(215 ILCS 5/1012) (from Ch. 73, par. 1065.712)
Sec. 1012.
Information Concerning Previous Adverse Underwriting Decisions.
No insurance institution, agent or insurance-support organization may seek
information in connection with an insurance transaction concerning:
(A) any previous adverse underwriting decision experienced by an individual, or
(B) any previous insurance coverage obtained by an individual through
a residual market mechanism,
unless such inquiry also requests the reasons for any previous adverse underwriting
decision or the reasons why insurance coverage was previously obtained through
a residual market mechanism.
(Source: P.A. 81-1430.)
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(215 ILCS 5/1013) (from Ch. 73, par. 1065.713)
Sec. 1013.
Previous Adverse Underwriting Decisions.
No insurance institution
or agent may base an adverse underwriting decision in whole or in part:
(A) on the fact of a previous adverse underwriting decision or on
the fact that an individual previously obtained insurance coverage through
a residual market mechanism; provided, however, an insurance institution
or agent may base an adverse underwriting decision on further information
obtained from an
insurance institution or agent responsible for a previous adverse underwriting decision;
(B) on personal information received from an insurance-support organization
whose primary source of information is insurance institutions; provided,
however, an insurance institution or agent may base an adverse underwriting
decision on further personal information obtained as the result of information
received from such insurance-support organization.
(Source: P.A. 82-108.)
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(215 ILCS 5/1014) (from Ch. 73, par. 1065.714)
Sec. 1014.
Disclosure Limitations and Conditions.
An insurance institution,
agent or insurance-support organization shall not disclose any personal
or privileged information about an individual collected or received in connection
with an insurance transaction unless the disclosure is:
(A) with the written authorization of the individual, provided:
(1) if such authorization is submitted by another insurance institution,
agent or insurance-support organization, the
authorization meets the requirements of Section 1007 of this Article, or
(2) if such authorization is submitted by a person other
than an insurance
institution, agent or insurance-support organization, the authorization is:
(a) dated,
(b) signed by the individual, and
(c) obtained one year or less prior to the date a disclosure is sought
pursuant to this subsection; or
(B) to a person other than an insurance institution, agent or insurance-support
organization, provided such disclosure is reasonably necessary:
(1) to enable such person to perform a business, professional or insurance
function for the disclosing insurance institution, agent or insurance-support
organization and such person agrees not to disclose the information further
without the individual's written authorization unless the further disclosure:
(a) would otherwise be permitted by this Section if made by an insurance
institution, agent, or insurance-support organization, or
(b) is reasonably necessary for such person to perform its function for
the disclosing insurance institution, agent, or insurance-support organization, or
(2) to enable such person to provide information to the disclosing insurance
institution, agent, or insurance-support organization for the purpose of:
(a) determining an individual's eligibility for an insurance benefit or payment, or
(b) detecting or preventing criminal activity, fraud, material misrepresentation
or material nondisclosure in connection with an insurance transaction; or
(C) to an insurance institution, agent, insurance-support organization
or self-insurer, provided the information disclosed is limited to that which
is reasonably necessary:
(1) to detect or prevent criminal activity, fraud, material misrepresentation
or material nondisclosure in connection with insurance transactions, or
(2) for either the disclosing or receiving insurance institution, agent
or insurance-support organization to perform its function in connection
with an insurance transaction involving the individual; or
(D) to a medical care institution or medical professional for the purpose of:
(1) verifying insurance coverage or benefits,
(2) informing an individual of a medical problem of which the individual
may not be aware, or
(3) conducting an operations or services audit,
provided only such information
is disclosed as is reasonably necessary to accomplish the foregoing purposes; or
(E) to an insurance regulatory authority; or
(F) to a law enforcement or other governmental authority:
(1) to protect the interests of the insurance institution, agent or insurance-support
organization in preventing or prosecuting the perpetration of
