Bill Text: IL SB2339 | 2013-2014 | 98th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Intergovernmental Cooperation Act. Requires joint insurance pools to annually file with the Director of Insurance a certification by an independent actuary that the pool's reserves are in accordance with sound loss-reserving standards and adequate for the payment of claims. Authorizes the Director to adopt, by administrative rule, appropriate penalties for joint insurance pools that fail to comply with certain auditing, reporting, and certification requirements. Authorizes the Director, or his or her designees, to examine the affairs, transactions, accounts, records, and assets and liabilities of each joint insurance pool as often as the Director deems advisable. Requires the joint insurance pools to cooperate fully with the Director's representatives in all evaluations and audits and to resolve issues raised in those evaluations and audits. Provides that the failure to resolve those issues shall constitute a violation of the Act and may, after notice and an opportunity to be heard, result in the imposition of penalties established by the Director by administrative rule. Provides that if a joint insurance pool requires a member to submit written notice in order for the member to withdraw from a qualified pool, then the period in which the member must provide the written notice cannot, except in certain circumstances, be greater than 90 days.
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Passed) 2013-08-16 - Public Act . . . . . . . . . 98-0504 [SB2339 Detail]
Download: Illinois-2013-SB2339-Engrossed.html
Bill Title: Amends the Intergovernmental Cooperation Act. Requires joint insurance pools to annually file with the Director of Insurance a certification by an independent actuary that the pool's reserves are in accordance with sound loss-reserving standards and adequate for the payment of claims. Authorizes the Director to adopt, by administrative rule, appropriate penalties for joint insurance pools that fail to comply with certain auditing, reporting, and certification requirements. Authorizes the Director, or his or her designees, to examine the affairs, transactions, accounts, records, and assets and liabilities of each joint insurance pool as often as the Director deems advisable. Requires the joint insurance pools to cooperate fully with the Director's representatives in all evaluations and audits and to resolve issues raised in those evaluations and audits. Provides that the failure to resolve those issues shall constitute a violation of the Act and may, after notice and an opportunity to be heard, result in the imposition of penalties established by the Director by administrative rule. Provides that if a joint insurance pool requires a member to submit written notice in order for the member to withdraw from a qualified pool, then the period in which the member must provide the written notice cannot, except in certain circumstances, be greater than 90 days.
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Passed) 2013-08-16 - Public Act . . . . . . . . . 98-0504 [SB2339 Detail]
Download: Illinois-2013-SB2339-Engrossed.html
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1 | AN ACT concerning government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Intergovernmental Cooperation Act is | ||||||
5 | amended by changing Section 6 as follows:
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6 | (5 ILCS 220/6) (from Ch. 127, par. 746)
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7 | Sec. 6. Joint self-insurance. An intergovernmental | ||||||
8 | contract may, among
other undertakings,
authorize public | ||||||
9 | agencies to jointly self-insure and authorize each public
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10 | agency member of the contract to utilize its funds to pay to a | ||||||
11 | joint
insurance pool its costs and reserves to protect, wholly | ||||||
12 | or partially,
itself or any public agency member of the | ||||||
13 | contract against liability or
loss in the designated insurable | ||||||
14 | area. | ||||||
15 | A joint insurance pool shall have an
annual audit performed | ||||||
16 | by an independent certified public accountant and shall
file an | ||||||
17 | annual audited financial report with the Director of Insurance | ||||||
18 | no later
than 150 days after the end of the pool's immediately | ||||||
19 | preceding fiscal year.
The
Director of Insurance shall issue | ||||||
20 | rules necessary to implement this audit and
report requirement. | ||||||
21 | The rule shall establish the due date for filing the
initial | ||||||
22 | annual audited financial report. Within 30 days after January | ||||||
23 | 1,
1991, and within 30 days after each January 1 thereafter, |
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1 | public agencies
that are jointly self-insured to protect | ||||||
2 | against liability under the
Workers' Compensation Act and the | ||||||
3 | Workers' Occupational Diseases Act shall
file with the Illinois | ||||||
4 | Workers' Compensation Commission a report indicating an | ||||||
5 | election to
self-insure. | ||||||
6 | The joint insurance pool shall also annually file with the | ||||||
7 | Director a statement of actuarial opinion by an independent | ||||||
8 | actuary who is an associate or fellow in a casualty actuarial | ||||||
9 | society that the pool's reserves are in accordance with sound | ||||||
10 | loss-reserving standards and adequate for the payment of | ||||||
11 | claims. This opinion shall be filed no later than 150 days | ||||||
12 | after the end of each fiscal year. The joint insurance pool | ||||||
13 | shall be exempt from filing a statement of actuarial opinion by | ||||||
14 | an independent actuary who is an associate or fellow in a | ||||||
15 | casualty actuarial society that the joint insurance pool's | ||||||
16 | reserves are in accordance with sound loss-reserving standards | ||||||
17 | and payment of claims for the primary level of coverage if the | ||||||
18 | joint insurance pool files with the Director, by the reporting | ||||||
19 | deadline, a statement of actuarial opinion from the provider of | ||||||
20 | the joint pool's aggregate coverage, reinsurance, or other | ||||||
21 | similar excess insurance coverage.
