Division of Insurance refuses to release information; Brady to appeal         

[MARCH 18, 2005]  SPRINGFIELD -- The Illinois Division of Insurance has refused to release information requested by state Sen. Bill Brady, R-Bloomington, about recent actions he thinks are discrediting the state's insurance industry.

The 44th District senator says he will appeal that decision.

"Recent actions by the Blagojevich administration are hurting the national reputation of the Illinois Division of Insurance -- an agency long regarded as number one in the nation," Brady said. "The governor took a year to appoint a permanent director. The agency has come close to losing its accreditation. We have some real concerns and need to know what is going on."

Brady submitted a request Feb. 2 under the Freedom of Information Act to obtain information about the Blagojevich administration's use of American Express Tax and Business Services, a competitor of some Illinois insurance companies, to gather information about the industry's compensation policies, and the use of outside legal counsel to examine brokerage activity. He also questioned the lack of information available to the public about the Division of Insurance's accreditation process, which has been called into question by the National Association of Insurance Commissioners during Blagojevich's administration.

Brady says he wants to determine if the Division of Insurance is properly performing its function as a watchdog for Illinois' insurance industry. Other states, like New York, are currently targeting abuses in the insurance industry.

"The Division of Insurance is the watchdog group for fraudulent activities, but despite the fact that Gov. Blagojevich raised fees on the insurance industry by an estimated $20 million in FY 2004, the division's budget has been cut by more than $8.6 million -- and those funds diverted to GRF -- and the agency's head count is down by nearly 70 employees," Brady said. "This does not engender the confidence that this agency can protect the insurance industry from the kinds of unscrupulous practices that are currently being investigated in other states."

Brady says he will work with state Sen. Bill Haine, D-Alton, chairman of the Senate Insurance Committee, to hold public hearings on these issues around the state, but he first needs information he requested from the Division of Insurance.

"The public deserves answers to these questions because any potential for fraud affects them and the kind of insurance they buy and the prices they pay. The insurance industry in Illinois is one of the largest white-collar employers statewide and contributes millions to the state's tax base each year," Brady said. "An industry of this magnitude deserves the kind of oversight that will protect it and its consumers from fraudulent activity."

[News release from Sen. Bill Brady]

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