Bill Text: IL SB2877 | 2011-2012 | 97th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Insurance Code in the Article concerning insurance holding company systems. Makes changes to the definitions. Provides that a domestic company, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries, and that the subsidiaries may conduct any kind of business or businesses and their authority to do so shall not be limited by reason of the fact that they are subsidiaries of a domestic company. Makes changes to the provisions concerning a domestic company's permitted investments. Includes certain filing requirements in the provision concerning the acquisition of control of or merger with a domestic company. Makes changes to provisions concerning the statement that is required to be filed with the Director of Insurance. Deletes certain provisions concerning deposits made with the Director, orders entered by the Director, and reports of potential adverse economic impact made to the General Assembly by the Director. Makes changes to the provisions concerning certain violations, judicial jurisdiction, acquisitions, registration statements, reporting materials, termination of registration, disclaimers, prior notification, officers and directors, examination, confidential treatment, voting , sanctions, and judicial review. . Sets forth provisions concerning summary filing, enterprise risk filing, violations, and supervisory colleges. Repeals a provision concerning the delivery of certain filings. Contains a severability provision. Effective on January 1, 2013.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB2877 Detail]
Download: Illinois-2011-SB2877-Amended.html
Bill Title: Amends the Insurance Code in the Article concerning insurance holding company systems. Makes changes to the definitions. Provides that a domestic company, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries, and that the subsidiaries may conduct any kind of business or businesses and their authority to do so shall not be limited by reason of the fact that they are subsidiaries of a domestic company. Makes changes to the provisions concerning a domestic company's permitted investments. Includes certain filing requirements in the provision concerning the acquisition of control of or merger with a domestic company. Makes changes to provisions concerning the statement that is required to be filed with the Director of Insurance. Deletes certain provisions concerning deposits made with the Director, orders entered by the Director, and reports of potential adverse economic impact made to the General Assembly by the Director. Makes changes to the provisions concerning certain violations, judicial jurisdiction, acquisitions, registration statements, reporting materials, termination of registration, disclaimers, prior notification, officers and directors, examination, confidential treatment, voting , sanctions, and judicial review. . Sets forth provisions concerning summary filing, enterprise risk filing, violations, and supervisory colleges. Repeals a provision concerning the delivery of certain filings. Contains a severability provision. Effective on January 1, 2013.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB2877 Detail]
Download: Illinois-2011-SB2877-Amended.html
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1 | AMENDMENT TO SENATE BILL 2877
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2 | AMENDMENT NO. ______. Amend Senate Bill 2877 as follows:
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3 | on page 1, line 8, by replacing "131.24," with "131.23, 131.24, | ||||||
4 | 131.26,"; and
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5 | on page 1, line 9, by replacing "and 131.20c," with "131.20c, | ||||||
6 | 131.29, and 131.30,"; and
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7 | on page 3, by replacing lines 7 and 8 with the following: | ||||||
8 | " company action level as set forth in Article IIA of this Code | ||||||
9 | or would cause the company to be in
hazardous financial | ||||||
10 | condition as set forth in Article XII 1/2 of this Code. "; and
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11 | on page 10, line 16, by replacing " 131.12a 131.12 " with | ||||||
12 | "131.12"; and
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13 | on page 13, line 24, by replacing "(a) (Blank). " with " (a) "; |
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1 | and
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2 | on page 14, line 5, by replacing "(b) (Blank). " with " (b) "; and
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3 | on page 14, line 18, after " fairness ", by inserting " of the | ||||||
4 | proposal "; and
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5 | on page 16, line 3, by replacing " it shall " with " the person | ||||||
6 | will "; and
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7 | on page 16, line 4, by replacing " 131.20c " with " 131.14b "; and
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8 | on page 16, line 6, by replacing " An " with " Beginning July 1, | ||||||
9 | 2013, an "; and
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10 | on page 16, line 11, by replacing " insurer " with " company "; and
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11 | on page 17, line 20, by replacing "After the change of control" | ||||||
12 | with " after the After change of control , "; and
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13 | on page 18, line 1, by replacing " be to not substantially" with | ||||||
14 | " be not substantially to "; and
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15 | on page 18, line 2, by replacing "not" with " not "; and
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16 | on page 19, line 3, after "would", by inserting " not "; and
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1 | on page 19, line 16, by replacing " 30 60 " with "60"; and
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2 | on page 19, line 22, by replacing "securityholders" with | ||||||
