HB4725 Summary

• Creates Article VIII 1/4 of the Illinois Insurance Code establishing requirements for risk management frameworks and Own Risk and Solvency Assessment (ORSA) for insurers domiciled in Illinois.

• Requires insurers to maintain risk management frameworks and conduct ORSA assessments at least annually or when significant changes occur to risk profiles, following NAIC guidance standards.

• Exempts insurers with less than $500 million in annual direct written and unaffiliated assumed premiums, and insurance groups with less than $1 billion in such premiums, though Director may require ORSA for certain troubled insurers.

• Establishes ORSA summary reports as confidential documents not subject to public disclosure, Freedom of Information Act requests, subpoena, or private civil discovery, with limited sharing authorized to state/federal regulators and NAIC.

• Imposes penalty of $200 per day for insurers failing to timely file required ORSA summary reports, with first filing deadline in 2015; takes effect July 1, 2015.