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HB 3800

Relating to the use of ground water in the Harney Basin.

2025 Regular Session Introduced by Ken Helm and 2 co-sponsors

Dissolves the George Bailey Memorial Fund and transfers its remaining and future receipts to Illinois’ General Revenue Fund.

In committee upon adjournment.
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Bill Summary · HB 3800

HB 3800 — INSURANCE — Summary of Public Act 104‑0334

Status: Enacted as Public Act 104‑0334 (Governor signed 6/20/2025). The Act contains multiple specified effective dates (some provisions effective immediately, others effective Aug 15, 2025; Sept 1, 2025; Oct 14, 2025; Jan 1, 2026; or 60 days after enactment). Refer to the enacted text for the exact effective date of each provision.

Main purpose

HB 3800 makes a package of changes across Illinois insurance and related law: it (1) amends multiple sections of the Illinois Insurance Code (governing surplus lines, reinsurance filings/approvals, company governance, liquidations, and other insurance processes); (2) dissolves the George Bailey Memorial Fund and reallocates its remaining and future receipts to the State’s General Revenue Fund; and (3) makes conforming or substantive changes to other statutes (including the Burn Victims Relief Act, Dental Care Patient Protection Act, HMO Act, Network Adequacy and Transparency Act, Limited Health Service Organization Act, and the Criminal Code definition of “insurance company”).

Key provisions and changes

  • George Bailey Memorial Fund (Burn Victims Relief Act)

    • Directs the State Treasurer to transfer the remaining balance of the George Bailey Memorial Fund to the General Revenue Fund on June 30, 2025 (or as soon thereafter as practical).
    • Dissolves the Fund and assigns any future deposits and outstanding obligations to the General Revenue Fund.

  • Surplus lines / Industrial insureds (amends Section 121‑2.08)

    • Requires insureds procuring contracts directly from unauthorized insurers (industrial insureds) to file reports with the Director (via the Surplus Line Association of Illinois) within 90 days of a contract’s effective date; reports must be substantially similar to surplus lines submissions.
    • Payment rules: for contracts effective Jan 1, 2015–Dec 31, 2017, insureds remit gross premium × surplus line tax rate; for contracts effective Jan 1, 2018 or later, insureds remit 0.5% of gross premium to the State plus the Fire Investigation Act (fire marshal) tax where applicable.
    • Insureds must withhold the taxes and the countersignature fee from premiums; failure to withhold makes the insured liable.
    • Safety‑Net Hospitals (per Public Aid Code) are exempt from these reporting/tax withholding requirements.

  • Reinsurance / filings (amends Sec. 174)

    • Clarifies types of reinsurance agreements requiring Director approval.
    • Adds that the Director has the right to request additional filing review and approval of all contracts that contribute to the statutory threshold trigger (e.g., cessions that collectively reach statutory thresholds).
    • Sets filing/approval timing (requests filed at least 30 working days prior to effective date; deemed approved if not disapproved within 30 working days after complete submission).

  • Company governance and standards (amends Sec. 155.04)

    • Clarifies factors the Director must consider before approving formation or issuing authority (plans of operation, character and experience of incorporators/officers, affiliated relationships, financial concerns).
    • Requires licensed companies to notify the Director within 30 days of appointment/election of new officers/directors.
    • Confirms Director’s authority to remove officers/directors after hearing; bars certain unlawful loans/advances.

  • Liquidation rights (amends Sec. 194)

    • Confirms that rights/liabilities of creditors, policyholders, and others are fixed as of the date of the rehabilitation/liquidation order, with additional procedural detail (text truncated in source).

  • Other statutory updates

    • Conforming and technical amendments to dental, HMO, network adequacy, limited health service organization laws; modification to Criminal Code definition of “insurance company.” (Full text needed for details.)

Who is affected

  • Illinois‑licensed insurance companies (Classes 1–3) and their governance/officers.
  • Industrial insureds and exempt commercial purchasers procuring insurance directly from unauthorized insurers.
  • Surplus Line Association of Illinois (reporting/countersignature functions).
  • Safety‑Net Hospitals (explicit exemption from some requirements).
  • Policyholders, creditors, and other stakeholders in insurer rehabilitation/liquidation.
  • State finances: dissolution/transfer of the George Bailey Fund increases General Revenue receipts; new/adjusted taxes/fees on certain unauthorized contracts affect insureds and state revenue.

Procedure / timeline

  • Bill introduced Feb 18, 2025; extensive committee and floor action in spring 2025.
  • Passed both chambers; enrolled and signed by Governor June 20, 2025.
  • Enacted as Public Act 104‑0334. Multiple provisions carry different effective dates—consult the final Public Act text for the exact implementation dates for each section.

For implementation details, filing formats, or compliance steps (especially for surplus lines reporting and withholding obligations), consult the final Public Act text and the Illinois Department of Insurance guidance.

Compiled from official sources — confirm details with the bill’s official record.

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