Bill Text: IL HB2785 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Removes provisions that specify what information property and casualty insurers must report to the Department of Insurance, except that property and casualty insurers must still report their direct writings in this State and companywide. Changes provisions requiring advisory groups on workers compensation to report their annual findings to the Director of Insurance (previously the Secretary of Financial and Professional Regulation). Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-02-20 - Referred to Rules Committee [HB2785 Detail]

Download: Illinois-2015-HB2785-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB2785 Introduced , by Rep. David Reis SYNOPSIS AS INTRODUCED:
215 ILCS 5/1204 from Ch. 73, par. 1065.904
Amends the Illinois Insurance Code. Removes provisions that specify what information property and casualty insurers must report to the Department of Insurance, except that property and casualty insurers must still report their direct writings in this State and companywide. Changes provisions requiring advisory groups on workers compensation to report their annual findings to the Director of Insurance (previously the Secretary of Financial and Professional Regulation). Makes other changes. Effective immediately.
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A BILL FOR
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AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 1204 as follows:
(215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
(Text of Section WITHOUT the changes made by P.A. 94-677,
which has been held unconstitutional)
Sec. 1204. (A) The Director shall promulgate rules and
regulations which shall require each insurer licensed to write
property or casualty insurance in the State and each syndicate
doing business on the Illinois Insurance Exchange to record and
report its loss and expense experience and other data as may be
necessary to assess the relationship of insurance premiums and
related income as compared to insurance costs and expenses. The
Director may designate one or more rate service organizations
or advisory organizations to gather and compile such experience
and data. The Director shall require each insurer licensed to
write property or casualty insurance in this State and each
syndicate doing business on the Illinois Insurance Exchange to
submit a report, on a form furnished by the Director, showing
its direct writings in this State and companywide.
(B) Such report required by subsection (A) of this Section

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may include, but not be limited to, the following specific
types of insurance written by such insurer:
(1) Political subdivision liability insurance reported
separately in the following categories:
(a) municipalities;
(b) school districts;
(c) other political subdivisions;
(2) Public official liability insurance;
(3) Dram shop liability insurance;
(4) Day care center liability insurance;
(5) Labor, fraternal or religious organizations
liability insurance;
(6) Errors and omissions liability insurance;
(7) Officers and directors liability insurance
reported separately as follows:
(a) non-profit entities;
(b) for-profit entities;
(8) Products liability insurance;
(9) Medical malpractice insurance;
(10) Attorney malpractice insurance;
(11) Architects and engineers malpractice insurance;
and
(12) Motor vehicle insurance reported separately for
commercial and private passenger vehicles as follows:
(a) motor vehicle physical damage insurance;
(b) motor vehicle liability insurance.

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(C) Such report may include, but need not be limited to the
following data, both specific to this State and companywide, in
the aggregate or by type of insurance for the previous year on
a calendar year basis:
(1) Direct premiums written;
(2) Direct premiums earned;
(3) Number of policies;
(4) Net investment income, using appropriate estimates
where necessary;
(5) Losses paid;
(6) Losses incurred;
(7) Loss reserves:
(a) Losses unpaid on reported claims;
(b) Losses unpaid on incurred but not reported
claims;
(8) Number of claims:
(a) Paid claims;
(b) Arising claims;
(9) Loss adjustment expenses:
(a) Allocated loss adjustment expenses;
(b) Unallocated loss adjustment expenses;
(10) Net underwriting gain or loss;
(11) Net operation gain or loss, including net
investment income;
(12) Any other information requested by the Director.
(B) (C-3) Additional information by an advisory

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organization as defined in Section 463 of this Code, for
workers' compensation insurance.
(1) An advisory organization as defined in Section 463
of this Code shall report annually the following
information in such format as may be prescribed by the
Director of Insurance Secretary:
(a) paid and incurred losses for each of the past
10 years;
(b) medical payments and medical charges, if
collected, for each of the past 10 years;
(c) the following indemnity payment information:
cumulative payments by accident year by calendar year
of development. This array will show payments made and
frequency of claims in the following categories:
medical only, permanent partial disability (PPD),
permanent total disability (PTD), temporary total
disability (TTD), and fatalities;
(d) injuries by frequency and severity;
(e) by class of employee.
(2) The report filed with the Director of Insurance
Secretary of Financial and Professional Regulation under
paragraph (1) of this subsection (B) (C-3) shall be made
available, on an aggregate basis, to the General Assembly
and to the general public. The identity of the petitioner,
the respondent, the attorneys, and the insurers shall not
be disclosed.

