Bill Text: IL SB1460 | 2009-2010 | 96th General Assembly | Engrossed


Bill Title: Amends the Department of Insurance Law of the Civil Administrative Code of Illinois. Provides that Executive Order No. 2004-6 is superseded by the Act. Abolishes the Division of Insurance within the Department of Financial and Professional Regulation and creates the Department of Insurance. Transfers all the powers, duties, rights, and responsibilities of the Division of Insurance within the Department of Financial and Professional Regulation to the Department of Insurance. Effective July 1, 2009.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2009-05-08 - Rule 19(a) / Re-referred to Rules Committee [SB1460 Detail]

Download: Illinois-2009-SB1460-Engrossed.html



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1 AN ACT concerning insurance.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Department of Insurance Law of the Civil
5 Administrative Code of Illinois is amended by adding Section
6 1405-35 as follows:
7 (20 ILCS 1405/1405-35 new)
8 Sec. 1405-35. The Department of Insurance.
9 (a) Executive Order No. 2004-6 is hereby superseded by this
10 amendatory Act of the 96th General Assembly to the extent that
11 Executive Order No. 2004-6 transfers the powers, duties,
12 rights, and responsibilities of the Department of Insurance to
13 the Division of Insurance within the Department of Financial
14 and Professional Regulation.
15 (b) The Division of Insurance within the Department of
16 Financial and Professional Regulation is hereby abolished and
17 the Department of Insurance is created as an independent
18 department. On July 1, 2009, all powers, duties, rights, and
19 responsibilities of the Division of Insurance within the
20 Department of Financial and Professional Regulation shall be
21 transferred to the Department of Insurance.
22 (c) The personnel of the Division of Insurance within the
23 Department of Financial and Professional Regulation shall be

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1 transferred to the Department of Insurance. The status and
2 rights of such employees under the Personnel Code shall not be
3 affected by the transfer. The rights of the employees and the
4 State of Illinois and its agencies under the Personnel Code and
5 applicable collective bargaining agreements or under any
6 pension, retirement, or annuity plan shall not be affected by
7 this amendatory Act. To the extent that an employee performs
8 duties for the Division of Insurance within the Department of
9 Financial and Professional Regulation and the Department of
10 Financial and Professional Regulation itself or any other
11 division or agency within the Department of Financial and
12 Professional Regulation, that employee shall be transferred at
13 the Governor's discretion.
14 (d) All books, records, papers, documents, property (real
15 and personal), contracts, causes of action, and pending
16 business pertaining to the powers, duties, rights, and
17 responsibilities transferred by this amendatory Act from the
18 Division of Insurance within the Department of Financial and
19 Professional Regulation to the Department of Insurance,
20 including, but not limited to, material in electronic or
21 magnetic format and necessary computer hardware and software,
22 shall be transferred to the Department of Insurance.
23 (e) All unexpended appropriations and balances and other
24 funds available for use by the Division of Insurance within the
25 Department of Financial and Professional Regulation shall be
26 transferred for use by the Department of Insurance pursuant to

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1 the direction of the Governor. Unexpended balances so
2 transferred shall be expended only for the purpose for which
3 the appropriations were originally made.
4 (f) The powers, duties, rights, and responsibilities
5 transferred from the Division of Insurance within the
6 Department of Financial and Professional Regulation by this
7 amendatory Act shall be vested in and shall be exercised by the
8 Department of Insurance.
9 (g) Whenever reports or notices are now required to be made
10 or given or papers or documents furnished or served by any
11 person to or upon the Division of Insurance within the
12 Department of Financial and Professional Regulation in
13 connection with any of the powers, duties, rights, and
14 responsibilities transferred by this amendatory Act, the same
15 shall be made, given, furnished, or served in the same manner
16 to or upon the Department of Insurance.
17 (h) This amendatory Act does not affect any act done,
18 ratified, or canceled or any right occurring or established or
19 any action or proceeding had or commenced in an administrative,
20 civil, or criminal cause by the Division of Insurance within
21 the Department of Financial and Professional Regulation before
22 this amendatory Act takes effect; such actions or proceedings
23 may be prosecuted and continued by the Department of Insurance.
24 (i) Any rules of the Division of Insurance within the
25 Department of Financial and Professional Regulation, including
26 any rules of its predecessor Department of Insurance, that

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1 relate to its powers, duties, rights, and responsibilities and
2 are in full force on the effective date of this amendatory Act
3 shall become the rules of the re-created Department of
4 Insurance. This amendatory Act does not affect the legality of
5 any such rules in the Illinois Administrative Code.
6 Any proposed rules filed with the Secretary of State by the
7 Division of Insurance within the Department of Financial and
8 Professional Regulation that are pending in the rulemaking
9 process on the effective date of this amendatory Act and
10 pertain to the powers, duties, rights, and responsibilities
11 transferred, shall be deemed to have been filed by the
12 Department of Insurance. As soon as practicable hereafter, the
13 Department of Insurance shall revise and clarify the rules
14 transferred to it under this amendatory Act to reflect the
15 reorganization of powers, duties, rights, and responsibilities
16 affected by this amendatory Act, using the procedures for
17 recodification of rules available under the Illinois
18 Administrative Procedures Act, except that existing title,
19 part, and section numbering for the affected rules may be
20 retained. The Department of Insurance may propose and adopt
21 under the Illinois Administrative Procedures Act such other
22 rules of the Division of Insurance within the Department of
23 Financial and Professional Regulation that will now be
24 administered by the Department of Insurance.
25 To the extent that, prior to July 1, 2009, the Director of
26 the Division of Insurance within the Department of Financial

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1 and Professional Regulation had been empowered to prescribe
2 rules or had other rulemaking authority jointly with the
3 Secretary of the Department of Financial and Professional
4 Regulation with regard to the powers, duties, rights, and
5 responsibilities of the Division of Insurance within the
6 Department of Financial and Professional Regulation, such
7 duties shall be exercised from and after July 1, 2009 solely by
8 the Director of the Department of Insurance.
9 Section 99. Effective date. This Act takes effect on July
10 1, 2009.
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