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91_HB2774ham001
LRB9102646JSpcam
1 AMENDMENT TO HOUSE BILL 2774
2 AMENDMENT NO. . Amend House Bill 2774 on page 1 by
3 replacing lines 1 and 2 with the following:
4 "AN ACT relating to insurance companies."; and
5 on page 1, line 6, by changing "356h" to "245, 356h"; and
6 on page 1 by inserting immediately below line 6 the
7 following:
8 "(215 ILCS 5/245) (from Ch. 73, par. 857)
9 Sec. 245. Salaries; pensions.
10 (1) No domestic life company shall directly or
11 indirectly pay any salary, compensation or emolument to any
12 officer, trustee or director thereof, or any salary,
13 compensation or emolument amounting in any year to more than
14 $200,000 $100,000 to any person, firm or corporation, unless
15 such payment be first authorized by a vote of the board of
16 directors of such company, which vote shall be duly recorded
17 in the records of the company. No such domestic life company
18 shall make any agreement with any of its officers, trustees
19 or salaried employees whereby it agrees that for any services
20 rendered or to be rendered he shall receive any salary,
21 compensation or emolument, directly or indirectly, that will
22 extend beyond a period of three years from the date of such
-2- LRB9102646JSpcam
1 agreement except that payment of an amount not in excess of
2 20% of the salary of any of its officers, trustees, or
3 salaried employees may by written agreement be deferred
4 beyond such period of three years, which agreement may
5 include conditions to be met by such officer, trustee, or
6 salaried employee before payment will be made. The limitation
7 as to time contained herein shall not apply to a contract for
8 renewal commissions with any such officer, trustee or
9 salaried employee who is also an agent of the company nor
10 shall such limitation be construed as preventing a domestic
11 company from entering into contracts with its agents for the
12 payment of renewal commissions.
13 (2) No such life company shall grant any pension to any
14 officer, director or trustee thereof or to any member of his
15 family after his death except that it may provide a pension
16 pursuant to the terms of the uniform retirement plan adopted
17 by the board of directors and for any person who is or has
18 been a salaried officer or employee of such company and who
19 may retire by reason of age or disability.
20 (3) No such company shall hereafter create or establish
21 any account or fund for the purpose of promoting the health
22 or welfare of its employees except from annual accretions to
23 earned surplus computed in the manner provided by this Code.
24 Contributions to such fund by any company in any calendar
25 year shall not exceed 15% of the accretion to earned surplus
26 in such calendar year. Before such account or fund shall be
27 established, maintained or operated, the plan for such
28 account or fund and its method of operation shall be approved
29 by the board of directors of the company, and submitted to
30 the shareholders in the case of a stock company, or members
31 in the case of a mutual company, at a special meeting called
32 for the purpose of considering such plan. Contributions to
33 the fund from sources other than the company may be provided
34 for in the operation of the plan. No amount held in such fund
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1 or account whether contributed by the company or from any
2 other source shall be considered an admitted asset as defined
3 in this Code, nor considered in determining the solvency of
4 such company, nor be subject to the provisions of this Code.
5 (Source: P.A. 86-384.)".