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Public Act 102-0394


 

Public Act 0394 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0394
 
HB1955 EnrolledLRB102 13242 BMS 18586 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Insurance Code is amended by
changing Sections 35B-25, 131.1, 131.8, and 131.22 and by
adding Section 131.20d as follows:
 
    (215 ILCS 5/35B-25)
    Sec. 35B-25. Plan of division approval.
    (a) A division shall not become effective until it is
approved by the Director after reasonable notice and a public
hearing, if the notice and hearing are deemed by the Director
to be in the public interest. The Director shall hold a public
hearing if one is requested by the dividing company. A hearing
conducted under this Section shall be conducted in accordance
with Article 10 of the Illinois Administrative Procedure Act.
    (b) The Director shall approve a plan of division unless
the Director finds that:
        (1) the interest of any class of policyholder or
    shareholder of the dividing company will not be properly
    protected;
        (2) each new company created by the proposed division,
    except a new company that is a nonsurviving party to a
    merger pursuant to subsection (b) of Section 156, would be
    ineligible to receive a license to do insurance business
    in this State pursuant to Section 5;
        (2.5) each new company created by the proposed
    division, except a new company that is a nonsurviving
    party to a merger pursuant to subsection (b) of Section
    156, that will be a member insurer of the Illinois Life and
    Health Insurance Guaranty Association and that will have
    policy liabilities allocated to it will not be licensed to
    do insurance business in each state where such policies
    were written by the dividing company;
        (3) the proposed division violates a provision of the
    Uniform Fraudulent Transfer Act;
        (4) the division is being made for purposes of
    hindering, delaying, or defrauding any policyholders or
    other creditors of the dividing company;
        (5) one or more resulting companies will not be
    solvent upon the consummation of the division; or
        (6) the remaining assets of one or more resulting
    companies will be, upon consummation of a division,
    unreasonably small in relation to the business and
    transactions in which the resulting company was engaged or
    is about to engage.
    (c) In determining whether the standards set forth in
paragraph (3) of subsection (b) have been satisfied, the
Director shall only apply the Uniform Fraudulent Transfer Act
to a dividing company in its capacity as a resulting company
and shall not apply the Uniform Fraudulent Transfer Act to any
dividing company that is not proposed to survive the division.
    (d) In determining whether the standards set forth in
paragraphs (3), (4), (5), and (6) of subsection (b) have been
satisfied, the Director may consider all proposed assets of
the resulting company, including, without limitation,
reinsurance agreements, parental guarantees, support or keep
well agreements, or capital maintenance or contingent capital
agreements, in each case, regardless of whether the same would
qualify as an admitted asset as defined in Section 3.1.
    (e) In determining whether the standards set forth in
paragraph (3) of subsection (b) have been satisfied, with
respect to each resulting company, the Director shall, in
applying the Uniform Fraudulent Transfer Act, treat:
        (1) the resulting company as a debtor;
        (2) liabilities allocated to the resulting company as
    obligations incurred by a debtor;
        (3) the resulting company as not having received
    reasonably equivalent value in exchange for incurring the
    obligations; and
        (4) assets allocated to the resulting company as
    remaining property.
    (f) All information, documents, materials, and copies
thereof submitted to, obtained by, or disclosed to the
Director in connection with a plan of division or in
contemplation thereof, including any information, documents,
materials, or copies provided by or on behalf of a domestic
stock company in advance of its adoption or submission of a
plan of division, shall be confidential and shall be subject
to the same protection and treatment in accordance with
Section 131.22 131.14d as documents and reports disclosed to
or filed with the Director pursuant to Section 131.14b until
such time, if any, as a notice of the hearing contemplated by
subsection (a) is issued.
    (g) From and after the issuance of a notice of the hearing
contemplated by subsection (a), all business, financial, and
actuarial information that the domestic stock company requests
confidential treatment, other than the plan of division, shall
continue to be confidential and shall not be available for
public inspection and shall be subject to the same protection
and treatment in accordance with Section 131.22 131.14d as
documents and reports disclosed to or filed with the Director
pursuant to Section 131.14b.
