(215 ILCS 5/378) (from Ch. 73, par. 990)
Sec. 378.
Scope of
article.
This article shall apply to all companies authorized in this State to
transact the kind or kinds of business enumerated in Class 2 of section
4.
Every such company shall, at all times, maintain reserves in an amount
estimated in the aggregate to provide for the payment of all losses and
claims incurred, whether reported or unreported, which are unpaid and for
which such company may be liable, and to provide for the expenses of
adjustment or settlement of such losses and claims. Such reserves shall be
computed in accordance with regulations made from time to time by the
Director after notice and hearing, upon reasonable consideration of the
ascertained experience and the character of such kinds of business for the
purpose of adequately protecting the insured and securing the solvency of
such company.
Whenever the loss and loss expense experience of such company shows the
reserves, calculated in accordance with such regulations, to be inadequate,
the Director may require such company to maintain additional reserves.
Each company that writes liability or compensation policies shall
include in the annual statement required by law, a schedule of its
experience thereunder in such form as the Director may prescribe.
(Source: Laws 1967, p. 1812.)
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