3 | " shareholders securityholders "; and
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4 | on page 20, line 22, by replacing " insurers " with " companies "; | ||||||
5 | and
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6 | on page 20, line 23, by replacing " hearing, " with " hearing "; | ||||||
7 | and
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8 | on page 22, line 2, by replacing "thereto" with " thereto "; and
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9 | on page 22, line 21, by replacing "insurers" with " companies | ||||||
10 | insurers "; and
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11 | on page 23, line 8, by replacing "involved insurer" with | ||||||
12 | "involved company insurer "; and
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13 | on page 23, line 8, by replacing "an insurer" with " a company | ||||||
14 | an insurer "; and
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15 | on page 23, line 14, by replacing "an insurer" with " a company | ||||||
16 | an insurer "; and
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1 | on page 24, line 1, by replacing "insurer's" with " company's | ||||||
2 | insurer's "; and
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3 | on page 24, lines 20 and 24, by replacing "insurers" each time | ||||||
4 | it appears with " companies insurers "; and
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5 | on page 25, line 4, by replacing "insurers" with " companies | ||||||
6 | insurers "; and
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7 | on page 25, line 10, by replacing "an insurer" with " a company | ||||||
8 | an insurer "; and
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9 | on page 25, line 11, by replacing "insurer" with " company | ||||||
10 | insurer "; and
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11 | on page 25, line 14, by replacing "insurer's" with " company's | ||||||
12 | insurer's "; and
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13 | on page 27, line 7, by replacing "insurer" with " company | ||||||
14 | insurer "; and
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15 | on page 27, lines 13 and 17, by replacing "insurers" each time | ||||||
16 | it appears with " companies insurers "; and
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17 | on page 27, line 19, by replacing "Insurer" each time it | ||||||
18 | appears with " Company Insurer "; and
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1 | on page 28, line 1, by replacing "Insurer" each time it appears | ||||||
2 | with " Company Insurer "; and
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3 | on page 28, lines 7 and 10, by replacing "insurers" each time | ||||||
4 | it appears with " companies insurers "; and
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5 | on page 28, line 14, by replacing "insurer" with " company | ||||||
6 | insurer "; and
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7 | on page 28, line 15, by replacing "Insurer" with " Company | ||||||
8 | Insurer "; and
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9 | on page 28, lines 18 and 23, by replacing "insurers" each time | ||||||
10 | it appears with " companies insurers "; and
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11 | on page 29, lines 2 and 3, by replacing "insurers" each time it | ||||||
12 | appears with " companies insurers "; and
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13 | on page 29, line 5, by replacing "insurer's" with " company's | ||||||
14 | insurer's "; and
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15 | on page 29, line 22, by replacing "insurers" with " companies | ||||||
16 | insurers "; and
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17 | on page 31, lines 5 and 10, by replacing "insurer" each time it |
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1 | appears with " company insurer "; and
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2 | on page 32, line 17, by replacing "insurer" with " company | ||||||
3 | insurer "; and
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4 | on page 35, line 12, by replacing "affiliate" with " controlling | ||||||
5 | affiliate"; and
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6 | on page 36, lines 4 and 5, by deleting " is
responsible for | ||||||
7 | and "; and
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8 | on page 38, line 3, by replacing "5" with " 15 5 "; and
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9 | on page 38, line 18, by replacing "statement" with "statement , | ||||||
10 | any summary of changes to a registration statement, or any | ||||||
11 | Enterprise Risk Filing "; and
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12 | on page 42, line 11, by replacing "insurer" with " company | ||||||
13 | insurer "; and
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14 | on page 46, lines 5 and 6, by replacing "an insurer" with " a | ||||||
15 | company an insurer "; and
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16 | on page 46, lines 7 and 9, by replacing "insurer" each time it | ||||||
17 | appears with " company insurer "; and
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1 | on page 46, line 12, by replacing " reinsurance allocation " with | ||||||
2 | " all reinsurance allocation "; and
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3 | on page 46, line 14, by replacing "cost-sharing" with " all | ||||||
4 | cost-sharing"; and
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5 | on page 46, line 17, by replacing " insurer " with " company "; and
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6 | on page 46, line 21, by replacing " insurer's " with " company's "; | ||||||
7 | and
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8 | on page 46, line 25, by replacing " (v); " with " (v). "; and
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9 | on page 47, lines 1 and 2, by replacing " insurer " each time it | ||||||
10 | appears with " company "; and
