SB2877sam001 97TH GENERAL ASSEMBLY

Sen. William R. Haine

Filed: 3/1/2012

09700SB2877sam001 LRB097 16448 RPM 66447 a

AMENDMENT TO SENATE BILL 2877

AMENDMENT NO. ______. Amend Senate Bill 2877 as follows:

on page 1, line 8, by replacing "131.24," with "131.23, 131.24, 131.26,"; and

on page 1, line 9, by replacing "and 131.20c," with "131.20c, 131.29, and 131.30,"; and

on page 3, by replacing lines 7 and 8 with the following: "company action level as set forth in Article IIA of this Code or would cause the company to be in hazardous financial condition as set forth in Article XII 1/2 of this Code."; and

on page 10, line 16, by replacing "131.12a 131.12" with "131.12"; and

on page 13, line 24, by replacing "(a) (Blank)." with "(a)"; and

on page 14, line 5, by replacing "(b) (Blank)." with "(b)"; and

on page 14, line 18, after "fairness", by inserting "of the proposal"; and

on page 16, line 3, by replacing "it shall" with "the person will"; and

on page 16, line 4, by replacing "131.20c" with "131.14b"; and

on page 16, line 6, by replacing "An" with "Beginning July 1, 2013, an"; and

on page 16, line 11, by replacing "insurer" with "company"; and

on page 17, line 20, by replacing "After the change of control" with "after the After change of control,"; and

on page 18, line 1, by replacing "be to not substantially" with "be not substantially to"; and

on page 18, line 2, by replacing "not" with "not"; and

on page 19, line 3, after "would", by inserting "not"; and

on page 19, line 16, by replacing "30 60" with "60"; and

on page 19, line 22, by replacing "securityholders" with "shareholders securityholders"; and

on page 20, line 22, by replacing "insurers" with "companies"; and

on page 20, line 23, by replacing "hearing," with "hearing"; and

on page 22, line 2, by replacing "thereto" with "thereto"; and

on page 22, line 21, by replacing "insurers" with "companies insurers"; and

on page 23, line 8, by replacing "involved insurer" with "involved company insurer"; and

on page 23, line 8, by replacing "an insurer" with "a company an insurer"; and

on page 23, line 14, by replacing "an insurer" with "a company an insurer"; and

on page 24, line 1, by replacing "insurer's" with "company's insurer's"; and

on page 24, lines 20 and 24, by replacing "insurers" each time it appears with "companies insurers"; and

on page 25, line 4, by replacing "insurers" with "companies insurers"; and

on page 25, line 10, by replacing "an insurer" with "a company an insurer"; and

on page 25, line 11, by replacing "insurer" with "company insurer"; and

on page 25, line 14, by replacing "insurer's" with "company's insurer's"; and

on page 27, line 7, by replacing "insurer" with "company insurer"; and

on page 27, lines 13 and 17, by replacing "insurers" each time it appears with "companies insurers"; and

on page 27, line 19, by replacing "Insurer" each time it appears with "Company Insurer"; and

on page 28, line 1, by replacing "Insurer" each time it appears with "Company Insurer"; and

on page 28, lines 7 and 10, by replacing "insurers" each time it appears with "companies insurers"; and

on page 28, line 14, by replacing "insurer" with "company insurer"; and

on page 28, line 15, by replacing "Insurer" with "Company Insurer"; and

on page 28, lines 18 and 23, by replacing "insurers" each time it appears with "companies insurers"; and

on page 29, lines 2 and 3, by replacing "insurers" each time it appears with "companies insurers"; and

on page 29, line 5, by replacing "insurer's" with "company's insurer's"; and

on page 29, line 22, by replacing "insurers" with "companies insurers"; and

on page 31, lines 5 and 10, by replacing "insurer" each time it appears with "company insurer"; and

on page 32, line 17, by replacing "insurer" with "company insurer"; and

on page 35, line 12, by replacing "affiliate" with "controlling affiliate"; and

on page 36, lines 4 and 5, by deleting "is responsible for and"; and

on page 38, line 3, by replacing "5" with "15 5"; and

on page 38, line 18, by replacing "statement" with "statement, any summary of changes to a registration statement, or any Enterprise Risk Filing"; and

on page 42, line 11, by replacing "insurer" with "company insurer"; and

on page 46, lines 5 and 6, by replacing "an insurer" with "a company an insurer"; and

on page 46, lines 7 and 9, by replacing "insurer" each time it appears with "company insurer"; and

on page 46, line 12, by replacing "reinsurance allocation" with "all reinsurance allocation"; and

on page 46, line 14, by replacing "cost-sharing" with "all cost-sharing"; and

on page 46, line 17, by replacing "insurer" with "company"; and

on page 46, line 21, by replacing "insurer's" with "company's"; and

on page 46, line 25, by replacing "(v);" with "(v)."; and

on page 47, lines 1 and 2, by replacing "insurer" each time it appears with "company"; and

on page 47, line 3, by replacing "insurer's" with "company's"; and

on page 47, line 14, by replacing "insurer's" with "company's insurer's"; and

on page 47, line 24, by replacing "an insurer" with "a company an insurer"; and

on page 48, line 3, by replacing "insurer" with "company insurer"; and

on page 48, line 7, by replacing "insurer's" with "company's insurer's"; and

on page 49, lines 1, 10, and 12, by replacing "insurer" each time it appears with "company insurer"; and

