(215 ILCS 5/126.5)
Sec. 126.5.
Prohibited investments.
An insurer shall not, directly or indirectly:
A. Invest in an obligation or security or make a guarantee for the benefit
of or in favor of an officer or director of the insurer, except as provided in
Section 126.6;
B. Invest in an obligation or security, make a guarantee for the benefit of
or in favor of, or make other investments in a business entity of which 10% or
more of the voting securities or equity interests are owned
directly or indirectly by
or for the benefit of one or more officers or directors of the insurer, except
pursuant to a transaction entered into in compliance with Section 131.20a of
this Code or provided in Section 126.6;
C. Engage on its own behalf or through one or more affiliates in a
transaction or
series of transactions designed to evade the prohibitions of this Article;
D. (1) Invest in a partnership as a general partner, |
| except that an insurer may make an investment as a general partner:
|
|
(a) If all other partners in the partnership are
|
| subsidiaries of the insurer or other insurance company affiliates of the insurer;
|
|
(b) For the purpose of:
(i) Meeting cash calls committed to prior to
|
| the effective date of this amendatory Act of 1997;
|
|
(ii) Completing those specific projects or
|
| activities of the partnership in which the insurer was a general partner as of the effective date of this amendatory Act of 1997 that had been undertaken as of that date; or
|
|
(iii) Making capital improvements to property
|
| owned by the partnership on the effective date of this amendatory Act of 1997 if the insurer was a general partner as of that date; or
|
|
(c) In accordance with Section 126.3C;
(2) This subsection shall not prohibit a subsidiary
|
| or other affiliate of the insurer from becoming a general partner; or
|
|
E. Invest in or lend its funds upon the security of shares of its own stock,
except as authorized by other provisions of this Code. However, no such shares
shall be admitted assets of the insurer.
(Source: P.A. 90-418, eff. 8-15-97.)
|