Association Brief
Association Brief
A Weekly Synopsis of News from the Professional Independent Insurance Agents of Illinois
March 7, 2003
INDUSTRY NEWS
Governor Appoints New Insurance Director
Governor Blagojevich has named J. Anthony Clark as the new director of the Illinois
Department of Insurance. According to a press release, Clark, an attorney with
18 years of legal experience, is a recognized authority on state insurance law
regulations. Prior to establishing his own private practice, he served as counsel
for Montgomery Ward Life Insurance for 10 years.
"Part of my effort to reform our state government is to bring in accomplished
professionals, like Mr. Clark, from the private sector who have expertise and
experience to make our system work better," the Governor said. "Mr.
Clark's background in insurance law and his extensive civic involvement will
be a tremendous asset to state government in general, and the Department of
Insurance in particular."
Clark is a member of the board of directors of the Cook County Bar Association.
Previously, he served on the board of the Center for Conflict Resolution and
was president for the Society of Samaritans, a suicide prevention agency. He
earned a distinguished service award for his work with the Chicago Volunteer
Legal Services and earned the Cook County Bar Association's Presidential Award.
93rd General Assembly: PIIAI Agenda-Update/New Introductions
Property & Casualty
oPersonal Lines
HB 3194 (Chapa-LaVia) Vehicle Stickers/Liability Insurance. Amends the
Ill. Vehicle Code. Provides that, by January 1, 2004, the Secretary of State
shall adopt rules providing for issuance, and display on the rear registration
plate of every vehicle, of a sticker indicating that the vehicle is covered
by liability insurance for the current year. Provides that, beginning July 1,
2004, every company selling automobile liability insurance coverage shall provide
every vehicle insured by that company with a sticker, in the form prescribed
by the Secretary, indicating that the vehicle is covered by liability insurance.
Provides that, beginning July 1, 2004, the driver of any vehicle failing to
display the required sticker is guilty of a petty offense punishable by a fine
of $100. Provides that, beginning July 1, 2004, display of the required sticker
on a vehicle not covered by liability insurance is a petty offense punishable
by a fine of $1,000.
Status: Assigned to State Government Administration Committee
Position: Pending
HB 3522 (Burke) Auto Ins./False Address Violations. Amends the Ill. Insurance
Code. Prohibits an applicant for a policy of automobile insurance from providing
a false address. Provides that a violation is a business offense punishable
by a fine of not less than $1,000 and not more than $1,200.
Status: Assigned to Insurance Committee
Positions: Pending
HB 3547 (Howard) Coverage for Subjects of Abuse. Amends the Ill. Insurance
Code relating to coverage for subjects of abuse. Extends the restrictions on
denying coverage for subjects of abuse to property and casualty insurers.
Status: Assigned to House Insurance Committee
Position: Pending
HB 3660 (Mautino) Insurers Jurisdiction/Policies Non-renewals. Amends
the Ill. Insurance Code. Permits insurers to not renew insureds that move to
a jurisdiction where the insurer is not authorized to issue policies. Prohibits
nonrenewal of fire and extended coverage policies on the basis that the insured
reported a potential loss without payment or requested policy information. Provides
that an insured who is contesting a cancellation may have access to company
files pertaining to the insured.
Status: Assigned to House Insurance Committee
Position: Pending
oWorkers Compensation
HB 3006 (Granberg) Workers Comp/Workers Occupational Disease. Amends the
Workers' Compensation Act and the Workers' Occupational Diseases Act. Makes
various changes and additions regarding: determination of charges for health
care services provided to injured workers; processing of payments to health
care providers; resolution of disputes concerning charges for health care services;
submission of reports by the Industrial Commission concerning health care services;
attorney's fees; reimbursement for expenses; non-disputed health care payments;
disputed health care payments; reports; and other matters.
Status: Assigned to Labor Committee
Position: Pending
HB 3103 (Granberg) Construction Industry. Amends the Ill. Insurance Code.
Provides that with respect to employers correctly classified within the construction
industry, the amount charged to the insured for workers' compensation and employers'
liability insurance shall be based upon hours worked by employees in specific
job categories or classifications, not the wages or salaries paid to the employees.
