House Sponsors: BRADY. Senate Sponsors: WALSH,T Short description: INS CD-COMPANY FINANCE Synopsis of Bill as introduced: Amends the Illinois Insurance Code. Provides that if proposed increases or decreases in capital include subsequent transactions subject to the Insurance Holding Company Systems Article, all information required under that Article must be provided to the Director of Insurance when seeking permission to increase or decrease capital. Requires Director approval of conversion terms of convertible preferred shares. Authorizes fixed or floating rates of interest for guaranty fund borrowing. Provides for liability for producers and third party administrators in connection with unauthorized insurers. Sets forth requirements for issuance of capital notes. Provides restrictions concerning credit allowed for domestic ceding insurers. Authorizes the Director of Insurance to bring civil actions as rehabilitator against an insurance company and related parties. Amends the Producer Controlled Insurer Act to expand the scope of the definitions of "controlled insurer" and "controlling producer". Effective immediately. HOUSE AMENDMENT NO. 1. Deletes reference to: 215 ILCS 5/174 Deletes provisions requiring the approval of the Director before a domestic insurer may enter into certain agreements. Requires certain assuming insurers to have at least $5,000,000 in capital and surplus before assuming insurance. HOUSE AMENDMENT NO. 2. Adds reference to: 215 ILCS 5/59.1 Amends the Illinois Insurance Code in relation to the conversion of a mutual company to a stock company. Defines the term "member" as a person who is deemed a holder of a membership interest in the mutual company pursuant to its articles or bylaws. Prohibits any person from making or announcing an offer to purchase a security issued by a converting mutual company before the plan of conversion is complete except in compliance with provisions relating to limitations on acquisition of control or the terms of the conversion plan approved by the Director. HOUSE AMENDMENT NO. 3. Deletes reference to: 215 ILCS 5/122-1 Deletes provision authorizing the Department of Insurance to require third party administrators and producers to submit information regarding certain insurance transactions relating to multiple employer arrangements and employee leasing arrangements. FISCAL NOTE (Dept. of Insurance) There will be no fiscal impact on this Dept. STATE MANDATES FISCAL NOTE, H-am 1 In the opinion of DCCA, HB2226, as amended by H-am 1, fails to create a State mandate under the State Mandates Act. HOUSE AMENDMENT NO. 4. Adds reference to: 215 ILCS 5/513a9 from Ch. 73, par. 1065.60a9 215 ILCS 150/25.1 from Ch. 148, par. 225.1 Amends the Illinois Insurance Code to provide that if a premium finance company pays the financed premium to a producer, it establishes the producer as an agent of the premium finance company. Amends the Religious and Charitable Risk Pooling Trust Act to provide that a trust fund may reorganize into a mutual insurance company or a reciprocal if the trust fund has an operating history of 3, rather than 5, consecutive years after organizational approval during which it has provided non-assessable benefits or indemnification contracts to its beneficiaries. SENATE AMENDMENT NO. 1. Deletes reference to: 215 ILCS 107/5.20 215 ILCS 107/5.25 Deletes changes made to the Producer Controlled Insurer Act. Last action on Bill: PUBLIC ACT.............................. 90-0381 Last action date: 97-08-14 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 4 SENATE - 1 END OF INQUIRY Full Text Bill Status