HB4367 EnrolledLRB103 35503 RPS 65574 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 Section 534.4 as follows:
6    (215 ILCS 5/534.4)  (from Ch. 73, par. 1065.84-4)
7    Sec. 534.4. "Insolvent company" means a company organized
8as a stock company, mutual company, reciprocal or Lloyds (a)
9which holds a certificate of authority to transact insurance
10in this State either at the time the policy was issued or when
11the insured event occurred, or any company which has assumed
12or has been allocated such policy obligation through merger,
13division, insurance business transfer, consolidation, or
14reinsurance, whether or not such assuming company held a
15certificate of authority to transact insurance in this State
16at the time such policy was issued or when the insured event
17occurred; and (b) against which a final Order of Liquidation
18with a finding of insolvency to which there is no further right
19of appeal has been entered by a court of competent
20jurisdiction in the company's State of domicile after the
21effective date of this Article. When a policy obligation is
22assumed or allocated through merger, division, insurance
23business transfer, consolidation, or reinsurance, nothing in



HB4367 Enrolled- 2 -LRB103 35503 RPS 65574 b

1this Section shall be construed to create Fund coverage if
2none existed at the time of assumption or allocation or to
3destroy Fund coverage if it existed at the time of assumption
4or allocation.
5(Source: P.A. 103-75, eff. 6-9-23.)
6    Section 99. Effective date. This Act takes effect upon
7becoming law.