HB 4451 — INSURANCE GUARANTY FUND

Summary

Amends the Illinois Insurance Code. Authorizes the Illinois Insurance Guaranty Fund, at the direction of its board of directors and subject to the approval of the Director of Insurance, to form and own a not-for-profit corporation to which the Fund may delegate certain of its powers and duties provided by the Code. Allows the not-for-profit corporation to contract to provide services to the Office of Special Deputy Receiver or any other person or organization authorized by law to carry out the duties of the Director in the capacity of receiver under specified provisions of the Code, the Illinois Life and Health Insurance Guaranty Association, and organizations in another state similar to the Illinois Insurance Guaranty Fund or the Illinois Life and Health Insurance Guaranty Association. Effective immediately.

Bill Text

• Introduced View text Current html

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill authorizes the Illinois Insurance Guaranty Fund to form a not-for-profit corporation to delegate certain powers and duties.

• 215 ILCS 5/537.9

  including a corporation formed pursuant to Section 538.10 of this Code.

  This addition allows the Fund to employ a corporation formed under the new Section 538.10 to handle claims.

• 215 ILCS 5/538.2

  or may delegate such functions to a corporation formed → or may delegate such functions to a corporation formed pursuant to Section 538.10 of this Code.

  This change clarifies that functions can be delegated specifically to a corporation formed under Section 538.10.

• 215 ILCS 5/538.10

  Delegation of powers to not-for-profit corporation. The Fund may, at the direction of its board of directors and subject to the approval of the Director, form and own a not-for-profit corporation domiciled in this State to which the Fund may delegate in its plan of operation any or all powers and duties of the Fund, except those provided by Sections 537.6 and 538.3 of this Code. The not-for-profit corporation may contract to provide services to any or all of the following types of organizations: (a) the Office of Special Deputy Receiver or any other person or organization authorized by law to carry out the duties of the Director in the capacity as a receiver under Article XIII of this Code; (b) the Illinois Life and Health Insurance Guaranty Association; and (c) organizations in another state similar to the Fund or the Illinois Life and Health Insurance Guaranty Association. The not-for-profit corporation is authorized to contract pursuant to this Section upon the board of directors' written determination that the provisioning of such services will advance the purposes set forth in Section 532 of this Code, provided that any such contract with a similar organization described in item (c) of this Section shall be subject to the prior approval of the Director.

  This new section enables the formation and operation of a not-for-profit corporation to manage certain duties and contracts of the Fund.

Action History

1. February 03, 2020

   Referred to Rules Committee

2. February 03, 2020

   First Reading

3. January 31, 2020

   Filed with the Clerk by Rep. Jay Hoffman

Sponsors

• Jay Hoffman · Cosponsor

Subjects