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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 3of 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 3of 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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