IL SB2577

Adds Section 188.2 to the Illinois Insurance Code to establish grounds for rehabilitation or liquidation of domestic insurance companies that are covered financial companies under the federal Dodd-Frank Wall Street Reform and Consumer Protection Act.

Authorizes the Director to file a complaint for rehabilitation or liquidation based on: (1) Treasury Secretary notification that the company meets federal requirements and the board consents to receiver appointment; (2) a U.S. District Court order for the District of Columbia; or (3) automatic grant of a Treasury Secretary petition under federal law.

Allows the receivership court to grant a rehabilitation or liquidation order within 24 hours after notice to the insurance company.

Deems a rehabilitation or liquidation order automatically granted by operation of law if the court does not make a determination within 24 hours of filing, with the Director becoming the receiver with all applicable powers under Article XIII of the Insurance Code.

Prohibits any stay or injunction pending appeal of orders issued under this Section and preserves all other existing powers of the Director and court.