Illinois General Assembly - Illinois Compiled Statutes

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215 ILCS 5/126.1

(215 ILCS 5/126.1)

Sec. 126.1.

Purpose and scope.

A. Purpose.
The purpose of this Article is to protect the interests of insureds by
promoting
insurer solvency and financial strength. This will be accomplished through the
application of investment standards that facilitate a reasonable balance of the
following objectives:

(1) To preserve principal;

(2) To assure reasonable diversification as to type

of investment, issuer and credit quality; and

(3) To allow insurers to allocate investments in a

manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to insureds are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies.

B. Scope.
This Article shall apply only to investments and investment practices of
domestic insurers and United States branches of alien insurers entered through
this State. This Article shall not apply to separate accounts of an insurer
except to the extent that the provisions of Article XIV 1/2 so provide.

(Source: P.A. 90-418, eff. 8-15-97.)