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Public Act 91-0077
HB1355 Enrolled LRB9105071JStm
AN ACT to amend the Illinois Insurance Code by changing
Sections 107.15a and 107.29.
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 Sections 107.15a and 107.29 as follows:
(215 ILCS 5/107.15a) (from Ch. 73, par. 719.15a)
Sec. 107.15a. Duties and powers of trustees. The Board
of Trustees shall have such power as may be necessary for the
management and operations of the Exchange and the
Association. Such powers shall include but not be limited
to:
(a) establishment of the qualifications,
requirements, limitations and obligations for syndicates,
limited syndicates, subscribers, and Exchange brokers;
(b) denying access to the Exchange to applicants
which do not meet such qualifications, requirements, and
obligations;
(c) imposing penalties on syndicates, limited
syndicates, subscribers and Exchange brokers for
violations of the regulations of the Exchange or orders
of the Board;
(d) assessing fees annually on syndicates, limited
syndicates, subscribers and Exchange brokers, and making
assessments on syndicates, limited syndicates and
subscribers for the expenses of the Exchange;
(e) suspending, in whole or in part, access to the
Exchange or expelling syndicates, limited syndicates,
subscribers or Exchange brokers who do not continue to
meet the qualifications, requirements, and obligations
established by the Board, who fail or refuse to pay
penalties, fees, or assessments when due, or whose
continued operation the Board determines would be
injurious to the best interests of the Exchange,
policyholders, claimants, or creditors;
(f) obtaining immediate access for the benefit of
the Illinois Insurance Exchange Immediate Access Security
Association to the following assets of the impaired or
insolvent syndicate:
(i) the full amount held in its security trust
or custodial account; and
(ii) the assets of its subscribers under their
certificates of guaranty.
(Source: P.A. 88-45; 89-206, eff. 7-21-95.)
(215 ILCS 5/107.29)
Sec. 107.29. Exchange operations runoff.
(a) The Board may adopt a plan of operation for the
orderly runoff of the operations of the exchange. The plan
of operation shall provide that all funds, legal rights,
title to property, and causes of action of the Illinois
Insurance Exchange including, but not limited to, all
assessments, subscription payments, proceeds, investments,
premium fees, surcharge receipts, and funds maintained under
Sections 107.26 and 107.27 and the rules or regulations of
the Illinois Insurance Exchange implementing those Sections
or any other provision of this Article, shall be accounted
for and paid over to the Director as receiver of any
delinquent syndicate in receivership after settlement of all
claims against the exchange.
(1) In the event that 2 or more syndicates are then
in receivership, the amount paid over to each estate
shall be proportional to the relative size of the surplus
deficiency of each.
(2) Any excess remaining after the payment of any
and all claims against such receivership estates shall be
transferred, in equal shares, to the domestic companies
which result from the reorganization, merger, or
consolidation of former syndicates of the Illinois
Insurance Exchange.
(b) For purposes of this Section, "syndicate" means a
syndicate or a limited syndicate.
(Source: P.A. 90-499, eff. 8-19-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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