Contact Person:

Illinois Division of Insurance

320 West Washington Street

Gayle Neuman

Review Requirements Checklist

Springfield , IL 62767-0001

217-524-6497

 

 

gayle.neuman@illinois.gov

 

Effective as of 8/25/06

 

 

 

 

Line(s) of Business

 

Code(s)

 

 

 

 

___MEDICAL MALPRACTICE

11.0000

***This checklist is for form

 

 

 

___Claims Made

11.10000

     filings only.

 

 

 

___Occurrence

11.2000

     See separate rate/rule

checklist.

 

 

 

 

 

 

 

Line(s) of Insurance

Code(s)

Line(s) of Insurance

Code(s)

Line(s) of Insurance

Code(s)

___Acupuncture

11.0001

___Hospitals

11.0009

___Optometry

11.0019

___Ambulance Services

11.0002

___Professional Nurses

11.0032

___Osteopathy

11.0020

___Anesthetist

11.0031

___Nurse – Anesthetists

11.0010

___Pharmacy

11.0021

___Assisted Living Facility

11.0033

___Nurse – Lic. Practical

11.0011

___Physical Therapy

11.0022

___Chiropractic

11.0003

___Nurse – Midwife

11.0012

___Physicians & Surgeons

11.0023

___Community Health Center

11.0004

___Nurse – Practitioners

11.0013

___Physicians Assistants

11.0024

___Dental Hygienists

11.0005

___Nurse – Private Duty

11.0014

___Podiatry

11.0025

___Dentists

11.0030

___Nurse – Registered

11.0015

___Psychiatry

11.0026

___Dentists – General Practice

11.0006

___Nursing Homes

11.0016

___Psychology

11.0027

___Dentists – Oral Surgeon

11.0007

___Occupational Therapy

11.0017

___Speech Pathology

11.0028

___Home Care Service Agencies

11.0008

___Ophthalmic Dispensing

11.0018

___Other

11.0029

 

 

 

Illinois Insurance Code Link

Illinois Compiled Statutes Online

 

Illinois Administrative Code Link

Administrative Regulations Online

 

Product Coding Matrix Link

Product Coding Matrix

 

NAIC Uniform Transmittal Form

50 IL Adm. Code 929

 

NAIC Uniform Transmittal Form

 

If insurers wish to use the NAIC Uniform Transmittal form in lieu of a cover letter/explanatory memorandum, the Division will accept such form, as long as all information required in the “Cover Letter & Explanatory Memorandum” section below are properly included.

NAIC Self-Certification Pilot Program

Newsletter Article regarding Division's Participation

 

Self-Certification form

If an authorized company officer completes the Self-Certification form, and submits such form as the 1st page of the filing, the Division will expedite review of the filing ahead of all other filings received to date.  The Division will track company compliance with the laws, regulations, bulletins, and this checklist and report such information to the NAIC.

Location of Standard within Filing Column

See checklist format below.

To expedite review of your filing, use this column to indicate location of the standard within the filing (e.g. page #, section title, etc.) 

Description of Review Standards Requirements Column

See checklist format below.

These brief summaries do not include all requirements of all laws, regulations, bulletins, or requirements, so review actual law, regulation, bulletin, or requirement for details to ensure that forms are fully compliant before filing with the Division of Insurance.

GENERAL REQUIREMENTS FOR ALL FILINGS

 

REFERENCE

 

DESCRIPTION OF REVIEW STANDARD REQUIREMENT

LOCATION OF STANDARD IN FORM

LINE OF AUTHORITY

 

 

 

Must have proper Class and Clause authority to conduct this line of business in Illinois.

215 ILCS 5/4

List of Classes/Clauses

To write Medical Malpractice coverage in Illinois, companies must be licensed to write:

  1. Class 2, Clause (c)

 

NAIC UNIFORM TRANSMITTAL FORM

 

 

 

If insurers wish to use the NAIC Uniform Transmittal form, in lieu of cover letters and explanatory memorandums, the Division will accept such form, as long as the information required in Rules 753 and 754 is included.

50 IL Adm. Code 753

50 IL Adm. Code 754

NAIC Uniform Transmittal Form

If insurers wish to use the NAIC Uniform Transmittal form, in lieu of cover letters and explanatory memorandums, the Division will accept such form, as long as the information required in Rules 753 and 754 is included.

 

NAIC SELF-CERTIFICATION PILOT PROGRAM

 

 

 

Requirements for expediting filing review in accordance with NAIC Self-Certification Pilot Program.

Newsletter Article regarding Division's Participation

 

Self-Certification form

If an authorized company officer completes the Self-Certification form, and submits such form as the 1st page of the filing, the Division will expedite review of the filing ahead of all other filings received to date.  The Division will track company compliance with the laws, regulations, bulletins, and this checklist and report such information to the NAIC.

 

GENERAL REQUIREMENTS FOR FORM FILINGS

 

 

 

COPIES, RETURN ENVELOPES, ETC.

