IL HB5160

Adds Article IIB to the Illinois Insurance Code establishing the "Domestic Stock Company Division" to allow domestic stock insurance companies to divide into 2 or more resulting companies pursuant to an approved plan of division.

Requires a plan of division to include the names of resulting companies, their articles of incorporation and bylaws, allocation of assets and liabilities between companies, distribution of shares to shareholders, and evidence that policyholder interests will be protected.

Mandates Director approval of the division after reasonable notice and public hearing (if requested), with the Director authorized to deny approval if policyholders or shareholders would not be properly protected, resulting companies would be insolvent, or the division violates the Uniform Fraudulent Transfer Act.

Provides that upon division effectiveness, each resulting company becomes liable for liabilities allocated to it individually, liabilities allocated to another company remain that company's sole responsibility, and unallocated liabilities are jointly and severally shared among all resulting companies.

Grants objecting shareholders appraisal rights to obtain fair value of their shares if the dividing company does not survive the division, and allows the Director to waive certain requirements for newly formed companies created solely to merge with a dividing company's resulting companies.