Illinois 96th Regular Session Status: Passed Senate 1 R cosponsors

SB 2817 — INS CD-CONTROL-DOMESTIC CO

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 96th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Illinois Insurance Code. Provides that no person possessing a controlling interest in any domestic company may divest, transfer, donate, or otherwise alienate or dispose of a domestic company's securities or enter into agreements for such transactions without obtaining prior written approval from the Director of Insurance. Makes changes concerning annual statements and confidentiality of records. Effective immediately, except that certain provisions take effect on January 1, 2011.

Bill Text

What changed in the latest version

15 added · 36 removed

Plain-language change summary

The updated version of Bill SB 2817 introduces several changes to the Illinois Insurance Code that require individuals with a controlling interest in a domestic company to obtain prior approval from the Director of Insurance before they can sell or transfer the company's securities. This aims to ensure that such transactions are closely monitored to protect the financial integrity of domestic companies. Additionally, the amendments clarify the handling of annual statements and enhance the confidentiality of records. These changes are significant as they promote accountability and transparency in the insurance industry, helping to safeguard consumers and shareholders alike.

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*LRB09618813RPM34199b* SB2817 96TH GENERAL ASSEMBLY State of Illinois and 2010 SB2817 Introduced 1/28/2010, by Sen.
SB2817 Engrossed LRB096 18813 RPM 34199 b AN ACT concerning insurance.
Mike Jacobs SYNOPSIS AS INTRODUCED:
ILCS 5/131.4a new ILCS 5/131.11 from Ch.
73, par.
743.11 ILCS 5/136 from Ch.
73, par.
748 ILCS 5/404 from Ch.
73, par.
1016 Amends the Illinois Insurance Code.
Provides that no person possessing a controlling interest in any domestic company may divest, transfer, donate, or otherwise alienate or dispose of a domestic company's securities or enter into agreements for such transactions without obtaining prior written approval from the Director of Insurance.
Makes changes concerning annual statements and confidentiality of records.
Effective immediately, except that certain provisions take effect on January 1, 2011.
LRB096 18813 RPM 34199 b A BILL FOR SB2817 LRB096 18813 RPM 34199 b AN ACT concerning insurance.
(b) The Director may grant an exemption to the approval SB2817 - 2 - LRB096 18813 RPM 34199 b required under this Section upon written request of the person divesting, transferring, donating, or otherwise alienating or disposing of the controlling interest, where (i) the acquiring party has filed with the Director the statement required by Section 131.5 or (ii) where the transaction qualifies for exemption under Section 131.10.
(b) The Director may grant an exemption to the approval SB2817 Engrossed - 2 - LRB096 18813 RPM 34199 b required under this Section upon written request of the person divesting, transferring, donating, or otherwise alienating or disposing of the controlling interest, where (i) the acquiring party has filed with the Director the statement required by Section 131.5 or (ii) where the transaction qualifies for exemption under Section 131.10.
77-673.) SB2817 - 3 - LRB096 18813 RPM 34199 b (215 ILCS 5/136) (from Ch.
77-673.) SB2817 Engrossed - 3 - LRB096 18813 RPM 34199 b (215 ILCS 5/136) (from Ch.
In addition, any company may be required by the Director, when he considers that SB2817 - 4 - LRB096 18813 RPM 34199 b action to be necessary and appropriate for the protection of policyholders, creditors, shareholders, or claimants, to file, within 60 days after mailing to the company a notice that such is required, a supplemental summary statement as of the last day of any calendar month occurring during the 100 days next preceding the mailing of such notice designated by him on forms prescribed and furnished by the Director.
In addition, any company may be required by the Director, when he considers that SB2817 Engrossed - 4 - LRB096 18813 RPM 34199 b action to be necessary and appropriate for the protection of policyholders, creditors, shareholders, or claimants, to file, within 60 days after mailing to the company a notice that such is required, a supplemental summary statement as of the last day of any calendar month occurring during the 100 days next preceding the mailing of such notice designated by him on forms prescribed and furnished by the Director.
