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90_HB1149 New Act Creates the Consumer Insurance Board Act. Provides for representation of individual insurance consumers. Creates a permanent nonprofit organization named the Consumer Insurance Board funded by member contributions and governed by a Board of Directors to represent consumers before administrative agencies, courts, and legislative bodies. Effective immediately. LRB9004377JSgc LRB9004377JSgc 1 An Act in relation to insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Consumer Insurance Board Act. 6 Section 5. Statement of Legislative Intent. The purpose 7 of this Act is to insure effective and democratic 8 representation of individual insurance consumers before 9 regulatory agencies, legislative bodies, courts, and other 10 public bodies, and to establish a practical means so that 11 consumers can provide themselves with education and advice 12 related to the purchase and use of insurance, by: 13 (a) creating a nonprofit organization to represent the 14 interests of insurance consumers before regulatory agencies, 15 legislative bodies, courts, and other public bodies, and 16 provide educational and advisory services to consumers; 17 (b) providing for democratic accountability of the Board 18 of Directors of the organization to its consumer constituency 19 through open elections of Directors with thorough financial 20 disclosure requirements and campaign spending limitations; 21 (c) encouraging active citizen participation in the 22 regulatory process through involvement in the activities of 23 the organization; and 24 (d) creating an efficient method of funding for the 25 organization, involving no burden on the taxpayers of this 26 State, whereby individual insurance consumers and other 27 citizens may voluntarily contribute to the organization. 28 Section 10. Definitions. In this Act: 29 (a) "Insurance" means a contract where a person 30 undertakes to indemnify or to pay a specified or determinable -2- LRB9004377JSgc 1 amount or benefit upon determinable contingencies. 2 (b) "Insurance company" means a corporation or other 3 entity engaged in the business of selling insurance to 4 persons within this State. 5 (c) "Individual insurance consumer" means any resident 6 of this State who buys insurance or is insured under group 7 insurance in which the beneficiary is himself, herself, 8 another person, other people, or any combination of the 9 individual beneficiaries. 10 (d) "Regulatory agency" means any local, State, federal, 11 or other public body with the legal authority: 12 (1) to establish or to approve, reject, or modify 13 proposals to offer for sale specific types of insurance 14 or insurance policies containing specific language or 15 clauses; 16 (2) to formulate or review economic policies 17 affecting this State; or 18 (3) otherwise to regulate the activities of 19 insurance companies within this State; provided that 20 local, State, and federal courts and legislative bodies 21 shall not be deemed "regulatory agencies" for the 22 purposes of this Act. 23 (e) "Proceeding" means any formal meeting of a 24 regulatory agency or subdivision of a regulatory agency 25 conducted by a hearing examiner or other agent of the 26 regulatory agency, regarding: 27 (1) the establishment or alteration of types, 28 language, or clauses, for the provision or sale of 29 insurance within this State; 30 (2) the establishment, abrogation, or amendment of 31 rules or regulations concerning individual insurance 32 consumers, insurance companies, or economic policies 33 affecting this State or concerning the conduct of 34 regulatory agency proceedings themselves; or -3- LRB9004377JSgc 1 (3) adjudication of the claims or petitions of 2 individual insurance consumers, insurance companies, or 3 other persons or groups of persons. 4 (f) "The Corporation" means the Consumer Insurance 5 Board. 6 (g) "Member" means any person who meets the requirements 7 for membership in the Corporation set forth in subsection (b) 8 of Section 15 of this Act. 9 (h) "Director" means any person serving on the Board of 10 Directors of the Corporation. 11 (i) "District" means a corporation district, the 12 boundaries of which are congruent with the boundaries of the 13 Congressional district of the State. 14 (j) "District director" means director elected from a 15 district. 16 (k) "Statewide director" means a director elected from 17 the entire State. 