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Illinois Compiled Statutes

Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

INSURANCE
(215 ILCS 5/) Illinois Insurance Code.

215 ILCS 5/60

    (215 ILCS 5/60) (from Ch. 73, par. 672)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 60. Procedure when insufficient assets are possessed by company.
    (1) Whenever the Director finds that the admitted assets of a company subject to the provisions of this Article are less than the aggregate of (a) its liabilities and (b) the minimum surplus required to be maintained by Section 43, he must notify the company in writing of the amount of such impairment and require that such impairment must be removed within such period, which shall not be less than 30 nor more than 90 days, as he may designate. Unless otherwise allowed by the Director, the company must discontinue the issuance of new or renewal policies while such impairment exists. If the contracts issued by the company contain a provision for a contingent liability, the Director may order the board of directors or trustees of the company to levy an assessment for the purpose of removing such impairment against each member in accordance with the terms of his policy. If the Director finds that the company will remove the impairment or a part thereof from sources other than an assessment, he may permit a reduction in the amount of the assessment to the extent of the sum so to be obtained. No member is liable for an assessment unless notified of the company's claim therefor within one year after the termination of the policy whether by expiration, cancellation or otherwise. Nothing contained in this paragraph may be construed to limit or restrict the authority of any liquidator, conservator or rehabilitator acting under Article XIII or XIII 1/2 of this Act.
    (2) If policies containing provisions for a contingent liability are outstanding, and the company fails to levy an assessment within 20 days from the date of an order, or if the impairment is not removed within the period specified in the Director's notice, the company shall be deemed insolvent and the Director may cancel the company's certificate of authority and shall proceed against it in accordance with Article XIII.
    (3) If, while the impairment exists, any officer, director, or trustee of the company renews, issues or delivers or causes to be renewed, issued or delivered any policy, contract or certificate of insurance unless otherwise allowed by the Director, and the fact of such impairment is known to the officer, director, or trustee of the company, such officer, director, or trustee shall be guilty of a business offense and may be fined not less than $200 and not more than $5,000 for each offense.
    (4) Nothing in this Section prohibits, while such impairment exists, any such officer, director, trustee, agent or employee from issuing or renewing a policy of insurance when an insured or owner exercises an option granted to him under an existing policy to obtain new, renewed or converted insurance coverage.
(Source: P.A. 82-498.)

215 ILCS 5/Art. III.5

 
    (215 ILCS 5/Art. III.5 heading)
ARTICLE III 1/2. ALIEN COMPANIES

215 ILCS 5/60a

    (215 ILCS 5/60a) (from Ch. 73, par. 672a)
    Sec. 60a. Alien companies; Illinois State of entry.
    (1) An alien company may use Illinois as a state of entry to transact insurance in the United States by obtaining a certificate of authority pursuant to Section 111 and maintaining in this State a deposit of assets in trust in accordance with the provisions of Section 60b.
    (2) A United States branch of an alien company that uses Illinois as a state of entry to transact insurance in the United States shall be considered a domestic company, and as such shall be subject to all applicable provisions of this Code. Transactions between the United States branch and the home office of an alien company shall not be subject to the provisions of Section 131.20 and subsection (1) of Section 131.20a, but remittances of profits of the United States branch to the home office of an alien company shall be considered dividends subject to the requirements of subsection (2) of Section 131.20a.
(Source: P.A. 89-97, eff. 7-7-95.)

