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90_HB1149
New Act
Creates the Consumer Insurance Board Act. Provides for
representation of individual insurance consumers. Creates a
permanent nonprofit organization named the Consumer Insurance
Board funded by member contributions and governed by a Board
of Directors to represent consumers before administrative
agencies, courts, and legislative bodies. Effective
immediately.
LRB9004377JSgc
LRB9004377JSgc
1 An Act in relation to insurance.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Consumer Insurance Board Act.
6 Section 5. Statement of Legislative Intent. The purpose
7 of this Act is to insure effective and democratic
8 representation of individual insurance consumers before
9 regulatory agencies, legislative bodies, courts, and other
10 public bodies, and to establish a practical means so that
11 consumers can provide themselves with education and advice
12 related to the purchase and use of insurance, by:
13 (a) creating a nonprofit organization to represent the
14 interests of insurance consumers before regulatory agencies,
15 legislative bodies, courts, and other public bodies, and
16 provide educational and advisory services to consumers;
17 (b) providing for democratic accountability of the Board
18 of Directors of the organization to its consumer constituency
19 through open elections of Directors with thorough financial
20 disclosure requirements and campaign spending limitations;
21 (c) encouraging active citizen participation in the
22 regulatory process through involvement in the activities of
23 the organization; and
24 (d) creating an efficient method of funding for the
25 organization, involving no burden on the taxpayers of this
26 State, whereby individual insurance consumers and other
27 citizens may voluntarily contribute to the organization.
28 Section 10. Definitions. In this Act:
29 (a) "Insurance" means a contract where a person
30 undertakes to indemnify or to pay a specified or determinable
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1 amount or benefit upon determinable contingencies.
2 (b) "Insurance company" means a corporation or other
3 entity engaged in the business of selling insurance to
4 persons within this State.
5 (c) "Individual insurance consumer" means any resident
6 of this State who buys insurance or is insured under group
7 insurance in which the beneficiary is himself, herself,
8 another person, other people, or any combination of the
9 individual beneficiaries.
10 (d) "Regulatory agency" means any local, State, federal,
11 or other public body with the legal authority:
12 (1) to establish or to approve, reject, or modify
13 proposals to offer for sale specific types of insurance
14 or insurance policies containing specific language or
15 clauses;
16 (2) to formulate or review economic policies
17 affecting this State; or
18 (3) otherwise to regulate the activities of
19 insurance companies within this State; provided that
20 local, State, and federal courts and legislative bodies
21 shall not be deemed "regulatory agencies" for the
22 purposes of this Act.
23 (e) "Proceeding" means any formal meeting of a
24 regulatory agency or subdivision of a regulatory agency
25 conducted by a hearing examiner or other agent of the
26 regulatory agency, regarding:
27 (1) the establishment or alteration of types,
28 language, or clauses, for the provision or sale of
29 insurance within this State;
30 (2) the establishment, abrogation, or amendment of
31 rules or regulations concerning individual insurance
32 consumers, insurance companies, or economic policies
33 affecting this State or concerning the conduct of
34 regulatory agency proceedings themselves; or
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1 (3) adjudication of the claims or petitions of
2 individual insurance consumers, insurance companies, or
3 other persons or groups of persons.
4 (f) "The Corporation" means the Consumer Insurance
5 Board.
6 (g) "Member" means any person who meets the requirements
7 for membership in the Corporation set forth in subsection (b)
8 of Section 15 of this Act.
9 (h) "Director" means any person serving on the Board of
10 Directors of the Corporation.
11 (i) "District" means a corporation district, the
12 boundaries of which are congruent with the boundaries of the
13 Congressional district of the State.
14 (j) "District director" means director elected from a
15 district.
16 (k) "Statewide director" means a director elected from
17 the entire State.
