Sen. William R. Haine

Filed: 3/1/2012

 

 


 

 


 
09700SB2877sam001LRB097 16448 RPM 66447 a

1
AMENDMENT TO SENATE BILL 2877

2    AMENDMENT NO. ______. Amend Senate Bill 2877 as follows:
 
3on page 1, line 8, by replacing "131.24," with "131.23, 131.24,
4131.26,"; and
 
5on page 1, line 9, by replacing "and 131.20c," with "131.20c,
6131.29, and 131.30,"; and
 
7on page 3, by replacing lines 7 and 8 with the following:
8"company action level as set forth in Article IIA of this Code
9or would cause the company to be in hazardous financial
10condition as set forth in Article XII 1/2 of this Code."; and
 
11on page 10, line 16, by replacing "131.12a 131.12" with
12"131.12"; and
 
13on page 13, line 24, by replacing "(a) (Blank)." with "(a)";

 

 

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1and
 
2on page 14, line 5, by replacing "(b) (Blank)." with "(b)"; and
 
3on page 14, line 18, after "fairness", by inserting "of the
4proposal"; and
 
5on page 16, line 3, by replacing "it shall" with "the person
6will"; and
 
7on page 16, line 4, by replacing "131.20c" with "131.14b"; and
 
8on page 16, line 6, by replacing "An" with "Beginning July 1,
92013, an"; and
 
10on page 16, line 11, by replacing "insurer" with "company"; and
 
11on page 17, line 20, by replacing "After the change of control"
12with "after the After change of control,"; and
 
13on page 18, line 1, by replacing "be to not substantially" with
14"be not substantially to"; and
 
15on page 18, line 2, by replacing "not" with "not"; and
 
16on page 19, line 3, after "would", by inserting "not"; and
 

 

 

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1on page 19, line 16, by replacing "30 60" with "60"; and
 
2on page 19, line 22, by replacing "securityholders" with
3"shareholders securityholders"; and
 
4on page 20, line 22, by replacing "insurers" with "companies";
5and
 
6on page 20, line 23, by replacing "hearing," with "hearing";
7and
 
8on page 22, line 2, by replacing "thereto" with "thereto"; and
 
9on page 22, line 21, by replacing "insurers" with "companies
10insurers"; and
 
11on page 23, line 8, by replacing "involved insurer" with
12"involved company insurer"; and
 
13on page 23, line 8, by replacing "an insurer" with "a company
14an insurer"; and
 
15on page 23, line 14, by replacing "an insurer" with "a company
16an insurer"; and
 

 

 

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1on page 24, line 1, by replacing "insurer's" with "company's
2insurer's"; and
 
3on page 24, lines 20 and 24, by replacing "insurers" each time
4it appears with "companies insurers"; and
 
5on page 25, line 4, by replacing "insurers" with "companies
6insurers"; and
 
7on page 25, line 10, by replacing "an insurer" with "a company
8an insurer"; and
 
9on page 25, line 11, by replacing "insurer" with "company
10insurer"; and
 
11on page 25, line 14, by replacing "insurer's" with "company's
12insurer's"; and
 
13on page 27, line 7, by replacing "insurer" with "company
14insurer"; and
 
15on page 27, lines 13 and 17, by replacing "insurers" each time
16it appears with "companies insurers"; and
 
17on page 27, line 19, by replacing "Insurer" each time it
18appears with "Company Insurer"; and
 

 

 

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1on page 28, line 1, by replacing "Insurer" each time it appears
2with "Company Insurer"; and
 
3on page 28, lines 7 and 10, by replacing "insurers" each time
4it appears with "companies insurers"; and
 
5on page 28, line 14, by replacing "insurer" with "company
6insurer"; and
 
7on page 28, line 15, by replacing "Insurer" with "Company
8Insurer"; and
 
9on page 28, lines 18 and 23, by replacing "insurers" each time
10it appears with "companies insurers"; and
 
11on page 29, lines 2 and 3, by replacing "insurers" each time it
12appears with "companies insurers"; and
 
