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| Public Act 099-0542 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Section 35A-15 as follows:
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(215 ILCS 5/35A-15)
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Sec. 35A-15. Company action level event.
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(a) A company action level event means any of the following | ||||
events:
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(1) The filing of an RBC Report by an insurer that | ||||
indicates that:
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(A) the insurer's total adjusted capital is | ||||
greater than or equal to its
regulatory action level | ||||
RBC, but less than its company action level RBC;
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(B) the insurer, if a life, health, or life and | ||||
health insurer or a fraternal benefit society, has
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total adjusted capital that is greater than or equal
to | ||||
its company action level RBC, but less than the product | ||||
of its authorized
control level RBC and 3.0 and has a | ||||
negative trend; or
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(C) the insurer, if a property and casualty | ||||
insurer, has total adjusted capital that is greater | ||||
than or equal
to its company action level RBC, but less | ||||
than the product of its authorized
control level RBC | ||
and 3.0 and triggers the trend test determined in | ||
accordance with the trend test calculation included in | ||
the property and casualty RBC Instructions. | ||
(D) the insurer, if a health organization, has | ||
total adjusted capital that is greater than or equal to | ||
its company action level RBC but less than the product | ||
of its authorized control level RBC and 3.0 and | ||
triggers the trend test determined in accordance with | ||
the trend test calculation included in the Health RBC | ||
Instructions.
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(2) The notification by the Director to the insurer of | ||
an Adjusted RBC
Report that indicates an event described in
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paragraph (1),
provided the insurer does not challenge the | ||
Adjusted RBC Report under Section
35A-35.
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(3) The notification by the Director to the insurer | ||
that the Director has,
after a hearing, rejected the | ||
insurer's challenge under Section 35A-35 to an
Adjusted RBC | ||
Report that indicates the event described in paragraph (1).
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(b) In the event of a company action level event, the | ||
insurer shall prepare
and submit to the Director an RBC Plan | ||
that does
all of the following:
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(1) Identifies the conditions that contribute to the
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company action level event.
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(2) Contains proposed corrective actions that the | ||
insurer intends to
take and that are expected to result in | ||
the elimination of the company action
level event.
A health | ||
organization is not prohibited from
proposing recognition | ||
of a parental guarantee or a letter of credit to
eliminate | ||
the company action level event; however the Director shall, | ||
at his
discretion, determine whether or the extent to which | ||
the proposed parental
guarantee or letter of credit is an | ||
acceptable part of a satisfactory RBC Plan
or Revised RBC | ||
Plan.
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(3) Provides projections of the insurer's financial | ||
results in the current
year and at least the 4 succeeding | ||
years, both in the absence of proposed
corrective actions | ||
and giving effect to the proposed corrective actions,
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including projections of statutory operating income, net | ||
income, capital, and
surplus. The projections for both new | ||
and renewal business may include
separate projections for | ||
each major line of business and separately identify
each | ||
significant income, expense, and benefit component.
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(4) Identifies the key assumptions affecting the | ||
insurer's projections
and the sensitivity of the | ||
projections to the assumptions.
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(5) Identifies the quality of, and problems associated | ||
with, the insurer's
business including, but not limited to, | ||
its assets, anticipated business growth
and associated | ||
surplus strain, extraordinary exposure to risk, mix of | ||
business,
and use of reinsurance, if any, in each case.
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(c) The insurer shall submit the RBC Plan to the Director | ||
within 45 days
after the company action
level event occurs or | ||
within 45 days after the Director notifies the insurer
that the | ||
Director has, after a hearing, rejected its
challenge under | ||
Section 35A-35 to an
Adjusted RBC Report.
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(d) Within 60 days after an insurer submits an RBC Plan to | ||
the
Director, the Director shall notify the insurer whether the | ||
RBC Plan shall be
implemented or is, in the judgment of the | ||
Director, unsatisfactory. If the
Director determines the RBC | ||
Plan is unsatisfactory,
the notification to the insurer shall | ||
set forth the reasons for the
determination
and may set forth | ||
proposed revisions that will render the RBC Plan satisfactory
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in the judgment of the Director. Upon notification from the | ||
Director, the
insurer shall prepare a Revised RBC Plan, which | ||
may incorporate by reference
any revisions proposed by the | ||
Director. The insurer shall submit the Revised
RBC Plan to the | ||
Director within 45 days after the Director notifies the insurer
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that the RBC Plan is unsatisfactory or within 45 days after the | ||
Director
notifies the insurer that the Director has, after a | ||
hearing, rejected its
challenge under Section 35A-35 to the | ||
determination that the RBC Plan is
unsatisfactory.
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(e) In the event the Director notifies an insurer that its
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RBC Plan or Revised RBC Plan is unsatisfactory, the Director | ||
may, at
the Director's discretion and subject to the insurer's | ||
right to a hearing under
Section 35A-35, specify in the | ||
notification that the notification constitutes a
regulatory | ||
action level event.
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(f) Every domestic insurer that files an RBC Plan or | ||
Revised RBC Plan with
the Director shall file a copy of the RBC | ||
Plan or Revised RBC Plan with the
chief insurance regulatory | ||
official in any state in which the insurer is
authorized to do | ||
business if that state has a law substantially similar to the
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confidentiality provisions in subsection (a) of Section 35A-50 | ||
and if that
official requests in writing a copy of the plan. | ||
The insurer shall file a copy
of the
RBC Plan or Revised RBC | ||
Plan in that state no later than the later of
15 days after | ||
receiving the written request for the copy or
the date on which | ||
the RBC Plan or Revised RBC Plan is filed under
subsection (c) | ||
or (d) of this Section.
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(Source: P.A. 97-955, eff. 8-14-12; 98-157, eff. 8-2-13.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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