The Illinois Department of Insurance recently posted its January 2016 Regulatory Agenda. The Regulatory Agenda contains several proposed changes to holding company regulations. The Insurance Holding Company Systems Article of the Illinois Insurance Code was amended by Public Act 98-609, effective in 2014. The changes to Illinois statutes were made based on NAIC Model Act 440 (Insurance Holding company System Regulatory Act) which was passed in December 2010. The proposed Holding Company regulatory amendments include but are not limited to: adding a severability clause to the rule pertaining to acquisitions of Illinois domestic insurance companies; changes to the Form A including new financial statement requirements for the acquiring party; modifications to the Form B and Form F illustrations; mainly editorial changes to the Pre-Acquisition Notification rule; changes to the Prior Notification of Transactions rule and Prior Notification of Dividends on Common Stock and Other Distributions rule based on updated requirements of the Model Act including significant new requirements for provisions to be included in affiliated cost sharing and management agreements and also minimum requirements for tax allocation agreements.
Other proposed changes contained in the Regulatory Agenda relate to the following rules: Required Procedure for Filing and Securing Approval of Policy Forms; Certificates of Insurance; Construction and Filing of Life Insurance and Annuity Forms; Securities Valuation Reserve; War Clauses; Valuation of Reserves; Legal Reserve Life Blank; Long-Term Care Insurance; Workers’ Compensation Large Deductible Business; Premium Fund Trust Account; Licensing of Public Adjusters; Examination and Audit Procedure; Definition of Salary; Portability of Creditable Service Time for Downstate and Suburban Police Pension Funds; Noncompliance Notification and Penalties.
First Notices of the proposed changes to the Holding Company regulations are expected to be posted in February 2016. First Notices of the other proposed changes are expected to be posted in Spring 2016.