98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3671
 
Introduced 11/7/2014, by Sen. William R. Haine
 
SYNOPSIS AS INTRODUCED:






215 ILCS 5/351A-11.1 new
215 ILCS 5/355 from Ch. 73, par. 967

 Amends the Illinois Insurance Code. Provides that, with respect to long-term care insurance coverage, no policy or certificate, or modification thereof, shall be issued or delivered to any person in this State until the classification of risks and the premium rates pertaining thereto have been approved by the Director of Insurance and that any subsequent addition to or change in premium rates shall also be subject to the Director's approval. Sets forth provisions concerning the standards for approval, determinations by the Director, and public hearings. Provides that, with respect to long-term care insurance, a filing of premium rates shall not be considered complete unless it contains all information necessary to justify the premium rate and such other information as the Director may require to determine the rate's compliance with the provision concerning long-term care insurance rates and prior approval. Sets forth additional requirements for rate filings. Effective immediately.



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A BILL FOR
 


SB3671LRB098 22897 RPM 61847 b



1 AN ACT concerning regulation.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Insurance Code is amended by 
5changing Section 355 and by adding Section 351A-11.1 as 
6follows:

7 (215 ILCS 5/351A-11.1 new)
8 Sec. 351A-11.1. Long-term care insurance rates; prior 
9approval.
10 (a) With respect to long-term care insurance coverage, no 
11policy or certificate, or modification thereof, shall be issued 
12or delivered to any person in this State until the 
13classification of risks and the premium rates pertaining 
14thereto have been approved by the Director under this Section. 
15Any subsequent addition to or change in premium rates shall 
16also be subject to the Director's approval under this Section.
17 (b) The Director shall disapprove a premium rate under this 
18Section if:
19  (1) the benefits provided are not reasonable in 
20 relation to the premium charged;
21  (2) the proposed premium rate is excessive, 
22 unjustified, or unfairly discriminatory; or
23  (3) for a given policy form, the premium rate 
 
 
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1 applicable to any particular policy issued on that policy 
2 form is increased by an amount exceeding an annual rate cap 
3 of 20%, unless the company proposing the rate increase 
4 provides evidence in the form of actuarial data to prove, 
5 according to the Director's determination, that a rate 
6 increase in excess of 20% is necessary for the financial 
7 stability of the company.
8 The company proposing the rate has the burden of proving by 
9clear and convincing evidence that the rate does not violate 
10this Section.
11 (c) The Director may request actuarial reasons and data, as 
12well as other information, needed to determine if a 
13previously-approved rate continues to satisfy the requirements 
14of this Section. The Director may withdraw approval of any rate 
15that has previously been approved on any of the grounds set 
16forth in subsection (b) of this Section.
17 (d) The Director, at his or her discretion, may conduct a 
18public hearing on any proposed change in premium rates 
19referenced in subsection (a) of this Section.




20 (215 ILCS 5/355) (from Ch. 73, par. 967)



21 Sec. 355. 
Accident
and health policies-Provisions.)

22 (a) No policy of insurance against loss or damage from the 
23sickness, or from
the bodily injury or death of the insured by 
24accident shall be issued or
delivered to any person in this 
25State until a copy of the form thereof and
of the 
 
 
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1classification of risks and the premium rates pertaining 
2thereto
have been filed with the Director; nor shall it be so 
3issued or delivered
until the Director shall have approved such 
4policy pursuant to the provisions
of Section 143. If the 
5Director
disapproves the policy form he shall make a written 
6decision stating the
respects in which such form does not 
7comply with the requirements of law
and shall deliver a copy 
8thereof to the company and it shall be unlawful
thereafter for 
9any such company to issue any policy in such form.

10 (b) With respect to long-term care insurance, a filing of 
11premium rates pursuant to subsection (a) of this Section shall 
12not be considered complete unless it contains all information 
13necessary to justify the premium rate and such other 
14information as the Director may require to determine the rate's 
15compliance with Section 351A-11.1 of this Code. Each rate 
16filing must also include a certification by a qualified actuary 
17that to the best of the actuary's knowledge and judgment the 
18rate filing is in compliance with applicable laws and 
19regulations and that the premiums are reasonable in relation to 
20the benefits and consistent with company experience. Each rate 
21filing shall also include a certification from an office of the 
22company that the requested increase has been reviewed and 
23authorized by company management. For the purpose of this 
24Section, "long-term care insurance" has the meaning given to it 
25in subsection (a) of Section 351A-1 of this Code. 
26(Source: P.A. 79-777.)



 
 
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1 Section 99. Effective date. This Act takes effect upon 
2becoming law.