Full Text of SB2877 97th General Assembly
SB2877sam001 97TH GENERAL ASSEMBLY | Sen. William R. Haine Filed: 3/1/2012
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| 1 | | AMENDMENT TO SENATE BILL 2877
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2877 as follows: | 3 | | on page 1, line 8, by replacing "131.24," with "131.23, 131.24, | 4 | | 131.26,"; and | 5 | | on page 1, line 9, by replacing "and 131.20c," with "131.20c, | 6 | | 131.29, and 131.30,"; and | 7 | | on page 3, by replacing lines 7 and 8 with the following: | 8 | | " company action level as set forth in Article IIA of this Code | 9 | | or would cause the company to be in
hazardous financial | 10 | | condition as set forth in Article XII 1/2 of this Code. "; and
| 11 | | on page 10, line 16, by replacing " 131.12a 131.12 " with | 12 | | "131.12"; and
| 13 | | on page 13, line 24, by replacing "(a) (Blank). " with " (a) "; |
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| 1 | | and | 2 | | on page 14, line 5, by replacing "(b) (Blank). " with " (b) "; and | 3 | | on page 14, line 18, after " fairness ", by inserting " of the | 4 | | proposal "; and
| 5 | | on page 16, line 3, by replacing " it shall " with " the person | 6 | | will "; and
| 7 | | on page 16, line 4, by replacing " 131.20c " with " 131.14b "; and
| 8 | | on page 16, line 6, by replacing " An " with " Beginning July 1, | 9 | | 2013, an "; and
| 10 | | on page 16, line 11, by replacing " insurer " with " company "; and
| 11 | | on page 17, line 20, by replacing "After the change of control" | 12 | | with " after the After change of control , "; and
| 13 | | on page 18, line 1, by replacing " be to not substantially" with | 14 | | " be not substantially to "; and
| 15 | | on page 18, line 2, by replacing "not" with " not "; and
| 16 | | on page 19, line 3, after "would", by inserting " not "; and
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| 1 | | on page 19, line 16, by replacing " 30 60 " with "60"; and
| 2 | | on page 19, line 22, by replacing "securityholders" with | 3 | | " shareholders securityholders "; and
| 4 | | on page 20, line 22, by replacing " insurers " with " companies "; | 5 | | and
| 6 | | on page 20, line 23, by replacing " hearing, " with " hearing "; | 7 | | and
| 8 | | on page 22, line 2, by replacing "thereto" with " thereto "; and
| 9 | | on page 22, line 21, by replacing "insurers" with " companies | 10 | | insurers "; and
| 11 | | on page 23, line 8, by replacing "involved insurer" with | 12 | | "involved company insurer "; and
| 13 | | on page 23, line 8, by replacing "an insurer" with " a company | 14 | | an insurer "; and
| 15 | | on page 23, line 14, by replacing "an insurer" with " a company | 16 | | an insurer "; and
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| 1 | | on page 24, line 1, by replacing "insurer's" with " company's | 2 | | insurer's "; and
| 3 | | on page 24, lines 20 and 24, by replacing "insurers" each time | 4 | | it appears with " companies insurers "; and
| 5 | | on page 25, line 4, by replacing "insurers" with " companies | 6 | | insurers "; and
| 7 | | on page 25, line 10, by replacing "an insurer" with " a company | 8 | | an insurer "; and
| 9 | | on page 25, line 11, by replacing "insurer" with " company | 10 | | insurer "; and
| 11 | | on page 25, line 14, by replacing "insurer's" with " company's | 12 | | insurer's "; and
| 13 | | on page 27, line 7, by replacing "insurer" with " company | 14 | | insurer "; and
| 15 | | on page 27, lines 13 and 17, by replacing "insurers" each time | 16 | | it appears with " companies insurers "; and
| 17 | | on page 27, line 19, by replacing "Insurer" each time it | 18 | | appears with " Company Insurer "; and
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| 1 | | on page 28, line 1, by replacing "Insurer" each time it appears | 2 | | with " Company Insurer "; and
| 3 | | on page 28, lines 7 and 10, by replacing "insurers" each time | 4 | | it appears with " companies insurers "; and
| 5 | | on page 28, line 14, by replacing "insurer" with " company | 6 | | insurer "; and
| 7 | | on page 28, line 15, by replacing "Insurer" with " Company | 8 | | Insurer "; and
| 9 | | on page 28, lines 18 and 23, by replacing "insurers" each time | 10 | | it appears with " companies insurers "; and
| 11 | | on page 29, lines 2 and 3, by replacing "insurers" each time it | 12 | | appears with " companies insurers "; and
| 13 | | on page 29, line 5, by replacing "insurer's" with " company's | 14 | | insurer's "; and