18 (l) "Campaign expenditure" means (1) a purchase,
19 payment, distribution, loan, advance, deposit, or gift of
20 money or anything of value, made for the purpose of electing
21 a candidate to the Board of Directors of the Corporation, (2)
22 a contract, promise, or agreement, express or implied,
23 whether or not legally enforceable, to make any campaign
24 expenditure. "Campaign expenditure" does not include the use
25 of real or personal property and the cost of invitations,
26 food, and beverages, voluntarily provided by an individual to
27 a candidate in rendering voluntary personal services on the
28 individual's residential premises for activities related to
29 the candidate's campaign if the cumulative value of the
30 activities by the individual on behalf of any candidate does
31 not exceed $100 for any election.
32 (m) "Campaign contribution" means (1) a gift
33 subscription, loan, advance, or deposit of money, or anything
34 of value, made for the purpose of electing a candidate to the
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1 Board of Directors of the Corporation, (2) a contract,
2 promise, or agreement, express or implied, whether or not
3 legally enforceable, to make any campaign contributions.
4 "Campaign contribution" does not include (A) the value of
5 services provided without compensation by individuals who
6 volunteer a portion or all of their time on behalf of a
7 candidate or political committee, or (B) the use of real or
8 personal property and the cost of invitations, food, and
9 beverages, voluntarily provided by an individual to a
10 candidate in rendering voluntary personal services on the
11 individual's residential premises for activities related to
12 the candidate's campaign, if the cumulative value of the
13 activities by the individual on behalf of any candidate does
14 not exceed $100 for any election.
15 (n) "Political committee" means any committee, club,
16 association, or other group of persons which makes campaign
17 expenditures or receives campaign contributions during the
18 year before an election of the Board of Directors.
19 Section 15. Creation of Corporation; Membership.
20 (a) There is created a nonprofit membership corporation
21 to be known as the Consumer Insurance Board referred to as
22 the Corporation.
23 (b) The membership of the Corporation shall consist of
24 all individual insurance consumers and other residents of
25 this State who have contributed to the Corporation at least
26 an amount set by the Board of Directors in either its
27 preceding or its current fiscal year as a minimum insurance
28 fee; provided, that any person may resign from membership.
29 Section 20. Duties, Rights, and Powers.
30 (a) It shall be the duty of the Corporation to
31 effectively represent and protect the interests of the
32 individual insurance consumers of this State. All actions
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1 which it undertakes under the provisions of this Act shall be
2 directed toward that goal.
3 (b) The Corporation shall have all rights and powers
4 accorded generally to, and shall be subject to all duties
5 imposed generally upon, non-profit membership corporations
6 under the laws of this State.
7 (c) The Corporation may seek tax-exempt status under
8 State and federal law.
9 (d) The Corporation may solicit and accept gifts and
10 loans, except as prohibited in this Act.
11 (e) The Corporation may conduct, support, and assist
12 research, surveys, investigations, planning activities,
13 conferences, demonstration projects, individual consumer
14 counseling, and public information activities concerning the
15 interests of individual insurance consumers.
16 (f) The Corporation may contract for services that
17 cannot reasonably be performed by its employees.
18 (g) The Corporation may represent the interests of
19 individual insurance consumers before regulatory agencies,
20 legislative bodies, courts, and other public bodies, except
21 as this Act otherwise provides.
22 (h) The Corporation shall not sponsor, endorse, or
23 otherwise support, nor shall it oppose, any political party
24 or the candidacy of any person for public office.
25 (i) The Corporation may support or oppose initiatives or
26 referenda concerning matters that it determines may affect
27 the interests of individual insurance consumers.
28 (j) The Corporation, upon receipt of any written
29 complaint regarding an insurance company, shall promptly
30 transmit the complaint to the appropriate regulatory agency
31 or other public authority. The agency or authority shall
32 inform the Corporation of its response to the complaint.
33 (k) The Corporation shall have, in addition to the
34 rights and powers enumerated in this Act, any other
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1 incidental rights and powers as are reasonably necessary for
2 the effective representation of the interests of individual
3 insurance consumers.