fraud upon it, or
(2) if the insurance institution, agent or insurance-support organization
reasonably believes that illegal activities have been conducted by the individual; or
(G) otherwise permitted or required by law; or
(H) in response to a facially valid administrative or judicial order,
including a search warrant or subpoena; or
(I) made for the purpose of conducting actuarial or
research studies provided:
(1) no individual may be identified in any actuarial or research
report,
(2) materials allowing the individual to be identified are returned or
destroyed as soon as they are no longer needed, and
(3) the actuarial or research organization agrees not to disclose the
information unless the disclosure would otherwise be permitted by this Section
if made by an insurance institution, agent or insurance-support organization; or
(J) to a party or a representative of a party to a proposed or consummated
sale, transfer, merger or consolidation of all or part of the business of
the insurance institution, agent or insurance support organization, provided:
(1) prior to the consummation of the sale, transfer, merger or consolidation
only such information is disclosed as is reasonably necessary to enable the
recipient to make business decisions about the purchase, transfer, merger
or consolidation, and
(2) the recipient agrees not to disclose the information unless the disclosure
would otherwise be permitted by this Section if made by an insurance institution,
agent or insurance-support organization; or
(K) to a person whose only use of such information will be in
connection with the marketing of a product or service, provided:
(1) no medical-record information, privileged information,
or personal information relating to an individual's character, personal
habits, mode of living or general reputation is disclosed, and no classification
derived from such information is disclosed,
(2) the individual has been given an opportunity to indicate
that he or she does not want personal information disclosed for marketing purposes and
has given no indication that he or she does not want the information disclosed, and
(3) the person receiving such information agrees not to use
it except in connection with the marketing of a product or service; or
(L) to an affiliate whose only use of the information will be in connection
with an audit of the insurance institution or agent or the marketing
of an insurance product or service, provided the affiliate agrees not to
disclose the information for any other purpose or to unaffiliated
persons; or
(M) by a consumer reporting agency, provided:
the disclosure is to a person other than an insurance institution or agent; or
(N) to a group policyholder for the purpose of reporting claims experience
or conducting an audit of the insurance institution's or agent's operations
or services, provided the information disclosed is reasonably necessary
for the group policyholder to conduct the review or audit; or
(O) to a professional peer review organization for the purpose of reviewing
the service or conduct of a medical-care institution or medical professional; or
(P) to a governmental authority for the purpose of determining the individual's
eligibility for health benefits for which the governmental authority may be liable; or
(Q) to a certificateholder or policyholder for the purpose of providing
information regarding the status of an insurance transaction; or
(R) to a lienholder, mortgagee, assignee, lessee, or other person shown
on the records of an insurance institution or agent as having a legal or
beneficial interest in a policy of insurance; provided that information
disclosed is limited to that which is reasonably necessary to permit such
person to protect its interest in such policy.
(Source: P.A. 82-108.)
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(215 ILCS 5/1015) (from Ch. 73, par. 1065.715)
Sec. 1015.
Powers of Director.
(A) The Director shall have power to examine and investigate into the affairs
of every insurance institution or agent doing business in this State to
determine whether the insurance institution or agent has been or is engaged
in any conduct in violation of this Article.
(B) The Director shall have the power to examine and investigate into
the affairs of every insurance-support organization acting on behalf of
an insurance institution or agent which either transacts business in this
State or transacts business outside this State that has an effect on a person
residing in this State, in order to determine whether such insurance-support
organization has been or is engaged in any conduct in violation of this Article.
(Source: P.A. 81-1430.)
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(215 ILCS 5/1016) (from Ch. 73, par. 1065.716)
Sec. 1016.
Hearings, Witnesses, Appearances, Production of Books and Service
of Process.
