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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(Section scheduled to be repealed on January 1, 2027)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 .)
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215 ILCS 5/Art. III.5
(215 ILCS 5/Art. III.5 heading)
ARTICLE III 1/2.
ALIEN COMPANIES
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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.)
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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.)
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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.)
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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.)
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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.)
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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.)
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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.)
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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.)
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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.)
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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.)
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215 ILCS 5/Art. IV
(215 ILCS 5/Art. IV heading)
ARTICLE IV.
RECIPROCALS
(Article scheduled to be repealed on January 1, 2027)
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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 .)
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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 .)
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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 .)
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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 .)
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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 .)
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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.
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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.
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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.
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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.
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(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.
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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.
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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.
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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.
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(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.
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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.
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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.
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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.
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(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.
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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.
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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.
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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.
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(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 .)
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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 | |
(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;
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(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;
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(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
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(f) such other provisions not inconsistent with law
| | as may be deemed necessary or advisable.
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(Source: Laws 1937, p. 696 .)
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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;
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(b) the location of the principal office of the
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(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;
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(d) such other provisions not inconsistent with law
| | which may be deemed by the attorney-in-fact or subscribers to be necessary or advisable.
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(Source: Laws 1937, p. 696 .)
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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 | |
(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;
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(c) an instrument authorizing service of process on
| | the Director provided for in Section 77;
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(d) 2 organization bonds, or the cash or securities,
| | provided for in Section 70;
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(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
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(f) the form of escrow agreement for the deposit of
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(Source: P.A. 84-502 .)
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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 .)
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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 .)
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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 .)
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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 .)
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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 .)
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