4 Section 25. Representation of Individual Insurance
5 Consumers in Regulatory Agency Proceedings.
6 (a) Each regulatory agency of this State as defined in
7 subsection (d) of Section 10 shall notify the Corporation in
8 advance of the time, place, subject, and names of parties of
9 each proceeding of the agency, unless the agency reasonably
10 determines that the proceeding will not affect the interests
11 of individual insurance consumers of this State. The agency
12 shall notify the Corporation at least 30 days before the
13 scheduled date of the proceeding or within 5 days after the
14 date is fixed, whichever is later.
15 (b) The Corporation may intervene as of right as a party
16 or otherwise participate in any regulatory agency proceeding
17 that the Corporation reasonably determines may affect the
18 interests of individual insurance consumers. The
19 intervention or participation of the Corporation in any such
20 proceeding shall not affect the obligation of the regulatory
21 agency to operate in the public interest.
22 (c) When the Corporation intervenes or participates in a
23 regulatory agency proceeding, it shall be subject to all laws
24 and rules of procedure of general applicability governing the
25 conduct of the proceeding and the rights of interveners and
26 participants. The Corporation shall have the same rights
27 regarding representation by counsel, participation in
28 pre-hearing conferences, discovery, requests for issuance of
29 subpoenas by the agency, stipulation of facts, presentation
30 and cross-examination of witnesses, oral and written
31 argument, participation in settlement negotiations, and other
32 aspects of the proceeding as accorded to other interveners
33 under the laws of this State, except as otherwise provided in
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1 this Act.
2 Section 30. Judicial Review of Regulatory Agency
3 Decisions; Enforcement Actions. The Corporation shall be
4 deemed to have an interest sufficient to maintain, intervene
5 as of right in, or otherwise participate in any civil action
6 for the review or enforcement of any regulatory agency
7 decision that the Corporation reasonably determines would
8 adversely affect the interests of individual insurance
9 consumers.
10 Section 35. Representation of Members in Lawsuits.
11 (a) If the Board of Directors or Executive Director
12 reasonably determines that bringing a civil action against an
13 insurance company on behalf of any member or group of members
14 would further the general purposes of this Act, the
15 Corporation may provide the legal services necessary and the
16 expert witnesses' services reasonably appropriate for
17 prosecution of the action.
18 (b) Any member who receives money due to a settlement or
19 judgment attained with assistance in litigation provided by
20 the Corporation as described in subsection (a) of this
21 Section shall reimburse the Corporation for its expenses in
22 prosecution of the action; provided, that the reimbursement
23 shall not exceed 10% of the money received by the member.
24 Section 40. Funding of the Corporation.
25 (a) In this Section:
26 (1) "Enclosure" means a card, leaflet, envelope or
27 combination thereof furnished by the Corporation under
28 this Section.
29 (2) "Mailing" means any communication by a State
30 agency that is sent through the United States Postal
31 Service to more than 50,000 persons within a 12 month
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1 period.
2 (3) "State agency" means any officer, department,
3 board, commission, institution or entity of the executive
4 or legislative branches of State government.
5 (b) To accomplish its powers and duties under this Act,
6 the Corporation may prepare and furnish to any State agency
7 an enclosure to be included with a mailing by that agency
8 subject to the following limitations:
9 (1) a State agency furnished with an enclosure
10 shall include the enclosure within the mailing designated
11 by the corporation.
12 (2) an enclosure furnished by the Corporation under
13 this Section shall be provided to the State agency a
14 reasonable period of time in advance of the mailing.
15 (3) an enclosure furnished by the Corporation under
16 this Section shall be limited to informing the reader of
17 the purpose, nature and activities of the Corporation as
18 set forth in this Act and informing the reader that it
19 may become a member in the Corporation, maintain
20 membership in the Corporation and contribute money to the
21 Corporation directly.
22 (4) prior to furnishing an enclosure to the State
23 agency, the Corporation shall seek and obtain approval of
24 the content of the enclosure from the Attorney General.