215 ILCS 5/60b

    (215 ILCS 5/60b) (from Ch. 73, par. 672b)
    Sec. 60b. Alien companies; Illinois trusteed assets.
    (1) An alien company may not use Illinois as a state of entry to transact insurance in the United States unless it maintains in this State a deposit of assets in trust for the benefit of policyholders in the United States, which assets shall be its "Trusteed Assets". The United States branch of an alien company shall maintain Trusteed Assets at least equal to (a) the sum of (i) its minimum capital and surplus, and (ii) the amount of its liabilities to policyholders, net of reinsurance for which credit is allowed pursuant to Article XI, as reflected in its most recent financial statement on file with the Director, minus (b) the sum of (i) the amount of all of its general state deposits (including all interest accrued and due and payable to the holder of the deposit), (ii) the amount of its special state deposits (including all interest accrued and due and payable to the holder of the deposit), (iii) the amount of its reinsurance recoverable on paid losses (where such reinsurance is the type for which credit would be allowed pursuant to Article XI), (iv) the amounts of its notes and bills receivable, taken for premiums; (v) with respect to a company authorized to write the kinds of insurance specified in Classes 2 and 3 of Section 4 of this Code, the amount of its agents' balances and uncollected premiums; and (vi) the amount of its funds held by or deposited with reinsureds.
    (2) Only those assets that qualify as authorized investments as provided in Article VIII (and in Sections 131.2 and 131.3) shall be included in an alien company's Trusteed Assets.
(Source: P.A. 88-45; 89-97, eff. 7-7-95.)

215 ILCS 5/60c

    (215 ILCS 5/60c) (from Ch. 73, par. 672c)
    Sec. 60c. Requirements and contents of trust agreement. Trust agreements governing Trusteed Assets required by Section 60b shall satisfy the following conditions:
    (1) Legal title to the Trusteed Assets shall be vested in the trustee or trustees, and their successors lawfully appointed, in trust for the benefit and security of policyholders of the alien company in the United States.
    (2) The agreement shall provide for substitution of a new trustee or trustees, subject to the Director's approval.
    (3) All Trusteed Assets shall at all times be maintained as a trust fund separate and distinct from all other assets.
    (4) The trustee or trustees shall maintain a record at all times sufficient to identify the assets of the trust.
    (5) Withdrawal of or from the Trusteed Assets shall be made only as provided in Section 60d.
(Source: P.A. 85-1373.)

215 ILCS 5/60d

    (215 ILCS 5/60d) (from Ch. 73, par. 672d)
    Sec. 60d. Withdrawal of Trusteed Assets. (1) The trust agreement shall provide that no withdrawals of Trusteed Assets shall be made by the alien company or permitted by the trustee or trustees without the prior approval of the Director, except as follows:
    (a) Any or all income, earnings, dividends, or interest accumulations of the Trusteed Assets may be paid over to the United States branch of the alien company upon request of the company or its manager, provided that no withdrawal shall be made that reduces the Trusteed Assets below the amount required by Section 60b.
    (b) For the purpose of substituting other assets authorized for investment by Article VIII and at least equal in value (as reflected in the most recent financial statement on file with the Director) to those being withdrawn, if such withdrawal is requested in writing by the alien company's (i) United States manager or (ii) other United States representative pursuant to general or specific written authority previously given or delegated by the alien company's board of directors or other similar governing body, and a copy of such authority has been filed with the trustee or trustees.
    (c) For the purpose of making deposits required by law in any state for the protection of the alien company's policyholders in the United States. The trustee or trustees shall transfer any assets so withdrawn, and in the amount so required to be deposited in the other state, directly to the depository required to receive such deposit in such other state.
    (d) For the payment of obligations due from the United States branch of the alien company to policyholders in the United States, provided that no withdrawal shall be made that reduces the Trusteed Assets below the amount required by Section 60b.
    (e) For the purpose of withdrawing any amount of the Trusteed Assets in excess of the amount required by Section 60b, as determined by the alien company's then most current annual statement on file with the Director.
    (f) For the purpose of transferring the Trusteed Assets to an appointed liquidator, conservator, or rehabilitator pursuant to the order of a court of competent jurisdiction.
    (2) If at any time the alien company becomes insolvent, or if its Trusteed Assets are less than required under Section 60b, the Director shall in writing order the trustee to suspend the right of the alien company or any other person to withdraw assets as otherwise authorized under paragraphs (a), (b), (c), (d) and (e) of subsection (1); and the trustee shall comply with such order until otherwise ordered by the Director.
(Source: P.A. 85-1373.)

