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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
INSURANCE (215 ILCS 5/) Illinois Insurance Code. 215 ILCS 5/306.1
(215 ILCS 5/306.1) (from Ch. 73, par. 918.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 306.1.
Reports.
Every society transacting business in this State
shall annually, on or before the first day of March, unless for cause shown
such time has been extended by the Director, file with the Director a true
statement of its financial condition, transactions and affairs for the
preceding calendar year in accordance with Section 136 of this Code. The
statement shall be in general form and context as approved by the National
Association of Insurance Commissioners for fraternal benefit societies and
as supplemented by additional information required by the Director.
(Source: P.A. 84-303 .)
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215 ILCS 5/307.1
(215 ILCS 5/307.1) (from Ch. 73, par. 919.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 307.1.
Annual license.
Societies which were authorized to transact
business in this State prior to the effective date of this amendatory Act may
continue such business until the first day of July next succeeding the
effective date of this amendatory Act. The authority of such societies and all
societies hereafter issued certificates of authority may thereafter be
renewed annually, but in all cases to terminate on the first day of the
succeeding July. A certified copy or duplicate of such certificate of
authority shall be prima facie evidence that the licensee is a fraternal
benefit society within the meaning of this amendatory Act.
(Source: P.A. 84-303 .)
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215 ILCS 5/308.1
(215 ILCS 5/308.1) (from Ch. 73, par. 920.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 308.1.
Examination of societies - adverse publications.
(a) The
Director, or any person he or she may appoint, may examine any domestic,
foreign or alien society transacting or applying for admission to transact
business in this State in the same manner as authorized for examination of
domestic, foreign or alien insurance companies. Requirements of notice and
an opportunity to respond before findings are made public as provided in
the laws regulating insurance companies shall also be applicable to the
examination of societies.
(b) The expense of each examination and of each valuation, including
compensation and actual expense of examiners, shall be paid by the society
examined or whose certificates are valued, upon statements furnished by the Director.
(Source: P.A. 84-303 .)
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215 ILCS 5/309.1
(215 ILCS 5/309.1) (from Ch. 73, par. 921.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 309.1.
Foreign or alien society - admission.
No foreign or alien
society shall transact business in this State without a certificate of
authority issued by the Director in accordance with Article VI of this
Code. Any such society desiring admission to this State shall comply
substantially with the requirements and limitations of this amendatory Act
applicable to domestic societies.
(Source: P.A. 84-303 .)
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215 ILCS 5/310.1
(215 ILCS 5/310.1) (from Ch. 73, par. 922.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 310.1.
Suspension, revocation or refusal to renew certificate of
authority.
(a) Domestic Societies. When, upon investigation, the Director
is satisfied that any domestic society transacting business under this
amendatory Act has exceeded its powers or has failed to comply with any
provisions of this amendatory Act or is conducting business fraudulently or in
a
way hazardous to its members, creditors or the public or is not carrying
out its contracts in good faith, the Director shall notify the society of
his or her findings, stating in writing the grounds of his or her
dissatisfaction, and, after reasonable notice, require the society on a date
named to show cause why its certificate of authority should not be revoked
or suspended or why such society should not be fined as hereinafter
provided or why the Director should not proceed against the society under
Article XIII of this Code. If, on the date named in said notice, such
objections have not been removed to the satisfaction of the Director
or if the society does not present good and sufficient reasons why its
authority to transact business in this State should not at that time be
revoked or suspended or why such society should not be fined as
hereinafter provided, the Director may revoke the authority of the society to
continue business in this State and proceed against the society under
Article XIII of this Code or suspend such certificate of authority for any
period of time up to, but not to exceed, 2 years; or may by order require
such society to pay to the people of the State of Illinois a penalty in a
sum not exceeding $10,000, and, upon the failure of such
society to pay such penalty within 20 days after the mailing of such
order, postage prepaid, registered and addressed to the last known place
of business of such society, unless such order is stayed by an order of a
court of competent jurisdiction, the Director may revoke or suspend the
license of such society for any period of time up to, but not exceeding, a
period of 2 years.
(b) Foreign or alien societies. The Director shall suspend, revoke or
refuse to renew certificates of authority in accordance with Article VI of this
Code.
(Source: P.A. 93-32, eff. 7-1-03 .)
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215 ILCS 5/311.1
(215 ILCS 5/311.1) (from Ch. 73, par. 923.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 311.1.
Injunction proceedings.