    (h) All expenses incurred by the Director in connection
with proceedings under this Section, including expenses for
the services of any attorneys, actuaries, accountants, and
other experts as may be reasonably necessary to assist the
Director in reviewing the proposed division, shall be paid by
the dividing company filing the plan of division. A dividing
company may allocate expenses described in this subsection in
a plan of division in the same manner as any other liability.
    (i) If the Director approves a plan of division, the
Director shall issue an order that shall be accompanied by
findings of fact and conclusions of law.
    (j) The conditions in this Section for freeing one or more
of the resulting companies from the liabilities of the
dividing company and for allocating some or all of the
liabilities of the dividing company shall be conclusively
deemed to have been satisfied if the plan of division has been
approved by the Director in a final order that is not subject
to further appeal.
(Source: P.A. 100-1118, eff. 11-27-18; 101-549, eff. 1-1-20.)
 
    (215 ILCS 5/131.1)  (from Ch. 73, par. 743.1)
    Sec. 131.1. Definitions. As used in this Article, the
following terms have the respective meanings set forth in this
Section unless the context requires otherwise:
    (a) An "affiliate" of, or person "affiliated" with, a
specific person, is a person that directly, or indirectly
through one or more intermediaries, controls, or is controlled
by, or is under common control with, the person specified.
    (a-5) "Acquiring party" means such person by whom or on
whose behalf the merger or other acquisition of control
referred to in Section 131.4 is to be affected and any person
that controls such person or persons.
    (a-10) "Associated person" means, with respect to an
acquiring party, (1) any beneficial owner of shares of the
company to be acquired, owned, directly or indirectly, of
record or beneficially by the acquiring party, (2) any
affiliate of the acquiring party or beneficial owner, and (3)
any other person acting in concert, directly or indirectly,
pursuant to any agreement, arrangement, or understanding,
whether written or oral, with the acquiring party or
beneficial owner, or any of their respective affiliates, in
connection with the merger, consolidation, or other
acquisition of control referred to in Section 131.4 of this
Code.
    (a-15) "Company" has the same meaning as "company" as
defined in Section 2 of this Code, except that it does not
include agencies, authorities, or instrumentalities of the
United States, its possessions and territories, the
Commonwealth of Puerto Rico, the District of Columbia, or a
state or political subdivision of a state.
    (b) "Control" (including the terms "controlling",
"controlled by" and "under common control with") means the
possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a
person, whether through the ownership of voting securities,
the holding of shareholders' or policyholders' proxies by
contract other than a commercial contract for goods or
non-management services, or otherwise, unless the power is
solely the result of an official position with or corporate
office held by the person. Control is presumed to exist if any
person, directly or indirectly, owns, controls, holds with the
power to vote, or holds shareholders' proxies representing 10%
or more of the voting securities of any other person, or holds
or controls sufficient policyholders' proxies to elect the
majority of the board of directors of the domestic company.
This presumption may be rebutted by a showing made in the
manner as the Director may provide by rule. The Director may
determine, after furnishing all persons in interest notice and
opportunity to be heard and making specific findings of fact
to support such determination, that control exists in fact,
notwithstanding the absence of a presumption to that effect.
    (b-5) "Enterprise risk" means any activity, circumstance,
event, or series of events involving one or more affiliates of
a company that, if not remedied promptly, is likely to have a
material adverse effect upon the financial condition or
liquidity of the company or its insurance holding company
system as a whole, including, but not limited to, anything
that would cause the company's risk-based capital to fall into
company action level as set forth in Article IIA of this Code
or would cause the company to be in hazardous financial
condition as set forth in Article XII 1/2 of this Code.
    (b-10) "Exchange Act" means the Securities Exchange Act of
1934, as amended, together with the rules and regulations
promulgated thereunder.
    (b-15) "Group-wide supervisor" means the regulatory
official authorized to engage in conducting and coordinating
group-wide supervision activities who is determined or
acknowledged by the Director under Section 131.20d of this
Code to have sufficient contacts with an internationally
active insurance group.
