Bill Text: IL SB3404 | 2013-2014 | 98th General Assembly | Amended
Bill Title: Amends the Illinois Insurance Code in relation to fraternal benefit societies. Adds the Fraternal Benefit Society Guaranty Association Law to the Code as a new Article to provide for the protection of members of fraternal benefit societies in the event of impairment or insolvency. Provides that a fraternal benefit society must be governed by a board of directors and managed by qualified officers. Sets the permissible number of directors and establishes certain qualifications. Authorizes the Director of Insurance to take action when a society is or may become insolvent. Creates the Illinois Fraternal Benefit Society Guaranty Association and requires participation by societies and others authorized to transact business in Illinois. Sets forth the powers and duties of the Association. Defines terms.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2015-01-13 - Session Sine Die [SB3404 Detail]
Download: Illinois-2013-SB3404-Amended.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 3404
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 3404 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Illinois Insurance Code is amended by | ||||||
5 | changing Sections 286.1, 291.1, 294.1, 297.1, 300.1, and 315.6 | ||||||
6 | and by adding Sections 295.2 and 315.9 as follows:
| ||||||
7 | (215 ILCS 5/286.1) (from Ch. 73, par. 898.1)
| ||||||
8 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
9 | Sec. 286.1. Purposes and Powers. | ||||||
10 | (a) A society shall operate for the
benefit of members and | ||||||
11 | their beneficiaries by:
| ||||||
12 | (1) Providing benefits as specified in Section 297.1 of | ||||||
13 | this amendatory Act; and
| ||||||
14 | (2) Operating for one or more social, intellectual, | ||||||
15 | educational,
charitable, benevolent, moral, fraternal, | ||||||
16 | patriotic or religious purposes
for the benefit of its |
| |||||||
| |||||||
1 | members, which may also be extended to others.
Such | ||||||
2 | purposes may be carried out directly by the society or | ||||||
3 | indirectly
through subsidiary corporations or affiliated | ||||||
4 | organizations.
| ||||||
5 | (b) Every society shall have the power to adopt laws and | ||||||
6 | rules for the
government of the society, the admission of its | ||||||
7 | members and the management
of its affairs. It shall have the | ||||||
8 | power to change, alter, add to or amend
such laws and rules and | ||||||
9 | shall have such other powers as are necessary and
incidental to | ||||||
10 | carrying into effect the objects and purposes of the society.
| ||||||
11 | (c) A domestic society that provides any of the benefits | ||||||
12 | specified in Section 297.1 of this Code must be governed by a | ||||||
13 | board of directors and managed by qualified officers subject to | ||||||
14 | the following requirements: | ||||||
15 | (1) The laws of a society must provide that: | ||||||
16 | (i) the board of directors shall have the powers | ||||||
17 | and perform the duties ordinarily possessed and | ||||||
18 | exercised by a board of directors under this Code, | ||||||
19 | including, but not limited to, the authority and | ||||||
20 | responsibility for the hiring and the discharge of a | ||||||
21 | president, chief executive officer, or an equivalent | ||||||
22 | position; and | ||||||
23 | (ii) the board of directors may remove a director | ||||||
24 | for cause and replace the director with another | ||||||
25 | qualified director. | ||||||
26 | After the effective date of this amendatory Act of the |
| |||||||
| |||||||
1 | 98th General Assembly, a domestic society shall amend its | ||||||
2 | laws, as necessary, to comply with this paragraph (1) as | ||||||
3 | soon as reasonably practicable, but in no event later than | ||||||
4 | January 1, 2019. | ||||||
5 | (2) A person convicted of a felony may not be a | ||||||
6 | director or an officer of a domestic society. | ||||||
7 | (3) A society shall provide information regarding | ||||||
8 | qualifications of board candidates to voting members prior | ||||||
9 | to the time of election. | ||||||
10 | (4) Each newly elected director of a domestic society | ||||||
11 | shall participate in a board training or orientation | ||||||
12 | program within 6 months after their election to the board | ||||||
13 | that includes information regarding board duties and | ||||||
14 | responsibilities. | ||||||
15 | (5) At least annually, the board of directors shall | ||||||
16 | conduct a self-assessment. | ||||||
17 | (6) Each domestic society shall establish an audit | ||||||
18 | committee. The composition and responsibilities of the | ||||||
19 | audit committee shall comply with the Illinois | ||||||
20 | Administrative Code provisions relating to annual | ||||||
21 | financial reporting. | ||||||
22 | (Source: P.A. 84-303 .)
