Public Act 096-0145
 		





HB0394 Enrolled
LRB096 03634 RPM 13662 b






    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 136 as follows:
 



    (215 ILCS 5/136)  (from Ch. 73, par. 748)



    Sec. 136. Annual statement. 

    (1) Every company authorized to do business in this State 
or accredited by
this State shall file with the Director by 
March 1st in each year 2 copies of
its financial statement for 
the year ending December 31st immediately preceding
on forms 
prescribed by the Director, which shall conform substantially 
to the
form of statement adopted by the National Association of 
Insurance
Commissioners.  Unless the Director provides 
otherwise, the annual statement is
to be prepared in accordance 
with the annual statement instructions and the
Accounting 
Practices and Procedures Manual adopted by the National 
Association
of Insurance Commissioners.  The Director shall 
have power to make such
modifications and additions in this 
form as he may deem desirable
or necessary to ascertain the 
condition and affairs of the company.  The
Director shall have 
authority to extend the time for filing any statement by
any 
company for reasons which he considers good and sufficient. In 
every
statement the admitted assets shall be shown at the 
actual values as of the
last day of the preceding year, in 
accordance with Section 126.7.
The statement
shall be verified 
by oaths of the president and secretary of the company or, in

their absence, by 2 other principal officers. In addition, any 
company may be
required by the Director, when he considers that 
action to be necessary and
appropriate for the protection of 
policyholders, creditors, shareholders, or
claimants, to file, 
within 60 days after mailing to the company a notice that
such 
is required, a supplemental summary statement as of the last 
day of any
calendar month occurring during the 100 days next 
preceding the mailing of such
notice designated by him on forms 
prescribed and furnished by the Director. The
Director may 
require supplemental summary statements to be certified by an

independent actuary deemed competent by the Director or by an 
independent
certified public accountant.

    (2) The statement of an alien company shall embrace only 
its
condition and transactions in the United States and shall 
be verified by
the oaths of its resident manager or principal 
representative in the
United States, except that in the case of 
any life company organized
under the laws of Canada or any 
province thereof, the statement may be
verified by the oaths of 
any of its principal officers designated for
that purpose by 
its board of directors.

    (3) For the information of the public generally the 
Director shall
cause an abstract of the information contained 
in the annual statement
to be made available to the public as 
soon as practicable after filing
with the Department, by 
printing those abstracts in pamphlet tabular form
for free 
general distribution by the Department, or by such other

publication in the city of Springfield or in the city of 
Chicago as may
be reasonably necessary more fully to inform the 
public of the financial
condition of companies transacting 
business in this State.

    (4) Each domestic, foreign, and alien insurer authorized to

do business in this State or accredited by this State shall 
participate
in the National Association of Insurance 
Commissioners' Insurance Regulatory
Information System, 
including the payment of all fees and charges of the
system.  
Each company shall, on or before March 1 of each year, file 
with the
National Association of Insurance Commissioners a copy 
of its annual financial
statement along with any additional 
filings prescribed by the Director for the
preceding year.  The 
statement filed with the National Association of Insurance

Commissioners shall be in the same format and scope as that 
required by this
Code and shall include a signed jurat page and 
actuarial certification.  Any
amendments and addendums to the 
annual statement shall also be filed with the
National 
Association of Insurance Commissioners. Each company shall 
also file
with the National Association of Insurance 
Commissioners annual and quarterly
financial statement 
information in computer readable format as required by the

Insurance Regulatory Information System.
Failure of a company 
to file financial statement information in computer
readable 
format shall subject the company to the provisions of Section 
139.

    (5) All financial analysis ratios and examination synopsis 
concerning
insurance companies that are submitted to the 
Director by the National
Association of Insurance 
Commissioners' Insurance Regulatory Information
System are 
confidential and may not be disclosed by the Director.

