(215 ILCS 5/60) (from Ch. 73, par. 672)
(Section scheduled to be repealed on January 1, 2027)
Sec. 60.
Procedure
when insufficient assets are possessed by company. (1) Whenever the Director finds that the admitted assets of a company
subject to the provisions of this Article are less than the aggregate of
(a) its liabilities and (b) the minimum surplus required to be maintained
by Section 43, he must notify the company in writing of the amount of such
impairment and require that such impairment must be removed within such
period, which shall not be less than 30 nor more than 90 days, as he may
designate. Unless otherwise allowed by the Director, the company must
discontinue the issuance of new or renewal
policies while such impairment exists. If the contracts issued by the
company contain a provision for a contingent liability, the Director may
order the board of directors or trustees of the company to levy an
assessment for the purpose of removing such impairment against each member
in accordance with the terms of his policy. If the Director finds that the
company will remove the impairment or a part thereof from sources other
than an assessment, he may permit a reduction in the amount of the
assessment to the extent of the sum so to be obtained. No member is liable
for an assessment unless notified of the company's claim therefor within
one year after the termination of the policy whether by expiration,
cancellation or otherwise. Nothing contained in this paragraph may be
construed to limit or restrict the authority of any liquidator, conservator
or rehabilitator acting under Article XIII or XIII 1/2 of this Act.
(2) If policies containing provisions for a contingent liability are
outstanding, and the company fails to levy an assessment within 20 days
from the date of an order, or if the impairment is not removed within the
period specified in the Director's notice, the company shall be deemed
insolvent and the Director may cancel the company's certificate of
authority and shall proceed against it in accordance with Article XIII.
(3) If, while the impairment exists, any officer, director, or trustee
of the company renews, issues or delivers or causes to be renewed, issued
or delivered any policy, contract or certificate of insurance unless otherwise
allowed by the Director, and the fact
of such impairment is known to the officer, director, or trustee of the
company, such officer, director, or trustee shall be guilty of a business
offense and may be fined not less than $200 and not more than $5,000 for
each offense.
(4) Nothing in this Section prohibits, while such impairment exists, any
such officer, director, trustee, agent or employee from issuing or renewing
a policy of insurance when an insured or owner exercises an option granted
to him under an existing policy to obtain new, renewed or converted
insurance coverage.
(Source: P.A. 82-498.)
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