(215 ILCS 5/126.24)
    Sec. 126.24. Rated credit instruments. Subject to the limitations of subsection F of this Section, an insurer may acquire rated credit instruments:
    A. Subject to the limitations of Section 126.23B, but not to the limitations of Section 126.23A except for the limitation of subsection (4) of Section 126.23A, an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:
        (1) The United States; or
        (2) A government sponsored enterprise of the United
    
States, if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.
        B.  (1) Subject to the limitations of Section
    
126.23B, but not to the limitations of Section 126.23A, an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:
            (a) Canada; or
            (b) A government sponsored enterprise of Canada,
        
if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada;
        (2) However, an insurer shall not acquire an
    
instrument under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this subsection would exceed 40% of its admitted assets.
        C.  (1) Subject to the limitations of Section
    
126.23B, but not to the limitations of Section 126.23A, an insurer may acquire rated credit instruments, excluding asset-backed securities:
            (a) Issued by a government money market mutual
        
fund, a class one money market mutual fund or a class one bond mutual fund;
            (b) Issued, assumed, guaranteed, or insured by a
        
government sponsored enterprise of the United States other than those eligible under subsection A of this Section;
            (c) Issued, assumed, guaranteed, or insured by a
        
state, if the instruments are general obligations of the state; or
            (d) Issued by a multilateral development bank.
        (2) However, an insurer shall not acquire an
    
instrument of any one fund, any one enterprise or entity, or any one state under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer in any one fund, enterprise, entity, or state under this subsection would exceed 10% of its admitted assets.
    D. Subject to the limitations of Section 126.23, an insurer may acquire preferred stocks that are not foreign investments and that meet the requirements of rated credit instruments if, as a result of and after giving effect to the investment:
        (1) The aggregate amount of preferred stocks then
    
held by the insurer under this subsection does not exceed 33 1/3% of its admitted assets; and
        (2) The aggregate amount of preferred stocks then
    
held by the insurer under this subsection which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 15% of its admitted assets.
    E. Subject to the limitations of Section 126.23 in addition to those investments eligible under subsections A, B, C and D of this Section, an insurer may acquire rated credit instruments that are not foreign investments.
    F. An insurer shall not acquire special rated credit instruments under this Section if, as a result of and after giving effect to the investment, the aggregate amount of special rated credit instruments then held by the insurer would exceed 5% of its admitted assets. The Director may, by rule, identify certain special rated credit instruments that are exempt from the limitation imposed by this subsection.
(Source: P.A. 90-418, eff. 8-15-97.)