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91_SB1429
LRB9111057JSpc
1 AN ACT to amend the Religious and Charitable Risk Pooling
2 Trust Act by changing Sections 2, 6, and 15.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Religious and Charitable Risk Pooling
6 Trust Act is amended by changing Sections 2, 6, and 15 as
7 follows:
8 (215 ILCS 150/2) (from Ch. 148, par. 202)
9 Sec. 2. Authorized organizations; purpose. Any number
10 of organizations which are all exempt from taxation under
11 paragraph (3) subsection 3 of subsection paragraph (c) of
12 Section 501 of the Internal Revenue Code of 1954 as amended
13 or as it may be amended hereafter and any of their affiliated
14 title holding corporations that are exempt from taxation
15 under paragraph (2) of subsection (c) Section 501 of the
16 Internal Revenue Code of 1954 as amended or as it may be
17 amended hereafter are authorized to establish and become
18 beneficiaries of a trust fund for the purpose of: (1)
19 providing protection for themselves against the risk of
20 financial loss due to damage, destruction or loss to property
21 or the imposition of legal liability; or (2) providing
22 protection for their employees or full-time students, but not
23 dependents, against the risk of financial loss due to
24 accident, sickness, or disablement.
25 A hospital or long-term care facility owned and operated
26 by a tax exempt unit of local government and such unit of
27 local government, in relation to and to the extent of its
28 liabilities arising from the ownership or operation of such
29 hospital or long-term care facility, may participate in the
30 establishment of and may become beneficiaries of a trust fund
31 established under this Act for the purpose of providing
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1 protection against the risk of financial loss due to the
2 imposition of legal liability.
3 (Source: P.A. 88-364.)
4 (215 ILCS 150/6) (from Ch. 148, par. 206)
5 Sec. 6. Risk pools; risk retention groups.
6 (a) A trust fund may enter into written agreements with
7 other trust funds established under this Act whereby the
8 risks assumed by any such trust fund may be pooled and shared
9 with such other trust funds.
10 (b) A trust fund may enter into written agreements for
11 the purpose of assuming risks from (i) risk pools or risk
12 retention groups established or organized pursuant to the
13 laws of any other state exclusively to provide protections,
14 as described in this Act, to organizations which are exempt
15 from taxation under paragraph subsection (3) of subsection
16 paragraph (c) of Section 501 of the Internal Revenue Code, as
17 amended from time to time, and their affiliated title holding
18 corporations that are exempt from taxation or under paragraph
19 (2) of subsection (c) of Section 501 of the Internal Revenue
20 Code of 1954, as amended from time to time, or (ii) insurance
21 companies with regard to protections, as described in this
22 Act, exclusively for organizations which are exempt from
23 taxation, as aforesaid. As a condition to such authority,
24 any trust fund so assuming risk from any risk pool, risk
25 retention group or insurance company, shall, directly or
26 through an underwriting manager controlled by it, underwrite
27 risks assumed by it either on a facultative basis or on a
28 primary basis pursuant to an underwriting management
29 agreement with the entity from which risk is being assumed.
30 Such underwriting management agreement shall provide for
31 underwriting risks assumed on behalf of both the ceding
32 entity and the assuming trust fund. For purposes of this
33 subsection (b), the term "underwrite" shall include, but not
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1 be limited to, classification, selection and pricing of
2 risks.
3 (Source: P.A. 85-131; 85-329.)
4 (215 ILCS 150/15) (from Ch. 148, par. 215)
5 Sec. 15. Ineligible beneficiaries. A beneficiary is
6 ineligible (1) if it is not exempt from taxation under
7 paragraph (3) subsection 3 of subsection (c) paragraph (C) of
8 Section 501 of the Internal Revenue Code of 1954 as amended,
9 or an affiliate of a corporation exempt from taxation under
10 paragraph (3) of subsection (c) of Section 501 of the
11 Internal Revenue Code, as amended, and exempt from taxation
12 under paragraph (2) of subsection (c) of Section 501 of the
13 Internal Revenue Code of 1954, as amended, or tax exempt as a
14 unit of local government or as a hospital owned and operated
15 by a unit of local government or; (2) if a corporation, it is
16 not incorporated as a not-for-profit corporation or; (3) if a
17 foreign or alien corporation, it no longer has a Certificate
18 of Authority issued by the Secretary of State.
19 (Source: P.A. 81-602.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.