(215 ILCS 5/75) (from Ch. 73, par. 687)
(Section scheduled to be repealed on January 1, 2027)
Sec. 75.
Contingent
liability policy provisions.
(1) Except as provided in subsection (2) any contract of insurance
exchanged under this Article shall provide for a cash deposit and a
contingent several liability of the subscriber in an amount not less than
one nor more than 10 times the amount of the cash deposit stated in the
contract.
(2) In cases where contingent liability of subscribers is provided for,
the provision therefor must be plainly stated in each policy with
prominence equal to the indemnifying clause. In addition, each assessable
policy, other than an accident and health policy, issued or delivered in
this State after September 1, 1967 must have the following statement
printed in bold face type on the face of the policy: "This is an assessable
policy". If a reciprocal has a surplus equal to the minimum capital and
surplus required in Section 13 for a stock company transacting the same
kind or kinds of business, such reciprocal may issue policies without
contingent liability. Any such reciprocal which has issued policies without
contingent liability after the acquisition of such surplus may continue to
do so as long as it maintains a surplus equal to the capital and minimum
surplus of a stock company doing the same kind or kinds of business, but no
reciprocal may issue such policies except during such time as it continues
to have such a surplus, provided, however, that any reciprocal which is,
immediately prior to July 1, 1965, issuing policies without contingent
liability, may continue to do so as long as it maintains a surplus equal in
amount to that which would have been required immediately prior to July 1,
1965. Any reciprocal with a surplus equal to the minimum capital and
surplus required in Section 13 for a stock company transacting the same
kind or kinds of business may issue policies without the limitations
contained in subsection (1). After July 18, 1967, no company subject to
this Article may make, levy or impose upon its subscribers any assessment
based on their contingent liability unless ordered by the Director pursuant
to Section 83 of this Code.
(Source: P.A. 83-333.)
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