25 The Attorney General shall approve the enclosure if he or
26 she determines that the enclosure (i) is not false or
27 misleading and (ii) satisfies the requirements of this
28 Act. The Attorney General shall be deemed to have
29 approved the enclosure unless he or she disapproves the
30 enclosure within 14 days from the date of receipt.
31 (c) the Corporation shall reimburse each State agency
32 for all reasonable incremental costs incurred by the State
33 agency in complying with this Section above the agency's
34 normal mailing and handling costs, provided that:
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1 (1) the State agency shall first furnish the
2 Corporation with an itemized accounting of the additional
3 cost; and
4 (2) the Corporation shall not be required to
5 reimburse the State agency for postage costs if the
6 weight of the corporation's enclosure does not exceed .35
7 ounce avoirdupois. If the Corporation's enclosure
8 exceeds that weight, then it shall only be required to
9 reimburse the State agency for postage cost over and
10 above what the agency's postage cost would have been had
11 the enclosure weighed only .35 ounce avoirdupois.
12 (d) In the event that a State agency is furnished with
13 an enclosure by the Corporation and by the Citizens Utility
14 Board, under Section 9 of the Citizens Utility Board Act
15 designated for the same mailing, the State agency shall
16 include whichever enclosure it received first within the
17 designated mailing. It shall include the other enclosure
18 with the next mailing designated by the entity that furnished
19 it.
20 (e) The Corporation, subject to the following
21 limitations, shall have the authority to prepare and furnish
22 to the Secretary of State a statement to be printed on the
23 face of applications for a driver's license and applications
24 to register a motor vehicle.
25 (f) A statement furnished to the Secretary of State may
26 contain a box and may provide that if the applicant checks
27 the box and pays to the Secretary of State an amount in
28 excess of the applicable license or registration fee, such
29 excess fee automatically will be transferred to the
30 Corporation as a contribution from the applicant.
31 (g) The Secretary of State shall include with each
32 application for a driver's license and with each application
33 to register a motor vehicle statement provided by the
34 Corporation; provided, however, that no such statement must
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1 be included unless received by the Secretary of State at
2 least 21 calendar days prior to the delivery of the
3 application for a driver's license or of the application to
4 register a motor vehicle.
5 (h) A statement to be placed on the face of an
6 application for a driver's license or an application to
7 register a motor vehicle shall be no larger than 2 inches by
8 5 inches.
9 (i) The Secretary of State shall transfer to the
10 Corporation within 30 days of receipt any contribution
11 intended for the Corporation, and in addition, shall provide
12 the name and address of each contributor and the amount he or
13 she contributed.
14 (j) The Corporation shall have authority to prepare and
15 furnish to municipalities and counties in this State an
16 enclosure and a statement to be printed on the face of
17 applications for a municipal or county vehicle license.
18 (k) Any municipality or county, pursuant to ordinance,
19 may include with each application for a municipal or county
20 vehicle license an enclosure or statement provided by the
21 Corporation.
22 (l) No insurance company or officer, employee, or agent
23 of an insurance company may interfere or threaten to
24 interfere with or cause any interference with the insurance
25 coverage of, or otherwise cause to be injured, any person who
26 contributes to the Corporation or participates in any of its
27 activities, in retribution for such contribution or
28 participation.
29 (m) No insurance company or officer, employee, or agent
30 of an insurance company may prevent, interfere with, or
31 hinder the activities described in this Section.
32 (n) A person who violates subsections (l) or (m) of this
33 Section shall be subject to a civil penalty of not more than
34 $5,000. Each violation shall constitute a separate and
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1 continuing violation of the Act. A person who knowingly and
2 willfully violates subsections (l) or (m) of this Section
3 shall be guilty of a Class B misdemeanor.
4 Section 45. Board of Directors.
5 (a) The affairs of the corporation shall be managed by a
6 Board of Directors.
7 (b) The term of office of elected Directors shall be 3
8 years, with the exception of District Directors drawing
9 shortened terms under the provisions of subsection (c) of
10 this Section. The term of office of Directors appointed
11 under subsection (e) of this Section shall end when the first
12 elected Directors are installed in office. No Director shall
13 serve more than 2 consecutive terms.
