215 ILCS 5/ Illinois Insurance Code.

(215 ILCS 5/246) (from Ch. 73, par. 858)

Sec. 246. Scope of article.

This article shall apply to companies that issued the policies or annuity bonds, and to the policies or annuity bonds, referred to in an Act entitled: "An Act to provide for the deposit of reserve and the registration of policies and annuity bonds by life insurance companies of this State," approved April 18, 1899. Such policies or annuity bonds are referred to in this article as "policies."

(Source: Laws 1937, p. 696.)

(215 ILCS 5/247) (from Ch. 73, par. 859)

Sec. 247. Deposit of reserves on registered policies.

Any company heretofore making deposits and registering policies pursuant to the act mentioned in section 246 shall keep and maintain such deposit with the Director in securities which are authorized for investment by life insurance companies under this Code. Certificates of purchase acquired by any company through foreclosure proceedings instituted by it upon mortgages in which its funds have been lawfully invested, and duly recorded conveyances of unencumbered improved real estate lawfully acquired by any company, accompanied by satisfactory evidence of ownership thereof shall likewise be eligible for deposit. The Director shall hold the title to such real estate so conveyed to him in trust until other satisfactory securities in lieu thereof have been deposited with him whereupon he shall reconvey the same to such company. The Director may cause such real estate to be valued and the company shall pay the reasonable expenses incurred in such valuation.

(Source: Laws 1937, p. 696.)

(215 ILCS 5/248) (from Ch. 73, par. 860)

Sec. 248. Registration of new policies prohibited.

After the effective date of this Code the Director shall not register any new policies that are issued by any company, nor accept any deposits covering reserves on business thereafter written.

(Source: Laws 1937, p. 696.)

(215 ILCS 5/249) (from Ch. 73, par. 861)

Sec. 249. Valuation of registered policies.

The Director shall keep such a record of the policies that have been issued pursuant to the act mentioned in section 246 as to enable him to compute their value at any time. Upon written proof attested by the president or vice-president and secretary of the company which shall have issued such policies that any of them have been commuted or terminated, the Director shall indicate such commutation or cancellation upon such record. The reserve value of all policies, according to the standard prescribed in this Code for the valuation of policies of life insurance companies, when the first premium shall have been paid thereon, less the amount of any liens, (as set forth in a statement showing kind, nature and amount, attested by the president or vice-president and secretary of the company issuing the policies against which such liens exist) not exceeding such value as the company may have against such policies shall be entered in the record aforesaid at the time such record is made. On the first day of January of each year, or within sixty days thereafter, the Director shall cause the registered policies of each company to be carefully revalued, and the reserve value thereof at the time fixed for such valuation, less any liens, (as set forth in a statement showing kind, nature and amount, attested by the president or vice-president and secretary of the company issuing the policies against which such liens exist) not exceeding such reserve value as the company may have against such policies shall be entered upon the record. It shall be the duty of the Director to cancel mutilated policies issued by said companies prior to the effective date of this Code, and register in lieu thereof other policies of like tenor and date.

(Source: P.A. 87-757.)

(215 ILCS 5/250) (from Ch. 73, par. 862)

Sec. 250. Additional deposits.

Each company which shall have made the deposit provided for by the act mentioned in section 246, shall make additional deposits from time to time in amounts of not less than five thousand dollars of securities which are authorized investments for life insurance companies under this Code, so that the market value of the securities deposited shall always be equal to the reserve value of the policies heretofore registered by said company, less such liens (not exceeding such net value) as the company may have against them.

(Source: Laws 1937, p. 696.)

(215 ILCS 5/251) (from Ch. 73, par. 863)

Sec. 251. Record of securities-Deficit-When insolvent.

The Director shall keep a record of the securities deposited by each company and when furnishing the annual certificate of valuation mentioned in section 249, he shall enter thereon the amount and market value of such securities deposited by such company. If at any time it shall appear from such certificate or otherwise that the value of the securities held on deposit is less than the reserve value of the registered policies theretofore issued by such company, less such liens (not exceeding such reserve value) as the company may have against them, and the company shall fail or neglect to make good such deposit within sixty days, after written notice by the Director, it shall be deemed to be insolvent and shall be proceeded against in the manner provided in Article XIII.

(Source: Laws 1937, p. 696.)

(215 ILCS 5/252) (from Ch. 73, par. 864)

Sec. 252. May increase deposit-Withdrawal of securities-Right to income.