(a) Upon the refusal or neglect of
any society to make the annual report, as provided in this amendatory Act, or in
case any such society shall exceed its powers or shall conduct its business
fraudulently or is not carrying out its contracts in good faith or shall
be 30 days in arrears in the payment of death or disability claims,
endowments or annuities after the same have been allowed by the board of
directors or other person or persons whose duty it is to pass upon such
claims and after establishment of the interest and competency of the payee
to receive, receipt and acquit for payment, provided that such claim shall
be approved or disapproved within 60 days after receipt of due proof of
loss or death or, after one year's existence, shall have a membership of
less than 500 or shall determine to discontinue business or shall
fail to comply with any of the provisions of this amendatory Act, the Director shall
immediately commence, or cause to be commenced, an action against such society
under Article XIII of this Code and to enjoin the same from carrying on
any business, and an injunction may be granted, upon proper showing by the
Director, in any circuit court in this State; provided, however, that no
injunction against any society within this State or application for or
appointment of a receiver or action to prevent any society from carrying
on business in this State shall be made or granted by any court except on
the application of the Director and after written notice duly made and served
upon the chief executive officer of such society within this State, or, if
incorporated under the laws of another state, then such notice may be served
by sending the same to the president or secretary of the society by registered
mail at the home office of the society, and a full hearing before such court,
whether the party seeking such relief be the State, member of such society
or any other person whatsoever.
(b) If the court shall find that such society so enjoined was in default as
charged and the violation complained of shall have been corrected and the
injunction dissolved, the society may continue in business provided it
shall have satisfied the Director that it has paid the costs of the action.
Any officer, agent or person acting for any society or subordinate body
thereof within this State and who shall transact any business for such
society contrary to the provisions of such injunction or prohibition while
such society shall be so enjoined or prohibited from doing business
pursuant to this amendatory Act shall be deemed guilty of a Class A misdemeanor.
(Source: P.A. 84-303 .)
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215 ILCS 5/312.1
(215 ILCS 5/312.1) (from Ch. 73, par. 924.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 312.1.
Salaries.
No domestic society shall pay any salary,
compensation or emolument to any officer, trustee or director thereof, nor
any salary, compensation or emolument amounting in any year to more than
$40,000 to any person, firm or corporation, unless such payment be
first authorized by the supreme governing body or the board of directors or
corresponding body. No such society shall make any agreement with any of
its officers, trustees or directors or salaried employees whereby it agrees
that for any service rendered or to be rendered he shall receive any
salary, compensation or emolument that will extend beyond a
period of 4 years from the date of such agreement, provided that payment of
an amount not in excess of 20% of the salary of any of its officers,
directors or salaried employees may by written agreement be deferred
beyond such period of 4 years, which agreement may include conditions to
be met by such officers, directors or salaried employees before payment
will be made, and provided further that a domestic society may enter
into contracts with its producer for the payment of renewal commissions. No
such society shall enter into a special contract which will compensate any
officer, trustee or director based on a percentage of premiums collected by
the society or on a percentage of the entire insurance business of the
society. No such society shall grant any pension to any officer, trustee or
director thereof or to any member of his family after his death except
that it may provide a pension pursuant to the terms of a uniform retirement
plan adopted by the board of directors.
(Source: P.A. 84-303 .)
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215 ILCS 5/313.1
(215 ILCS 5/313.1) (from Ch. 73, par. 925.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 313.1.
Licensing of producers.
(a) Except as otherwise provided
in this Section, producers of societies shall be subject to the provisions
of Article XXXI of this Code.
(b) No examination or license shall be required of any regular salaried
officer, employee or member of a licensed society who devotes substantially
all of his or her services to activities other than the solicitation of
fraternal benefit contracts from the public and who receives for the
solicitation of such contracts no commission or other compensation
directly dependent upon the amount of business obtained.
(c) Any producer, representative or member of a society who devotes or
intends to devote less than 50% of such person's time to the
solicitation and procurement of benefit contracts for such society shall be
exempt from the requirements of subsection (a). Any person who in the
preceding calendar year has solicited and procured life insurance contracts
on behalf of any society in an amount of insurance in excess of $100,000
or, in the case of any other kind or kinds of insurance which the society
might write, on the persons of more than 25 individuals and who has
received or will receive a commission or other compensation therefor shall
be presumed to be devoting, or intending to devote, 50% of time
to the solicitation or
procurement of benefit contracts for such society.
(Source: P.A. 84- 303 .)
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