    (c) "Insurance holding company system" means two or more
affiliated persons, one or more of which is an insurance
company as defined in paragraph (e) of Section 2 of this Code.
    (c-5) "Internationally active insurance group" means an
insurance holding company system that:
        (1) includes an insurer registered under Section 4 of
    this Code; and
        (2) meets the following criteria:
            (A) premiums written in at least 3 countries;
            (B) the percentage of gross premiums written
        outside the United States is at least 10% of the
        insurance holding company system's total gross written
        premiums; and
            (C) based on a 3-year rolling average, the total
        assets of the insurance holding company system are at
        least $50,000,000,000 or the total gross written
        premiums of the insurance holding company system are
        at least $10,000,000,000.
    (d) (Blank).
    (d-1) "NAIC" means the National Association of Insurance
Commissioners.
    (d-5) "Non-operating holding company" is a general
business corporation functioning solely for the purpose of
forming, owning, acquiring, and managing subsidiary business
entities and having no other business operations not related
thereto.
    (d-10) "Own", "owned," or "owning" means shares (1) with
respect to which a person has title or to which a person's
nominee, custodian, or other agent has title and which such
nominee, custodian, or other agent is holding on behalf of the
person or (2) with respect to which a person (A) has purchased
or has entered into an unconditional contract, binding on both
parties, to purchase the shares, but has not yet received the
shares, (B) owns a security convertible into or exchangeable
for the shares and has tendered the security for conversion or
exchange, (C) has an option to purchase or acquire, or rights
or warrants to subscribe to, the shares and has exercised such
option, rights, or warrants, or (D) holds a securities futures
contract to purchase the shares and has received notice that
the position will be physically settled and is irrevocably
bound to receive the underlying shares. To the extent that any
affiliates of the stockholder or beneficial owner are acting
in concert with the stockholder or beneficial owner, the
determination of shares owned may include the effect of
aggregating the shares owned by the affiliate or affiliates.
Whether shares constitute shares owned shall be decided by the
Director in his or her reasonable determination.
    (e) "Person" means an individual, a corporation, a limited
liability company, a partnership, an association, a joint
stock company, a trust, an unincorporated organization, any
similar entity or any combination of the foregoing acting in
concert, but does not include any securities broker performing
no more than the usual and customary broker's function or
joint venture partnership exclusively engaged in owning,
managing, leasing or developing real or tangible personal
property other than capital stock.
    (e-5) "Policyholders' proxies" are proxies that give the
holder the right to vote for the election of the directors and
other corporate actions not in the day to day operations of the
company.
    (f) (Blank).
    (f-5) "Securityholder" of a specified person is one who
owns any security of such person, including common stock,
preferred stock, debt obligations, and any other security
convertible into or evidencing the right to acquire any of the
foregoing.
    (g) "Subsidiary" of a specified person is an affiliate
controlled by such person directly, or indirectly through one
or more intermediaries.
    (h) "Voting Security" is a security which gives to the
holder thereof the right to vote for the election of directors
and includes any security convertible into or evidencing a
right to acquire a voting security.
    (i) (Blank).
    (j) (Blank).
    (k) (Blank).
(Source: P.A. 98-609, eff. 1-1-14.)