18 (l) "Campaign expenditure" means (1) a purchase, 19 payment, distribution, loan, advance, deposit, or gift of 20 money or anything of value, made for the purpose of electing 21 a candidate to the Board of Directors of the Corporation, (2) 22 a contract, promise, or agreement, express or implied, 23 whether or not legally enforceable, to make any campaign 24 expenditure. "Campaign expenditure" does not include the use 25 of real or personal property and the cost of invitations, 26 food, and beverages, voluntarily provided by an individual to 27 a candidate in rendering voluntary personal services on the 28 individual's residential premises for activities related to 29 the candidate's campaign if the cumulative value of the 30 activities by the individual on behalf of any candidate does 31 not exceed $100 for any election. 32 (m) "Campaign contribution" means (1) a gift 33 subscription, loan, advance, or deposit of money, or anything 34 of value, made for the purpose of electing a candidate to the -4- LRB9004377JSgc 1 Board of Directors of the Corporation, (2) a contract, 2 promise, or agreement, express or implied, whether or not 3 legally enforceable, to make any campaign contributions. 4 "Campaign contribution" does not include (A) the value of 5 services provided without compensation by individuals who 6 volunteer a portion or all of their time on behalf of a 7 candidate or political committee, or (B) the use of real or 8 personal property and the cost of invitations, food, and 9 beverages, voluntarily provided by an individual to a 10 candidate in rendering voluntary personal services on the 11 individual's residential premises for activities related to 12 the candidate's campaign, if the cumulative value of the 13 activities by the individual on behalf of any candidate does 14 not exceed $100 for any election. 15 (n) "Political committee" means any committee, club, 16 association, or other group of persons which makes campaign 17 expenditures or receives campaign contributions during the 18 year before an election of the Board of Directors. 19 Section 15. Creation of Corporation; Membership. 20 (a) There is created a nonprofit membership corporation 21 to be known as the Consumer Insurance Board referred to as 22 the Corporation. 23 (b) The membership of the Corporation shall consist of 24 all individual insurance consumers and other residents of 25 this State who have contributed to the Corporation at least 26 an amount set by the Board of Directors in either its 27 preceding or its current fiscal year as a minimum insurance 28 fee; provided, that any person may resign from membership. 29 Section 20. Duties, Rights, and Powers. 30 (a) It shall be the duty of the Corporation to 31 effectively represent and protect the interests of the 32 individual insurance consumers of this State. All actions -5- LRB9004377JSgc 1 which it undertakes under the provisions of this Act shall be 2 directed toward that goal. 3 (b) The Corporation shall have all rights and powers 4 accorded generally to, and shall be subject to all duties 5 imposed generally upon, non-profit membership corporations 6 under the laws of this State. 7 (c) The Corporation may seek tax-exempt status under 8 State and federal law. 9 (d) The Corporation may solicit and accept gifts and 10 loans, except as prohibited in this Act. 11 (e) The Corporation may conduct, support, and assist 12 research, surveys, investigations, planning activities, 13 conferences, demonstration projects, individual consumer 14 counseling, and public information activities concerning the 15 interests of individual insurance consumers. 16 (f) The Corporation may contract for services that 17 cannot reasonably be performed by its employees. 18 (g) The Corporation may represent the interests of 19 individual insurance consumers before regulatory agencies, 20 legislative bodies, courts, and other public bodies, except 21 as this Act otherwise provides. 22 (h) The Corporation shall not sponsor, endorse, or 23 otherwise support, nor shall it oppose, any political party 24 or the candidacy of any person for public office. 25 (i) The Corporation may support or oppose initiatives or 26 referenda concerning matters that it determines may affect 27 the interests of individual insurance consumers. 28 (j) The Corporation, upon receipt of any written 29 complaint regarding an insurance company, shall promptly 30 transmit the complaint to the appropriate regulatory agency 31 or other public authority. The agency or authority shall 32 inform the Corporation of its response to the complaint. 33 (k) The Corporation shall have, in addition to the 34 rights and powers enumerated in this Act, any other -6- LRB9004377JSgc 1 incidental rights and powers as are reasonably necessary for 2 the effective representation of the interests of individual 3 insurance consumers. 4 Section 25. Representation of Individual Insurance 5 Consumers in Regulatory Agency Proceedings. 