(A) Whenever the Director has reason to believe that an insurance institution,
agent or insurance-support organization has been or is engaged in conduct
in this State which violates this Article, or if the Director believes that
an insurance-support organization has been or is engaged in conduct outside
this State which has an effect on a person residing in this State and violates
this Article, the Director shall issue and serve upon such insurance institution,
agent or insurance-support organization a statement of charges and notice
of hearing to be held at a time and place fixed in the notice. Such hearing
shall be conducted pursuant to Sections 401, 402 and 403 of this Act, and any
applicable rules of the Department.
(B) At the time and place fixed for such hearing the insurance institution,
agent or insurance-support organization charged shall have an opportunity
to answer the charges against it and present evidence on its behalf. Upon
good cause shown, the Director shall permit any adversely affected person
to intervene, appear and be heard at such hearing by counsel or in person.
(Source: P.A. 81-1430.)
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(215 ILCS 5/1017) (from Ch. 73, par. 1065.717)
Sec. 1017.
Service of Process - Insurance-Support Organizations.
For
the purpose of this Article, an insurance-support organization transacting
business outside this State which has an effect on a person residing in
this State shall be
deemed to have appointed the Director to accept service of process on its
behalf, provided the Director causes a copy of such service to be mailed
forthwith by registered mail to the insurance-support organization at its
last known principal place of business. The return postcard receipt for
such mailing shall be sufficient proof that the same was properly mailed
by the Director.
(Source: P.A. 81-1430.)
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(215 ILCS 5/1018) (from Ch. 73, par. 1065.718)
Sec. 1018.
Cease and Desist Orders and Reports.
(A) If, after a hearing, the Director determines that the insurance institution,
agent or insurance-support organization charged has engaged in conduct or
practices in violation of this Article, he shall reduce his findings to
writing and shall issue and cause to be served upon such insurance institution,
agent or insurance-support organization a copy of such findings and an order
requiring such insurance institution, agent or insurance-support organization
to cease and desist from the conduct or practices constituting a violation
of this Article.
(B) If, after a hearing, the Director determines that the insurance institution,
agent or insurance-support organization charged has not engaged in conduct
or practices in violation of this Article, he shall prepare a written report
which sets forth findings of fact and conclusions of law. Such report shall
be served upon the insurance institution, agent or insurance-support organization
charged and upon the person or persons, if any, whose rights under this
Article were allegedly violated.
(Source: P.A. 81-1430.)
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(215 ILCS 5/1019) (from Ch. 73, par. 1065.719)
Sec. 1019.
Judicial Review.
(1) Any order or decision made, issued or
executed by the Director under this Article whereby any person or company
is aggrieved is subject to review by the Circuit Court of Sangamon County.
(2) The Administrative Review Law, as now or hereafter amended, and the
rules adopted pursuant thereto, applies to and governs all proceedings for
review of final administrative decisions of the Director provided for in
this Section. The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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(215 ILCS 5/1020) (from Ch. 73, par. 1065.720)
Sec. 1020.
Penalties.
(A) In any case where a hearing pursuant to Section
1016 results in the finding of a knowing violation of this Article, the
Director may, in addition to the issuance of a cease and desist order as
prescribed in Section 1018, order payment of a monetary penalty of not more
than $1,000 for each violation but not to exceed $20,000 in the aggregate
for multiple violations.
(B) Any person who violates a cease and desist order of the Director under
Section 1018 of this Article may, after notice and hearing and upon order
of the Director, be subject to one or more of the following penalties, at
the discretion of the Director:
(1) a monetary fine of not more than $20,000 for each | ||
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(2) a monetary fine of not more than $100,000 if the | ||
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(3) suspension or revocation of an insurance | ||
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(Source: P.A. 93-32, eff. 7-1-03.)
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(215 ILCS 5/1021) (from Ch. 73, par. 1065.721)
Sec. 1021.
Individual Remedies.
(A) If
any insurance institution, agent or insurance-support organization fails
to comply with Sections 1009, 1010 or 1011 of this Article with respect
to the rights granted under those Sections, any person whose rights are
violated may apply to the circuit court of this State, or any other court
of competent jurisdiction, for appropriate equitable relief.