 

 

 

Requirement for duplicate copies and return envelope with adequate postage.

50 IL Adm. Code 753

Insurers that desire a stamped returned copy of the filing must submit a duplicate copy of the filing, along with a return envelope large enough and containing enough postage to accommodate the return filing.

 

COVER LETTER AND EXPLANATORY MEMORANDUM

 

 

 

Two copies of a submission letter are required, and the submission letter must contain specified information.

"Me too" filings are not allowed.

If insurers wish to use the NAIC Uniform Transmittal form, the Division will accept such form, as long as the information required in Rule 753 is included.

50 IL Adm. Code 753

All filings must be accompanied by a forms submission letter, in duplicate, which includes:

1) the name of the advisory organization or company making the filing.
2) title, form number, and edition identification of the forms.
3) information as to what Class and Clause coverage is written under.
4) identification of all applicable endorsements and applications as to the policy forms for which the endorsements and applications are used.
5) notification as to whether the filing is new or supersedes a present filing.  Identification of all changes in all superseding filings as well as identification of all superseded forms is required.

6) effective date of use.

Companies under the same ownership or general management are required to make separate individual company filings. Company Group ("Me too") filings are unacceptable.

If insurers wish to use the NAIC Uniform Transmittal form, the Division will accept such form, as long as the information required in Rule 753 is included.

 

FILING SUBMISSION

 

 

 

When forms must be filed.

50 IL Adm. Code 753

Forms must be received by the Division no later than their effective date of use.

 

Final printed forms must be filed.

50 IL Adm. Code 753

Typed or printer's proof copies may be submitted for review, but must be re-filed in printed form. Statements, provisions, or endorsements may not be typed or superimposed on a policy or endorsement.

 

Requirements for company FEIN and filing numbers.

Company Bulletin 88-53

 

Company must include all Federal Employer Identification Numbers (FEINs) for companies making the filing.

Companies must assign a filing number which may be alpha, numeric, or both, but may not exceed 15 characters.

Each filing number must be unique within a company and may not be repeated on subsequent filings.

Please refer to Company Bulletin 88-53 for specific information and guidance.

 

Forms under one filing number must have common coverage relationship.

Company Bulletin 88-53

 

All forms under an assigned filing number must have some common coverage relationship (e.g. all forms in an auto filing must pertain only to auto, etc.).

Please refer to Company Bulletin 88-53 for specific information and guidance.

 

NO FILE OR FILING EXEMPTIONS

 

 

 

Medical malpractice forms issued to "industrial insureds" are not required to be filed in Illinois.

However, such forms must comply with all laws, regulations, bulletins, etc. unless specifically exempted by the law, regulation, bulletin, etc.

215 ILCS 5/143(2)

215 ILCS 5/121-2.08

Medical malpractice forms issued to "industrial insureds," as defined in Section 121-2.08 are not required to be filed in Illinois.

Per Section 121-2.08, "industrial insured" is an insured:

a) which procures the insurance of any risk or risks other than life and annuity contracts by use of the services of a full time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant;

b) whose aggregate annual premiums for insurance on all risks, except for life and accident and health insurance, total at least $100,000; and

c) which either (i) has at least 25 full time employees, (ii) has gross assets in excess of $3,000,000, or (iii) has annual gross revenues in excess of $5,000,000.

However, Section 143(2) only exempts such forms from filing with the Director of Insurance. Section 143(2) does not exempt such forms from complying with all other Illinois insurance laws, regulations, bulletins, etc. unless specifically exempted by the law, regulation, bulletin, etc.

Therefore, unless specifically exempted by the law, regulation, bulletin, etc. forms must comply with all laws, regulations, bulletins, etc. and may be checked for compliance via other regulatory processes such as consumer complaints, market conduct exams, etc.

 

Manuscript endorsements are not required to be filed.

215 ILCS 5/143(3)

Insurers are not required to file riders or endorsements prepared to meet special, unusual, peculiar, or extraordinary conditions applying to an individual risk.

Because Section 143(3) exempts only riders or endorsements, policy forms applying to an individual risk must still be filed. In addition, because Section 143(3) exempts only endorsements applying to an individual risk, if a company uses the same endorsement on more than one risk, such form no longer qualifies for the filing exemption and must be filed.

 

SIDE BY SIDE COMPARISON

 

 

 

Form changes must be highlighted.

50 IL Adm. Code 753

Changes from currently filed forms must be highlighted.

 

THIRD PARTY FILERS AUTHORITY

 

 

 

Insurer may authorize an advisory organization to make a form filing on its behalf.

Insurer may change or delay the effective date of an advisory organization form filing by properly notifying the Division.

Insurer may authorize attorneys, consulting firms, etc. to submit form filings to the Division, as long as the filing includes proper authorization.

50 IL Adm. Code 753

Insurer may authorize an advisory organization, of which it is a member or subscriber, to file forms on its behalf, as long as the insurer has on file with the Division a forms authorization letter, in duplicate, which includes:
1) the name of the authorized advisory organization.
2) the kinds of business for which filings will be made.
3) authorization clause or language.
4) effective date of authorization.

