Bill Text: IL SB1718 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Illinois Insurance Code. Provides that subject to the restrictions provided in the Article concerning life and health insurers, an insurer may invest in bonds, notes, warrants, and other securities not in default that are the direct obligations of the government of any foreign country that is a member of the Organisation for Economic Co-operation and Development (OECD) and for which the full faith and credit of such government has been pledged for the payment of principal and interest, provided that (i) the debt of the issuing country has been rated as investment grade for at least 10 years immediately before the time of acquiring the obligations by at least 2 of the major ratings agencies, including Moody's Investors Service, Standard & Poor's Rating Services, Fitch Rating, and the Securities Valuation Office of the National Association of Insurance Commissioners and (ii) the issuing country has not defaulted and has met its payment obligations in a timely manner on all similar obligations for a period of at least 30 years immediately before the time of acquiring the obligations.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-08-27 - Public Act . . . . . . . . . 98-0571 [SB1718 Detail]

Download: Illinois-2013-SB1718-Introduced.html

---

98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB1718 Introduced 2/15/2013, by Sen. Ira I. Silverstein SYNOPSIS AS INTRODUCED:
215 ILCS 5/126.11a new
Amends the Illinois Insurance Code. Provides that subject to the restrictions provided in the Article concerning life and health insurers, an insurer may invest in bonds, notes, warrants, and other securities not in default that are the direct obligations of the government of any foreign country that is a member of the Organisation for Economic Co-operation and Development (OECD) and for which the full faith and credit of such government has been pledged for the payment of principal and interest, provided that (i) the debt of the issuing country has been rated as investment grade for at least 10 years immediately before the time of acquiring the obligations by at least 2 of the major ratings agencies, including Moody's Investors Service, Standard & Poor's Rating Services, Fitch Rating, and the Securities Valuation Office of the National Association of Insurance Commissioners and (ii) the issuing country has not defaulted and has met its payment obligations in a timely manner on all similar obligations for a period of at least 30 years immediately before the time of acquiring the obligations.
LRB098 10029 RPM 40188 b
A BILL FOR
SB1718 LRB098 10029 RPM 40188 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 adding
Section 126.11a as follows:
(215 ILCS 5/126.11a new)
Sec. 126.11a. Investments in direct obligations of
governments of foreign countries. Subject to the restrictions
provided in this Article, an insurer may invest in bonds,
notes, warrants, and other securities not in default that are
the direct obligations of the government of any foreign country
that is a member of the Organisation for Economic Co-operation
and Development (OECD) and for which the full faith and credit
of such government has been pledged for the payment of
principal and interest, provided that (i) the debt of the
issuing country has been rated as investment grade for at least
10 years immediately before the time of acquiring the
obligations by at least 2 of the major ratings agencies,
including Moody's Investors Service, Standard & Poor's Rating
Services, Fitch Rating, and the Securities Valuation Office of
the National Association of Insurance Commissioners and (ii)
the issuing country has not defaulted and has met its payment
obligations in a timely manner on all similar obligations for a

SB1718 - 2 - LRB098 10029 RPM 40188 b
period of at least 30 years immediately before the time of
acquiring the obligations.