Illinois Compiled Statutes
215 ILCS 5/ - Illinois Insurance Code.
Article VI - Foreign Or Alien Companies

(215 ILCS 5/Art. VI heading)

 
(215 ILCS 5/108) (from Ch. 73, par. 720)
(Section scheduled to be repealed on January 1, 2027)
Sec. 108.
Companies
that may be admitted to do business.
(1) Upon complying with the provisions of this Article, a foreign or
alien company organized as a stock company, mutual company, reciprocal,
Lloyds or fraternal benefit society
may be admitted to transact in this State the kind or kinds of business
which a domestic company similarly organized may be authorized to transact
under this Code. Any certificate of authority issued to an alien Lloyds
shall be subject to all of the provisions of Section 103.
(2) No foreign or alien mutual benefit society or burial society shall
hereafter be admitted to transact business in this State.
(3) No foreign or alien company shall transact in this State any
insurance business not classified under Section 4.

(Source: P.A. 82-498.)
 
(215 ILCS 5/109) (from Ch. 73, par. 721)
(Section scheduled to be repealed on January 1, 2027)
Sec. 109.
Application for certificate of authority.
(1) A foreign or alien company in order to procure a certificate of
authority to transact business in this State shall make application
therefor to the Director. The application shall set forth:
(2) Such application shall be made on forms prescribed and furnished by
the Director and shall be executed by the company by its president or a
vice-president or executive officer corresponding thereto, and verified by
such officer, and if a corporation, the corporate seal shall be thereto
affixed, attested by its secretary or other proper officer.

(Source: P.A. 90-655, eff. 7-30-98.)
 
(215 ILCS 5/110) (from Ch. 73, par. 722)
(Section scheduled to be repealed on January 1, 2027)
Sec. 110.
Delivery
to director of application and documents.
There shall be delivered to the Director
(Source: Laws 1965, p. 422.)
 
(215 ILCS 5/111) (from Ch. 73, par. 723)
(Section scheduled to be repealed on January 1, 2027)
Sec. 111.
Conditions of issuance of certificate of authority.
(1) Before a certificate of authority to transact business in this State
is issued to a foreign or alien company, such company shall satisfy the
Director that:
(2) In determining whether an alien company complies with the provisions
of subsection (1) of this section the Director shall consider only business
transacted in the United States, only the assets described in Section 60j
and only liabilities in connection with its United States business.
(3) Before a certificate of authority is issued to a foreign or alien
company, other than a Lloyds, it shall deposit with the Director securities
which are authorized investments for similar domestic companies under
Section 126.11A(1), 126.11A(2), 126.24A(1), or 126.24A(2) of
the amount, if any, required of a domestic company
similarly organized and doing the same kind or kinds of business; or in
lieu of such deposit such foreign or alien company shall satisfy the
Director that it has on deposit with an official of a state of the United
States or a depositary designated or authorized for such purpose by such
official, authorized by the law of such state to accept such deposit,
securities of at least a like amount, for the benefit and security of all
creditors, policyholders and policy obligations of such company.
(4) Before issuing a certificate of authority to a foreign or alien
company, the Director may cause an examination to be made of the condition
and affairs of such company.

(Source: P.A. 90-418, eff. 8-15-97; 90-794, eff. 8-14-98.)
 
(215 ILCS 5/112) (from Ch. 73, par. 724)
(Section scheduled to be repealed on January 1, 2027)
Sec. 112.
Service of process - Director as attorney.
(1) Every foreign or alien company desiring to transact business in this
State shall file with the Director a duly executed instrument whereby the
company shall appoint and constitute the Director and his successor or
successors in office the true and lawful attorney of such company upon whom
all lawful process in any action or legal proceeding against it may be
served and shall agree that any such lawful process against it which may be
served upon its said attorney as provided in this section shall be of the
same force and validity as if served upon the company and that the
authority thereof shall continue in force irrevocably so long as any
liability of the company in the State shall remain outstanding.
(2) Process authorized by such instrument or by any similar instrument
heretofore executed shall be served by delivering to and leaving with the
Director duplicate copies of such process with payment of the fee
prescribed by this Code, and the service thereof upon such attorney shall
be deemed service upon the company. The Director shall forthwith forward
one copy of each such process by certified or registered mail prepaid
to the company, or
in the case of an alien company, to the United States Manager or last
appointed United States general agent of the company, giving the day and
the hour of such service. Service of such process shall not be complete
until the copy thereof has been so mailed and received by the company, and
the certified receipt or registry receipt shall be prima facie evidence
of the completion of
such service. Service of process on a reciprocal or Lloyds shall be
governed by sections 77 and 105 respectively.

