20 The company or person may request a hearing within 10 days
846+21 after receipt of the examination report by giving the Director
847+22 written notice of that request, together with a statement of
848+23 its objections. The Director must then conduct a hearing in
849+24 accordance with Sections 402 and 403. He must issue a written
850+25 order based upon the examination report and upon the hearing
851+26 within 90 days after the report is filed or within 90 days
852+
853+
854+
855+
856+
857+ SB1479 Enrolled - 24 - LRB103 05817 BMS 50837 b
858+
859+
860+SB1479 Enrolled- 25 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 25 - LRB103 05817 BMS 50837 b
861+ SB1479 Enrolled - 25 - LRB103 05817 BMS 50837 b
862+1 after the hearing.
863+2 If the examination reveals that the company is operating
864+3 in violation of any law, regulation, or prior order, the
865+4 Director in the written order may require the company or
866+5 person to take any action he considers necessary or
867+6 appropriate in accordance with the report of examination or
868+7 any hearing thereon. The order is subject to judicial review
869+8 under the Administrative Review Law. The Director may withhold
870+9 any report from public inspection for such time as he may deem
871+10 proper and may, after filing the same, publish any part or all
872+11 of the report as he considers to be in the interest of the
873+12 public, in one or more newspapers in this State, without
874+13 expense to the company.
875+14 (5) Any company which or person who violates or aids and
876+15 abets any violation of a written order issued under this
877+16 Section shall be guilty of a business offense and may be fined
878+17 not more than $5,000. The penalty shall be paid into the
879+18 General Revenue fund of the State of Illinois.
880+19 (Source: P.A. 87-108.)
881+20 (215 ILCS 5/132.5) (from Ch. 73, par. 744.5)
882+21 Sec. 132.5. Examination reports.
883+22 (a) General description. All examination reports shall be
884+23 comprised of only facts appearing upon the books, records, or
885+24 other documents of the company, its agents, or other persons
886+25 examined or as ascertained from the testimony of its officers,
887+
888+
889+
890+
891+
892+ SB1479 Enrolled - 25 - LRB103 05817 BMS 50837 b
893+
894+
895+SB1479 Enrolled- 26 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 26 - LRB103 05817 BMS 50837 b
896+ SB1479 Enrolled - 26 - LRB103 05817 BMS 50837 b
897+1 agents, or other persons examined concerning its affairs and
898+2 the conclusions and recommendations as the examiners find
899+3 reasonably warranted from those facts.
900+4 (b) Filing of examination report. No later than 60 days
901+5 following completion of the examination, the examiner in
902+6 charge shall file with the Department a verified written
903+7 report of examination under oath. Upon receipt of the verified
904+8 report, the Department shall transmit the report to the
905+9 company examined, together with a notice that affords the
906+10 company examined a reasonable opportunity of not more than 30
907+11 days to make a written submission or rebuttal with respect to
908+12 any matters contained in the examination report.
909+13 (c) Adoption of the report on examination. Within 30 days
910+14 of the end of the period allowed for the receipt of written
911+15 submissions or rebuttals, the Director shall fully consider
912+16 and review the report, together with any written submissions
913+17 or rebuttals and any relevant portions of the examiners work
914+18 papers and enter an order:
915+19 (1) Adopting the examination report as filed or with
916+20 modification or corrections. If the examination report
917+21 reveals that the company is operating in violation of any
918+22 law, regulation, or prior order of the Director, the
919+23 Director may order the company to take any action the
920+24 Director considers necessary and appropriate to cure the
921+25 violation.
922+26 (2) Rejecting the examination report with directions
923+
924+
925+
926+
927+
928+ SB1479 Enrolled - 26 - LRB103 05817 BMS 50837 b
929+
930+
931+SB1479 Enrolled- 27 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 27 - LRB103 05817 BMS 50837 b
932+ SB1479 Enrolled - 27 - LRB103 05817 BMS 50837 b
933+1 to the examiners to reopen the examination for purposes of
934+2 obtaining additional data, documentation, or information
935+3 and refiling under subsection (b).
936+4 (3) Calling for an investigatory hearing with no less
937+5 than 20 days notice to the company for purposes of
938+6 obtaining additional documentation, data, information, and
939+7 testimony.
940+8 (d) Order and procedures. All orders entered under
941+9 paragraph (1) of subsection (c) shall be accompanied by
942+10 findings and conclusions resulting from the Director's
943+11 consideration and review of the examination report, relevant
944+12 examiner work papers, and any written submissions or
945+13 rebuttals. The order shall be considered a final
946+14 administrative decision and may be appealed in accordance with
947+15 the Administrative Review Law. The order shall be served upon
948+16 the company by certified mail, together with a copy of the
949+17 adopted examination report. Within 30 days of the issuance of
950+18 the adopted report, the company shall file affidavits executed
951+19 by each of its directors stating under oath that they have
952+20 received a copy of the adopted report and related orders.
953+21 Any hearing conducted under paragraph (3) of subsection
954+22 (c) by the Director or an authorized representative shall be
955+23 conducted as a nonadversarial confidential investigatory
956+24 proceeding as necessary for the resolution of any
957+25 inconsistencies, discrepancies, or disputed issues apparent
958+26 upon the face of the filed examination report or raised by or
959+
960+
961+
962+
963+
964+ SB1479 Enrolled - 27 - LRB103 05817 BMS 50837 b
965+
966+
967+SB1479 Enrolled- 28 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 28 - LRB103 05817 BMS 50837 b
968+ SB1479 Enrolled - 28 - LRB103 05817 BMS 50837 b
969+1 as a result of the Director's review of relevant work papers or
970+2 by the written submission or rebuttal of the company. Within
971+3 20 days of the conclusion of any hearing, the Director shall
972+4 enter an order under paragraph (1) of subsection (c).
973+5 The Director shall not appoint an examiner as an
974+6 authorized representative to conduct the hearing. The hearing
975+7 shall proceed expeditiously with discovery by the company
976+8 limited to the examiner's work papers that tend to
977+9 substantiate any assertions set forth in any written
978+10 submission or rebuttal. The Director or his representative may
979+11 issue subpoenas for the attendance of any witnesses or the
980+12 production of any documents deemed relevant to the
981+13 investigation, whether under the control of the Department,
982+14 the company, or other persons. The documents produced shall be
983+15 included in the record, and testimony taken by the Director or
984+16 his representative shall be under oath and preserved for the
985+17 record. Nothing contained in this Section shall require the
986+18 Department to disclose any information or records that would
987+19 indicate or show the existence or content of any investigation
988+20 or activity of a criminal justice agency.
989+21 The hearing shall proceed with the Director or his
990+22 representative posing questions to the persons subpoenaed.
991+23 Thereafter, the company and the Department may present
992+24 testimony relevant to the investigation. Cross-examination
993+25 shall be conducted only by the Director or his representative.
994+26 The company and the Department shall be permitted to make
995+
996+
997+
998+
999+
1000+ SB1479 Enrolled - 28 - LRB103 05817 BMS 50837 b
1001+
1002+
1003+SB1479 Enrolled- 29 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 29 - LRB103 05817 BMS 50837 b
1004+ SB1479 Enrolled - 29 - LRB103 05817 BMS 50837 b
1005+1 closing statements and may be represented by counsel of their
1006+2 choice.
1007+3 (e) Publication and use. Upon the adoption of the
1008+4 examination report under paragraph (1) of subsection (c), the
1009+5 Director shall continue to hold the content of the examination
1010+6 report as private and confidential information for a period of
1011+7 35 days, except to the extent provided in subsection (b).
1012+8 Thereafter, the Director may open the report for public
1013+9 inspection so long as no court of competent jurisdiction has
1014+10 stayed its publication.
1015+11 Nothing contained in this Code shall prevent or be
1016+12 construed as prohibiting the Director from disclosing the
1017+13 content of an examination report, preliminary examination
1018+14 report or results, or any matter relating thereto, to the
1019+15 insurance department of any other state or country or to law
1020+16 enforcement officials of this or any other state or agency of
1021+17 the federal government at any time, so long as the agency or
1022+18 office receiving the report or matters relating thereto agrees
1023+19 in writing to hold it confidential and in a manner consistent
1024+20 with this Code.
1025+21 In the event the Director determines that regulatory
1026+22 action is appropriate as a result of any examination, he may
1027+23 initiate any proceedings or actions as provided by law.
1028+24 (f) Confidentiality of ancillary information. All working
1029+25 papers, recorded information, documents, and copies thereof
1030+26 produced by, obtained by, or disclosed to the Director or any
1031+
1032+
1033+
1034+
1035+
1036+ SB1479 Enrolled - 29 - LRB103 05817 BMS 50837 b
1037+
1038+
1039+SB1479 Enrolled- 30 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 30 - LRB103 05817 BMS 50837 b
1040+ SB1479 Enrolled - 30 - LRB103 05817 BMS 50837 b
1041+1 other person in the course of any examination must be given
1042+2 confidential treatment, are not subject to subpoena, and may
1043+3 not be made public by the Director or any other persons, except
1044+4 to the extent provided in subsection (e). Access may also be
1045+5 granted to the National Association of Insurance
1046+6 Commissioners. Those parties must agree in writing before
1047+7 receiving the information to provide to it the same
1048+8 confidential treatment as required by this Section, unless the
1049+9 prior written consent of the company to which it pertains has
1050+10 been obtained.
1051+11 This subsection (f) applies to market conduct examinations
1052+12 described in Section 132 of this Code.
1053+13 (g) Disclosure. Nothing contained in this Code shall
1054+14 prevent or be construed as prohibiting the Director from
1055+15 disclosing the information described in subsections (e) and
1056+16 (f) to the Illinois Insurance Guaranty Fund regarding any
1057+17 member company defined in Section 534.5 if the member company
1058+18 has an authorized control level event as defined in Section
1059+19 35A-25. The Director may disclose the information described in
1060+20 this subsection so long as the Fund agrees in writing to hold
1061+21 that information confidential, in a manner consistent with
1062+22 this Code, and uses that information to prepare for the
1063+23 possible liquidation of the member company. Access to the
1064+24 information disclosed by the Director to the Fund shall be
1065+25 limited to the Fund's staff and its counsel. The Board of
1066+26 Directors of the Fund may have access to the information
1067+
1068+
1069+
1070+
1071+
1072+ SB1479 Enrolled - 30 - LRB103 05817 BMS 50837 b
1073+
1074+
1075+SB1479 Enrolled- 31 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 31 - LRB103 05817 BMS 50837 b
1076+ SB1479 Enrolled - 31 - LRB103 05817 BMS 50837 b
1077+1 disclosed by the Director to the Fund once the member company
1078+2 is subject to a delinquency proceeding under Article XIII
1079+3 subject to any terms and conditions established by the
1080+4 Director.
1081+5 (Source: P.A. 102-929, eff. 5-27-22.)
1082+6 (215 ILCS 5/155.35)
1083+7 Sec. 155.35. Insurance compliance self-evaluative
1084+8 privilege.
1085+9 (a) To encourage insurance companies and persons
1086+10 conducting activities regulated under this Code, both to
1087+11 conduct voluntary internal audits of their compliance programs
1088+12 and management systems and to assess and improve compliance
1089+13 with State and federal statutes, rules, and orders, an
1090+14 insurance compliance self-evaluative privilege is recognized
1091+15 to protect the confidentiality of communications relating to
1092+16 voluntary internal compliance audits. The General Assembly
1093+17 hereby finds and declares that protection of insurance
1094+18 consumers is enhanced by companies' voluntary compliance with
1095+19 this State's insurance and other laws and that the public will
1096+20 benefit from incentives to identify and remedy insurance and
1097+21 other compliance issues. It is further declared that limited
1098+22 expansion of the protection against disclosure will encourage
1099+23 voluntary compliance and improve insurance market conduct
1100+24 quality and that the voluntary provisions of this Section will
1101+25 not inhibit the exercise of the regulatory authority by those
1102+
1103+
1104+
1105+
1106+
1107+ SB1479 Enrolled - 31 - LRB103 05817 BMS 50837 b
1108+
1109+
1110+SB1479 Enrolled- 32 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 32 - LRB103 05817 BMS 50837 b
1111+ SB1479 Enrolled - 32 - LRB103 05817 BMS 50837 b
1112+1 entrusted with protecting insurance consumers.