6 (a) Each regulatory agency of this State as defined in 7 subsection (d) of Section 10 shall notify the Corporation in 8 advance of the time, place, subject, and names of parties of 9 each proceeding of the agency, unless the agency reasonably 10 determines that the proceeding will not affect the interests 11 of individual insurance consumers of this State. The agency 12 shall notify the Corporation at least 30 days before the 13 scheduled date of the proceeding or within 5 days after the 14 date is fixed, whichever is later. 15 (b) The Corporation may intervene as of right as a party 16 or otherwise participate in any regulatory agency proceeding 17 that the Corporation reasonably determines may affect the 18 interests of individual insurance consumers. The 19 intervention or participation of the Corporation in any such 20 proceeding shall not affect the obligation of the regulatory 21 agency to operate in the public interest. 22 (c) When the Corporation intervenes or participates in a 23 regulatory agency proceeding, it shall be subject to all laws 24 and rules of procedure of general applicability governing the 25 conduct of the proceeding and the rights of interveners and 26 participants. The Corporation shall have the same rights 27 regarding representation by counsel, participation in 28 pre-hearing conferences, discovery, requests for issuance of 29 subpoenas by the agency, stipulation of facts, presentation 30 and cross-examination of witnesses, oral and written 31 argument, participation in settlement negotiations, and other 32 aspects of the proceeding as accorded to other interveners 33 under the laws of this State, except as otherwise provided in -7- LRB9004377JSgc 1 this Act. 2 Section 30. Judicial Review of Regulatory Agency 3 Decisions; Enforcement Actions. The Corporation shall be 4 deemed to have an interest sufficient to maintain, intervene 5 as of right in, or otherwise participate in any civil action 6 for the review or enforcement of any regulatory agency 7 decision that the Corporation reasonably determines would 8 adversely affect the interests of individual insurance 9 consumers. 10 Section 35. Representation of Members in Lawsuits. 11 (a) If the Board of Directors or Executive Director 12 reasonably determines that bringing a civil action against an 13 insurance company on behalf of any member or group of members 14 would further the general purposes of this Act, the 15 Corporation may provide the legal services necessary and the 16 expert witnesses' services reasonably appropriate for 17 prosecution of the action. 18 (b) Any member who receives money due to a settlement or 19 judgment attained with assistance in litigation provided by 20 the Corporation as described in subsection (a) of this 21 Section shall reimburse the Corporation for its expenses in 22 prosecution of the action; provided, that the reimbursement 23 shall not exceed 10% of the money received by the member. 24 Section 40. Funding of the Corporation. 25 (a) In this Section: 26 (1) "Enclosure" means a card, leaflet, envelope or 27 combination thereof furnished by the Corporation under 28 this Section. 29 (2) "Mailing" means any communication by a State 30 agency that is sent through the United States Postal 31 Service to more than 50,000 persons within a 12 month -8- LRB9004377JSgc 1 period. 2 (3) "State agency" means any officer, department, 3 board, commission, institution or entity of the executive 4 or legislative branches of State government. 5 (b) To accomplish its powers and duties under this Act, 6 the Corporation may prepare and furnish to any State agency 7 an enclosure to be included with a mailing by that agency 8 subject to the following limitations: 9 (1) a State agency furnished with an enclosure 10 shall include the enclosure within the mailing designated 11 by the corporation. 12 (2) an enclosure furnished by the Corporation under 13 this Section shall be provided to the State agency a 14 reasonable period of time in advance of the mailing. 15 (3) an enclosure furnished by the Corporation under 16 this Section shall be limited to informing the reader of 17 the purpose, nature and activities of the Corporation as 18 set forth in this Act and informing the reader that it 19 may become a member in the Corporation, maintain 20 membership in the Corporation and contribute money to the 21 Corporation directly. 22 (4) prior to furnishing an enclosure to the State 23 agency, the Corporation shall seek and obtain approval of 24 the content of the enclosure from the Attorney General. 