| ||||||
23 | (215 ILCS 5/291.1) (from Ch. 73, par. 903.1)
| ||||||
24 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
25 | Sec. 291.1. Organization. A domestic society organized on |
| |||||||
| |||||||
1 | or after
the effective date of this amendatory Act shall be | ||||||
2 | formed as follows:
| ||||||
3 | (a) Seven or more citizens of the United States, a | ||||||
4 | majority of whom are
citizens of this State, who desire to | ||||||
5 | form a fraternal benefit society may
make, sign and | ||||||
6 | acknowledge, before some officer competent to take
| ||||||
7 | acknowledgement of deeds, articles of incorporation, in | ||||||
8 | which shall be stated:
| ||||||
9 | (1) The proposed corporate name of the society, | ||||||
10 | which shall not so
closely resemble the name of any | ||||||
11 | society or insurance company already
authorized to | ||||||
12 | transact business in this State as to be misleading or | ||||||
13 | confusing;
| ||||||
14 | (2) The place where its principal office shall be | ||||||
15 | located within this State;
| ||||||
16 | (3) The purposes for which it is being formed and | ||||||
17 | the mode in which its
corporate powers are to be | ||||||
18 | exercised. Such purposes shall not include more
| ||||||
19 | liberal powers than are granted by this amendatory Act; | ||||||
20 | and
| ||||||
21 | (4) The names and residences of the incorporators | ||||||
22 | and the names,
residences and official titles of all | ||||||
23 | the officers, trustees, directors or
other persons who | ||||||
24 | are to have and exercise the general control of the
| ||||||
25 | management of the affairs and funds of the society for | ||||||
26 | the first year or
until the ensuing election, at which |
| |||||||
| |||||||
1 | all such officers shall be elected by
the supreme | ||||||
2 | governing body, which election shall be held not later | ||||||
3 | than one
year from the date of issuance of the | ||||||
4 | permanent certificate of authority;
| ||||||
5 | (b) Duplicate originals of the articles of | ||||||
6 | incorporation, certified
copies of the society's bylaws | ||||||
7 | and rules, copies of all proposed forms of
certificates, | ||||||
8 | applicants and rates therefor, and circulars to be issued
| ||||||
9 | by the society and a bond conditioned upon the return to | ||||||
10 | applicants of the
advanced payments if the organization is | ||||||
11 | not completed within one year
shall be filed with the | ||||||
12 | Director, who may require such further information
as the | ||||||
13 | Director deems necessary. The bond with sureties approved | ||||||
14 | by the
Director shall be in such amount, not less than | ||||||
15 | $300,000
nor more than $1,500,000, as
required by the | ||||||
16 | Director. All documents filed are to be in the
English | ||||||
17 | language. If the Director finds that the purposes of the | ||||||
18 | society
conform to the requirements of this amendatory Act | ||||||
19 | and all provisions of the law
have been complied with, the | ||||||
20 | Director shall approve the articles of
incorporation and | ||||||
21 | issue the incorporators a preliminary certificate of
| ||||||
22 | authority authorizing the society to solicit members as | ||||||
23 | hereinafter provided;
| ||||||
24 | (c) No preliminary certificate of authority issued | ||||||
25 | under the provisions
of this Section shall be valid after | ||||||
26 | one year from its date of issue or
after such further |
| |||||||
| |||||||
1 | period, not exceeding one year, as may be authorized by
the | ||||||
2 | Director, upon cause shown, unless the 500 applicants
| ||||||
3 | hereinafter required have been secured and the | ||||||
4 | organization has
been completed as herein provided. The | ||||||
5 | articles of incorporation and all other
proceedings | ||||||
6 | thereunder shall become null and void in one year from the
| ||||||
7 | date of the preliminary certificate of authority or at the | ||||||
8 | expiration of
the extended period, unless the society shall | ||||||
9 | have completed its
organization and received a certificate | ||||||
10 | of authority to do business as
hereinafter provided;
| ||||||
11 | (d) Upon receipt of a preliminary certificate of | ||||||
12 | authority from the
Director, the society may solicit | ||||||
13 | members for the purpose of completing its
organization, | ||||||
14 | shall collect from each applicant the amount of not less | ||||||
15 | than
one regular monthly premium in accordance with its | ||||||
16 | table of rates and
shall issue to each such applicant a | ||||||
17 | receipt for the amount so collected.
