State of Illinois
91st General Assembly
Legislation

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91_HB1355eng

 
HB1355 Engrossed                               LRB9105071JStm

 1        AN  ACT  to amend the Illinois Insurance Code by changing
 2    Sections 107.15a and 107.29.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.  The  Illinois  Insurance  Code is amended by
 6    changing Sections 107.15a and 107.29 as follows:

 7        (215 ILCS 5/107.15a) (from Ch. 73, par. 719.15a)
 8        Sec. 107.15a.  Duties and powers of trustees.  The  Board
 9    of Trustees shall have such power as may be necessary for the
10    management   and   operations   of   the   Exchange  and  the
11    Association.  Such powers shall include but  not  be  limited
12    to:
13             (a)  establishment     of     the    qualifications,
14        requirements, limitations and obligations for syndicates,
15        limited syndicates, subscribers, and Exchange brokers;
16             (b)  denying access to the  Exchange  to  applicants
17        which  do not meet such qualifications, requirements, and
18        obligations;
19             (c)  imposing  penalties  on   syndicates,   limited
20        syndicates,   subscribers   and   Exchange   brokers  for
21        violations of the regulations of the Exchange  or  orders
22        of the Board;
23             (d)  assessing  fees annually on syndicates, limited
24        syndicates, subscribers and Exchange brokers, and  making
25        assessments   on   syndicates,   limited  syndicates  and
26        subscribers for the expenses of the Exchange;
27             (e)  suspending, in whole or in part, access to  the
28        Exchange  or  expelling  syndicates,  limited syndicates,
29        subscribers or Exchange brokers who do  not  continue  to
30        meet  the  qualifications,  requirements, and obligations
31        established by the Board,  who  fail  or  refuse  to  pay
 
HB1355 Engrossed            -2-                LRB9105071JStm
 1        penalties,  fees,  or  assessments  when  due,  or  whose
 2        continued   operation   the  Board  determines  would  be
 3        injurious  to  the  best  interests  of   the   Exchange,
 4        policyholders, claimants, or creditors;
 5             (f)  obtaining  immediate  access for the benefit of
 6        the Illinois Insurance Exchange Immediate Access Security
 7        Association to the following assets of  the  impaired  or
 8        insolvent syndicate:
 9                  (i)  the full amount held in its security trust
10             or custodial account; and
11                  (ii)  the assets of its subscribers under their
12             certificates of guaranty.
13    (Source: P.A. 88-45; 89-206, eff. 7-21-95.)

14        (215 ILCS 5/107.29)
15        Sec. 107.29.  Exchange operations runoff.
16        (a)  The  Board  may  adopt  a  plan of operation for the
17    orderly runoff of the operations of the exchange.   The  plan
18    of  operation  shall  provide  that  all funds, legal rights,
19    title to property, and  causes  of  action  of  the  Illinois
20    Insurance   Exchange  including,  but  not  limited  to,  all
21    assessments, subscription  payments,  proceeds,  investments,
22    premium  fees, surcharge receipts, and funds maintained under
23    Sections 107.26 and 107.27 and the rules  or  regulations  of
24    the  Illinois  Insurance Exchange implementing those Sections
25    or any other provision of this Article,  shall  be  accounted
26    for  and  paid  over  to  the  Director  as  receiver  of any
27    delinquent syndicate in receivership after settlement of  all
28    claims against the exchange.
29             (1)  In the event that 2 or more syndicates are then
30        in  receivership,  the  amount  paid  over to each estate
31        shall be proportional to the relative size of the surplus
32        deficiency of each.
33             (2)  Any excess remaining after the payment  of  any
 
HB1355 Engrossed            -3-                LRB9105071JStm
 1        and all claims against such receivership estates shall be
 2        transferred,  in  equal shares, to the domestic companies
 3        which  result  from  the   reorganization,   merger,   or
 4        consolidation   of  former  syndicates  of  the  Illinois
 5        Insurance Exchange.
 6        (b)  For purposes of this Section,  "syndicate"  means  a
 7    syndicate or a limited syndicate.
 8    (Source: P.A. 90-499, eff. 8-19-97.)

 9        Section  99.  Effective date.  This Act takes effect upon
10    becoming law.

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