 
    (215 ILCS 5/131.8)  (from Ch. 73, par. 743.8)
    Sec. 131.8. (1) After the statement required by Section
131.5 has been filed, the Director shall approve any merger,
consolidation or other acquisition of control referred to in
Section 131.4 unless the Director finds that:
        (a) after the change of control, the domestic company
    referred to in Section 131.4 would not be able to satisfy
    the requirements for the issuance of a license to write
    the line or lines of insurance for which it is presently
    licensed;
        (b) the effect of the merger, consolidation or other
    acquisition of control would be substantially to lessen
    competition in insurance in this State or tend to create a
    monopoly therein. In applying the competitive standard in
    this paragraph:
            (i) the informational requirements of subsection
        (3)(a) and the standards of subsection (4)(b) of
        Section 131.12a shall apply,
            (ii) the merger or other acquisition shall not be
        found substantially to lessen competition in insurance
        in this State or tend to create a monopoly therein if
        the Director finds that any of the situations meeting
        the criteria provided by subsection (4)(c) of Section
        131.12a exist, and
            (iii) the Director may condition the approval of
        the merger or other acquisition on the removal of the
        basis of disapproval within a specified period of
        time;
        (c) the financial condition of any acquiring party is
    such as might jeopardize the financial stability of the
    domestic company or jeopardize the interests of its
    policyholders;
        (d) the plans or proposals which the acquiring party
    has to liquidate the domestic company, sell its assets or
    consolidate or merge it with any person, or to make any
    other material change in its business or corporate
    structure or management, are unfair and unreasonable to
    policyholders of such company and not in the public
    interest; or
        (e) the competence, experience and integrity of those
    persons who would control the operation of the domestic
    company are such that it would not be in the best interests
    of policyholders of such company and of the insurance
    buying public to permit the merger, consolidation or other
    acquisition of control.
    (2) The Director may hold a public hearing on any merger,
consolidation or other acquisition of control referred to in
Section 131.4 if the Director determines that the statement
filed as required by Section 131.5 does not demonstrate
compliance with the standards referred to in subsection (1),
of this Section, or if he determines that such acquisition of
control is likely to be hazardous or prejudicial to the
insurance buying public.
    (3) The public hearing referred to in subsection (2) must
be held within 60 days after the statement required by Section
131.5 is filed, and at least 20 days' notice thereof must be
given by the Director to the person filing the statement and to
the domestic company. Not less than 7 days' notice of such
hearing must be given by the person filing the statement to
such other persons as may be designated by the Director and by
the company to its shareholders. The Director must make a
determination within 60 days after the conclusion of the
hearing. At the hearing, the person filing the statement, the
domestic company, any person to whom notice of the hearing was
sent, and any other person whose interests may be affected
thereby has the right to present evidence, examine and
cross-examine witnesses, and offer oral and written arguments
and in connection therewith is entitled to conduct discovery
proceedings in the same manner as is presently allowed in the
Circuit Courts of this State. All discovery proceedings must
be concluded not later than 3 days prior to the commencement of
the public hearing.
    (4) If the proposed acquisition of control will require
the approval of more than one state insurance commissioner,
the public hearing referred to in subsection (2) of this
Section may be held on a consolidated basis upon request of the
person filing the statement referred to in Section 131.5 of
this Code. Such person shall file the statement referred to in
Section 131.5 of this Code with the National Association of
Insurance Commissioners (NAIC) within 5 days after making the
request for a public hearing. A commissioner may opt out of a
consolidated hearing and shall provide notice to the applicant
of the opt out within 10 days after the receipt of the
statement referred to in Section 131.5 of this Code. A hearing
conducted on a consolidated basis shall be public and shall be
held within the United States before the commissioners of the
states in which the companies are domiciled. Such
commissioners shall hear and receive evidence. A commissioner
may attend such hearing in person or by telecommunication.
    (5) In connection with a change of control of a domestic
company, any determination by the Director that the person
acquiring control of the company shall be required to maintain
or restore the capital of the company to the level required by
the laws and regulations of this State shall be made not later
than 60 days after the filing of the statement required by
Section 131.5 of this Code.
(Source: P.A. 98-609, eff. 1-1-14.)
 
    (215 ILCS 5/131.20d new)
    Sec. 131.20d. Group-wide supervision of internationally
active insurance groups.
    (a) The Director is authorized to act as the group-wide
supervisor for any internationally active insurance group in
accordance with the provisions of this Section.
    (b) The Director may otherwise acknowledge another
regulatory official as the group-wide supervisor where the
internationally active insurance group:
        (1) does not have substantial insurance operations in
    the United States;
        (2) has substantial insurance operations in the United
    States, but not in this State; or
        (3) has substantial insurance operations in the United
    States and this State, but the Director has determined
    pursuant to the factors set forth in subsections (d) and
    (h) that the other regulatory official is the appropriate
    group-wide supervisor.