14 (c) One-third of the District Directors first elected to
15 the Board shall serve a one-year term, one-third of the
16 Directors shall serve a 2 year term, and one-third of the
17 District Directors shall serve a full 3 year term. The
18 District Directors shall draw lots upon their installation in
19 office to determine the length of their first term.
20 (d) Directors shall be residents of this State and
21 members of the Corporation. No official of a regulatory
22 agency or officer, employee, consultant, attorney,
23 accountant, real estate agent, shareholder, bondholder, or
24 member of the immediate family of an officer, employee,
25 consultant, attorney, accountant, real estate agent,
26 shareholder, or bondholder, of any insurance company doing
27 business in this State shall be eligible to become a
28 Director.
29 (e) Within 90 days after the effective date of this Act,
30 an interim Board of Directors shall be appointed. The
31 President of the Senate and the Speaker of the House shall
32 each appoint 3 members. The appointees shall reflect the
33 geographical diversity of this State and shall include
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1 representation from minority groups, low-income persons,
2 labor organizations, business, women and senior citizens. No
3 Director appointed under this Section may hold an elective
4 position in federal, State or local government.
5 (f) The appointed directors shall:
6 (1) inform the individual insurance consumers of
7 this State, by the means provided for in this Act, of the
8 existence, nature, and purposes of the Corporation, and
9 shall encourage individual insurance consumers to
10 participate in the Corporation's activities and to
11 contribute to its operating funds;
12 (2) elect officers as provided in Section 55;
13 (3) employ such staff as the Directors deem
14 necessary to carry out the purposes of this Act;
15 (4) make all necessary preparations for the first
16 election of Directors, oversee the election campaign, and
17 tally the votes, as provided in Section 50; and
18 (5) carry out all other duties and exercise all
19 other powers accorded to the Board of Directors in this
20 Act.
21 (g) Three Statewide Directors, and one District Director
22 shall be elected from each District in the State, under
23 procedures established in Section 50. Each District Director
24 shall represent the interests of the insurance consumers of
25 his or her district and of the State, and each Statewide
26 Director shall represent the interests of the insurance
27 consumers of the State. Each Director shall have one vote in
28 the Board of Directors. Elected Directors shall be installed
29 in office by the President of the outgoing Board of
30 Directors.
31 (h) When a Director dies, resigns, is disqualified, or
32 otherwise vacates his or her office, the Board of Directors
33 shall select within 3 months a successor from the same
34 District as the Director for the remainder of the Director's
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1 term of office. Any Director may nominate any qualified
2 person as successor. The Board of Directors shall select the
3 successor from among those nominated, by a two-thirds
4 majority of the remaining Directors present and voting. The
5 successor shall be installed in office by the President of
6 the Board of Directors.
7 (i) The Board of Directors shall have the following
8 duties:
9 (1) to maintain up-to-date membership rolls and to
10 keep them in confidence;
11 (2) to keep minutes, books, and records that shall
12 reflect all the acts and transactions of the Board of
13 Directors that shall be open to examination by any member
14 during regular business hours;
15 (3) to make all reports, studies, and other
16 information compiled by the Corporation under subsection
17 (d) of Section 20 of this Act, and all data pertaining to
18 the finances of the Corporation, available for public
19 inspection during regular business hours;
20 (4) to prepare quarterly statements of the
21 financial and substantive operations of the Corporation,
22 and make copies of the statements available to the
23 general public;
24 (5) to cause the Corporation's books to be audited
25 by a certified public accountant at least once each
26 fiscal year, and make the audit available to the general
27 public;
28 (6) to prepare and mail, as soon as practicable
29 after the close of the Corporation's fiscal year, an
30 annual report of the Corporation's financial and
31 substantive operations to each member;
32 (7) to report to the membership meeting on the past
33 and projected activities and policies of the Corporation;
34 (8) to employ an Executive Director and direct and
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1 supervise his or her activities; and