(3) For the information of the public generally the Director shall cause an abstract of the information contained in the annual statement to be made available to the public as soon as practicable after filing with the Department, by printing those abstracts in pamphlet tabular form for free general distribution by the Department, or by such other publication in the city of Springfield or in the city of Chicago as may be reasonably necessary more fully to inform the SB2817 - 5 - LRB096 18813 RPM 34199 b public of the financial condition of companies transacting business in this State.
(3) For the information of the public generally the Director shall cause an abstract of the information contained in the annual statement to be made available to the public as soon as practicable after filing with the Department, by printing those abstracts in pamphlet tabular form for free general distribution by the Department, or by such other publication in the city of Springfield or in the city of Chicago as may be reasonably necessary more fully to inform the SB2817 Engrossed - 5 - LRB096 18813 RPM 34199 b public of the financial condition of companies transacting business in this State.
(5) All financial analysis ratios and examination synopsis concerning insurance companies that are submitted to the SB2817 - 6 - LRB096 18813 RPM 34199 b Director by the National Association of Insurance Commissioners' Insurance Regulatory Information System are confidential and may not be disclosed by the Director.
(5) All financial analysis ratios and examination synopsis concerning insurance companies that are submitted to the SB2817 Engrossed - 6 - LRB096 18813 RPM 34199 b Director by the National Association of Insurance Commissioners' Insurance Regulatory Information System are confidential and may not be disclosed by the Director.
(b) An Actuarial Report and underlying workpapers as required by the appropriate National Association of Insurance Commissioners Property and Casualty Annual SB2817 - 7 - LRB096 18813 RPM 34199 b Statement Instructions shall be prepared to support each Actuarial Opinion.
(b) An Actuarial Report and underlying workpapers as required by the appropriate National Association of Insurance Commissioners Property and Casualty Annual SB2817 Engrossed - 7 - LRB096 18813 RPM 34199 b Statement Instructions shall be prepared to support each Actuarial Opinion.
Documents, materials, or other information in the possession or control of the Director that are considered an Actuarial Report, workpapers, or Actuarial Opinion Summary provided in support of the opinion, and any other material provided by the company to the Director in SB2817 - 8 - LRB096 18813 RPM 34199 b connection with the Actuarial Report, workpapers or Actuarial Opinion Summary, must be given confidential treatment, are not subject to subpoena, and may not be made public by the Director or any other persons.
Documents, materials, or other information in the possession or control of the Director that are considered an Actuarial Report, workpapers, or Actuarial Opinion Summary provided in support of the opinion, and any other material provided by the company to the Director in SB2817 Engrossed - 8 - LRB096 18813 RPM 34199 b connection with the Actuarial Report, workpapers or Actuarial Opinion Summary, must be given confidential treatment, are not subject to subpoena, and may not be made public by the Director or any other persons.
(i) share documents, materials, or other information, including the confidential and privileged SB2817 - 9 - LRB096 18813 RPM 34199 b documents, materials or information subject to this paragraph (d) with the insurance department of any other state or country or with law enforcement officials of this or any other state or agency of the federal government at any time, as long as the agency or office receiving the document, material, or other information agrees in writing to hold it confidential and in a manner consistent with this Code;
(i) share documents, materials, or other information, including the confidential and privileged SB2817 Engrossed - 9 - LRB096 18813 RPM 34199 b documents, materials or information subject to this paragraph (d) with the insurance department of any other state or country or with law enforcement officials of this or any other state or agency of the federal government at any time, as long as the agency or office receiving the document, material, or other information agrees in writing to hold it confidential and in a manner consistent with this Code;