1113+2 (b)(1) An insurance compliance self-evaluative audit
1114+3 document is privileged information and is not admissible as
1115+4 evidence in any legal action in any civil, criminal, or
1116+5 administrative proceeding, except as provided in subsections
1117+6 (c) and (d) of this Section. Documents, communications, data,
1118+7 reports, or other information created as a result of a claim
1119+8 involving personal injury or workers' compensation made
1120+9 against an insurance policy are not insurance compliance
1121+10 self-evaluative audit documents and are admissible as evidence
1122+11 in civil proceedings as otherwise provided by applicable rules
1123+12 of evidence or civil procedure, subject to any applicable
1124+13 statutory or common law privilege, including, but not limited
1125+14 to, the work product doctrine, the attorney-client privilege,
1126+15 or the subsequent remedial measures exclusion.
1127+16 (2) If any company, person, or entity performs or directs
1128+17 the performance of an insurance compliance audit, an officer
1129+18 or employee involved with the insurance compliance audit, or
1130+19 any consultant who is hired for the purpose of performing the
1131+20 insurance compliance audit, may not be examined in any civil,
1132+21 criminal, or administrative proceeding as to the insurance
1133+22 compliance audit or any insurance compliance self-evaluative
1134+23 audit document, as defined in this Section. This subsection
1135+24 (b)(2) does not apply if the privilege set forth in subsection
1136+25 (b)(1) of this Section is determined under subsection (c) or
1137+26 (d) not to apply.
1138+
1139+
1140+
1141+
1142+
1143+ SB1479 Enrolled - 32 - LRB103 05817 BMS 50837 b
1144+
1145+
1146+SB1479 Enrolled- 33 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 33 - LRB103 05817 BMS 50837 b
1147+ SB1479 Enrolled - 33 - LRB103 05817 BMS 50837 b
1148+1 (3) A company may voluntarily submit, in connection with
1149+2 examinations conducted under this Article, an insurance
1150+3 compliance self-evaluative audit document to the Director, or
1151+4 his or her designee, as a confidential document under
1152+5 subsection (i) of Section 132 or subsection (f) of Section
1153+6 132.5 of this Code without waiving the privilege set forth in
1154+7 this Section to which the company would otherwise be entitled;
1155+8 provided, however, that the provisions in Sections 132 and
1156+9 subsection (f) of Section 132.5 permitting the Director to
1157+10 make confidential documents public pursuant to subsection (e)
1158+11 of Section 132.5 and grant access to the National Association
1159+12 of Insurance Commissioners shall not apply to the insurance
1160+13 compliance self-evaluative audit document so voluntarily
1161+14 submitted. Nothing contained in this subsection shall give the
1162+15 Director any authority to compel a company to disclose
1163+16 involuntarily or otherwise provide an insurance compliance
1164+17 self-evaluative audit document.
1165+18 (c)(1) The privilege set forth in subsection (b) of this
1166+19 Section does not apply to the extent that it is expressly
1167+20 waived by the company that prepared or caused to be prepared
1168+21 the insurance compliance self-evaluative audit document.
1169+22 (2) In a civil or administrative proceeding, a court of
1170+23 record may, after an in camera review, require disclosure of
1171+24 material for which the privilege set forth in subsection (b)
1172+25 of this Section is asserted, if the court determines one of the
1173+26 following:
1174+
1175+
1176+
1177+
1178+
1179+ SB1479 Enrolled - 33 - LRB103 05817 BMS 50837 b
1180+
1181+
1182+SB1479 Enrolled- 34 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 34 - LRB103 05817 BMS 50837 b
1183+ SB1479 Enrolled - 34 - LRB103 05817 BMS 50837 b
1184+1 (A) the privilege is asserted for a fraudulent
1185+2 purpose;
1186+3 (B) the material is not subject to the privilege; or
1187+4 (C) even if subject to the privilege, the material
1188+5 shows evidence of noncompliance with State and federal
1189+6 statutes, rules and orders and the company failed to
1190+7 undertake reasonable corrective action or eliminate the
1191+8 noncompliance within a reasonable time.
1192+9 (3) In a criminal proceeding, a court of record may, after
1193+10 an in camera review, require disclosure of material for which
1194+11 the privilege described in subsection (b) of this Section is
1195+12 asserted, if the court determines one of the following:
1196+13 (A) the privilege is asserted for a fraudulent
1197+14 purpose;
1198+15 (B) the material is not subject to the privilege;
1199+16 (C) even if subject to the privilege, the material
1200+17 shows evidence of noncompliance with State and federal
1201+18 statutes, rules and orders and the company failed to
1202+19 undertake reasonable corrective action or eliminate such
1203+20 noncompliance within a reasonable time; or
1204+21 (D) the material contains evidence relevant to
1205+22 commission of a criminal offense under this Code, and all
1206+23 of the following factors are present:
1207+24 (i) the Director, State's Attorney, or Attorney
1208+25 General has a compelling need for the information;
1209+26 (ii) the information is not otherwise available;
1210+
1211+
1212+
1213+
1214+
1215+ SB1479 Enrolled - 34 - LRB103 05817 BMS 50837 b
1216+
1217+
1218+SB1479 Enrolled- 35 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 35 - LRB103 05817 BMS 50837 b
1219+ SB1479 Enrolled - 35 - LRB103 05817 BMS 50837 b
1220+1 and
1221+2 (iii) the Director, State's Attorney, or Attorney
1222+3 General is unable to obtain the substantial equivalent
1223+4 of the information by any means without incurring
1224+5 unreasonable cost and delay.
1225+6 (d)(1) Within 30 days after the Director, State's
1226+7 Attorney, or Attorney General makes a written request by
1227+8 certified mail for disclosure of an insurance compliance
1228+9 self-evaluative audit document under this subsection, the
1229+10 company that prepared or caused the document to be prepared
1230+11 may file with the appropriate court a petition requesting an
1231+12 in camera hearing on whether the insurance compliance
1232+13 self-evaluative audit document or portions of the document are
1233+14 privileged under this Section or subject to disclosure. The
1234+15 court has jurisdiction over a petition filed by a company
1235+16 under this subsection requesting an in camera hearing on
1236+17 whether the insurance compliance self-evaluative audit
1237+18 document or portions of the document are privileged or subject
1238+19 to disclosure. Failure by the company to file a petition
1239+20 waives the privilege.
1240+21 (2) A company asserting the insurance compliance
1241+22 self-evaluative privilege in response to a request for
1242+23 disclosure under this subsection shall include in its request
1243+24 for an in camera hearing all of the information set forth in
1244+25 subsection (d)(5) of this Section.
1245+26 (3) Upon the filing of a petition under this subsection,
1246+
1247+
1248+
1249+
1250+
1251+ SB1479 Enrolled - 35 - LRB103 05817 BMS 50837 b
1252+
1253+
1254+SB1479 Enrolled- 36 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 36 - LRB103 05817 BMS 50837 b
1255+ SB1479 Enrolled - 36 - LRB103 05817 BMS 50837 b
1256+1 the court shall issue an order scheduling, within 45 days
1257+2 after the filing of the petition, an in camera hearing to
1258+3 determine whether the insurance compliance self-evaluative
1259+4 audit document or portions of the document are privileged
1260+5 under this Section or subject to disclosure.
1261+6 (4) The court, after an in camera review, may require
1262+7 disclosure of material for which the privilege in subsection
1263+8 (b) of this Section is asserted if the court determines, based
1264+9 upon its in camera review, that any one of the conditions set
1265+10 forth in subsection (c)(2)(A) through (C) is applicable as to
1266+11 a civil or administrative proceeding or that any one of the
1267+12 conditions set forth in subsection (c)(3)(A) through (D) is
1268+13 applicable as to a criminal proceeding. Upon making such a
1269+14 determination, the court may only compel the disclosure of
1270+15 those portions of an insurance compliance self-evaluative
1271+16 audit document relevant to issues in dispute in the underlying
1272+17 proceeding. Any compelled disclosure will not be considered to
1273+18 be a public document or be deemed to be a waiver of the
1274+19 privilege for any other civil, criminal, or administrative
1275+20 proceeding. A party unsuccessfully opposing disclosure may
1276+21 apply to the court for an appropriate order protecting the
1277+22 document from further disclosure.
1278+23 (5) A company asserting the insurance compliance
1279+24 self-evaluative privilege in response to a request for
1280+25 disclosure under this subsection (d) shall provide to the
1281+26 Director, State's Attorney, or Attorney General, as the case
1282+
1283+
1284+
1285+
1286+
1287+ SB1479 Enrolled - 36 - LRB103 05817 BMS 50837 b
1288+
1289+
1290+SB1479 Enrolled- 37 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 37 - LRB103 05817 BMS 50837 b
1291+ SB1479 Enrolled - 37 - LRB103 05817 BMS 50837 b
1292+1 may be, at the time of filing any objection to the disclosure,
1293+2 all of the following information:
1294+3 (A) The date of the insurance compliance
1295+4 self-evaluative audit document.
1296+5 (B) The identity of the entity conducting the audit.
1297+6 (C) The general nature of the activities covered by
1298+7 the insurance compliance audit.
1299+8 (D) An identification of the portions of the insurance
1300+9 compliance self-evaluative audit document for which the
1301+10 privilege is being asserted.
1302+11 (e) (1) A company asserting the insurance compliance
1303+12 self-evaluative privilege set forth in subsection (b) of this
1304+13 Section has the burden of demonstrating the applicability of
1305+14 the privilege. Once a company has established the
1306+15 applicability of the privilege, a party seeking disclosure
1307+16 under subsections (c)(2)(A) or (C) of this Section has the
1308+17 burden of proving that the privilege is asserted for a
1309+18 fraudulent purpose or that the company failed to undertake
1310+19 reasonable corrective action or eliminate the noncompliance
1311+20 with a reasonable time. The Director, State's Attorney, or
1312+21 Attorney General seeking disclosure under subsection (c)(3) of
1313+22 this Section has the burden of proving the elements set forth
1314+23 in subsection (c)(3) of this Section.
1315+24 (2) The parties may at any time stipulate in proceedings
1316+25 under subsections (c) or (d) of this Section to entry of an
1317+26 order directing that specific information contained in an
1318+
1319+
1320+
1321+
1322+
1323+ SB1479 Enrolled - 37 - LRB103 05817 BMS 50837 b
1324+
1325+
1326+SB1479 Enrolled- 38 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 38 - LRB103 05817 BMS 50837 b
1327+ SB1479 Enrolled - 38 - LRB103 05817 BMS 50837 b
1328+1 insurance compliance self-evaluative audit document is or is
1329+2 not subject to the privilege provided under subsection (b) of
1330+3 this Section.
1331+4 (f) The privilege set forth in subsection (b) of this
1332+5 Section shall not extend to any of the following:
1333+6 (1) documents, communications, data, reports, or other
1334+7 information required to be collected, developed,
1335+8 maintained, reported, or otherwise made available to a
1336+9 regulatory agency pursuant to this Code, or other federal
1337+10 or State law, rule, or order;
1338+11 (2) information obtained by observation or monitoring
1339+12 by any regulatory agency; or
1340+13 (3) information obtained from a source independent of
1341+14 the insurance compliance audit.
1342+15 (g) As used in this Section:
1343+16 (1) "Insurance compliance audit" means a voluntary,
1344+17 internal evaluation, review, assessment, or audit not
1345+18 otherwise expressly required by law of a company or an
1346+19 activity regulated under this Code, or other State or
1347+20 federal law applicable to a company, or of management
1348+21 systems related to the company or activity, that is
1349+22 designed to identify and prevent noncompliance and to
1350+23 improve compliance with those statutes, rules, or orders.
1351+24 An insurance compliance audit may be conducted by the
1352+25 company, its employees, or by independent contractors.
