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| Public Act 094-0538 |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Currency Exchange Act is amended by changing | ||||
Section 6 as follows:
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(205 ILCS 405/6) (from Ch. 17, par. 4813)
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Sec. 6. Insurance against loss. | ||||
(a) Every applicant for a license hereunder
shall, after | ||||
his
application for a license has been approved, file with and | ||||
have approved
by the Secretary of Financial and Professional | ||||
Regulation
Director, a policy or policies of insurance issued | ||||
by an
insurance company or indemnity company authorized to do | ||||
business under
the law of this State, which shall insure the | ||||
applicant against loss by
theft, burglary, robbery or forgery | ||||
in a principal sum as hereinafter
provided; if the average | ||||
amount of cash and liquid funds to be kept on
hand in the | ||||
office of the community currency exchange during the year
will | ||||
not be in excess of $10,000 the policy or policies shall be in | ||||
the
principal sum of $10,000. If such average amount will be in | ||||
excess of
$10,000, the policy or policies shall be for an | ||||
additional principal sum
of $500 for each $1,000 or fraction | ||||
thereof of such excess over the
original $10,000. From time to
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time, the Secretary
Director may determine the amount of cash | ||||
and liquid funds on
hand in the office of any community | ||||
currency exchange and shall require
the licensee to submit | ||||
additional policies if the same are determined to
be necessary | ||||
in accordance with the requirements of this Section. | ||||
However, any community currency exchange licensed under | ||||
this Act may meet the bonding requirements of this subsection | ||||
(a) by submitting evidence satisfactory to the Secretary that | ||||
the licensee is covered by a blanket bond that covers multiple | ||||
licensees. The blanket bond: (i) shall insure the licensee | ||||
against loss by theft, robbery, or forgery; (ii) shall be | ||
issued by a bonding company authorized to do business in this | ||
State; and (iii) shall be in the principal sum of an amount | ||
equal to the maximum amount required under this Section for any | ||
one licensee covered by the bond.
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Any such policy or policies, with respect to forgery, may | ||
carry a
condition that the community currency exchange assumes | ||
the first $1,000 of
each claim thereunder.
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(b) Before an ambulatory currency exchange shall sell or
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issue money orders,
it shall file with and
have approved by the | ||
Secretary
Director, a policy or policies of
insurance issued by | ||
an insurance company or indemnity company
authorized to do | ||
business under the laws of this State, which
shall insure such | ||
ambulatory currency exchange against loss
by theft, burglary, | ||
robbery, forgery or embezzlement in the
principal sum of not | ||
less than $500,000. If the average amount
of cash and liquid | ||
funds to be kept on hand during the year
will exceed $500,000, | ||
the policy or policies shall be for an
additional principal sum | ||
of $500 for each $1,000 or fraction
thereof in excess of | ||
$500,000. From time to time the Secretary
Director may | ||
determine
the amount of cash and liquid funds kept on hand by | ||
an ambulatory
currency exchange and shall require it to submit | ||
such additional
policies as are determined to be required | ||
within the limits of
this Section. No ambulatory currency | ||
exchange subject to
this Section shall be required to furnish | ||
more than one policy
of insurance if the policy furnished | ||
insures it against the
foregoing losses at all locations served | ||
by it.
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Any such policy may contain a condition that the insured
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assumes a portion of the loss, provided the insured shall file
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with such policy a sworn financial statement indicating its
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ability to act as self-insurer in the amount of such deductible
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portion of the policy without prejudice to the safety of any
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funds belonging to its customers. If the Secretary
Director is | ||
not
satisfied as to the financial ability of the ambulatory | ||
currency
exchange, he may require it to deposit cash or United | ||
States Government
Bonds in the amount of part or
all of the | ||
deductible portion of the policy.
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(Source: P.A. 92-271, eff. 8-7-01.)
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