[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Engrossed ] | [ Enrolled ] |
91_HB1355
LRB9105071JStm
1 AN ACT to amend the Illinois Insurance Code by changing
2 Sections 107.15a and 107.29.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 changing Sections 107.15a and 107.29 as follows:
7 (215 ILCS 5/107.15a) (from Ch. 73, par. 719.15a)
8 Sec. 107.15a. Duties and powers of trustees. The Board
9 of Trustees shall have such power as may be necessary for the
10 management and operations of the Exchange and the
11 Association. Such powers shall include but not be limited
12 to:
13 (a) establishment of the qualifications,
14 requirements, limitations and obligations for syndicates,
15 limited syndicates, subscribers, and Exchange brokers;
16 (b) denying access to the Exchange to applicants
17 which do not meet such qualifications, requirements, and
18 obligations;
19 (c) imposing penalties on syndicates, limited
20 syndicates, subscribers and Exchange brokers for
21 violations of the regulations of the Exchange or orders
22 of the Board;
23 (d) assessing fees annually on syndicates, limited
24 syndicates, subscribers and Exchange brokers, and making
25 assessments on syndicates, limited syndicates and
26 subscribers for the expenses of the Exchange;
27 (e) suspending, in whole or in part, access to the
28 Exchange or expelling syndicates, limited syndicates,
29 subscribers or Exchange brokers who do not continue to
30 meet the qualifications, requirements, and obligations
31 established by the Board, who fail or refuse to pay
-2- LRB9105071JStm
1 penalties, fees, or assessments when due, or whose
2 continued operation the Board determines would be
3 injurious to the best interests of the Exchange,
4 policyholders, claimants, or creditors;
5 (f) obtaining immediate access for the benefit of
6 the Illinois Insurance Exchange Immediate Access Security
7 Association to the following assets of the impaired or
8 insolvent syndicate:
9 (i) the full amount held in its security trust
10 or custodial account; and
11 (ii) the assets of its subscribers under their
12 certificates of guaranty.
13 (Source: P.A. 88-45; 89-206, eff. 7-21-95.)
14 (215 ILCS 5/107.29)
15 Sec. 107.29. Exchange operations runoff.
16 (a) The Board may adopt a plan of operation for the
17 orderly runoff of the operations of the exchange. The plan
18 of operation shall provide that all funds, legal rights,
19 title to property, and causes of action of the Illinois
20 Insurance Exchange including, but not limited to, all
21 assessments, subscription payments, proceeds, investments,
22 premium fees, surcharge receipts, and funds maintained under
23 Sections 107.26 and 107.27 and the rules or regulations of
24 the Illinois Insurance Exchange implementing those Sections
25 or any other provision of this Article, shall be accounted
26 for and paid over to the Director as receiver of any
27 delinquent syndicate in receivership after settlement of all
28 claims against the exchange.
29 (1) In the event that 2 or more syndicates are then
30 in receivership, the amount paid over to each estate
31 shall be proportional to the relative size of the surplus
32 deficiency of each.
33 (2) Any excess remaining after the payment of any
-3- LRB9105071JStm
1 and all claims against such receivership estates shall be
2 transferred, in equal shares, to the domestic companies
3 which result from the reorganization, merger, or
4 consolidation of former syndicates of the Illinois
5 Insurance Exchange.
6 (b) For purposes of this Section, "syndicate" means a
7 syndicate or a limited syndicate.
8 (Source: P.A. 90-499, eff. 8-19-97.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.