(215 ILCS 5/155.04) (from Ch. 73, par. 767.4)
Sec. 155.04.
Standards for companies and officials.
(1) The Director shall not approve any declaration of organization or
Articles of Incorporation or issue a Certificate of Authority to any
company until he has found that (a) the company has submitted a sound plan
of operation, and (b) the general character and experience of the
incorporators, directors and proposed officers is such as to assure
reasonable promise of a successful operation, based on the fact that such
persons are of known good character and that there is no good reason to
believe that they are affiliated, directly or indirectly, through
ownership, control, management, reinsurance transactions or other insurance
of business relations with any person or persons known to have been
involved in the improper manipulation of assets, accounts or reinsurance.
The Director may require, in substantially the same form, the information
required under Section 131.5 of this Code.
(2) All companies licensed to do business in this state must notify the
Director within 30 days of the appointment or election of any new officers
or directors.
(3) Except in cases where the Director deems that any officer or
director meets the standards set forth in this section, he shall, after
notice and hearing afforded to the officer or director, and after a finding
that the officer or director is incompetent or untrustworthy or of known
bad character, order the removal of the person. If a company does not
comply with a removal order within 30 days, the Director shall suspend that
company's Certificate of Authority until such time as the order is complied
with.
(4) It shall be unlawful for a company to borrow money or
receive a
loan or advance from anyone convicted of a felony, anyone who is
untrustworthy or of known bad character or anyone convicted of a criminal
offense involving
the conversion or misappropriation of fiduciary funds or insurance
accounts, theft, deceit, fraud, misrepresentation or corruption.
(Source: P.A. 89-97, eff. 7-7-95.)
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