215 ILCS 5/202
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. 814)Sec. 202.         Appointment of special deputies; employees and professional advisors;  contracts; qualified immunity.(a) For the purpose of assisting the Director in the performance of the  Director's duties under Articles VII, XIII, and XIII 1/2 of this Code, the  Director has authority to appoint one or more special deputies as  the Director's agent or agents, and clerks, assistants, attorneys, and other  personnel as the Director may deem necessary and to delegate to each such  person authority to assist the Director as the Director may consider  appropriate. The compensation of each special deputy, clerk,  assistant, attorney, and other designated personnel shall be fixed and paid  by the Director. The Director shall also have the authority to retain and  pay  attorneys, actuaries, accountants, consultants, and such other persons as  the Director may deem necessary and appropriate. The Director shall fix the  rate of compensation of these attorneys, actuaries, accountants, consultants,  and other persons subject to the approval of the court. The Director,  however, has the authority to fix, without the approval of the court, the rate  of compensation of attorneys, actuaries, accountants, consultants, and other  persons that he considers necessary and appropriate if the Director determines  that the projected expenditure for professional fees to each such person will  not exceed $20,000 per company in any calendar year.(b) The special deputies may enter into leases or contracts for the  procurement of real or personal property, and on such terms and conditions  as the Director may deem necessary or advisable for the purpose of  performing the Director's duties under Articles VII, XIII, and XIII 1/2 of  this Code. Any such lease or contract that requires an aggregate  expenditure in excess of $150,000 shall be subject to the approval of the  court before which is pending the delinquency proceeding of the estate of  the company on whose behalf the lease or contract is entered into. In the  event that the lease or contract is entered into on behalf of 2 or more  companies, the delinquency proceedings of the 2 or more companies shall be  consolidated for the sole purpose of obtaining approval of the lease or  contract from the court before which is pending the delinquency proceeding  of the estate of the company that, in the judgment of the Director at the  time of application for approval, is to bear the largest portion of the  amounts to be expended under the lease or contract under the allocation  methods established by the Director under subsection (c)(1) of this Section.(c) (1) The compensation of the persons appointed by the Director and  the attorneys, actuaries, accountants, consultants, and other persons  retained by the Director, the payments under the leases or contracts  described in subsection (b) of this Section, and all other expenses of taking possession  of the property and the administration of the company and its property  shall be paid (i) out of the funds or assets of the company on whose behalf  the compensation, payments, or expenses were incurred or (ii) in the event  that the compensation, payments, or expenses were, in the judgment of the  Director, incurred in behalf of 2 or more companies, out of the assets of  those companies on the basis of allocation methods established by the Director.(2) Notwithstanding the foregoing provisions of this subsection (c),  the salary of the special deputies, together with the salaries or fees of  those clerks, assistants, attorneys, actuaries, accountants, consultants,  or other persons appointed or retained by the Director under this Section,  and the other expenses of taking possession of the property and the  administration of the company and its property, may be paid out of  amounts appropriated to the Department of Insurance.  Any amounts paid  under this Section from appropriated funds shall be repaid to the State  treasury from any available funds or assets of the company on whose behalf  the expenses were incurred, subject to the approval of the court before  which is pending the delinquency proceeding of the company.(d) (1) For each calendar quarter or other period  as the court may determine, the Director shall file with the court before  which is pending the  delinquency proceeding of each company in liquidation or rehabilitation a  report for the period reflecting the company's (i) cash and invested assets  held by the Director at the beginning of the period, (ii) cash receipts,  (iii) cash  disbursements for payments of salaries, compensation,  professional fees, and all other expenses of administration of the company  and its property, (iv) all other cash disbursements, and (v) cash and  invested assets held by the Director at the end of the period; provided  that the report need not be filed more than once for each calendar year if  the cash and invested assets of the company are less than $250,000.  For each such period, the Director shall file with the court a similar report  for each company in conservation, except that this report shall reflect  only those cash disbursements for payments of salaries, compensation,  professional fees, and all other expenses of the administration of the  company and its property.(2) No party to the proceedings may object to any aspect of that  report unless the basis of the party's objection is set forth in a motion  filed with the court not later than 30 days after the filing of the report.   In the event that objections to the report are filed, the Director shall  have 15 days to file a response to the objections, and a hearing on the  matter shall be held at the earliest possible date consistent with the  schedule of the court.  Any hearing on objections shall be limited solely to the  specific objections raised in the original motion.(e) (1) For purposes of this subsection (e):"Receiver" means the Director in his or her capacity  as the liquidator, rehabilitator, or conservator of a company in  liquidation, rehabilitation, or conservation."Director as trustee" means the Director when appointed as trustee under  this Article."Employees" means all present and former special deputies  appointed by the Director and all persons that the Director or special  deputies may appoint or employ or may have appointed or employed to assist  in the liquidation, rehabilitation, or conservation of a company.  "Employees" shall not include any attorneys, accountants, auditors, or  other professional persons or firms (or their employees) who are  retained as independent contractors by either the Director or by any  special deputy appointed under  this Section."Advisors" means all persons that the Director may appoint or  may have appointed under Section 202.1.(2) If a cause of action is commenced against the receiver,  the Director as trustee, employees, or advisors, either personally or in  their official  capacity, alleging property damage, property loss, personal injury, or other  civil liability arising out of any act, error, or omission of the receiver,  the Director as trustee, employees, or advisors committed within the scope  of their duties or  employment involving a company in liquidation, rehabilitation, or  conservation, the receiver, the Director as trustee, employees, or advisors  shall be indemnified out  of the assets of the company for all expenses, attorneys' fees, judgments,  settlements, decrees, fines, penalties, or amounts paid in satisfaction of  or incurred in the defense of the cause of action unless it is determined  upon a final adjudication on the merits that the act, error, or omission of  the receiver, the Director as trustee, employees, advisors, or the court  giving rise to the claim  was not within the scope of his or her duties or employment or was caused  by intentional, wilful, or wanton misconduct.  Any payments out of the  assets of the company under this subsection (e) shall be  subject to the prior approval of the court before which is pending the  delinquency proceeding of the company.The court shall be entitled to indemnification under Section 2 of  the Representation and Indemnification of State Employees Act.Attorneys' fees and expenses incurred in defending an action  against the receiver, the Director as trustee, employees, or advisors for  which indemnity is  available under this part (2) may, upon the approval of the  receiver and the court before which is pending the delinquency proceeding  of the company, be paid from the assets of the company's estate in advance  of the final disposition of the action upon receipt of an undertaking by or  on behalf of the receiver, the Director as trustee, employees, or advisors  to pay that amount, if it  shall ultimately be determined upon a final adjudication on the merits that  he or she is not entitled to be indemnified under this part (2).Any indemnification, expense payments, and attorneys' fees from the  company's assets for actions against the receiver, the Director as trustee,  employees, or advisors  under this part (2) shall be considered an administrative  expense of the estate.In the event of actual or threatened litigation against the  receiver, the Director as trustee, employees, or advisors for which  indemnity is available under this  part (2), a reasonable amount of funds, which in the judgment of  the Director may be needed to provide indemnity, may be segregated and  reserved from the assets of the company as security for the payment of  indemnity until all applicable statutes of limitations shall have run and  all actual or threatened actions against the receiver, the Director as  trustee, employees, or  advisors have been completely and finally resolved.(3) Nothing contained or implied in this subsection (e) shall  operate, or be construed or applied, to deprive the Director, receiver, the  Director as trustee, the  company's estate, any employee, any advisor or the court of any defense,  claim, or right of immunity  heretofore available.    (Source: P.A. 88-297; 89-206, eff. 7-21-95.)