(215 ILCS 5/1703) (This Section may contain text from a Public Act with a delayed effective date) Sec. 1703. Purpose and intent. The purpose of this Article is to provide a mechanism for insurers to transfer or
assume blocks of insurance business in an efficient and
cost-effective manner that provides needed legal finality for
such transfers in order to provide for improved operational
and capital efficiency for insurance companies, while protecting the interests of the policyholders, reinsurers, and claimants of the subject business. This new process is intended to stimulate the
economy by attracting segments of the insurance industry to this State, make this State an attractive home jurisdiction
for insurance companies, encourage economic growth and
increased investment in the financial services sector, and
increase the availability of quality insurance industry jobs
in this State. These purposes are accomplished by providing a
basis and procedures for the transfer and statutory novation
of policies from a transferring insurer to an assuming insurer
by way of an insurance business transfer without the
affirmative consent of policyholders or reinsureds, but with consideration of their interests. This Article
establishes the requirements for notice and disclosure and standards and procedures for the approval of the transfer and
novation by a court pursuant to an insurance
business transfer plan. This Article does not limit or restrict
other means of effecting a transfer or novation.
(Source: P.A. 103-75, eff. 1-1-25.) |