1353+26 (2) "Insurance compliance self-evaluative audit
1354+
1355+
1356+
1357+
1358+
1359+ SB1479 Enrolled - 38 - LRB103 05817 BMS 50837 b
1360+
1361+
1362+SB1479 Enrolled- 39 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 39 - LRB103 05817 BMS 50837 b
1363+ SB1479 Enrolled - 39 - LRB103 05817 BMS 50837 b
1364+1 document" means documents prepared as a result of or in
1365+2 connection with and not prior to an insurance compliance
1366+3 audit. An insurance compliance self-evaluation audit
1367+4 document may include a written response to the findings of
1368+5 an insurance compliance audit. An insurance compliance
1369+6 self-evaluative audit document may include, but is not
1370+7 limited to, as applicable, field notes and records of
1371+8 observations, findings, opinions, suggestions,
1372+9 conclusions, drafts, memoranda, drawings, photographs,
1373+10 computer-generated or electronically recorded
1374+11 information, phone records, maps, charts, graphs, and
1375+12 surveys, provided this supporting information is collected
1376+13 or developed for the primary purpose and in the course of
1377+14 an insurance compliance audit. An insurance compliance
1378+15 self-evaluative audit document may also include any of the
1379+16 following:
1380+17 (A) an insurance compliance audit report prepared
1381+18 by an auditor, who may be an employee of the company or
1382+19 an independent contractor, which may include the scope
1383+20 of the audit, the information gained in the audit, and
1384+21 conclusions and recommendations, with exhibits and
1385+22 appendices;
1386+23 (B) memoranda and documents analyzing portions or
1387+24 all of the insurance compliance audit report and
1388+25 discussing potential implementation issues;
1389+26 (C) an implementation plan that addresses
1390+
1391+
1392+
1393+
1394+
1395+ SB1479 Enrolled - 39 - LRB103 05817 BMS 50837 b
1396+
1397+
1398+SB1479 Enrolled- 40 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 40 - LRB103 05817 BMS 50837 b
1399+ SB1479 Enrolled - 40 - LRB103 05817 BMS 50837 b
1400+1 correcting past noncompliance, improving current
1401+2 compliance, and preventing future noncompliance; or
1402+3 (D) analytic data generated in the course of
1403+4 conducting the insurance compliance audit.
1404+5 (3) "Company" has the same meaning as provided in
1405+6 Section 2 of this Code.
1406+7 (h) Nothing in this Section shall limit, waive, or
1407+8 abrogate the scope or nature of any statutory or common law
1408+9 privilege including, but not limited to, the work product
1409+10 doctrine, the attorney-client privilege, or the subsequent
1410+11 remedial measures exclusion.
1411+12 (Source: P.A. 90-499, eff. 8-19-97; 90-655, eff. 7-30-98.)
1412+13 (215 ILCS 5/402) (from Ch. 73, par. 1014)
1413+14 Sec. 402. Examinations, investigations and hearings. (1)
1414+15 All examinations, investigations and hearings provided for by
1415+16 this Code may be conducted either by the Director personally,
1416+17 or by one or more of the actuaries, technical advisors,
1417+18 deputies, supervisors or examiners employed or retained by the
1418+19 Department and designated by the Director for such purpose.
1419+20 When necessary to supplement its examination procedures, the
1420+21 Department may retain independent actuaries deemed competent
1421+22 by the Director, independent certified public accountants, or
1422+23 qualified examiners of insurance companies, or other qualified
1423+24 outside professional assistance deemed competent by the
1424+25 Director, or any combination of the foregoing, the cost of
1425+
1426+
1427+
1428+
1429+
1430+ SB1479 Enrolled - 40 - LRB103 05817 BMS 50837 b
1431+
1432+
1433+SB1479 Enrolled- 41 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 41 - LRB103 05817 BMS 50837 b
1434+ SB1479 Enrolled - 41 - LRB103 05817 BMS 50837 b
1435+1 which shall be borne by the company or person being examined.
1436+2 The Director may compensate independent actuaries, certified
1437+3 public accountants, and qualified examiners, and other
1438+4 qualified outside professional assistance retained for
1439+5 supplementing examination procedures in amounts not to exceed
1440+6 the reasonable and customary charges for such services. The
1441+7 Director may also accept as a part of the Department's
1442+8 examination of any company or person (a) a report by an
1443+9 independent actuary deemed competent by the Director or (b) a
1444+10 report of an audit made by an independent certified public
1445+11 accountant. Neither those persons so designated nor any
1446+12 members of their immediate families shall be officers of,
1447+13 connected with, or financially interested in any company other
1448+14 than as policyholders, nor shall they be financially
1449+15 interested in any other corporation or person affected by the
1450+16 examination, investigation or hearing.
1451+17 (2) All hearings provided for in this Code shall, unless
1452+18 otherwise specially provided, be held at such time and place
1453+19 as shall be designated in a notice which shall be given by the
1454+20 Director in writing to the person or company whose interests
1455+21 are affected, at least 10 days before the date designated
1456+22 therein. The notice shall state the subject of inquiry and the
1457+23 specific charges, if any. The hearings shall be held in the
1458+24 City of Springfield, the City of Chicago, or in the county
1459+25 where the principal business address of the person or company
1460+26 affected is located.
1461+
1462+
1463+
1464+
1465+
1466+ SB1479 Enrolled - 41 - LRB103 05817 BMS 50837 b
1467+
1468+
1469+SB1479 Enrolled- 42 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 42 - LRB103 05817 BMS 50837 b
1470+ SB1479 Enrolled - 42 - LRB103 05817 BMS 50837 b
1471+1 (Source: P.A. 87-757.)
1472+2 (215 ILCS 5/408) (from Ch. 73, par. 1020)
1473+3 (Text of Section before amendment by P.A. 103-75)
1474+4 Sec. 408. Fees and charges.
1475+5 (1) The Director shall charge, collect and give proper
1476+6 acquittances for the payment of the following fees and
1477+7 charges:
1478+8 (a) For filing all documents submitted for the
1479+9 incorporation or organization or certification of a
1480+10 domestic company, except for a fraternal benefit society,
1481+11 $2,000.
1482+12 (b) For filing all documents submitted for the
1483+13 incorporation or organization of a fraternal benefit
1484+14 society, $500.
1485+15 (c) For filing amendments to articles of incorporation
1486+16 and amendments to declaration of organization, except for
1487+17 a fraternal benefit society, a mutual benefit association,
1488+18 a burial society or a farm mutual, $200.
1489+19 (d) For filing amendments to articles of incorporation
1490+20 of a fraternal benefit society, a mutual benefit
1491+21 association or a burial society, $100.
1492+22 (e) For filing amendments to articles of incorporation
1493+23 of a farm mutual, $50.
1494+24 (f) For filing bylaws or amendments thereto, $50.
1495+25 (g) For filing agreement of merger or consolidation:
1496+
1497+
1498+
1499+
1500+
1501+ SB1479 Enrolled - 42 - LRB103 05817 BMS 50837 b
1502+
1503+
1504+SB1479 Enrolled- 43 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 43 - LRB103 05817 BMS 50837 b
1505+ SB1479 Enrolled - 43 - LRB103 05817 BMS 50837 b
1506+1 (i) for a domestic company, except for a fraternal
1507+2 benefit society, a mutual benefit association, a
1508+3 burial society, or a farm mutual, $2,000.
1509+4 (ii) for a foreign or alien company, except for a
1510+5 fraternal benefit society, $600.
1511+6 (iii) for a fraternal benefit society, a mutual
1512+7 benefit association, a burial society, or a farm
1513+8 mutual, $200.
1514+9 (h) For filing agreements of reinsurance by a domestic
1515+10 company, $200.
1516+11 (i) For filing all documents submitted by a foreign or
1517+12 alien company to be admitted to transact business or
1518+13 accredited as a reinsurer in this State, except for a
1519+14 fraternal benefit society, $5,000.
1520+15 (j) For filing all documents submitted by a foreign or
1521+16 alien fraternal benefit society to be admitted to transact
1522+17 business in this State, $500.
1523+18 (k) For filing declaration of withdrawal of a foreign
1524+19 or alien company, $50.
1525+20 (l) For filing annual statement by a domestic company,
1526+21 except a fraternal benefit society, a mutual benefit
1527+22 association, a burial society, or a farm mutual, $200.
1528+23 (m) For filing annual statement by a domestic
1529+24 fraternal benefit society, $100.
1530+25 (n) For filing annual statement by a farm mutual, a
1531+26 mutual benefit association, or a burial society, $50.
1532+
1533+
1534+
1535+
1536+
1537+ SB1479 Enrolled - 43 - LRB103 05817 BMS 50837 b
1538+
1539+
1540+SB1479 Enrolled- 44 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 44 - LRB103 05817 BMS 50837 b
1541+ SB1479 Enrolled - 44 - LRB103 05817 BMS 50837 b
1542+1 (o) For issuing a certificate of authority or renewal
1543+2 thereof except to a foreign fraternal benefit society,
1544+3 $400.
1545+4 (p) For issuing a certificate of authority or renewal
1546+5 thereof to a foreign fraternal benefit society, $200.
1547+6 (q) For issuing an amended certificate of authority,
1548+7 $50.
1549+8 (r) For each certified copy of certificate of
1550+9 authority, $20.
1551+10 (s) For each certificate of deposit, or valuation, or
1552+11 compliance or surety certificate, $20.
1553+12 (t) For copies of papers or records per page, $1.
1554+13 (u) For each certification to copies of papers or
1555+14 records, $10.
1556+15 (v) For multiple copies of documents or certificates
1557+16 listed in subparagraphs (r), (s), and (u) of paragraph (1)
1558+17 of this Section, $10 for the first copy of a certificate of
1559+18 any type and $5 for each additional copy of the same
1560+19 certificate requested at the same time, unless, pursuant
1561+20 to paragraph (2) of this Section, the Director finds these
1562+21 additional fees excessive.
1563+22 (w) For issuing a permit to sell shares or increase
1564+23 paid-up capital:
1565+24 (i) in connection with a public stock offering,
1566+25 $300;
1567+26 (ii) in any other case, $100.
1568+
1569+
1570+
1571+
1572+
1573+ SB1479 Enrolled - 44 - LRB103 05817 BMS 50837 b
1574+
1575+
1576+SB1479 Enrolled- 45 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 45 - LRB103 05817 BMS 50837 b
1577+ SB1479 Enrolled - 45 - LRB103 05817 BMS 50837 b
1578+1 (x) For issuing any other certificate required or
1579+2 permissible under the law, $50.
1580+3 (y) For filing a plan of exchange of the stock of a
1581+4 domestic stock insurance company, a plan of
1582+5 demutualization of a domestic mutual company, or a plan of
1583+6 reorganization under Article XII, $2,000.
1584+7 (z) For filing a statement of acquisition of a
1585+8 domestic company as defined in Section 131.4 of this Code,
1586+9 $2,000.
1587+10 (aa) For filing an agreement to purchase the business
1588+11 of an organization authorized under the Dental Service
1589+12 Plan Act or the Voluntary Health Services Plans Act or of a
1590+13 health maintenance organization or a limited health
1591+14 service organization, $2,000.
1592+15 (bb) For filing a statement of acquisition of a
1593+16 foreign or alien insurance company as defined in Section
1594+17 131.12a of this Code, $1,000.
1595+18 (cc) For filing a registration statement as required
1596+19 in Sections 131.13 and 131.14, the notification as
1597+20 required by Sections 131.16, 131.20a, or 141.4, or an
1598+21 agreement or transaction required by Sections 124.2(2),
1599+22 141, 141a, or 141.1, $200.
1600+23 (dd) For filing an application for licensing of:
1601+24 (i) a religious or charitable risk pooling trust
1602+25 or a workers' compensation pool, $1,000;
1603+26 (ii) a workers' compensation service company,
1604+
1605+
1606+
1607+
1608+
1609+ SB1479 Enrolled - 45 - LRB103 05817 BMS 50837 b
1610+
1611+
1612+SB1479 Enrolled- 46 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 46 - LRB103 05817 BMS 50837 b
1613+ SB1479 Enrolled - 46 - LRB103 05817 BMS 50837 b
1614+1 $500;
1615+2 (iii) a self-insured automobile fleet, $200; or
1616+3 (iv) a renewal of or amendment of any license
1617+4 issued pursuant to (i), (ii), or (iii) above, $100.
1618+5 (ee) For filing articles of incorporation for a
1619+6 syndicate to engage in the business of insurance through
1620+7 the Illinois Insurance Exchange, $2,000.
1621+8 (ff) For filing amended articles of incorporation for
1622+9 a syndicate engaged in the business of insurance through
1623+10 the Illinois Insurance Exchange, $100.
1624+11 (gg) For filing articles of incorporation for a
1625+12 limited syndicate to join with other subscribers or
1626+13 limited syndicates to do business through the Illinois
1627+14 Insurance Exchange, $1,000.
1628+15 (hh) For filing amended articles of incorporation for
1629+16 a limited syndicate to do business through the Illinois
1630+17 Insurance Exchange, $100.
1631+18 (ii) For a permit to solicit subscriptions to a
1632+19 syndicate or limited syndicate, $100.