| 15 | | on page 29, line 22, by replacing "insurers" with " companies | 16 | | insurers "; and
| 17 | | on page 31, lines 5 and 10, by replacing "insurer" each time it |
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| 1 | | appears with " company insurer "; and
| 2 | | on page 32, line 17, by replacing "insurer" with " company | 3 | | insurer "; and
| 4 | | on page 35, line 12, by replacing "affiliate" with " controlling | 5 | | affiliate"; and
| 6 | | on page 36, lines 4 and 5, by deleting " is
responsible for | 7 | | and "; and
| 8 | | on page 38, line 3, by replacing "5" with " 15 5 "; and
| 9 | | on page 38, line 18, by replacing "statement" with "statement , | 10 | | any summary of changes to a registration statement, or any | 11 | | Enterprise Risk Filing "; and
| 12 | | on page 42, line 11, by replacing "insurer" with " company | 13 | | insurer "; and
| 14 | | on page 46, lines 5 and 6, by replacing "an insurer" with " a | 15 | | company an insurer "; and
| 16 | | on page 46, lines 7 and 9, by replacing "insurer" each time it | 17 | | appears with " company insurer "; and
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| 1 | | on page 46, line 12, by replacing " reinsurance allocation " with | 2 | | " all reinsurance allocation "; and
| 3 | | on page 46, line 14, by replacing "cost-sharing" with " all | 4 | | cost-sharing"; and
| 5 | | on page 46, line 17, by replacing " insurer " with " company "; and
| 6 | | on page 46, line 21, by replacing " insurer's " with " company's "; | 7 | | and
| 8 | | on page 46, line 25, by replacing " (v); " with " (v). "; and
| 9 | | on page 47, lines 1 and 2, by replacing " insurer " each time it | 10 | | appears with " company "; and
| 11 | | on page 47, line 3, by replacing " insurer's " with " company's "; | 12 | | and
| 13 | | on page 47, line 14, by replacing "insurer's" with " company's | 14 | | insurer's "; and
| 15 | | on page 47, line 24, by replacing "an insurer" with " a company | 16 | | an insurer "; and
| 17 | | on page 48, line 3, by replacing "insurer" with " company |
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| 1 | | insurer "; and
| 2 | | on page 48, line 7, by replacing "insurer's" with " company's | 3 | | insurer's "; and
| 4 | | on page 49, lines 1, 10, and 12, by replacing "insurer" each | 5 | | time it appears with " company insurer "; and
| 6 | | on page 50, line 16, by replacing "insurers" with " companies | 7 | | insurers "; and
| 8 | | on page 50, lines 17, 18, 20, and 24, by replacing "insurer" | 9 | | each time it appears with " company insurer "; and
| 10 | | on page 51, lines 8, 9, and 11, by replacing "insurer" each | 11 | | time it appears with " company insurer "; and
| 12 | | on page 54, line 9; by replacing " insurer " with " company "; and
| 13 | | on page 54, line 13, by replacing " companies, " with " companies | 14 | | in accordance with Section 131.21 of this Code, "; and
| 15 | | on page 54, line 17, by replacing " agreements " with " agreements | 16 | | in accordance with Section 131.22 of this Code "; and
| 17 | | on page 55, line 5, by replacing " insurer " with " company "; and
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| 1 | | on page 60, lines 13 and 17, by replacing " an insurer " each | 2 | | time it appears with " a company "; and
| 3 | | on page 60, line 20, by replacing " insurer " with " company "; and
| 4 | | on page 62, immediately below line 10, by inserting the | 5 | | following:
| 6 | | "(215 ILCS 5/131.23) (from Ch. 73, par. 743.23)
| 7 | | Sec. 131.23.
Injunctions; prohibitions against voting | 8 | | securities; sequestration of
voting securities.
(1) Whenever | 9 | | it appears to the Director that any company or any
director, | 10 | | officer, employee or agent thereof has committed or is about to
| 11 | | commit a violation of this Article or of any rule, regulation, | 12 | | or order
issued by the Director hereunder, the Director may | 13 | | apply to the Circuit
Court for the county in which the | 14 | | principal office of the company is
located or to the Circuit | 15 | | Court for Sangamon County for an order enjoining
the company or | 16 | | the director, officer, employee or agent thereof from
violating | 17 | | or continuing to violate this Article or any rule, regulation | 18 | | or
order, and for any other equitable relief as the nature of | 19 | | the case and the
interests of the company's policyholders, | 20 | | creditors or the
public may require. In any proceeding, the | 21 | | validity of the rule, regulation
or order alleged to have been | 22 | | violated may be determined by the Court.