Status: Assigned to Labor Committee
Position: Pending
HB 3110 (Brady) Workers Comp. Insurer Delay. Amends the Workers' Compensation
Act and the Workers' Occupational Diseases Act. Provides that if the Industrial
Commission finds by clear and convincing evidence that a workers' compensation
insurer has been shown to engage in a pattern and practice of fraudulent delay
or unfairness (rather than finding that the insurer practices a policy of delay
or unfairness) toward employees in the adjustment, settlement, or payment of
benefits, the Commission may order the insurer to discontinue the writing of
workers' compensation insurance in Ill..
Status: Assigned to Labor Committee
Position: Pending
HB 3167 (Scully) Workers Comp. Vaccine Programs. Amends the Workers'
Compensation Act and the Workers' Occupational Diseases Act. Provides that any
injury to or disease or death of an employee arising from the administration
of a vaccine to the employee as part of a voluntary inoculation program sponsored
or recommended by the employee's employer or in connection with any governmental
program or recommendation for the inoculation of workers in the employee's occupation,
geographical area, or other category that includes the employee is deemed to
arise out of and in the course of employment.
Status: Assigned to Labor Committee
Position: Pending
HB3582 (Granberg) Structured Settlement Protection Act. Creates the Structured
Settlement Protection Act. Requires that certain disclosures be given to a payee
before the payee enters into a structured settlement for the payment of a tort
claim or a settlement of a workers' compensation claim. Provides that a payee
may not transfer structured payment settlement rights without approval by a
court or responsible administrative authority. Establishes a procedure for the
approval of transfers of structured settlement payment rights.
Status: Assigned to Judiciary I--Civil
Position: Pending
Life/Health/Benefits
oLife
HB 3657 (Mautino) Life Insurance Co. Disclosure Requirements. Amends the
Ill. Insurance Code. Establishes disclosure requirements for life insurance
policies having a face amount of $20,000 or less. Requires insurers to make
a disclosure to insureds if the premiums on small policies will exceed the face
amount of the policy. Prohibits insurers from collecting premiums on small policies
when the premiums collected minus dividends paid in cash exceed 250% of the
face amount of the policy.
Status: Assigned to House Insurance Committee
Position: Pending
HB 3659 (Mautino) Viatical Settlement Brokers Regs. Amends the Viatical
Settlements Act. Sets forth acts that constitute a fraudulent viatical settlement
act. Provides for the regulation of viatical settlement brokers. Establishes
additional grounds for revocation or suspension of a license. Requires certain
disclosures to be made in connection with viatical settlements. Provides a period
of time for rescission after certain disclosures are made. Provides that violations
of the Act constitute unfair trade practices subject to disciplinary action
under the Ill. Insurance Code.
Status: Assigned to House Executive Committee
Position: Pending
oHealth
HB 2923 (Bassi) Long-Term Care Insurance Seminars. Amends the Department
on Aging Law of the Civil Administrative Code of Ill.. Requires the Department
on Aging, in coordination with the Department of Insurance, to conduct seminars
throughout the State to inform citizens about long-term care and long-term care
insurance.
Status: Assigned to Aging Committee
Position: Pending
HB 3060 (Ryg) Brain Injury Coverage. Amends the Ill. Insurance Code to
require coverage for rehabilitation therapy for brain injuries. Amends the State
Employees Group Insurance Act of 1971, the Counties Code, the Ill. Municipal
Code, the Health Maintenance Organization Act, and the Voluntary Health Services
Plans Act to require the same coverage under those Acts. Amends the State Mandates
Act to require implementation without reimbursement.
Status: Health Care Availability & Access Committee
Position: Pending
HB 3162 (Hoffman) Insurance/Unfair Practice Definition. Amends the Ill.
Insurance Code. Provides that selling insurance in an individual market after
giving notice of withdrawal from that market, if that coverage was among the
types of coverage for which notice of withdrawal was given, is an unfair and
deceptive practice. Provides that withdrawing from an individual market within
240 days of selling insurance coverage in that market is an unfair and deceptive
practice. Amends the Ill. Health Insurance Portability and Accountability Act.
