Illinois General Assembly - Full Text of SB3244
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Full Text of SB3244  100th General Assembly


Sen. John G. Mulroe

Filed: 3/9/2018





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2    AMENDMENT NO. ______. Amend Senate Bill 3244 on page 1,
3line 6, after "531.09," by inserting "531.10,"; and
4on page 28, line 4, by replacing "paragraph (3)" with
5"subsection (b) paragraph (3)"; and
6on page 34, line 18, by replacing "(l)" with "(m) (l)"; and
7on page 38, line 2, by replacing "(13)" with "(p) (13)"; and
8on page 42, line 12, by replacing "of subparagraph (ii)" with
9"of subparagraph (ii)"; and
10on page 45, immediately below line 14, by inserting the
12    "(215 ILCS 5/531.10)  (from Ch. 73, par. 1065.80-10)



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1    Sec. 531.10. Plan of Operation.)
2    (1)(a) The Association must submit to the Director a plan
3of operation and any amendments thereto necessary or suitable
4to assure the fair, reasonable, and equitable administration of
5the Association. The plan of operation and any amendments
6thereto become effective upon approval in writing by the
8    (b) If the Association fails to submit a suitable plan of
9operation within 180 days following the effective date of this
10Article or if at any time thereafter the Association fails to
11submit suitable amendments to the plan, the Director may, after
12notice and hearing, adopt and promulgate such reasonable rules
13as are necessary or advisable to effectuate the provisions of
14this Article. Such rules are in force until modified by the
15Director or superseded by a plan submitted by the Association
16and approved by the Director.
17    (2) All member insurers must comply with the plan of
19    (3) The plan of operation must, in addition to requirements
20enumerated elsewhere in this Article:
21        (a) Establish procedures for handling the assets of the
22    Association;
23        (b) Establish the amount and method of reimbursing
24    members of the board of directors under Section 531.07;
25        (c) Establish regular places and times for meetings of
26    the board of directors;



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1        (d) Establish procedures for records to be kept of all
2    financial transactions of the Association, its agents, and
3    the board of directors;
4        (e) Establish the procedures whereby selections for
5    the board of directors will be made and submitted to the
6    Director;
7        (f) Establish any additional procedures for
8    assessments under Section 531.09; and
9        (g) Contain additional provisions necessary or proper
10    for the execution of the powers and duties of the
11    Association.
12    (4) The plan of operation shall establish a procedure for
13protest by any member insurer of assessments made by the
14Association pursuant to Section 531.09. Such procedures shall
15require that:
16        (a) a member insurer that wishes to protest all or part
17    of an assessment shall pay when due the full amount of the
18    assessment as set forth in the notice provided by the
19    Association. The payment shall be available to meet
20    Association obligations during the pendency of the protest
21    or any subsequent appeal. Payment shall be accompanied by a
22    statement in writing that the payment is made under protest
23    and setting forth a brief statement of the grounds for the
24    protest;
25        (b) within 30 days following the payment of an
26    assessment under protest by any protesting member insurer,



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1    the Association must notify the member insurer in writing
2    of its determination with respect to the protest unless the
3    Association notifies the member that additional time is
4    required to resolve the issues raised by the protest;
5        (c) in the event the Association determines that the
6    protesting member insurer is entitled to a refund, such
7    refund shall be made within 30 days following the date upon
8    which the Association makes its determination;
9        (d) the decision of the Association with respect to a
10    protest may be appealed to the Director pursuant to Section
11    531.11(3);
12        (e) in the alternative to rendering a decision with
13    respect to any protest based on a question regarding the
14    assessment base, the Association may refer such protests to
15    the Director for final decision, with or without a
16    recommendation from the Association; and
17        (f) interest on any refund due a protesting member
18    insurer shall be paid at the rate actually earned by the
19    Association.
20    (5) The plan of operation may provide that any or all
21powers and duties of the Association, except those under
22paragraph (3) (c) of subsection (n) (10) of Section 531.08 and
23Section 531.09 are delegated to a corporation, association or
24other organization which performs or will perform functions
25similar to those of this Association, or its equivalent, in 2
26or more states. Such a corporation, association or organization



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1shall be reimbursed for any payments made on behalf of the
2Association and shall be paid for its performance of any
3function of the Association. A delegation under this subsection
4shall take effect only with the approval of both the Board of
5Directors and the Director, and may be made only to a
6corporation, association or organization which extends
7protection not substantially less favorable and effective than
8that provided by this Act.
9(Source: P.A. 96-1450, eff. 8-20-10.)"; and
10on page 51, line 13, by replacing "paragraph (8)" with
11"subsection (m) paragraph (8)".