13on page 29, line 5, by replacing "insurer's" with "company's
14insurer's"; and
 
15on page 29, line 22, by replacing "insurers" with "companies
16insurers"; and
 
17on page 31, lines 5 and 10, by replacing "insurer" each time it

 

 

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1appears with "company insurer"; and
 
2on page 32, line 17, by replacing "insurer" with "company
3insurer"; and
 
4on page 35, line 12, by replacing "affiliate" with "controlling
5affiliate"; and
 
6on page 36, lines 4 and 5, by deleting "is responsible for
7and"; and
 
8on page 38, line 3, by replacing "5" with "15 5"; and
 
9on page 38, line 18, by replacing "statement" with "statement,
10any summary of changes to a registration statement, or any
11Enterprise Risk Filing"; and
 
12on page 42, line 11, by replacing "insurer" with "company
13insurer"; and
 
14on page 46, lines 5 and 6, by replacing "an insurer" with "a
15company an insurer"; and
 
16on page 46, lines 7 and 9, by replacing "insurer" each time it
17appears with "company insurer"; and
 

 

 

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1on page 46, line 12, by replacing "reinsurance allocation" with
2"all reinsurance allocation"; and
 
3on page 46, line 14, by replacing "cost-sharing" with "all
4cost-sharing"; and
 
5on page 46, line 17, by replacing "insurer" with "company"; and
 
6on page 46, line 21, by replacing "insurer's" with "company's";
7and
 
8on page 46, line 25, by replacing "(v);" with "(v)."; and
 
9on page 47, lines 1 and 2, by replacing "insurer" each time it
10appears with "company"; and
 
11on page 47, line 3, by replacing "insurer's" with "company's";
12and
 
13on page 47, line 14, by replacing "insurer's" with "company's
14insurer's"; and
 
15on page 47, line 24, by replacing "an insurer" with "a company
16an insurer"; and
 
17on page 48, line 3, by replacing "insurer" with "company

 

 

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1insurer"; and
 
2on page 48, line 7, by replacing "insurer's" with "company's
3insurer's"; and
 
4on page 49, lines 1, 10, and 12, by replacing "insurer" each
5time it appears with "company insurer"; and
 
6on page 50, line 16, by replacing "insurers" with "companies
7insurers"; and
 
8on page 50, lines 17, 18, 20, and 24, by replacing "insurer"
9each time it appears with "company insurer"; and
 
10on page 51, lines 8, 9, and 11, by replacing "insurer" each
11time it appears with "company insurer"; and
 
12on page 54, line 9; by replacing "insurer" with "company"; and
 
13on page 54, line 13, by replacing "companies," with "companies
14in accordance with Section 131.21 of this Code,"; and
 
15on page 54, line 17, by replacing "agreements" with "agreements
16in accordance with Section 131.22 of this Code"; and
 
17on page 55, line 5, by replacing "insurer" with "company"; and
 

 

 

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1on page 60, lines 13 and 17, by replacing "an insurer" each
2time it appears with "a company"; and
 
3on page 60, line 20, by replacing "insurer" with "company"; and
 
4on page 62, immediately below line 10, by inserting the
5following:
 
6    "(215 ILCS 5/131.23)  (from Ch. 73, par. 743.23)
7    Sec. 131.23. Injunctions; prohibitions against voting
8securities; sequestration of voting securities. (1) Whenever
9it appears to the Director that any company or any director,
10officer, employee or agent thereof has committed or is about to
11commit a violation of this Article or of any rule, regulation,
12or order issued by the Director hereunder, the Director may
13apply to the Circuit Court for the county in which the
14principal office of the company is located or to the Circuit
15Court for Sangamon County for an order enjoining the company or
16the director, officer, employee or agent thereof from violating
17or continuing to violate this Article or any rule, regulation
18or order, and for any other equitable relief as the nature of
19the case and the interests of the company's policyholders,
20creditors or the public may require. In any proceeding, the
21validity of the rule, regulation or order alleged to have been
22violated may be determined by the Court.