Provides that a health insurance issuer may not discontinue coverage in an individual
market in Ill. if a parent health insurance issuer that owns that health insurance
issuer in whole or in part or a subsidiary health insurance issuer that is owned
in whole or in part by that health insurance issuer continues selling health
insurance in that market. Provides that a modification of coverage by a health
insurance issuer is not uniform if a parent health insurance issuer that owns
that health insurance issuer in whole or in part or a subsidiary health insurance
issuer that is owned in whole or in part by that health insurance issuer does
not make the same modification of coverage.
Status: Assigned to Insurance Committee
Position: Pending
HB 3561 (May) Self-Employed Group Health Insurance. Amends the State
Employees Group Insurance Act of 1971. Provides that self-employed persons and
small businesses may be provided group health coverage under the Act. Limits
small businesses to those with 25 or fewer employees. Amends the State Finance
Act to provide for payments made on behalf of the small business employees to
be deposited into the Small Employers Health Insurance Reserve Fund.
Status: Assigned to State Government Administration Committee
Position: Pending
HB 3580 (Granberg) Small Employer Insurance Rating. Amends the Small
Employer Health Insurance Rating Act. Provides that rates established under
the Act shall be established on the basis of community-based rates rather than
on the basis of experience-based rates.
Status: Assigned to House Insurance Committee
Position: Pending
HB 3595 (Flowers) Anti-Rejection Medication Insurance Coverage. Amends
the Ill. Insurance Code, the Comprehensive Health Insurance Program Act, the
Health Maintenance Organization Act, the Voluntary Health Services Plans Act,
and the Senior Citizens and Disabled Persons Property Tax Relief and Pharmaceutical
Assistance Act to require coverage under those Acts for immunosuppressive agents
(anti-rejection medication).
Status: Assigned to House Revenue Committee
Position: Pending
HB 3622 (Mautino) Incr. Chip's Benefits. Amends the Comprehensive Health
Insurance Plan Act. Increases the lifetime benefit available to a covered individual
from $1,000,000 to $2,000,000.
Status: Assigned to House Insurance Committee
Position: Pending
HB 3658 (Mautino) Medicare/Supplemental Policies Allowances. Amends the
Ill. Insurance Code in relation to Medicare supplements. Provides that an issuer
of Medicare supplement policies shall not deny coverage to a person under the
age of 65 who becomes eligible by reason of a disability if the person applies
for a Medicare supplement coverage policy within 6 months of the day on which
the person enrolls for Medicare Part B coverage. Limits certain rates. Requires
that all types of Medicare supplement policies available to persons over 65
years of age be made available to persons who become eligible for Medicare by
reason of a disability.
Status: Assigned to House Insurance Committee
Position: Pending
HB 3661 (Mautino) Insurance/Retired Workers Limits. Amends the Ill. Insurance
Code and the Health Maintenance Organization Act in relation to continuation
of benefits. Limits the continuation privilege for spouses and children of retired
employees to spouses and children of retired employees who have attained the
age of 65. Provides for notice of death or entry of a judgment of dissolution
to be given to the employer or insurer rather than both. Requires an employer
to give notice of death or dissolution to the insurer. Provides for coverage
for certain dependents. Requires group policies to provide a continuation privilege
for covered dependents of a deceased employee. Authorizes a continuation privilege
for employees whose work hours have been reduced.
Status: Assigned to House Insurance Committee
Position: Pending
HJRCA 18 (Boland) Universal Health Care. Proposes to amend the Bill of
Rights Article of the Ill. Constitution to provide that the State shall enact
on or before May 31, 2006 a plan for universal health care coverage for all
persons. Effective upon being declared adopted.
Status: Referred to Rules
Position: Pending
SJRCA 22 (Obama) Universal Health Care. Proposes to amend the Bill of
Rights Article of the Ill. Constitution to provide that the State shall enact
on or before May 31, 2006 a plan for universal health care coverage for all
persons. Effective upon being declared adopted.