25 The Attorney General shall approve the enclosure if he or 26 she determines that the enclosure (i) is not false or 27 misleading and (ii) satisfies the requirements of this 28 Act. The Attorney General shall be deemed to have 29 approved the enclosure unless he or she disapproves the 30 enclosure within 14 days from the date of receipt. 31 (c) the Corporation shall reimburse each State agency 32 for all reasonable incremental costs incurred by the State 33 agency in complying with this Section above the agency's 34 normal mailing and handling costs, provided that: -9- LRB9004377JSgc 1 (1) the State agency shall first furnish the 2 Corporation with an itemized accounting of the additional 3 cost; and 4 (2) the Corporation shall not be required to 5 reimburse the State agency for postage costs if the 6 weight of the corporation's enclosure does not exceed .35 7 ounce avoirdupois. If the Corporation's enclosure 8 exceeds that weight, then it shall only be required to 9 reimburse the State agency for postage cost over and 10 above what the agency's postage cost would have been had 11 the enclosure weighed only .35 ounce avoirdupois. 12 (d) In the event that a State agency is furnished with 13 an enclosure by the Corporation and by the Citizens Utility 14 Board, under Section 9 of the Citizens Utility Board Act 15 designated for the same mailing, the State agency shall 16 include whichever enclosure it received first within the 17 designated mailing. It shall include the other enclosure 18 with the next mailing designated by the entity that furnished 19 it. 20 (e) The Corporation, subject to the following 21 limitations, shall have the authority to prepare and furnish 22 to the Secretary of State a statement to be printed on the 23 face of applications for a driver's license and applications 24 to register a motor vehicle. 25 (f) A statement furnished to the Secretary of State may 26 contain a box and may provide that if the applicant checks 27 the box and pays to the Secretary of State an amount in 28 excess of the applicable license or registration fee, such 29 excess fee automatically will be transferred to the 30 Corporation as a contribution from the applicant. 31 (g) The Secretary of State shall include with each 32 application for a driver's license and with each application 33 to register a motor vehicle statement provided by the 34 Corporation; provided, however, that no such statement must -10- LRB9004377JSgc 1 be included unless received by the Secretary of State at 2 least 21 calendar days prior to the delivery of the 3 application for a driver's license or of the application to 4 register a motor vehicle. 5 (h) A statement to be placed on the face of an 6 application for a driver's license or an application to 7 register a motor vehicle shall be no larger than 2 inches by 8 5 inches. 9 (i) The Secretary of State shall transfer to the 10 Corporation within 30 days of receipt any contribution 11 intended for the Corporation, and in addition, shall provide 12 the name and address of each contributor and the amount he or 13 she contributed. 14 (j) The Corporation shall have authority to prepare and 15 furnish to municipalities and counties in this State an 16 enclosure and a statement to be printed on the face of 17 applications for a municipal or county vehicle license. 18 (k) Any municipality or county, pursuant to ordinance, 19 may include with each application for a municipal or county 20 vehicle license an enclosure or statement provided by the 21 Corporation. 22 (l) No insurance company or officer, employee, or agent 23 of an insurance company may interfere or threaten to 24 interfere with or cause any interference with the insurance 25 coverage of, or otherwise cause to be injured, any person who 26 contributes to the Corporation or participates in any of its 27 activities, in retribution for such contribution or 28 participation. 29 (m) No insurance company or officer, employee, or agent 30 of an insurance company may prevent, interfere with, or 31 hinder the activities described in this Section. 32 (n) A person who violates subsections (l) or (m) of this 33 Section shall be subject to a civil penalty of not more than 34 $5,000. Each violation shall constitute a separate and -11- LRB9004377JSgc 1 continuing violation of the Act. A person who knowingly and 2 willfully violates subsections (l) or (m) of this Section 3 shall be guilty of a Class B misdemeanor. 4 Section 45. Board of Directors. 5 (a) The affairs of the corporation shall be managed by a 6 Board of Directors. 7 (b) The term of office of elected Directors shall be 3 8 years, with the exception of District Directors drawing 9 shortened terms under the provisions of subsection (c) of 10 this Section. The term of office of Directors appointed 11 under subsection (e) of this Section shall end when the first 12 elected Directors are installed in office. No Director shall 13 serve more than 2 consecutive terms. 