SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Fun with money

Monday, Apr 14, 2014

* Crain’s

Andrew Boron, director of the Illinois Department of Insurance, is pushing legislation that would provide $5 million to a new state corporation chaired by Mr. Boron to recruit out-of-state insurers. The money would be siphoned from the fees insurers and insurance brokers pay to fund the state’s regulation of them.

He wants to replicate the success the department had in wooing EquiTrust Life Insurance Co. from suburban Des Moines, Iowa, which is a national hub for life insurers. […]

The $5 million to lure insurers from other states accounts for about 10 percent of the $52 million the Insurance Department receives annually from insurers and brokers.

So, the plan is to take insurance company fee money and use that cash to lure competing insurance companies to Illinois?

I suppose I can see the logic in this, but has anyone thought of just lowering the insurance fees by 10 percent?

- Posted by Rich Miller        

  1. - Chicago Cynic - Monday, Apr 14, 14 @ 11:00 am:

    Rich, Rich, Rich, please don’t bring common sense into this.

  2. - so... - Monday, Apr 14, 14 @ 11:02 am:

    Can’t grow the state payroll if you just lower the insurance fees.

  3. - RonOglesby - Monday, Apr 14, 14 @ 11:07 am:

    I suppose I can see the logic in this, but has anyone thought of just lowering the insurance fees by 10 percent?

    HAHAHAHAHA… Rich, you kill me!

  4. - Liberty First - Monday, Apr 14, 14 @ 11:09 am:

    Bureaucrats can’t seem to tell the difference between the role of govt as the regulator of business to assure a free market and interference in a free market.

  5. - wordslinger - Monday, Apr 14, 14 @ 11:09 am:

    Little empire-building going on.

    Please, not another state-giveaway fund to “lure” business.

  6. - RonOglesby - Monday, Apr 14, 14 @ 11:15 am:

    When I saw the Fun With Money headline I thought rich would have a note on the ISP and all those new (year old) trooper cars sitting without electronics.

    But this one was just as good.

  7. - OneMan - Monday, Apr 14, 14 @ 11:21 am:

    Another example of how your ‘regulation fee’ as it were gets used for other stuff..

    Years ago they took some of the money that nurses pay for their licenses (full disclosure, my wife had three different nursing related licenses she paid fees for) and were going to use it for nursing scholarships to try and reduce the ‘nursing shortage’

    Well besides the whole idea of using a fee paid by a workforce to create more job competition with that workforce stuck me as a bit odd, it also didn’t seem to be a good use of the fees in general.

    In this case, anyone want speculate how long until there some sort of insurance company scandal and how the regulator will say they were underfunded and that’s why didn’t catch it.

  8. - Pete - Monday, Apr 14, 14 @ 11:21 am:

    Lowering the fees would be giving away all the power that Boron is working so hard to get.

  9. - Arizona Bob - Monday, Apr 14, 14 @ 11:26 am:

    All they need to do is give a press release to industry publications that we’re encouraging insurers to come here.

    Question: How exactly would they be spending that $5 million? Spend $50K on a administrative assistant, $200K for a “director” and spend the rest on a politically connected Board of Directors, agents and lobbyists?

  10. - April Fool - Monday, Apr 14, 14 @ 11:26 am:

    The Department of Insurance is just a shill for the insurance industry. There is very little meaningful regulation that goes on there. There’s a reason why many former securities reps (including barred ones)decide to make a living in insurance.

  11. - April Fool - Monday, Apr 14, 14 @ 11:38 am:

    ” In this case, anyone want speculate how long until there some sort of insurance company scandal and how the regulator will say they were underfunded and that’s why didn’t catch it.”

    The Department of Insurance is definitely not underfunded. Between their two regulatory funds they have almost 100 mil in the bank - all subject to appropriation of course. I believe most of their funding comes from fees of insurers and producers rather than general revenue funds.

  12. - circularfiringsquad - Monday, Apr 14, 14 @ 12:02 pm:

    IL does not set rates…that is the “plan” from All State, State Farm, Horace Mann, etc. etc.

    Give the young man his money. The bigs won’t let any one in

  13. - A guy... - Monday, Apr 14, 14 @ 12:04 pm:

    ====”Andrew Boron, director of the Illinois Department of Insurance, is pushing legislation that would provide $5 million to a new state corporation chaired by Mr. Boron….”====

    Is there a single reason to read beyond this point to know bad policy is coming down the pike?

  14. - Jack - Monday, Apr 14, 14 @ 12:18 pm:

    This is wrong on so many levels. Using a fee for doing business in Illinois to attract competitors is just wrong. Those funds should be used to increase oversight of the insurance industry as intended or the fee reduced.

  15. - 4 percent - Monday, Apr 14, 14 @ 2:19 pm:

    Illinois almost lost their national certification a few years back and was only saved because Mautino stepped in. DoI was not spending on examiners and we would have lost reciprocity.

  16. - Robert the Bruce - Monday, Apr 14, 14 @ 2:37 pm:

    ==Please, not another state-giveaway fund to “lure” business.==
    Yeah, and that’s just step one.

