(215 ILCS 150/6) (from Ch. 148, par. 206)
Sec. 6.
Risk pools; risk retention groups.
(a) A trust fund may enter into written agreements
with other trust funds established under this Act whereby the
risks assumed by any such trust fund may be pooled and shared
with such other trust funds.
(b) A trust fund may enter into written agreements for the purpose of
assuming risks from (i) risk pools or risk retention groups established or
organized pursuant to the laws of any other state exclusively to provide
protections, as described in this Act, to organizations
which are exempt
from taxation under paragraph (3) of
subsection (c) of Section 501 of the
Internal Revenue Code, as amended from time to time, and their affiliated
title holding corporations that are exempt from taxation under paragraph (2)
of subsection (c) of Section 501 of the Internal Revenue Code of 1954, as
amended from time to time,
or (ii) insurance
companies with regard to protections, as described in this Act, exclusively
for organizations which are exempt from taxation, as aforesaid. As a
condition to such authority, any trust fund so assuming risk from any risk
pool, risk retention group or insurance company, shall,
directly or through an underwriting manager controlled by it, underwrite
risks assumed by it either on a facultative basis or on a primary basis
pursuant to an underwriting management agreement with the entity from which
risk is being assumed. Such underwriting management agreement shall
provide for underwriting risks assumed on behalf of both the ceding entity
and the assuming trust fund. For purposes of this subsection (b), the term
"underwrite" shall include, but not be limited to, classification,
selection and pricing of risks.
(Source: P.A. 92-99, eff. 7-20-01.)
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