45 ILCS 160/5 — Illinois Code / Chapter 45 / Act 160 / Section 5
Section 5
Status: in_force

(45 ILCS 160/5) Sec. 5. Ratification of Compact. The State of Illinois ratifies and approves the Interstate Insurance Receivership Compact and enters into that Compact with all other jurisdictions legally joining in it in substantially the following form: ARTICLE I. PURPOSES The purposes of this Compact are, through means of joint and cooperative action among the compacting states: (1) to promote, develop and facilitate orderly, efficient, cost-effective, and uniform insurer receivership laws and operations; (2) to coordinate interaction between insurer receivership and Guaranty Association operations; (3) to create the Interstate Insurance Receivership Commission; and (4) to perform these and such other related functions as may be consistent with the state regulation of the business of insurance pursuant to the McCarran-Ferguson Act. ARTICLE II. DEFINITIONS For the purposes of this Compact: (1) "By-laws" means those by-laws prescribed by the Commission for its governance or for directing or controlling the Commission's actions or conduct. (2) "Compacting state" means any state which has enacted enabling legislation for this Compact. (3) "Commission" means the Interstate Insurance Receivership Commission established by this Compact. (4) "Commissioner" means the chief insurance regulatory official of a state. (5) "Deputy Receiver" means a person appointed or retained by a Receiver and who is the Receiver's duly authorized representative for administering one or more estates. (6) "Domiciliary state" means the state in which an insurer is incorporated or organized; or, in the case of an alien insurer, its state of entry; or in the case of an unauthorized insurer not incorporated, organized, or entered in any state, a state where the insurer is engaged in or doing business. (7) "Estate" means the assets and liabilities of any insurer in receivership. (8) "Guaranty Association" means an insurance guaranty fund or association or any similar entity now or hereafter created by statute in a compacting state, other than a receivership, to pay or assume, in whole or in part, the contractual claim obligations of insolvent insurers. (9) "Insurer" means any person or entity that has done, purports to do, is doing, or is licensed to do any insurance or reinsurance business, or is or has been subject to the authority of, or to liquidation, rehabilitation, supervision, conservation, or ancillary receivership by, any Commissioner. (10) "Member" means the Commissioner of a compacting state or his or her designee, who shall be a person officially connected with the Commissioner and who is wholly or principally employed by the Commissioner. (11) "Non-compacting state" means a state which has not enacted enabling legislation for this Compact. (12) "Operating procedures" means procedures promulgated by the Commission implementing a rule, an existing law in a compacting state, or a provision of this Compact. (13) "Publication" means the act of publishing in the official state publication in a compacting state or in such other publication as may be established by the Commission. (14) "Receiver" means receiver, liquidator, rehabilitator, conservator, or ancillary receiver as the context requires. (15) "Receivership" means any liquidation, rehabilitation, conservation, or ancillary receivership proceeding as the context requires. (16) "Rules" means acts of the Commission, duly promulgated pursuant to Article VII of this Compact, substantially affecting interested parties in addition to the Commission, which shall have the force and effect of law in the compacting states. (17) "State" means any state, district or territory of the United States of America. ARTICLE III. ESTABLISHMENT OF THE COMMISSION AND VENUE (1) The compacting states hereby create and establish an entity known as the Interstate Insurance Receivership Commission. (2) The Commission is a body corporate of each compacting state. (3) The Commission is a not-for-profit entity, separate and distinct from the compacting states. (4) The Commission is solely responsible for its liabilities except as otherwise provided in this Compact. (5) Except as otherwise specifically provided in state or federal law in the jurisdiction where the Commission's principal office is located or where the Commission is acting as Receiver, venue is proper and judicial proceedings by or against the Commission shall be brought in a court of competent jurisdiction where the Commission's principal office is located. ARTICLE IV. POWERS OF THE COMMISSION The Commission shall have all of the following powers: (1) To promulgate rules which shall have the force and effect of statutory law and shall be binding in the compacting states to the extent and in the manner provided in this Compact. (2) To promulgate operating procedures which shall be binding in the compacting states to the extent and in the manner provided in this Compact. (3) To oversee, supervise, and coordinate the activities of receivers in compacting states. (4) To act as Receiver of insurers organized under the laws of, engaged in, or doing the business of insurance in a compacting state upon the request of the Commissioner of such state or when grounds for receivership by the Commission exist under Article IX of this Compact. (5) To act as Deputy Receiver of insurers organized under the laws of, engaged in, or doing the business of insurance in a non-compacting state in accordance with Article IX of this Compact. (6) To act as ancillary Receiver in a compacting state of an insurer domiciled in a non-compacting state. (7) To monitor the activities and functions of Guaranty Associations in the compacting states. (8) To delegate its operating authority or functions; provided, that its rulemaking authority under Article VII of this Compact shall not be delegated. (9) To bring or prosecute legal proceedings or actions in its name as the Commission, or in the name of the Commission acting as Receiver. (10) To bring or prosecute legal proceedings or actions as Receiver on behalf of an estate or its policyholders and creditors; provided, that any Guaranty Association's standing to sue or be sued under applicable law shall not be affected. (11) To issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence. (12) To establish and maintain offices. (13) To purchase and maintain insurance and bonds. (14) To borrow, accept, or contract for services of personnel including, but not limited to, members and their staff. (15) To elect or appoint such officers, attorneys, employees, or agents, and to fix their compensation, define their duties, and determine their qualifications; and to establish the Commission's personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation, and qualifications of personnel. (16) To accept any and all donations and grants of money, equipment, supplies, materials, and services, and to receive, utilize, and dispose of the same. (17) To lease, purchase, accept gifts or donations of, or otherwise to own, hold, improve or use, any property, real, personal, or mixed. (18) To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of any property, real, personal, or mixed. (19) To enforce compliance with Commission rules, operating procedures, and by-laws. (20) To provide for dispute resolution among compacting states and Receivers. (21) To represent and advise compacting states on issues relating to insurers domiciled or doing business in non-compacting jurisdictions, consistent with the purposes of this compact. (22) To provide advice and training to receivership personnel of compacting states, and to be a resource for compacting states by maintaining a reference library of relevant materials. (23) To establish a budget and make expenditures. (24) To borrow money. (25) To appoint committees including, but not limited to, an industry advisory committee and an executive committee of members. (26) To provide and receive information relating to receiverships and Guaranty Associations and to cooperate with law enforcement agencies. (27) To adopt and use a corporate seal. (28) To perform such other functions as may be necessary or appropriate to achieve the purposes of this Compact as may be consistent with the state regulation of the business of insurance pursuant to the McCarran-Ferguson Act. ARTICLE V. ORGANIZATION OF THE COMMISSION Section A. Membership, voting, and by-laws. (1) A compacting state shall have and be limited to one member. A member shall be qualified to serve in such capacity under or pursuant to the applicable law of the compacting state. A compacting state retains the discretionary right to determine the due election or appointment and qualification of its own Commissioner, and to fill all vacancies of its member. (2) A member shall be entitled to one vote. (3) The Commission shall, by a majority of the members, prescribe by-laws to govern its conduct as may be necessary or appropriate to carry out the purposes of the Compact, including, but not limited to: (a) establishing the fiscal year of the Commission; (b) providing reasonable standards and procedures: (i) for the establishment of committees, and (ii) governing any general or specific delegation of any authority or function of the Commission; (c) providing reasonable procedures for calling and conducting meetings of the