Section 904.30  Signature of Checks – Facsimile Signatures

a)         All checks, except as provided in this subsection (a), issued for the disbursement of funds belonging to such company shall require the signature of at least two officers or employees of the company who shall have been so authorized by the Board of Directors of such company.   This dual signature requirement shall not apply to drafts.

1)         Checks in amounts less than $5,000 may, if, and to the extent, authorized by the Board, be issued without dual signatures if the procedure to be followed pursuant to the authorization requires an officer or employee, other than the authorized signer, to approve payment prior to the issuance of the check.

2)         Checks for payment of claims only, in amounts of $5,000 to  $20,000, may, if, and to the extent, authorized by the Board, be issued without dual signatures provided the requirements of subsection (a)(1) are met, and further provided that:

A)        The company has prepared a list of authorized signers by name or job classification, with approved limits of authority for each authorized signer. This list must be approved by the Board and a copy must be kept on file and available for review by the Department of Financial and Professional Regulation-Division of Insurance examiners.

B)        Verification of compliance with this subsection (a)  must be documented by the company's outside independent certified public accountants or the internal audit staff of the company, provided the staff report directly to an audit committee appointed by the Board of Directors.  This compliance review must be performed annually.

b)         Facsimile signatures may be affixed to checks or drafts if that procedure has been authorized by the Board of Directors and adequate controls over the use of facsimile signatures have been established.  Control procedures shall be reduced to writing and shall provide for written approval of the disbursement of funds by officers or employees other than those affixing facsimile signatures, for supervision and policing of the machines or appliances used for affixing facsimile signatures, and for the recording of checks and drafts to which facsimile signatures have been affixed.  Written control procedures shall be kept on file and available for review by examiners.

(Source:  Amended at 30 Ill. Reg. 337, effective December 29, 2005)