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11 | on page 47, line 3, by replacing " insurer's " with " company's "; | ||||||
12 | and
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13 | on page 47, line 14, by replacing "insurer's" with " company's | ||||||
14 | insurer's "; and
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15 | on page 47, line 24, by replacing "an insurer" with " a company | ||||||
16 | an insurer "; and
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17 | on page 48, line 3, by replacing "insurer" with " company |
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1 | insurer "; and
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2 | on page 48, line 7, by replacing "insurer's" with " company's | ||||||
3 | insurer's "; and
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4 | on page 49, lines 1, 10, and 12, by replacing "insurer" each | ||||||
5 | time it appears with " company insurer "; and
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6 | on page 50, line 16, by replacing "insurers" with " companies | ||||||
7 | insurers "; and
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8 | on page 50, lines 17, 18, 20, and 24, by replacing "insurer" | ||||||
9 | each time it appears with " company insurer "; and
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10 | on page 51, lines 8, 9, and 11, by replacing "insurer" each | ||||||
11 | time it appears with " company insurer "; and
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12 | on page 54, line 9; by replacing " insurer " with " company "; and
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13 | on page 54, line 13, by replacing " companies, " with " companies | ||||||
14 | in accordance with Section 131.21 of this Code, "; and
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15 | on page 54, line 17, by replacing " agreements " with " agreements | ||||||
16 | in accordance with Section 131.22 of this Code "; and
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17 | on page 55, line 5, by replacing " insurer " with " company "; and
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1 | on page 60, lines 13 and 17, by replacing " an insurer " each | ||||||
2 | time it appears with " a company "; and
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3 | on page 60, line 20, by replacing " insurer " with " company "; and
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4 | on page 62, immediately below line 10, by inserting the | ||||||
5 | following:
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6 | "(215 ILCS 5/131.23) (from Ch. 73, par. 743.23)
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7 | Sec. 131.23.
Injunctions; prohibitions against voting | ||||||
8 | securities; sequestration of
voting securities.
(1) Whenever | ||||||
9 | it appears to the Director that any company or any
director, | ||||||
10 | officer, employee or agent thereof has committed or is about to
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11 | commit a violation of this Article or of any rule, regulation, | ||||||
12 | or order
issued by the Director hereunder, the Director may | ||||||
13 | apply to the Circuit
Court for the county in which the | ||||||
14 | principal office of the company is
located or to the Circuit | ||||||
15 | Court for Sangamon County for an order enjoining
the company or | ||||||
16 | the director, officer, employee or agent thereof from
violating | ||||||
17 | or continuing to violate this Article or any rule, regulation | ||||||
18 | or
order, and for any other equitable relief as the nature of | ||||||
19 | the case and the
interests of the company's policyholders, | ||||||
20 | creditors or the
public may require. In any proceeding, the | ||||||
21 | validity of the rule, regulation
or order alleged to have been | ||||||
22 | violated may be determined by the Court.
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1 | (2) No security which is the subject of any agreement or | ||||||
2 | arrangement
regarding acquisition, or which is acquired or to | ||||||
3 | be acquired, in
contravention of this Article or of any rule, | ||||||
4 | regulation or order issued by
the Director hereunder may be | ||||||
5 | voted at any shareholder's securityholders' meeting, or may be
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6 | counted for quorum purposes, and any action of shareholder's | ||||||
7 | securityholders' requiring the
affirmative vote of a | ||||||
8 | percentage of securities may be taken as though such
securities | ||||||
9 | were not issued and outstanding; but no action taken at any | ||||||
10 | such
meeting may be invalidated by the voting of such | ||||||
11 | securities, unless the
action would materially affect control | ||||||
12 | of the company or unless any court
of this State has so | ||||||
13 | ordered. If the Director has reason to
believe that any | ||||||
14 | security of the company has been or is about to be
acquired in | ||||||
15 | contravention of this Article or of any rule, regulation or
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16 | order issued by the Director hereunder the company or the | ||||||
17 | Director may
apply to the Circuit Court for Sangamon County or | ||||||
18 | to the Circuit Court for
the county in which the company has | ||||||
19 | its principal place of business (a) to
enjoin the further | ||||||
20 | pursuit or use of any offer, request, invitation,
agreement or | ||||||
21 | acquisition made in contravention of Sections 131.4 through
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22 | 131.12 or any rule, regulation, or order issued by the Director | ||||||
23 | thereunder;
(b) to enjoin the voting of any security so | ||||||
24 | acquired; (c) to void any vote
of such security already cast at | ||||||
25 | any meeting of shareholders securityholders ; and (d) for
any | ||||||
26 | other equitable relief as the nature of the case and the |
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1 | interests of
the company's policyholders, creditors, or the | ||||||
2 | public may
require.
