(765 ILCS 605/12.1) (from Ch. 30, par. 312.1)
Sec. 12.1.
Insurance risk pooling trusts.
(a) This Section shall be known and may be cited as the
Condominium and Common Interest Community Risk Pooling Trust Act.
(b) The boards of managers or boards of directors,
as the case may be, of two or more condominium associations or common
interest community associations, are authorized to establish, with the unit
owners and the condominium or common interest community associations as the
beneficiaries thereof, a trust fund for the purpose of providing
protection of the participating condominium and common interest
community associations against the risk of financial loss due to damage to,
destruction of or loss of property, or the imposition of legal liability as
required or authorized under this Act or the declaration of the condominium
or common interest community association.
(c) The trust fund shall be established and amended only
by a written instrument which shall be filed with and approved
by the Director of Insurance prior to its becoming effective.
(d) No association shall be a beneficiary of
the trust fund unless it shall be incorporated under the laws of
this State.
(e) The trust fund is authorized to indemnify the condominium and
common interest community association beneficiaries thereof against the
risk of loss due to damage, destruction or loss to property or imposition
of legal liability as required or authorized under this Act or the
declaration of the condominium or common interest community association.
(f) Risks assumed by the trust fund may be pooled and shared
with other trust funds established under this Section.
(g) (Blank).
(h) (Blank).
(i) No trustee of the trust fund shall be paid a salary or receive
other compensation, except that the written trust instrument may
provide for reimbursement for actual expenses incurred on behalf of the
trust fund.
(j) (Blank).
(k) (Blank).
(l) (Blank).
(m) Each trust fund shall file annually
with the
Director of Insurance a full independently audited financial statement.
(n) (Blank).
(o) (Blank).
(p) (Blank).
(q) (Blank).
(r) (Blank).
(s) The Director of Insurance shall have with
respect to trust funds established under this Section the
powers of examination conferred upon him relative to
insurance companies by Section 132 of the
Illinois Insurance
Code.
(t) (Blank).
(u) (Blank).
(v) Trust funds established under and which fully comply with this Section
shall not be considered member insurance companies or to be in the business of
insurance nor shall the provision of Article XXXIV of the Illinois Insurance
Code apply to any such trust fund established under this Section.
(w) (Blank).
(x) The Director of Insurance shall adopt reasonable rules pertaining to
the standards of coverage and administration of trust funds authorized under
this Section.
(Source: P.A. 92-518, eff. 6-1-02.)
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