90th General Assembly
Summary of SB1728
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Senate Sponsors:
PETERSON.

House Sponsors:
BRADY-MAUTINO

Short description: 
INSURANCE-LLOYDS-RISK                                                      

Synopsis of Bill as introduced:
        Amends the Illinois Insurance Code.  Removes  the  limit  on  the      
   amount of insurance a Lloyds may underwrite with respect to any single      
   risk.  Effective immediately.                                               
        HOUSE AMENDMENT NO. 1.                                                 
          Adds reference to:                                                   
          215 ILCS 5/35A-5                                                     
          215 ILCS 5/35A-20                                                    
          215 ILCS 5/35A-35                                                    
          215 ILCS 5/107.06a              from Ch. 73, par. 719.06a            
          215 ILCS 5/107.26               from Ch. 73, par. 719.26             
          215 ILCS 5/111                  from Ch. 73, par. 723                
          215 ILCS 5/121-2.08             from Ch. 73, par. 733-2.08           
          215 ILCS 5/123C-1               from Ch. 73, par. 735C-1             
          215 ILCS 5/126.2                                                     
          215 ILCS 5/143                  from Ch. 73, par. 755                
          215 ILCS 5/445                  from Ch. 73, par. 1057               
          215 ILCS 5/445a new                                                  
          215 ILCS 5/3.1 rep.                                                  
          215 ILCS 113/10                                                      
          215 ILCS 113/15                                                      
          215 ILCS 113/20                                                      
          215 ILCS 113/25                                                      
          215 ILCS 113/30                                                      
          215 ILCS 113/40                                                      
          215 ILCS 113/50                                                      
          215 ILCS 113/56 new                                                  
          215 ILCS 113/35 rep.                                                 
          215 ILCS 113/55 rep.                                                 
          215 ILCS 110/35                 from Ch. 32, par. 690.35             
          215 ILCS 120/4                  from Ch. 73, par. 1254               
          215 ILCS 120/12                 from Ch. 73, par. 1262               
          215 ILCS 165/20                 from Ch. 32, par. 614                
        Amends the Illinois Insurance Code in relation to the  regulation      
   of  company  finances.   Revises the definition of "qualified business      
   entity" with respect  to  lending  arrangements  by  domestic  captive      
   companies.   Invalidates  possessory  liens  held  by an attorney as a      
   basis for withholding files or otherwise with respect to a company  in      
   rehabilitation or liquidation.  Provides for the existence of domestic      
   surplus  lines  insurers.   Requires reports to the Director regarding      
   fire insurance procured only from unauthorized insurers subject to tax      
   under  the  Fire  Investigation  Act.  Excludes   limited   syndicates      
   organized  as  partnerships  from  certain  provisions of the Illinois      
   Insurance Code.  Changes the name of the Illinois  Insurance  Exchange      
   Immediate Access Security Association to the Immediate Access Security      
   Association.    Provides  that  the  Association  will  pay  insurance      
   obligations on claims rather than liability based on claims.    Amends      
   the  Dental  Service  Plan Act and the Voluntary Health Services Plans      
   Act to limit certain contingent reserves to  $1,500,000.   Amends  the      
   Farm  Mutual  Insurance  Company  Act  of 1986 to authorize additional      
   investment opportunities. Amends the  Employee  Leasing  Company  Act.      
   Provides  that  the  Act applies to lessors of employees and insurers.      
   Imposes  record  keeping  requirements  upon  lessors  of   employees.      
   Changes  terminology  for  "employee  leasing company" to "lessor" and      
   "client company" to "lessee".  Specifically grants the  Department  of      
   Insurance  rulemaking  authority.   Establishes  specific  grounds for      
   revocation  or  denial  of  registration.   Abolishes   all   criminal      
   penalties.  Effective  immediately except that provisions amending the      
   Farm Mutual Insurance Company Act take effect January 1, 1999.              
          FISCAL NOTE, H-AM 1 (Dpt. Insurance)                                 
          No fiscal impact on the Department.                                  
          STATE MANDATES ACT FISCAL NOTE, H-AM 1                               
          SB 1728 fails to create a State mandate.                             
          HOME RULE NOTE, H-AM 1                                               
          The bill fails to preempt home rule authority.                       
 
Last action on Bill: PUBLIC ACT.............................. 90-0794

   Last action date: 98-08-14

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   0


   END OF INQUIRY 
                                                                               



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