Illinois General Assembly - Full Text of HB0242
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Full Text of HB0242  102nd General Assembly

HB0242 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0242

 

Introduced 1/29/2021, by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/531.10  from Ch. 73, par. 1065.80-10

    Amends the Illinois Life and Health Insurance Guaranty Association Law of the Illinois Insurance Code. Provides that an Association must submit a plan of operation to the Director of Insurance within 200 days.


LRB102 04145 BMS 14162 b

 

 

A BILL FOR

 

HB0242LRB102 04145 BMS 14162 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 531.10 as follows:
 
6    (215 ILCS 5/531.10)  (from Ch. 73, par. 1065.80-10)
7    Sec. 531.10. Plan of operation.
8    (1)(a) The Association must submit to the Director a plan
9of operation and any amendments thereto necessary or suitable
10to ensure assure the fair, reasonable, and equitable
11administration of the Association within 200 days. The plan of
12operation and any amendments thereto become effective upon
13approval in writing by the Director.
14    (b) If the Association fails to submit a suitable plan of
15operation within 200 180 days following the effective date of
16this Article or if at any time thereafter the Association
17fails to submit suitable amendments to the plan, the Director
18may, after notice and hearing, adopt and promulgate such
19reasonable rules as are necessary or advisable to effectuate
20the provisions of this Article. Such rules are in force until
21modified by the Director or superseded by a plan submitted by
22the Association and approved by the Director.
23    (2) All member insurers must comply with the plan of

 

 

HB0242- 2 -LRB102 04145 BMS 14162 b

1operation.
2    (3) The plan of operation must, in addition to
3requirements enumerated elsewhere in this Article:
4        (a) Establish procedures for handling the assets of
5    the Association;
6        (b) Establish the amount and method of reimbursing
7    members of the board of directors under Section 531.07;
8        (c) Establish regular places and times for meetings of
9    the board of directors;
10        (d) Establish procedures for records to be kept of all
11    financial transactions of the Association, its agents, and
12    the board of directors;
13        (e) Establish the procedures whereby selections for
14    the board of directors will be made and submitted to the
15    Director;
16        (f) Establish any additional procedures for
17    assessments under Section 531.09; and
18        (g) Contain additional provisions necessary or proper
19    for the execution of the powers and duties of the
20    Association.
21    (4) The plan of operation shall establish a procedure for
22protest by any member insurer of assessments made by the
23Association pursuant to Section 531.09. Such procedures shall
24require that:
25        (a) a member insurer that wishes to protest all or
26    part of an assessment shall pay when due the full amount of

 

 

HB0242- 3 -LRB102 04145 BMS 14162 b

1    the assessment as set forth in the notice provided by the
2    Association. The payment shall be available to meet
3    Association obligations during the pendency of the protest
4    or any subsequent appeal. Payment shall be accompanied by
5    a statement in writing that the payment is made under
6    protest and setting forth a brief statement of the grounds
7    for the protest;
8        (b) within 30 days following the payment of an
9    assessment under protest by any protesting member insurer,
10    the Association must notify the member insurer in writing
11    of its determination with respect to the protest unless
12    the Association notifies the member that additional time
13    is required to resolve the issues raised by the protest;
14        (c) in the event the Association determines that the
15    protesting member insurer is entitled to a refund, such
16    refund shall be made within 30 days following the date
17    upon which the Association makes its determination;
18        (d) the decision of the Association with respect to a
19    protest may be appealed to the Director pursuant to
20    Section 531.11(3);
21        (e) in the alternative to rendering a decision with
22    respect to any protest based on a question regarding the
23    assessment base, the Association may refer such protests
24    to the Director for final decision, with or without a
25    recommendation from the Association; and
26        (f) interest on any refund due a protesting member

 

 

HB0242- 4 -LRB102 04145 BMS 14162 b

1    insurer shall be paid at the rate actually earned by the
2    Association.
3    (5) The plan of operation may provide that any or all
4powers and duties of the Association, except those under
5paragraph (3) of subsection (n) of Section 531.08 and Section
6531.09 are delegated to a corporation, association or other
7organization which performs or will perform functions similar
8to those of this Association, or its equivalent, in 2 or more
9states. Such a corporation, association or organization shall
10be reimbursed for any payments made on behalf of the
11Association and shall be paid for its performance of any
12function of the Association. A delegation under this
13subsection shall take effect only with the approval of both
14the Board of Directors and the Director, and may be made only
15to a corporation, association or organization which extends
16protection not substantially less favorable and effective than
17that provided by this Act.
18(Source: P.A. 100-687, eff. 8-3-18.)