(240 ILCS 40/10-5)
Sec. 10-5.
Duties and requirements of licensees.
(a) Each licensee shall have adequate property insurance covering
grain in its possession or custody and adequate liability,
property, theft, hazard, and workers' compensation insurance.
(1) Every insurance policy shall contain a provision |
| that it will not be cancelled by the principal or the insurance company except on 60 days prior written notice to the Director and the principal insured. Cancellation of the policy does not affect the liability accrued or that may accrue under the policy before the expiration of the 60 days. The notice shall contain the termination date.
|
|
(2) Each licensee shall keep a general insurance
|
| account showing the policy number, issuing company, amount, binding date, and expiration date of insurance coverage and the property covered by insurance.
|
|
(3) In reference to a warehouseman, notwithstanding
|
| any provision to the contrary contained in the warehouse receipts involved, a warehouseman is not obligated to provide property insurance on Commodity Credit Corporation grain ("CCC-owned grain"). The warehouseman, however, shall continue to carry the insurance required on loan grain that becomes CCC-owned grain until the date stated in a written notice from CCC or its agent instructing the warehouseman to cancel the insurance on the grain as of that date. If CCC-owned grain is not covered by property insurance, recovery by the Commodity Credit Corporation from the Fund shall be reduced by the amount of property insurance proceeds that would have been available to cover any loss to CCC-owned grain had the CCC-owned grain been covered by property insurance.
|
|
(b) A licensee shall immediately notify the Department when
there is a change of management or cessation of operations or
change in fiscal year end.
(c) All grain trades, grain merchandising transactions, grain origination
plans
and
programs, and transactions or arrangements that represent or reflect rights and
obligations in grain must be clearly identified and disclosed in the books and
records of the licensee, for audit and examination purposes.
(Source: P.A. 93-225, eff. 7-21-03.)
|