(e) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the Director under this Section or as a result of sharing as authorized in SB2817 - 10 - LRB096 18813 RPM 34199 b subparagraphs (i), (ii), and (iii) of paragraph (d) of subsection (6) of this Section.
(e) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the Director under this Section or as a result of sharing as authorized in SB2817 Engrossed - 10 - LRB096 18813 RPM 34199 b subparagraphs (i), (ii), and (iii) of paragraph (d) of subsection (6) of this Section.
(b) Except where another provision of this Code expressly prohibits a disclosure of confidential information to the specific officials or organizations described in this subsection, the Director may disclose or share any confidential records or information in his custody and control with any insurance regulatory officials of any state or country, with SB2817 - 11 - LRB096 18813 RPM 34199 b the law enforcement officials of this State, any other state, or the federal government, or with the National Association of Insurance Commissioners, upon the written agreement of the official or organization receiving the information to hold the information or records confidential and in a manner consistent with this Code.
(b) Except where another provision of this Code expressly prohibits a disclosure of confidential information to the specific officials or organizations described in this subsection, the Director may disclose or share any confidential records or information in his custody and control with any insurance regulatory officials of any state or country, with SB2817 Engrossed - 11 - LRB096 18813 RPM 34199 b the law enforcement officials of this State, any other state, or the federal government, or with the National Association of Insurance Commissioners, upon the written agreement of the official or organization receiving the information to hold the information or records confidential and in a manner consistent with this Code.
(4) Two years after the conclusion of the transactions to which they relate, the Director is authorized to destroy SB2817 - 12 - LRB096 18813 RPM 34199 b or otherwise dispose of all books, records, papers, memoranda, and correspondence directly related to all void, obsolete, or superseded rate filings and schedules required to be filed by statute;
(4) Two years after the conclusion of the transactions to which they relate, the Director is authorized to destroy SB2817 Engrossed - 12 - LRB096 18813 RPM 34199 b or otherwise dispose of all books, records, papers, memoranda, and correspondence directly related to all void, obsolete, or superseded rate filings and schedules required to be filed by statute;
(7) Whenever any records, papers, documents or memoranda are destroyed or otherwise disposed of pursuant to the provisions of this section, the Director shall execute and file in a separate, permanent office file a SB2817 - 13 - LRB096 18813 RPM 34199 b certificate listing and setting forth by summary description the records, papers, documents or memoranda so destroyed or otherwise disposed of, and the Director may, in his discretion, preserve copies of any such records, papers, documents or memoranda by means of microfilming or photographing the same.
(7) Whenever any records, papers, documents or memoranda are destroyed or otherwise disposed of pursuant to the provisions of this section, the Director shall execute and file in a separate, permanent office file a SB2817 Engrossed - 13 - LRB096 18813 RPM 34199 b certificate listing and setting forth by summary description the records, papers, documents or memoranda so destroyed or otherwise disposed of, and the Director may, in his discretion, preserve copies of any such records, papers, documents or memoranda by means of microfilming or photographing the same.
This Act takes effect upon becoming law, except that the provisions changing Sec.
This Act takes effect upon becoming law, except that the provisions changing Section 136 of the Illinois Insurance Code take effect on January 1, 2011.
136 of the Illinois Insurance Code take effect on January 1, 2011.
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How this bill changes current law