(B) An insurance institution, agent or insurance-support organization
which discloses information in violation of Section 1014 of this Article
shall be liable for damages sustained by the individual about whom the information
relates; provided, however, that no individual shall be entitled to a monetary
award which exceeds the actual damages sustained by the individual as a
result of a violation of Section 1014 of this Article.
(C) In any action brought pursuant to this Section, the court may award
the cost of the action and reasonable attorney's fees to the prevailing party.
(D) An action under this Section must be brought within 2 years from the
date the alleged violation is or should have been discovered.
(E) Except as specifically provided in this Section, there shall be no
remedy or recovery available to individuals, in law or in equity, for occurrences
constituting a violation of any provision of this Article.
(Source: P.A. 82-108.)
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(215 ILCS 5/1022) (from Ch. 73, par. 1065.722)
Sec. 1022.
Immunity.
No cause of action in the nature of defamation,
invasion of privacy or negligence shall arise against any person for disclosing
personal or privileged information in accordance with this Article, nor
shall such a cause of action arise against any person for furnishing personal
or privileged information to an insurance institution, agent or insurance-support
organization; provided, however, this Section shall provide no immunity
for disclosing or furnishing false information with malice or willful intent
to injure any person.
(Source: P.A. 82-108.)
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(215 ILCS 5/1023) (from Ch. 73, par. 1065.723)
Sec. 1023.
Obtaining Information Under False Pretenses.
Any person
who knowingly and willfully obtains information about an individual from
an insurance institution, agent or insurance-support organization under
false pretenses shall be guilty of a Class 4 felony.
(Source: P.A. 81-1430.)
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(215 ILCS 5/1023.5)
Sec. 1023.5.
Federal privacy protections.
(A) In addition to the requirements of this Article, licensees shall comply
with the privacy protection provisions of Title V of the federal
Gramm-Leach-Bliley Act (Public Law 106-102, 106th Congress).
(B) The Director shall have authority to enforce the requirements of the
privacy protection provisions of Title V of the federal Gramm-Leach-Bliley Act,
employing powers granted to him under this Article and this Code.
(C) The Director shall make reasonable rules as may be necessary to make
effective the privacy provisions of Title V of the federal Gramm-Leach-Bliley
Act (Public Law 106-102, 106th Congress).
(D) For purposes of this Section, "licensee" means all insurers, insurance
producers, and other persons licensed or required to be licensed, authorized or
required to be authorized, registered or required to be registered, or
domiciled, pursuant to this Code or any other insurance law
of this State administered by the Department. "Licensee" also includes
unauthorized insurers who accept business placed through a licensed surplus
line
producer in this State, but only in regard to the surplus line placements
placed pursuant to Section 445 of this Code. However, this Section does not
apply to "service contract providers" as defined by the Service Contract Act.
(Source: P.A. 92-556, eff. 6-24-02.)
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(215 ILCS 5/1024) (from Ch. 73, par. 1065.724)
Sec. 1024.
This Article takes effect on July 1, 1981.
The rights granted
under Sections 1009, 1010 and 1014 of this Article shall take effect on July 1, 1981,
regardless of the date of the collection or receipt of the information which
is the subject of such Sections.
(Source: P.A. 81-1430.)
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(215 ILCS 5/Art. XLI heading) ARTICLE XLI.
RISK RETENTION ARRANGEMENTS FOR
BANKING ASSOCIATIONS
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(215 ILCS 5/1101) (from Ch. 73, par. 1065.801)
Sec. 1101.
Scope of Article.
This Article applies only to trusts
sponsored by domestic banking associations and organized under this
Article to provide casualty insurance authorized under Section 5 of the
Illinois Banking Act, as now or hereafter amended, for
association member banks.
(Source: P.A. 84-1431.)