    (c) An insurance holding company system that does not
otherwise qualify as an internationally active insurance group
may request that the Director make a determination or
acknowledgment as to a group-wide supervisor pursuant to this
Section.
    (d) In cooperation with other state, federal, and
international regulatory agencies, the Director will identify
a single group-wide supervisor for an internationally active
insurance group. The Director may determine that the Director
is the appropriate group-wide supervisor for an
internationally active insurance group that conducts
substantial insurance operations concentrated in this State.
However, the Director may acknowledge that a regulatory
official from another jurisdiction is the appropriate
group-wide supervisor for the internationally active insurance
group. A regulatory official identified under this Section as
the group-wide supervisor may determine that it is appropriate
to acknowledge another supervisor to serve as the group-wide
supervisor. The acknowledgment of the group-wide supervisor
shall be made after consideration of the factors listed in
paragraphs (1) through (5) of this subsection, and shall be
made in cooperation with and subject to the acknowledgment of
other regulatory officials involved with supervision of
members of the internationally active insurance group, and in
consultation with the internationally active insurance group.
The Director shall consider the following factors when making
a determination or acknowledgment under this subsection:
        (1) the place of domicile of the insurance companies
    within the internationally active insurance group that
    hold the largest share of the group's written premiums,
    assets, or liabilities;
        (2) the place of domicile of the top-tiered insurance
    company or companies in the insurance holding company
    system of the internationally active insurance group;
        (3) the location of the executive offices or largest
    operational offices of the internationally active
    insurance group;
        (4) whether another regulatory official is acting or
    is seeking to act as the group-wide supervisor under a
    regulatory system that the Director determines to be:
            (A) substantially similar to the system of
        regulation provided under the laws of this State; or
            (B) otherwise sufficient in terms of providing for
        group-wide supervision, enterprise risk analysis, and
        cooperation with other regulatory officials; and
        (5) whether another regulatory official acting or
    seeking to act as the group-wide supervisor provides the
    Director with reasonably reciprocal recognition and
    cooperation.
    (e) Notwithstanding any other provision of law, when
another regulatory official is acting as the group-wide
supervisor of an internationally active insurance group, the
Director shall acknowledge that regulatory official as the
group-wide supervisor. However, in the event of a material
change in the internationally active insurance group that
results in:
        (1) the internationally active insurance group's
    insurance companies domiciled in this State holding the
    largest share of the group's premiums, assets, or
    liabilities; or
        (2) this State being the place of domicile of the
    top-tiered insurance company or companies in the insurance
    holding company system of the internationally active
    insurance group, the Director shall make a determination
    or acknowledgment as to the appropriate group-wide
    supervisor for such an internationally active insurance
    group pursuant to subsection (d).
    (f) The Director is authorized to collect from any company
registered pursuant to Section 131.13 all information
necessary to determine whether the Director may act as the
group-wide supervisor of an internationally active insurance
group or if the Director may acknowledge another regulatory
official to act as the group-wide supervisor. Before issuing a
determination that an internationally active insurance group
is subject to group-wide supervision by the Director, the
Director shall notify the company registered pursuant to
Section 131.13 and the ultimate controlling person within the
internationally active insurance group. The internationally
active insurance group shall have not less than 30 days to
provide the Director with additional information pertinent to
the pending determination. The Department shall publish on its
Internet website the identity of internationally active
insurance groups that the Director has determined are subject
to group-wide supervision by the Director.
