Bill Text: IL SB3174 | 2017-2018 | 100th General Assembly | Enrolled

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Bill Title: Amends the Illinois Oil and Gas Act. Provides that wells with horizontal or directional extensions from a vertical bore hole shall not be classified as confidential. Provides that the length and direction of these wells shall be included in the Department of Natural Resources' weekly permit logs. Provides that all chemicals used during drilling and completion of these wells shall be contained in specified publications. Effective immediately.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Enrolled - Dead) 2019-02-06 - Sent to the Governor [SB3174 Detail]

Download: Illinois-2017-SB3174-Enrolled.html

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SB3174 Enrolled LRB100 19698 XWW 34972 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. If and only if Senate Bill 1737 of the 100th
General Assembly becomes law in the form in which it passed
both houses on May 31, 2018, then the Illinois Insurance Code
is amended by changing Sections 534.3 and 534.4 as follows:
(215 ILCS 5/534.3) (from Ch. 73, par. 1065.84-3)
Sec. 534.3. Covered claim; unearned premium defined.
(a) "Covered claim" means an unpaid claim for a loss
arising out of and within the coverage of an insurance policy
to which this Article applies and which is in force at the time
of the occurrence giving rise to the unpaid claim, including
claims presented during any extended discovery period which was
purchased from the company before the entry of a liquidation
order or which is purchased or obtained from the liquidator
after the entry of a liquidation order, made by a person
insured under such policy or by a person suffering injury or
damage for which a person insured under such policy is legally
liable, and for unearned premium, if:
(i) The company issuing, assuming, or being allocated
the policy becomes an insolvent company as defined in
Section 534.4 after the effective date of this Article; and

SB3174 Enrolled - 2 - LRB100 19698 XWW 34972 b
(ii) The claimant or insured is a resident of this
State at the time of the insured occurrence, or the
property from which a first party claim for damage to
property arises is permanently located in this State or, in
the case of an unearned premium claim, the policyholder is
a resident of this State at the time the policy was issued;
provided, that for entities other than an individual, the
residence of a claimant, insured, or policyholder is the
state in which its principal place of business is located
at the time of the insured event.
(b) "Covered claim" does not include:
(i) any amount in excess of the applicable limits of
liability provided by an insurance policy to which this
Article applies; nor
(ii) any claim for punitive or exemplary damages; nor
(iii) any first party claim by an insured who is an
affiliate of the insolvent company; nor
(iv) any first party or third party claim by or against
an insured whose net worth on December 31 of the year next
preceding the date the insurer becomes an insolvent insurer
exceeds $25,000,000; provided that an insured's net worth
on such date shall be deemed to include the aggregate net
worth of the insured and all of its affiliates as
calculated on a consolidated basis. However, this
exclusion shall not apply to third party claims against the
insured where the insured has applied for or consented to

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the appointment of a receiver, trustee, or liquidator for
all or a substantial part of its assets, filed a voluntary
petition in bankruptcy, filed a petition or an answer
seeking a reorganization or arrangement with creditors or
to take advantage of any insolvency law, or if an order,
judgment, or decree is entered by a court of competent
jurisdiction, on the application of a creditor,
adjudicating the insured bankrupt or insolvent or
approving a petition seeking reorganization of the insured
or of all or substantial part of its assets; nor
(v) any claim for any amount due any reinsurer,
insurer, insurance pool, or underwriting association as
subrogated recoveries, reinsurance recoverables,
contribution, indemnification or otherwise. No such claim
held by a reinsurer, insurer, insurance pool, or
underwriting association may be asserted in any legal
action against a person insured under a policy issued by an
insolvent company other than to the extent such claim
exceeds the Fund obligation limitations set forth in
Section 537.2 of this Code.
(c) "Unearned Premium" means the premium for the unexpired
period of a policy which has been terminated prior to the
expiration of the period for which premium has been paid and
does not mean premium which is returnable to the insured for
any other reason.
(Source: P.A. 89-97, eff. 7-7-95; 90-499, eff. 8-19-97.)

SB3174 Enrolled - 4 - LRB100 19698 XWW 34972 b
(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, 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.
(Source: P.A. 90-499, eff. 8-19-97.)
Section 99. Effective date. This Act takes effect upon
becoming law or on the date Senate Bill 1737 of the 100th
General Assembly becomes law, whichever is later.