Insurer may change or delay the effective date of an advisory organization form filing by notifying the Division. The notice shall include the insurer name, FEIN number, line of insurance, advisory organization name and filing number, and effective date desired.

Insurer may authorize attorneys, consulting firms, etc. to submit form filings to the Division, as long as the filing includes a notice, signed by an authorized company officer, giving authority for the entity to act on the insurer's behalf on any issues related to the filing.

 

FORMS -- POLICY PROVISIONS

 

 

 

AMBIGUOUS & MISLEADING

 

 

 

The Director may disapprove a form filing if it contains inconsistent, ambiguous, or misleading clauses.

215 ILCS 5/143(2)

Director may disapprove any form that contains inconsistent, ambiguous, or misleading clauses.

 

APPLICATIONS

 

 

 

Applications must be filed.

50 IL Adm. Code 753

Applications must be filed.

 

ARBITRATION

 

 

 

Requirements for arbitration provisions.

710 ILCS 5/1

215 ILCS 5/143(2)

Any controversy or claim arising out of or relating to the contract, or the breach thereof, may be settled within a reasonable time limit by arbitration administered by the American Arbitration Association in accordance with the Uniform Arbitration Act 710 ILCS 5/1.

The arbitration may be binding on both parties, or non-binding upon the insured, but in all instances must be entered into on a voluntary basis, as the insured must have the option of filing a lawsuit. Any forms that contain provisions to the contrary are deemed to contain exceptions and conditions that unreasonably or deceptively affect the risks that are purported to be assumed by the policy, in violation of Section 143(2) and will be disapproved accordingly.

 

Final arbitration decisions must be recognized by and binding on insurers.

215 ILCS 5/155.20

All final arbitration decisions rendered in relation to disputes or controversies arising out of injuries allegedly caused by reason of hospital or health care provider malpractice must be recognized by licensed insurers, and all findings of facts relating to liability and awards of damages in relation thereto which are part of the final arbitration decision shall be binding on such insurers.

 

Arbitration agreement not grounds for refusing to offer medical liability insurance.

215 ILCS 5/155.21

Insurer shall not refuse to offer insurance to a physician, hospital or other health care provider on the grounds that the physician, hospital or health care provider has entered or intends to enter an arbitration agreement pursuant to the "Malpractice Arbitration Act" [710 ILCS 15/1 et seq.].

 

BANKRUPTCY PROVISIONS

 

 

 

Policies that contain liability coverage must include a bankruptcy provision.

215 ILCS 5/388

All policies containing liability coverage must include a provision stating that insolvency or bankruptcy of the insured shall not release the company from its duties to pay under the policy.

 

BLANK ENDORSEMENTS

 

 

 

Blank endorsements are acceptable for filing, with exceptions.

215 ILCS 5/143(2)

Blank endorsements may be filed, but may not be used to decrease coverage, increase rates or deductibles, or negatively alter any terms or conditions of coverage, unless such change is at the sole request of the insured. Any forms that contain provisions to the contrary are deemed to contain exceptions and conditions that unreasonably or deceptively affect the risks that are purported to be assumed by the policy, in violation of Section 143(2) and will be disapproved accordingly.

 

CANCELLATION & NON-RENEWAL

 

 

 

May not refuse to issue a policy on sole basis of previous refusal, cancellation or nonrenewal by any insurer.

215 ILCS 5/143.10

No company shall refuse to issue a policy on the sole basis that the insured or applicant for such policy was previously refused issuance or renewal of a policy by an insurer, or such insured's policy was cancelled on a prior date by any insurer.

 

Loss information requested for underwriting.

215 ILCS 5/143.10a

No prospective insurer shall request the insured to provide more detailed loss information than required by it to underwrite the same line or class of insurance.

 

Loss information required to be provided.

215 ILCS 5/143.10a

Insurer shall provide the following loss information to the first named insured within 30 days of the insured's request, and at the same time as any notice of cancellation or nonrenewal, except where the policy has been cancelled for nonpayment of premium, material misrepresentations or fraud on the part of the insured:

a) on closed claims, date and description of occurrence, and total amounts of payments;

b) on open claims, date and description of occurrence, total amount of payments and total reserves, if any; and

c) for any occurrence not included in (a) or (b), the date and description of occurrence and total reserves, if any.

Insurer shall provide additional loss information, including specific loss reserves, to the first named insured as soon as possible, but in no event later than 20 days of receipt of named insured's mailed or delivered written request for such information at the request of a prospective insurer.

Insurer shall automatically extend coverage under the existing policy, at the same terms and conditions by the same number of days it takes the insurer to provide the insured with this additional information.

 

Policy must contain cancellation provision.

215 ILCS 5/143.11

Policy must include a cancellation provision setting out the manner in which the policy may be cancelled. <