101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4451

 

Introduced 2/3/2020, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/537.9  from Ch. 73, par. 1065.87-9
215 ILCS 5/538  from Ch. 73, par. 1065.88
215 ILCS 5/538.2  from Ch. 73, par. 1065.88-2
215 ILCS 5/538.10 new

    Amends the Illinois Insurance Code. Authorizes the Illinois Insurance Guaranty Fund, at the direction of its board of directors and subject to the approval of the Director of Insurance, to form and own a not-for-profit corporation to which the Fund may delegate certain of its powers and duties provided by the Code. Allows the not-for-profit corporation to contract to provide services to the Office of Special Deputy Receiver or any other person or organization authorized by law to carry out the duties of the Director in the capacity of receiver under specified provisions of the Code, the Illinois Life and Health Insurance Guaranty Association, and organizations in another state similar to the Illinois Insurance Guaranty Fund or the Illinois Life and Health Insurance Guaranty Association. Effective immediately.


LRB101 19768 BMS 69278 b

 

 

A BILL FOR

 

HB4451LRB101 19768 BMS 69278 b

1    AN ACT concerning regulation.
 
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
5changing Sections 537.9, 538, and 538.2 and by adding Section
6538.10 as follows:
 
7    (215 ILCS 5/537.9)  (from Ch. 73, par. 1065.87-9)
8    Sec. 537.9. The Fund shall handle claims through its
9employees or through one or more companies or other persons
10employed as servicing facilities including a corporation
11formed pursuant to Section 538.10 of this Code.
12(Source: P.A. 85-576.)
 
13    (215 ILCS 5/538)  (from Ch. 73, par. 1065.88)
14    Sec. 538. Powers of the Fund.
15    The Fund shall have the powers enumerated in the Sections
16following this Section and preceding Section 539 538.1 through
17538.8.
18(Source: P.A. 77-305.)
 
19    (215 ILCS 5/538.2)  (from Ch. 73, par. 1065.88-2)
20    Sec. 538.2. The Fund may employ or retain such persons as
21are necessary to handle claims and perform other duties of the

 

 

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1Fund or may delegate such functions to a corporation formed
2pursuant to Section 538.10 of this Code.
3(Source: P.A. 77-305.)
 
4    (215 ILCS 5/538.10 new)
5    Sec. 538.10. Delegation of powers to not-for-profit
6corporation. The Fund may, at the direction of its board of
7directors and subject to the approval of the Director, form and
8own a not-for-profit corporation domiciled in this State to
9which the Fund may delegate in its plan of operation any or all
10powers and duties of the Fund, except those provided by
11Sections 537.6 and 538.3 of this Code. The not-for-profit
12corporation may contract to provide services to any or all of
13the following types of organizations: (a) the Office of Special
14Deputy Receiver or any other person or organization authorized
15by law to carry out the duties of the Director in the capacity
16as a receiver under Article XIII of this Code; (b) the Illinois
17Life and Health Insurance Guaranty Association; and (c)
18organizations in another state similar to the Fund or the
19Illinois Life and Health Insurance Guaranty Association. The
20not-for-profit corporation is authorized to contract pursuant
21to this Section upon the board of directors' written
22determination that the provisioning of such services will
23advance the purposes set forth in Section 532 of this Code,
24provided that any such contract with a similar organization
25described in item (c) of this Section shall be subject to the

 

 

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1prior approval of the Director.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.