Illinois General Assembly - Full Text of SB2408
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB2408  102nd General Assembly

SB2408eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB2408 EngrossedLRB102 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.
8    (a) The purpose of this Article is to provide a mechanism
9for the payment of covered claims under certain insurance
10policies, to avoid excessive delay in payment of covered
11claims, to avoid financial loss to claimants or policyholders
12because of the entry of an Order of Liquidation against an
13insolvent company, including through services offered to the
14Director in her or his capacity as receiver under Article XIII
15of this Code that relate to covered claims, and to provide a
16Fund to assess among member companies the costs cost of such
17protection and maintain the continuity and self-sufficient
18operation of the Fund, and to offset the costs associated with
19maintaining the Fund's continuity and self-sufficient
20operations when practical by providing assistance and services
21to the Director in her or his capacity as receiver under
22Article XIII of this Code as described in this Section among
23member companies.

 

 

SB2408 Engrossed- 2 -LRB102 11366 BMS 16699 b

1    (b) The purpose of this Article is also to provide a
2mechanism for the Fund to participate in and facilitate the
3process by which the assets of an insolvent company are
4marshaled and distributed pursuant to Article XIII of this
5Code beyond reimbursing the cost of covered claims. This
6subsection (b) is inoperative 5 years after the effective date
7of this amendatory Act of the 102nd General Assembly.
8(Source: P.A. 85-576.)
 
9    (215 ILCS 5/538)  (from Ch. 73, par. 1065.88)
10    Sec. 538. Powers of the Fund. The Fund shall have the
11powers enumerated in the Sections following this Section and
12preceding Section 539 538.1 through 538.8.
13(Source: P.A. 77-305.)
 
14    (215 ILCS 5/538.7)  (from Ch. 73, par. 1065.88-7)
15    Sec. 538.7. (a) The Fund may perform such other acts as are
16necessary or proper to effectuate the purposes of this
17Article.
18    (b) The Fund may contract with the Office of Special
19Deputy Receiver or any other person or organizations
20authorized by law to carry out the duties of the Director in
21her or his capacity as a receiver under Article XIII of this
22Code. The power of the Fund to contract with these persons or
23entities includes, but is not limited to, providing consulting
24services and claims administration services that assist with

 

 

SB2408 Engrossed- 3 -LRB102 11366 BMS 16699 b

1these persons or entities in the performance of their
2respective statutory and legal functions provided by law. The
3Fund may only exercise the authority to contract pursuant to
4this subsection upon the board of director's written
5determination that the provisioning of such services will
6advance the purposes set forth in Section 532. Any contract
7the Fund may enter into to provide services pursuant to this
8subsection shall be subordinate and subject to the Fund's
9statutory obligations to timely pay covered claims and avoid
10financial loss to claimants or policyholders described in this
11Article.
12    This subsection (b) is inoperative 5 years after the
13effective date of this amendatory Act of the 102nd General
14Assembly.
15(Source: P.A. 82-210.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.