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3 | (3) In any case where a person has acquired or is proposing | ||||||
4 | to acquire
any voting securities in violation of this Article | ||||||
5 | or any rule, regulation
or order issued by the Director | ||||||
6 | hereunder, the Circuit Court for Sangamon
County or the Circuit | ||||||
7 | Court for the county in which the company has its
principal | ||||||
8 | place of business may, on such notice as the court deems
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9 | appropriate, upon the application of the company or the | ||||||
10 | Director seize or
sequester any voting securities of the | ||||||
11 | company owned directly or indirectly
by such person, and issue | ||||||
12 | any orders with respect thereto as may be
appropriate to | ||||||
13 | effectuate this Article. Notwithstanding any other
provisions | ||||||
14 | of law, for the purposes of this Article, the situs of the
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15 | ownership of the securities of domestic companies is deemed to | ||||||
16 | be in this
State.
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17 | (4) If the Director has reason to believe that any | ||||||
18 | policyholders' proxies
have been or are about to be acquired in | ||||||
19 | contravention of this Article or
of any rule, regulations or | ||||||
20 | order issued by the Director hereunder, the
Director may apply | ||||||
21 | to the Circuit Court for Sangamon County or to the Circuit
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22 | Court for the county in which the company has its principal | ||||||
23 | place of business
(a) to enjoin further pursuit or use of any | ||||||
24 | offer, request, invitation,
agreement or acquisition made in | ||||||
25 | contravention of Section 131.4 through
131.12 and (b) for any | ||||||
26 | other equitable relief as the nature of the case
and the |
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1 | interests of the company's policyholders, creditors or the | ||||||
2 | public may require.
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3 | (Source: P.A. 84-805.)"; and
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4 | on page 64, line 19, by replacing " insurer " with " company "; and
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5 | on page 64, by replacing line 22 with the following: | ||||||
6 | " company under an order of supervision in accordance with | ||||||
7 | Article XII 1/2 of this Code. "; and
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8 | on page 64, immediately below line 23, by inserting the | ||||||
9 | following:
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10 | "(215 ILCS 5/131.26) (from Ch. 73, par. 743.26)
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11 | Sec. 131.26. Revocation, suspension, or non-renewal of | ||||||
12 | company's license.
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13 | Whenever it appears to the Director that any person has | ||||||
14 | committed a
violation of this Article which makes the continued | ||||||
15 | operation of a company
contrary to the interests of | ||||||
16 | policyholders or the public, the Director may,
after notice and | ||||||
17 | hearing suspend, revoke or refuse to renew the company's
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18 | license or authority to do business in this State for such a | ||||||
19 | period as the Director he finds
is required for the protection | ||||||
20 | of policyholders or the public. Any such
determination must be | ||||||
21 | accompanied by specific findings of fact and
conclusions of | ||||||
22 | law.
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1 | (Source: P.A. 77-673.)"; and
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2 | on page 65, immediately below line 21, by inserting the | ||||||
3 | following:
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4 | "(215 ILCS 5/131.29 new) | ||||||
5 | Sec. 131.29. Rulemaking power.
The Director may adopt such | ||||||
6 | administrative rules as are necessary to implement the | ||||||
7 | provisions of this Article.
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8 | (215 ILCS 5/131.30 new) | ||||||
9 | Sec. 131.30. Conflict with other laws.
This Code supersedes | ||||||
10 | all laws and parts of laws of this State inconsistent with this | ||||||
11 | Code with respect to matters covered by this Code. "; and
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12 | on page 66, by replacing line 4 with the following: | ||||||
13 | "1, 2013, except that Section 131.14b of the Illinois Insurance | ||||||
14 | Code takes effect July 1, 2013.".
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