State of Illinois
91st General Assembly
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Public Act 91-0593

SB778 Enrolled                                 LRB9106065JSpc

    AN ACT concerning Lloyds insurers, amending named Acts.

    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 Section 86 as follows:

    (215 ILCS 5/86) (from Ch. 73, par. 698)
    Sec. 86. Scope of Article.
    (1)  This  Article  applies  to  all   groups   including
incorporated   and   individual  unincorporated  underwriters
transacting an insurance business in this  State  through  an
attorney-in-fact under the name Lloyds or under a Lloyds plan
of   operation.     Groups  that  meet  the  requirements  of
subsection (3) are referred to in this Code as "Lloyds",  and
incorporated  and  individual unincorporated underwriters are
referred to as "underwriters".
    (2)  As used in  this  Code  "Domestic  Lloyds"  means  a
Lloyds having its home office in this State; "Foreign Lloyds"
means  a  Lloyds  having  its home office in any state of the
United States other than this State; and "Alien Lloyds" means
a Lloyds  having  its  home  office  or  principal  place  of
business in any country other than the United States.
    (3)  A  domestic Lloyds must: (i) be established pursuant
to a statute or written charter; (ii) provide for  governance
by  a board of directors or similar body; and (iii) establish
and monitor standards of solvency  of  its  underwriters.   A
foreign  or  alien  Lloyds must be subject to requirements of
its state or country of domicile.  Those requirements must be
substantially similar to those required of  domestic  Lloyds.
Domestic,  foreign,  and  alien  Lloyds  Lloyd's shall not be
subject to Section 144 of this Code.
    (4)  All  foreign  and  alien  entities  and  individuals
transacting an insurance business as  domestic,  foreign,  or
alien  Lloyds  shall notify the Director and the Secretary of
State  under  the  provisions  of  this  Article,  shall   be
regulated  exclusively  by  the  Director,  and  shall not be
required to  obtain  a  certificate  of  authority  from  the
Secretary of State pursuant to any other law of this State so
long as they solely transact business as a domestic, foreign,
or  alien  Lloyds.  Upon notification, the Secretary of State
may require submission of additional information to determine
whether  a  foreign  or  alien  individual   or   entity   is
transacting  business solely as a domestic, foreign, or alien
Lloyds.
(Source: P.A. 90-794, eff. 8-14-98.)

    Section 10.  The Business  Corporation  Act  of  1983  is
amended by changing Sections 13.05 and 14.05 as follows:

    (805 ILCS 5/13.05) (from Ch. 32, par. 13.05)
    Sec.  13.05.  Admission of foreign corporation. Except as
provided in Article V  of  the  Illinois  Insurance  Code,  a
foreign corporation organized for profit, before it transacts
business  in  this  State,  shall  procure  a  certificate of
authority so to do from the Secretary  of  State.  A  foreign
corporation  organized  for  profit,  upon complying with the
provisions of this Act, may  secure  from  the  Secretary  of
State a certificate of authority to transact business in this
State,  but  no  foreign  corporation  shall  be  entitled to
procure a certificate of authority under this Act to  act  as
trustee,  executor,  administrator, administrator to collect,
or guardian, or in any other like fiduciary capacity in  this
State  or  to transact in this State the business of banking,
insurance, suretyship, or a business of the  character  of  a
building  and  loan  corporation;  provided,  however, that a
foreign corporation may obtain  a  certificate  of  authority
under this Act for the purpose of carrying on the business of
a  syndicate  or limited syndicate under Article V-1/2 of the
Illinois Insurance Code or for the  purpose  of  carrying  on
business  as  a  member of a group including incorporated and
individual unincorporated underwriters under Article V of the
Illinois  Insurance  Code.  A  foreign  professional  service
corporation may secure a certificate of authority to transact
business in this State  from  the  Secretary  of  State  upon
complying with this Act and demonstrating compliance with the
Act regulating the professional service to be rendered by the
professional   service   corporation.   However,  no  foreign
professional  service  corporation   shall   be   granted   a
certificate   of   authority  unless  it  complies  with  the
requirements of  the  Professional  Service  Corporation  Act
concerning   ownership  and  control  by  specified  licensed
professionals.  These professionals must be licensed  in  the
state  of domicile or this State. A foreign corporation shall
not be denied a certificate of authority  by  reason  of  the
fact  that the laws of the state under which such corporation
is organized governing its organization and internal  affairs
differ  from  the laws of this State, and nothing in this Act
contained shall be  construed  to  authorize  this  State  to
regulate  the  organization  or  the internal affairs of such
corporation.
(Source: P.A. 90-424, eff. 1-1-98.)

