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?