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[ Introduced ] | [ House Amendment 002 ] | [ Senate Amendment 001 ] |
92_HB5608eng HB5608 Engrossed LRB9213608JSpc 1 AN ACT concerning insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5 changing Section 107a.06 as follows: 6 (215 ILCS 5/107a.06) 7 Sec. 107a.06. Pool administration. 8 (a) An application for Certificate of Authority to 9 establish a pool shallmustinclude the documentation and 10 information regarding its administrator, pooling agreement, 11 plan of operation, and membership required by this Section. 12 (b) Administrators must disclose all of the following: 13 (1) Biography of the risk manager on forms 14 prescribed by the Director. 15 (2) If a corporation, biographies of all officers 16 and directors. 17 (3) The size of staff and other information, such 18 as the kinds of staff positions, location of 19 administrative offices and the nature of any electronic 20 data processing equipment, if any, available for 21 servicing the pool, to demonstrate that the administrator 22 has the resources to administer the program disclosed 23 pursuant to subsection (d). 24 (4) The most recent financial statement of the 25 administrator. If a publicly held company, a copy of the 26 last 10-K filed with the Securities and Exchange 27 Commission. 28 (5) The compensation contract of the administrator. 29 (6) The bylaws of the pool and articles of 30 incorporation, if any. 31 (7) Any agreement that subcontracts any of the HB5608 Engrossed -2- LRB9213608JSpc 1 administrator's duties or responsibilities. 2 (c) A pooling agreement must contain all of the 3 following: 4 (1) A description of the services to be provided by 5 the administrator. 6 (2) The manner in which costs are to be apportioned 7 by the administrator. 8 (3) The initial premium deposit. 9 (4) The assessment provision. 10 (5) The termination provisions and minimum term of 11 membership, which minimum term of membership shall not be 12 less than one year. 13 (6) The duration of liability for additional 14 assessments following termination of membership, which 15 shall be for a period of not less than 3 years. 16 (7) The prerequisites for membership. 17 (8) A provision stating that a claim shall be paid 18 by the pool, regardless of the size of the claim, and 19 that the pool shall be reimbursed by the employer for any 20 amounts required to be paid by the employer under the 21 agreement. 22 (9) A provision stating that the terms of 23 termination after the first year of pool membership shall 24 be dictated by the pooling agreement. 25 (10) If a pooling agreement requires a member to 26 submit written notice in order for the member to withdraw 27 from a qualified pool, then the period in which the 28 member must provide the written notice cannot be greater 29 than 90 days. 30 (d) Plans of operation must disclose all of the 31 following: 32 (1) A listing of initial members. 33 (2) The aggregate loss history of initial members 34 for each of the last 3 years. HB5608 Engrossed -3- LRB9213608JSpc 1 (3) The amount of the net retention of the pool and 2 a list of reinsurers. 3 (4) The names of all entities that will provide 4 services for the pool and copies of proposed contracts in 5 connection those services. 6 (5) The safety and loss control programs to be 7 provided or required. 8 (e) The application must contain information about 9 initial members specified on forms prescribed by the 10 Director. 11 (f) The application must contain the combined loss 12 experience for the group for the last 3 years and any other 13 financial data required by the Director. 14 (g) A pool administrator's original books and records 15 relating to the operations of the pool shall at all times be 16 located within the State of Illinois. 17 (h) Any change of the pooling agreement, bylaws, plan of 18 operation, reinsurance agreements, or membership shall be 19 delivered to the Director within 30 days after the amendment 20 or change. 21 (i) A pool trustee must be an employee, officer, 22 director, or owner of a pool member. 23 (Source: P.A. 91-757, eff. 1-1-01.)