Nationwide General Insurance Co. v. Shapo

SUPREME COURT CASES

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State: Illinois

Court: 4th District Appellate

Docket No: 4-01-0524 Rel

Case Date: 04/10/2002

NO. 4-01-0524

IN THE APPELLATE COURT

OF ILLINOIS

FOURTH DISTRICT

NATIONWIDE GENERAL INSURANCE COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR5)
NATHANIEL S. SHAPO, Director of the
Illinois Department of Insurance; ROB-
ERT ENOEX, Chief Counsel of the Illi-
nois Department of Insurance; and THE
ILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
NATIONWIDE MUTUAL FIRE INSURANCE
COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR6)
NATHANIEL S. SHAPO, Director of the
Illinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
NATIONWIDE PROPERTY AND CASUALTY
INSURANCE COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR7)
NATHANIEL S. SHAPO, Director of the
Illinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
NATIONWIDE LIFE INSURANCE COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR8)
NATHANIEL S. SHAPO, Director of the
Illinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                     and
NATIONWIDE MUTUAL INSURANCE COMPANY,
                     Plaintiff-Appellant,
                     v. (00MR9)
NATHANIEL S. SHAPO, Director of the
Illinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the IllinoisDepartment of Insurance; and THE ILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                     and
NATIONAL CASUALTY COMPANY,
                     Plaintiff-Appellant,
                     v. (00MR10)
NATHANIEL S. SHAPO, Director of the Illinois Department of Insurance; ROBERTENOEX, Chief Counsel of the Illinois Department of Insurance; and THE ILLINOISDEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                    and
COLONIAL LIFE AND ACCIDENT INSURANCE COMPANY; COMMERCIAL LIFE INSURANCE COMPANY;PAUL REVERE LIFE INSURANCE COMPANY; PAUL REVERE PROTECTIVE LIFE INSURANCECOMPANY; PAUL REVERE VARIABLE ANNUITY INSURANCE COMPANY; PROVIDENT LIFE ANDACCIDENT INSURANCE COMPANY; and UNUM LIFE INSURANCE COMPANY OF AMERICA,
                     Plaintiffs-Appellants,
                     v. (00MR11)
NATHANIEL S. SHAPO, Director of the Illinois Department of Insurance; ROBERTENOEX, Chief Counsel of the Illinois Department of Insurance; and THE ILLINOISDEPARTMENT OFINSURANCE,
                      Defendants-Appellees,
                      and
AMERICAN FAMILY MUTUAL INSURANCE COMPANY and AMERICAN STANDARD INSURANCE COMPANYOF WISCONSIN,
                      Plaintiffs-Appellants,
                      v. (00MR12)
NATHANIEL S. SHAPO, Director of the Illinois Department of Insurance; ROBERTENOEX, Chief Counsel of the Illinois Department of Insurance; and THE ILLINOISDEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
CHARTER OAK FIRE INSURANCE COMPANY;
                      Plaintiffs-Appellants,
                      v. (00MR129)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
PRINCIPAL LIFE INSURANCE COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR166)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
CONNECTICUT GENERAL LIFE INSURANCECOMPANY and LIFE INSURANCE COMPANY OFNORTH AMERICA,
                      Plaintiffs-Appellants,
                      v. (00MR506)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
PRIMERICA LIFE INSURANCE COMPANY andGULF INSURANCE COMPANY,
                      Plaintiffs-Appellants,
                      v. (00MR566)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
LAKE STATES INSURANCE COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR584)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROB-
                      and
AETNA LIFE INSURANCE AND ANNUITY COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR592)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
AETNA LIFE INSURANCE COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR593)
NATHANIEL S. SHAPO, Director of the
Illinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
HARTFORD FIRE INSURANCE COMPANY; HARTFORD ACCIDENT AND INDEMNITY COMPANY;HARTFORD CASUALTY COMPANY; HARTFORDUNDERWRITERS INSURANCE COMPANY; TWINCITY FIRE INSURANCE COMPANY; HARTFORDINSURANCE COMPANY OF THE MIDWEST;HARTFORD LIFE INSURANCE COMPANY; HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY; and ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY,
                      Plaintiffs-Appellants,
                      v. (00MR594)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
FARMERS INSURANCE EXCHANGE;MID-CENTURY INSURANCE COMPANY; andTRUCK INSURANCE EXCHANGE,
                      Plaintiffs-Appellants,
                      v. (00MR597)
NATHANIEL S. SHAPO, Director of the
                      Defendants-Appellees,
                      and
AMERICAN FIRE AND CASUALTY COMPANY;THE AUTOMOBILE INSURANCE COMPANY OFHARTFORD; THE CHARTER OAK FIRE INSURANCE COMPANY; FAIRMONT INSURANCE COMPANY; FARMINGTON CASUALTY COMPANY;FIRST NATIONAL INSURANCE COMPANY OFAMERICA; GENERAL INSURANCE COMPANY OFAMERICA; THE OHIO CASUALTY INSURANCECOMPANY; OHIO SECURITY INSURANCE COMPANY; THE PHOENIX INSURANCE COMPANY;PRINCIPAL LIFE INSURANCE COMPANY; RELIANCE INSURANCE COMPANY; RELIANCENATIONAL INDEMNITY COMPANY; RELIANCENATIONAL INSURANCE COMPANY; SAFECOINSURANCE COMPANY OF AMERICA; SAFECONATIONAL INSURANCE COMPANY; TIG COUNTRYWIDE INSURANCE COMPANY; TIG INDEMNITY COMPANY; TIG INSURANCE COMPANY;TIG INSURANCE COMPANY OF MICHIGAN; TIGINSURANCE COMPANY OF AMERICA; TIG PREMIER INSURANCE COMPANY; TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA;TRAVELERS CASUALTY AND SURETY COMPANY;TRAVELERS CASUALTY AND SURETY COMPANYOF CONNECTICUT; TRAVELERS COMMERCIALINSURANCE COMPANY; THE TRAVELERS HOMEAND MARINE INSURANCE COMPANY; THETRAVELERS INDEMNITY COMPANY OFCONNECTICUT; THE TRAVELERS INDEMNITYCOMPANY; THE TRAVELERS INSURANCECOMPANY; THE TRAVELERS LIFE ANDANNUITY COMPANY; UNITED PACIFICINSURANCE COMPANY; UNITED WISCONSINLIFE INSURANCE COMPANY; and WESTAMERICAN INSURANCE COMPANY,
