(215 ILCS 5/192) (from Ch. 73, par. 804)
Sec. 192.
Duties of
Director as rehabilitator; termination.
(1) Upon the entry of an order directing rehabilitation, the Director
shall immediately proceed to conduct the business of the company and take
such steps towards removal of the causes and conditions which have made
such proceedings necessary as may be expedient.
(2) The Director is authorized to deal with the property and business of
the company in his name as Director, or, if the Court shall so order, in
the name of the company. The Director may, subject to the approval
of the Court, sell
or otherwise dispose of the real and personal property, or any part
thereof, and sell or compromise all doubtful or uncollectible debts or
claims owing to the company in any rehabilitation proceeding now
pending or hereafter instituted, except that whenever the value of any real
or personal property or the amount of any such debt owing to the company does
not exceed $25,000, the Director may sell, dispose of, compromise, or compound
the same upon such terms as the Director deems to be in the best interest of
the company without obtaining approval of the court unless otherwise directed
by the court. The Director may solicit contracts whereby a solvent company
agrees to assume, in whole or in part, or upon a modified basis, the
liabilities of a company in rehabilitation in a manner consistent with
subsection (4) of Section 193 of this Code.
(3) The Director may bring any action, claim, suit, or proceeding against
any director or officer of the company or against any other person with respect
to that person's dealings with the company including, but not limited to,
prosecuting any action, claim, suit, or proceeding on behalf of the creditors,
members, policyholders, or shareholders of the company. Nothing in this
subsection shall be construed to affect the standing of the Illinois Insurance
Guaranty Fund, the Illinois Life and Health Insurance Guaranty Association, or
the Illinois Health Maintenance Organization Guaranty Association to sue or be
sued under applicable law.
(4) If at any time the Director finds that it is in the best
interests
of policyholders, creditors and the company to effect a plan of
mutualization or rehabilitation, the Director may submit such plan
to the court for
its approval. Such plan, in addition to any other terms and provisions as
may by the Director be deemed necessary or advisable, may include a
provision imposing liens upon the net equities of policyholders of the
company, and in the case of life companies, a provision imposing a
moratorium upon the loan or cash surrender values of the policies, for such
period and to such an extent as may be necessary. Notice of the hearing
upon any such plan shall be given in the manner as may be fixed by the
court and upon such hearing the court may either approve or disapprove the
plan or modify it in such manner and to such extent as to the court shall
seem appropriate.
(5) Where in such proceedings the Court has entered an order
for the
filing of claims and it subsequently appears that the total amount of all
allowable claims exceed the assets in the possession of the Rehabilitator,
the Court may upon the application of the Director authorize a distribution
of assets in accordance with the applicable provisions of Section 210.
The Director may at such time apply under this Section for an order
dissolving the company in accordance with the applicable provisions of
Section 196.
(6) If at any time the Director finds that the causes and
conditions
which made such proceeding necessary have been removed he may petition the
court for an order terminating the conduct of the business by the Director
and permitting such company to resume possession of its property and the
conduct of its business and for a full discharge of all liability and
responsibility of the Director. No order for the return to such company of
its property and business shall be granted unless the court after a full
hearing determines that the purposes of the proceeding have been fully
accomplished.
(Source: P.A. 89-206, eff. 7-21-95; 90-381, eff. 8-14-97.)
|