    (805 ILCS 5/14.05) (from Ch. 32, par. 14.05)
    Sec.  14.05.   Annual  report  of  domestic  or   foreign
corporation.  Each  domestic  corporation organized under any
general law or special act  of  this  State  authorizing  the
corporation   to   issue   shares,   other   than   homestead
associations,  building  and  loan  associations,  banks  and
insurance  companies  (which  includes a syndicate or limited
syndicate regulated under  Article  V  1/2  of  the  Illinois
Insurance Code or member of a group of underwriters regulated
under  Article  V of that Code), and each foreign corporation
(except members of a group of  underwriters  regulated  under
Article  V  of  the  Illinois  Insurance  Code) authorized to
transact business in this State, shall file, within the  time
prescribed by this Act, an annual report setting forth:
         (a)  The name of the corporation.
         (b)  The  address,  including  street and number, or
    rural route number, of  its  registered  office  in  this
    State,  and  the  name  of  its  registered agent at that
    address.
         (c)  The address, including street  and  number,  or
    rural route number, of its principal office.
         (d)  The names and respective residential addresses,
    including  street  and  number, or rural route number, of
    its directors and officers.
         (e)  A statement of the aggregate number  of  shares
    which the corporation has authority to issue, itemized by
    classes and series, if any, within a class.
         (f)  A  statement  of the aggregate number of issued
    shares, itemized by classes, and series, if any, within a
    class.
         (g)  A  statement,  expressed  in  dollars,  of  the
    amount of paid-in capital of the corporation  as  defined
    in this Act.
         (h)  Either a statement that (1) all the property of
    the  corporation  is located in this State and all of its
    business is transacted at or from places of  business  in
    this  State,  or the corporation elects to pay the annual
    franchise tax on the basis of its entire paid-in capital,
    or (2) a statement, expressed in dollars, of the value of
    all the  property  owned  by  the  corporation,  wherever
    located,  and  the  value  of the property located within
    this State, and a statement, expressed in dollars, of the
    gross amount of business transacted  by  the  corporation
    and   the   gross   amount   thereof  transacted  by  the
    corporation at or from places of business in  this  State
    as  of  the  close  of  its fiscal year on or immediately
    preceding the last day of the third month  prior  to  the
    anniversary  month  or in the case of a corporation which
    has established an extended filing month, as of the close
    of its fiscal year on or immediately preceding  the  last
    day  of  the  third  month  prior  to the extended filing
    month; however, in the case  of  a  domestic  corporation
    that  has  not  completed  its  first  fiscal  year,  the
    statement  with  respect to property owned shall be as of
    the last day of the third month preceding the anniversary
    month  and  the  statement  with  respect   to   business
    transacted  shall be furnished for the period between the
    date of incorporation and the last day of the third month
    preceding the  anniversary  month.   In  the  case  of  a
    foreign  corporation  that  has  not  been  authorized to
    transact business in this State for a period of 12 months
    and has  not  commenced  transacting  business  prior  to
    obtaining  a certificate of authority, the statement with
    respect to property owned shall be as of the last day  of
    the  third  month preceding the anniversary month and the
    statement with respect to business  transacted  shall  be
    furnished   for  the  period  between  the  date  of  its
    authorization to transact business in this State and  the
    last  day  of  the  third month preceding the anniversary
    month. If  the  data  referenced  in  item  (2)  of  this
    subsection  is  not completed, the franchise tax provided
    for in this Act shall be computed on  the  basis  of  the
    entire paid-in capital.
         (i)  A  statement,  including the basis therefor, of
    status as a "minority owned business"  or  as  a  "female
    owned  business"  as  those  terms  are  defined  in  the
    Minority and Female Business Enterprise Act.
         (j)  Additional  information  as may be necessary or
    appropriate in order to enable the Secretary of State  to
    administer  this  Act  and to verify the proper amount of
    fees and franchise taxes payable by the corporation.
    The annual report shall be made on forms  prescribed  and
furnished  by  the  Secretary  of  State, and the information
therein  required  by  paragraphs  (a)  through   (d),   both
inclusive,  of this Section, shall be given as of the date of
the execution  of  the  annual  report  and  the  information
therein  required  by  paragraphs  (e),  (f)  and (g) of this
Section shall be given as of the last day of the third  month
preceding  the anniversary month, except that the information
required by paragraphs (e), (f) and (g) shall, in the case of
a corporation which has established an extended filing month,
be given in its  final  transition  annual  report  and  each
subsequent  annual  report as of the close of its fiscal year
immediately preceding its extended filing month. It shall  be
executed   by   the   corporation   by   its   president,   a
vice-president,  secretary, assistant secretary, treasurer or
other officer duly authorized by the board  of  directors  of
the corporation to execute those reports, and verified by him
or  her, or, if the corporation is in the hands of a receiver
or trustee, it shall be executed on behalf of the corporation
and verified by the receiver or trustee.
(Source: P.A. 88-151; 88-691, eff. 1-24-95.)

