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(215 ILCS 155/11) (from Ch. 73, par. 1411)
Sec. 11. Statutory premium reserve.
(a) A domestic title insurance company shall establish and
maintain a statutory premium reserve computed in accordance with this
Section. The reserve shall be reported as a liability of the title
insurance company in its financial statements. The statutory premium
reserve shall be maintained by the title insurance company for the
protection of holders of title insurance policies. Except as provided in
this Section, assets equal in value to the statutory premium reserve are
not subject to distribution among creditors or stockholders of the title
insurance company until all claims of policyholders or claims under
reinsurance contracts have been paid in full and discharged,
lawfully reinsured, or otherwise assumed by another title insurance company authorized to do business under this Act.
(b) A foreign or alien title insurance company authorized to do business
under this Act shall maintain at least the same reserves on title insurance
policies issued on properties located in this State as are required of
domestic title insurance companies.
(c) The statutory premium reserve shall consist of:
(1) the amount of the statutory premium reserve on |
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(2) a sum equal to 12 1/2 cents for each $1,000 of
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| net retained liability under each title insurance policy on a single risk written on properties located in this State after January 1, 1990.
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(d) Amounts placed in the statutory premium reserve in any year in
accordance with this Section shall be deducted in determining the net
profit of the title insurance company for that year.
(e) A title insurance company shall release from the statutory premium
reserve a sum equal to 10% of the amount added to the reserve during
a calendar year on July 1 of each of the 5 years following the year in
which the sum was added, and shall release from the statutory premium
reserve a sum equal to 3 1/3% of the amount added to the reserve during
that year on each succeeding July 1 until the entire amount for that year
has been released. The amount of the statutory premium reserve or similar
premium reserve maintained before January 1, 1990,
shall be released in accordance with the law in effect before January 1,
1990.
(f) This reserve is independent of the deposit requirements of Section 4 of this Act.
(Source: P.A. 94-893, eff. 6-20-06.)
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