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| Public Act 102-0396 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Sections 532, 538, and 538.7 as follows:
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(215 ILCS 5/532) (from Ch. 73, par. 1065.82)
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Sec. 532. Purpose. | ||||
(a) The purpose of this Article is to provide a mechanism
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for the payment of covered claims under certain insurance | ||||
policies, to
avoid excessive delay in payment of covered | ||||
claims, to avoid financial loss to claimants or policyholders
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because of the entry of an Order of Liquidation against an | ||||
insolvent
company, including through services offered to the | ||||
Director in her or his capacity as receiver under Article XIII | ||||
of this Code that relate to covered claims, and to provide a | ||||
Fund to assess among member companies the costs cost of such | ||||
protection and maintain the continuity and self-sufficient | ||||
operation of the Fund, and to offset the costs associated with | ||||
maintaining the Fund's continuity and self-sufficient | ||||
operations when practical by providing assistance and services | ||||
to the Director in her or his capacity as receiver under | ||||
Article XIII of this Code as described in this Section among
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member companies.
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(b) The purpose of this Article is also to provide a | ||
mechanism for the Fund to participate in and facilitate the | ||
process by which the assets of an insolvent company are | ||
marshaled and distributed pursuant to Article XIII of this | ||
Code beyond reimbursing the cost of covered claims. This | ||
subsection (b) is inoperative 5 years after the effective date | ||
of this amendatory Act of the 102nd General Assembly. | ||
(Source: P.A. 85-576.)
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(215 ILCS 5/538) (from Ch. 73, par. 1065.88)
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Sec. 538. Powers
of the Fund. The Fund shall have the | ||
powers enumerated in the Sections following this Section and | ||
preceding Section 539 538.1 through
538.8.
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(Source: P.A. 77-305.)
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(215 ILCS 5/538.7) (from Ch. 73, par. 1065.88-7)
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Sec. 538.7.
(a) The Fund may perform such other acts as are | ||
necessary or proper to
effectuate the purposes of this | ||
Article.
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(b) The Fund may contract with the Office of Special | ||
Deputy Receiver or any other person or organizations | ||
authorized by law to carry out the duties of the Director in | ||
her or his capacity as a receiver under Article XIII of this | ||
Code. The power of the Fund to contract with these persons or | ||
entities includes, but is not limited to, providing consulting | ||
services and claims administration services that assist with | ||
these persons or entities in the performance of their | ||
respective statutory and legal functions provided by law. The | ||
Fund may only exercise the authority to contract pursuant to | ||
this subsection upon the board of director's written | ||
determination that the provisioning of such services will | ||
advance the purposes set forth in Section 532. Any contract | ||
the Fund may enter into to provide services pursuant to this | ||
subsection shall be subordinate and subject to the Fund's | ||
statutory obligations to timely pay covered claims and avoid | ||
financial loss to claimants or policyholders described in this | ||
Article. | ||
This subsection (b) is inoperative 5 years after the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly. | ||
(Source: P.A. 82-210.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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