HB 2405

Abstract

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, an organizations in another state similar to the Illinois Insurance Guaranty Fund or the Illinois Life and Health Insurance Guaranty Association. Effective immediately. House Committee Amendment No. 1 Deletes reference to: 215 ILCS 5/537.9 215 ILCS 5/538.2 215 ILCS 5/538.10 new Replaces everything after the enacting clause with the provisions of the introduced bill with the following changes. Removes provisions allowing the Illinois Insurance Guaranty Fund to contract to provide services to 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. In provisions concerning the purpose of the Illinois Insurance Guaranty Fund Article of the Illinois Insurance Code, provides that the purpose of the Article is to also provide a mechanism for the Illinois Insurance Guaranty Fund to participate in and facilitate the process by which the assets of an insolvent company are marshaled and distributed beyond reimbursing the cost of covered claims, and that these provisions are inoperative 5 years after the effective date of the amendatory Act. Provides that language allowing the Fund to contract with the Office of Special Deputy Receiver or any other person or organizations authorized by law to carry out the duties of the Director in her or his capacity as a receiver under Article XIII of this Code are inoperative 5 years after the effective date of the amendatory Act. Removes provisions authorizing 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. Makes other changes. Effective immediately.