103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2773

 

Introduced 1/17/2024, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/532  from Ch. 73, par. 1065.82
215 ILCS 5/538.7  from Ch. 73, par. 1065.88-7

    Amends the Illinois Insurance Guaranty Fund Article of the Illinois Insurance Code. In provisions authorizing the Illinois Insurance Guaranty Fund to 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 of Insurance in her or his capacity as a receiver and specifying a purpose of the Article, deletes language providing that those provisions are inoperative 5 years after August 16, 2021 (the effective date of Public Act 102-396). Effective immediately.


LRB103 35531 RPS 65603 b

 

 

A BILL FOR

 

SB2773LRB103 35531 RPS 65603 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Sections 532 and 538.7 as follows:
 
6    (215 ILCS 5/532)  (from Ch. 73, par. 1065.82)
7    Sec. 532. Purpose.
8    (a) The purpose of this Article is to provide a mechanism
9for the payment of covered claims under certain insurance
10policies, to avoid excessive delay in payment of covered
11claims, to avoid financial loss to claimants or policyholders
12because of the entry of an Order of Liquidation against an
13insolvent company, including through services offered to the
14Director in her or his capacity as receiver under Article XIII
15of this Code that relate to covered claims, to provide a Fund
16to assess among member companies the costs of such protection
17and maintain the continuity and self-sufficient operation of
18the Fund, and to offset the costs associated with maintaining
19the Fund's continuity and self-sufficient operations when
20practical by providing assistance and services to the Director
21in her or his capacity as receiver under Article XIII of this
22Code as described in this Section.
23    (b) The purpose of this Article is also to provide a

 

 

SB2773- 2 -LRB103 35531 RPS 65603 b

1mechanism for the Fund to participate in and facilitate the
2process by which the assets of an insolvent company are
3marshaled and distributed pursuant to Article XIII of this
4Code beyond reimbursing the cost of covered claims. This
5subsection (b) is inoperative 5 years after the effective date
6of this amendatory Act of the 102nd General Assembly.
7(Source: P.A. 102-396, eff. 8-16-21.)
 
8    (215 ILCS 5/538.7)  (from Ch. 73, par. 1065.88-7)
9    Sec. 538.7. (a) The Fund may perform such other acts as are
10necessary or proper to effectuate the purposes of this
11Article.
12    (b) The Fund may contract with the Office of Special
13Deputy Receiver or any other person or organizations
14authorized by law to carry out the duties of the Director in
15her or his capacity as a receiver under Article XIII of this
16Code. The power of the Fund to contract with these persons or
17entities includes, but is not limited to, providing consulting
18services and claims administration services that assist with
19these persons or entities in the performance of their
20respective statutory and legal functions provided by law. The
21Fund may only exercise the authority to contract pursuant to
22this subsection upon the board of director's written
23determination that the provisioning of such services will
24advance the purposes set forth in Section 532. Any contract
25the Fund may enter into to provide services pursuant to this

 

 

SB2773- 3 -LRB103 35531 RPS 65603 b

1subsection shall be subordinate and subject to the Fund's
2statutory obligations to timely pay covered claims and avoid
3financial loss to claimants or policyholders described in this
4Article.
5    This subsection (b) is inoperative 5 years after the
6effective date of this amendatory Act of the 102nd General
7Assembly.
8(Source: P.A. 102-396, eff. 8-16-21.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.