2 (9) to carry out all other duties and
3 responsibilities imposed upon the Corporation and the
4 Board of Directors by this Act.
5 (j) The Board of Directors shall hold regular meetings
6 at least once every 3 months on dates and at places as it may
7 determine. Special meetings may be called by the President or
8 by any 3 Directors upon at least 5 days' notice. Eleven of
9 the Directors shall constitute a quorum. All meetings of the
10 Board of Directors and of its committees and subdivisions
11 shall be open to the public. Complete minutes of the meetings
12 shall be kept and shall be made available for public
13 inspection during regular business hours.
14 (k) The Treasurer shall reimburse Directors for actual
15 expenses necessarily incurred by them in the performance of
16 their duties.
17 (l) Directors and employees eligible to disburse funds
18 shall be bonded. The cost of the bonds shall be paid by the
19 Corporation.
20 Section 50. Election of Directors.
21 (a) The time of elections shall be as follows:
22 (1) when the membership of the Corporation has
23 reached 1,000 persons and the Corporation has received
24 $10,000 in contributions, the appointed Directors shall
25 promptly fix a date for the first election of Directors.
26 The election shall be held not less than 4 months and not
27 more than 6 months after the membership and contributions
28 have both reached the prescribed levels; and
29 (2) subsequent elections of Directors shall be held
30 at yearly intervals after the first election. The dates
31 of the elections shall be fixed not less than 4 months in
32 advance by the Board of Directors.
33 (b) To be eligible for election to the Board of
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1 Directors, a candidate must:
2 (1) meet the qualifications for Directors
3 prescribed in subsection (d) of Section 45 of this Act;
4 (2) be a resident of the District that he or she
5 seeks to represent as District Director and be a resident
6 of this State for Statewide Director;
7 (3) have his or her nomination certified by the
8 Board of Directors under subsection (c) of this Section;
9 (4) submit to the Board of Directors a statement of
10 financial interests in accordance with subsection (d) of
11 this Section and a statement of personal background and
12 positions in accordance with subsection (e) of this
13 Section; and
14 (5) make the affirmation prescribed in paragraph
15 (5) of subsection (f) of this Section.
16 (c) A candidate for election to the Board of Directors
17 as a District Director shall submit to the Board, not later
18 than 60 days prior to the election, a petition for nomination
19 signed by at least 1% or 10, whichever is less, of the
20 members in his or her District. A candidate for election to
21 the Board of Directors as a Statewide Director shall submit
22 to the Board, not later than 60 days prior to the election, a
23 petition for nomination signed by at least 1% or 30,
24 whichever is less, or all the members.
25 The Board of Directors shall verify the validity of the
26 signatures. Upon determination that a sufficient number are
27 valid, the Board shall certify the nomination of the
28 candidate.
29 (d) A candidate for election to the Board of Directors
30 shall submit to the Board, not later than 60 days prior to
31 the election, a statement of financial interest upon a form
32 approved by the Board of Directors. The statement of
33 financial interests shall include the following information:
34 (1) the occupation, employer, and position at place
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1 of employment of the candidate and of his or her
2 immediate family members;
3 (2) a list of all corporate directorships or other
4 offices, and of all fiduciary relationship, held in the
5 past 3 years by the candidate and by his or her immediate
6 family members;
7 (3) the name of any corporation in which the
8 candidate holds a security, the current market value of
9 which is $2,500 or more;
10 (4) the name of any corporation in which the
11 candidate holds a security, the current market value of
12 which is $2,500 or more;
13 (5) an affirmation, subject to penalty of perjury,
14 that the information contained in the statement of
15 financial interest is true and complete.
16 (e) A candidate for election to the Board of Directors
17 shall submit to the Board, not later than 60 days prior to
18 the election, a 2 page statement concerning his or her
19 personal background and positions on issues relating to
20 insurance or the operations of the Corporation. The statement
21 shall contain an affirmation, subject to penalty of perjury,
22 that the candidate meets the qualifications prescribed for
23 Directors in subsection (d) of Section 45 of this Act and is
24 a resident of the District that he or she seeks to represent.