    Step two is to give tax breaks to the insurance companies we already have - you know, the companies with CEOs who just bought multimillion dollar homes here and send their kids to private school here.

  17. - The Captain - Monday, Apr 14, 14 @ 2:45 pm:

    Rich if this is your idea of fun with money I’m here to tell you that you’re doing it wrong.

  18. - wordslinger - Monday, Apr 14, 14 @ 2:58 pm:

    Robert the Bruce, I’m with you.

    The corporations get tax breaks; the politicians get to issue multi-million-dollar press releases for “creating jobs.” Insidious relationship, worth nothing to taxpayers.

    It’s a scam all over.

    We could all learn a little something from ADM and the ludicrous Caterpillar “scare” about moving out.

    U-Haul? Too early.

    By the way, how’s JJ, the crocodile deal poster boy for moving out of Illinois? Last I heard, he was an Illinois Romney delegate to the GOP convention.

    That hq still in Champaign? Thought it was a done deal that it was gone.

  19. - Anon-MCMLVII - Monday, Apr 14, 14 @ 3:29 pm:

    April Fool: Aren’t you a lower-taxes, less government person? And you’re calling for *more* regulation from the agency? If my premise is wrong, I apologize.

  20. - South of 64 - Monday, Apr 14, 14 @ 6:40 pm:

    Andrew Boron, enough said. Agree with A Guy.

  21. - South of 64 - Monday, Apr 14, 14 @ 6:47 pm:

    Isn’t State Farm moving a tremendous number of jobs to Dallas, Phoenix and Atlanta already? Check the numbers.
    A brilliant idea to increase their fees even more.

Sorry, comments for this post are now closed.

* Lower ratings for ABC 7 debate
* Question of the day
* Bloomberg to spend $1.9 million on Dold
* Stand down... mostly
* BLS: A strong couple of months
* *** UPDATED x1 *** SUBSCRIBERS ONLY - Fundraising reports by targeted legislative districts
* Rate Sheila Simon's new TV ad
* Poe set to begin transplant process, faces "extended" recovery
* Rauner runs new TV ad touting newspaper endorsements
* *** UPDATED x2 - "Comical" - "No interest" *** Despite shout-outs, Neely says she and Rauner haven't talked
* Grimm on 150 - Minimum wage battles in other states - The return of "Matt the Welder" - Rauner on "right to work"
* A bevy of new congressional TV ads
* Quinn tax hike dodge count: 4
* SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs, cable TV buys, ads
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Today's number: 165
* A grand good morning to you all!
* Yesterday's blog posts

Visit our advertisers...






Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

        * On The Heels Of Apple Pay, Jumio Launches A Card-Scanning Mobile Checkout Product For Retailers’ iOS And Android Apps
        * Buyer's Guide Deals: Discounts on the Original iPad Air and iPad Mini 2
        * Eye SW update for T-Mobile HTC One M8 rolling out tomorrow
        * Civilization: Beyond Earth coming to Mac, Linux this holiday season
        * Oppo N3 teased again with exploded camera pic
        * New Music Deals App for Windows Phone Launches Today
        * Blunt + Tile tag = no more lost umbrellas

        * LG G Watch Receives Android Wear Update That Adds Offline Music Support
        * How Do You Use Your Breaks Productively?
        * Got a New Follower? Twitter Now Makes It Easier to Follow Back.
        * Ask Mythbusters' Adam Savage Anything You Want
        * Which Frameworks Should Web Developers Use?
        * T-Mobile Opens Pre-Orders For iPad Air 2 And iPad Mini 3 Tomorrow
        * Sapphire Supplier GT Advanced Nears Deal Over Apple Secrecy

        * Reading Room: A wild card of a World Series
        * Following same path as '59 White Sox, KC eyes title
        * larry's Offseason Plan
        * Abreu wins Sporting News' AL Rookie of the Year honors
        * Jose Abreau wins the Sporting News AL Rookie of the Year
        * Jose Abreu wins the Sporting News AL Rookie of the Year
        * Lost in Isolation: A White Sox fan abroad.

        Main Menu
        Pundit rankings
        Subscriber Content
        Blagojevich Trial
        Updated Posts

        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005


        RSS Feed 2.0
        Comments RSS 2.0


        * Former President Clinton stumps for Quinn, Durb.....
        * Pat Quinn challenger: 'I can't be bought' - Was.....
        * Former President Bill Clinton to campaign for G.....