215 ILCS 5/60e

    (215 ILCS 5/60e) (from Ch. 73, par. 672e)
    Sec. 60e. Domestication of Alien Company; definitions. As used in Sections 60e through 60i:
    (1) "Domestication" means the reorganization of the United States branch of an alien company as the result of which a domestic company shall succeed to all the business and assets and assume all the liabilities of the United States branch of the alien company.
    (2) "United States branch" means the business unit through which business is transacted within the United States by an alien company and the assets and liabilities of such insurer within the United States pertaining to such business.
    (3) "Domestic Company" means a stock or mutual insurer incorporated under the laws of this State.
(Source: P.A. 85-1373.)

215 ILCS 5/60f

    (215 ILCS 5/60f) (from Ch. 73, par. 672f)
    Sec. 60f. Domestication procedure. (1) Upon compliance with Sections 60e through 60i, any alien company authorized to do business in this State may, with the prior written approval of the Director, domesticate its United States branch by entering into an agreement in writing with a domestic company providing for the acquisition by the domestic company of all of the assets and the assumption of all of the liabilities of the United States branch.
    (2) The acquisition of assets and assumption of liabilities of the United States branch by the domestic company shall be effected by filing with the Director an instrument of transfer and assumption in form satisfactory to the Director and executed by the alien company and the domestic company.
(Source: P.A. 85-1373.)

215 ILCS 5/60g

    (215 ILCS 5/60g) (from Ch. 73, par. 672g)
    Sec. 60g. Domestication agreement; authorization; execution. (1) The domestication agreement referred to in Section 60f shall be authorized, adopted, approved, signed, and acknowledged by the alien company in accordance with the laws of the country under which it is organized.
    (2) In the case of a domestic company, the domestication agreement shall be approved, adopted, and authorized by its board of directors and executed by its president or any vice president and attested by its secretary or assistant secretary under its corporate seal.
(Source: P.A. 85-1373.)

215 ILCS 5/60h

    (215 ILCS 5/60h) (from Ch. 73, par. 672h)
    Sec. 60h. Director's approval of domestication agreement. An executed counterpart of the domestication agreement, together with certified copies of the corporate proceedings of the domestic company and the alien company, approving, adopting and authorizing the execution of the domestication agreement, shall be submitted to the Director for approval. The Director shall thereupon consider the agreement, and, if the Director finds that the same is in accordance with the provisions hereof and that the interests of policyholders of the United States branch of the alien insurer and of the domestic company are not materially adversely affected, the Director shall approve the domestication agreement and authorize the consummation thereof in compliance with the provisions of Section 60i. The Director shall approve or disapprove the domestication agreement within 60 days after it is submitted to the Director.
(Source: P.A. 85-1373.)

215 ILCS 5/60i

    (215 ILCS 5/60i) (from Ch. 73, par. 672i)
    Sec. 60i. Consummation of domestication; transfer of assets and deposits. (1) Upon the filing with the Director of a certified copy of the instrument of transfer and assumption pursuant to which a domestic company succeeds to the business and assets of the United States branch of an alien company and assumes all its liabilities, the domestication of the United States branch shall be deemed to be effective; and thereupon all the rights, franchises, and interests of the United States branch in and to every species of property, real, personal, and mixed, and things in actions thereunder belonging shall be deemed as transferred to and vested in the domestic company, and simultaneously therewith the domestic company shall be deemed to have assumed all of the liabilities of the United States branch. The domestic company shall be considered as having the age as the oldest of the 2 parties to the domestication agreement for purposes of complying with the requirements of laws relating to age of company.
    (2) All deposits of the United States branch held by the Director, or by state officers or other state regulatory agencies pursuant to requirements of state laws, shall be deemed to be held as security for the satisfaction by the domestic company of all liabilities to policyholders within the United States assumed from the United States branch; and such deposits shall be deemed to be assets of the domestic company and shall be reported as such in the annual financial statements and other reports which the domestic company may be required to file. Upon the ultimate release by any such state officer or agency of any such deposits, the securities and cash constituting such released deposit shall be delivered and paid over to the domestic company as the lawful successor in interest to the United States branch.
    (3) Contemporaneously with the consummation of the domestication of the United States branch, the Director shall direct the trustee, if any, of the U. S. branch's Trusteed Assets to transfer and deliver to the domestic company all assets, if any, held by such trustee.
(Source: P.A. 85-1373.)