                      Plaintiffs-Appellants,
                      v. (00MR598)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance;ROBERT ENOEX, Chief Counsel of theIllinois Department of Insurance; andTHE ILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
FEDERAL INSURANCE COMPANY and THE
Illinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
AMERICAN CASUALTY COMPANY OF READING,PA.; AMERICAN FAMILY LIFE INSURANCECOMPANY; AMERICAN FIRE AND CASUALTYCOMPANY; ATHENA ASSURANCE COMPANY;BOSTON OLD COLONY INSURANCE COMPANY;THE BUCKEYE UNION INSURANCE COMPANY;COLUMBUS LIFE INSURANCE COMPANY; COMMERCIAL INSURANCE COMPANY OF NEWARK,N.J.; THE CONTINENTAL INSURANCE COMPANY; FAIRMONT INSURANCE COMPANY;FARMERS INSURANCE EXCHANGE; THEFIDELITY AND CASUALTY COMPANY OF NEWYORK; FIDELITY AND GUARANTY INSURANCECOMPANY; FIDELITY AND GUARANTYINSURANCE UNDERWRITERS, INC.;FIREMEN'S INSURANCE COMPANY OF NEWARK, N.J.; FIRST NATIONAL INSURANCECOMPANY OF AMERICA; GENERAL INSURANCECOMPANY OF AMERICA; THE GLENS FALLSINSURANCE COMPANY; KANSAS CITY FIREAND MARINE INSURANCE COMPANY; THEMAYFLOWER INSURANCE COMPANY, LTD.;MID-CENTURY INSURANCE COMPANY; MIDWESTSECURITY LIFE INSURANCE COMPANY;NATIONAL FIRE INSURANCE COMPANY OFHARTFORD; NIAGARA FIRE INSURANCECOMPANY; THE OHIO CASUALTY INSURANCECOMPANY; SAFECO INSURANCE COMPANY OFAMERICA; SAFECO NATIONAL INSURANCECOMPANY; SEABOARD SURETY COMPANY; ST.PAUL FIRE AND MARINE INSURANCECOMPANY; ST. PAUL MERCURY INSURANCECOMPANY; ST. PAUL GUARDIAN INSURANCECOMPANY; ST. PAUL MEDICAL LIABILITYINSURANCE COMPANY; TIG COUNTRYWIDEINSURANCE COMPANY; TIG INDEMNITYCOMPANY; TIG INSURANCE COMPANY; TIGINSURANCE COMPANY OF MICHIGAN; TIGINSURANCE CORPORATION OF AMERICA; TIGPREMIER INSURANCE COMPANY;TRANSCONTINENTAL INSURANCE COMPANY;
COMPANY; and THE WESTERN AND SOUTHERNLIFE INSURANCE COMPANY,
                      Plaintiffs-Appellants,
                      v. (00MR852)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
GOVERNMENT EMPLOYEES INSURANCE COMPANY; GEICO GENERAL INSURANCE COMPANY;GEICO CASUALTY COMPANY; and GEICO INDEMNITY COMPANY,
                      Plaintiffs-Appellants,
                      v. (01MR23)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                      Defendants-Appellees,
                      and
AETNA LIFE INSURANCE COMPANY,
                      Plaintiff-Appellant,
                      v. (00MR826)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                     and
AETNA LIFE INSURANCE AND ANNUITY COMPANY,
                     Plaintiff-Appellant,
                     v. (00MR827)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                     and
AMERICAN FAMILY LIFE INSURANCE COMPANY,
ROBERT ENOEX, Chief Counsel of theIllinois Department of Insurance; andTHE ILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                     and
THE LAFAYETTE LIFE INSURANCE COMPANY;OHIO NATIONAL LIFE ASSURANCE CORPORATION; THE OHIO NATIONAL LIFE INSURANCECOMPANY; STATE AUTO MUTUAL INSURANCECOMPANY; and STATE AUTO PROPERTY ANDCASUALTY INSURANCE COMPANY,
                     Plaintiffs-Appellants,
                     v. (01MR182)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                     and
AGRICULTURAL INSURANCE COMPANY; AMERICAN ALLIANCE INSURANCE COMPANY; AMERICAN NATIONAL FIRE INSURANCE COMPANY;AMERICAN PREMIER INSURANCE COMPANY;AMERICAN SPIRIT INSURANCE COMPANY;ATLANTA SPECIALTY INSURANCE COMPANY;EAGLE AMERICAN INSURANCE COMPANY;FARMERS INSURANCE EXCHANGE; GREATAMERICAN INSURANCE COMPANY; HARTFORDACCIDENT AND INDEMNITY COMPANY; HARTFORD CASUALTY INSURANCE COMPANY; HARTFORD FIRE INSURANCE COMPANY; HARTFORDINSURANCE COMPANY OF THE MIDWEST;HARTFORD LIFE AND ACCIDENT INSURANCECOMPANY; HARTFORD LIFE INSURANCE COMPANY; HARTFORD UNDERWRITERS INSURANCECOMPANY; INFINITY INSURANCE COMPANY;ITT HARTFORD LIFE AND ANNUITY INSURANCE COMPANY; MID-CENTURY INSURANCECOMPANY; MID-CONTINENT CASUALTY COMPANY; TRUMBULL INSURANCE COMPANY; TWINCITY FIRE INSURANCE COMPANY; and WINDSOR INSURANCE COMPANY,
                     Plaintiffs-Appellants,
                     v. (01MR82)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illi-
                     and
EMPLOYERS INSURANCE OF WAUSAU, A MUTUAL COMPANY, a Wisconsin Corporation,
                     Plaintiff-Appellant,
                     v. (01MR204)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                     and
WAUSAU UNDERWRITERS INSURANCE COMPANY,a Wisconsin Corporation,
                    Plaintiff-Appellant,
                    v. (01MR203)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees,
                     and
WAUSAU BUSINESS INSURANCE COMPANY, aWisconsin Corporation,
                     Plaintiff-Appellant,
                     v. (01MR202)
NATHANIEL S. SHAPO, Director of theIllinois Department of Insurance; ROBERT ENOEX, Chief Counsel of the Illinois Department of Insurance; and THEILLINOIS DEPARTMENT OF INSURANCE,
                     Defendants-Appellees.

