Full Text of SB3174 100th General Assembly
SB3174ham001 100TH GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 11/20/2018
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| 1 | | AMENDMENT TO SENATE BILL 3174
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3174 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. If and only if Senate Bill 1737 of the 100th | 5 | | General Assembly becomes law in the form in which it passed | 6 | | both houses on May 31, 2018, then the Illinois Insurance Code | 7 | | is amended by changing Sections 534.3 and 534.4 as follows:
| 8 | | (215 ILCS 5/534.3) (from Ch. 73, par. 1065.84-3)
| 9 | | Sec. 534.3. Covered claim; unearned premium defined.
| 10 | | (a) "Covered claim" means an unpaid claim for a loss
| 11 | | arising out of and within the
coverage of an insurance policy | 12 | | to which this Article applies and which
is in force at the time | 13 | | of the occurrence giving rise to the unpaid
claim, including | 14 | | claims presented during any extended discovery period
which was | 15 | | purchased from the company before the entry of a liquidation
| 16 | | order or which is purchased or obtained from the liquidator |
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| 1 | | after the entry
of a liquidation order, made by a person | 2 | | insured under such policy or by a
person
suffering injury or | 3 | | damage for which a person insured under such policy
is legally | 4 | | liable, and for unearned premium, if:
| 5 | | (i) The company issuing , assuming, or being allocated | 6 | | the policy becomes an insolvent
company as defined in | 7 | | Section 534.4
after the effective date of this Article; and
| 8 | | (ii) The claimant or insured is a resident of this | 9 | | State at the time
of the insured occurrence, or the | 10 | | property from which a first party
claim for damage to | 11 | | property arises is
permanently located in this State or, in | 12 | | the case of an unearned premium
claim, the policyholder is | 13 | | a resident of this State at the time the policy
was issued; | 14 | | provided, that for entities other than an individual, the
| 15 | | residence of a claimant, insured, or policyholder is the | 16 | | state
in which its principal
place of business is located | 17 | | at the time of the insured event.
| 18 | | (b) "Covered claim" does not include:
| 19 | | (i) any amount in excess of the applicable limits of | 20 | | liability
provided by an insurance policy to which this | 21 | | Article applies; nor
| 22 | | (ii) any claim for punitive or exemplary damages; nor
| 23 | | (iii) any first party claim by an insured who is an | 24 | | affiliate of the
insolvent company; nor
| 25 | | (iv) any first party or third party claim by or against | 26 | | an insured
whose net worth on December 31
of the year next |
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| 1 | | preceding the date the insurer becomes an insolvent
insurer | 2 | | exceeds $25,000,000; provided that an insured's net
worth | 3 | | on such
date shall be deemed to include the aggregate net | 4 | | worth of the insured and
all of its affiliates as | 5 | | calculated on a consolidated basis. However, this
| 6 | | exclusion shall not apply to third party claims against the | 7 | | insured where the
insured has applied for or consented to | 8 | | the appointment of a receiver, trustee,
or liquidator for | 9 | | all or a substantial part of its assets, filed a voluntary
| 10 | | petition in bankruptcy, filed a petition or an answer | 11 | | seeking a reorganization
or arrangement with creditors or | 12 | | to take advantage of any insolvency law, or
if an order, | 13 | | judgment, or decree is entered by a court of competent
| 14 | | jurisdiction, on the application of a creditor, | 15 | | adjudicating the insured
bankrupt or insolvent or | 16 | | approving a petition seeking reorganization of the
insured | 17 | | or of all or substantial part of its assets; nor
| 18 | | (v) any claim for any amount due any reinsurer, | 19 | | insurer,
insurance pool, or underwriting association as | 20 | | subrogated
recoveries, reinsurance recoverables, | 21 | | contribution, indemnification or
otherwise. No such claim | 22 | | held by a reinsurer,
insurer, insurance pool, or | 23 | | underwriting association may be asserted in any
legal | 24 | | action
against a person insured under a policy issued by an | 25 | | insolvent
company other than to the extent such claim | 26 | | exceeds the Fund
obligation limitations set forth in |
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| 1 | | Section 537.2 of this Code.
| 2 | | (c) "Unearned Premium" means the premium for the unexpired | 3 | | period of a
policy which has been terminated prior to the | 4 | | expiration of the period for
which premium has been paid and | 5 | | does not mean premium which is returnable
to the insured for | 6 | | any other reason.
| 7 | | (Source: P.A. 89-97, eff. 7-7-95; 90-499, eff. 8-19-97.)
| 8 | | (215 ILCS 5/534.4) (from Ch. 73, par. 1065.84-4)
| 9 | | Sec. 534.4.
"Insolvent company" means a company
organized | 10 | | as a stock company, mutual company, reciprocal or Lloyds (a)
| 11 | | which holds a certificate of authority to transact insurance
in | 12 | | this State either at the time the policy was issued or when
the | 13 | | insured event occurred, or any company which has assumed or has | 14 | | been allocated
such policy obligation through merger, | 15 | | division, consolidation , or
reinsurance, whether or not such | 16 | | assuming company held a
certificate of authority to transact | 17 | | insurance in this State
at the time such policy was issued or | 18 | | when the insured event occurred; and (b)
against which a final | 19 | | Order of Liquidation with a finding of
insolvency to which | 20 | | there is no further right of appeal has been entered by
a court | 21 | | of competent jurisdiction in the company's State of domicile | 22 | | after the
effective date of this Article.
| 23 | | (Source: P.A. 90-499, eff. 8-19-97.)
| 24 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law or on the date Senate Bill 1737 of the 100th | 2 | | General Assembly becomes law, whichever is later.".
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