2013 INSURANCE INDUSTRY
BILL STATUS REPORT
As of June 1, 2013
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AGENTBill:HB 977
Sponsors:B. Wheeler (R64)
Summary:Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice for a person to impose a surcharge upon a consumer who elects to pay by use of a credit card instead of making payment by cash, check, or similar means of payment. Effective immediately.
Status:3/22/2013 House Re-Referred to Rules
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Bill:HB 1015
Sponsors:M. Zalewski (D23)
Summary:Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department may revoke a certificate of registration, permit, or license of an entity that is in default for moneys due to the Department. Amends the State Finance Act to provide that the Department of Revenue may maintain a petty cash fund not to exceed $2,000. Amends the Illinois Income Tax Act. Provides that payments received from the assignment of a prize under the Illinois Lottery Law are allocable to this State. Amends the Use Tax Act. Provides that retailers that do not possess a valid certificate of registration at the time the sale are not entitled to a vendor's discount under the Act. Amends the Retailers' Occupation Tax Act. Provides that the Department may deny a certificate of registration to any applicant if any owner, partner, manager, or member is in default of a tax or fee Act administered by the Department. Allows the Department of the Lottery to designate specific lottery game drawings to benefit the various scratch-off game funds. Provides that each special drawing designation shall be publicly announced by the Department in advance of the drawing date, along with the name of the fund that will benefit from the drawing and any special criteria for the transfer of moneys to the beneficiary fund.
Status:3/22/2013 House Rule 19(a) / Re-referred to Rules Committee
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Bill:HB 2328
Sponsors: P. Verschoore (D72)
Summary:Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice for a person to impose a surcharge upon a consumer who elects to pay by use of a credit card instead of making payment by cash, check, or similar means of payment. Effective immediately.
Status: 3/22/2013 House Rule 19(a) / Re-referred to Rules Committee
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Bill:HB 2355
Sponsors:F. Mautino (D76)
Summary:Amends the Illinois Insurance Code. Sets forth a definition of "travel insurance". Makes a change in the provision concerning limited lines producer licenses. Provides that notwithstanding any other provision of law, a travel retailer may offer and disseminate travel insurance on behalf of and under a limited lines producer business entity license only if certain conditions are met. Provides that any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers brochures or other written materials that contain certain information and explanations. Prohibits a travel retailer's employee or authorized representative who is not licensed as an insurance producer from certain actions. Provides that a travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines producer meeting certain conditions is authorized to do so and receive related compensation, upon registration by the limited lines producer. Provides that travel insurance may be provided under an individual policy or under a group or master policy. Provides that as the insurer designee, the limited lines producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with the provision concerning travel insurance limited line license for limited lines travel insurance producers.
Status:4/19/2013 –House Re-Referred to Rules
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Bill:HB 2782
Sponsors:T. Morrison (R54)
Summary:Creates the Employment Noncompete Agreement Act. Finds that employers have vested, protectable interests in their customers, clients, and identified prospects that are legitimately protectable through the use of noncompete agreements. Establishes criteria for a valid noncompete agreement between an employer and an employee. Provides that a noncompete agreement may prohibit any solicitation of an employer's existing customers, clients, identified prospective customers, and other employees during the post-employment restriction period. Provides that the restriction period must have a reasonable relationship to an employee's position and salary at the time of termination and may not exceed specified maximum periods based upon annualized compensation. Provides that no specific or additional consideration is required to be paid by an employer to an employee to enforce a noncompete agreement. Establishes remedies.
Status:3/22/2013 House Rule 19(a) / Re-referred to Rules Committee
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Bill:HB 3024
Sponsors:F. Hurley (D35); A. Riley (D38)
Summary:Amends the Personal Information Protection Act. Expands the scope of the Act to cover private contact information (home address, home or personal phone number, personal e-mail address). Limits the transfer of private contact information.
Status:3/22/2013 House Rule 19(a) / Re-referred to Rules Committee
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Bill:SB 1194
Sponsors:W. Haine (D56); (F. Mautino (D76))
Summary:Creates the Insurance Navigator Certification Act. Provides that no individual or entity shall perform, offer to perform, or advertise any service as a navigator in this State or receive navigator funding from the State or an exchange unless certified as a navigator by the Director of Insurance under the Act. Sets forth provisions concerning prohibited activities; applications for certification; certificate renewal; referrals; probation, the refusal to issue or renew a certificate, and the revocation or suspension of a certificate; reporting requirements; and the Act's relationship to other laws and rulemaking authority. Contains a severability clause. Effective immediately.
Status:5/28/2013 Passed Both Houses
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Bill:SB 1758
Sponsors:W. Haine, (D56) (F. Mautino (D76))
Summary:Amends the Illinois Insurance Code. Includes credit life and credit accident and health insurance and other credit insurance policies approved or permitted by the Director of Insurance among the classes of insurance for which a person may obtain a limited lines producer license; makes a corresponding change concerning fees. Provides that a credit insurance company must conduct a training program in which an applicant shall receive basic instruction about the credit insurance products that they will be selling. Effective immediately.
