Illinois General Assembly - Full Text of SB2408
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Full Text of SB2408  102nd General Assembly

SB2408 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2408

 

Introduced 2/26/2021, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/532  from Ch. 73, par. 1065.82
215 ILCS 5/538  from Ch. 73, par. 1065.88
215 ILCS 5/538.7  from Ch. 73, par. 1065.88-7

    Amends the Illinois Insurance Code. Authorizes the Illinois Insurance Guaranty Fund, at the direction of its board of directors and subject to the approval of the Director of Insurance, to form and own a not-for-profit corporation to which the Fund may delegate certain of its powers and duties provided by the Code. Allows the not-for-profit corporation to contract to provide services to the Office of Special Deputy Receiver or any other person or organization authorized by law to carry out the duties of the Director in the capacity of receiver under specified provisions of the Code, the Illinois Life and Health Insurance Guaranty Association, an organizations in another state similar to the Illinois Insurance Guaranty Fund or the Illinois Life and Health Insurance Guaranty Association. Effective immediately.


LRB102 11366 BMS 16699 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2408LRB102 11366 BMS 16699 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 Sections 532, 538, and 538.7 as follows:
 
6    (215 ILCS 5/532)  (from Ch. 73, par. 1065.82)
7    Sec. 532. Purpose. The purpose of this Article is to
8provide a mechanism for the payment of covered claims under
9certain insurance policies and the expenses of the Fund in
10handling covered claims and to participate in and facilitate
11the process by which the assets of an insolvent company are
12marshaled and distributed pursuant to Article XIII of this
13Code or similar provisions in other states and jurisdictions
14to reimburse the cost of covered claims, to avoid excessive
15delay in payment of covered claims, to avoid financial loss to
16claimants or policyholders because of the entry of an Order of
17Liquidation against an insolvent company, and to provide a
18Fund to assess among member companies the costs cost of such
19protection and maintain the continuity and self-sufficient
20operation of the Fund, and to offset the costs associated with
21maintaining the Fund's continuity and self-sufficient
22operations when practical by providing assistance and services
23to the Director in her or his capacity as receiver under

 

 

SB2408- 2 -LRB102 11366 BMS 16699 b

1Article XIII of this Code and other State guaranty
2organizations in the performance of their respective statutory
3and legal functions provided by law among member companies.
4(Source: P.A. 85-576.)
 
5    (215 ILCS 5/538)  (from Ch. 73, par. 1065.88)
6    Sec. 538. Powers of the Fund. The Fund shall have the
7powers enumerated in the Sections following this Section and
8preceding Section 539 538.1 through 538.8.
9(Source: P.A. 77-305.)
 
10    (215 ILCS 5/538.7)  (from Ch. 73, par. 1065.88-7)
11    Sec. 538.7. (a) The Fund may perform such other acts as are
12necessary or proper to effectuate the purposes of this
13Article.
14    (b) The Fund may contract with the Office of Special
15Deputy Receiver or any other person or organizations
16authorized by law to carry out the duties of the Director in
17her or his capacity as a receiver under Article XIII of this
18Code, the Illinois Life and Health Insurance Guaranty
19Association under Article XXXIII 1/2 of this Code, and
20organizations in another state similar to the Fund or the
21Illinois Life and Health Insurance Guaranty Association. The
22power of the Fund to contract with these persons or entities
23includes, but is not limited to, providing consulting services
24and claims administration services that assist with these

 

 

SB2408- 3 -LRB102 11366 BMS 16699 b

1persons or entities in the performance of their respective
2statutory and legal functions provided by law. The Fund may
3only exercise the authority to contract pursuant to this
4subsection upon the board of director's written determination
5that the provisioning of such services will advance the
6purpose set forth in Section 532. Any contract with
7organizations in another state similar to the Fund or the
8Illinois Life and Health Insurance Guaranty Association shall
9be subject to the prior approval of the Director. Any contract
10the Fund may enter into to provide services pursuant to this
11subsection shall be subordinate and subject to the Fund's
12statutory obligations to timely pay covered claims and avoid
13financial loss to claimants or policyholders described in this
14Article.
15(Source: P.A. 82-210.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.