Bill Amendment: IL SB1723 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: INSURANCE INDUSTRY INNOVATION

Status: 2019-01-09 - Session Sine Die [SB1723 Detail]

Download: Illinois-2017-SB1723-Senate_Amendment_002.html

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Sen. Antonio Muñoz

Filed: 3/15/2017

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AMENDMENT TO SENATE BILL 1723
AMENDMENT NO. ______. Amend Senate Bill 1723 by replacing
everything after the enacting clause with the following:
"Section 1. Short title. This Act may be cited as the
Insurance Industry Innovation Act.
Section 5. Definitions. In this Act:
"Covered person" includes an individual, company,
association, organization, partnership, business trust,
corporation, and every form of legal entity that offers or
intends to offer an insurance innovation by submitting a
petition to the Department of Insurance.
"Department" means the Department of Insurance.
"Deputy Director" means the Deputy Director of the
Innovation Division of the Department of Insurance.
"Director" means the Director of Insurance.
"Enforceable compliance agreement" means a contractual

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agreement described in subsection (a) of Section 25.
"Insurance innovation" means an innovative service or
product that is or may be subject to regulation by the
Department of Insurance.
"Innovation Division" means the Innovation Division in the
Department of Insurance.
Section 10. Innovation Division.
(a) Subject to appropriation, the Department shall
establish an Innovation Division to promote insurance product
innovations and to assist a covered person whose petition has
been approved under Section 20.
(b) The Director shall appoint an individual to serve as
the Deputy Director of the Innovation Division.
(c) The duties of the Deputy Director shall include:
(1) supporting the Department in the development of
insurance innovations; and
(2) establishing procedures to reduce the time and cost
of offering an insurance innovation to the public and
enable greater access to insurance innovations.
(d) With respect to a covered person whose petition has
been approved under Section 20, the Insurance Division shall:
(1) work with the covered person to address issues of
how existing regulatory frameworks apply to the insurance
innovation that is the subject of the petition; and
(2) assist the covered person in complying with the

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requirements of State statutes and rules adopted by the
Department that apply to the insurance innovation.
Section 15. Petition to the Department.
(a) A covered person may submit a petition to the
Department, through the Innovation Division, in such form and
in such manner as the Innovation Division may require, to
request to enter into an enforceable compliance agreement
pursuant to Section 25 with the Department with respect to an
insurance innovation the covered person offers or intends to
offer.
(b) A petition submitted under this Section, shall
demonstrate that the insurance innovation:
(1) would serve the public interest;
(2) improves access to insurance products or services;
and
(3) does not present systemic risk to the State and
promotes consumer protection.
(c) One or more covered persons that offers or intends to
offer similar insurance innovations may jointly submit a
petition under this Section.
(d) The Department shall maintain the confidentiality of
any nonpublicly available data or information in any petition
submitted under this Section. The Department shall give
reasonable consideration to maintaining the confidentiality of
data or information identified by the covered person in the

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petition submitting under this Section as nonpublicly
available data or information.
Section 20. Department determination of petition.
(a) No later than 60 days after receipt of a petition under
Section 15, the Director shall complete a review of the
petition and notify the covered person, in writing, of the
Department's determination of the petition.
(b) If the covered person submitting the petition meets the
requirements of Section 15, the Department shall:
(1) approve the petition; and
(2) enter into an enforceable compliance agreement
with the covered person in accordance with the requirements
of Section 25.
(c) If the Department rejects a petition, the Director
shall provide the covered person with a written notice
explaining the reason for rejecting the petition, including:
(1) an identification of the rules of the Department or
State statutes applicable to the covered person with
respect to the insurance innovation; and
(2) a description of:
(A) any beneficial effects, including an
identification of persons likely to benefit, from
rejecting the petition;
(B) any potential costs, including an
identification of persons likely to bear the costs, of

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rejecting the petition; and
(C) the baseline used by the Department to measure
the likely economic consequences of rejecting the
petition.
(d) No later than 90 days after receiving a notice of
disapproval, a covered person may revise and resubmit a
petition to the agency under Section 15.
Section 25. Enforceable compliance agreement.
(a) If the Department approves a petition under Section 20,
the covered person may enter into an enforceable compliance
agreement with the Department, which shall include the terms
under which the covered person may develop or offer the
approved insurance innovation to the public and any
requirements of the covered person and the Department with
respect to the insurance innovation.
(b) The Department, by rule, may establish requirements
relating to enforceable compliance agreements that include,
but are not limited to:
(1) procedures for modifying the terms of the
agreement;
(2) consequences for failure to comply with the terms
of the agreement;
(3) a compliance examination process that solicits
feedback from other agencies on the agreement and occurs
not less frequently than annually;

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(4) a termination date for the agreement;
(5) procedures for extending the termination date;
(6) procedures for judicial review; and
(7) procedures for maintaining the confidentiality of
any information disclosed to the Department in making the
agreement.
(c) This Act is controlling to the extent of any conflict
of statutory provisions of laws now in force or hereafter
enacted.
Section 30. Report to the General Assembly. No later than
one year after the effective date of this Act, and annually
thereafter, the Department shall submit to the General Assembly
a report on the aggregate impact of enforceable compliance
agreements entered into under this Act, which shall include:
(1) the number and characteristics of the agreements;
(2) the most innovative and least burdensome tools that
the Innovation Division has implemented for achieving
regulatory ends;
(3) the existing State laws, rules, or practices that
the Department identifies as the most burdensome to
innovation in developing or providing insurance products
and services, that adversely affect competition in the
insurance industry, or that restrict improvements for
consumers of insurance products or services; and
(4) an identification of the overlap or fragmentation

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of regulation of insurance products or services and
recommendations for reducing, consolidating, or
eliminating such overlap or fragmentation.
Section 35. Funding. The Department, by rule, may establish
the cost of each application for petition.
Section 99. Effective date. This Act takes effect January
1, 2018.".