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(215 ILCS 5/1102) (from Ch. 73, par. 1065.802)
Sec. 1102.
Definitions.
As used in this Article, the following terms
have the following meanings:
(1) "Banking association" means any Illinois corporation, whether
for-profit or not-for-profit, which functions as a professional or trade
association of dues-paying member commercial banks. For purposes of this
Article, "banking association" does not include any corporation which
directly or indirectly (a) accepts deposits which the depositor has a right
to withdraw on demand by check or negotiable order, or (b) engages in the
business of making loans, or both.
(2) "Trust sponsor" means a banking association which has created a risk
retention trust under this Article.
(3) "Pool retention fund" means a separate fund maintained for
payment of first dollar claims, up to a specific amount per claim
("specific retention") and up to an aggregate amount for a 12-month period
("aggregate retention").
(4) "Contingency reserve fund" means a separate fund maintained for
payment of claims in excess of the pool retention fund amount.
(5) "Coverage grant" means the document describing specific
coverages and terms of coverage which are provided by a risk retention trust
created under this Article.
(6) "Licensed service company" means an entity licensed under Section
464a of the Illinois Insurance Code to perform claims adjusting, loss
control and data processing.
(Source: P.A. 84-1431.)
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(215 ILCS 5/1103) (from Ch. 73, par. 1065.803)
Sec. 1103.
Name.
The corporate name of any trust organized under this
Article shall not be the same as or deceptively similar to the name of any
domestic insurance company or of any foreign or alien insurance company
authorized to transact business in this State.
(Source: P.A. 84-1431.)
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(215 ILCS 5/1104) (from Ch. 73, par. 1065.804)
Sec. 1104.
Principal Office and Place of Business.
The principal
office of any trust organized under this Article shall be located in this State.
(Source: P.A. 84-1431.)
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(215 ILCS 5/1105) (from Ch. 73, par. 1065.805)
Sec. 1105.
Risk Retention Trust.
(1) Any banking association which has
been in existence for a period of not less than 2 years may create a risk
retention trust for the pooling of risks in order to provide
casualty coverage authorized under Section 5 of the Illinois Banking Act,
as now or hereafter amended, for its member banks. Such trust
shall be administered by at least 3 trustees who are appointed by the trust
sponsor and who represent association member banks which have agreed in
writing to participate in the trust.
(2) The trustees shall appoint a qualified administrator who shall
administer the affairs of the risk retention trust.
(3) The trustees shall retain a licensed service company to perform
claims adjusting, loss control and data processing.
(4) The trust sponsor, the trustees and the trust administrator shall be
fiduciaries of the trust.
(5) Any trust created under this Article shall be consummated by a
written trust agreement and shall be subject to the laws of this State
governing the creation and operation of trusts, to the extent not
inconsistent with this Article.
(Source: P.A. 84-1431.)
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(215 ILCS 5/1106) (from Ch. 73, par. 1065.806)
Sec. 1106.
Trust - Participation.
(1) A banking association and its member banks
may participate in any trust created under this Article if it:
(a) Meets the underwriting standards for acceptance into the trust;
(b) Files a written application for coverage, agreeing to meet
all of the membership conditions of the trust;
(c) Is a member of the association sponsoring the trust;
(d) Agrees to meet the ongoing loss control provisions and risk pooling
arrangements set forth by the
trustees;
(e) Pays its premium contribution on a timely basis as required; and
(f) Pays its predetermined annual required contribution into the
contingency reserve fund.
(2) Any bank accepted for trust membership and participating in the
trust under this Article shall be liable for payment to the trust
of the amount of its annual premium contribution and its annual
predetermined contingency reserve fund contribution.
(Source: P.A. 84-1431.)
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(215 ILCS 5/1107) (from Ch. 73, par. 1065.807)
Sec. 1107.
Trust - Coverage Grants - Payment of Claims.
