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

SB2408sam001 102ND GENERAL ASSEMBLY

Sen. Napoleon Harris, III

Filed: 4/8/2021

 

 


 

 


 
10200SB2408sam001LRB102 11366 BMS 24754 a

1
AMENDMENT TO SENATE BILL 2408

2    AMENDMENT NO. ______. Amend Senate Bill 2408 by replacing
3everything after the enacting clause with the following:
 
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

 

 

10200SB2408sam001- 2 -LRB102 11366 BMS 24754 a

1protection and maintain the continuity and self-sufficient
2operation of the Fund, and to offset the costs associated with
3maintaining the Fund's continuity and self-sufficient
4operations when practical by providing assistance and services
5to the Director in her or his capacity as receiver under
6Article XIII of this Code as described in this Section among
7member companies.
8    (b) The purpose of this Article is also to provide a
9mechanism for the Fund to participate in and facilitate the
10process by which the assets of an insolvent company are
11marshaled and distributed pursuant to Article XIII of this
12Code beyond reimbursing the cost of covered claims. This
13subsection (b) is inoperative 5 years after the effective date
14of this amendatory Act of the 102nd General Assembly.
15(Source: P.A. 85-576.)
 
16    (215 ILCS 5/538)  (from Ch. 73, par. 1065.88)
17    Sec. 538. Powers of the Fund. The Fund shall have the
18powers enumerated in the Sections following this Section and
19preceding Section 539 538.1 through 538.8.
20(Source: P.A. 77-305.)
 
21    (215 ILCS 5/538.7)  (from Ch. 73, par. 1065.88-7)
22    Sec. 538.7. (a) The Fund may perform such other acts as are
23necessary or proper to effectuate the purposes of this
24Article.

 

 

10200SB2408sam001- 3 -LRB102 11366 BMS 24754 a

1    (b) The Fund may contract with the Office of Special
2Deputy Receiver or any other person or organizations
3authorized by law to carry out the duties of the Director in
4her or his capacity as a receiver under Article XIII of this
5Code. The power of the Fund to contract with these persons or
6entities includes, but is not limited to, providing consulting
7services and claims administration services that assist with
8these persons or entities in the performance of their
9respective statutory and legal functions provided by law. The
10Fund may only exercise the authority to contract pursuant to
11this subsection upon the board of director's written
12determination that the provisioning of such services will
13advance the purposes set forth in Section 532. Any contract
14the Fund may enter into to provide services pursuant to this
15subsection shall be subordinate and subject to the Fund's
16statutory obligations to timely pay covered claims and avoid
17financial loss to claimants or policyholders described in this
18Article.
19    This subsection (b) is inoperative 5 years after the
20effective date of this amendatory Act of the 102nd General
21Assembly.
22(Source: P.A. 82-210.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".