Status: Referred to Rules
Position: Pending
oBenefits
HB 2906 (Black) Long-Term Insurance Tax Credit. Amends the Ill. Income
Tax Act. Allows an income tax credit in an amount equal to 15% of the premium
costs paid for a qualified long term care insurance contract covering the individual
taxpayer or the taxpayer's spouse, parent, or dependent. Provides that the credit
may not exceed $200 or the taxpayer's liability, whichever is less. Prohibits
the carry forward of an excess tax credit to a succeeding year's tax liability.
Exempts the credit from the sunset provisions.
Status: Assigned to Revenue Committee
Position: Pending
HB 3102 (Mathias) Financial Transaction Review Act. Creates the Financial
Transaction Review Act. Provides that financial service providers must inform
clients in writing of the right to have an attorney review any transaction involving
insurance or investment products with annual or initial payments in excess of
$2,500. Sets forth the scope of the review. Requires disclosures regarding conflicts
of interest. Provides for administration by the Department of Insurance.
Status: Consumer Protection Committee
Position: Pending
HB 3208 (O'Brien) Income Tax/Qualified Tuition Programs. Amends the Ill.
Income Tax Act. Removes a provision that requires a taxpayer to add to federal
adjusted gross income, to arrive at base income for Ill. income tax purposes,
distributions from a qualified tuition program under Section 529 of the Internal
Revenue Code other than distributions from the College Savings Pool or the Ill.
Prepaid Tuition Program to the extent those distributions were excluded from
income in arriving at federal adjusted gross income. Amends the State Treasurer
Act and further amends the Ill. Income Tax Act to allow an income tax deduction
for moneys contributed in the taxable year to the College Savings Pool, the
Ill. Prepaid Tuition Program, or to any other qualified tuition program under
Section 529 of the Internal Revenue Code (now, deduction limited to College
Savings Pool contributions).
Status: Assigned to Revenue
Position: Pending
ASSOCIATION NEWS
PIIAI to Host Multicultural Seminar
On Wednesday, March 26, 2003, PIIAI is hosting a multicultural conference at
the Lindner Conference Center in Lombard. Cheryl Koch, CPCU, ARM, AAI, AAM,
AIM, AIS, API will present "The Insurance Marketplace and Workplace: Fair
Access and Equal Treatment for All." This program is intended to help agents
understand the issues surrounding allegations of discrimination within the insurance
industry and the current public policy debate regarding insurer and agent market
conduct. The program will include a discussion on the concept of ethnocentrism
and how to counteract its effects. The program will also provide networking
opportunities with national and regional insurance company representatives.
Click here
for more information or a copy of the registration form.
2003 Legislative Events
The PIIAI, in conjunction with the Illinois Insurance Association (IIA), the
Illinois Association of Insurance and Financial Advisors (IAIFA), and the Illinois
State Association of Health Underwriters (ISAHU), annually brings together insurance
industry representatives to hear from and present positions to state legislators
and constitutional officers. The 2003 Insurance Industry Legislative Day will
be held at the Springfield Hilton Hotel on Tuesday, March 18th. A registration
form is available at www.piiai.org/government or you may call the PIIAI and
request one to be sent to you. For more information, please e-mail Penny
Driscoll or call her at (217) 321-3013.
Also, the 2003 IIABA Federal Legislative Conference in Washington, D.C. will
be held April 2-4, 2003 at the Capitol Hilton. If you are interested in attending,
please e-mail Penny Driscoll or call
her at (217) 321-3013.
COMPANY NEWS
Kemper Announces Intention to Sell Businesses to New Venture
The Kemper Insurance Companies has announced plans to sell certain lines of
its existing businesses to a new company being capitalized by private equity
funds managed by Securitas Capital, LLC, a private equity investment firm affiliated
with Swiss Re; The Cypress Group L.L.C.; Gilbert Global Equity Partners; and
some members of Kemper's existing management team.
