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90_SJ0069
LRB9012218JSdvB
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
5 RESOLVED, BY THE SENATE OF THE NINETIETH GENERAL ASSEMBLY
6 OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES
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.