Bill Text: IL HB4451 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Authorizes the Illinois Insurance Guaranty Fund, at the direction of its board of directors and subject to the approval of the Director of Insurance, to form and own a not-for-profit corporation to which the Fund may delegate certain of its powers and duties provided by the Code. Allows the not-for-profit corporation to contract to provide services to the Office of Special Deputy Receiver or any other person or organization authorized by law to carry out the duties of the Director in the capacity of receiver under specified provisions of the Code, the Illinois Life and Health Insurance Guaranty Association, and organizations in another state similar to the Illinois Insurance Guaranty Fund or the Illinois Life and Health Insurance Guaranty Association. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-02-03 - Referred to Rules Committee [HB4451 Detail]

Download: Illinois-2019-HB4451-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4451 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
215 ILCS 5/537.9 from Ch. 73, par. 1065.87-9
215 ILCS 5/538 from Ch. 73, par. 1065.88
215 ILCS 5/538.2 from Ch. 73, par. 1065.88-2
215 ILCS 5/538.10 new
Amends the Illinois Insurance Code. Authorizes the Illinois Insurance Guaranty Fund, at the direction of its board of directors and subject to the approval of the Director of Insurance, to form and own a not-for-profit corporation to which the Fund may delegate certain of its powers and duties provided by the Code. Allows the not-for-profit corporation to contract to provide services to the Office of Special Deputy Receiver or any other person or organization authorized by law to carry out the duties of the Director in the capacity of receiver under specified provisions of the Code, the Illinois Life and Health Insurance Guaranty Association, and organizations in another state similar to the Illinois Insurance Guaranty Fund or the Illinois Life and Health Insurance Guaranty Association. Effective immediately.
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A BILL FOR
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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 537.9, 538, and 538.2 and by adding Section
538.10 as follows:
(215 ILCS 5/537.9) (from Ch. 73, par. 1065.87-9)
Sec. 537.9. The Fund shall handle claims through its
employees or through one or more companies or other persons
employed as servicing facilities including a corporation
formed pursuant to Section 538.10 of this Code.
(Source: P.A. 85-576.)
(215 ILCS 5/538) (from Ch. 73, par. 1065.88)
Sec. 538. Powers of the Fund.
The Fund shall have the powers enumerated in the Sections
following this Section and preceding Section 539 538.1 through
538.8.
(Source: P.A. 77-305.)
(215 ILCS 5/538.2) (from Ch. 73, par. 1065.88-2)
Sec. 538.2. The Fund may employ or retain such persons as
are necessary to handle claims and perform other duties of the

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Fund or may delegate such functions to a corporation formed
pursuant to Section 538.10 of this Code.
(Source: P.A. 77-305.)
(215 ILCS 5/538.10 new)
Sec. 538.10. Delegation of powers to not-for-profit
corporation. The Fund may, at the direction of its board of
directors and subject to the approval of the Director, form and
own a not-for-profit corporation domiciled in this State to
which the Fund may delegate in its plan of operation any or all
powers and duties of the Fund, except those provided by
Sections 537.6 and 538.3 of this Code. The not-for-profit
corporation may contract to provide services to any or all of
the following types of organizations: (a) the Office of Special
Deputy Receiver or any other person or organization authorized
by law to carry out the duties of the Director in the capacity
as a receiver under Article XIII of this Code; (b) the Illinois
Life and Health Insurance Guaranty Association; and (c)
organizations in another state similar to the Fund or the
Illinois Life and Health Insurance Guaranty Association. The
not-for-profit corporation is authorized to contract pursuant
to this Section upon the board of directors' written
determination that the provisioning of such services will
advance the purposes set forth in Section 532 of this Code,
provided that any such contract with a similar organization
described in item (c) of this Section shall be subject to the

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prior approval of the Director.
Section 99. Effective date. This Act takes effect upon
becoming law.