1633+20 (jj) For the filing of each form as required in
1634+21 Section 143 of this Code, $50 per form. Informational and
1635+22 advertising filings shall be $25 per filing. The fee for
1636+23 advisory and rating organizations shall be $200 per form.
1637+24 (i) For the purposes of the form filing fee,
1638+25 filings made on insert page basis will be considered
1639+26 one form at the time of its original submission.
1640+
1641+
1642+
1643+
1644+
1645+ SB1479 Enrolled - 46 - LRB103 05817 BMS 50837 b
1646+
1647+
1648+SB1479 Enrolled- 47 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 47 - LRB103 05817 BMS 50837 b
1649+ SB1479 Enrolled - 47 - LRB103 05817 BMS 50837 b
1650+1 Changes made to a form subsequent to its approval
1651+2 shall be considered a new filing.
1652+3 (ii) Only one fee shall be charged for a form,
1653+4 regardless of the number of other forms or policies
1654+5 with which it will be used.
1655+6 (iii) Fees charged for a policy filed as it will be
1656+7 issued regardless of the number of forms comprising
1657+8 that policy shall not exceed $1,500. For advisory or
1658+9 rating organizations, fees charged for a policy filed
1659+10 as it will be issued regardless of the number of forms
1660+11 comprising that policy shall not exceed $2,500.
1661+12 (iv) The Director may by rule exempt forms from
1662+13 such fees.
1663+14 (kk) For filing an application for licensing of a
1664+15 reinsurance intermediary, $500.
1665+16 (ll) For filing an application for renewal of a
1666+17 license of a reinsurance intermediary, $200.
1667+18 (mm) For filing a plan of division of a domestic stock
1668+19 company under Article IIB, $10,000.
1669+20 (nn) For filing all documents submitted by a foreign
1670+21 or alien company to be a certified reinsurer in this
1671+22 State, except for a fraternal benefit society, $1,000.
1672+23 (oo) For filing a renewal by a foreign or alien
1673+24 company to be a certified reinsurer in this State, except
1674+25 for a fraternal benefit society, $400.
1675+26 (pp) For filing all documents submitted by a reinsurer
1676+
1677+
1678+
1679+
1680+
1681+ SB1479 Enrolled - 47 - LRB103 05817 BMS 50837 b
1682+
1683+
1684+SB1479 Enrolled- 48 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 48 - LRB103 05817 BMS 50837 b
1685+ SB1479 Enrolled - 48 - LRB103 05817 BMS 50837 b
1686+1 domiciled in a reciprocal jurisdiction, $1,000.
1687+2 (qq) For filing a renewal by a reinsurer domiciled in
1688+3 a reciprocal jurisdiction, $400.
1689+4 (rr) For registering a captive management company or
1690+5 renewal thereof, $50.
1691+6 (2) When printed copies or numerous copies of the same
1692+7 paper or records are furnished or certified, the Director may
1693+8 reduce such fees for copies if he finds them excessive. He may,
1694+9 when he considers it in the public interest, furnish without
1695+10 charge to state insurance departments and persons other than
1696+11 companies, copies or certified copies of reports of
1697+12 examinations and of other papers and records.
1698+13 (3)(a) The expenses incurred in any performance
1699+14 examination authorized by law shall be paid by the company or
1700+15 person being examined. The charge shall be consistent with
1701+16 that otherwise authorized by law and shall be reasonably
1702+17 related to the cost of the examination including but not
1703+18 limited to compensation of examiners, electronic data
1704+19 processing costs, supervision and preparation of an
1705+20 examination report and lodging and travel expenses. All
1706+21 lodging and travel expenses shall be in accord with the
1707+22 applicable travel regulations as published by the Department
1708+23 of Central Management Services and approved by the Governor's
1709+24 Travel Control Board, except that out-of-state lodging and
1710+25 travel expenses related to examinations authorized under
1711+26 Section 132 shall be in accordance with travel rates
1712+
1713+
1714+
1715+
1716+
1717+ SB1479 Enrolled - 48 - LRB103 05817 BMS 50837 b
1718+
1719+
1720+SB1479 Enrolled- 49 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 49 - LRB103 05817 BMS 50837 b
1721+ SB1479 Enrolled - 49 - LRB103 05817 BMS 50837 b
1722+1 prescribed under paragraph 301-7.2 of the Federal Travel
1723+2 Regulations, 41 C.F.R. 301-7.2, for reimbursement of
1724+3 subsistence expenses incurred during official travel. All
1725+4 lodging and travel expenses may be reimbursed directly upon
1726+5 authorization of the Director. With the exception of the
1727+6 direct reimbursements authorized by the Director, all
1728+7 performance examination charges collected by the Department
1729+8 shall be paid to the Insurance Producer Administration Fund,
1730+9 however, the electronic data processing costs incurred by the
1731+10 Department in the performance of any examination shall be
1732+11 billed directly to the company being examined for payment to
1733+12 the Technology Management Revolving Fund.
1734+13 (b) The costs and fees incurred in a market conduct
1735+14 examination shall be itemized and bills shall be provided to
1736+15 the examinee on a monthly basis for review prior to submission
1737+16 for payment. The Director shall review and affirmatively
1738+17 endorse detailed billings from any contracted, qualified
1739+18 outside professional assistance retained under Section 402 for
1740+19 market conduct examinations before the detailed billings are
1741+20 sent to the examinee. Before any qualified outside
1742+21 professional assistance conducts billable work on an
1743+22 examination, the Department shall disclose to the examinee the
1744+23 terms of the contracts with the qualified outside professional
1745+24 assistance that will be used, including the fees and hourly
1746+25 rates that can be charged.
1747+26 (4) At the time of any service of process on the Director
1748+
1749+
1750+
1751+
1752+
1753+ SB1479 Enrolled - 49 - LRB103 05817 BMS 50837 b
1754+
1755+
1756+SB1479 Enrolled- 50 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 50 - LRB103 05817 BMS 50837 b
1757+ SB1479 Enrolled - 50 - LRB103 05817 BMS 50837 b
1758+1 as attorney for such service, the Director shall charge and
1759+2 collect the sum of $40, which may be recovered as taxable costs
1760+3 by the party to the suit or action causing such service to be
1761+4 made if he prevails in such suit or action.
1762+5 (5) (a) The costs incurred by the Department of Insurance
1763+6 in conducting any hearing authorized by law shall be assessed
1764+7 against the parties to the hearing in such proportion as the
1765+8 Director of Insurance may determine upon consideration of all
1766+9 relevant circumstances including: (1) the nature of the
1767+10 hearing; (2) whether the hearing was instigated by, or for the
1768+11 benefit of a particular party or parties; (3) whether there is
1769+12 a successful party on the merits of the proceeding; and (4) the
1770+13 relative levels of participation by the parties.
1771+14 (b) For purposes of this subsection (5) costs incurred
1772+15 shall mean the hearing officer fees, court reporter fees, and
1773+16 travel expenses of Department of Insurance officers and
1774+17 employees; provided however, that costs incurred shall not
1775+18 include hearing officer fees or court reporter fees unless the
1776+19 Department has retained the services of independent
1777+20 contractors or outside experts to perform such functions.
1778+21 (c) The Director shall make the assessment of costs
1779+22 incurred as part of the final order or decision arising out of
1780+23 the proceeding; provided, however, that such order or decision
1781+24 shall include findings and conclusions in support of the
1782+25 assessment of costs. This subsection (5) shall not be
1783+26 construed as permitting the payment of travel expenses unless
1784+
1785+
1786+
1787+
1788+
1789+ SB1479 Enrolled - 50 - LRB103 05817 BMS 50837 b
1790+
1791+
1792+SB1479 Enrolled- 51 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 51 - LRB103 05817 BMS 50837 b
1793+ SB1479 Enrolled - 51 - LRB103 05817 BMS 50837 b
1794+1 calculated in accordance with the applicable travel
1795+2 regulations of the Department of Central Management Services,
1796+3 as approved by the Governor's Travel Control Board. The
1797+4 Director as part of such order or decision shall require all
1798+5 assessments for hearing officer fees and court reporter fees,
1799+6 if any, to be paid directly to the hearing officer or court
1800+7 reporter by the party(s) assessed for such costs. The
1801+8 assessments for travel expenses of Department officers and
1802+9 employees shall be reimbursable to the Director of Insurance
1803+10 for deposit to the fund out of which those expenses had been
1804+11 paid.
1805+12 (d) The provisions of this subsection (5) shall apply in
1806+13 the case of any hearing conducted by the Director of Insurance
1807+14 not otherwise specifically provided for by law.
1808+15 (6) The Director shall charge and collect an annual
1809+16 financial regulation fee from every domestic company for
1810+17 examination and analysis of its financial condition and to
1811+18 fund the internal costs and expenses of the Interstate
1812+19 Insurance Receivership Commission as may be allocated to the
1813+20 State of Illinois and companies doing an insurance business in
1814+21 this State pursuant to Article X of the Interstate Insurance
1815+22 Receivership Compact. The fee shall be the greater fixed
1816+23 amount based upon the combination of nationwide direct premium
1817+24 income and nationwide reinsurance assumed premium income or
1818+25 upon admitted assets calculated under this subsection as
1819+26 follows:
1820+
1821+
1822+
1823+
1824+
1825+ SB1479 Enrolled - 51 - LRB103 05817 BMS 50837 b
1826+
1827+
1828+SB1479 Enrolled- 52 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 52 - LRB103 05817 BMS 50837 b
1829+ SB1479 Enrolled - 52 - LRB103 05817 BMS 50837 b
1830+1 (a) Combination of nationwide direct premium income
1831+2 and nationwide reinsurance assumed premium.
1832+3 (i) $150, if the premium is less than $500,000 and
1833+4 there is no reinsurance assumed premium;
1834+5 (ii) $750, if the premium is $500,000 or more, but
1835+6 less than $5,000,000 and there is no reinsurance
1836+7 assumed premium; or if the premium is less than
1837+8 $5,000,000 and the reinsurance assumed premium is less
1838+9 than $10,000,000;
1839+10 (iii) $3,750, if the premium is less than
1840+11 $5,000,000 and the reinsurance assumed premium is
1841+12 $10,000,000 or more;
1842+13 (iv) $7,500, if the premium is $5,000,000 or more,
1843+14 but less than $10,000,000;
1844+15 (v) $18,000, if the premium is $10,000,000 or
1845+16 more, but less than $25,000,000;
1846+17 (vi) $22,500, if the premium is $25,000,000 or
1847+18 more, but less than $50,000,000;
1848+19 (vii) $30,000, if the premium is $50,000,000 or
1849+20 more, but less than $100,000,000;
1850+21 (viii) $37,500, if the premium is $100,000,000 or
1851+22 more.
1852+23 (b) Admitted assets.
1853+24 (i) $150, if admitted assets are less than
1854+25 $1,000,000;
1855+26 (ii) $750, if admitted assets are $1,000,000 or
1856+
1857+
1858+
1859+
1860+
1861+ SB1479 Enrolled - 52 - LRB103 05817 BMS 50837 b
1862+
1863+
1864+SB1479 Enrolled- 53 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 53 - LRB103 05817 BMS 50837 b
1865+ SB1479 Enrolled - 53 - LRB103 05817 BMS 50837 b
1866+1 more, but less than $5,000,000;
1867+2 (iii) $3,750, if admitted assets are $5,000,000 or
1868+3 more, but less than $25,000,000;
1869+4 (iv) $7,500, if admitted assets are $25,000,000 or
1870+5 more, but less than $50,000,000;
1871+6 (v) $18,000, if admitted assets are $50,000,000 or
1872+7 more, but less than $100,000,000;
1873+8 (vi) $22,500, if admitted assets are $100,000,000
1874+9 or more, but less than $500,000,000;
1875+10 (vii) $30,000, if admitted assets are $500,000,000
1876+11 or more, but less than $1,000,000,000;
1877+12 (viii) $37,500, if admitted assets are
1878+13 $1,000,000,000 or more.
1879+14 (c) The sum of financial regulation fees charged to
1880+15 the domestic companies of the same affiliated group shall
1881+16 not exceed $250,000 in the aggregate in any single year
1882+17 and shall be billed by the Director to the member company
1883+18 designated by the group.
1884+19 (7) The Director shall charge and collect an annual
1885+20 financial regulation fee from every foreign or alien company,
1886+21 except fraternal benefit societies, for the examination and
1887+22 analysis of its financial condition and to fund the internal
1888+23 costs and expenses of the Interstate Insurance Receivership
1889+24 Commission as may be allocated to the State of Illinois and
1890+25 companies doing an insurance business in this State pursuant
1891+26 to Article X of the Interstate Insurance Receivership Compact.