No society shall incur | ||||||
18 | any liability other than for the return of such
advance | ||||||
19 | premium nor issue any certificate nor pay, allow or offer | ||||||
20 | or
promise to pay or allow any benefit to any person until:
| ||||||
21 | (1) Actual bona fide applications for benefits | ||||||
22 | have been secured on not
less than 500 applicants and | ||||||
23 | any necessary evidence of
insurability has been | ||||||
24 | furnished to and approved by the society;
| ||||||
25 | (2) At least 10 subordinate lodges have been | ||||||
26 | established into which the
500 applicants have been |
| |||||||
| |||||||
1 | admitted;
| ||||||
2 | (3) There has been submitted to the Director, under | ||||||
3 | oath of the
president or secretary, or corresponding | ||||||
4 | officer of the society, a list of
such applicants, | ||||||
5 | giving their names, addresses, date each was admitted,
| ||||||
6 | name and number of the subordinate lodge of which each | ||||||
7 | applicant is a
member, amount of benefits to be granted | ||||||
8 | and premiums therefor; and
| ||||||
9 | (4) It shall have been shown to the Director, by | ||||||
10 | sworn statement of the
treasurer or corresponding | ||||||
11 | officer of such society, that a least 500
applicants | ||||||
12 | have each paid in cash at least one regular monthly
| ||||||
13 | premium as herein provided, which premiums in the | ||||||
14 | aggregate shall amount to
at least $150,000. Said | ||||||
15 | advance premiums
shall be held in trust during the | ||||||
16 | period of organization, and, if the society
has not | ||||||
17 | qualified for a certificate of authority within one | ||||||
18 | year unless
extended by the Director, as herein | ||||||
19 | provided, such premiums shall be
returned to said | ||||||
20 | applicants; and
| ||||||
21 | (5) In the case of a domestic society that is | ||||||
22 | organized after the effective date of this amendatory | ||||||
23 | Act of the 98th General Assembly, the society meets the | ||||||
24 | following requirements: | ||||||
25 | (i) maintains a minimum surplus of $2,000,000, | ||||||
26 | or such higher amount as the Director may deem |
| |||||||
| |||||||
1 | necessary; and | ||||||
2 | (ii) meets any other requirements as | ||||||
3 | determined by the Director. | ||||||
4 | (e) The Director may make such examination and require | ||||||
5 | such further
information as the Director deems necessary. | ||||||
6 | Upon presentation of
satisfactory evidence that the | ||||||
7 | society has complied with all the provisions
of law, the | ||||||
8 | Director shall issue to the society a certificate of | ||||||
9 | authority
to that effect and that the society is authorized | ||||||
10 | to transact business
pursuant to the provisions of this | ||||||
11 | amendatory Act; and
| ||||||
12 | (f) Any incorporated society authorized to transact | ||||||
13 | business in this
State at the time this amendatory Act | ||||||
14 | becomes effective shall not be
required to reincorporate.
| ||||||
15 | (Source: P.A. 84-303 .)
| ||||||
16 | (215 ILCS 5/294.1) (from Ch. 73, par. 906.1)
| ||||||
17 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
18 | Sec. 294.1. Reinsurance. | ||||||
19 | (a) A domestic society may enter into reinsurance
| ||||||
20 | transactions only in accordance with Article XI of this Code.
| ||||||
21 | (b) A domestic society may reinsure the risks of another | ||||||
22 | society in connection with a merger transaction with approval | ||||||
23 | by the Director. | ||||||
24 | (Source: P.A. 84-303 .)
