92nd General Assembly
Summary of HB2556
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House Sponsors:
OSMOND-MAUTINO-O'CONNOR-YARBROUGH-KOSEL.

Senate Sponsors:
SIEBEN

Short description: 
INS DIRECTORS-INVESTMENTS                                                  

Synopsis of Bill as introduced:
        Amends the Illinois Insurance Code  and  the  Health  Maintenance      
   Organization  Act.   Provides that after June 30, 2002 at least 20% of      
   the directors shall not be officers or employees of  the  company  for      
   which  they  serve as director.  Restricts financial transactions of a      
   domestic company when the company is not eligible  to  pay  dividends.      
   Provides  that  the  Director of Insurance may seek to be appointed as      
   receiver if any company is engaging in any aspect of the  business  of      
   insurance  in  a  manner detrimental to the interests of policyholders      
   and other parties.  Restricts financial transactions between a  health      
   maintenance organization and its directors.  Effective immediately.         
        HOUSE AMENDMENT NO. 1.                                                 
        Provides that the requirement that one-third of the directors  of      
   an insurer be persons who are not officers or employees of the insurer      
   does  not  apply to insurers that are controlled directly or through a      
   subsidiary by an entity that has at least one-third of  its  directors      
   who are not officers or employees.                                          
        HOUSE AMENDMENT NO. 2.                                                 
        Provides that the outside director requirement does not apply  to      
   domestic  insurers controlled by an entity whose securities are listed      
   on the New York Stock Exchange.                                             
 
Last action on Bill: PUBLIC ACT.............................. 92-0140

   Last action date: JUL-24-2001

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   0


   END OF INQUIRY 



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