215 ILCS 5/60j

    (215 ILCS 5/60j) (from Ch. 73, par. 672j)
    Sec. 60j. Trustees of alien companies. (1) The directors of an alien company may appoint citizens or corporations of the United States as its trustees to hold funds and assets in trust for the benefit of the policyholders and creditors of the company in the United States. A certified copy of the record of such appointment and of the deed of trust, approved by the Director, shall be filed with him.
    (2) The Director may examine such trustee and any officers and agents, books and papers thereof, with respect to the affairs of such alien company in the same manner as he may examine officers, agents, books, papers and affairs of companies.
    (3) The funds and assets so held by such trustees shall, with the deposits otherwise made by the United States branch of the alien company in the United States together with loans in connection with its policies to policyholders, and all other funds and assets held by the United States branch of the alien company in the United States, constitute the assets of the company for the purpose of making its financial statements required by this Code. For purposes of making financial statements required by this Code, the liabilities of an alien company shall be limited to only those liabilities incurred in connection with its United States business.
    (4) In applying the risk limitations as provided in Section 144 or any limit on premium volume, the Director shall calculate such limitations based solely on the alien company's assets in the United States that, pursuant to subsection (3) of this Section, constitute the assets of the company for purposes of making its financial statements required by this Code and its surplus as regards policyholders as reflected in the most recent financial statement on file with the Director.
(Source: P.A. 85-1373.)

215 ILCS 5/Art. IV

 
    (215 ILCS 5/Art. IV heading)
ARTICLE IV. RECIPROCALS
(Article scheduled to be repealed on January 1, 2027)

215 ILCS 5/61

    (215 ILCS 5/61) (from Ch. 73, par. 673)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 61. Scope of Article.
    (1) This Article shall apply to all reciprocals transacting or being organized to transact any of the kinds of business specified in this Article.
    (2) As used in this Article the word "subscriber" shall mean the participant or policyholder. The word "attorney-in-fact" shall mean the representative of the subscribers. The word "reciprocal" shall mean the organization or group of all the subscribers. The word "governmental reciprocal" shall mean a reciprocal in which all subscribers are governmental entities, including, but not limited to, federal, State, territorial, commonwealth, and local governments and agencies, subdivisions, departments, joint ventures, partnerships, and consortia of these governments.
(Source: P.A. 88-364.)

215 ILCS 5/62

    (215 ILCS 5/62) (from Ch. 73, par. 674)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 62. Authority to exchange contracts. Individuals, partnerships and corporations of this State are hereby authorized to exchange reciprocal or inter-insurance contracts with each other or with individuals, partnerships and corporations of other states and countries, in accordance with the provisions of this Code and not otherwise. All insurance contracts so exchanged shall be executed by an attorney-in-fact duly authorized and acting for the subscribers.
(Source: Laws 1937, p. 696.)

215 ILCS 5/63

    (215 ILCS 5/63) (from Ch. 73, par. 675)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 63. Name. The name or designation under which contracts are to be exchanged shall include the words "Reciprocal" or "Inter-Insurance Exchange" or be supplemented by the following words immediately below the name or designation under which such contracts are exchanged: "A Reciprocal" or "An Inter-Insurance Exchange." Such name or designation shall not be the same as or deceptively similar to the name or designation adopted by any other domestic company or any foreign or alien company authorized to transact business in this State.
(Source: Laws 1937, p. 696.)

215 ILCS 5/64

    (215 ILCS 5/64) (from Ch. 73, par. 676)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 64. Principal office. The principal office of the attorney-in-fact of a domestic reciprocal shall be maintained in this State, at such place as may be designated by the subscribers in the power of attorney or other authority under which insurance is to be effected or exchanged.
(Source: Laws 1937, p. 696.)