1892+
1893+
1894+
1895+
1896+
1897+ SB1479 Enrolled - 53 - LRB103 05817 BMS 50837 b
1898+
1899+
1900+SB1479 Enrolled- 54 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 54 - LRB103 05817 BMS 50837 b
1901+ SB1479 Enrolled - 54 - LRB103 05817 BMS 50837 b
1902+1 The fee shall be a fixed amount based upon Illinois direct
1903+2 premium income and nationwide reinsurance assumed premium
1904+3 income in accordance with the following schedule:
1905+4 (a) $150, if the premium is less than $500,000 and
1906+5 there is no reinsurance assumed premium;
1907+6 (b) $750, if the premium is $500,000 or more, but less
1908+7 than $5,000,000 and there is no reinsurance assumed
1909+8 premium; or if the premium is less than $5,000,000 and the
1910+9 reinsurance assumed premium is less than $10,000,000;
1911+10 (c) $3,750, if the premium is less than $5,000,000 and
1912+11 the reinsurance assumed premium is $10,000,000 or more;
1913+12 (d) $7,500, if the premium is $5,000,000 or more, but
1914+13 less than $10,000,000;
1915+14 (e) $18,000, if the premium is $10,000,000 or more,
1916+15 but less than $25,000,000;
1917+16 (f) $22,500, if the premium is $25,000,000 or more,
1918+17 but less than $50,000,000;
1919+18 (g) $30,000, if the premium is $50,000,000 or more,
1920+19 but less than $100,000,000;
1921+20 (h) $37,500, if the premium is $100,000,000 or more.
1922+21 The sum of financial regulation fees under this subsection
1923+22 (7) charged to the foreign or alien companies within the same
1924+23 affiliated group shall not exceed $250,000 in the aggregate in
1925+24 any single year and shall be billed by the Director to the
1926+25 member company designated by the group.
1927+26 (8) Beginning January 1, 1992, the financial regulation
1928+
1929+
1930+
1931+
1932+
1933+ SB1479 Enrolled - 54 - LRB103 05817 BMS 50837 b
1934+
1935+
1936+SB1479 Enrolled- 55 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 55 - LRB103 05817 BMS 50837 b
1937+ SB1479 Enrolled - 55 - LRB103 05817 BMS 50837 b
1938+1 fees imposed under subsections (6) and (7) of this Section
1939+2 shall be paid by each company or domestic affiliated group
1940+3 annually. After January 1, 1994, the fee shall be billed by
1941+4 Department invoice based upon the company's premium income or
1942+5 admitted assets as shown in its annual statement for the
1943+6 preceding calendar year. The invoice is due upon receipt and
1944+7 must be paid no later than June 30 of each calendar year. All
1945+8 financial regulation fees collected by the Department shall be
1946+9 paid to the Insurance Financial Regulation Fund. The
1947+10 Department may not collect financial examiner per diem charges
1948+11 from companies subject to subsections (6) and (7) of this
1949+12 Section undergoing financial examination after June 30, 1992.
1950+13 (9) In addition to the financial regulation fee required
1951+14 by this Section, a company undergoing any financial
1952+15 examination authorized by law shall pay the following costs
1953+16 and expenses incurred by the Department: electronic data
1954+17 processing costs, the expenses authorized under Section 131.21
1955+18 and subsection (d) of Section 132.4 of this Code, and lodging
1956+19 and travel expenses.
1957+20 Electronic data processing costs incurred by the
1958+21 Department in the performance of any examination shall be
1959+22 billed directly to the company undergoing examination for
1960+23 payment to the Technology Management Revolving Fund. Except
1961+24 for direct reimbursements authorized by the Director or direct
1962+25 payments made under Section 131.21 or subsection (d) of
1963+26 Section 132.4 of this Code, all financial regulation fees and
1964+
1965+
1966+
1967+
1968+
1969+ SB1479 Enrolled - 55 - LRB103 05817 BMS 50837 b
1970+
1971+
1972+SB1479 Enrolled- 56 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 56 - LRB103 05817 BMS 50837 b
1973+ SB1479 Enrolled - 56 - LRB103 05817 BMS 50837 b
1974+1 all financial examination charges collected by the Department
1975+2 shall be paid to the Insurance Financial Regulation Fund.
1976+3 All lodging and travel expenses shall be in accordance
1977+4 with applicable travel regulations published by the Department
1978+5 of Central Management Services and approved by the Governor's
1979+6 Travel Control Board, except that out-of-state lodging and
1980+7 travel expenses related to examinations authorized under
1981+8 Sections 132.1 through 132.7 shall be in accordance with
1982+9 travel rates prescribed under paragraph 301-7.2 of the Federal
1983+10 Travel Regulations, 41 C.F.R. 301-7.2, for reimbursement of
1984+11 subsistence expenses incurred during official travel. All
1985+12 lodging and travel expenses may be reimbursed directly upon
1986+13 the authorization of the Director.
1987+14 In the case of an organization or person not subject to the
1988+15 financial regulation fee, the expenses incurred in any
1989+16 financial examination authorized by law shall be paid by the
1990+17 organization or person being examined. The charge shall be
1991+18 reasonably related to the cost of the examination including,
1992+19 but not limited to, compensation of examiners and other costs
1993+20 described in this subsection.
1994+21 (10) Any company, person, or entity failing to make any
1995+22 payment of $150 or more as required under this Section shall be
1996+23 subject to the penalty and interest provisions provided for in
1997+24 subsections (4) and (7) of Section 412.
1998+25 (11) Unless otherwise specified, all of the fees collected
1999+26 under this Section shall be paid into the Insurance Financial
2000+
2001+
2002+
2003+
2004+
2005+ SB1479 Enrolled - 56 - LRB103 05817 BMS 50837 b
2006+
2007+
2008+SB1479 Enrolled- 57 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 57 - LRB103 05817 BMS 50837 b
2009+ SB1479 Enrolled - 57 - LRB103 05817 BMS 50837 b
2010+1 Regulation Fund.
2011+2 (12) For purposes of this Section:
2012+3 (a) "Domestic company" means a company as defined in
2013+4 Section 2 of this Code which is incorporated or organized
2014+5 under the laws of this State, and in addition includes a
2015+6 not-for-profit corporation authorized under the Dental
2016+7 Service Plan Act or the Voluntary Health Services Plans
2017+8 Act, a health maintenance organization, and a limited
2018+9 health service organization.
2019+10 (b) "Foreign company" means a company as defined in
2020+11 Section 2 of this Code which is incorporated or organized
2021+12 under the laws of any state of the United States other than
2022+13 this State and in addition includes a health maintenance
2023+14 organization and a limited health service organization
2024+15 which is incorporated or organized under the laws of any
2025+16 state of the United States other than this State.
2026+17 (c) "Alien company" means a company as defined in
2027+18 Section 2 of this Code which is incorporated or organized
2028+19 under the laws of any country other than the United
2029+20 States.
2030+21 (d) "Fraternal benefit society" means a corporation,
2031+22 society, order, lodge or voluntary association as defined
2032+23 in Section 282.1 of this Code.
2033+24 (e) "Mutual benefit association" means a company,
2034+25 association or corporation authorized by the Director to
2035+26 do business in this State under the provisions of Article
2036+
2037+
2038+
2039+
2040+
2041+ SB1479 Enrolled - 57 - LRB103 05817 BMS 50837 b
2042+
2043+
2044+SB1479 Enrolled- 58 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 58 - LRB103 05817 BMS 50837 b
2045+ SB1479 Enrolled - 58 - LRB103 05817 BMS 50837 b
2046+1 XVIII of this Code.
2047+2 (f) "Burial society" means a person, firm,
2048+3 corporation, society or association of individuals
2049+4 authorized by the Director to do business in this State
2050+5 under the provisions of Article XIX of this Code.
2051+6 (g) "Farm mutual" means a district, county and
2052+7 township mutual insurance company authorized by the
2053+8 Director to do business in this State under the provisions
2054+9 of the Farm Mutual Insurance Company Act of 1986.
2055+10 (Source: P.A. 102-775, eff. 5-13-22.)
2056+11 (Text of Section after amendment by P.A. 103-75)
2057+12 Sec. 408. Fees and charges.
2058+13 (1) The Director shall charge, collect and give proper
2059+14 acquittances for the payment of the following fees and
2060+15 charges:
2061+16 (a) For filing all documents submitted for the
2062+17 incorporation or organization or certification of a
2063+18 domestic company, except for a fraternal benefit society,
2064+19 $2,000.
2065+20 (b) For filing all documents submitted for the
2066+21 incorporation or organization of a fraternal benefit
2067+22 society, $500.
2068+23 (c) For filing amendments to articles of incorporation
2069+24 and amendments to declaration of organization, except for
2070+25 a fraternal benefit society, a mutual benefit association,
2071+
2072+
2073+
2074+
2075+
2076+ SB1479 Enrolled - 58 - LRB103 05817 BMS 50837 b
2077+
2078+
2079+SB1479 Enrolled- 59 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 59 - LRB103 05817 BMS 50837 b
2080+ SB1479 Enrolled - 59 - LRB103 05817 BMS 50837 b
2081+1 a burial society or a farm mutual, $200.
2082+2 (d) For filing amendments to articles of incorporation
2083+3 of a fraternal benefit society, a mutual benefit
2084+4 association or a burial society, $100.
2085+5 (e) For filing amendments to articles of incorporation
2086+6 of a farm mutual, $50.
2087+7 (f) For filing bylaws or amendments thereto, $50.
2088+8 (g) For filing agreement of merger or consolidation:
2089+9 (i) for a domestic company, except for a fraternal
2090+10 benefit society, a mutual benefit association, a
2091+11 burial society, or a farm mutual, $2,000.
2092+12 (ii) for a foreign or alien company, except for a
2093+13 fraternal benefit society, $600.
2094+14 (iii) for a fraternal benefit society, a mutual
2095+15 benefit association, a burial society, or a farm
2096+16 mutual, $200.
2097+17 (h) For filing agreements of reinsurance by a domestic
2098+18 company, $200.
2099+19 (i) For filing all documents submitted by a foreign or
2100+20 alien company to be admitted to transact business or
2101+21 accredited as a reinsurer in this State, except for a
2102+22 fraternal benefit society, $5,000.
2103+23 (j) For filing all documents submitted by a foreign or
2104+24 alien fraternal benefit society to be admitted to transact
2105+25 business in this State, $500.
2106+26 (k) For filing declaration of withdrawal of a foreign
2107+
2108+
2109+
2110+
2111+
2112+ SB1479 Enrolled - 59 - LRB103 05817 BMS 50837 b
2113+
2114+
2115+SB1479 Enrolled- 60 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 60 - LRB103 05817 BMS 50837 b
2116+ SB1479 Enrolled - 60 - LRB103 05817 BMS 50837 b
2117+1 or alien company, $50.
2118+2 (l) For filing annual statement by a domestic company,
2119+3 except a fraternal benefit society, a mutual benefit
2120+4 association, a burial society, or a farm mutual, $200.
2121+5 (m) For filing annual statement by a domestic
2122+6 fraternal benefit society, $100.
2123+7 (n) For filing annual statement by a farm mutual, a
2124+8 mutual benefit association, or a burial society, $50.
2125+9 (o) For issuing a certificate of authority or renewal
2126+10 thereof except to a foreign fraternal benefit society,
2127+11 $400.
2128+12 (p) For issuing a certificate of authority or renewal
2129+13 thereof to a foreign fraternal benefit society, $200.
2130+14 (q) For issuing an amended certificate of authority,
2131+15 $50.
2132+16 (r) For each certified copy of certificate of
2133+17 authority, $20.
2134+18 (s) For each certificate of deposit, or valuation, or
2135+19 compliance or surety certificate, $20.
2136+20 (t) For copies of papers or records per page, $1.
2137+21 (u) For each certification to copies of papers or
2138+22 records, $10.
2139+23 (v) For multiple copies of documents or certificates
2140+24 listed in subparagraphs (r), (s), and (u) of paragraph (1)
2141+25 of this Section, $10 for the first copy of a certificate of
2142+26 any type and $5 for each additional copy of the same
2143+
2144+
2145+
2146+
2147+
2148+ SB1479 Enrolled - 60 - LRB103 05817 BMS 50837 b
2149+
2150+
2151+SB1479 Enrolled- 61 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 61 - LRB103 05817 BMS 50837 b
2152+ SB1479 Enrolled - 61 - LRB103 05817 BMS 50837 b
2153+1 certificate requested at the same time, unless, pursuant
2154+2 to paragraph (2) of this Section, the Director finds these
2155+3 additional fees excessive.
