(215 ILCS 5/141) (from Ch. 73, par. 753)
Sec. 141.
Agency contracts.
(1) Any domestic company which
contracts with any person (different legal entities,
directly or indirectly owned or controlled by the same person shall be
considered as a person within the meaning of this Section) whereby such
person is granted the right or privilege to solicit, procure, write or
produce a major part of the insurance business for such company and collect
premiums therefor shall file such contract with the Director within 15
days from the execution of such contract or within 60 days following the
end of any calendar quarter in which such person produces a major portion
of the company's insurance business. For purposes of this Section, any
person who produces in excess of five percent (5%) of a company's insurance
premium volume during any one calendar quarter shall be deemed as having been
granted the privilege of producing a major portion of such company's
business. Failure of the Director to disapprove any such contract within
thirty days after the same shall be filed with him, shall constitute his
approval thereof. A company may continue to accept business from such
person until such contract is disapproved by the Director. Such
disapproval shall be in writing, stating the reasons
therefor and a copy thereof delivered to the company.
(2) The Director shall not approve any such contract which
(a) subjects the company to excessive charges for expenses or
commissions;
(b) vests in the agent or agency company any control over the management
of the affairs of the insurance company to the exclusion of the board of
directors of the insurance company;
(c) gives to such person, the right to solicit, procure, write or produce
a major part of the insurance business for such insurance company and collect
and hold the premiums for such unreasonable period as may jeopardize the
security of policyholders; or
(d) fails to require such person to make available to the Director or
his designees all books, records and documents pertaining to such person's
insurance business.
(3) The Director shall not approve any contract with any person if such
person or its officers and directors are of known bad character or have
been affiliated directly or indirectly through ownership, control,
management, reinsurance transactions or other insurance or business
relationships with any person or persons known to have been involved in the
improper manipulation of assets, accounts or reinsurance.
(4) The Director, for the purpose of ascertaining the assets, conditions
and affairs of any person having a contract as provided in subsection (1),
may examine the books, records, documents and assets of such person.
(5) The Director may, after a hearing held pursuant to Section 401,
withdraw his approval of any agency contract theretofore approved by him,
if he finds that the basis of his original approval no longer exist, or
that the contract has, in actual operation, shown itself to be subject to
disapproval on any of the grounds referred to in subsections (2) and (3) above.
(Source: P.A. 84-714.)
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