(215 ILCS 5/188.1) (from Ch. 73, par. 800.1)
Sec. 188.1.
Provisions for conservation of assets of a domestic,
foreign, or alien company.
(1) Upon the filing by the Director of a verified complaint alleging
(a) that with respect to a domestic, foreign, or alien company,
whether authorized or unauthorized, a condition exists that
would justify a court order for proceedings under Section 188, and
(b) that the interests of creditors, policyholders or the public will
probably be endangered by delay, then the circuit court of Sangamon or Cook
County or the circuit court of the county in which such company has or last
had its principal office shall enter forthwith without a hearing or
prior
notice an order
directing the director to take possession and control of the property,
business, books, records, and accounts of the company, and of the premises
occupied by it for the transaction of its business, or such part of each as
the complaint shall specify, and enjoining the company and its officers,
directors, agents, servants, and employees from disposition of its property
and from transaction of its business except with the concurrence of the
Director until the further order of the court.
Copies of the verified complaint and the seizure order shall be
served upon the company.
(2) The order shall continue in force and effect for such time as the
court deems necessary for the Director to ascertain the condition and
situation of the company. On motion of either party or on its own motion,
the court may from time to time hold such hearings as it deems desirable,
and may extend, shorten, or modify the terms of, the seizure order. So far
as the court deems it possible, the parties shall be given adequate notice
of such hearings. As soon as practicable, the court shall vacate the
seizure order or terminate the conservation proceedings of the company,
either when the Director has failed to institute proceedings
under Section 188 having a reasonable opportunity to do so, or upon an
order of the court pursuant to such proceedings.
(3) Entry of a seizure order under this section shall not constitute an
anticipatory breach of any contract of the company.
(4) The court may hold all hearings in conservation proceedings
privately in chambers, and shall do so on request of any officer of the
company proceeded against.
(5) In conservation proceedings and judicial reviews thereof, all
records of the company, other documents, and all insurance department files
and court records and papers, so far as they pertain to and are a part of
the record of the conservation proceedings, shall be and remain
confidential except as is necessary to obtain compliance therewith, unless
and until the court, after hearing arguments in chambers from the Director
and the company, shall decide otherwise, or unless the company requests
that the matter be made public.
(6) Any person having possession of and refusing to deliver any of the
property, business, books, records or accounts of a company against which a
seizure order has been issued shall be guilty of a Class A misdemeanor.
(Source: P.A. 89-206, eff. 7-21-95.)
|