NAIFA Illinois Legislative Update

    Legislative Update - March 15, 2018

    Political Issues leading up to the Primary Elections Dominate Legislative Action, Majority Democrats Continue to Advance Fake Work Comp Reform

    Gun control, workplace harassment and the Quincy Veterans Home have dominated the General Assembly agenda to date as both chambers begin a three-week Easter break. Several insurance issues have advanced out of committee and many more await committee action when the General Assembly returns from the Easter break.

    Issues that have advanced out of committee include two misguided Work Comp reruns from last year that were vetoed by the Governor. HB 4595-Fine, creates a state-run Workers Compensation Company. SB 2863-Raoul, requires prior approval of rates by work comp companies in Illinois. Unlike last year where proponents and opponents were provided ample time to provide testimony, this year testimony was limited.

    Unfortunately, democratic majorities in both chambers continue to advance bills that will add costs to the system and not address the true cost drivers such as causation, indemnity benefits and medical fees. It is likely that both bills will be sent to the Governor and he will veto them like he did last year.

    Legislation creating a 20% tax on investment services has again been reintroduced but has not advanced out of committee.  HB 4293-Welch, imposes a privilege tax on partnerships and S corporations engaged in the business of conducting investment management services. Provides that the tax shall be imposed at the rate of 20% of the fees calculated by reference to the performance of the investment portfolio funds and not from the investment itself.

    Several bills have been introduced affecting health insurance and benefits. HB 4165-Harris, would prohibit the state from applying for any federal waiver that would reduce or eliminate any protection or coverage required under the Affordable Care Act that was in effect on January 1, 2017. HB 4165 has advanced out of committee. Representative Harris has also reintroduced legislation that would impose a 1% assessment on all claims paid by a health insurer or a third-party administrator. HB 4165-Harris, has not received a hearing in committee to date.

    Legislation mandating coverage or expanding coverage for Mental and Emotional Disorders-HB 68-Lang, HB 5464-Feigenholtz, Hearing Aids-HB 4116-Fine, Fertility Preservation-HB 2617-Gabel, Neurofibromatosis HB 4577-Hoffman and Hippotherapy (horse riding) SB 2316-Murphy are all under active consideration.

    Legislation introduced on behalf of our Agent Broker Coalition, SB 2513-Hastings, would create an Education Advisory Council within the Department of Insurance and would also allow webinars, in addition to classroom, as an acceptable method of the three hour continuing education ethics requirement for insurance producers is scheduled to receive a hearing in the Insurance Committee when the General Assembly returns from the break.

    SB 3451-Munoz, would create the Insurance Industry Innovation Act. An initiative of the Department of Insurance SB 3451 provides that a covered entity (any entity regulated by the department) may submit a petition to the Department to request to enter into an enforceable compliance agreement. Provides that the Director of Insurance shall complete a review of the petition and notify the covered entity of the Department's determination. Provides the specific factors the Department shall use in determining whether or not to approve a petition. Provides the specific requirements of an enforceable compliance agreement. Provides that the Department shall submit an annual report to the General Assembly beginning July 1, 2019 regarding the aggregate impact of enforceable compliance agreements. Provides that the Department shall establish the cost of each petition. Provides that the Director may adopt rules as necessary to implement the Act. Provides that the Act shall be repealed on January 1, 2024.

    Primary Election Next Tuesday

    Rooting for Adam Solano in the 62nd
    Adam Solano, NAIFA IL Past President is locked in a tight republican primary race in the north suburban 62nd. The winner will take on democratic incumbent Sam Yingling in the fall. IFAPAC, IIAPAC and IAMICPAC have all contributed to Adam’s campaign and many members have provided support and assistance.

    Take it to the House – Todd Henricks
    Next Tuesday is the Primary Election and we will be watching closely the returns in the 111th Illinois House District. IIA of Illinois Past President Todd Henricks is running in the republican primary against two other opponents. IFAPAC, IIAPAC, IIA of Illinois and many members have contributed significant resources to assist Todd’s campaign. While it is difficult to accurately poll a House primary race, it is telling that Todd’s opponents have recently released negative ads on him. This almost always indicates that the recipient of negative advertising is making big strides in the race. Thanks to the many members who have contributed and participated in Todd’s campaign.

    Results of these and all contested races will be reported next week.