(215 ILCS 5/78) (from Ch. 73, par. 690)
(Section scheduled to be repealed on January 1, 2027)
Sec. 78.
Governmental subscribers
accounts; dividends; other returns.
(a) The attorney-in-fact of a governmental reciprocal, in addition to
the books of account of the
reciprocal, shall keep and maintain from and after the effective date of
this amendatory Act of 1993, a separate account for each
individual subscriber, setting forth
therein the date or periods of the subscriber's participation in the
reciprocal, the subscriber's deposits, the
savings returned to
the subscriber and such other information as
may be necessary for the
determination of the subscriber's proportionate share, if any, of the
surplus funds of the reciprocal in case of liquidation. The
attorney-in-fact shall not be required to file a list of the subscribers
with the Department.
(b) The board of directors of the attorney-in-fact of any governmental
reciprocal may in its discretion and subject to the prior approval of the
advisory
committee of the governmental reciprocal and the Director of Insurance:
(1) declare dividends to its subscribers in the same |
| manner and upon and subject to the same terms and conditions as are provided in Section 54 for mutual companies, except that the reference to "articles of incorporation" in Section 54 shall mean the declaration of organization or the power of attorney or other authority of the attorney-in-fact under which contracts of insurance are to be exchanged pursuant to this article as applied to governmental reciprocals; and
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(2) return guaranty fund or guaranty capital
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| contributions in the same manner and upon and subject to the same terms and conditions as are provided in Section 56 for mutual companies and upon compliance with the provisions of the agreement to subscribe (the agreement to make the contributions), if any.
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No payment or return of surplus (other than return of guaranty fund or
of guaranty capital) shall be made except in accordance with this Section and
sound business judgment.
(Source: P.A. 90-817, eff. 3-23-99 .)
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