        * State: Jimmy John's founder owes taxes on planes
        * Former President Clinton stumps for Quinn, Durbin
        * VP Joe Biden to campaign for Schneider in Illinois
        * Springfield VA clinic grapples with short staffing
        * Ebola causing spike in demand for hospital gear
        * Illinois' top educator: Funding problems to remain
        * Funeral set for basketball coach Wayne McClain
        * USDA: Illinois corn, soybean harvests slogs along
        * Illinois governor candidates spar on finance, jobs
        * Democrats love seeing minimum wage on the ballot

        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes
        * Election 2014: Learn about all the candidates
        * What to watch for in third governor debate tonight
        * U of I sees turning point as election nears
        * Chicago Sun-Times endorses Rauner for governor
        * Sun-Times, Belleville, Champaign, Peoria newspapers endorse Rauner for governor
        * Bill Clinton to address workers at pro-Quinn rally
        * Body camera use concerns Illinois police officers
        * Illinois unemployment rate falls again, to 6.6 percent

        * O'Hare now a hub for screening travelers from Ebola hot spots
        * McDonald's to expand build-your-own burger concept
        * How the latest jobs report helps and hurts Quinn and Rauner
        * Jimmy John's founder owes taxes on planes, state says
        * Introducing a 3-D carving machine quiet enough for your home office

        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85
        * Dr. Lawrence Solomon: Renowned dermatologist, book collector loved a mystery
        * Emanuel’s cable tax hike to cost average consumer $28.80 a year
        * Fix pot law conflicts so industry can grow
        * Chicago Public Schools to sell headquarters for $28 million
        * Cardinal George’s advice to Archbishop Cupich: ‘Spend a lot of time listening’
        * Convicted sex offender in custody after 7 bodies found in NW Indiana
        * Fioretti tries to put heat on Emanuel over short yellow lights
        * Neely’s pre-election resignation deja vu of how she got her start
        * Scholar’s take on bishops’ synod: ‘Amazing days if you’re a Catholic’

        * Bill Clinton campaigns with Quinn on Southwest Side
        * Feds: Suspect in Indiana slayings could have victims in other states
        * Regional jet makes emergency landing at DuPage County Airport
        * Jail guard, inmates charged in contraband smuggling
        * City treasurer dismisses Rauner job talk as 'kind of crazy'
        * U of I nurses reach tentative labor accord
        * Lake County Coroner searching for Hammond man's family
        * Flu season here; health officials urge vaccine
        * Man in critical condition after apparent battery at Bears tailgate party
        * 12 New Trier students sent to peer jury in sexting case

        * Jimmy Carter Brings Human Rights Mission To Jacksonville
        * Cheddar's Leaves Springfield WUIS-SJR Business Report
        * Area Cub Scouts Burned In Explosion
        * Notes On The Final Governor Debate
        * Task Force Hopes To Help Turn Students Into Good Citizens
        * Digging up the history of a Civil War camp on Chicago's South Side
        * Indiana suspect hints at more killings
        * Illinois' Medical Marijuana Program At Odds With Federal Policy
        * UIS Poverty Series Continues With "American Winter" Screening
        * Third & Final Governor Debate Tonight

        * Bill Clinton campaigns for Quinn, Durbin
        * Joanna McQuillan Weeks: Cheese balls deserve more respect
        * Our Opinion: White, Madigan for another term
        * Quinn, Rauner spar over jobs, taxes
        * Our Opinion: Say yes to Magro’s project
        * John Schick: Letter confirmed aggression toward bicyclists
        * Election 2014: Learn about all the candidates
        * U of I sees turning point as election nears
        * Our Opinion: Re-elect Durbin for another term in U.S. Senate
        * Bill Press: Do you trust your government on Ebola?

        * Fred Kroner's October 23 prep sports chat
        * Man pleads guilty in molestation case
        * Elks to sponsor free orthopedic clinic
        * Brookport man arrested for car burglary
        * Buggy crash claims horse's life
        * Arrest made in district fire
        * Construction begins on Q-C-Chicago rail route
        * Crimestoppers alert leads to charge
        * Oct. 23 basketball chat
        * Tuesday Oct. 21 government meetings

        * McHenry sheriff: Shooter ready to ‘finish off' wounded deputies
        * One American released from North Korea
        * Police retrace steps of suspected Indiana serial killer
        * More time needed in latest Lake County DNA case
        * USDA: Illinois corn, soybean harvests slog along

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Former President Clinton stumps for Quinn,......
        * Former President Clinton stumps for Quinn,......
        * Bill Clinton campaigns for Quinn, Durbin...
        * Bill Clinton campaigns for Quinn, Durbin...
        * Bill Clinton campaigns for Quinn, Durbin...

        * Obama Might Try To Circumvent Congress On ......
        * Senator Mark Kirk: Congress Will Not Suppo......

        * Judge Marianne Jackson elevated to full circuit judgeship
        * Call for Attorney General Madigan to investigate Illinois' early voting problems
        * Thorner: Cook County judge delays decision on Drury lawsuit until after election
        * Poll: 64% Say Things In America Are Completely ‘Out of Control’
        * Need money to grow cannabis? New financier enters Illinois market
        * Teachers union boosts Illinois millionaire tax hike effort with $250k
        * Polls show tightening race between Senger and Foster in the 11th CD
        * Obviously.
        * The Waukegan board is out to lunch.
        * Y Crane? Truss Me, Block 37 is Rising Again!

        * New TV Ad: Endorsed
        * Rauner Campaign Statement on Final Debate
        * What They’re Saying About Pat Quinn
        * What They’re Saying About Bruce Rauner
        * Illinois EPA Registration of Smaller Sources Program Hits Program Landmark - 3,000 Illinois Small Businesses Benefit from Permit Streamlining

            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller