SB2577 EngrossedLRB097 14508 RPM 59363 b

1    AN ACT concerning insurance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by adding
5Section 188.2 as follows:
 
6    (215 ILCS 5/188.2 new)
7    Sec. 188.2. Grounds for and provisions applicable to
8rehabilitation or liquidation of a domestic company that is a
9covered financial company under the federal Dodd-Frank Wall
10Street Reform and Consumer Protection Act.
11    (a) The provisions of this Section apply in accordance with
12Title II of the federal Dodd-Frank Wall Street Reform and
13Consumer Protection Act, P.L. 111-203, with respect to an
14insurance company that is a covered financial company, as that
15term is defined under 12 U.S.C. 5381.
16    (b) The Director may file a complaint for an order of
17rehabilitation or liquidation pursuant to Section 188 of this
18Code on any of the following grounds:
19        (1) upon a determination and notification given by the
20    Secretary of the Treasury of the United States (in
21    consultation with the President of the United States) that
22    the insurance company is a financial company satisfying the
23    requirements of 12 U.S.C. 5383(b), and the board of

 

 

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1    directors (or body performing similar functions) of the
2    insurance company acquiesces or consents to the
3    appointment of a receiver pursuant to 12 U.S.C.
4    5382(a)(l)(A)(i), with such consent to be considered as
5    consent to an order of rehabilitation or liquidation;
6        (2) upon an order of the United States District Court
7    for the District of Columbia under 12 U.S.C.
8    5382(a)(l)(A)(iv)(I) granting the petition of the
9    Secretary of the Treasury of the United States concerning
10    the insurance company under 12 U.S.C. 5382(a)(l)(A)(i); or
11        (3) a petition by the Secretary of the Treasury of the
12    United States concerning the insurance company is granted
13    by operation of law under 12 U.S.C. 5382(a)(l)(A)(v).
14    (c) Notwithstanding any other provision in this Article,
15this Code, or any other law, after notice to the insurance
16company, the receivership court may grant an order on the
17complaint for rehabilitation or liquidation within 24 hours
18after the filing of a complaint pursuant to this Section.
19    (d) If the receivership court does not make a determination
20on a complaint for rehabilitation or liquidation filed by the
21Director pursuant to this Section within 24 hours after its
22filing, then it shall be deemed granted by operation of law
23upon the expiration of the 24-hour period. At the time that an
24order is deemed granted under this Section, the provisions of
25Article XIII of this Code shall be deemed to be in effect, and
26the Director shall be deemed to be affirmed as receiver and

 

 

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1have all of the applicable powers provided by this Code,
2regardless of whether an order has been entered. The
3receivership court shall expeditiously enter an order of
4rehabilitation or liquidation that:
5        (1) is effective as of the date that it is deemed
6    granted by operation of law; and
7        (2) conforms to the provisions for rehabilitation or
8    liquidation contained in Article XIII of this Code, as
9    applicable.
10    (e) Any order of rehabilitation or liquidation made
11pursuant to this Section shall not be subject to any stay or
12injunction pending appeal.
13    (f) Nothing in this Section shall be construed to supersede
14or impair any other power or authority of the Director or the
15court under this Article or Code.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.