(Source: P.A. 83-598.)
 
(215 ILCS 5/113) (from Ch. 73, par. 725)
(Section scheduled to be repealed on January 1, 2027)
Sec. 113.
When
certificate of authority to issue.
When a foreign or alien company has complied with the requirements of
this Article and all other requirements imposed on such company by existing
laws and has paid the taxes, fees and charges imposed by law, and the
operational history of the company when reviewed in conjunction with its
loss experience, the kinds and nature of risks insured, the financial
condition of the company and its ownership and the ratio of annual premium
volume to incurred acquisition expenses and to its policyholders' surplus
indicates a condition such that the expanded operation of the company in
this State will not create a condition which might be hazardous to its
policyholders, creditors or the general public, the Director must file in
his office the documents delivered to him and must issue to the company a
certificate of authority to transact in this State the kind or kinds of
business specified therein. Such certificate shall expire on the 30th day
of June of the calendar year succeeding the calendar year in which such
certificate is issued.

(Source: P.A. 77-1513.)
 
(215 ILCS 5/113.1) (from Ch. 73, par. 725.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 113.1.
Effect of acceptance of certificate of authority.
(1) No foreign or alien company which accepts a certificate of authority
or renewal certificate of authority to transact in this State any insurance
business as described in Section 4 of this Code shall transfer by sale,
contribution, merger, consolidation, reinsurance or otherwise, its direct
policy obligations under insurance contracts with Illinois policyholders
unless:
(2) Any and all transfers resulting in the violation of this Section
shall be construed as a violation of all applicable provisions of Article
VII of this Code; including, but not limited to, Section 121-4 providing
for liability to insureds for claims or insured losses not honored by the
unauthorized insurer.
(3) Unless permitted by and obtained in compliance with this Section, or
specifically authorized by another provision of this Code, it shall be
unlawful for any unauthorized company to obtain as direct insurer any
insurance contracts written in this State.

(Source: P.A. 86-753.)
 
(215 ILCS 5/114) (from Ch. 73, par. 726)
(Section scheduled to be repealed on January 1, 2027)
Sec. 114.
Renewal of
certificate of authority.
(1) The Director shall renew for one year the certificate of authority
of a foreign or alien company on the first day of July of the calendar year
following the calendar year in which it is admitted to transact business in
this State and annually thereafter, without application by the company,
upon payment of the annual privilege tax imposed by this Code, if any,
provided the Director is satisfied that
(2) Except in case of nonpayment of taxes, the Director shall give
notice of his intention to refuse to renew the certificate of authority of
a foreign or alien company and the grounds therefor at least twenty days
before the end of the term for which the existing certificate was issued,
and, the company shall be given an opportunity for a hearing before the end
of such term.
(3) In the event that a company admitted to transact business in this
State prior to the effective date of this Code has been and is transacting
in this State or in any other state or country the kind or kinds of
business enumerated in Class 1 of Section 4 and in addition thereto any of
the kinds of business not enumerated in such class, the Director may for a
period of three years renew annually its certificate of authority to
transact such kinds of business. At the end of such three year period or at
the end of any extended period as herein provided for, the Director may
extend the period during which the certificate of authority of such company
may be renewed annually, upon a showing by the company at a hearing before
the Director that
(Source: P.A. 82-498.)
 
