Bill Text: IL HB4728 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Provides that, with respect to long-term care insurance coverage, no policy or certificate, or modification thereof, shall be issued or delivered to any person in this State until the classification of risks and the premium rates pertaining thereto have been approved by the Director of Insurance and that any subsequent addition to or change in premium rates shall also be subject to the Director's approval. Sets forth provisions concerning the standards for approval, determinations by the Director, and public hearings. Provides that, with respect to long-term care insurance, a filing of premium rates shall not be considered complete unless it contains all information necessary to justify the premium rate and such other information as the Director may require to determine the rate's compliance with the provision concerning long-term care insurance rates and prior approval. Sets forth additional requirements for rate filings. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB4728 Detail]

Download: Illinois-2013-HB4728-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB4728 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED:
215 ILCS 5/351A-11.1 new
215 ILCS 5/355 from Ch. 73, par. 967
Amends the Illinois Insurance Code. Provides that, with respect to long-term care insurance coverage, no policy or certificate, or modification thereof, shall be issued or delivered to any person in this State until the classification of risks and the premium rates pertaining thereto have been approved by the Director of Insurance and that any subsequent addition to or change in premium rates shall also be subject to the Director's approval. Sets forth provisions concerning the standards for approval, determinations by the Director, and public hearings. Provides that, with respect to long-term care insurance, a filing of premium rates shall not be considered complete unless it contains all information necessary to justify the premium rate and such other information as the Director may require to determine the rate's compliance with the provision concerning long-term care insurance rates and prior approval. Sets forth additional requirements for rate filings. Effective immediately.
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A BILL FOR
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AN ACT concerning regulation.
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 355 and by adding Section 351A-11.1 as
follows:
(215 ILCS 5/351A-11.1 new)
Sec. 351A-11.1. Long-term care insurance rates; prior
approval.
(a) With respect to long-term care insurance coverage, no
policy or certificate, or modification thereof, shall be issued
or delivered to any person in this State until the
classification of risks and the premium rates pertaining
thereto have been approved by the Director under this Section.
Any subsequent addition to or change in premium rates shall
also be subject to the Director's approval under this Section.
(b) The Director shall disapprove a premium rate under this
Section if:
(1) the benefits provided are not reasonable in
relation to the premium charged;
(2) the proposed premium rate is excessive,
unjustified, or unfairly discriminatory; or
(3) for a given policy form, the premium rate

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applicable to any particular policy issued on that policy
form is increased by an amount exceeding an annual rate cap
of 15%.
The company proposing the rate has the burden of proving by
clear and convincing evidence that the rate does not violate
this Section.
(c) The Director may request actuarial reasons and data, as
well as other information, needed to determine if a
previously-approved rate continues to satisfy the requirements
of this Section. The Director may withdraw approval of any rate
that has previously been approved on any of the grounds set
forth in subsection (b) of this Section.
(d) The Director, at his or her discretion, may conduct a
public hearing on any proposed change in premium rates
referenced in subsection (a) of this Section.
(215 ILCS 5/355) (from Ch. 73, par. 967)
Sec. 355. Accident and health policies-Provisions.)
(a) No policy of insurance against loss or damage from the
sickness, or from the bodily injury or death of the insured by
accident shall be issued or delivered to any person in this
State until a copy of the form thereof and of the
classification of risks and the premium rates pertaining
thereto have been filed with the Director; nor shall it be so
issued or delivered until the Director shall have approved such
policy pursuant to the provisions of Section 143. If the

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Director disapproves the policy form he shall make a written
decision stating the respects in which such form does not
comply with the requirements of law and shall deliver a copy
thereof to the company and it shall be unlawful thereafter for
any such company to issue any policy in such form.
(b) With respect to long-term care insurance, a filing of
premium rates pursuant to subsection (a) of this Section shall
not be considered complete unless it contains all information
necessary to justify the premium rate and such other
information as the Director may require to determine the rate's
compliance with Section 351A-11.1 of this Code. Each rate
filing must also include a certification by a qualified actuary
that to the best of the actuary's knowledge and judgment the
rate filing is in compliance with applicable laws and
regulations and that the premiums are reasonable in relation to
the benefits and consistent with company experience. Each rate
filing shall also include a certification from an office of the
company that the requested increase has been reviewed and
authorized by company management. For the purpose of this
Section, "long-term care insurance" has the meaning given to it
in subsection (a) of Section 351A-1 of this Code.
(Source: P.A. 79-777.)
Section 99. Effective date. This Act takes effect upon
becoming law.