|
| |||||||
| |||||||
1 | (215 ILCS 5/295.2 new) | ||||||
2 | Sec. 295.2. Maintenance of solvency. | ||||||
3 | (a) In the event a domestic society has an authorized | ||||||
4 | control level event described in Section 35A-25 of this Code | ||||||
5 | under circumstances the Director determines will not be | ||||||
6 | promptly remedied, the Director may, in addition to all other | ||||||
7 | actions required or permitted by subsection (b) of Section | ||||||
8 | 35A-25 of this Code, issue an order declaring the domestic | ||||||
9 | society to be in hazardous condition and ordering that all | ||||||
10 | steps be taken to remedy such condition pursuant to this | ||||||
11 | Section. | ||||||
12 | (b) A domestic society may negotiate an agreement to | ||||||
13 | transfer members, certificates, and other assets and | ||||||
14 | liabilities of the society, in whole or in part, to another | ||||||
15 | organization through merger, consolidation, assumption, or | ||||||
16 | other means. Such transfer shall be concluded within the | ||||||
17 | timeframe established by the Director and subject to approval | ||||||
18 | by the Director. Such transfer agreement shall be deemed fully | ||||||
19 | approved by the domestic society upon majority vote of its | ||||||
20 | board of directors. Such transfer shall be effective | ||||||
21 | notwithstanding the provisions of Section 295.1 of this Code or | ||||||
22 | any other law or regulation or laws of the domestic society | ||||||
23 | requiring another form of notice to or approval by members, | ||||||
24 | which shall be superseded by this Section. | ||||||
25 | (c) In the event of an agreement to transfer under this | ||||||
26 | Section to an organization without a certificate of authority |
| |||||||
| |||||||
1 | in this State, the Director may grant a limited certificate of | ||||||
2 | authority to such organization, upon request, if the | ||||||
3 | organization does not apply for and obtain a certificate of | ||||||
4 | authority to transact business in this State. Such limited | ||||||
5 | certificate of authority shall grant the organization | ||||||
6 | authority to service the certificates following the transfer | ||||||
7 | and fulfill all obligations owed to certificate holders but not | ||||||
8 | to otherwise transact insurance business in this State. | ||||||
9 | (d) The board of directors of a domestic society may | ||||||
10 | suspend or modify its qualifications for membership as | ||||||
11 | necessary or appropriate to facilitate an agreement to transfer | ||||||
12 | under this Section, notwithstanding the laws of the society, or | ||||||
13 | any other law or regulation to the contrary.
| ||||||
14 | (215 ILCS 5/297.1) (from Ch. 73, par. 909.1)
| ||||||
15 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
16 | Sec. 297.1. Benefits. | ||||||
17 | (a) A society may provide the following contractual
| ||||||
18 | benefits in any form:
| ||||||
19 | (1) Death benefits;
| ||||||
20 | (2) Endowment benefits;
| ||||||
21 | (3) Annuity benefits;
| ||||||
22 | (4) Temporary or permanent disability benefits;
| ||||||
23 | (5) Hospital, medical or nursing benefits;
| ||||||
24 | (6) Monument or tombstone benefits to the memory of | ||||||
25 | deceased members; and
|
| |||||||
| |||||||
1 | (7) Such other benefits as authorized for life insurers | ||||||
2 | and which are
not inconsistent with this amendatory Act.
| ||||||
3 | (b) A society shall specify in its rules those persons who | ||||||
4 | may be
issued, or covered by, the contractual benefits in | ||||||
5 | subsection (a),
consistent with providing benefits to members | ||||||
6 | and their dependents.
A society may provide benefits on the | ||||||
7 | lives of children under the minimum age
for adult membership | ||||||
8 | upon application of an adult person. | ||||||
9 | (c) After the effective date of this amendatory Act of the | ||||||
10 | 98th General Assembly, a society shall provide an applicant for | ||||||
11 | contractual benefits a disclosure statement that reads | ||||||
12 | substantially as follows: | ||||||
13 | ". . . . . . .(name of the society) is licensed to do | ||||||
14 | business in the State of Illinois as a fraternal benefit | ||||||
15 | society. As such, it is not included in the Illinois Life | ||||||
16 | and Health Guaranty Association (otherwise known as the | ||||||
17 | Guaranty Association). This means that fraternal benefit | ||||||
18 | societies cannot be assessed for the insolvency of other | ||||||
19 | life insurers or other fraternal benefit societies. By law, | ||||||
20 | a fraternal benefit society is responsible for its own | ||||||
21 | solvency. If there is an impairment of reserves, a | ||||||
22 | certificate holder may be assessed a proportionate share of | ||||||
23 | the impairment. This process is described in the | ||||||
24 | certificate issued by the society.". | ||||||
25 | The statement must appear immediately above the | ||||||
26 | applicant's signature on the society's membership application |
| |||||||
| |||||||
1 | or certificate or policy application, in upper case and bold | ||||||
2 | type or boxed.
| ||||||
3 | (Source: P.A. 84-303 .)
