IL SB1377

Amends Section 35B-25 of the Illinois Insurance Code to add a new approval requirement for insurance company divisions involving the Illinois Life and Health Insurance Guaranty Association.

Requires that new companies created by a division that will be member insurers of the guaranty association and have policy liabilities allocated to them must be licensed to do business in each state where the dividing company wrote those policies.

Establishes that the Director must apply the Uniform Fraudulent Transfer Act specifically to resulting companies, treating allocated liabilities as obligations incurred without reasonably equivalent value in exchange.

Allows the Director to consider reinsurance agreements, parental guarantees, support agreements, and capital maintenance agreements when evaluating solvency and asset adequacy of resulting companies, regardless of whether they qualify as admitted assets.

Provides that all information and documents related to division plans remain confidential under the same protections as Section 131.14b and 131.14d, with the plan of division itself becoming public only after a hearing notice is issued.