2156+4 (w) For issuing a permit to sell shares or increase
2157+5 paid-up capital:
2158+6 (i) in connection with a public stock offering,
2159+7 $300;
2160+8 (ii) in any other case, $100.
2161+9 (x) For issuing any other certificate required or
2162+10 permissible under the law, $50.
2163+11 (y) For filing a plan of exchange of the stock of a
2164+12 domestic stock insurance company, a plan of
2165+13 demutualization of a domestic mutual company, or a plan of
2166+14 reorganization under Article XII, $2,000.
2167+15 (z) For filing a statement of acquisition of a
2168+16 domestic company as defined in Section 131.4 of this Code,
2169+17 $2,000.
2170+18 (aa) For filing an agreement to purchase the business
2171+19 of an organization authorized under the Dental Service
2172+20 Plan Act or the Voluntary Health Services Plans Act or of a
2173+21 health maintenance organization or a limited health
2174+22 service organization, $2,000.
2175+23 (bb) For filing a statement of acquisition of a
2176+24 foreign or alien insurance company as defined in Section
2177+25 131.12a of this Code, $1,000.
2178+26 (cc) For filing a registration statement as required
2179+
2180+
2181+
2182+
2183+
2184+ SB1479 Enrolled - 61 - LRB103 05817 BMS 50837 b
2185+
2186+
2187+SB1479 Enrolled- 62 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 62 - LRB103 05817 BMS 50837 b
2188+ SB1479 Enrolled - 62 - LRB103 05817 BMS 50837 b
2189+1 in Sections 131.13 and 131.14, the notification as
2190+2 required by Sections 131.16, 131.20a, or 141.4, or an
2191+3 agreement or transaction required by Sections 124.2(2),
2192+4 141, 141a, or 141.1, $200.
2193+5 (dd) For filing an application for licensing of:
2194+6 (i) a religious or charitable risk pooling trust
2195+7 or a workers' compensation pool, $1,000;
2196+8 (ii) a workers' compensation service company,
2197+9 $500;
2198+10 (iii) a self-insured automobile fleet, $200; or
2199+11 (iv) a renewal of or amendment of any license
2200+12 issued pursuant to (i), (ii), or (iii) above, $100.
2201+13 (ee) For filing articles of incorporation for a
2202+14 syndicate to engage in the business of insurance through
2203+15 the Illinois Insurance Exchange, $2,000.
2204+16 (ff) For filing amended articles of incorporation for
2205+17 a syndicate engaged in the business of insurance through
2206+18 the Illinois Insurance Exchange, $100.
2207+19 (gg) For filing articles of incorporation for a
2208+20 limited syndicate to join with other subscribers or
2209+21 limited syndicates to do business through the Illinois
2210+22 Insurance Exchange, $1,000.
2211+23 (hh) For filing amended articles of incorporation for
2212+24 a limited syndicate to do business through the Illinois
2213+25 Insurance Exchange, $100.
2214+26 (ii) For a permit to solicit subscriptions to a
2215+
2216+
2217+
2218+
2219+
2220+ SB1479 Enrolled - 62 - LRB103 05817 BMS 50837 b
2221+
2222+
2223+SB1479 Enrolled- 63 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 63 - LRB103 05817 BMS 50837 b
2224+ SB1479 Enrolled - 63 - LRB103 05817 BMS 50837 b
2225+1 syndicate or limited syndicate, $100.
2226+2 (jj) For the filing of each form as required in
2227+3 Section 143 of this Code, $50 per form. Informational and
2228+4 advertising filings shall be $25 per filing. The fee for
2229+5 advisory and rating organizations shall be $200 per form.
2230+6 (i) For the purposes of the form filing fee,
2231+7 filings made on insert page basis will be considered
2232+8 one form at the time of its original submission.
2233+9 Changes made to a form subsequent to its approval
2234+10 shall be considered a new filing.
2235+11 (ii) Only one fee shall be charged for a form,
2236+12 regardless of the number of other forms or policies
2237+13 with which it will be used.
2238+14 (iii) Fees charged for a policy filed as it will be
2239+15 issued regardless of the number of forms comprising
2240+16 that policy shall not exceed $1,500. For advisory or
2241+17 rating organizations, fees charged for a policy filed
2242+18 as it will be issued regardless of the number of forms
2243+19 comprising that policy shall not exceed $2,500.
2244+20 (iv) The Director may by rule exempt forms from
2245+21 such fees.
2246+22 (kk) For filing an application for licensing of a
2247+23 reinsurance intermediary, $500.
2248+24 (ll) For filing an application for renewal of a
2249+25 license of a reinsurance intermediary, $200.
2250+26 (mm) For filing a plan of division of a domestic stock
2251+
2252+
2253+
2254+
2255+
2256+ SB1479 Enrolled - 63 - LRB103 05817 BMS 50837 b
2257+
2258+
2259+SB1479 Enrolled- 64 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 64 - LRB103 05817 BMS 50837 b
2260+ SB1479 Enrolled - 64 - LRB103 05817 BMS 50837 b
2261+1 company under Article IIB, $10,000.
2262+2 (nn) For filing all documents submitted by a foreign
2263+3 or alien company to be a certified reinsurer in this
2264+4 State, except for a fraternal benefit society, $1,000.
2265+5 (oo) For filing a renewal by a foreign or alien
2266+6 company to be a certified reinsurer in this State, except
2267+7 for a fraternal benefit society, $400.
2268+8 (pp) For filing all documents submitted by a reinsurer
2269+9 domiciled in a reciprocal jurisdiction, $1,000.
2270+10 (qq) For filing a renewal by a reinsurer domiciled in
2271+11 a reciprocal jurisdiction, $400.
2272+12 (rr) For registering a captive management company or
2273+13 renewal thereof, $50.
2274+14 (ss) For filing an insurance business transfer plan
2275+15 under Article XLVII, $25,000.
2276+16 (2) When printed copies or numerous copies of the same
2277+17 paper or records are furnished or certified, the Director may
2278+18 reduce such fees for copies if he finds them excessive. He may,
2279+19 when he considers it in the public interest, furnish without
2280+20 charge to state insurance departments and persons other than
2281+21 companies, copies or certified copies of reports of
2282+22 examinations and of other papers and records.
2283+23 (3)(a) The expenses incurred in any performance
2284+24 examination authorized by law shall be paid by the company or
2285+25 person being examined. The charge shall be consistent with
2286+26 that otherwise authorized by law and shall be reasonably
2287+
2288+
2289+
2290+
2291+
2292+ SB1479 Enrolled - 64 - LRB103 05817 BMS 50837 b
2293+
2294+
2295+SB1479 Enrolled- 65 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 65 - LRB103 05817 BMS 50837 b
2296+ SB1479 Enrolled - 65 - LRB103 05817 BMS 50837 b
2297+1 related to the cost of the examination including but not
2298+2 limited to compensation of examiners, electronic data
2299+3 processing costs, supervision and preparation of an
2300+4 examination report and lodging and travel expenses. All
2301+5 lodging and travel expenses shall be in accord with the
2302+6 applicable travel regulations as published by the Department
2303+7 of Central Management Services and approved by the Governor's
2304+8 Travel Control Board, except that out-of-state lodging and
2305+9 travel expenses related to examinations authorized under
2306+10 Section 132 shall be in accordance with travel rates
2307+11 prescribed under paragraph 301-7.2 of the Federal Travel
2308+12 Regulations, 41 C.F.R. 301-7.2, for reimbursement of
2309+13 subsistence expenses incurred during official travel. All
2310+14 lodging and travel expenses may be reimbursed directly upon
2311+15 authorization of the Director. With the exception of the
2312+16 direct reimbursements authorized by the Director, all
2313+17 performance examination charges collected by the Department
2314+18 shall be paid to the Insurance Producer Administration Fund,
2315+19 however, the electronic data processing costs incurred by the
2316+20 Department in the performance of any examination shall be
2317+21 billed directly to the company being examined for payment to
2318+22 the Technology Management Revolving Fund.
2319+23 (b) The costs and fees incurred in a market conduct
2320+24 examination shall be itemized and bills shall be provided to
2321+25 the examinee on a monthly basis for review prior to submission
2322+26 for payment. The Director shall review and affirmatively
2323+
2324+
2325+
2326+
2327+
2328+ SB1479 Enrolled - 65 - LRB103 05817 BMS 50837 b
2329+
2330+
2331+SB1479 Enrolled- 66 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 66 - LRB103 05817 BMS 50837 b
2332+ SB1479 Enrolled - 66 - LRB103 05817 BMS 50837 b
2333+1 endorse detailed billings from any contracted, qualified
2334+2 outside professional assistance retained under Section 402 for
2335+3 market conduct examinations before the detailed billings are
2336+4 sent to the examinee. Before any qualified outside
2337+5 professional assistance conducts billable work on an
2338+6 examination, the Department shall disclose to the examinee the
2339+7 terms of the contracts with the qualified outside professional
2340+8 assistance that will be used, including the fees and hourly
2341+9 rates that can be charged.
2342+10 (4) At the time of any service of process on the Director
2343+11 as attorney for such service, the Director shall charge and
2344+12 collect the sum of $40, which may be recovered as taxable costs
2345+13 by the party to the suit or action causing such service to be
2346+14 made if he prevails in such suit or action.
2347+15 (5) (a) The costs incurred by the Department of Insurance
2348+16 in conducting any hearing authorized by law shall be assessed
2349+17 against the parties to the hearing in such proportion as the
2350+18 Director of Insurance may determine upon consideration of all
2351+19 relevant circumstances including: (1) the nature of the
2352+20 hearing; (2) whether the hearing was instigated by, or for the
2353+21 benefit of a particular party or parties; (3) whether there is
2354+22 a successful party on the merits of the proceeding; and (4) the
2355+23 relative levels of participation by the parties.
2356+24 (b) For purposes of this subsection (5) costs incurred
2357+25 shall mean the hearing officer fees, court reporter fees, and
2358+26 travel expenses of Department of Insurance officers and
2359+
2360+
2361+
2362+
2363+
2364+ SB1479 Enrolled - 66 - LRB103 05817 BMS 50837 b
2365+
2366+
2367+SB1479 Enrolled- 67 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 67 - LRB103 05817 BMS 50837 b
2368+ SB1479 Enrolled - 67 - LRB103 05817 BMS 50837 b
2369+1 employees; provided however, that costs incurred shall not
2370+2 include hearing officer fees or court reporter fees unless the
2371+3 Department has retained the services of independent
2372+4 contractors or outside experts to perform such functions.
2373+5 (c) The Director shall make the assessment of costs
2374+6 incurred as part of the final order or decision arising out of
2375+7 the proceeding; provided, however, that such order or decision
2376+8 shall include findings and conclusions in support of the
2377+9 assessment of costs. This subsection (5) shall not be
2378+10 construed as permitting the payment of travel expenses unless
2379+11 calculated in accordance with the applicable travel
2380+12 regulations of the Department of Central Management Services,
2381+13 as approved by the Governor's Travel Control Board. The
2382+14 Director as part of such order or decision shall require all
2383+15 assessments for hearing officer fees and court reporter fees,
2384+16 if any, to be paid directly to the hearing officer or court
2385+17 reporter by the party(s) assessed for such costs. The
2386+18 assessments for travel expenses of Department officers and
2387+19 employees shall be reimbursable to the Director of Insurance
2388+20 for deposit to the fund out of which those expenses had been
2389+21 paid.
2390+22 (d) The provisions of this subsection (5) shall apply in
2391+23 the case of any hearing conducted by the Director of Insurance
2392+24 not otherwise specifically provided for by law.
2393+25 (6) The Director shall charge and collect an annual
2394+26 financial regulation fee from every domestic company for
2395+
2396+
2397+
2398+
2399+
2400+ SB1479 Enrolled - 67 - LRB103 05817 BMS 50837 b
2401+
2402+
2403+SB1479 Enrolled- 68 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 68 - LRB103 05817 BMS 50837 b
2404+ SB1479 Enrolled - 68 - LRB103 05817 BMS 50837 b
2405+1 examination and analysis of its financial condition and to
2406+2 fund the internal costs and expenses of the Interstate
2407+3 Insurance Receivership Commission as may be allocated to the
2408+4 State of Illinois and companies doing an insurance business in
2409+5 this State pursuant to Article X of the Interstate Insurance
2410+6 Receivership Compact. The fee shall be the greater fixed
2411+7 amount based upon the combination of nationwide direct premium
2412+8 income and nationwide reinsurance assumed premium income or
2413+9 upon admitted assets calculated under this subsection as
2414+10 follows:
2415+11 (a) Combination of nationwide direct premium income
2416+12 and nationwide reinsurance assumed premium.