on page 50, line 16, by replacing "insurers" with "companies insurers"; and

on page 50, lines 17, 18, 20, and 24, by replacing "insurer" each time it appears with "company insurer"; and

on page 51, lines 8, 9, and 11, by replacing "insurer" each time it appears with "company insurer"; and

on page 54, line 9; by replacing "insurer" with "company"; and

on page 54, line 13, by replacing "companies," with "companies in accordance with Section 131.21 of this Code,"; and

on page 54, line 17, by replacing "agreements" with "agreements in accordance with Section 131.22 of this Code"; and

on page 55, line 5, by replacing "insurer" with "company"; and

on page 60, lines 13 and 17, by replacing "an insurer" each time it appears with "a company"; and

on page 60, line 20, by replacing "insurer" with "company"; and

on page 62, immediately below line 10, by inserting the following:

"(215 ILCS 5/131.23) (from Ch. 73, par. 743.23)

Sec. 131.23. Injunctions; prohibitions against voting securities; sequestration of voting securities. (1) Whenever it appears to the Director that any company or any director, officer, employee or agent thereof has committed or is about to commit a violation of this Article or of any rule, regulation, or order issued by the Director hereunder, the Director may apply to the Circuit Court for the county in which the principal office of the company is located or to the Circuit Court for Sangamon County for an order enjoining the company or the director, officer, employee or agent thereof from violating or continuing to violate this Article or any rule, regulation or order, and for any other equitable relief as the nature of the case and the interests of the company's policyholders, creditors or the public may require. In any proceeding, the validity of the rule, regulation or order alleged to have been violated may be determined by the Court.

(2) No security which is the subject of any agreement or arrangement regarding acquisition, or which is acquired or to be acquired, in contravention of this Article or of any rule, regulation or order issued by the Director hereunder may be voted at any shareholder's securityholders' meeting, or may be counted for quorum purposes, and any action of shareholder's securityholders' requiring the affirmative vote of a percentage of securities may be taken as though such securities were not issued and outstanding; but no action taken at any such meeting may be invalidated by the voting of such securities, unless the action would materially affect control of the company or unless any court of this State has so ordered. If the Director has reason to believe that any security of the company has been or is about to be acquired in contravention of this Article or of any rule, regulation or order issued by the Director hereunder the company or the Director may apply to the Circuit Court for Sangamon County or to the Circuit Court for the county in which the company has its principal place of business (a) to enjoin the further pursuit or use of any offer, request, invitation, agreement or acquisition made in contravention of Sections 131.4 through 131.12 or any rule, regulation, or order issued by the Director thereunder; (b) to enjoin the voting of any security so acquired; (c) to void any vote of such security already cast at any meeting of shareholders securityholders; and (d) for any other equitable relief as the nature of the case and the interests of the company's policyholders, creditors, or the public may require.

(3) In any case where a person has acquired or is proposing to acquire any voting securities in violation of this Article or any rule, regulation or order issued by the Director hereunder, the Circuit Court for Sangamon County or the Circuit Court for the county in which the company has its principal place of business may, on such notice as the court deems appropriate, upon the application of the company or the Director seize or sequester any voting securities of the company owned directly or indirectly by such person, and issue any orders with respect thereto as may be appropriate to effectuate this Article. Notwithstanding any other provisions of law, for the purposes of this Article, the situs of the ownership of the securities of domestic companies is deemed to be in this State.

(4) If the Director has reason to believe that any policyholders' proxies have been or are about to be acquired in contravention of this Article or of any rule, regulations or order issued by the Director hereunder, the Director may apply to the Circuit Court for Sangamon County or to the Circuit Court for the county in which the company has its principal place of business (a) to enjoin further pursuit or use of any offer, request, invitation, agreement or acquisition made in contravention of Section 131.4 through 131.12 and (b) for any other equitable relief as the nature of the case and the interests of the company's policyholders, creditors or the public may require.

(Source: P.A. 84-805.)"; and

on page 64, line 19, by replacing "insurer" with "company"; and

on page 64, by replacing line 22 with the following: "company under an order of supervision in accordance with Article XII 1/2 of this Code."; and

on page 64, immediately below line 23, by inserting the following:

"(215 ILCS 5/131.26) (from Ch. 73, par. 743.26)

Sec. 131.26. Revocation, suspension, or non-renewal of company's license.

Whenever it appears to the Director that any person has committed a violation of this Article which makes the continued operation of a company contrary to the interests of policyholders or the public, the Director may, after notice and hearing suspend, revoke or refuse to renew the company's license or authority to do business in this State for such a period as the Director he finds is required for the protection of policyholders or the public. Any such determination must be accompanied by specific findings of fact and conclusions of law.

(Source: P.A. 77-673.)"; and

on page 65, immediately below line 21, by inserting the following:

"(215 ILCS 5/131.29 new)

Sec. 131.29. Rulemaking power. The Director may adopt such administrative rules as are necessary to implement the provisions of this Article.

(215 ILCS 5/131.30 new)

Sec. 131.30. Conflict with other laws. This Code supersedes all laws and parts of laws of this State inconsistent with this Code with respect to matters covered by this Code."; and

on page 66, by replacing line 4 with the following: "1, 2013, except that Section 131.14b of the Illinois Insurance Code takes effect July 1, 2013.".