IL SB1961

Creates the Insurance Business Transfer Act allowing courts to approve transfers of insurance policies from one insurer to another through a statutory novation process without requiring policyholder consent.

Establishes a comprehensive application and approval process requiring the transferring insurer to file a plan with the Department of Insurance, including financial statements, actuarial reports, pro forma projections, and an independent expert's report before proceeding to court approval.

Requires notice to policyholders, insurance regulators, guaranty associations, and reinsurers within 15 days, with a 60-day public comment period before court approval hearing; policyholders may comment but cannot opt out of the transfer.

Imposes a $10,000 nonrefundable application fee payable to the Department, with applicants responsible for costs of independent experts, consultants, and professionals retained to review the transfer proposal.

Amends the Illinois Insurance Code definition of "insolvent company" to include insurers that have assumed or been allocated policy obligations through an approved insurance business transfer plan.