25 The Board of Directors may limit the number of words a
26 candidate may use on the statement.
27 (f) Restrictions on and reporting of campaign
28 contributions and expenditures shall be as follows:
29 (1) each candidate may accept no more than $100 in
30 campaign contributions, as defined in subsection (k) of
31 Section 10 of this Act, from any person or political
32 committee from one year before the date of an election
33 through the date of the election;
34 (2) each candidate shall keep complete records of
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1 all contributions to his or her campaign of $25 or more
2 made from one year before the date of an election through
3 the date of the election;
4 (3) each candidate who avails himself or herself of
5 the Corporation's distribution of his or her statement of
6 personal background and positions under subparagraph (c)
7 of paragraph (1) of subsection (g) may incur no more than
8 $1,000 in campaign expenditures, as defined in subsection
9 (k) of Section 10 of this Act, from the time he or she
10 commences circulation of petitions for nomination or from
11 4 months prior to the election, whichever is earlier,
12 through the date of the election;
13 (4) each candidate shall keep complete records of
14 his or her campaign expenditures, and shall make the
15 records available for inspection during normal business
16 hours to any member or employee of the Corporation; and
17 (5) no earlier than 14 days and no later than 8
18 days preceding the election and no earlier than 21 days
19 and no later than 30 days after the election each
20 candidate for election to the Board shall submit to the
21 Board an accurate statement of his or her campaign
22 contributions, swearing that he or she has fully complied
23 with the requirements of paragraphs (1) through (4) of
24 subsection (f) of this Section.
25 (g) Election Procedures shall be as follows:
26 (1) the Board of Directors shall send by first class
27 mail to each member, in districts where more than one
28 candidate has been certified and to each member Statewide
29 when there are more Statewide candidate certified than
30 Statewide Directors to be elected no sooner than 21 and
31 not later than 14 days before the date fixed for the
32 election:
33 (A) an official ballot listing all candidates
34 for Statewide Director and all candidates for
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1 District Director from the member's District whose
2 nominations the Board has certified and who have
3 complied with the requirements of subsections (d)
4 and (e) of this Section;
5 (B) each candidate's statement of financial
6 interest;
7 (C) the statement of personal background and
8 position of each candidate who requests the mailing
9 or his or he statement at the time he or she submits
10 it to the Board.
11 (2) each member may cast a vote in the election by
12 returning his or her official ballot, properly marked, to
13 the head office of the Corporation by 8 p.m. of the date
14 fixed for the election or if it is sent by mail, it shall
15 be deemed to have been received on time if it is
16 postmarked.
17 (3) voting shall be by secret ballot.
18 (4) the Board of Director shall tally votes with
19 all reasonable speed and shall inform the membership
20 promptly of the names of the candidates elected.
21 (5) in each District, the District Director
22 candidate with the most votes shall be declared elected.
23 (6) the Statewide Director candidates with the
24 most, second most and third most votes shall be declared
25 elected, depending on the number of Statewide Directors
26 to be elected. (h) The President of the Board of
27 Directors shall install, within 30 days after the
28 election, all elected candidates who meet the
29 qualifications under subsection (b) of this Section.
30 (i) The Board of Directors may prescribe rules for the
31 conduct of elections and election campaigns not inconsistent
32 with this Act.
33 Section 55. Officers.
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1 (a) At the first regular meeting of the Board of
2 Directors, at which a quorum is present, subsequent to the
3 initial appointments of Directors and at the first regular
4 meeting of the Board, at which a quorum is present,
5 subsequent to the installation of new Directors following
6 each annual election, the Board shall elect by majority vote
7 of members present and voting from among the Directors a
8 President, a Vice President, a Secretary and a Treasurer. The
9 Board shall also have the power to elect a Comptroller and
10 any other officers as it deems necessary.