    Section 15.  The Limited Liability Company Act is amended
by changing Sections 1-25 and 45-5 as follows:

    (805 ILCS 180/1-25)
    Sec. 1-25.   Nature  of  business.  A  limited  liability
company  may  be  formed  for  any lawful purpose or business
except:
         (1)  banking, exclusive of fiduciaries organized for
    the purpose of accepting and executing trusts;
         (2)  insurance unless, for the purpose  of  carrying
    on business as a member of a group including incorporated
    and  individual unincorporated underwriters, the Director
    of Insurance finds that the group meets the  requirements
    of subsection (3) of Section 86 of the Illinois Insurance
    Code  and the limited liability company, if insolvent, is
    subject to liquidation by the Director of Insurance under
    Article XIII of the Illinois Insurance Code carried on as
    a business of a  syndicate  or  limited  syndicate  under
    Article V 1/2 of the Illinois Insurance Code;
         (3)  the   practice  of  dentistry  unless  all  the
    members and managers are licensed as dentists  under  the
    Illinois Dental Practice Act; or
         (4)  the practice of medicine unless all the members
    and  managers are licensed to practice medicine under the
    Medical Practice Act of 1987.
(Source: P.A. 89-201, eff. 1-1-96; 90-424, eff. 1-1-98.)

    (805 ILCS 180/45-5)
    Sec. 45-5.  Admission to transact business.
    (a)  Except as provided in  Article  V  of  the  Illinois
Insurance  Code, before transacting business in this State, a
foreign limited liability company shall be admitted to do  so
by  the  Secretary  of  State.   In  order  to be admitted, a
foreign limited liability company shall submit to the  Office
of  the  Secretary  of  State an application for admission to
transact business as  a  foreign  limited  liability  company
setting forth all of the following:
         (1)  The  name  of  the  foreign  limited  liability
    company  and,  if  different,  the  name  under  which it
    proposes to transact business in this State.
         (2)  The jurisdiction, date of  its  formation,  and
    period of duration.
         (3)  A  certificate  stating  that the company is in
    existence under the laws of the jurisdiction  wherein  it
    is  organized  executed by the Secretary of State of that
    jurisdiction or by some  other  official  that  may  have
    custody  of  the  records pertaining to limited liability
    companies (or affidavit from an appropriate  official  of
    the  jurisdiction that good standing certificates are not
    issued or other evidence of existence which the Secretary
    of State shall deem appropriate).
         (4)  The name and business address of  the  proposed
    registered  agent  in  this State, which registered agent
    shall be an individual resident of this State, a domestic
    corporation, or a foreign corporation having a  place  of
    business  in,  and  authorized  to  do  business in, this
    State; if the registered  agent  is  a  corporation,  the
    corporation   must  be  authorized  by  its  articles  of
    incorporation to act as a registered agent.
         (5)  The  address  of  the  office  required  to  be
    maintained in the jurisdiction of its organization by the
    laws of that jurisdiction or, if not so required, of  the
    principal  place  of  business  of  the  foreign  limited
    liability company.
         (6)  The  purpose  or  purposes  for  which  it  was
    organized  and  the purpose or purposes which it proposes
    to conduct in the transaction of business in this State.
         (7)  A  statement  whether  the  limited   liability
    company  is  managed  by a manager or managers or whether
    management of the limited liability company is vested  in
    the members.
         (8)  A  statement  that  the  Secretary  of State is
    appointed the agent  of  the  foreign  limited  liability
    company  for  service  of process under the circumstances
    set forth in subsection (b) of Section 1-50.
         (9)  All  additional   information   that   may   be
    necessary or appropriate in order to enable the Secretary
    of  State  to  determine  whether  the  limited liability
    company is entitled to transact business in this State.
    (b)  No foreign limited liability company shall  transact
in  this  State any business that a limited liability company
formed under the laws of  this  State  is  not  permitted  to
transact.   A  foreign  limited liability company admitted to
transact business in this State  shall,  until  admission  is
revoked  as  provided  in  this  Act,  enjoy the same, but no
greater, rights and privileges as a limited liability company
formed under the laws of this State.
    (c)  The acceptance and  filing  by  the  Office  of  the
Secretary  of  State of a foreign limited liability company's
application shall admit the foreign limited liability company
to transact business in the State.
(Source: P.A. 90-424, eff. 1-1-98.)

