Public Act 90-0817 of the 90th General Assembly
Public Act 90-0817
SB417 Enrolled LRB9002307NTsb
AN ACT concerning certain contracts, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 78 as follows:
(215 ILCS 5/78) (from Ch. 73, par. 690)
Sec. 78. Governmental subscribers accounts; dividends;
other returns.
(a) The attorney-in-fact of a governmental reciprocal,
in addition to the books of account of the reciprocal, shall
keep and maintain from and after the effective date of this
amendatory Act of 1993, a separate account for each
individual subscriber, setting forth therein the date or
periods of the subscriber's participation in the reciprocal,
the subscriber's deposits, the savings returned to the
subscriber and such other information as may be necessary for
the determination of the subscriber's proportionate share, if
any, of the surplus funds of the reciprocal in case of
liquidation. The attorney-in-fact shall not be required to
file a list of the subscribers with the Department.
(b) The board of directors of the attorney-in-fact of
any governmental reciprocal may in its discretion and subject
to the prior approval of the advisory committee of the
governmental reciprocal and the Director of Insurance:
(1) declare dividends to its subscribers in the
same manner and upon and subject to the same terms and
conditions as are provided in Section 54 for mutual
companies, except that the reference to "articles of
incorporation" in Section 54 shall mean the declaration
of organization or the power of attorney or other
authority of the attorney-in-fact under which contracts
of insurance are to be exchanged pursuant to this article
as applied to governmental reciprocals; and
(2) return guaranty fund or guaranty capital
contributions in the same manner and upon and subject to
the same terms and conditions as are provided in Section
56 for mutual companies and upon compliance with the
provisions of the agreement to subscribe (the agreement
to make the contributions), if any.
No payment or return of surplus (other than return of
guaranty fund or of guaranty capital) shall be made except in
accordance with this Section and sound business judgment.
(Source: P.A. 88-364.)
Section 10. The Service Contract Act is amended by
changing Section 10 as follows:
(215 ILCS 152/10)
Sec. 10. Exemptions. Service contract providers and
related service contract sellers and administrators complying
with this Act are not required to comply with and are not
subject to any provision of the Illinois Insurance Code. A
service contract provider who is the manufacturer or a
wholly-owned subsidiary of the manufacturer of the product or
the builder, seller, or lessor of the product that is the
subject of the service contract is required to comply only
with Sections 30, 35, 45, and 50 of this Act; except that, a
service contract provider who sells a motor vehicle or who
leases, but is not the manufacturer of, the motor vehicle
that is the subject of the service contract must comply with
this Act in its entirety. Contracts for the repair and
monitoring of private alarm or private security systems
regulated under the Private Detective, Private Alarm, Private
Security, and Locksmith Act of 1993 are not required to
comply with this Act and are not subject to any provision of
the Illinois Insurance Code.
(Source: P.A. 90-711, eff. 8-7-98.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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President of the Senate
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Speaker, House of Representatives