14 (c) One-third of the District Directors first elected to 15 the Board shall serve a one-year term, one-third of the 16 Directors shall serve a 2 year term, and one-third of the 17 District Directors shall serve a full 3 year term. The 18 District Directors shall draw lots upon their installation in 19 office to determine the length of their first term. 20 (d) Directors shall be residents of this State and 21 members of the Corporation. No official of a regulatory 22 agency or officer, employee, consultant, attorney, 23 accountant, real estate agent, shareholder, bondholder, or 24 member of the immediate family of an officer, employee, 25 consultant, attorney, accountant, real estate agent, 26 shareholder, or bondholder, of any insurance company doing 27 business in this State shall be eligible to become a 28 Director. 29 (e) Within 90 days after the effective date of this Act, 30 an interim Board of Directors shall be appointed. The 31 President of the Senate and the Speaker of the House shall 32 each appoint 3 members. The appointees shall reflect the 33 geographical diversity of this State and shall include -12- LRB9004377JSgc 1 representation from minority groups, low-income persons, 2 labor organizations, business, women and senior citizens. No 3 Director appointed under this Section may hold an elective 4 position in federal, State or local government. 5 (f) The appointed directors shall: 6 (1) inform the individual insurance consumers of 7 this State, by the means provided for in this Act, of the 8 existence, nature, and purposes of the Corporation, and 9 shall encourage individual insurance consumers to 10 participate in the Corporation's activities and to 11 contribute to its operating funds; 12 (2) elect officers as provided in Section 55; 13 (3) employ such staff as the Directors deem 14 necessary to carry out the purposes of this Act; 15 (4) make all necessary preparations for the first 16 election of Directors, oversee the election campaign, and 17 tally the votes, as provided in Section 50; and 18 (5) carry out all other duties and exercise all 19 other powers accorded to the Board of Directors in this 20 Act. 21 (g) Three Statewide Directors, and one District Director 22 shall be elected from each District in the State, under 23 procedures established in Section 50. Each District Director 24 shall represent the interests of the insurance consumers of 25 his or her district and of the State, and each Statewide 26 Director shall represent the interests of the insurance 27 consumers of the State. Each Director shall have one vote in 28 the Board of Directors. Elected Directors shall be installed 29 in office by the President of the outgoing Board of 30 Directors. 31 (h) When a Director dies, resigns, is disqualified, or 32 otherwise vacates his or her office, the Board of Directors 33 shall select within 3 months a successor from the same 34 District as the Director for the remainder of the Director's -13- LRB9004377JSgc 1 term of office. Any Director may nominate any qualified 2 person as successor. The Board of Directors shall select the 3 successor from among those nominated, by a two-thirds 4 majority of the remaining Directors present and voting. The 5 successor shall be installed in office by the President of 6 the Board of Directors. 7 (i) The Board of Directors shall have the following 8 duties: 9 (1) to maintain up-to-date membership rolls and to 10 keep them in confidence; 11 (2) to keep minutes, books, and records that shall 12 reflect all the acts and transactions of the Board of 13 Directors that shall be open to examination by any member 14 during regular business hours; 15 (3) to make all reports, studies, and other 16 information compiled by the Corporation under subsection 17 (d) of Section 20 of this Act, and all data pertaining to 18 the finances of the Corporation, available for public 19 inspection during regular business hours; 20 (4) to prepare quarterly statements of the 21 financial and substantive operations of the Corporation, 22 and make copies of the statements available to the 23 general public; 24 (5) to cause the Corporation's books to be audited 25 by a certified public accountant at least once each 26 fiscal year, and make the audit available to the general 27 public; 28 (6) to prepare and mail, as soon as practicable 29 after the close of the Corporation's fiscal year, an 30 annual report of the Corporation's financial and 31 substantive operations to each member; 32 (7) to report to the membership meeting on the past 33 and projected activities and policies of the Corporation; 34 (8) to employ an Executive Director and direct and -14- LRB9004377JSgc 1 supervise his or her activities; and 2 (9) to carry out all other duties and 3 responsibilities imposed upon the Corporation and the 4 Board of Directors by this Act. 5 (j) The Board of Directors shall hold regular meetings 6 at least once every 3 months on dates and at places as it may 7 determine. Special meetings may be called by the President or 8 by any 3 Directors upon at least 5 days' notice. Eleven of 9 the Directors shall constitute a quorum. All meetings of the 10 Board of Directors and of its committees and subdivisions 11 shall be open to the public. Complete minutes of the meetings 12 shall be kept and shall be made available for public 13 inspection during regular business hours. 14 (k) The Treasurer shall reimburse Directors for actual 15 expenses necessarily incurred by them in the performance of 16 their duties. 17 (l) Directors and employees eligible to disburse funds 18 shall be bonded. The cost of the bonds shall be paid by the 19 Corporation. 20 Section 50. Election of Directors. 21 (a) The time of elections shall be as follows: 22 (1) when the membership of the Corporation has 23 reached 1,000 persons and the Corporation has received 24 $10,000 in contributions, the appointed Directors shall 25 promptly fix a date for the first election of Directors. 26 The election shall be held not less than 4 months and not 27 more than 6 months after the membership and contributions 28 have both reached the prescribed levels; and 29 (2) subsequent elections of Directors shall be held 30 at yearly intervals after the first election. The dates 31 of the elections shall be fixed not less than 4 months in 32 advance by the Board of Directors. 33 (b) To be eligible for election to the Board of -15- LRB9004377JSgc 1 Directors, a candidate must: 2 (1) meet the qualifications for Directors 3 prescribed in subsection (d) of Section 45 of this Act; 4 (2) be a resident of the District that he or she 5 seeks to represent as District Director and be a resident 6 of this State for Statewide Director; 7 (3) have his or her nomination certified by the 8 Board of Directors under subsection (c) of this Section; 9 (4) submit to the Board of Directors a statement of 10 financial interests in accordance with subsection (d) of 11 this Section and a statement of personal background and 12 positions in accordance with subsection (e) of this 13 Section; and 14 (5) make the affirmation prescribed in paragraph 15 (5) of subsection (f) of this Section. 16 (c) A candidate for election to the Board of Directors 17 as a District Director shall submit to the Board, not later 18 than 60 days prior to the election, a petition for nomination 19 signed by at least 1% or 10, whichever is less, of the 20 members in his or her District. A candidate for election to 21 the Board of Directors as a Statewide Director shall submit 22 to the Board, not later than 60 days prior to the election, a 23 petition for nomination signed by at least 1% or 30, 24 whichever is less, or all the members. 25 The Board of Directors shall verify the validity of the 26 signatures. Upon determination that a sufficient number are 27 valid, the Board shall certify the nomination of the 28 candidate. 29 (d) A candidate for election to the Board of Directors 30 shall submit to the Board, not later than 60 days prior to 31 the election, a statement of financial interest upon a form 32 approved by the Board of Directors. The statement of 33 financial interests shall include the following information: 34 (1) the occupation, employer, and position at place -16- LRB9004377JSgc 1 of employment of the candidate and of his or her 2 immediate family members; 3 (2) a list of all corporate directorships or other 4 offices, and of all fiduciary relationship, held in the 5 past 3 years by the candidate and by his or her immediate 6 family members; 7 (3) the name of any corporation in which the 8 candidate holds a security, the current market value of 9 which is $2,500 or more; 10 (4) the name of any corporation in which the 11 candidate holds a security, the current market value of 12 which is $2,500 or more; 13 (5) an affirmation, subject to penalty of perjury, 14 that the information contained in the statement of 15 financial interest is true and complete. 16 (e) A candidate for election to the Board of Directors 17 shall submit to the Board, not later than 60 days prior to 18 the election, a 2 page statement concerning his or her 19 personal background and positions on issues relating to 20 insurance or the operations of the Corporation. The statement 21 shall contain an affirmation, subject to penalty of perjury, 22 that the candidate meets the qualifications prescribed for 23 Directors in subsection (d) of Section 45 of this Act and is 24 a resident of the District that he or she seeks to represent. 