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

The bill adds new requirements for divesting control of domestic insurance companies and modifies existing regulations for insurance company filings.

  • 215 ILCS 5/131.4a

    Sec. 131.4a. Divesture of control of a domestic company. (a) No person possessing a controlling interest in any domestic company may divest, transfer, donate, or otherwise alienate or dispose of a domestic company's securities, in whole or in part, or enter into agreements for such transactions, without obtaining prior written approval of such transactions or agreements from the Director. The request for approval shall be in writing and shall include a copy of any applicable agreement along with a description of the transaction in sufficient detail, satisfactory to the Director, for the Director to determine whether such transaction satisfies the standards set forth in items (a) and (c) through (e) of subsection (1) of Section 131.8 of this Code. This Section shall not diminish an acquiring party's duty to comply with the provisions of this Article.

    This establishes a new requirement for prior written approval from the Director before divesting control of a domestic insurance company.

  • 215 ILCS 5/131.4a

    (b) The Director may grant an exemption to the approval required under this Section upon written request of the person divesting, transferring, donating, or otherwise alienating or disposing of the controlling interest, where (i) the acquiring party has filed with the Director the statement required by Section 131.5 or (ii) where the transaction qualifies for exemption under Section 131.10.

    This allows the Director to grant exemptions from the approval requirement under certain conditions.

  • 215 ILCS 5/131.4a

    (c) In the event that the Director denies a request for approval under this Section, the person that filed for the approval may request a hearing in accordance with the provisions of subsection (3) of Section 131.8, where, for purposes of this Section only, references to the statement required by Section 131.5 shall be deemed to refer to a request for approval under this Section.

    This provides a mechanism for requesting a hearing if the Director denies a divestiture request.

  • 215 ILCS 5/131.11

    131.4, 131.5; or → 131.4, 131.4a, 131.5; or

    This updates the list of violations to include failing to file required statements related to the new Section 131.4a.

Action History

  1. Session Sine Die

  2. Pursuant to Senate Rule 3-9(b) / Referred to Assignments

  3. Placed on Calendar Order of Concurrence House Amendment(s) 1 - April 30, 2010

  4. Secretary's Desk - Concurrence House Amendment(s) 1

  5. Third Reading - Short Debate - Passed 110-000-001

  6. Added Alternate Chief Co-Sponsor Rep. JoAnn D. Osmond

  7. Added Alternate Chief Co-Sponsor Rep. Frank J. Mautino

  8. Placed on Calendar Order of 3rd Reading - Short Debate

  9. Second Reading - Short Debate

  10. Placed on Calendar 2nd Reading - Short Debate

  11. Do Pass as Amended / Short Debate Insurance Committee; 018-001-000

  12. House Committee Amendment No. 1 Adopted in Insurance Committee; by Voice Vote

  13. House Committee Amendment No. 1 Filed with Clerk by Insurance Committee

  14. Assigned to Insurance Committee

  15. Referred to Rules Committee

  16. First Reading

  17. Placed on Calendar Order of First Reading

  18. Chief House Sponsor Rep. Karen A. Yarbrough

  19. Arrived in House

  20. Third Reading - Passed; 055-000-000

  21. Placed on Calendar Order of 3rd Reading March 15, 2010

  22. Second Reading

  23. Placed on Calendar Order of 2nd Reading March 9, 2010

  24. Do Pass Insurance; 012-000-000

  25. Postponed - Insurance

  26. Assigned to Insurance

  27. Referred to Assignments

  28. First Reading

  29. Filed with Secretary by Sen. Mike Jacobs

Sponsors

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on

Sponsors (0)

None.

Co-sponsors (1)