| ||||||
4 | (215 ILCS 5/300.1) (from Ch. 73, par. 912.1)
| ||||||
5 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
6 | Sec. 300.1. The Benefit Contract. | ||||||
7 | (a) Every society authorized to do
business in this State | ||||||
8 | shall issue to each owner of a benefit contract a
certificate | ||||||
9 | specifying the amount of benefits provided thereby. The
| ||||||
10 | certificate, together with any riders or endorsements attached | ||||||
11 | thereto,
the laws of the society, the application for | ||||||
12 | membership, the application
for insurance and declaration of | ||||||
13 | insurability, if any, signed by the
applicant and all | ||||||
14 | amendments to each thereof shall constitute the benefit
| ||||||
15 | contract, as of the date of issuance, between the society and | ||||||
16 | the owner,
and the certificate shall so state. A copy of the | ||||||
17 | application for insurance
and declaration of insurability, if | ||||||
18 | any, shall be endorsed upon or attached
to the certificate. All | ||||||
19 | statements on the application shall be
representations and not | ||||||
20 | warranties. Any waiver of this provision shall be void.
| ||||||
21 | (b) Any changes, additions or amendments to the laws of the | ||||||
22 | society duly
made or enacted subsequent to the issuance of the | ||||||
23 | certificate shall bind
the owner and the beneficiaries and | ||||||
24 | shall govern and control the benefit
contract in all respects | ||||||
25 | the same as though such changes, additions or
amendments had |
| |||||||
| |||||||
1 | been made prior to and were in force at the time of the
| ||||||
2 | application for insurance, except that no change, addition or | ||||||
3 | amendment
shall destroy or diminish benefits which the society | ||||||
4 | contracted to give the
owner as of the date of issuance.
| ||||||
5 | (c) Any person upon whose life a benefit contract is issued | ||||||
6 | prior to
attaining the age of majority shall be bound by the | ||||||
7 | terms of the
application and certificate and by all the laws | ||||||
8 | and rules of the society to
the same extent as though the age | ||||||
9 | of majority had been attained at the
time of application.
| ||||||
10 | (d) A society shall provide in its laws and its | ||||||
11 | certificates that, if its
reserves as to all or any class of | ||||||
12 | certificates become impaired, its board of
directors or | ||||||
13 | corresponding body may require that there shall be paid by
the | ||||||
14 | owner to the society an assessment in the amount of the owner's | ||||||
15 | equitable proportion of
such deficiency as ascertained by its | ||||||
16 | board, and that, if the payment is not
made, either (1) it | ||||||
17 | shall stand as an indebtedness against the certificate
and draw | ||||||
18 | interest not to exceed the rate specified for certificate loans
| ||||||
19 | under the certificates; or (2) in lieu of or in combination | ||||||
20 | with (1), the
owner may accept a proportionate reduction in | ||||||
21 | benefits under the
certificate. However, in no event may an | ||||||
22 | assessment obligation be forgiven by the society in lieu of | ||||||
23 | collection or reduction in benefits. The society may specify | ||||||
24 | the manner of the election and which
alternative is to be | ||||||
25 | presumed if no election is made. No such assessment shall take | ||||||
26 | effect unless a 30-day notification has been provided to the |
| |||||||
| |||||||
1 | Director, who shall have the ability to disapprove the | ||||||
2 | assessment only if the Director finds that such assessment is | ||||||
3 | not in the best interests of the benefit members of the | ||||||
4 | domestic society. Disapproval by the Director shall be made | ||||||
5 | within 30 days after receipt of notice and shall be in writing | ||||||
6 | and mailed to the domestic society. If the Director disapproves | ||||||
7 | the assessment, the reasons therefore shall be stated in the | ||||||
8 | written notice.
| ||||||
9 | (e) Copies of any of the documents mentioned in this | ||||||
10 | Section, certified
by the secretary or corresponding officer of | ||||||
11 | the society, shall be received
in evidence of the terms and | ||||||
12 | conditions thereof.
| ||||||
13 | (f) No certificate shall be delivered or issued for | ||||||
14 | delivery in this
State unless a copy of the form has been filed | ||||||
15 | with the Director in the
manner provided for like policies | ||||||
16 | issued by life insurers in this State.