25 The Board of Directors may limit the number of words a 26 candidate may use on the statement. 27 (f) Restrictions on and reporting of campaign 28 contributions and expenditures shall be as follows: 29 (1) each candidate may accept no more than $100 in 30 campaign contributions, as defined in subsection (k) of 31 Section 10 of this Act, from any person or political 32 committee from one year before the date of an election 33 through the date of the election; 34 (2) each candidate shall keep complete records of -17- LRB9004377JSgc 1 all contributions to his or her campaign of $25 or more 2 made from one year before the date of an election through 3 the date of the election; 4 (3) each candidate who avails himself or herself of 5 the Corporation's distribution of his or her statement of 6 personal background and positions under subparagraph (c) 7 of paragraph (1) of subsection (g) may incur no more than 8 $1,000 in campaign expenditures, as defined in subsection 9 (k) of Section 10 of this Act, from the time he or she 10 commences circulation of petitions for nomination or from 11 4 months prior to the election, whichever is earlier, 12 through the date of the election; 13 (4) each candidate shall keep complete records of 14 his or her campaign expenditures, and shall make the 15 records available for inspection during normal business 16 hours to any member or employee of the Corporation; and 17 (5) no earlier than 14 days and no later than 8 18 days preceding the election and no earlier than 21 days 19 and no later than 30 days after the election each 20 candidate for election to the Board shall submit to the 21 Board an accurate statement of his or her campaign 22 contributions, swearing that he or she has fully complied 23 with the requirements of paragraphs (1) through (4) of 24 subsection (f) of this Section. 25 (g) Election Procedures shall be as follows: 26 (1) the Board of Directors shall send by first class 27 mail to each member, in districts where more than one 28 candidate has been certified and to each member Statewide 29 when there are more Statewide candidate certified than 30 Statewide Directors to be elected no sooner than 21 and 31 not later than 14 days before the date fixed for the 32 election: 33 (A) an official ballot listing all candidates 34 for Statewide Director and all candidates for -18- LRB9004377JSgc 1 District Director from the member's District whose 2 nominations the Board has certified and who have 3 complied with the requirements of subsections (d) 4 and (e) of this Section; 5 (B) each candidate's statement of financial 6 interest; 7 (C) the statement of personal background and 8 position of each candidate who requests the mailing 9 or his or he statement at the time he or she submits 10 it to the Board. 11 (2) each member may cast a vote in the election by 12 returning his or her official ballot, properly marked, to 13 the head office of the Corporation by 8 p.m. of the date 14 fixed for the election or if it is sent by mail, it shall 15 be deemed to have been received on time if it is 16 postmarked. 17 (3) voting shall be by secret ballot. 18 (4) the Board of Director shall tally votes with 19 all reasonable speed and shall inform the membership 20 promptly of the names of the candidates elected. 21 (5) in each District, the District Director 22 candidate with the most votes shall be declared elected. 23 (6) the Statewide Director candidates with the 24 most, second most and third most votes shall be declared 25 elected, depending on the number of Statewide Directors 26 to be elected. (h) The President of the Board of 27 Directors shall install, within 30 days after the 28 election, all elected candidates who meet the 29 qualifications under subsection (b) of this Section. 30 (i) The Board of Directors may prescribe rules for the 31 conduct of elections and election campaigns not inconsistent 32 with this Act. 33 Section 55. Officers. -19- LRB9004377JSgc 1 (a) At the first regular meeting of the Board of 2 Directors, at which a quorum is present, subsequent to the 3 initial appointments of Directors and at the first regular 4 meeting of the Board, at which a quorum is present, 5 subsequent to the installation of new Directors following 6 each annual election, the Board shall elect by majority vote 7 of members present and voting from among the Directors a 8 President, a Vice President, a Secretary and a Treasurer. The 9 Board shall also have the power to elect a Comptroller and 10 any other officers as it deems necessary. 