Sen. Jeffrey M. Schoenberg
Filed: 3/15/2010
 
 

 




 

 		












09600SB3382sam001

LRB096 20475 AMC 39036 a






1

AMENDMENT TO SENATE BILL 3382 




2
    AMENDMENT NO. ______. Amend Senate Bill 3382 by replacing 
3
everything after the enacting clause with the following:

 
4
    "Section 5. The Illinois Insurance Code is amended  by 
5
changing Section 126.5 as follows:
 
6
    (215 ILCS 5/126.5)
7
    Sec. 126.5. Prohibited investments. An insurer shall not, 
8
directly or indirectly:
9
    A. Invest in an obligation or security or make a guarantee 
10
for the benefit
of or in favor of an officer or director of the 
11
insurer, except as provided in
Section 126.6;
12
    B. Invest in an obligation or security, make a guarantee 
13
for the benefit of
or in favor of, or make other investments in 
14
a business entity of which 10% or
more of the voting securities 
15
or equity interests are owned
directly or indirectly by
or for 
16
the benefit of one or more officers or directors of the 
 


 






09600SB3382sam001
- 2 -
LRB096 20475 AMC 39036 a




1
insurer, except
pursuant to a transaction entered into in 
2
compliance with Section 131.20a of
this Code or provided in 
3
Section 126.6;
4
    C. Engage on its own behalf or through one or more 
5
affiliates in a
transaction or
series of transactions designed 
6
to evade the prohibitions of this Article;
7
    D.  (1) Invest in a partnership as a general partner, 
8
    except that an insurer
may make an investment as a general 
9
    partner:
10
            (a) If all other partners in the partnership are 
11
        subsidiaries of the
insurer
or other insurance company 
12
        affiliates of the insurer;
13
            (b) For the purpose of:
14
                (i) Meeting cash calls committed to prior to 
15
            the effective date
of this amendatory Act of 1997;
16
                (ii) Completing those specific projects or 
17
            activities of the
partnership in which the insurer 
18
            was a general partner as of
the effective date of 
19
            this amendatory Act of 1997 that had been 
20
            undertaken as
of that date; or
21
                (iii) Making capital improvements to property 
22
            owned by the
partnership on the effective date of 
23
            this amendatory Act of 1997 if the insurer
was a 
24
            general partner as of that date; or
25
            (c) In accordance with Section 126.3C;
26
        (2) This subsection shall not prohibit a subsidiary or 
 


 






09600SB3382sam001
- 3 -
LRB096 20475 AMC 39036 a




1
    other affiliate of
the insurer from becoming a general 
2
    partner; or
3
    E. Invest in or lend its funds upon the security of shares 
4
of its own stock,
except as authorized by other provisions of 
5
this Code.  However, no such shares
shall be admitted assets of 
6
the insurer; .
7
    F. Unless otherwise authorized by the Office of Foreign 
8
Assets Control in the United States Department of Treasury, 
9
invest in an obligation or security of, make a guarantee for 
10
the benefit of or in favor of, or acquire foreign currency of a 
11
foreign jurisdiction if such jurisdiction is designated as a 
12
state sponsor of terrorism by the United States Secretary of 
13
State pursuant to Section 6(j) of the Export Administration 
14
Act, Section 40 of the Arms Export Control Act, and Section 
15
620A of the Foreign Assistance Act.  If any investment made 
16
pursuant to this Article later becomes prohibited by this 
17
paragraph F, that investment shall not be retained as an 
18
investment pursuant to this Article; or
19
    G.  Unless otherwise authorized by the Office of Foreign 
20
Assets Control in the United States Department of Treasury, 
21
invest in an obligation or security of, make a guarantee for 
22
the benefit of or in favor of, or make other investments in a 
23
business entity identified on the Specially Designated 
24
Nationals List by the Office of Foreign Assets Control in the 
25
United States Department of Treasury.  If any investment made 
26
pursuant to this Article later becomes prohibited by paragraph 
 


 






09600SB3382sam001
- 4 -
LRB096 20475 AMC 39036 a




1
F of this Section, that investment shall not be retained as an 
2
investment pursuant to this Article. 
3
(Source: P.A. 90-418, eff. 8-15-97.)".