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Public Act 92-0099
HB0153 Enrolled LRB9201051JSpc
AN ACT to amend the Religious and Charitable Risk Pooling
Trust Act by changing Sections 2, 6, and 15.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Religious and Charitable Risk Pooling
Trust Act is amended by changing Sections 2, 6, and 15 as
follows:
(215 ILCS 150/2) (from Ch. 148, par. 202)
Sec. 2. Authorized organizations; purpose. Any number
of organizations which are all exempt from taxation under
paragraph (3) subsection 3 of subsection paragraph (c) of
Section 501 of the Internal Revenue Code of 1954 as amended
or as it may be amended hereafter are authorized to establish
and become beneficiaries of a trust fund for the purpose of:
(1) providing protection for themselves against the risk of
financial loss due to damage, destruction or loss to property
or the imposition of legal liability; or (2) providing
protection for their employees or full-time students, but not
dependents, against the risk of financial loss due to
accident, sickness, or disablement. Any of such
organizations' affiliated title holding corporations that are
exempt from taxation under paragraph (2) of subsection (c) of
Section 501 of the Internal Revenue Code of 1954, as amended
or as it may be amended hereafter, are authorized to
establish or become beneficiaries of a trust for the purpose
of providing protection for themselves against the risk of
financial loss due to damage, destruction, or loss to
property or the imposition of legal liability.
A hospital or long-term care facility owned and operated
by a tax exempt unit of local government and such unit of
local government, in relation to and to the extent of its
liabilities arising from the ownership or operation of such
hospital or long-term care facility, may participate in the
establishment of and may become beneficiaries of a trust fund
established under this Act for the purpose of providing
protection against the risk of financial loss due to the
imposition of legal liability.
(Source: P.A. 88-364.)
(215 ILCS 150/6) (from Ch. 148, par. 206)
Sec. 6. Risk pools; risk retention groups.
(a) A trust fund may enter into written agreements with
other trust funds established under this Act whereby the
risks assumed by any such trust fund may be pooled and shared
with such other trust funds.
(b) A trust fund may enter into written agreements for
the purpose of assuming risks from (i) risk pools or risk
retention groups established or organized pursuant to the
laws of any other state exclusively to provide protections,
as described in this Act, to organizations which are exempt
from taxation under paragraph subsection (3) of subsection
paragraph (c) of Section 501 of the Internal Revenue Code, as
amended from time to time, and their affiliated title holding
corporations that are exempt from taxation under paragraph
(2) of subsection (c) of Section 501 of the Internal Revenue
Code of 1954, as amended from time to time, or (ii) insurance
companies with regard to protections, as described in this
Act, exclusively for organizations which are exempt from
taxation, as aforesaid. As a condition to such authority,
any trust fund so assuming risk from any risk pool, risk
retention group or insurance company, shall, directly or
through an underwriting manager controlled by it, underwrite
risks assumed by it either on a facultative basis or on a
primary basis pursuant to an underwriting management
agreement with the entity from which risk is being assumed.
Such underwriting management agreement shall provide for
underwriting risks assumed on behalf of both the ceding
entity and the assuming trust fund. For purposes of this
subsection (b), the term "underwrite" shall include, but not
be limited to, classification, selection and pricing of
risks.
(Source: P.A. 85-131; 85-329.)
(215 ILCS 150/15) (from Ch. 148, par. 215)
Sec. 15. Ineligible beneficiaries. A beneficiary is
ineligible (1) if it is not exempt from taxation under
paragraph (3) subsection 3 of subsection (c) paragraph (C) of
Section 501 of the Internal Revenue Code of 1954 as amended,
or an affiliate of a corporation exempt from taxation under
paragraph (3) of subsection (c) of Section 501 of the
Internal Revenue Code, as amended, and exempt from taxation
under paragraph (2) of subsection (c) of Section 501 of the
Internal Revenue Code of 1954, as amended, or tax exempt as a
unit of local government or as a hospital owned and operated
by a unit of local government or; (2) if a corporation, it is
not incorporated as a not-for-profit corporation; or; (3) if
a foreign or alien corporation, it no longer has a
Certificate of Authority issued by the Secretary of State.
(Source: P.A. 81-602.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 02, 2001.
Approved July 20, 2001.
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