    (6) Every property and casualty insurance company doing 
business in this State, unless otherwise exempted by the 
Director, shall annually submit the opinion of an appointed 
actuary entitled "Statement of Actuarial Opinion". This 
opinion shall be filed in accordance with the appropriate 
National Association of Insurance Commissioners Property and 
Casualty Annual Statement Instructions.
        (a) Every property and casualty insurance company 
    domiciled in this State that is required to submit a 
    Statement of Actuarial Opinion shall annually submit an 
    Actuarial Opinion Summary, written by the company's 
    appointed actuary.  This Actuarial Opinion Summary shall be 
    filed in accordance with the appropriate National 
    Association of Insurance Commissioners Property and 
    Casualty Annual Statement Instructions and shall be 
    considered as a document supporting the Actuarial Opinion 
    required in this subsection (6). Each foreign and alien 
    property and casualty company authorized to do business in 
    this State shall provide the Actuarial Opinion Summary upon 
    request.
        (b) An Actuarial Report and underlying workpapers as 
    required by the appropriate National Association of 
    Insurance Commissioners Property and Casualty Annual 
    Statement Instructions shall be prepared to support each 
    Actuarial Opinion. If the insurance company fails to 
    provide a supporting Actuarial Report or workpapers at the 
    request of the Director or the Director determines that the 
    supporting Actuarial Report or workpapers provided by the 
    insurance company is otherwise unacceptable to the 
    Director, the Director may engage a qualified actuary at 
    the expense of the company to review the opinion and the 
    basis for the opinion and prepare the supporting Actuarial 
    Report or workpapers.
        (c) The appointed actuary shall not be liable for 
    damages to any person (other than the insurance company and 
    the Director) for any act, error, omission, decision, or 
    conduct with respect to the actuary's opinion, except in 
    cases of fraud or willful misconduct on the part of the 
    appointed actuary.
        (d) The Statement of Actuarial Opinion shall be 
    provided with the Annual Statement in accordance with the 
    appropriate National Association of Insurance 
    Commissioners Property and Casualty Annual Statement 
    Instructions and shall be treated as a public document. 
    Documents, materials, or other information in the 
    possession or control of the Director that are considered 
    an Actuarial Report, workpapers, or Actuarial Opinion 
    Summary provided in support of the opinion, and any other 
    material provided by the company to the Director in 
    connection with the Actuarial Report, workpapers or 
    Actuarial Opinion Summary, must be given confidential 
    treatment, are not subject to subpoena, and may not be made 
    public by the Director or any other persons. This paragraph 
    (d) shall not be construed to limit the Director's 
    authority to release the documents to the Actuarial Board 
    for Counseling and Discipline (ABCD), so long as the 
    material is required for the purpose of professional 
    disciplinary proceedings and that the ABCD establishes 
    procedures satisfactory to the Director for preserving the 
    confidentiality of the documents, nor shall this paragraph 
    (d) be construed to limit the Director's authority to use 
    the documents, materials or other information in 
    furtherance of any regulatory or legal action brought as 
    part of the Director's official duties. Neither the 
    Director nor any person who received documents, materials, 
    or other information while acting under the authority of 
    the Director shall be permitted or required to testify in 
    any private civil action concerning any confidential 
    documents, materials, or information subject to this 
    subsection (6). Except where another provision of this Code 
    expressly prohibits a disclosure of confidential 
    information to the specific officials or organizations 
    described in this subsection, the Director may:
            (i) share documents, materials, or other 
        information, including the confidential and privileged 
        documents, materials or information subject to this 
        paragraph (d) with the insurance department of any 
        other state or country or with law enforcement 
        officials of this or any other state or agency of the 
        federal government at any time, as long as the agency 
        or office receiving the document, material, or other 
        information agrees in writing to hold it confidential 
        and in a manner consistent with this Code;
            (ii) receive documents, materials, or information, 
        including otherwise confidential and privileged 
        documents, materials, or information, from the 
        National Association of Insurance Commissioners and 
        its affiliates and subsidiaries, and from regulatory 
        and law enforcement officials of other foreign or 
        domestic jurisdictions, and shall maintain as 
        confidential or privileged any document, material, or 
        information received with notice or the understanding 
        that it is confidential or privileged under the laws of 
        the jurisdiction that is the source of the document, 
        material, or information; and
            (iii) enter into agreements governing sharing and 
        use of information consistent with paragraph (d).
        (e) No waiver of any applicable privilege or claim of 
    confidentiality in the documents, materials or information 
    shall occur as a result of disclosure to the Director under 
    this Section or as a result of sharing as authorized in 
    subparagraphs (i), (ii), and (iii) of paragraph (d) of 
    subsection (6) of this Section.
All 2008 Annual Statements, 
    which are filed in 2009, and all subsequent Annual 
    Statement filings shall be done in accordance with 
    subsection (6) of this Section. 
(Source: P.A. 90-418, eff. 8-15-97.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.