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(3) Reports required under this subsection (B) (C-3)
shall be filed with the Director Secretary no later than
September 1 in 2006 and no later than September 1 of each
year after the effective date of this amendatory Act of the
99th General Assembly thereafter.
(D) In addition to the information which may be requested
under subsection (C), the Director may also request on a
companywide, aggregate basis, Federal Income Tax recoverable,
net realized capital gain or loss, net unrealized capital gain
or loss, and all other expenses not requested in subsection (C)
above.
(C) (E) Violations - Suspensions - Revocations.
(1) Any company or person subject to this Article, who
willfully or repeatedly fails to observe or who otherwise
violates any of the provisions of this Article or any rule
or regulation promulgated by the Director under authority
of this Article or any final order of the Director entered
under the authority of this Article shall by civil penalty
forfeit to the State of Illinois a sum not to exceed
$2,000. Each day during which a violation occurs
constitutes a separate offense.
(2) No forfeiture liability under paragraph (1) of this
subsection may attach unless a written notice of apparent
liability has been issued by the Director and received by
the respondent, or the Director sends written notice of
apparent liability by registered or certified mail, return

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receipt requested, to the last known address of the
respondent. Any respondent so notified must be granted an
opportunity to request a hearing within 10 days from
receipt of notice, or to show in writing, why he should not
be held liable. A notice issued under this Section must set
forth the date, facts and nature of the act or omission
with which the respondent is charged and must specifically
identify the particular provision of this Article, rule,
regulation or order of which a violation is charged.
(3) No forfeiture liability under paragraph (1) of this
subsection may attach for any violation occurring more than
2 years prior to the date of issuance of the notice of
apparent liability and in no event may the total civil
penalty forfeiture imposed for the acts or omissions set
forth in any one notice of apparent liability exceed
$100,000.
(4) All administrative hearings conducted pursuant to
this Article are subject to 50 Ill. Adm. Code 2402 and all
administrative hearings are subject to the Administrative
Review Law.
(5) The civil penalty forfeitures provided for in this
Section are payable to the General Revenue Fund of the
State of Illinois, and may be recovered in a civil suit in
the name of the State of Illinois brought in the Circuit
Court in Sangamon County or in the Circuit Court of the
county where the respondent is domiciled or has its

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principal operating office.
(6) In any case where the Director issues a notice of
apparent liability looking toward the imposition of a civil
penalty forfeiture under this Section that fact may not be
used in any other proceeding before the Director to the
prejudice of the respondent to whom the notice was issued,
unless (a) the civil penalty forfeiture has been paid, or
(b) a court has ordered payment of the civil penalty
forfeiture and that order has become final.
(7) When any person or company has a license or
certificate of authority under this Code and knowingly
fails or refuses to comply with a lawful order of the
Director requiring compliance with this Article, entered
after notice and hearing, within the period of time
specified in the order, the Director may, in addition to
any other penalty or authority provided, revoke or refuse
to renew the license or certificate of authority of such
person or company, or may suspend the license or
certificate of authority of such person or company until
compliance with such order has been obtained.
(8) When any person or company has a license or
certificate of authority under this Code and knowingly
fails or refuses to comply with any provisions of this
Article, the Director may, after notice and hearing, in
addition to any other penalty provided, revoke or refuse to
renew the license or certificate of authority of such

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person or company, or may suspend the license or
certificate of authority of such person or company, until
compliance with such provision of this Article has been
obtained.
(9) No suspension or revocation under this Section may
become effective until 5 days from the date that the notice
of suspension or revocation has been personally delivered
or delivered by registered or certified mail to the company
or person. A suspension or revocation under this Section is
stayed upon the filing, by the company or person, of a
petition for judicial review under the Administrative
Review Law.
(Source: P.A. 94-277, eff. 7-20-05; 95-331, eff. 8-21-07.)
Section 99. Effective date. This Act takes effect upon
becoming law.