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| 1 | | (2) No security which is the subject of any agreement or | 2 | | arrangement
regarding acquisition, or which is acquired or to | 3 | | be acquired, in
contravention of this Article or of any rule, | 4 | | regulation or order issued by
the Director hereunder may be | 5 | | voted at any shareholder's securityholders' meeting, or may be
| 6 | | counted for quorum purposes, and any action of shareholder's | 7 | | securityholders' requiring the
affirmative vote of a | 8 | | percentage of securities may be taken as though such
securities | 9 | | were not issued and outstanding; but no action taken at any | 10 | | such
meeting may be invalidated by the voting of such | 11 | | securities, unless the
action would materially affect control | 12 | | of the company or unless any court
of this State has so | 13 | | ordered. If the Director has reason to
believe that any | 14 | | security of the company has been or is about to be
acquired in | 15 | | contravention of this Article or of any rule, regulation or
| 16 | | order issued by the Director hereunder the company or the | 17 | | Director may
apply to the Circuit Court for Sangamon County or | 18 | | to the Circuit Court for
the county in which the company has | 19 | | its principal place of business (a) to
enjoin the further | 20 | | pursuit or use of any offer, request, invitation,
agreement or | 21 | | acquisition made in contravention of Sections 131.4 through
| 22 | | 131.12 or any rule, regulation, or order issued by the Director | 23 | | thereunder;
(b) to enjoin the voting of any security so | 24 | | acquired; (c) to void any vote
of such security already cast at | 25 | | any meeting of shareholders securityholders ; and (d) for
any | 26 | | other equitable relief as the nature of the case and the |
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| 1 | | interests of
the company's policyholders, creditors, or the | 2 | | public may
require.
| 3 | | (3) In any case where a person has acquired or is proposing | 4 | | to acquire
any voting securities in violation of this Article | 5 | | or any rule, regulation
or order issued by the Director | 6 | | hereunder, the Circuit Court for Sangamon
County or the Circuit | 7 | | Court for the county in which the company has its
principal | 8 | | place of business may, on such notice as the court deems
| 9 | | appropriate, upon the application of the company or the | 10 | | Director seize or
sequester any voting securities of the | 11 | | company owned directly or indirectly
by such person, and issue | 12 | | any orders with respect thereto as may be
appropriate to | 13 | | effectuate this Article. Notwithstanding any other
provisions | 14 | | of law, for the purposes of this Article, the situs of the
| 15 | | ownership of the securities of domestic companies is deemed to | 16 | | be in this
State.
| 17 | | (4) If the Director has reason to believe that any | 18 | | policyholders' proxies
have been or are about to be acquired in | 19 | | contravention of this Article or
of any rule, regulations or | 20 | | order issued by the Director hereunder, the
Director may apply | 21 | | to the Circuit Court for Sangamon County or to the Circuit
| 22 | | Court for the county in which the company has its principal | 23 | | place of business
(a) to enjoin further pursuit or use of any | 24 | | offer, request, invitation,
agreement or acquisition made in | 25 | | contravention of Section 131.4 through
131.12 and (b) for any | 26 | | other equitable relief as the nature of the case
and the |
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| 1 | | interests of the company's policyholders, creditors or the | 2 | | public may require.
| 3 | | (Source: P.A. 84-805.)"; and
| 4 | | on page 64, line 19, by replacing " insurer " with " company "; and
| 5 | | on page 64, by replacing line 22 with the following: | 6 | | " company under an order of supervision in accordance with | 7 | | Article XII 1/2 of this Code. "; and
| 8 | | on page 64, immediately below line 23, by inserting the | 9 | | following:
| 10 | | "(215 ILCS 5/131.26) (from Ch. 73, par. 743.26)
| 11 | | Sec. 131.26. Revocation, suspension, or non-renewal of | 12 | | company's license.
| 13 | | Whenever it appears to the Director that any person has | 14 | | committed a
violation of this Article which makes the continued | 15 | | operation of a company
contrary to the interests of | 16 | | policyholders or the public, the Director may,
after notice and | 17 | | hearing suspend, revoke or refuse to renew the company's
| 18 | | license or authority to do business in this State for such a | 19 | | period as the Director he finds
is required for the protection | 20 | | of policyholders or the public. Any such
determination must be | 21 | | accompanied by specific findings of fact and
conclusions of | 22 | | law.
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| 1 | | (Source: P.A. 77-673.)"; and
| 2 | | on page 65, immediately below line 21, by inserting the | 3 | | following:
| 4 | | "(215 ILCS 5/131.29 new) | 5 | | Sec. 131.29. Rulemaking power.
The Director may adopt such | 6 | | administrative rules as are necessary to implement the | 7 | | provisions of this Article. | 8 | | (215 ILCS 5/131.30 new) | 9 | | Sec. 131.30. Conflict with other laws.
This Code supersedes | 10 | | all laws and parts of laws of this State inconsistent with this | 11 | | Code with respect to matters covered by this Code. "; and | 12 | | on page 66, by replacing line 4 with the following: | 13 | | "1, 2013, except that Section 131.14b of the Illinois Insurance | 14 | | Code takes effect July 1, 2013.".
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