Bill Text: IL HB4367 | 2023-2024 | 103rd General Assembly | Introduced

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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-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4367 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
215 ILCS 5/532 from Ch. 73, par. 1065.82
215 ILCS 5/538.7 from Ch. 73, par. 1065.88-7
Amends the Illinois Insurance Guaranty Fund Article of the Illinois Insurance Code. In provisions authorizing the Illinois Insurance Guaranty Fund to contract with the Office of Special Deputy Receiver or any other person or organizations authorized by law to carry out the duties of the Director of Insurance in her or his capacity as a receiver and specifying a purpose of the Article, deletes language providing that those provisions are inoperative 5 years after August 16, 2021 (the effective date of Public Act 102-396). Effective immediately.
LRB103 35503 RPS 65574 b
A BILL FOR
HB4367 LRB103 35503 RPS 65574 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Sections 532 and 538.7 as follows:
(215 ILCS 5/532) (from Ch. 73, par. 1065.82)
Sec. 532. Purpose.
(a) The purpose of this Article is to provide a mechanism
for the payment of covered claims under certain insurance
policies, to avoid excessive delay in payment of covered
claims, to avoid financial loss to claimants or policyholders
because of the entry of an Order of Liquidation against an
insolvent company, including through services offered to the
Director in her or his capacity as receiver under Article XIII
of this Code that relate to covered claims, to provide a Fund
to assess among member companies the costs of such protection
and maintain the continuity and self-sufficient operation of
the Fund, and to offset the costs associated with maintaining
the Fund's continuity and self-sufficient operations when
practical by providing assistance and services to the Director
in her or his capacity as receiver under Article XIII of this
Code as described in this Section.
(b) The purpose of this Article is also to provide a

HB4367 - 2 - LRB103 35503 RPS 65574 b
mechanism for the Fund to participate in and facilitate the
process by which the assets of an insolvent company are
marshaled and distributed pursuant to Article XIII of this
Code beyond reimbursing the cost of covered claims. This
subsection (b) is inoperative 5 years after the effective date
of this amendatory Act of the 102nd General Assembly.
(Source: P.A. 102-396, eff. 8-16-21.)
(215 ILCS 5/538.7) (from Ch. 73, par. 1065.88-7)
Sec. 538.7. (a) The Fund may perform such other acts as are
necessary or proper to effectuate the purposes of this
Article.
(b) The Fund may contract with the Office of Special
Deputy Receiver or any other person or organizations
authorized by law to carry out the duties of the Director in
her or his capacity as a receiver under Article XIII of this
Code. The power of the Fund to contract with these persons or
entities includes, but is not limited to, providing consulting
services and claims administration services that assist with
these persons or entities in the performance of their
respective statutory and legal functions provided by law. The
Fund may only exercise the authority to contract pursuant to
this subsection upon the board of director's written
determination that the provisioning of such services will
advance the purposes set forth in Section 532. Any contract
the Fund may enter into to provide services pursuant to this

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subsection shall be subordinate and subject to the Fund's
statutory obligations to timely pay covered claims and avoid
financial loss to claimants or policyholders described in this
Article.
This subsection (b) is inoperative 5 years after the
effective date of this amendatory Act of the 102nd General
Assembly.
(Source: P.A. 102-396, eff. 8-16-21.)