Under the proposed transaction, the new company, which would operate under the
Kemper name, would acquire the renewal rights to certain lines of the Kemper
Insurance Companies. The lines of business included in the transaction are Kemper's
middle market offerings, such as workers' compensation, package, auto and umbrella
in support of these lines. The transaction will also include Kemper's marine
and small business accounts, professional liability business for architects
and engineers, the Ohio-based GreatLand and Kemper's fidelity and ERISA bond
operations. These business lines generated approximately $1 billion in gross
premiums in 2002.
The new company will be led by Robert A. Lindemann, senior vice president of
Kemper and president of American Manufacturers' Mutual Insurance Company, as
well as other current Kemper executives. In addition, the management teams and
much of the existing staff from the lines of business included in the transaction
are expected to be involved in the newly formed company. The new company is
expected to be capitalized with significant equity capital and supported by
appropriate reinsurance.
Kemper is expected to receive $9 million (plus statutory surplus) for certain
licensed insurance entities and a commission on renewals in the lines of business
included in the transaction as well as other financial benefits.
The transaction is subject to satisfactory completion of due diligence by the
parties involved, definitive documentation, regulatory and other approvals and
consents as well as other conditions.
For more on this and other Kemper news, visit www.kemperinsurance.com.
AGENCY RESOURCES
Are Your Clients Prepared for Unexpected Tragedies?
RLI's Stand Alone Personal Umbrella Policy, offered through PIIAI, covers your
clients by providing up to $5 million in coverage above and beyond the insured's
underlying homeowners and automobile policies. This personal umbrella is the
perfect solution for difficult-to-place personal lines accounts. The application
is self-underwriting, so you'll know immediately after completing it whether
or not your insured qualifies. For more information, call (800) 628-6436 and
dial extension 3011 for Carol Wilson
or extension 3010 for Janet White.
Small Agents Turn to AgentSecure for Access to Small Commercial
Markets
Increasingly, small agents are turning to AgentSecure, the Internet-based tool
endorsed by the PIIAI and 31 other state associations. It is specifically designed
for rural and suburban agents who need a lifeline to big-brand carriers, but
can't meet the premium volume requirements for direct appointment.
Products include BOP, Workers' Compensation, Commercial Auto and Umbrella Liability,
as well as D&O, E&O, EPLI, Builder's Risk and Bonds. For details on
AgentSecure, call Cindy Hartwig at (800) 684-0268, ext. 4005, or visit www.agentsecure.com.
CompEdge Provides a Broad Range of Classifications
PIIAI has introduced a new workers compensation program through CompEdge. The
program is administered by USA Program Administrators, Inc. Program highlights
include: a broad range of classifications, "A" rated carriers, no
minimum or maximum premium, complete ownership of expirations, multi-state policies
provided, and more. For more details, visit www.piiai.org/products
or contact Paul Della at (888) 763-3030.
Internet Finance Quoting is Here!
No more software to keep current; no more wondering if you are quoting those
finance agreements correctly. Illinois Agents Finance Co. now offers Internet
quoting for all of its servicing companies. If you would like to take advantage
of this new convenience or need more information, contact Vicky
Dearing at (630) 784-9030.
EDUCATION
Class Cancelled March 11
The CISR - Agency Operations class scheduled for Tuesday, March 11 at South
Holland Community Center has been cancelled due to low attendance. We apologize
for the inconvenience. If you have questions, please contact the PIIAI
Education Department at (800) 628-6436.
Upcoming Continuing
Education Opportunities
March 11 CISR-Agency Operations-South Holland
March 12-14 CIC-Agency Management-Hoffman Estates
March 19 21st Century Sales Operation-Bannockburn
March 20 CISR-Commercial Property-Aurora
March 25 CISR-Agency Operations-Rockford
March 25 CISR-Commercial Property-Whittington
March 27 CISR-Commercial Property-Champaign
For details, contact the education department at (800) 628-6436 or visit www.piiai.org/education.
PIIAI
• 4360 Wabash Avenue • Springfield, IL 62707
(217) 793-6660 • (800) 628-6436 • Fax (217) 793-6744
www.piiai.org • www.ChooseIndependent.com
• E-mail: info@piiai.org