Every life, accident, | ||||||
17 | health or disability insurance certificate and every
annuity | ||||||
18 | certificate issued on or after one year from the effective date | ||||||
19 | of
this amendatory Act shall meet the standard contract | ||||||
20 | provision requirements not
inconsistent with this amendatory | ||||||
21 | Act for like policies issued by life insurers in
this State | ||||||
22 | except that a society may provide for a grace period for | ||||||
23 | payment
of premiums of one full month in its certificates. The | ||||||
24 | certificate shall
also contain a provision stating the amount | ||||||
25 | of premiums which are payable
under the certificate and a | ||||||
26 | provision reciting or setting forth the
substance of any |
| |||||||
| |||||||
1 | sections of the society's laws or rules in force at the
time of | ||||||
2 | issuance of the certificate which, if violated, will result in | ||||||
3 | the
termination or reduction of benefits payable under the | ||||||
4 | certificate. If the
laws of the society provide for expulsion | ||||||
5 | or suspension of a member, the
certificate shall also contain a | ||||||
6 | provision that any member so expelled or
suspended, except for | ||||||
7 | nonpayment of a premium or within the contestable
period for | ||||||
8 | material misrepresentation in the application for membership | ||||||
9 | or
insurance, shall have the privilege of maintaining the | ||||||
10 | certificate in force
by continuing payment of the required | ||||||
11 | premium.
| ||||||
12 | (g) Benefit contracts issued on the lives of persons below | ||||||
13 | the society's
minimum age for adult membership may provide for | ||||||
14 | transfer of control or
ownership to the insured at an age | ||||||
15 | specified in the certificate. A society
may require approval of | ||||||
16 | an application for membership in order to effect
this transfer | ||||||
17 | and may provide in all other respect for the regulation,
| ||||||
18 | government and control of such certificates and all rights, | ||||||
19 | obligations and
liabilities incident thereto and connected | ||||||
20 | therewith. Ownership rights
prior to such transfer shall be | ||||||
21 | specified in the certificate.
| ||||||
22 | (h) A society may specify the terms and conditions on which | ||||||
23 | benefit
contracts may be assigned.
| ||||||
24 | (Source: P.A. 84-303 .)
| ||||||
25 | (215 ILCS 5/315.6) (from Ch. 73, par. 927.6)
|
| |||||||
| |||||||
1 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
2 | Sec. 315.6. Application of other Code provisions. Unless | ||||||
3 | otherwise
provided in this amendatory Act, every fraternal | ||||||
4 | benefit society shall be
governed
by this amendatory Act and | ||||||
5 | shall be exempt from all other provisions of the
insurance laws | ||||||
6 | of this State not only in governmental relations with the
State | ||||||
7 | but for every other purpose, except for those provisions | ||||||
8 | specified in
this amendatory Act and except as follows:
| ||||||
9 | (a) Sections 1, 2, 2.1, 3.1, 117, 118, 132, 132.1, | ||||||
10 | 132.2, 132.3, 132.4,
132.5, 132.6, 132.7, 133, 134, 136, | ||||||
11 | 138,
139, 140, 141,
141.01, 141.1, 141.2, 141.3, 143, 143c, | ||||||
12 | 144.1, 147, 148, 149, 150, 151,
152, 153, 154.5, 154.6, | ||||||
13 | 154.7, 154.8, 155, 155.04, 155.05, 155.06, 155.07,
155.08 | ||||||
14 | and 408 of this Code; and
| ||||||
15 | (b) Articles VIII 1/2, XII, XII 1/2, XIII, XXIV, and | ||||||
16 | XXVIII of this Code.
| ||||||
17 | (Source: P.A. 88-364; 89-97, eff. 7-7-95 .)
| ||||||
18 | (215 ILCS 5/315.9 new) | ||||||
19 | Sec. 315.9. Voluntary dissolution. Upon application to the | ||||||
20 | Director, a domestic society may request that it be dissolved | ||||||
21 | and that its existence be terminated. The application shall | ||||||
22 | demonstrate that the applicant has satisfied its members' | ||||||
23 | certificate obligations or that it has transferred such | ||||||
24 | obligations to another organization, domestic or foreign, by | ||||||
25 | means of assumption or bulk reinsurance or otherwise, and that |
| |||||||
| |||||||
1 | the domestic society's supreme governing body has approved the | ||||||
2 | termination and dissolution. The application shall contain any | ||||||
3 | other information required by the Director. Any limitation | ||||||
4 | related to reinsurance by a domestic society shall not apply to | ||||||
5 | reinsurance entered into in conjunction with the transfer of | ||||||
6 | members' certificate obligations as a part of a voluntary | ||||||
7 | dissolution. Upon approval of the application by the Director, | ||||||
8 | the domestic society shall be deemed dissolved and its | ||||||
9 | existence terminated as of the date set forth in the | ||||||
10 | application. ".
|