State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]

[ 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  shall  must include 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.)

[ Top ]