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 110 Yea · 0 Nay · 8 Other
Party YeaNayPresentNot Voting
Unaffiliated 95006
Republican 3001
Democrat 12001
Total 110008
% of votes cast 93%0%0%7%
How each member voted (118)
Member Party Vote
Hatcher — Yea
Jefferson — Yea
Nekritz — Yea
McGuire — Yea
Madigan — Yea
Brady — Yea
Mell — Yea
Mendoza — Yea
Burke — Yea
Sullivan — Yea
Moffitt — Yea
Mulligan — Yea
Mitchell, Bill — Yea
Myers — Yea
Osterman — Not Voting
Pihos — Yea
Gordon, Careen — Yea
Soto — Yea
Gordon, Jehan — Yea
Thapedi — Yea
Hannig — Yea
Harris — Yea
Tryon — Yea
Turner — Yea
Hernandez — Yea
Verschoore — Yea
Watson — Yea
Wait — Yea
Washington — Not Voting
Winters — Yea
Howard — Yea
Zalewski — Yea
Mitchell, Jerry — Not Voting
Cavaletto — Yea
Coladipietro — Yea
Cross — Yea
Cultra — Yea
Currie — Yea
D'Amico — Yea
Durkin — Not Voting
Fortner — Yea
Franks — Not Voting
Fritchey — Yea
Froehlich — Yea
Golar — Yea
Holbrook — Yea
Jackson — Yea
Jakobsson — Yea
Lang — Yea
Leitch — Yea
May — Yea
McAuliffe — Yea
McCarthy — Yea
Davis, Monique — Yea
Senger — Yea
Sente — Yea
Reitz — Yea
Sommer — Yea
Lyons — Yea
Bradley — Yea
Dugan — Yea
Dunkin — Yea
Eddy — Yea
Farnham — Yea
Flider — Yea
Flowers — Yea
Kosel — Yea
Osmond — Yea
Phelps — Yea
Poe — Yea
Pritchard — Yea
Ramey — Yea
Reboletti — Yea
Reis — Yea
Riley — Yea
Sacia — Yea
Saviano — Yea
Schmitz — Yea
Yarbrough — Yea
Acevedo — Yea
Arroyo — Yea
Bassi — Yea
Beaubien — Yea
Beiser — Yea
Bellock — Yea
Mathias — Not Voting
Berrios — Yea
Biggins — Yea
Mautino — Yea
Black — Yea
Boland — Yea
Bost — Yea
Brauer — Yea
Burns — Yea
Carberry — Yea
Cole — Yea
Colvin — Yea
Connelly — Yea
McAsey — Yea
Coulson — Yea
Chapa LaVia — Yea
Anthony DeLuca Democrat Yea
Camille Y. Lilly Democrat Yea
Fred Crespo Democrat Yea
Jay Hoffman Democrat Yea
La Shawn K. Ford Democrat Not Voting
Lakesia Collins Democrat Yea
Mark L. Walker Democrat Yea
Nicholas K. Smith Democrat Yea
Patrick J. Joyce Democrat Yea
Robert "Bob" Rita Democrat Yea
Robyn Gabel Democrat Yea
Sara Feigenholtz Democrat Yea
William "Will" Davis Democrat Yea
Brad Stephens Republican Yea
Chapin Rose Republican Yea
Chris Miller Republican Not Voting
Jil Tracy Republican Yea

Official roll call →

Third Reading

Passed 55 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democrat 9000
Unaffiliated 45004
Republican 1000
Total 55004
% of votes cast 93%0%0%7%
How each member voted (59)
Member Party Vote
McCarter — Yea
Schoenberg — Yea
Demuzio — Yea
Jacobs — Yea
Dillard — Yea
Hutchinson — Yea
Kotowski — Yea
Lauzen — Not Voting
Jones, J. — Yea
Sullivan — Yea
Luechtefeld — Yea
Maloney — Yea
Meeks — Not Voting
Muñoz — Not Voting
Noland — Yea
Radogno — Yea
Cullerton — Yea
Steans — Yea
Brady — Not Voting
Trotter — Yea
Viverito — Yea
Wilhelmi — Yea
Clayborne — Yea
Cronin — Yea
Crotty — Yea
Dahl — Yea
DeLeo — Yea
Duffy — Yea
Forby — Yea
Garrett — Yea
Haine — Yea
Hendon — Yea
Hultgren — Yea
Pankau — Yea
Raoul — Yea
Righter — Yea
Risinger — Yea
Rutherford — Yea
Sandoval — Yea
Silverstein — Yea
Link — Yea
Althoff — Yea
Martinez — Yea
Bivins — Yea
Bomke — Yea
Bond — Yea
Burzynski — Yea
Millner — Yea
Frerichs — Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Yea

Official roll call →

Subjects

finance health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 2817 do?
Amends the Illinois Insurance Code. Provides that no person possessing a controlling interest in any domestic company may divest, transfer, donate, or otherwise alienate or dispose of a domestic company's securities or enter into agreements for such transactions without obtaining prior written approval from the Director of Insurance. Makes changes concerning annual statements and confidentiality of records. Effective immediately, except that certain provisions take effect on January 1, 2011.
Who sponsors SB 2817?
SB 2817 is sponsored by Paul Jacobs (Republican).
What is the current status of SB 2817?
This bill died with 96th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 2817?
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