2417+13 (i) $150, if the premium is less than $500,000 and
2418+14 there is no reinsurance assumed premium;
2419+15 (ii) $750, if the premium is $500,000 or more, but
2420+16 less than $5,000,000 and there is no reinsurance
2421+17 assumed premium; or if the premium is less than
2422+18 $5,000,000 and the reinsurance assumed premium is less
2423+19 than $10,000,000;
2424+20 (iii) $3,750, if the premium is less than
2425+21 $5,000,000 and the reinsurance assumed premium is
2426+22 $10,000,000 or more;
2427+23 (iv) $7,500, if the premium is $5,000,000 or more,
2428+24 but less than $10,000,000;
2429+25 (v) $18,000, if the premium is $10,000,000 or
2430+26 more, but less than $25,000,000;
2431+
2432+
2433+
2434+
2435+
2436+ SB1479 Enrolled - 68 - LRB103 05817 BMS 50837 b
2437+
2438+
2439+SB1479 Enrolled- 69 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 69 - LRB103 05817 BMS 50837 b
2440+ SB1479 Enrolled - 69 - LRB103 05817 BMS 50837 b
2441+1 (vi) $22,500, if the premium is $25,000,000 or
2442+2 more, but less than $50,000,000;
2443+3 (vii) $30,000, if the premium is $50,000,000 or
2444+4 more, but less than $100,000,000;
2445+5 (viii) $37,500, if the premium is $100,000,000 or
2446+6 more.
2447+7 (b) Admitted assets.
2448+8 (i) $150, if admitted assets are less than
2449+9 $1,000,000;
2450+10 (ii) $750, if admitted assets are $1,000,000 or
2451+11 more, but less than $5,000,000;
2452+12 (iii) $3,750, if admitted assets are $5,000,000 or
2453+13 more, but less than $25,000,000;
2454+14 (iv) $7,500, if admitted assets are $25,000,000 or
2455+15 more, but less than $50,000,000;
2456+16 (v) $18,000, if admitted assets are $50,000,000 or
2457+17 more, but less than $100,000,000;
2458+18 (vi) $22,500, if admitted assets are $100,000,000
2459+19 or more, but less than $500,000,000;
2460+20 (vii) $30,000, if admitted assets are $500,000,000
2461+21 or more, but less than $1,000,000,000;
2462+22 (viii) $37,500, if admitted assets are
2463+23 $1,000,000,000 or more.
2464+24 (c) The sum of financial regulation fees charged to
2465+25 the domestic companies of the same affiliated group shall
2466+26 not exceed $250,000 in the aggregate in any single year
2467+
2468+
2469+
2470+
2471+
2472+ SB1479 Enrolled - 69 - LRB103 05817 BMS 50837 b
2473+
2474+
2475+SB1479 Enrolled- 70 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 70 - LRB103 05817 BMS 50837 b
2476+ SB1479 Enrolled - 70 - LRB103 05817 BMS 50837 b
2477+1 and shall be billed by the Director to the member company
2478+2 designated by the group.
2479+3 (7) The Director shall charge and collect an annual
2480+4 financial regulation fee from every foreign or alien company,
2481+5 except fraternal benefit societies, for the examination and
2482+6 analysis of its financial condition and to fund the internal
2483+7 costs and expenses of the Interstate Insurance Receivership
2484+8 Commission as may be allocated to the State of Illinois and
2485+9 companies doing an insurance business in this State pursuant
2486+10 to Article X of the Interstate Insurance Receivership Compact.
2487+11 The fee shall be a fixed amount based upon Illinois direct
2488+12 premium income and nationwide reinsurance assumed premium
2489+13 income in accordance with the following schedule:
2490+14 (a) $150, if the premium is less than $500,000 and
2491+15 there is no reinsurance assumed premium;
2492+16 (b) $750, if the premium is $500,000 or more, but less
2493+17 than $5,000,000 and there is no reinsurance assumed
2494+18 premium; or if the premium is less than $5,000,000 and the
2495+19 reinsurance assumed premium is less than $10,000,000;
2496+20 (c) $3,750, if the premium is less than $5,000,000 and
2497+21 the reinsurance assumed premium is $10,000,000 or more;
2498+22 (d) $7,500, if the premium is $5,000,000 or more, but
2499+23 less than $10,000,000;
2500+24 (e) $18,000, if the premium is $10,000,000 or more,
2501+25 but less than $25,000,000;
2502+26 (f) $22,500, if the premium is $25,000,000 or more,
2503+
2504+
2505+
2506+
2507+
2508+ SB1479 Enrolled - 70 - LRB103 05817 BMS 50837 b
2509+
2510+
2511+SB1479 Enrolled- 71 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 71 - LRB103 05817 BMS 50837 b
2512+ SB1479 Enrolled - 71 - LRB103 05817 BMS 50837 b
2513+1 but less than $50,000,000;
2514+2 (g) $30,000, if the premium is $50,000,000 or more,
2515+3 but less than $100,000,000;
2516+4 (h) $37,500, if the premium is $100,000,000 or more.
2517+5 The sum of financial regulation fees under this subsection
2518+6 (7) charged to the foreign or alien companies within the same
2519+7 affiliated group shall not exceed $250,000 in the aggregate in
2520+8 any single year and shall be billed by the Director to the
2521+9 member company designated by the group.
2522+10 (8) Beginning January 1, 1992, the financial regulation
2523+11 fees imposed under subsections (6) and (7) of this Section
2524+12 shall be paid by each company or domestic affiliated group
2525+13 annually. After January 1, 1994, the fee shall be billed by
2526+14 Department invoice based upon the company's premium income or
2527+15 admitted assets as shown in its annual statement for the
2528+16 preceding calendar year. The invoice is due upon receipt and
2529+17 must be paid no later than June 30 of each calendar year. All
2530+18 financial regulation fees collected by the Department shall be
2531+19 paid to the Insurance Financial Regulation Fund. The
2532+20 Department may not collect financial examiner per diem charges
2533+21 from companies subject to subsections (6) and (7) of this
2534+22 Section undergoing financial examination after June 30, 1992.
2535+23 (9) In addition to the financial regulation fee required
2536+24 by this Section, a company undergoing any financial
2537+25 examination authorized by law shall pay the following costs
2538+26 and expenses incurred by the Department: electronic data
2539+
2540+
2541+
2542+
2543+
2544+ SB1479 Enrolled - 71 - LRB103 05817 BMS 50837 b
2545+
2546+
2547+SB1479 Enrolled- 72 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 72 - LRB103 05817 BMS 50837 b
2548+ SB1479 Enrolled - 72 - LRB103 05817 BMS 50837 b
2549+1 processing costs, the expenses authorized under Section 131.21
2550+2 and subsection (d) of Section 132.4 of this Code, and lodging
2551+3 and travel expenses.
2552+4 Electronic data processing costs incurred by the
2553+5 Department in the performance of any examination shall be
2554+6 billed directly to the company undergoing examination for
2555+7 payment to the Technology Management Revolving Fund. Except
2556+8 for direct reimbursements authorized by the Director or direct
2557+9 payments made under Section 131.21 or subsection (d) of
2558+10 Section 132.4 of this Code, all financial regulation fees and
2559+11 all financial examination charges collected by the Department
2560+12 shall be paid to the Insurance Financial Regulation Fund.
2561+13 All lodging and travel expenses shall be in accordance
2562+14 with applicable travel regulations published by the Department
2563+15 of Central Management Services and approved by the Governor's
2564+16 Travel Control Board, except that out-of-state lodging and
2565+17 travel expenses related to examinations authorized under
2566+18 Sections 132.1 through 132.7 shall be in accordance with
2567+19 travel rates prescribed under paragraph 301-7.2 of the Federal
2568+20 Travel Regulations, 41 C.F.R. 301-7.2, for reimbursement of
2569+21 subsistence expenses incurred during official travel. All
2570+22 lodging and travel expenses may be reimbursed directly upon
2571+23 the authorization of the Director.
2572+24 In the case of an organization or person not subject to the
2573+25 financial regulation fee, the expenses incurred in any
2574+26 financial examination authorized by law shall be paid by the
2575+
2576+
2577+
2578+
2579+
2580+ SB1479 Enrolled - 72 - LRB103 05817 BMS 50837 b
2581+
2582+
2583+SB1479 Enrolled- 73 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 73 - LRB103 05817 BMS 50837 b
2584+ SB1479 Enrolled - 73 - LRB103 05817 BMS 50837 b
2585+1 organization or person being examined. The charge shall be
2586+2 reasonably related to the cost of the examination including,
2587+3 but not limited to, compensation of examiners and other costs
2588+4 described in this subsection.
2589+5 (10) Any company, person, or entity failing to make any
2590+6 payment of $150 or more as required under this Section shall be
2591+7 subject to the penalty and interest provisions provided for in
2592+8 subsections (4) and (7) of Section 412.
2593+9 (11) Unless otherwise specified, all of the fees collected
2594+10 under this Section shall be paid into the Insurance Financial
2595+11 Regulation Fund.
2596+12 (12) For purposes of this Section:
2597+13 (a) "Domestic company" means a company as defined in
2598+14 Section 2 of this Code which is incorporated or organized
2599+15 under the laws of this State, and in addition includes a
2600+16 not-for-profit corporation authorized under the Dental
2601+17 Service Plan Act or the Voluntary Health Services Plans
2602+18 Act, a health maintenance organization, and a limited
2603+19 health service organization.
2604+20 (b) "Foreign company" means a company as defined in
2605+21 Section 2 of this Code which is incorporated or organized
2606+22 under the laws of any state of the United States other than
2607+23 this State and in addition includes a health maintenance
2608+24 organization and a limited health service organization
2609+25 which is incorporated or organized under the laws of any
2610+26 state of the United States other than this State.
2611+
2612+
2613+
2614+
2615+
2616+ SB1479 Enrolled - 73 - LRB103 05817 BMS 50837 b
2617+
2618+
2619+SB1479 Enrolled- 74 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 74 - LRB103 05817 BMS 50837 b
2620+ SB1479 Enrolled - 74 - LRB103 05817 BMS 50837 b
2621+1 (c) "Alien company" means a company as defined in
2622+2 Section 2 of this Code which is incorporated or organized
2623+3 under the laws of any country other than the United
2624+4 States.
2625+5 (d) "Fraternal benefit society" means a corporation,
2626+6 society, order, lodge or voluntary association as defined
2627+7 in Section 282.1 of this Code.
2628+8 (e) "Mutual benefit association" means a company,
2629+9 association or corporation authorized by the Director to
2630+10 do business in this State under the provisions of Article
2631+11 XVIII of this Code.
2632+12 (f) "Burial society" means a person, firm,
2633+13 corporation, society or association of individuals
2634+14 authorized by the Director to do business in this State
2635+15 under the provisions of Article XIX of this Code.
2636+16 (g) "Farm mutual" means a district, county and
2637+17 township mutual insurance company authorized by the
2638+18 Director to do business in this State under the provisions
2639+19 of the Farm Mutual Insurance Company Act of 1986.
2640+20 (Source: P.A. 102-775, eff. 5-13-22; 103-75, eff. 1-1-25.)
2641+21 (215 ILCS 5/511.109) (from Ch. 73, par. 1065.58-109)
2642+22 (Section scheduled to be repealed on January 1, 2027)
2643+23 Sec. 511.109. Examination.