    (g) If the Director is the group-wide supervisor for an
internationally active insurance group, the Director is
authorized to engage in any of the following group-wide
supervision activities:
        (1) assess the enterprise risks within the
    internationally active insurance group to ensure that:
            (A) the material financial condition and liquidity
        risks to the members of the internationally active
        insurance group that are engaged in the business of
        insurance are identified by management; and
            (B) reasonable and effective mitigation measures
        are in place;
        (2) request, from any member of an internationally
    active insurance group subject to the Director's
    supervision, information necessary and appropriate to
    assess enterprise risk, including, but not limited to,
    information about the members of the internationally
    active insurance group regarding:
            (A) governance, risk assessment, and management;
            (B) capital adequacy; and
            (C) material intercompany transactions;
        (3) coordinate and, through the authority of the
    regulatory officials of the jurisdictions where members of
    the internationally active insurance group are domiciled,
    compel development and implementation of reasonable
    measures designed to ensure that the internationally
    active insurance group is able to timely recognize and
    mitigate enterprise risks to members of such
    internationally active insurance group that are engaged in
    the business of insurance;
        (4) communicate with other state, federal, and
    international regulatory agencies for members within the
    internationally active insurance group and share relevant
    information subject to the confidentiality provisions of
    Section 131.22, through supervisory colleges as set forth
    in Section 131.20c or otherwise;
        (5) enter into agreements with or obtain documentation
    from any company registered under Section 131.13, any
    member of the internationally active insurance group, and
    any other state, federal, and international regulatory
    agencies for members of the internationally active
    insurance group, providing the basis for or otherwise
    clarifying the Director's role as group-wide supervisor,
    including provisions for resolving disputes with other
    regulatory officials. Such agreements or documentation
    shall not serve as evidence in any proceeding that any
    company or person within an insurance holding company
    system not domiciled or incorporated in this State is
    doing business in this State or is otherwise subject to
    jurisdiction in this State; and
        (6) other group-wide supervision activities,
    consistent with the authorities and purposes enumerated
    above, as considered necessary by the Director.
    (h) If the Director acknowledges that another regulatory
official from a jurisdiction that is not accredited by the
NAIC is the group-wide supervisor, the Director is authorized
to reasonably cooperate, through supervisory colleges or
otherwise, with group-wide supervision undertaken by the
group-wide supervisor, provided that:
        (1) the Director's cooperation is in compliance with
    the laws of this State; and
        (2) the regulatory official acknowledged as the
    group-wide supervisor also recognizes and cooperates with
    the Director's activities as a group-wide supervisor for
    other internationally active insurance groups where
    applicable. Where such recognition and cooperation is not
    reasonably reciprocal, the Director is authorized to
    refuse recognition and cooperation.
    (i) The Director is authorized to enter into agreements
with or obtain documentation from any company registered under
Section 131.13, any affiliate of the company, and other state,
federal, and international regulatory agencies for members of
the internationally active insurance group that provide the
basis for or otherwise clarify a regulatory official's role as
group-wide supervisor.
    (j) The Department may adopt regulations necessary for the
administration of this Section.
    (k) A registered company subject to this Section shall be
liable for and shall pay the reasonable expenses of the
Director's participation in the administration of this
Section, including the engagement of attorneys, actuaries, and
any other professionals and all reasonable travel expenses.
 
    (215 ILCS 5/131.22)  (from Ch. 73, par. 743.22)
    Sec. 131.22. Confidential treatment.
    (a) Documents, materials, or other information in the
possession or control of the Department that are obtained by
or disclosed to the Director or any other person in the course
of an examination or investigation made pursuant to this
Article and all information reported or provided to the
Department pursuant to paragraphs (12) and (13) of Section
131.5 and Sections 131.13 through 131.21 this Article shall be
confidential by law and privileged, shall not be subject to
the Illinois Freedom of Information Act, shall not be subject
to subpoena, and shall not be subject to discovery or
admissible in evidence in any private civil action. However,
the Director is authorized to use the documents, materials, or
other information in the furtherance of any regulatory or
legal action brought as a part of the Director's official
duties. The Director shall not otherwise make the documents,
materials, or other information public without the prior
written consent of the company to which it pertains unless the
Director, after giving the company and its affiliates who
would be affected thereby prior written notice and an
opportunity to be heard, determines that the interest of
policyholders, shareholders, or the public shall be served by
the publication thereof, in which event the Director may
publish all or any part in such manner as may be deemed
appropriate.