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22 | The Director may assess penalties against a joint insurance | ||||||
23 | pool that fails to comply with the auditing, statement of | ||||||
24 | actuarial opinion, and examination requirements of this | ||||||
25 | Section in an amount equal to $500 per day for each violation, | ||||||
26 | up to a maximum of $10,000 for each violation. The Director (or |
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1 | his or her staff) or a Director-selected independent auditor | ||||||
2 | (or actuarial firm) that is not owned or affiliated with an | ||||||
3 | insurance brokerage firm, insurance company, or other | ||||||
4 | insurance industry affiliated entity may examine, as often as | ||||||
5 | the Director deems advisable, the affairs, transactions, | ||||||
6 | accounts, records, and assets and liabilities of each joint | ||||||
7 | insurance pool that fails to comply with this Section. The | ||||||
8 | joint insurance pool shall cooperate fully with the Director's | ||||||
9 | representatives in all evaluations and audits of the joint | ||||||
10 | insurance pool and resolve issues raised in those evaluations | ||||||
11 | and audits. The failure to resolve those issues may constitute | ||||||
12 | a violation of this Section, and may, after notice and an | ||||||
13 | opportunity to be heard, result in the imposition of penalties | ||||||
14 | pursuant to this Section. No sanctions under this Section may | ||||||
15 | become effective until 30 days after the date that a notice of | ||||||
16 | sanctions is delivered by registered or certified mail to the | ||||||
17 | joint insurance pool. The Director shall have the authority to | ||||||
18 | extend the time for filing any statement by any joint insurance | ||||||
19 | pool for reasons that he or she considers good and sufficient. | ||||||
20 | If a joint insurance pool requires a member to submit | ||||||
21 | written notice in order for the member to withdraw from a | ||||||
22 | qualified pool, then the period in which the member must | ||||||
23 | provide the written notice cannot be greater than 120 days, | ||||||
24 | except that this requirement applies only to joint insurance | ||||||
25 | pool agreements entered into, modified, or renewed on or after | ||||||
26 | the effective date of this amendatory Act of the 98th General |
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1 | Assembly. | ||||||
2 | For purposes of this Section, "public agency member" means | ||||||
3 | any public
agency
defined or created under this Act, any local | ||||||
4 | public entity as defined in
Section 1-206 of
the Local | ||||||
5 | Governmental and Governmental Employees Tort Immunity Act, and | ||||||
6 | any
public agency, authority, instrumentality, council, board, | ||||||
7 | service region,
district,
unit, bureau,
or, commission, or any | ||||||
8 | municipal corporation, college, or university, whether
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9 | corporate or
otherwise,
and any other local governmental body | ||||||
10 | or similar entity that is presently
existing or
created after | ||||||
11 | the effective date of this amendatory Act of the 92nd General
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12 | Assembly,
whether or not specified in this Section.
Only public | ||||||
13 | agency members with tax receipts, tax revenues, taxing
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14 | authority, or other
resources sufficient to pay costs and to | ||||||
15 | service debt related to
intergovernmental activities
described | ||||||
16 | in this Section, or public agency members created by or as part | ||||||
17 | of a
public
agency with these powers, may enter into contracts | ||||||
18 | or otherwise associate among
themselves as permitted in this | ||||||
19 | Section.
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20 | No joint insurance pool or other intergovernmental | ||||||
21 | cooperative offering health insurance shall interfere with the | ||||||
22 | statutory obligation of any public agency member to bargain | ||||||
23 | over or to reach agreement with a labor organization over a | ||||||
24 | mandatory subject of collective bargaining as those terms are | ||||||
25 | used in the Illinois Public Labor Relations Act. No | ||||||
26 | intergovernmental contract of insurance offering health |
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1 | insurance shall limit the rights or obligations of public | ||||||
2 | agency members to engage in collective bargaining, and it shall | ||||||
3 | be unlawful for a joint insurance pool or other | ||||||
4 | intergovernmental cooperative offering health insurance to | ||||||
5 | discriminate against public agency members or otherwise | ||||||
6 | retaliate against such members for limiting their | ||||||
7 | participation in a joint insurance pool as a result of a | ||||||
8 | collective bargaining agreement.
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9 | It shall not be considered a violation of this Section for | ||||||
10 | an intergovernmental contract of insurance relating to health | ||||||
11 | insurance coverage, life insurance coverage, or both to permit | ||||||
12 | the pool or cooperative, if a member withdraws employees or | ||||||
13 | officers into a union-sponsored program, to re-price the costs | ||||||
14 | of benefits provided to the continuing employees or officers | ||||||
15 | based upon the same underwriting criteria used by that pool or | ||||||
16 | cooperative in the normal course of its business, but no member | ||||||
17 | shall be expelled from a pool or cooperative if the continuing | ||||||
18 | employees or officers meet the general criteria required of | ||||||
19 | other members.
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20 | (Source: P.A. 93-721, eff. 1-1-05; 94-685, eff. 11-2-05.)
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