215 ILCS 5/65

    (215 ILCS 5/65) (from Ch. 73, par. 677)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 65. Authorized kinds of business. A reciprocal may be authorized to exchange contracts covering any or all of the kinds of insurance enumerated in Classes 2 and 3 of Section 4.
(Source: Laws 1951, p. 605.)

215 ILCS 5/66

    (215 ILCS 5/66) (from Ch. 73, par. 678)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 66. Minimum surplus requirements.
    (1) No reciprocal may after December 31, 1985 receive a certificate of authority from the Director to exchange contracts under this Article in the name of the subscribers until it has complied with the requirements in respect of original surplus applicable to the class or classes and clause or clauses of section 4 describing the kind or kinds of insurance it seeks to exchange, as set forth in the following table:
Casualty, Fidelity and Surety
        (a) Class 2, Clauses (a), (b), (c), (d), (g), (h),
    
(i) or (j), a surplus of at least $2,000,000; more than one clause, a surplus of at least $2,000,000.
Fire and Marine
        (b) Class 2, Clauses (e), (f), (k) or (l) or Class 3,
    
any or all clauses or any combination thereof, a surplus of at least $1,000,000.
Multiple Line
        (c) Class 2, any or all clauses other than those
    
specified in (b) above, and Class 3, any or all clauses, a surplus of at least $2,000,000.
Glass and Livestock and Domestic Animals
        (d) Class 2, Clause (f) only or (k) only $250,000;
    
provided any reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in any amount exceeding $5,000.
    (2) Every reciprocal subject to this Article issued a certificate of authority on or after June 28, 1965 must have and at all times maintain a minimum surplus in an amount equal to 2/3 of the original surplus required for that particular company at the time it was organized. Any such reciprocal organized prior to June 28, 1965 must have and at all times maintain admitted assets in excess of all liabilities in an amount not less than the minimum amount of advance cash deposits or surplus which was required for that particular reciprocal at the time it was issued a certificate of authority. Any reciprocal which has added any clause or clauses must have and at all times maintain minimum surplus not less than the minimum surplus requirement applicable to the class or classes and clause or clauses of section 4 at the time that the additional clause or clauses are authorized. Any reciprocal organized prior to October 1, 1972 must have and at all times maintain, in addition to the minimum surplus required to be maintained by that particular reciprocal, additional minimum surplus of not less than $300,000.
    (3) Any company organized prior to January 1, 1986 and regulated under this Article, in addition to the minimum surplus which is required by paragraph (2) of this Section must have by December 31, 1986 and at all times maintain until December 31, 1990 additional minimum surplus of $200,000.
    (4) Subsections (2) and (3) shall be applicable until December 31, 1990 for all reciprocals organized prior to January 1, 1986, thereafter, such reciprocals must have and maintain surplus as required by subsections (6) and (7).
    (5) Every reciprocal subject to this Article and organized after December 31, 1985 must have and maintain at all times minimum surplus applicable to the class or classes and clause or clauses of Section 4 describing the kind or kinds of insurance which it is authorized to write, as follows:
Casualty, Fidelity and Surety
        (a) Class 2, Clauses (a), (b), (c), (d), (g), (h) or
    
(i), a surplus of at least $1,500,000; more than one clause, a surplus of at least $1,500,000.
Fire, Marine and Legal Expense
        (b) Class 2, Clauses (e), (f), (k), (l) or Class 3,
    
any or all clauses or any combination thereof, a surplus of at least $700,000.
Multiple Line
        (c) Class 2, any or all clauses other than those
    
specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.
Glass and Livestock and Domestic Animals
        (d) Class 2, Clause (f) only or (k) only, $150,000;
    
provided no reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.
    (6) Any reciprocal subject to this Article and organized prior to January 1, 1986 must have by December 31, 1990, and thereafter maintain until December 31, 1995, minimum surplus applicable to the class or classes and clause or clauses of Section 4 describing the kind or kinds of insurance which it is authorized to write, as follows:
Casualty, Fidelity and Surety
        (a) Class 2, Clauses (a), (b), (c), (d), (g), (h),
    
