State of Illinois
92^nd General Assembly
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92_HB0153enr

 
HB0153 Enrolled                                LRB9201051JSpc

 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 are authorized to establish
14    and  become beneficiaries of a trust fund for the purpose of:
15    (1) providing protection for themselves against the  risk  of
16    financial loss due to damage, destruction or loss to property
17    or  the  imposition  of  legal  liability;  or  (2) providing
18    protection for their employees or full-time students, but not
19    dependents,  against  the  risk  of  financial  loss  due  to
20    accident,   sickness,   or   disablement.    Any   of    such
21    organizations' affiliated title holding corporations that are
22    exempt from taxation under paragraph (2) of subsection (c) of
23    Section  501 of the Internal Revenue Code of 1954, as amended
24    or  as  it  may  be  amended  hereafter,  are  authorized  to
25    establish or become beneficiaries of a trust for the  purpose
26    of  providing  protection  for themselves against the risk of
27    financial  loss  due  to  damage,  destruction,  or  loss  to
28    property or the imposition of legal liability.
29        A hospital or long-term care facility owned and  operated
30    by  a  tax  exempt  unit of local government and such unit of
31    local government, in relation to and to  the  extent  of  its
 
HB0153 Enrolled             -2-                LRB9201051JSpc
 1    liabilities  arising  from the ownership or operation of such
 2    hospital or long-term care facility, may participate  in  the
 3    establishment of and may become beneficiaries of a trust fund
 4    established  under  this  Act  for  the  purpose of providing
 5    protection against the risk of  financial  loss  due  to  the
 6    imposition of legal liability.
 7    (Source: P.A. 88-364.)

 8        (215 ILCS 150/6) (from Ch. 148, par. 206)
 9        Sec. 6.  Risk pools; risk retention groups.
10        (a)  A  trust fund may enter into written agreements with
11    other trust funds established  under  this  Act  whereby  the
12    risks assumed by any such trust fund may be pooled and shared
13    with such other trust funds.
14        (b)  A  trust  fund may enter into written agreements for
15    the purpose of assuming risks from (i)  risk  pools  or  risk
16    retention  groups  established  or  organized pursuant to the
17    laws of any other state exclusively to  provide  protections,
18    as  described  in this Act, to organizations which are exempt
19    from taxation under paragraph subsection  (3)  of  subsection
20    paragraph (c) of Section 501 of the Internal Revenue Code, as
21    amended from time to time, and their affiliated title holding
22    corporations  that  are  exempt from taxation under paragraph
23    (2) of subsection (c) of Section 501 of the Internal  Revenue
24    Code of 1954, as amended from time to time, or (ii) insurance
25    companies  with  regard  to protections, as described in this
26    Act, exclusively for  organizations  which  are  exempt  from
27    taxation,  as  aforesaid.   As a condition to such authority,
28    any trust fund so assuming risk  from  any  risk  pool,  risk
29    retention  group  or  insurance  company,  shall, directly or
30    through an underwriting manager controlled by it,  underwrite
31    risks  assumed  by  it  either on a facultative basis or on a
32    primary  basis  pursuant  to   an   underwriting   management
33    agreement  with  the entity from which risk is being assumed.
 
HB0153 Enrolled             -3-                LRB9201051JSpc
 1    Such underwriting  management  agreement  shall  provide  for
 2    underwriting  risks  assumed  on  behalf  of  both the ceding
 3    entity and the assuming trust fund.   For  purposes  of  this
 4    subsection  (b), the term "underwrite" shall include, but not
 5    be limited  to,  classification,  selection  and  pricing  of
 6    risks.
 7    (Source: P.A. 85-131; 85-329.)

 8        (215 ILCS 150/15) (from Ch. 148, par. 215)
 9        Sec.  15.  Ineligible  beneficiaries.   A  beneficiary is
10    ineligible (1) if  it  is  not  exempt  from  taxation  under
11    paragraph (3) subsection 3 of subsection (c) paragraph (C) of
12    Section  501 of the Internal Revenue Code of 1954 as amended,
13    or an affiliate of a corporation exempt from  taxation  under
14    paragraph  (3)  of  subsection  (c)  of  Section  501  of the
15    Internal Revenue Code, as amended, and exempt  from  taxation
16    under  paragraph  (2) of subsection (c) of Section 501 of the
17    Internal Revenue Code of 1954, as amended, or tax exempt as a
18    unit of local government or as a hospital owned and  operated
19    by a unit of local government or; (2) if a corporation, it is
20    not  incorporated as a not-for-profit corporation; or; (3) if
21    a  foreign  or  alien  corporation,  it  no  longer   has   a
22    Certificate of Authority issued by the Secretary of State.
23    (Source: P.A. 81-602.)

24        Section  99.  Effective date.  This Act takes effect upon
25    becoming law.

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