State of Illinois
90th General Assembly

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]


 1                       SENATE JOINT RESOLUTION
 2        WHEREAS, Certain mutual insurance companies  in  Illinois
 3    believe  they  will  need  greater  access  to equity capital
 4    markets in the future; and
 5        WHEREAS, In response to that  perception,  a  legislative
 6    proposal,  House  Amendment  1  to Senate Bill 1901, has been
 7    presented for consideration by the House of  Representatives;
 8    and
 9        WHEREAS, The proposal, calling for the creation of mutual
10    insurance holding companies, has elicited concerns from other
11    Illinois insurance companies regarding a possible competitive
12    advantage that such holding companies may enjoy; and
13        WHEREAS,   The   proposed   creation  of  mutual  holding
14    companies   has   also   elicited   concerns   of    Illinois
15    policyholders  fearing a possible diminution of the financial
16    benefits of their policies that may result from the  creation
17    of the new corporate structure; and
18        WHEREAS, The importance of the issue is dramatized by the
19    fact  that  there are approximately 3 million Illinoisans who
20    are holders of current mutual insurance policies; and
21        WHEREAS, In the State of New York a proposal  similar  to
22    House  Amendment  1  to  Senate  Bill  1901 was presented for
23    consideration; and
24        WHEREAS, The Assembly of  New  York  undertook  extensive
25    hearings  and  study  of  the  proposal,  which  prompted the
26    Chairman of the Assembly Insurance Committee to conclude that
27    such study resulted in "considerable light"  being  "shed  on
28    the many complex issues raised by this proposal and there are
29    a  substantial  number  of  concerns  that  we  feel  must be
30    addressed before the legislation can be considered"; and
                            -2-               LRB9012218JSdvB
 1        WHEREAS, The Illinois General Assembly concludes that  it
 2    is  in the best interest of the people of Illinois to further
 3    study the complicated and potentially extremely  far-reaching
 4    mutual holding company proposal; therefore be it
 7    CONCURRING HEREIN, that a legislative task force on insurance
 8    demutualization be established; and be it further
 9        RESOLVED, That the task force be comprised of  4  members
10    of  the  House  of  Representatives,  2 each appointed by the
11    Speaker and the Minority Leader; 4 members of the  Senate,  2
12    each  appointed  by  the President and the Minority Leader; 4
13    representatives of Illinois mutual insurance companies and  4
14    representatives of Illinois stock insurance companies, 2 each
15    appointed by the Speaker and Minority Leader of the House and
16    2  each appointed by the President and Minority Leader of the
17    Senate; 4 representatives of consumer  advocacy  groups,  one
18    each  appointed  by  the  Speaker  and Minority Leader of the
19    House and one each appointed by the  President  and  Minority
20    Leader  of  the Senate; one designee of the Illinois Attorney
21    General; and one designee of the Director of  Insurance;  and
22    be it further
23        RESOLVED, That the Speaker of the House and the President
24    of the Senate designate joint chairmen of the task force; and
25    be it further
26        RESOLVED,  That  the  task  force conduct hearings on the
27    proposed mutual holding company legislation and  present  its
28    recommendations  to  the  Illinois  General Assembly no later
29    than July 1, 1999.

[ Top ]