(i) or (j), a surplus of at least $1,200,000; more than one clause, a surplus of at least $1,200,000.
Fire, Marine and Legal Expense
        (b) Class 2, Clauses (e), (f), (k), (1) or Class 3,
    
any or all clauses or any combination thereof, a surplus of at least $600,000.
Multiple Line
        (c) Class 2, any or all clauses other than those
    
specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,200,000.
Glass and Livestock and Domestic Animals
        (d) Class 2, Clause (f) only or (k) only, $100,000;
    
provided no reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.
    (7) Any reciprocal subject to this Article and organized prior to January 1, 1986 must have by December 31, 1995 and thereafter maintain at all times minimum surplus applicable to the class or classes and clause or clauses of Section 4 describing the kind or kinds of insurance which it is authorized to write, as follows:
Casualty, Fidelity and Surety
        (a) Class 2, Clauses (a), (b), (c), (d), (g), (h),
    
(i) or (j), a surplus of at least $1,500,000; more than one clause, a surplus of at least $1,500,000.
Fire, Marine and Legal Expense
        (b) Class 2, Clauses (e), (f), (k), (l) or Class 3,
    
any or all clauses or any combination thereof, a surplus of at least $700,000.
Multiple Line
        (c) Class 2, any or all clauses other than those
    
specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.
Glass and Livestock and Domestic Animals
        (d) Class 2, Clause (f) only or (k) only, $150,000;
    
provided no reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in the amount exceeding $5,000.
    (8) The Director shall take action under Section 83 of this Code against any reciprocal which fails to maintain the minimum surplus required by this section. The words "minimum surplus" mean the "surplus as regards policyholders" as it appears on the annual statement of a reciprocal company on the usual and proper annual statement form prescribed by the National Association of Insurance Commissioners.
(Source: P.A. 85-293.)

215 ILCS 5/67

    (215 ILCS 5/67) (from Ch. 73, par. 679)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 67. Power of attorney. The power of attorney or other authority of the attorney-in-fact under which contracts of insurance are to be exchanged pursuant to this Article shall set forth
        (a) the address of the principal office of the
    
attorney-in-fact;
        (b) that the attorney-in-fact is authorized to accept
    
service of process on behalf of the reciprocal and to appoint the Director and his successor or successors in office the true and lawful attorney of such reciprocal for the service of process in actions upon contracts exchanged;
        (c) the amount to be deducted from advance deposits
    
to be paid to the attorney-in-fact and the items of expense, in addition to losses, to be paid by the reciprocal;
        (d) a provision for a cash deposit;
        (e) except as provided in Section 75, a provision for
    
a contingent several liability of each subscriber in an amount of not less than one nor more than ten times the cash deposit stated in the contract; and
        (f) such other provisions not inconsistent with law
    
as may be deemed necessary or advisable.
(Source: Laws 1937, p. 696.)

215 ILCS 5/68

    (215 ILCS 5/68) (from Ch. 73, par. 680)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 68. Declaration of organization. The attorney-in-fact of subscribers who desire to form a reciprocal under this Article shall sign and acknowledge, before an officer authorized to take acknowledgments, a declaration of organization in duplicate. When the attorney-in-fact is a corporation, the declaration shall be acknowledged by an officer thereof. The declaration shall set forth
        (a) the name of the attorney-in-fact and the name or
    
designation under which contracts are to be exchanged;
        (b) the location of the principal office of the
    
attorney-in-fact;
        (c) the class or classes of insurance, as provided in
    
Section 65, which it proposes to effect or exchange and the kinds of insurance in each class to be effected or exchanged;
        (d) such other provisions not inconsistent with law
    
which may be deemed by the attorney-in-fact or subscribers to be necessary or advisable.
(Source: Laws 1937, p. 696.)