Status:6/6/13 –Sent to Governor
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Bill:SB 2328
Sponsors:T. Hutchinson (D40)
Summary:Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning notices or regulations requiring records, statements, and special reports.
Status:2/15/2013 House Referred to Assignments
DEFERRED COMP / 403 (b) / IRA’SBill:HB 1401
Sponsors:E. Nekritz (D57)
Summary:Amends the State Mandates Act. Provides that no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act and that nothing in this amendatory Act overrides the process established under the School Code. Amends the School Code. Provides that if a school board other than the Chicago Board of Schools offers a 403(b) plan to its officers, employees, or both, or makes contributions to such a plan on behalf of its officers, employees, or both, then the plan sponsor must act in accordance with the prudent investor rule when making plan-related decisions. Sets forth the prudent investor rule and provides that this amendatory Act does not apply to any plan under the Illinois Pension Code. Effective immediately.
Status:3/22/2013 House Rule 19(a) / Re-referred to Rules Committee
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Bill:HB 2349
Sponsors:J. Bradley (D117)
Summary:Amends the Deferred Compensation Article of the Illinois Pension Code. Provides that a school district or community college district may administer a plan authorized in Section 403(b) of the Internal Revenue Code of 1986 and may authorize companies to provide annuities and other investments as part of the plan without a competitive selection process, subject to certain stated conditions. Among those conditions, provides that the company may not charge more than 10 times the fees and expenses of an investment in the deferred compensation plan for State employees. Effective immediately.
Status:2/19/13 – House Rules
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Bill:HB 2461
Sponsors:D. Mell (D40); B. Currie (D25)
Summary:Creates the Automatic Individual Retirement Account Program Act. Establishes a portable retirement savings program for employees of employers that have not offered a qualified retirement plan to their employees within the last 2 years. Provides for the deduction of moneys from the wages of persons enrolled in the program. Provides for the deposit of those moneys in the Automatic IRA Program Fund. Authorizes a 7-member board to invest those moneys, choose permitted retirement program investment options, and make other programmatic decisions. Sets forth requirements pertaining to the Board and its composition and duties. Grants the Department of Employment Security administrative and enforcement powers. Also contains provisions concerning: investment firms; permissible investments; default enrollee contributions; investment policies; payroll deduction retirement savings arrangements; duties and liabilities of the State and employers; enrollee information packets; required audits and reports; penalties; rules; and program implementation. Effective immediately.
Status:3/22/2013 House Rule 19(a) / Re-referred to Rules Committee
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Bill:SB 1218
Sponsors:D. Biss (D9); T. Link (D30); H. Steans (D7)
Summary:Amends the School Code. Provides that, beginning January 1, 2015, if a school board other than the Chicago Board of Schools offers a 403(b) plan to its officers, employees, or both, or makes contributions to such a plan on behalf of its officers, employees, or both, then the plan sponsor must act in accordance with the prudent investor rule when making plan-related decisions. Amends the State Mandates Act to require implementation without reimbursement.
Status:3/22/2013 Senate Rule 3-9(a) / Re-referred to Assignments
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Bill:SB 2400
Sponsors:D. Biss (D9); I. Martinez (D20); D. Harmon (D39)
Summary:Creates the Automatic Individual Retirement Account Program Act. Establishes a portable retirement savings program for employees of employers that have not offered a qualified retirement plan to their employees within the last 2 years. Provides for the deduction of moneys from the wages of persons enrolled in the program. Provides for the deposit of those moneys in the Automatic IRA Program Fund. Authorizes a 7-member board to invest those moneys, choose permitted retirement program investment options, and make other programmatic decisions. Sets forth requirements pertaining to the Board and its composition and duties. Grants the Department of Employment Security administrative and enforcement powers. Also contains provisions concerning: investment firms; permissible investments; default enrollee contributions; investment policies; payroll deduction retirement savings arrangements; duties and liabilities of the State and employers; enrollee information packets; required audits and reports; penalties; rules; and program implementation. Effective immediately.
Status:5/9/2013 Scheduled – Senate Licensed Activities & Pensions
Bill:HB 981
Sponsors:M. Davis (D27)
Summary:Amends the Illinois Insurance Code. Provides that the board of directors of the Illinois Insurance Guaranty Fund shall consist of not less than 5 nor more than 10 persons, with one public member appointed by the Director of Insurance (rather than not less than 5 nor more than 11 persons, with 2 public members appointed by the Director). Provides that the public member shall be a resident of this State, and he or she shall either (1) be a licensed and certified public accountant under the laws of this State or (2) have earned, and maintain in good standing, the Chartered Property and Casualty Underwriter (CPCU) designation from the American Institute for Chartered Property Casualty Underwriters.
Status:5/15/2013 Passed both Houses
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Bill:HB 982
Sponsors:F. Mautino (D76); J. Osmond (R61); M. Davis (D27); B. Haine (D56)
Summary:Amends the Illinois Insurance Code in the provision concerning factors to which domestic companies are subject with regard to establishing one or more separate accounts and allocating thereto amounts to provide for life, annuity, or accident and health insurance. Provides that the assets of any separate account equal to the reserves and other contract liabilities with respect to the account may not be charged with liabilities arising out of any other business the company may conduct, unless the separate account is subject to guarantees (now, any other business the company may conduct). Provides that in a case in which a separate account is subject to guarantees, the assets shall be charged with liabilities arising out of other business of the company, unless the contract specifies that the assets are insulated.Effective immediately.
