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

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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-Enrolled.html

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HB4367 Enrolled 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 Section 534.4 as follows:
(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

HB4367 Enrolled - 2 - LRB103 35503 RPS 65574 b
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.)