(215 ILCS 5/123C-7) (from Ch. 73, par. 735C-7)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-7.
Directors - conflicts of interest.
A. The provisions of Section 10 shall apply to stock
captive insurance companies and all those having dealings
therewith and the provisions of Section 40 shall apply
to mutual captive insurance companies and all those
having dealings therewith; provided that no residents
or citizens of this State need be directors. No director
may serve who has been convicted of fraud involving
any financial institution or of a felony. The Director
may waive the prohibition regarding a felony if he determines
that the particular felony does not jeopardize the person's
ability to act as a director.
B. Every captive insurance company shall report to
the Director within 30 days after any change in
its executive officers or directors, including in its
report a statement of the business and professional
affiliations of any new executive officer or director.
For purposes of this subsection B, the term "executive
officer" includes only the following: chairman of the
board of directors; president; executive or senior vice-president;
secretary; and treasurer.
C. No director, officer, or employee having any authority
in the investment or disposition of the funds of a captive
insurance company shall accept, except on behalf of
the company, or be the beneficiary of, any fee, brokerage,
gift, or other emolument because of any investment,
loan, deposit, purchase, sale, payment, or exchange
made by or for the company; but a director who is not
otherwise an officer or employee of the company may
receive reasonable compensation for services performed
for sales or purchases made to or for the company in
the ordinary course of its business and in the usual
private professional or business capacity of such director.
D. Any profit or gain received by or on behalf of any
person in violation of subsection C of this Section
shall inure to and be recoverable by the company. A
suit to recover such profit may be instituted in any
court of competent jurisdiction by the company, or by
any stockholder of the company in its name and on its
behalf if the company fails or refuses to bring such
suit within 60 days after request in writing or if
the company fails diligently to prosecute the same
thereafter. No such suit shall be brought more than
2 years after the date such profit or gain was discovered.
(Source: P.A. 85-131.)
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