11 (b) Officers shall be installed by the President 12 immediately upon their election. The term of office of 13 officers shall be one year; provided that an officer may 14 resign, or may be removed from office by a two-thirds vote of 15 all the Directors. After an officer's term of office has 16 expired, the officer shall continue to serve until his or her 17 successor is installed. When an officer dies, resigns, is 18 removed, or otherwise vacates his or her office, the Board of 19 Directors shall elect a successor to serve out the officer's 20 term of office. 21 (c) The officers shall exercise the powers and perform 22 the duties as are prescribed by this Act or as delegated to 23 them by the Board of Directors. 24 Section 60. Executive Director. 25 (a) The Board of Directors shall employ an Executive 26 Director. 27 (b) The Executive Director shall have the following 28 powers and duties, subject at all times to the directions and 29 supervision of the Board of Directors: 30 (1) to decide upon the course of action of the 31 Corporation regarding appearances before regulatory 32 agencies, legislative bodies, courts, and other public 33 bodies, and regarding other activities that the -20- LRB9004377JSgc 1 Corporation has the authority to perform under Sections 2 20, 25, 30, 35 and 40 of this Act; 3 (2) to employ and discharge employees of the 4 Corporation; 5 (3) to supervise the offices, the facilities, and 6 the work of the employees of the Corporation; 7 (4) to have custody of and to maintain the books, 8 records, and membership rolls of the Corporation, in 9 accordance with the provisions of this Act; 10 (5) to prepare and submit to the Board of Directors 11 annual and quarterly statements of the financial 12 substantive operations of the Corporation, and financial 13 estimates for the future operations of the Corporation; 14 (6) to attend and participate in meetings of the 15 Board of Directors as a nonvoting Director; and 16 (7) to exercise any other powers and perform any 17 other duties as the Board of Directors delegates to him 18 or her. 19 (c) The Executive Director may be discharged by 20 two-thirds vote of all the Directors. 21 Section 65. Annual Membership Meeting. 22 (a) An annual meeting of the membership shall be held 23 once each year on a date and at a place within the State to 24 be determined by the Board of Directors. 25 (b) All members shall be eligible to attend, participate 26 in and vote in the annual membership meeting. 27 (c) The form of the annual membership meeting shall be 28 as provided in the law of this State regarding nonprofit 29 membership corporations. 30 (d) The annual membership meeting shall be open to the 31 public. 32 Section 70. Corrupt Practices and Conflicts of Interest. -21- LRB9004377JSgc 1 (a) Neither the Corporation nor its Directors, 2 employees, or agents shall offer anything of monetary value 3 to, or accept anything of monetary value from, any public 4 official or official or employee of any insurance company or 5 employer covered by this Act or agent thereof, except as 6 otherwise provided in this Act. 7 (b) No Director shall personally or through any partner 8 or agent render any professional service or make or perform 9 any business contract with or for any insurance company. 10 (c) No public official or official or employee of an 11 insurance company or employer covered by this Act or agent 12 thereof shall offer anything of monetary value to, or accept 13 anything of monetary value from the Corporation or it 14 Directors, employees, or agents, except as otherwise provided 15 in this Act. 16 (d) Any person who violates subsection (a), (b) or (c) 17 of this Section shall be subject to a civil penalty of not 18 more than $5,000, or shall be guilty of a Class 3 felony and 19 may be sentenced to a term of imprisonment not to exceed 5 20 years, or both. 21 (e) The office of a Director found in violation of 22 subsection (a) or (b) shall be declared vacant. 23 Section 75. Construction of the Act. 24 (a) The provisions of this Act shall be construed in a 25 manner to enable the Corporation effectively to represent and 26 protect the interests of the individual insurance consumers 27 of this State. 28 (b) Nothing in this Act shall be construed to limit the 29 right of any person to initiate, intervene in, or otherwise 30 participate in any regulatory agency proceeding or court 31 action, nor to relieve any regulatory agency or court of any 32 obligation, or to affect its discretion, to permit 33 intervention or participation by any person in any proceeding -22- LRB9004377JSgc 1 or action. 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.
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