il-v50i40-50-ill-adm-code-929: 50 Ill. Adm. Code 929 — Medical Liability Insurance Rules and Rate Filings

1) Heading of the Part: Medical Liability Insurance Rules and Rate Filings 2) Code Citation: 50 Ill. Adm. Code 929 3) Section Number: Proposed Action: 929.30 Amendment 4) Statutory Authority: Implementing Section 155.18 of, and authorized by Section 401 of, the Illinois Insurance Code [215 ILCS 5/155.18 and 401]. 5) A Complete Description of the Subjects and Issues Involved: This rulemaking is filed pursuant to Section 5-15 of the Illinois Administrative Procedure Act and is only changing the address of the Department's Springfield Office to reflect the fact that the office is moving on September 23, 2026. Section 5-15 of the Illinois Administrative Procedure Act requires agencies to include a statement of how the proposed rule made under this Section satisfies the criteria established by subsections (a) and (b). The Department's address is used by the public to obtain information from the Department and/or make submissions or requests of the Department. These members of the public may include insurance companies, persons licensed by the Department, and Illinois insurance consumers. The address provided in the rules should be accurate, otherwise such persons may go to or send correspondence to the wrong address. The decision to relocate the Springfield office was an internal management decision. The private rights of individuals are not affected by Department rules containing the accurate address, although having the incorrect address in rule will cause unnecessary confusion and delay for people seeking information from and/or making submissions to the Department in person or via mail. It is in the public interest to have the Department's office address published in the Illinois Administrative Code be correct. 6) Published studies or reports, and sources of underlying data, used to compose this rulemaking: Not required for Section 5-15 notices. 7) Will this proposed rulemaking replace an emergency rule currently in effect? Not required for Section 5-15 notices. 8) Does this rulemaking contain an automatic repeal date? Not required for Section 5-15 notices. 9) Does this proposed amendment contain incorporations by reference? Not required for Section 5-15 notices. 10) Are there any other proposed rulemakings pending on this Part? Not required for Section 5-15 notices. 11) Statement of Statewide Policy Objectives: Not required for Section 5-15 notices. 12) Time, Place, and Manner in which interested persons may comment on this proposed rulemaking: Persons who wish to comment on this proposed rulemaking may submit written comments no later than 14 days after the publication of this Notice to: Kathryn Williams Department of Insurance 115 S. LaSalle Street, 13 Floor Chicago IL 60603 (312) 814-8212 Kathryn.A.Williams@illinois.gov 13) Initial Regulatory Flexibility Analysis: Not required for Section 5-15 notices. A) Description of the type of small business, not for profit corporations or small municipalities subject to the proposed amendment: None B) Description of the proposed reporting, bookkeeping and other procedures required for compliance with the amendments: None C) Description of the types of professional skills necessary for compliance: None 14) Small Business Economic Impact Analysis: Not required for Section 5-15 notices. 15) Regulatory Agenda on which this rulemaking was summarized: Not required for Section 5-15 notices. 16) Any other information or justification for the proposed rule or amendment that the agency believes would be helpful to the public regarding the proposed rule or amendment. For example, a discussion or analysis of the benefits of the proposed rule or DEPARTMENT OF INSURANCE NOTICE OF PROPOSED AMENDMENT amendment is projected to have on the Illinois public, consumers, investors or other similar groups. Not required for Section 5-15 notices. The full text of the Proposed Amendment begins on the next page: DEPARTMENT OF INSURANCE NOTICE OF PROPOSED AMENDMENT TITLE 50: INSURANCE CHAPTER I: DEPARTMENT OF INSURANCE SUBCHAPTER l: PROVISIONS APPLICABLE TO ALL COMPANIES PART 929 MEDICAL LIABILITY INSURANCE RULES AND RATE FILINGS SUBPART A: GENERAL PROVISIONS AND REPORTING REQUIREMENTS Section 929.10 Authority 929.15 Definitions 929.20 Purpose and Scope 929.30 Filing Requirements 929.40 Severability Provision (Repealed) 929.50 Exemption from Filings SUBPART B: ADMINISTRATIVE HEARING PROVISIONS Section 929.200 Applicability (Repealed) 929.210 Form of Documents (Repealed) 929.220 Filing (Repealed) 929.230 Computation of Time (Repealed) 929.240 Appearances (Repealed) 929.250 Notice of Hearing (Repealed) 929.260 Publication of the Notice of Hearing (Repealed) 929.270 Bias or Disqualification of Hearing Officer (Repealed) 929.280 Pre-hearing Conferences (Repealed) 929.290 Conduct of the Hearing (Repealed) 929.300 Hearing Officer's Findings, Conclusions and Recommendations (Repealed) 929.310 Order of the Secretary or Director (Repealed) AUTHORITY: Implementing Section 155.18 of, and authorized by Section 401 of, the Illinois Insurance Code [215 ILCS 5/155.18 and 401]. SOURCE: Adopted at 3 Ill. Reg. 20, p. 47, effective May 13, 1979; codified at 7 Ill. Reg. 2363; amended at 30 Ill. Reg. 19530, effective December 11, 2006; recodified from the Department of Financial and Professional Regulation to the Department of Insurance pursuant to Executive Order 2009-04 at 38 Ill. Reg. 24067; amended at 39 Ill. Reg. 392, effective December 19, 2014; amended at 50 Ill. Reg. ______, effective ____________. SUBPART A: GENERAL PROVISIONS AND REPORTING REQUIREMENTS Section 929.30 Filing Requirements a) All companies writing medical liability insurance are subject to this Section. Each company must file with the Director, in a manner prescribed in this Section, under its own name. b) Rates – A company must file on its own behalf all rates for medical liability insurance, and: 1) File copies of a Rate Submission Letter using System for Electronic Rate and Form Filing (SERFF) or in another electronic format approved by the Director. This filing must include: A) The name of the company making the filing; B) FEIN of the company making the filing; C) Identification of the classes of medical liability insurance to which the filing applies; D) Notification of whether the filing is new or supersedes a present filing. Identification of all changes in superseding filings, as well as identification of all superseded filings is required; E) The effective date of use; and F) Certification by an officer of the company and a qualified actuary that the company's rates are based on sound actuarial principles and are not inconsistent with the company's experience. 