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Appeal from
Circuit Court of
Sangamon County
Nos. 00MR5
         00MR6
         00MR7
         00MR8
         00MR9
         00MR10
         00MR11
         00MR12
         00MR129
         00MR166
         00MR506
         00MR566
         00MR584
         00MR592
         00MR593
         00MR594
         00MR597
         00MR598
         00MR690
         00MR826
         00MR827
         00MR852
         01MR23
         01MR82
         01MR180
         01MR182
         01MR202
         01MR203
         01MR204

Honorable
Thomas R. Appleton,
Judge Presiding.

JUSTICE KNECHT delivered the opinion of the court:

Plaintiffs, foreign insurance companies, appeal the May2001 order of the Sangamon County circuit court dismissing theirconsolidated complaints for administrative review, which plaintiffs filed after defendants,the Illinois Department of Insurance (Department), Nathaniel S. Shapo, Director of the Department(Director), and Robert Enoex, chief counsel of the Department,notified them the Director has no statutory authority to authorize refunds of privilege taxes plaintiffs paid. We affirm.

I. BACKGROUND

Plaintiffs are all insurance or surety companiesincorporated under the laws of states other than Illinois. Asforeign companies, they were subject to an annual tax of 2% ofnet taxable premium income, which was imposed by section 409 ofthe Illinois Insurance Code (Insurance Code) (215 ILCS 5/409(West 1996)) for the privilege of doing business in Illinois(privilege tax). Foreign companies may also be required to payadditional tax if the laws of their state impose greater taxes onIllinois companies doing business in their state (retaliatorytax). 215 ILCS 5/444, 444.1 (West 1996).

In Milwaukee Safeguard Insurance Co. v. Selcke, 179Ill. 2d 94, 104-05, 688 N.E.2d 68, 73 (1997), the Supreme Courtof Illinois held section 409 of the Insurance Code (215 ILCS5/409 (West 1996)) violated the uniformity clause of the IllinoisConstitution (Ill. Const. 1970, art. IX,