2644+24 (a) The Director or the Director's his designee may
2645+25 examine any applicant for or holder of an administrator's
2646+
2647+
2648+
2649+
2650+
2651+ SB1479 Enrolled - 74 - LRB103 05817 BMS 50837 b
2652+
2653+
2654+SB1479 Enrolled- 75 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 75 - LRB103 05817 BMS 50837 b
2655+ SB1479 Enrolled - 75 - LRB103 05817 BMS 50837 b
2656+1 license in accordance with Sections 132 through 132.7. If the
2657+2 Director or the examiners find that the administrator has
2658+3 violated this Article or any other insurance-related laws,
2659+4 rules, or regulations under the Director's jurisdiction
2660+5 because of the manner in which the administrator has conducted
2661+6 business on behalf of an insurer or plan sponsor, then, unless
2662+7 the insurer or plan sponsor is included in the examination and
2663+8 has been afforded the same opportunity to request or
2664+9 participate in a hearing on the examination report, the
2665+10 examination report shall not allege a violation by the insurer
2666+11 or plan sponsor and the Director's order based on the report
2667+12 shall not impose any requirements, prohibitions, or penalties
2668+13 on the insurer or plan sponsor. Nothing in this Section shall
2669+14 prevent the Director from using any information obtained
2670+15 during the examination of an administrator to examine,
2671+16 investigate, or take other appropriate regulatory or legal
2672+17 action with respect to an insurer or plan sponsor.
2673+18 (b) Any administrator being examined shall provide to the
2674+19 Director or his designee convenient and free access, at all
2675+20 reasonable hours at their offices, to all books, records,
2676+21 documents and other papers relating to such administrator's
2677+22 business affairs.
2678+23 (c) The Director or his designee may administer oaths and
2679+24 thereafter examine any individual about the business of the
2680+25 administrator.
2681+26 (d) The examiners designated by the Director pursuant to
2682+
2683+
2684+
2685+
2686+
2687+ SB1479 Enrolled - 75 - LRB103 05817 BMS 50837 b
2688+
2689+
2690+SB1479 Enrolled- 76 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 76 - LRB103 05817 BMS 50837 b
2691+ SB1479 Enrolled - 76 - LRB103 05817 BMS 50837 b
2692+1 this Section may make reports to the Director. Any report
2693+2 alleging substantive violations of this Article, any
2694+3 applicable provisions of the Illinois Insurance Code, or any
2695+4 applicable Part of Title 50 of the Illinois Administrative
2696+5 Code shall be in writing and be based upon facts obtained by
2697+6 the examiners. The report shall be verified by the examiners.
2698+7 (e) If a report is made, the Director shall either deliver
2699+8 a duplicate thereof to the administrator being examined or
2700+9 send such duplicate by certified or registered mail to the
2701+10 administrator's address specified in the records of the
2702+11 Department. The Director shall afford the administrator an
2703+12 opportunity to request a hearing to object to the report. The
2704+13 administrator may request a hearing within 30 days after
2705+14 receipt of the duplicate of the examination report by giving
2706+15 the Director written notice of such request together with
2707+16 written objections to the report. Any hearing shall be
2708+17 conducted in accordance with Sections 402 and 403 of this
2709+18 Code. The right to hearing is waived if the delivery of the
2710+19 report is refused or the report is otherwise undeliverable or
2711+20 the administrator does not timely request a hearing. After the
2712+21 hearing or upon expiration of the time period during which an
2713+22 administrator may request a hearing, if the examination
2714+23 reveals that the administrator is operating in violation of
2715+24 any applicable provision of the Illinois Insurance Code, any
2716+25 applicable Part of Title 50 of the Illinois Administrative
2717+26 Code or prior order, the Director, in the written order, may
2718+
2719+
2720+
2721+
2722+
2723+ SB1479 Enrolled - 76 - LRB103 05817 BMS 50837 b
2724+
2725+
2726+SB1479 Enrolled- 77 -LRB103 05817 BMS 50837 b SB1479 Enrolled - 77 - LRB103 05817 BMS 50837 b
2727+ SB1479 Enrolled - 77 - LRB103 05817 BMS 50837 b
2728+1 require the administrator to take any action the Director
2729+2 considers necessary or appropriate in accordance with the
2730+3 report or examination hearing. If the Director issues an
2731+4 order, it shall be issued within 90 days after the report is
2732+5 filed, or if there is a hearing, within 90 days after the
2733+6 conclusion of the hearing. The order is subject to review
2734+7 under the Administrative Review Law.
2735+8 (Source: P.A. 84-887.)
2736+9 (215 ILCS 5/512-3) (from Ch. 73, par. 1065.59-3)
2737+10 Sec. 512-3. Definitions. For the purposes of this Article,
2738+11 unless the context otherwise requires, the terms defined in
2739+12 this Article have the meanings ascribed to them herein:
2740+13 "Health care payer" means an insurance company, health
2741+14 maintenance organization, limited health service organization,
2742+15 health services plan corporation, or dental service plan
2743+16 corporation authorized to do business in this State.
2744+17 (a) "Third party prescription program" or "program" means
2745+18 any system of providing for the reimbursement of
2746+19 pharmaceutical services and prescription drug products offered
2747+20 or operated in this State under a contractual arrangement or
2748+21 agreement between a provider of such services and another
2749+22 party who is not the consumer of those services and products.
2750+23 Such programs may include, but need not be limited to,
2751+24 employee benefit plans whereby a consumer receives
2752+25 prescription drugs or other pharmaceutical services and those
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2762+ SB1479 Enrolled - 78 - LRB103 05817 BMS 50837 b
2763+1 services are paid for by an agent of the employer or others.
2764+2 (b) "Third party program administrator" or "administrator"
2765+3 means any person, partnership or corporation who issues or
2766+4 causes to be issued any payment or reimbursement to a provider
2767+5 for services rendered pursuant to a third party prescription
2768+6 program, but does not include the Director of Healthcare and
2769+7 Family Services or any agent authorized by the Director to
2770+8 reimburse a provider of services rendered pursuant to a
2771+9 program of which the Department of Healthcare and Family
2772+10 Services is the third party.
2773+11 (Source: P.A. 95-331, eff. 8-21-07.)
2774+12 (215 ILCS 5/512-5) (from Ch. 73, par. 1065.59-5)
2775+13 Sec. 512-5. Fiduciary and Bonding Requirements. A third
2776+14 party prescription program administrator shall (1) establish
2777+15 and maintain a fiduciary account, separate and apart from any
2778+16 and all other accounts, for the receipt and disbursement of
2779+17 funds for reimbursement of providers of services under the
2780+18 program, or (2) post, or cause to be posted, a bond of
2781+19 indemnity in an amount equal to not less than 10% of the total
2782+20 estimated annual reimbursements under the program.
2783+21 The establishment of such fiduciary accounts and bonds
2784+22 shall be consistent with applicable State law. If a bond of
2785+23 indemnity is posted, it shall be held by the Director of
2786+24 Insurance for the benefit and indemnification of the providers
2787+25 of services under the third party prescription program.
2788+
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2797+ SB1479 Enrolled - 79 - LRB103 05817 BMS 50837 b
2798+1 An administrator who operates more than one third party
2799+2 prescription program may establish and maintain a separate
2800+3 fiduciary account or bond of indemnity for each such program,
2801+4 or may operate and maintain a consolidated fiduciary account
2802+5 or bond of indemnity for all such programs.
2803+6 The requirements of this Section do not apply to any third
2804+7 party prescription program administered by or on behalf of any
2805+8 health care payer insurance company, Health Care Service Plan
2806+9 Corporation or Pharmaceutical Service Plan Corporation
2807+10 authorized to do business in the State of Illinois.
2808+11 (Source: P.A. 82-1005.)
2809+12 (215 ILCS 5/512-11 new)
2810+13 Sec. 512-11. Examination. The Director or the Director's
2811+14 designee may examine any applicant for or holder of an
2812+15 administrator's registration in accordance with Sections 132
2813+16 through 132.7 of this Code. If the Director or the examiners
2814+17 find that the administrator has violated this Article or any
2815+18 other insurance-related laws or regulations under the
2816+19 Director's jurisdiction because of the manner in which the
2817+20 administrator has conducted business on behalf of a separately
2818+21 incorporated health care payer, then, unless the health care
2819+22 payer is included in the examination and has been afforded the
2820+23 same opportunity to request or participate in a hearing on the
2821+24 examination report, the examination report shall not allege a
2822+25 violation by the health care payer and the Director's order
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2833+1 based on the report shall not impose any requirements,
2834+2 prohibitions, or penalties on the health care payer. Nothing
2835+3 in this Section shall prevent the Director from using any
2836+4 information obtained during the examination of an
2837+5 administrator to examine, investigate, or take other
2838+6 appropriate regulatory or legal action with respect to a
2839+7 health care payer.
2840+8 (215 ILCS 5/513b3)
2841+9 Sec. 513b3. Examination. (a) The Director, or his or her
2842+10 designee, may examine a registered pharmacy benefit manager in
2843+11 accordance with Sections 132-132.7. If the Director or the
2844+12 examiners find that the pharmacy benefit manager has violated
2845+13 this Article or any other insurance-related laws, rules, or
2846+14 regulations under the Director's jurisdiction because of the
2847+15 manner in which the pharmacy benefit manager has conducted
2848+16 business on behalf of a health insurer or plan sponsor, then,
2849+17 unless the health insurer or plan sponsor is included in the
2850+18 examination and has been afforded the same opportunity to
2851+19 request or participate in a hearing on the examination report,
2852+20 the examination report shall not allege a violation by the
2853+21 health insurer or plan sponsor and the Director's order based
2854+22 on the report shall not impose any requirements, prohibitions,
2855+23 or penalties on the health insurer or plan sponsor. Nothing in
2856+24 this Section shall prevent the Director from using any
2857+25 information obtained during the examination of an
2858+
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2868+1 administrator to examine, investigate, or take other
2869+2 appropriate regulatory or legal action with respect to a
2870+3 health insurer or plan sponsor.
2871+4 (b) Any pharmacy benefit manager being examined shall
2872+5 provide to the Director, or his or her designee, convenient
2873+6 and free access to all books, records, documents, and other
2874+7 papers relating to such pharmacy benefit manager's business
2875+8 affairs at all reasonable hours at its offices.
2876+9 (c) The Director, or his or her designee, may administer
2877+10 oaths and thereafter examine the pharmacy benefit manager's
2878+11 designee, representative, or any officer or senior manager as
2879+12 listed on the license or registration certificate about the
2880+13 business of the pharmacy benefit manager.
2881+14 (d) The examiners designated by the Director under this
2882+15 Section may make reports to the Director. Any report alleging
2883+16 substantive violations of this Article, any applicable
2884+17 provisions of this Code, or any applicable Part of Title 50 of
2885+18 the Illinois Administrative Code shall be in writing and be
2886+19 based upon facts obtained by the examiners. The report shall
2887+20 be verified by the examiners.
2888+21 (e) If a report is made, the Director shall either deliver
2889+22 a duplicate report to the pharmacy benefit manager being
2890+23 examined or send such duplicate by certified or registered
2891+24 mail to the pharmacy benefit manager's address specified in
2892+25 the records of the Department. The Director shall afford the
2893+26 pharmacy benefit manager an opportunity to request a hearing
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2904+1 to object to the report. The pharmacy benefit manager may
2905+2 request a hearing within 30 days after receipt of the
2906+3 duplicate report by giving the Director written notice of such
2907+4 request together with written objections to the report. Any
2908+5 hearing shall be conducted in accordance with Sections 402 and
2909+6 403 of this Code. The right to a hearing is waived if the
2910+7 delivery of the report is refused or the report is otherwise
2911+8 undeliverable or the pharmacy benefit manager does not timely
2912+9 request a hearing. After the hearing or upon expiration of the
2913+10 time period during which a pharmacy benefit manager may
2914+11 request a hearing, if the examination reveals that the
2915+12 pharmacy benefit manager is operating in violation of any
2916+13 applicable provision of this Code, any applicable Part of
2917+14 Title 50 of the Illinois Administrative Code, a provision of
2918+15 this Article, or prior order, the Director, in the written
2919+16 order, may require the pharmacy benefit manager to take any
2920+17 action the Director considers necessary or appropriate in
2921+18 accordance with the report or examination hearing. If the
2922+19 Director issues an order, it shall be issued within 90 days
2923+20 after the report is filed, or if there is a hearing, within 90
2924+21 days after the conclusion of the hearing. The order is subject
2925+22 to review under the Administrative Review Law.
2926+23 (Source: P.A. 101-452, eff. 1-1-20.)
2927+24 Section 95. No acceleration or delay. Where this Act makes
2928+25 changes in a statute that is represented in this Act by text
2929+
2930+
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2939+1 that is not yet or no longer in effect (for example, a Section
2940+2 represented by multiple versions), the use of that text does
2941+3 not accelerate or delay the taking effect of (i) the changes
2942+4 made by this Act or (ii) provisions derived from any other
2943+5 Public Act.
2944+
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