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91_HB1355eng HB1355 Engrossed 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 HB1355 Engrossed -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 theIllinois Insurance ExchangeImmediate 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 theIllinois20InsuranceExchange 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 theIllinois InsuranceExchange 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 HB1355 Engrossed -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.