11 (b) Officers shall be installed by the President
12 immediately upon their election. The term of office of
13 officers shall be one year; provided that an officer may
14 resign, or may be removed from office by a two-thirds vote of
15 all the Directors. After an officer's term of office has
16 expired, the officer shall continue to serve until his or her
17 successor is installed. When an officer dies, resigns, is
18 removed, or otherwise vacates his or her office, the Board of
19 Directors shall elect a successor to serve out the officer's
20 term of office.
21 (c) The officers shall exercise the powers and perform
22 the duties as are prescribed by this Act or as delegated to
23 them by the Board of Directors.
24 Section 60. Executive Director.
25 (a) The Board of Directors shall employ an Executive
26 Director.
27 (b) The Executive Director shall have the following
28 powers and duties, subject at all times to the directions and
29 supervision of the Board of Directors:
30 (1) to decide upon the course of action of the
31 Corporation regarding appearances before regulatory
32 agencies, legislative bodies, courts, and other public
33 bodies, and regarding other activities that the
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1 Corporation has the authority to perform under Sections
2 20, 25, 30, 35 and 40 of this Act;
3 (2) to employ and discharge employees of the
4 Corporation;
5 (3) to supervise the offices, the facilities, and
6 the work of the employees of the Corporation;
7 (4) to have custody of and to maintain the books,
8 records, and membership rolls of the Corporation, in
9 accordance with the provisions of this Act;
10 (5) to prepare and submit to the Board of Directors
11 annual and quarterly statements of the financial
12 substantive operations of the Corporation, and financial
13 estimates for the future operations of the Corporation;
14 (6) to attend and participate in meetings of the
15 Board of Directors as a nonvoting Director; and
16 (7) to exercise any other powers and perform any
17 other duties as the Board of Directors delegates to him
18 or her.
19 (c) The Executive Director may be discharged by
20 two-thirds vote of all the Directors.
21 Section 65. Annual Membership Meeting.
22 (a) An annual meeting of the membership shall be held
23 once each year on a date and at a place within the State to
24 be determined by the Board of Directors.
25 (b) All members shall be eligible to attend, participate
26 in and vote in the annual membership meeting.
27 (c) The form of the annual membership meeting shall be
28 as provided in the law of this State regarding nonprofit
29 membership corporations.
30 (d) The annual membership meeting shall be open to the
31 public.
32 Section 70. Corrupt Practices and Conflicts of Interest.
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1 (a) Neither the Corporation nor its Directors,
2 employees, or agents shall offer anything of monetary value
3 to, or accept anything of monetary value from, any public
4 official or official or employee of any insurance company or
5 employer covered by this Act or agent thereof, except as
6 otherwise provided in this Act.
7 (b) No Director shall personally or through any partner
8 or agent render any professional service or make or perform
9 any business contract with or for any insurance company.
10 (c) No public official or official or employee of an
11 insurance company or employer covered by this Act or agent
12 thereof shall offer anything of monetary value to, or accept
13 anything of monetary value from the Corporation or it
14 Directors, employees, or agents, except as otherwise provided
15 in this Act.
16 (d) Any person who violates subsection (a), (b) or (c)
17 of this Section shall be subject to a civil penalty of not
18 more than $5,000, or shall be guilty of a Class 3 felony and
19 may be sentenced to a term of imprisonment not to exceed 5
20 years, or both.
21 (e) The office of a Director found in violation of
22 subsection (a) or (b) shall be declared vacant.
23 Section 75. Construction of the Act.
24 (a) The provisions of this Act shall be construed in a
25 manner to enable the Corporation effectively to represent and
26 protect the interests of the individual insurance consumers
27 of this State.
28 (b) Nothing in this Act shall be construed to limit the
29 right of any person to initiate, intervene in, or otherwise
30 participate in any regulatory agency proceeding or court
31 action, nor to relieve any regulatory agency or court of any
32 obligation, or to affect its discretion, to permit
33 intervention or participation by any person in any proceeding
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1 or action.
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.