2) Company Rate Information shall be completed for each company when a filing is being submitted that includes: A) Overall % Indicated Change. DEPARTMENT OF INSURANCE NOTICE OF PROPOSED AMENDMENT B) Overall % Rate Impact – This is the statewide average percentage change to the accepted rates for the coverages included for each company. C) Written premium change for this program – This is the statewide change in written premium based on the proposed overall percentage rate impact for each company. D) Number of policyholders affected for this program – This is the number of policyholders affected by the overall percentage rate impact for each company. E) Written premium for this program – This is the statewide written premium for each company. F) Maximum % Change. G) Minimum % Change. 3) Maintain documentary data on rate development and changes in order that it be available for review by the Director. c) Rules – A company must file with the Director, in a manner prescribed in this subsection (c), all underwriting rule manuals that contain rules for applying rates or rating plans, plans for the gathering of statistics or the reporting of statistics to statistical agencies, classifications, or other such schedules used in writing medical liability insurance. A company may file directly or in conjunction with an advisory organization. 1) A company filing directly must file using SERFF. The filings must include: A) The name of the company making the filing; B) The FEIN of the company making the filing; C) Identification of the classes of medical liability insurance to which the filing applies; DEPARTMENT OF INSURANCE NOTICE OF PROPOSED AMENDMENT D) Notification as to whether the filing is new or supersedes a present filing. Identification of all changes in all superseding filings is required. The preferred format for identifying changes is to underline the new wording and overstrike the deleted or changed language and give an explanation for the changes being made; E) The effective date of use; and F) Certification by an officer of the company and a qualified actuary that the company's rate rules are based on sound actuarial principles and are not inconsistent with the company's experience. 2) A company filing in conjunction with an advisory organization must file in accord with this subsection (c)(2). A) A company that has authorized an advisory organization to file required materials on the company's behalf must have on file a Rule Authorization Letter, which must include: i) The name of the company's authorized advisory organization. ii) The kinds of insurance for which the filing is being made. iii) Authorization clause or language. iv) Effective date of authorization. B) A company deviating from the advisory organization's rules as they have been filed on behalf of the company by the advisory organization under Section 929.30(c)(2)(A) must file with the Director: i) The manual rule number, which must be the same as the rule number being replaced. ii) The effective date of use. DEPARTMENT OF INSURANCE NOTICE OF PROPOSED AMENDMENT iii) Certification of an officer of the company and a qualified actuary that the company's rates are based on sound actuarial principles and are not inconsistent with the company's experience. C) A company making a filing under this subsection (c)(2) that wants an effective date different from that of the advisory organization's advisory effective date must file either: i) Manual size exception pages in duplicate establishing an automatic uniform delayed effective date applicable to all future advisory organization rule revisions; or ii) Copies of the Advisory Organization Checking Slip, in duplicate, establishing a special effective date for a particular advisory organization rule revision. d) All medical liability rate and rule manuals shall contain separate, clearly marked sections for rates and rules according to class or classes of insurance, such as physicians and surgeons, allied health, nursing homes, hospitals, nurses, dentists and chiropractors. The rate and rule manuals shall also contain a comprehensive table of contents or index at the front of each manual. e) All filings must be received using SERFF by the Illinois Department of Insurance, Property and Casualty Compliance Unit, 4800 W. Wabash Ave.320 W. Washington, Springfield, Illinois 6271162767 no later than 30 days after their effective date. Filings will be considered received during the regular business hours from 8:00 am through 5:00 pm Central Standard Time (CST), Monday through Friday, excluding holidays. f) In addition to the filings required in this Section, the Director may require the filing of statistical data and any other pertinent information necessary to determine the manner the company used to set the filed rates and the reasonableness of those rates, as well as the manner of promulgation and the acceptability or unacceptability of a filing for rules, minimum premiums, rates, forms or any combination of those items. An insurer shall provide the data or information within 14 calendar days after the Director's request. g) Groups, associations, organizations or companies authorized to engage in joint DEPARTMENT OF INSURANCE NOTICE OF PROPOSED AMENDMENT underwriting and joint reinsurance activities are prohibited from establishing underwriting rules with respect to rates that in any way inhibit a company from individually underwriting any risks. (Source: Amended at 50 Ill. Reg. ______, effective ____________)