 

 

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1    (2) No security which is the subject of any agreement or
2arrangement regarding acquisition, or which is acquired or to
3be acquired, in contravention of this Article or of any rule,
4regulation or order issued by the Director hereunder may be
5voted at any shareholder's securityholders' meeting, or may be
6counted for quorum purposes, and any action of shareholder's
7securityholders' requiring the affirmative vote of a
8percentage of securities may be taken as though such securities
9were not issued and outstanding; but no action taken at any
10such meeting may be invalidated by the voting of such
11securities, unless the action would materially affect control
12of the company or unless any court of this State has so
13ordered. If the Director has reason to believe that any
14security of the company has been or is about to be acquired in
15contravention of this Article or of any rule, regulation or
16order issued by the Director hereunder the company or the
17Director may apply to the Circuit Court for Sangamon County or
18to the Circuit Court for the county in which the company has
19its principal place of business (a) to enjoin the further
20pursuit or use of any offer, request, invitation, agreement or
21acquisition made in contravention of Sections 131.4 through
22131.12 or any rule, regulation, or order issued by the Director
23thereunder; (b) to enjoin the voting of any security so
24acquired; (c) to void any vote of such security already cast at
25any meeting of shareholders securityholders; and (d) for any
26other equitable relief as the nature of the case and the

 

 

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1interests of the company's policyholders, creditors, or the
2public may require.
3    (3) In any case where a person has acquired or is proposing
4to acquire any voting securities in violation of this Article
5or any rule, regulation or order issued by the Director
6hereunder, the Circuit Court for Sangamon County or the Circuit
7Court for the county in which the company has its principal
8place of business may, on such notice as the court deems
9appropriate, upon the application of the company or the
10Director seize or sequester any voting securities of the
11company owned directly or indirectly by such person, and issue
12any orders with respect thereto as may be appropriate to
13effectuate this Article. Notwithstanding any other provisions
14of law, for the purposes of this Article, the situs of the
15ownership of the securities of domestic companies is deemed to
16be in this State.
17    (4) If the Director has reason to believe that any
18policyholders' proxies have been or are about to be acquired in
19contravention of this Article or of any rule, regulations or
20order issued by the Director hereunder, the Director may apply
21to the Circuit Court for Sangamon County or to the Circuit
22Court for the county in which the company has its principal
23place of business (a) to enjoin further pursuit or use of any
24offer, request, invitation, agreement or acquisition made in
25contravention of Section 131.4 through 131.12 and (b) for any
26other equitable relief as the nature of the case and the

 

 

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1interests of the company's policyholders, creditors or the
2public may require.
3(Source: P.A. 84-805.)"; and
 
4on page 64, line 19, by replacing "insurer" with "company"; and
 
5on page 64, by replacing line 22 with the following:
6"company under an order of supervision in accordance with
7Article XII 1/2 of this Code."; and
 
8on page 64, immediately below line 23, by inserting the
9following:
 
10    "(215 ILCS 5/131.26)  (from Ch. 73, par. 743.26)
11    Sec. 131.26. Revocation, suspension, or non-renewal of
12company's license.
13    Whenever it appears to the Director that any person has
14committed a violation of this Article which makes the continued
15operation of a company contrary to the interests of
16policyholders or the public, the Director may, after notice and
17hearing suspend, revoke or refuse to renew the company's
18license or authority to do business in this State for such a
19period as the Director he finds is required for the protection
20of policyholders or the public. Any such determination must be
21accompanied by specific findings of fact and conclusions of
22law.

 

 

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1(Source: P.A. 77-673.)"; and
 
2on page 65, immediately below line 21, by inserting the
3following:
 
4    "(215 ILCS 5/131.29 new)
5    Sec. 131.29. Rulemaking power. The Director may adopt such
6administrative rules as are necessary to implement the
7provisions of this Article.
 
8    (215 ILCS 5/131.30 new)
9    Sec. 131.30. Conflict with other laws. This Code supersedes
10all laws and parts of laws of this State inconsistent with this
11Code with respect to matters covered by this Code."; and
 
12on page 66, by replacing line 4 with the following:
13"1, 2013, except that Section 131.14b of the Illinois Insurance
14Code takes effect July 1, 2013.".