222 Merchandise Mart Plaza, Suite 960
Chicago, Illinois 60654
Phone: 1-(312) 836-9500
Fax: 1-(312) 836-1944
The Office of the Special Deputy Receiver (OSD) assists the Illinois Director of Insurance in discharging his duties as Receiver under the Illinois Insurance Code. The primary responsibilities of the Receiver are to marshal the assets of companies in liquidation; reduce those assets to cash; and to pay the cash to persons having claims against the liquidated company as directed in the Illinois Insurance Code.
The Director is empowered among other matters to examine insurance companies, service plans, and health maintenance organizations (HMO's). If, as a result of those examinations, it is determined that any such domestic insurance company, service plan or HMO poses a current or potential financial hazard to the public, its policyholders or its creditors, the Director may, in addition to certain administrative orders, seek an order from a court to conserve and seize the assets, books and records of the subject entity to determine its true financial condition. The Director must then, upon the advice of counsel, examiners and OSD, further determine whether the entity should be released from court supervision because its problems have been resolved, or instead be rehabilitated or liquidated pursuant to the provisions of Article XIII and XIII� of the Illinois Insurance Code. The Director is the statutorily designated receiver of such companies.
For the purpose of managing such receiverships, the Director, as receiver, may appoint accountants, consultants, agents, attorneys and a Special Deputy pursuant to Section 202 of the Illinois Insurance Code.
The Special Deputy and OSD function as agents of the Director acting solely in his capacity as receiver. All operating and personnel expenses incurred by the OSD are paid out of the assets of the companies under the control of the Special Deputy pursuant to statute as receivership administrative expenses through a time accounting allocation system. All expenses are reported to and approved by the supervising court for each estate through either special petition or the companies' receipts and disbursements reports as filed with the court.