(215 ILCS 5/131.24) (from Ch. 73, par. 743.24)
Sec. 131.24. Sanctions.
(1) Every director or officer of an insurance
holding company system who knowingly violates, participates in, or assents
to, or who knowingly permits any of the officers or agents of the
company to engage in transactions or make investments which have not been
properly filed or approved or which violate this Article, shall pay, in
their individual capacity, a civil forfeiture of not more than $100,000
per violation, after notice and hearing before the Director. In determining
the amount of the civil forfeiture, the Director shall take into account the
appropriateness of the forfeiture with respect to the gravity of the
violation, the history of previous violations, and such other matters as
justice may require.
(2) Whenever the Director determines that any company subject to this
Article or any director, officer, employee or agent thereof has engaged in
any transaction or entered into a contract which is subject to Section
131.20, and any one of Sections 131.16, 131.20a, 141, 141.1, or 174 of this
Code and which would not have been approved had such
approval been requested or would have been disapproved had required notice
been given, the Director may order the company to cease and
desist immediately any further activity under that transaction or contract.
After notice and hearing the Director may also order (a) the company to void
any such contracts and restore the status quo if such action is in the best
interest of the policyholders or the public, and (b) any affiliate of the
company, which has received from the company dividends, distributions,
assets, loans, extensions of credit, guarantees, or investments in
violation of any such Section, to immediately repay, refund or restore to
the company such dividends, distributions, assets, extensions of credit,
guarantees or investments.
(3) Whenever the Director determines that any company or any
director, officer, employee or agent thereof has committed a willful
violation of this Article, the Director may cause criminal proceedings to
be instituted in the Circuit Court for the county in which the principal
office of the company is located or in the Circuit Court of Sangamon or
Cook County against such company or the responsible director, officer,
employee or agent thereof. Any company which willfully violates this
Article commits a business offense and may be fined up to $500,000. Any individual
who willfully
violates this Article commits a Class 4 felony and may be fined in his
individual capacity not more than
$500,000 or be imprisoned for not less than one year nor more
than
3 years, or both.
(4) Any officer, director, or employee of an insurance holding company
system who willfully and knowingly subscribes to or makes or causes to be
made any false statements or false reports or false filings with the intent
to deceive the Director in the performance of his duties under this
Article, commits a Class 3 felony and upon conviction thereof, shall be
imprisoned for not less than 2 years nor more than
5 years or fined $500,000 or both. Any fines imposed shall be
paid by
the officer, Director, or employee
in his individual capacity.
(5) Whenever the Director determines that any person has committed a violation of Section 131.14b of this Code which prevents the full understanding of the enterprise risk to the company by affiliates or by the insurance holding company system, the violation may serve as an independent basis, after an opportunity for a hearing, for disapproving dividends or distributions and for placing the company under an order of supervision in accordance with Article XII 1/2 of this Code. (Source: P.A. 98-609, eff. 1-1-14.)
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