215 ILCS 5/192
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XIII - Rehabilitation, Liquidation, Conservation And Dissolution Of Companies

 (from Ch. 73, par. 804)Sec. 192.         Duties of  Director as rehabilitator; termination.(1) Upon the entry of an order directing rehabilitation, the Director  shall immediately proceed to conduct the business of the company and take  such steps towards removal of the causes and conditions which have made  such proceedings necessary as may be expedient.(2) The Director is authorized to deal with the property and business of  the company in his name as Director, or, if the Court shall so order, in  the name of the company. The Director may, subject to the approval  of the Court, sell  or otherwise dispose of the real and personal property, or any part  thereof, and sell or compromise all doubtful or uncollectible debts or  claims owing to the company in any rehabilitation proceeding now  pending or hereafter instituted, except that whenever the value of any real  or personal property or the amount of any such debt owing to the company does  not exceed $25,000, the Director may sell, dispose of, compromise, or compound  the same upon such terms as the Director deems to be in the best interest of  the company without obtaining approval of the court unless otherwise directed  by the court.  The Director may solicit contracts whereby a solvent company  agrees to assume, in whole or in part, or upon a modified basis, the  liabilities of a company in rehabilitation in a manner consistent with  subsection (4) of Section 193 of this Code.(3) The Director may bring any action, claim, suit, or proceeding against  any director or officer of the company or against any other person with respect  to that person's dealings with the company including, but not limited to,  prosecuting any action, claim, suit, or proceeding on behalf of the creditors,  members, policyholders, or shareholders of the company.  Nothing in this  subsection shall be construed to affect the standing of the Illinois Insurance  Guaranty Fund, the Illinois Life and Health Insurance Guaranty Association, or  the Illinois Health Maintenance Organization Guaranty Association to sue or be  sued under applicable law.(4) If at any time the Director finds that it is in the best  interests  of policyholders, creditors and the company to effect a plan of  mutualization or rehabilitation, the Director may submit such plan  to the court for  its approval. Such plan, in addition to any other terms and provisions as  may by the Director be deemed necessary or advisable, may include a  provision imposing liens upon the net equities of policyholders of the  company, and in the case of life companies, a provision imposing a  moratorium upon the loan or cash surrender values of the policies, for such  period and to such an extent as may be necessary. Notice of the hearing  upon any such plan shall be given in the manner as may be fixed by the  court and upon such hearing the court may either approve or disapprove the  plan or modify it in such manner and to such extent as to the court shall  seem appropriate.(5) Where in such proceedings the Court has entered an order  for the  filing of claims and it subsequently appears that the total amount of all  allowable claims exceed the assets in the possession of the Rehabilitator,  the Court may upon the application of the Director authorize a distribution  of assets in accordance with the applicable provisions of Section 210.  The Director may at such time apply under this Section for an order  dissolving the company in accordance with the applicable provisions of  Section 196.(6) If at any time the Director finds that the causes and  conditions  which made such proceeding necessary have been removed he may petition the  court for an order terminating the conduct of the business by the Director  and permitting such company to resume possession of its property and the  conduct of its business and for a full discharge of all liability and  responsibility of the Director. No order for the return to such company of  its property and business shall be granted unless the court after a full  hearing determines that the purposes of the proceeding have been fully  accomplished.    (Source: P.A. 89-206, eff. 7-21-95; 90-381, eff. 8-14-97.)