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92nd General Assembly

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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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