(1) No risk
retention trust created under this Article may issue coverage grants until
it has procured 100 bonafide applications for coverage with the first
premium contribution in cash for each kind of coverage which the trust
undertakes to write, and has a contingency reserve fund of at least
$2,500,000. Every trust subject to this Article must have, and at all times
maintain a pool retention fund at least equal to its unpaid liabilities and
an unimpaired minimum contingency reserve fund of $1,500,000.
The contingency reserve fund requirements shall be deemed satisfied if
the required contribution into such fund by any participating member bank
is obtained by a certificate of deposit redeemable by the trust in an
amount not greater than the amount insured by the Federal Deposit Insurance Corporation.
(2) Every coverage grant issued or delivered in this State by any trust
subject to this Article shall provide for the liability of trust
members to the extent that funds are needed to pay a member's share of the
depleted contingency reserve fund needed to maintain the reserves required
by this Section.
(3) The Director may after notice and hearing suspend or revoke the
license of any trust that
fails to maintain the minimum reserves required by this Section.
(4) All claims shall first be paid from the pool retention fund.
If that fund becomes depleted, any additional claims shall be paid from
the contingency reserve fund.
(5) On the basis of an annual independent certified audit,
the Director may require the risk retention trust to purchase insurance in amounts
required to provide additional protection to member banks in excess of the
contingency reserve fund.
(Source: P.A. 84-1431.)
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(215 ILCS 5/1108) (from Ch. 73, par. 1065.808)
Sec. 1108.
Trust; filing requirements; records.
(1) Any risk
retention trust
created under this Article shall file with the Director:
(a) A statement of intent to provide named coverages.
(b) The trust agreement between the trust sponsor and | ||
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(c) Signed risk pooling agreements from each trust | ||
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(d) By April 1 of each year a financial statement for | ||
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(e) The name of a bank or trust company with whom the | ||
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(f) Copies of coverage grants it will issue.
(2) The Director of Insurance shall charge, collect and give proper
acquittances for the payment of the following fees and charges:
(a) For filing trust instruments, amendments thereto | ||
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(b) For copies of papers or records per page, $2.
(c) For certificate to copy of paper, $10.
(d) For filing an application for the licensing of a | ||
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(3) The trust shall keep its books and records in accordance with the
provisions of Section 133 of this Code. The Director may examine such
books and records from time to time as provided in Sections 132
through 132.7 of this Code
and may charge the expense of such examination to the trust as provided in
subsection (3) of Section 408 of this Code.
(4) Trust funds established under this Section and all persons
interest therein or dealing therewith shall be subject to the provisions of
Sections 133, 144.1, 149, 401, 401.1, 402, 403, 403A, 412, and all of the
provisions of Articles VII, VIII, XII 1/2 and XIII of the Code, as amended.
Except as otherwise provided in this Section, trust funds established
under and which fully comply with this Section, shall not be subjected to
any other provision of the Code.
(5) The Director of Insurance may make reasonable rules and regulations
pertaining to the standards of coverage and administration of the trust
authorized by this Section. Such rules may include but need not be limited
to reasonable standards
for fiduciary duties of the trustees, standards for the investment of
funds, limitation of risks assumed, minimum size, capital, surplus,
reserves, and contingency reserves.
(Source: P.A. 93-32, eff. 7-1-03.)
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(215 ILCS 5/1109) (from Ch. 73, par. 1065.809)
Sec. 1109.
Illinois Insurance Guaranty Fund - Inapplicability.
The
provisions of Article XXXIV of this Code shall not apply to any risk
retention trust created under this Article.
(Source: P.A. 84-1431.)
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(215 ILCS 5/Art. XLII heading) ARTICLE XLII.
INSURANCE COST CONTAINMENT
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(215 ILCS 5/1200) (from Ch. 73, par. 1065.900)
Sec. 1200.
This Article shall be known and may be cited as the
"Illinois Insurance Cost Containment Act".
(Source: P.A. 84-1431.)
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