(215 ILCS 5/173) (from Ch. 73, par. 785)
Sec. 173.
Reinsurance authorized.
(a) Subject to the provisions of this Article, any domestic company may,
by a reinsurance agreement, accept any part or all of any risks of the
kind which it is authorized to insure and it may cede all or any part of
its risks to another solvent company having the power to make such
reinsurance. It may take credit for the reserves on such ceded risks to
the extent reinsured subject to the exceptions provided in Sections
173.1 through 173.5.
(b) The purpose of this Article is to protect the interest of insureds,
claimants, ceding insurers, assuming insurers, and the public generally. The
legislature hereby declares its intent is to ensure adequate regulation of
insurers and reinsurers and adequate protection for those to whom they owe
obligations. In furtherance of that State interest, the legislature hereby
provides a mandate that upon the insolvency of a non-U.S. insurer or reinsurer
that provides security to fund its U.S. obligations in accordance with this
Article, the assets representing the security shall be maintained in the United
States and claims shall be filed and valued by the state insurance
official with regulatory oversight, and the assets shall be distributed in
accordance with the insurance laws of the state in which the trust is
domiciled that are applicable to the liquidation of domestic U.S. insurance
companies. The legislature declares that the matters contained in this Article
are fundamental to the business of insurance in accordance with 15 U.S.C
Sections 1011 through 1012.
(Source: P.A. 90-381, eff. 8-14-97.)
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