Any such company may increase its deposits at any time by making additional deposits of not less than five thousand dollars of securities which are authorized investments for life companies under this Code. Any company whose deposits exceed the reserve of all registered policies it has in force, less such liens (not exceeding such reserve value) as the company may hold against them, may withdraw such excess, or it may withdraw any of said securities at any time by depositing in their stead securities of equal value and authorized under this Code. So long as said company shall remain solvent and maintain its deposits, as herein provided, it may collect the interest, coupons, rents, and other income on the securities deposited as the same may accrue.

(Source: Laws 1937, p. 696.)

(215 ILCS 5/253) (from Ch. 73, par. 865)

Sec. 253. Deposits kept separate.

The securities deposited with the Director pursuant to the act mentioned in section 246, shall be kept in the same manner but separate from other deposits of the company.

(Source: Laws 1937, p. 696.)

(215 ILCS 5/Art. XVI heading) ARTICLE XVI. ASSESSMENT LEGAL RESERVE LIFE COMPANIES (Repealed by P.A. 98-692, eff. 7-1-14; 98-969, eff. 1-1-15)

(215 ILCS 5/Art. XVII heading) ARTICLE XVII. FRATERNAL BENEFIT SOCIETIES (Article scheduled to be repealed on January 1, 2027)

(215 ILCS 5/282.1) (from Ch. 73, par. 894.1)

(Section scheduled to be repealed on January 1, 2027)

Sec. 282.1. Fraternal benefit societies. Any incorporated society, order or supreme lodge without capital stock, including one exempted under the provisions of Section 315.5(a) of this amendatory Act whether incorporated or not, organized solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government and providing benefits in accordance with this amendatory Act is hereby declared to be a fraternal benefit society.

(Source: P.A. 84-303.)

(215 ILCS 5/283.1) (from Ch. 73, par. 895.1)

(Section scheduled to be repealed on January 1, 2027)

Sec. 283.1. Lodge system.

(a) A society is operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated or admitted in accordance with its laws, rules and ritual. Subordinate lodges shall be required by the laws of the society to hold regular meetings at least once in each month in furtherance of the purposes of the society.

(b) A society may, at its option, organize and operate lodges for children under the minimum age for adult membership. Membership and initiation in local lodges shall not be required of such children nor shall they have a voice or vote in the management of the society.

(Source: P.A. 84-303.)

(215 ILCS 5/284.1) (from Ch. 73, par. 896.1)

(Section scheduled to be repealed on January 1, 2027)

Sec. 284.1. Representative form of government. A society has a representative form of government when:

(a) It has a supreme governing body constituted in one of the following ways:

(1) Assembly. The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies of members or their representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and shall not have less than 2/3 of the votes and not less than the number of votes required to amend the society's laws. The assembly shall be elected and shall meet at least once every 4 years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or

(2) Direct Election. The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide for election of the board by mail. Each term of a board member may be filled in the manner prescribed by the society's laws. However, those persons elected to the board shall constitute a majority in number and not less than the number of votes required to amend the society's laws. A person filling the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least quarterly to conduct the business of the society;

(b) The officers of the society are elected either by the supreme governing body or by the board of directors;

(c) Only benefit members are eligible for election to the supreme governing body, the board of directors or any intermediate assembly; and

(d) Each voting member has one vote; no vote may be cast by proxy.

(Source: P.A. 84-303.)

(215 ILCS 5/285.1) (from Ch. 73, par. 897.1)

(Section scheduled to be repealed on January 1, 2027)

Sec. 285.1. Definitions. Whenever used in this amendatory Act:

(a) "Benefit contract" shall mean the agreement for provision of benefits authorized by Section 297.1 of this amendatory Act as that agreement is described in Section 300.1 of this amendatory Act;

(b) "Benefit member" shall mean an adult member who is designated by the laws or rules of the society to be a benefit member under a benefit contract;

(c) "Certificate" shall mean the document issued as written evidence of the benefit contract;

(d) "Premiums" shall mean premiums, rates, dues or other required contributions, by whatever name known, which are payable under the certificate;

(e) "Laws" shall mean the society's articles of incorporation, constitution and bylaws, however designated;

(f) "Life insurer" shall mean an insurance company authorized to transact in this State the insurance business classified as Class 1, Clause (a) or (b) in Section 4 of this Code;

(g) "Rules" shall mean all rules, regulations or resolutions adopted by the supreme governing body or board of directors which are intended to have general application to the members of the society;

(h) "Society" shall mean fraternal benefit society, unless otherwise indicated; and

(i) "Lodge" shall mean subordinate member units of the society, known as camps, courts, councils, branches or by any other designation.

(Source: P.A. 84-303.)