Illinois General Assembly - Full Text of Public Act 102-0396
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Public Act 102-0396


 

Public Act 0396 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0396
 
HB2405 EnrolledLRB102 10311 BMS 15638 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Insurance Code is amended by
changing Sections 532, 538, and 538.7 as follows:
 
    (215 ILCS 5/532)  (from Ch. 73, par. 1065.82)
    Sec. 532. Purpose.
    (a) The purpose of this Article is to provide a mechanism
for the payment of covered claims under certain insurance
policies, to avoid excessive delay in payment of covered
claims, to avoid financial loss to claimants or policyholders
because of the entry of an Order of Liquidation against an
insolvent company, including through services offered to the
Director in her or his capacity as receiver under Article XIII
of this Code that relate to covered claims, and to provide a
Fund to assess among member companies the costs cost of such
protection and maintain the continuity and self-sufficient
operation of the Fund, and to offset the costs associated with
maintaining the Fund's continuity and self-sufficient
operations when practical by providing assistance and services
to the Director in her or his capacity as receiver under
Article XIII of this Code as described in this Section among
member companies.
    (b) The purpose of this Article is also to provide a
mechanism for the Fund to participate in and facilitate the
process by which the assets of an insolvent company are
marshaled and distributed pursuant to Article XIII of this
Code beyond reimbursing the cost of covered claims. This
subsection (b) is inoperative 5 years after the effective date
of this amendatory Act of the 102nd General Assembly.
(Source: P.A. 85-576.)
 
    (215 ILCS 5/538)  (from Ch. 73, par. 1065.88)
    Sec. 538. Powers of the Fund. The Fund shall have the
powers enumerated in the Sections following this Section and
preceding Section 539 538.1 through 538.8.
(Source: P.A. 77-305.)
 
    (215 ILCS 5/538.7)  (from Ch. 73, par. 1065.88-7)
    Sec. 538.7. (a) The Fund may perform such other acts as are
necessary or proper to effectuate the purposes of this
Article.
    (b) The Fund may contract with the Office of Special
Deputy Receiver or any other person or organizations
authorized by law to carry out the duties of the Director in
her or his capacity as a receiver under Article XIII of this
Code. The power of the Fund to contract with these persons or
entities includes, but is not limited to, providing consulting
services and claims administration services that assist with
these persons or entities in the performance of their
respective statutory and legal functions provided by law. The
Fund may only exercise the authority to contract pursuant to
this subsection upon the board of director's written
determination that the provisioning of such services will
advance the purposes set forth in Section 532. Any contract
the Fund may enter into to provide services pursuant to this
subsection shall be subordinate and subject to the Fund's
statutory obligations to timely pay covered claims and avoid
financial loss to claimants or policyholders described in this
Article.
    This subsection (b) is inoperative 5 years after the
effective date of this amendatory Act of the 102nd General
Assembly.
(Source: P.A. 82-210.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/16/2021