SB1412 Summary

• Amendment to the Freedom of Information Act adds Section 7.5(y) exempting information from disclosure under Section 129.8 of the Illinois Insurance Code, making ORSA summary reports confidential and not subject to FOIA requests.

• Creates new Article VIII 1/4 in the Illinois Insurance Code establishing the Risk Management and Own Risk and Solvency Assessment (ORSA) Law requiring insurers to maintain risk management frameworks and conduct annual ORSA assessments.

• Requires insurers domiciled in Illinois to submit ORSA summary reports to the Director upon request, with first filings due in 2015, containing assessment of material risks and capital sufficiency comparable to the NAIC ORSA Guidance Manual.

• Exempts insurers with less than $500,000,000 in annual direct written and unaffiliated assumed premium, and insurance groups with less than $1,000,000,000 in such premium, from ORSA requirements unless the Director requires otherwise based on unique circumstances or financial condition indicators.

• Designates ORSA summary reports and related documents as confidential, proprietary trade secrets not subject to FOIA, subpoena, or discovery in private civil actions, with penalties of $200 per day for late filing after notice and hearing.