    Section 20.  The Revised Uniform Limited Partnership  Act
is amended by changing Sections 105 and 902 as follows:

    (805 ILCS 210/105) (from Ch. 106 1/2, par. 151-6)
    Sec. 105.  Nature of Business.  A limited partnership may
carry  on  any  business  that  a partnership without limited
partners may  carry  on  except  banking,  the  operation  of
railroads, and insurance unless carried on as a business of a
syndicate  or  limited  syndicate authorized and regulated by
the Director of Insurance under Article V 1/2 of the Illinois
Insurance Code or for the purpose of carrying on business  as
a  member  of  a  group including incorporated and individual
unincorporated underwriters when the  Director  of  Insurance
finds that the group meets the requirements of subsection (3)
of  Section 86 of the Illinois Insurance Code and the limited
partnership, if insolvent, is subject to liquidation  by  the
Director  of  Insurance  under  Article  XIII of the Illinois
Insurance Code.
(Source: P.A. 84-1412.)

    (805 ILCS 210/902) (from Ch. 106 1/2, par. 159-2)
    Sec. 902.  Admission to Transact Business.
    (a)  Except as provided in  Article  V  of  the  Illinois
Insurance  Code, before transacting business in this State, a
foreign limited partnership shall be admitted to do so by the
Secretary of State.  In  order  to  be  admitted,  a  foreign
limited  partnership  shall  submit  to  the  office  of  the
Secretary  of  State an application for admission to transact
business as a foreign limited partnership setting forth:
    (1)  the name of the foreign limited partnership;
    (2)  the jurisdiction and date of  its  formation  and  a
statement   that   it   is  validly  existing  as  a  limited
partnership under the laws of that  jurisdiction  as  of  the
date of filing;
    (3)  the  name  and  business  address  of  each  general
partner;
    (4)  the name and address of the registered agent and the
registered  office    the  foreign  limited  partnership  has
appointed  or  does  appoint; the agent must be an individual
resident of this State, a domestic corporation, or a  foreign
corporation  having a place of business in, and authorized to
do business in this State; if the agent is a corporation, the
corporation  must  be   authorized   by   its   articles   of
incorporation to act as such agent;
    (5)  a statement that the Secretary of State is appointed
the  agent  of the foreign limited partnership for service of
process under the circumstances set forth in  Section  909(b)
of this Act;
    (6)  the address of the office at which is kept a list of
the  names and business addresses of the limited partners and
their capital contributions, together with an undertaking  by
the  foreign  limited partnership to keep those records until
the foreign limited partnership's registration in this  State
is cancelled or withdrawn;
    (7)  the  latest  date upon which the limited partnership
is to be dissolved  in  the  jurisdiction  in  which  it  was
formed; and
    (8)  any  other  information the Secretary of State shall
by rule deem necessary to administer this Act.
    (b)  No foreign limited  partnership  shall  transact  in
this  State  any  business which a limited partnership formed
under the laws of this State is not permitted to transact.  A
foreign  limited  partnership  which  shall  be  admitted  to
transact business in this State shall, until a certificate of
cancellation shall have been issued as provided in this  Act,
enjoy  the  same,  but no greater, rights and privileges as a
domestic limited partnership.
    (c)  The acceptance and  filing  by  the  Office  of  the
Secretary  of  State  of  a foreign partnership's application
shall admit such  foreign  limited  partnership  to  transact
business in the State.
(Source: P.A. 85-403.)

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

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