    (b) Neither the Director nor any person who received
documents, materials, or other information while acting under
the authority of the Director or with whom such documents,
materials, or other information are shared pursuant to this
Article shall be permitted or required to testify in any
private civil action concerning any confidential documents,
materials, or information subject to subsection (a) of this
Section.
    (c) In order to assist in the performance of the
Director's duties, the Director:
        (1) may share documents, materials, or other
    information, including the confidential and privileged
    documents, materials, or information subject to subsection
    (a) of this Section, with other state, federal, and
    international regulatory agencies, with the NAIC and its
    affiliates and subsidiaries, and with third-party
    consultants, and with state, federal, and international
    law enforcement authorities and regulatory agencies,
    including members of any supervisory college allowed by
    this Article, provided that the recipient agrees in
    writing to maintain the confidentiality and privileged
    status of the document, material, or other information,
    and has verified in writing the legal authority to
    maintain confidentiality;
        (1.5) notwithstanding paragraph (1) of this subsection
    (c), may only share confidential and privileged documents,
    material, or information reported pursuant to Section
    131.14b with commissioners of states having statutes or
    regulations substantially similar to subsection (a) of
    this Section and who have agreed in writing not to
    disclose such information; and
        (2) may receive documents, materials, or information,
    including otherwise confidential and privileged documents,
    materials, or information from the NAIC and its affiliates
    and subsidiaries and from regulatory and law enforcement
    officials of other foreign or domestic jurisdictions, and
    shall maintain as confidential or privileged any document,
    material, or information received with notice or the
    understanding that it is confidential or privileged under
    the laws of the jurisdiction that is the source of the
    document, material, or information; any such documents,
    materials, or information, while in the Director's
    possession, shall not be subject to the Illinois Freedom
    of Information Act and shall not be subject to subpoena. ;
    and
    (c-5) Written (3) shall enter into written agreements with
the NAIC or third-party consultants governing sharing and use
of information provided pursuant to this Article consistent
with this subsection (c) that shall:
        (1) (i) specify procedures and protocols regarding the
    confidentiality and security of information shared with
    the NAIC and its affiliates and subsidiaries or
    third-party consultants pursuant to this Article,
    including procedures and protocols for sharing by the NAIC
    with other state, federal, or international regulators;
        (2) (ii) specify that ownership of information shared
    with the NAIC and its affiliates and subsidiaries or
    third-party consultants pursuant to this Article remains
    with the Director and the NAIC's or third-party
    consultant's use of the information is subject to the
    direction of the Director;
        (3) (iii) require prompt notice to be given to a
    company whose confidential information in the possession
    of the NAIC or third-party consultant pursuant to this
    Article is subject to a request or subpoena to the NAIC for
    disclosure or production; and
        (4) (iv) require the NAIC and its affiliates and
    subsidiaries or third-party consultants to consent to
    intervention by a company in any judicial or
    administrative action in which the NAIC and its affiliates
    and subsidiaries or third-party consultants may be
    required to disclose confidential information about the
    company shared with the NAIC and its affiliates and
    subsidiaries or third-party consultants pursuant to this
    Article.
    (d) The sharing of documents, materials, or information by
the Director pursuant to this Article shall not constitute a
delegation of regulatory authority or rulemaking, and the
Director is solely responsible for the administration,
execution, and enforcement of the provisions of this Article.
    (e) No waiver of any applicable privilege or claim of
confidentiality in the documents, materials, or information
shall occur as a result of disclosure to the Director under
this Section or as a result of sharing as authorized in
subsection (c) of this Section.
    (f) Documents, materials, or other information in the
possession or control of the NAIC or a third-party consultant
pursuant to this Article shall be confidential by law and
privileged, shall not be subject to the Illinois Freedom of
Information Act, shall not be subject to subpoena, and shall
not be subject to discovery or admissible in evidence in any
private civil action.
(Source: P.A. 98-609, eff. 1-1-14.)
 
    (215 ILCS 5/131.9a rep.)
    (215 ILCS 5/131.14d rep.)
    Section 10. The Illinois Insurance Code is amended by
repealing Sections 131.9a and 131.14d.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/16/2021