HB 4367

Abstract

Amends the Illinois Insurance Guaranty Fund Article of the Illinois Insurance Code. In provisions authorizing the Illinois Insurance Guaranty 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 of Insurance in her or his capacity as a receiver and specifying a purpose of the Article, deletes language providing that those provisions are inoperative 5 years after August 16, 2021 (the effective date of Public Act 102-396). Effective immediately. House Committee Amendment No. 1 Deletes reference to: 215 ILCS 5/532 215 ILCS 5/538.7 Adds reference to: 215 ILCS 5/534.4 from Ch. 73, par. 1065.84-4 Replaces everything after the enacting clause. Amends the Illinois Insurance Guaranty Fund Article of the Illinois Insurance Code. Provides that "insolvent company" means a company organized as a stock company, mutual company, reciprocal or Lloyds (i) 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, insurance business transfer, consolidation, or reinsurance (instead of 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 (ii) 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. Effective immediately. Senate Committee Amendment No. 2 Replaces everything after the enacting clause. Amends the Illinois Insurance Guaranty Fund Article of the Illinois Insurance Code. Provides that when a policy obligation is assumed or allocated through merger, division, insurance business transfer, consolidation, or reinsurance, nothing in the definition of "insolvent company" shall be construed to create Illinois Insurance Guaranty Fund coverage if none existed at the time of assumption or allocation or to destroy Illinois Insurance Guaranty Fund coverage if it existed at the time of assumption or allocation. Effective immediately.