2023 Illinois Compiled Statutes › Chapter 215 - INSURANCE › 215 ILCS 5/ - Illinois Insurance Code. › Article XLII - Insurance Cost Containment

(215 ILCS 5/Art. XLII heading)
ARTICLE XLII.
INSURANCE COST CONTAINMENT
(215 ILCS 5/1200) (from Ch. 73, par. 1065.900)
Sec. 1200. 
		
		This Article shall be known and may be cited as the
"Illinois Insurance Cost Containment Act".
(Source: P.A. 84-1431.)
(215 ILCS 5/1201) (from Ch. 73, par. 1065.901)
Sec. 1201. 
		Purpose of Article. 
		The purpose of this Article is to
promote the public welfare by studying the relationship of insurance
premium and related income as compared to insurance costs and expenses. The
General Assembly finds and declares that stabilizing the cost of insurance
is a vital concern to the people of this State.
It is the legislative intent, pursuant to this declared public concern, to
develop measures which will stabilize prices while continuing to provide
quality insurance products to all sectors of the citizenry.  It is the
express intent of this Article to permit and encourage competition between
companies on a sound financial basis to the fullest extent possible and to
establish a mechanism to ensure the provision of adequate insurance at
reasonable rates to the citizens of this State.
The General Assembly finds that while the gathering of insurance
cost data has been attempted on a voluntary basis in the past, the lack
of a uniform system for the collection and analysis of data and the lack
of full participation by insurers has led to inadequate and unusable data.
In order to remedy this problem, the General Assembly find it necessary to
create a mandated uniform system in Illinois for the collection, analysis
and distribution of insurance cost data.
(Source: P.A. 84-1431.)
(215 ILCS 5/1202) (from Ch. 73, par. 1065.902)
Sec. 1202. Duties. The Director shall:
(a) determine the relationship of insurance premiums     and related income as compared to insurance costs and expenses and provide such information to the General Assembly and the general public;
(b) study the insurance system in the State of     Illinois, and recommend to the General Assembly what it deems to be the most appropriate and comprehensive cost containment system for the State;
(c) respond to the requests by agencies of government     and the General Assembly for special studies and analysis of data collected pursuant to this Article. Such reports shall be made available in a form prescribed by the Director. The Director may also determine a fee to be charged to the requesting agency to cover the direct and indirect costs for producing such a report, and shall permit affected insurers the right to review the accuracy of the report before it is released. The fees shall be deposited into the Technology Management Revolving Fund and credited to the account of the Department of Insurance;
(d) make an interim report to the General Assembly no     later than August 15, 1987, and an annual report to the General Assembly no later than July 1 every year thereafter which shall include the Director's findings and recommendations regarding its duties as provided under subsections (a), (b), and (c) of this Section.
(Source: P.A. 99-642, eff. 7-28-16; 100-23, eff. 7-6-17.)
(215 ILCS 5/1203) (from Ch. 73, par. 1065.903)
Sec. 1203. 
		Powers and Additional Duties. 
		(a) The Director
may enter into any agreement with any corporation,
association or other entity he or she deems appropriate to undertake the process
described in this Article for the compilation and analysis of data
collected by the Department and may conduct or contract for studies on
insurance-related questions carried out in pursuance of the purposes of
this Article.  The agreement may provide for the corporation, association or
entity to prepare and distribute or make available data to insurers,
government and the general public.
(b) The Director shall require, and the designated corporation,
association or entity shall prepare, semi-annual basic reports in the
aggregate on insurance cost trends in Illinois.   The Director shall provide
these reports to the General Assembly, and upon request, to the public.
(c) Prior to the release or dissemination of these reports, the Director
or the designated corporation, association or entity, shall permit insurers
the opportunity to verify the accuracy of any information pertaining to the
insurer.  The insurer may submit to the Director any corrections or errors
in the compilation of the data together with any supporting evidence and
documents the insurer may provide.
(Source: P.A. 84-1431.)
(215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
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 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.
(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.
(C-3) Additional information by an advisory organization as defined in Section 463 of this Code.
(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 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 Secretary of Financial     and Professional Regulation under paragraph (1) of this subsection (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.
(3) Reports required under this subsection (C-3)     shall be filed with the Secretary no later than September 1 in  2006 and no later than September 1 of each year 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.
(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 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 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 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. 103-426, eff. 8-4-23.)
(215 ILCS 5/1205) (from Ch. 73, par. 1065.905)
Sec. 1205. 
		Employees and Professional Consultants. 
		The Department may
employ and fix the compensation of such employees, and may enter into
contractual agreements with technical and professional consultants as it
deems necessary to expedite the purposes of this Article.
(Source: P.A. 84-1431.)
(215 ILCS 5/1206) (from Ch. 73, par. 1065.906)
Sec. 1206. Expenses. The companies required to file reports under this
Article shall pay a reasonable fee established by the Director sufficient
to cover the total cost of the Department incident to or associated
with the administration and enforcement of this Article, including the
collection, analysis and distribution of the insurance cost data, the
conversion of hard copy reports to tape, and the compilation and
analysis of basic reports.
The Director may establish a schedule of fees for this purpose.
Expenses for additional reports shall be billed
to those requesting the reports. Any such fees collected under this Section
shall be paid to the Director of Insurance and deposited into the Technology Management
 Revolving Fund and credited to the account of the
Department of Insurance.
(Source: P.A. 100-23, eff. 7-6-17.)