Bill Text: IL HB4367 | 2023-2024 | 103rd General Assembly | Chaptered
Bill Title: Amends the Illinois Insurance Guaranty Fund Article of the Illinois Insurance Code. Provides that when a policy obligation is assumed or allocated through merger, division, insurance business transfer, consolidation, or reinsurance, nothing in the definition of "insolvent company" shall be construed to create Illinois Insurance Guaranty Fund coverage if none existed at the time of assumption or allocation or to destroy Illinois Insurance Guaranty Fund coverage if it existed at the time of assumption or allocation. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-0815 [HB4367 Detail]
Download: Illinois-2023-HB4367-Chaptered.html
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| Public Act 103-0815 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Section 534.4 as follows:
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(215 ILCS 5/534.4) (from Ch. 73, par. 1065.84-4) | ||||
Sec. 534.4. "Insolvent company" means a company organized | ||||
as a stock company, mutual company, reciprocal or Lloyds (a) | ||||
which holds a certificate of authority to transact insurance | ||||
in this State either at the time the policy was issued or when | ||||
the insured event occurred, or any company which has assumed | ||||
or has been allocated such policy obligation through merger, | ||||
division, insurance business transfer, consolidation, or | ||||
reinsurance, whether or not such assuming company held a | ||||
certificate of authority to transact insurance in this State | ||||
at the time such policy was issued or when the insured event | ||||
occurred; and (b) against which a final Order of Liquidation | ||||
with a finding of insolvency to which there is no further right | ||||
of appeal has been entered by a court of competent | ||||
jurisdiction in the company's State of domicile after the | ||||
effective date of this Article. When a policy obligation is | ||||
assumed or allocated through merger, division, insurance | ||||
business transfer, consolidation, or reinsurance, nothing in | ||||
this Section shall be construed to create Fund coverage if | ||
none existed at the time of assumption or allocation or to | ||
destroy Fund coverage if it existed at the time of assumption | ||
or allocation. | ||
(Source: P.A. 103-75, eff. 6-9-23.)
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