IL SB1729

Amends the Illinois Insurance Code to include fraternal benefit societies (licensed under Article XVII) in the risk-based capital (RBC) regulatory framework applicable to life, health, and life and health insurers.

Changes the threshold for company action level events for life, health, and life and health insurers and fraternal benefit societies from 2.5 times authorized control level RBC to 3.0 times authorized control level RBC when a negative trend is present.

Extends RBC reporting and compliance requirements to fraternal benefit societies, requiring them to submit RBC Reports by March 1 each year and comply with corrective action and control level event procedures.

Establishes a phase-in period for fraternal benefit societies for RBC Reports filed with respect to December 31, 2013 and 2014 annual statements, during which the Director takes limited regulatory action on company action level events.

Takes effect upon becoming law.