Status:6/7/2013 Sent to Governor
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Bill:HB 991
Sponsors:J. Osmond (R61)
Summary:Amends the Illinois Insurance Code to set forth provisions concerning the rehabilitation or liquidation of a domestic company that is a covered financial company under the federal Dodd-Frank Wall Street Reform and Consumer Protection Act. Sets forth the grounds upon which the Director of Insurance may file a complaint for an order of rehabilitation or liquidation pursuant to the provisions of the Code concerning the grounds for rehabilitation and liquidation. Provides that after notice to the insurance company, the receivership court may grant an order on the complaint for rehabilitation or liquidation within 24 hours after its filing and that if the court does not make a determination on a complaint for rehabilitation or liquidation filed by the Director within 24 hours after its filing, then it shall be deemed granted by operation of law upon the expiration of the 24-hour period. Sets forth provisions concerning the court order and the Director's powers and authority. Effective immediately.
Status:6/7/2013 Sent to Governor
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Bill:HB 1552
Sponsors:M. Davis (W. Haine)
Summary:Amends the Illinois Insurance Code. Deletes language that provides that the Department of Insurance shall mail a quarterly invoice to companies transacting certain kinds of business in this State for the appropriate filing fees required under the provision concerning fees and charges. Deletes language that provides that certain notice regarding coverage for a dependent shall be provided to an insured by the insurer in a notice delivered to an insured on a semi-annual basis. Provides that the Director of Insurance shall make an annual report to the General Assembly no later than July 1 (rather than April 15) every year which shall include the Director's findings and recommendations regarding certain duties.
Status:5/16/2013 Passed both Houses
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Bill:HB 1553
Sponsors:M. Berrios (D39); J. Osmond (R61)
Summary:Amends the Illinois Insurance Code in the provision concerning credit that is allowed a domestic ceding insurer. Includes additional provisions under which credit shall be allowed when the reinsurance is ceded to an assuming insurer domiciled in certain categories of states. Includes additional requirements to apply to certain categories of assuming insurers. Makes changes to the provision concerning the inception, amendment, and renewal dates of reinsurance agreements. Includes additional provisions under which credit shall be allowed when the reinsurance is ceded to an assuming insurer certified in the State. Sets forth provisions concerning the suspension and revocation of a reinsurer's accreditation or certification, the concentration of risk, and applicability to reinsurance agreements. Makes other changes.
Status:2/13/13 – House Rules
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Bill:HB 2962
Sponsors:F. Mautino (D76) (W. Haine (D56))
Summary:Amends the Illinois Insurance Code in the Article concerning insurance holding company systems. Makes changes to the definitions. Provides that a domestic company, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries, and that the subsidiaries may conduct any kind of business or businesses and their authority to do so shall not be limited by reason of the fact that they are subsidiaries of a domestic company. Makes changes to the provisions concerning a domestic company's permitted investments. Includes certain filing requirements in the provision concerning the acquisition of control of or merger with a domestic company. Makes changes to provisions concerning the statement that is required to be filed with the Director of Insurance. Deletes certain provisions concerning deposits made with the Director, orders entered by the Director, and reports of potential adverse economic impact made to the General Assembly by the Director. Makes changes to the provisions concerning certain violations, judicial jurisdiction, acquisitions, registration statements, reporting materials, termination of registration, disclaimers, transactions, prior notification, officers and directors, examination, confidential treatment, voting, sanctions, and judicial review. Sets forth provisions concerning exemptions, summary filing, enterprise risk filing, violations, confidentiality, and supervisory colleges. Contains a severability provision. Effective on January 1, 2014, except that the provision concerning enterprise risk filing takes effect July 1, 2014.
Status:5/15/2013 Passed Senate
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Bill:SB 1411
Sponsors:W. Haine (D56)
Summary:Amends the Illinois Insurance Code to provide that a public adjuster may not charge, agree to, or accept any compensation, payment, commissions, fee, or other valuable consideration in excess of 10% of the amount of the insurance settlement claim paid by the insurer.
Status:4/19/2013 Senate Re-Referred to Assignments
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Bill:SB 1729
Sponsors:W. Haine; (J. Osmond (R-61))
Summary:Amends the Illinois Insurance Code in the Article concerning risk-based capital. Sets forth a definition of "fraternal benefit society" and makes a change in the definition of "negative trend". Includes fraternal benefit societies in the provisions concerning RBC Reports and mandatory control level events. Makes a change to one of the definitions of a company action level event to include the filing of an RBC Report by an insurer that indicates that the insurer, if a life, health, or life and health insurer or a fraternal benefit society (rather than a life, health, or life and health 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 (rather than 2.5) and has a negative trend. Sets forth a provision concerning the RBC Reports required to be filed by fraternal benefit societies. Effective immediately.
Status:6/6/13 –Sent to Governor
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