215 ILCS 5/69

    (215 ILCS 5/69) (from Ch. 73, par. 681)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 69. Documents to be delivered to Director. Upon the execution of a declaration of organization, there shall be delivered to the Director
        (a) duplicate originals of the declaration of
    
organization;
        (b) a copy of the power of attorney of the
    
attorney-in-fact under or by virtue of which such insurance is to be effected or exchanged;
        (c) an instrument authorizing service of process on
    
the Director provided for in Section 77;
        (d) 2 organization bonds, or the cash or securities,
    
provided for in Section 70;
        (e) the form of guaranty fund agreements and of
    
guaranty capital shares, if any, as provided in Section 76 to be issued in connection with solicitation of surplus; and
        (f) the form of escrow agreement for the deposit of
    
cash or securities.
(Source: P.A. 84-502.)

215 ILCS 5/69.1

    (215 ILCS 5/69.1) (from Ch. 73, par. 681.1)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 69.1. Escrow agreements. The company shall designate a bank or trust company with whom it will enter into an escrow agreement, which agreement shall state that the organization surplus shall be placed in escrow and remain so, until an organization examination has been completed. When the exam has been completed the escrow agent is authorized to purchase securities for deposit as required by Section 74 and forward them to the Director. The escrow agent is authorized to release the balance of the escrow funds to the company only upon notification that a Certificate of Authority or similar documentation has been issued by the Director.
(Source: P.A. 84-502.)

215 ILCS 5/70

    (215 ILCS 5/70) (from Ch. 73, par. 682)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 70. Organization bonds. The attorney-in-fact shall deliver to the Director two bonds in the same penalties and containing the same provisions, so far as applicable, as the bonds required for the organization of a stock company by Section 16 for the use and benefit of the State of Illinois, subscribers and creditors, or in lieu of delivering such bonds, the attorney-in-fact may deposit cash or securities of the same kind and amount and on the same terms and conditions, so far as applicable, as provided by said Section.
(Source: Laws 1937, p. 696.)

215 ILCS 5/71

    (215 ILCS 5/71) (from Ch. 73, par. 683)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 71. Approval of documents. The documents and papers so delivered to the Director may be approved or disapproved by the Director, and the attorney-in-fact is entitled to a hearing, in the same manner as provided in Section 18 in the case of documents delivered for approval in connection with the organization of stock companies. If the documents and papers so delivered are approved by the Director he must file in his office the power of attorney, forms of policies and applications, bonds or securities and one of the duplicate originals of the declaration of organization, and endorse upon the other duplicate original his approval and the month, day and year of approval and deliver it to the attorney-in-fact. Upon the date of approval of the declaration of organization by the Director, the reciprocal is deemed to be organized.
(Source: P.A. 77-747.)

215 ILCS 5/72

    (215 ILCS 5/72) (from Ch. 73, par. 684)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 72. Authority to solicit subscriptions to surplus. Upon the approval of the declaration of organization by the Director, he shall issue to the attorney-in-fact a permit, which shall expire at the end of two years from its date, authorizing him to solicit subscriptions to surplus in accordance with this Code and to do such other acts as may be necessary and proper in order to complete its organization and to entitle it to receive a certificate of authority to transact an insurance business.
(Source: Laws 1951, p. 1565.)

215 ILCS 5/73

    (215 ILCS 5/73) (from Ch. 73, par. 685)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 73. Issuance of certificate of authority. When the Director has been notified that the required surplus has been fully collected, he shall conduct an examination of the reciprocal. If he finds that the organization is complete, that all of the requirements of this Code have been met, that the required surplus has been fully collected, and that the deposits provided for by Section 74 have been met, he shall issue to the attorney-in-fact a certificate of authority to transact the kind or kinds of business specified therein. No attorney-in-fact shall transact any business of insurance until he or it has received a certificate of authority as herein prescribed nor any business of insurance not specified in such certificate of authority.
(Source: Laws 1951, p. 1565.)