(215 ILCS 5/115) (from Ch. 73, par. 727)
(Section scheduled to be repealed on January 1, 2027)
Sec. 115.
Amended
certificate of authority.
(1) In the event that a foreign or alien company authorized to transact
business in this State changes its name or desires to transact in this
State a kind or kinds of business other than those it is then authorized to
transact, it shall file with the Director an application for an amended
certificate of authority.
(2) Such application shall comply as to form and manner of execution
with the requirements of this Article for an original application and shall
set forth the name of the company, the respects in which the company
desires its certificate of authority amended, and such other information as
is necessary or appropriate to enable the Director to determine whether
such an amended certificate of authority should be issued.
(3) The Director shall issue such amended certificate if he is satisfied
that
(Source: Laws 1937, p. 696.)
 
(215 ILCS 5/116) (from Ch. 73, par. 728)
(Section scheduled to be repealed on January 1, 2027)
Sec. 116.
Amendments
to articles of incorporation.
Whenever the articles of incorporation or articles of association of a
foreign or alien company authorized to transact business in this State
shall be amended, such company shall, within thirty days after the
effective date of such amendment, file with the Director a copy thereof
duly authenticated by the proper officer of the state or country under the
laws of which such company is organized. The filing of such copy shall not
of itself enlarge the authority of the company in the transaction of
business in this State, nor authorize such company to transact business in
this State under any other name than the name set forth in its certificate
of authority.

(Source: Laws 1937, p. 696.)
 
(215 ILCS 5/117) (from Ch. 73, par. 729)
(Section scheduled to be repealed on January 1, 2027)
Sec. 117.
Merger or
consolidation.
(1) Whenever a foreign or alien company authorized to transact business
in this State shall be the surviving company of a statutory merger
permitted by the laws of the state or country under which it is organized,
and such merger is not subject to the provisions of Article X; it shall
forthwith file with the Director
(2) It shall not be necessary for such surviving company to procure a
new certificate of authority to transact business in this State nor an
amended certificate unless the name of such company be changed thereby or
unless the company desires to transact in this State a kind or kinds of
business other than those which it is then authorized to transact.
(3) Whenever a foreign or alien company authorized to transact business
in this State shall be a party to a statutory merger and such company shall
not be the surviving company, or if such foreign or alien company shall be
a party to a consolidation, then the certificate of authority of such
foreign or alien company shall terminate upon such merger or consolidation,
and the surviving company, if not previously authorized to transact
business in this State, or the new company, in the case of consolidation,
shall be subject to the same requirements for admission to transact
business in this State as any other foreign or alien company.

(Source: Laws 1937, p. 696.)
 
(215 ILCS 5/118) (from Ch. 73, par. 730)
(Section scheduled to be repealed on January 1, 2027)
Sec. 118.
Withdrawal
from the State.
(1) Any foreign or alien company admitted to do business in this State
may withdraw from this State by filing with the Director a statement of
withdrawal, signed and verified by a president, vice-president or an
executive officer corresponding thereto, or in the case of a reciprocal or
Lloyds, by the attorney-in-fact, and setting forth
(2) Upon the filing of such statement together with its certificate of
authority with the Director and payment of any taxes or charges that may be
due, the Director shall cancel the certificate of authority and return the
cancelled certificate to the company. The authority of the company to
transact business in this State shall thereupon cease.

(Source: Laws 1937, p. 696.)
 
(215 ILCS 5/119) (from Ch. 73, par. 731)
(Section scheduled to be repealed on January 1, 2027)
Sec. 119.
Revocation and suspension of certificate of authority.
(1) The Director may revoke or suspend the certificate of authority of a
foreign or alien company or may by order require such insurance company to
pay to the people of the State of Illinois a penalty in a sum not exceeding
$500, and upon the failure of such insurance company to pay such penalty
within 20 days after the mailing of such order, postage prepaid, certified or
registered, and addressed to the last known place of business of such
insurance company, unless such order is stayed by an order of a court of
competent jurisdiction, the Director of Insurance may revoke or suspend the
license of such insurance company for any period of time up to, but not
exceeding a period of, 2 years whenever he finds that such company
(2) Except for the grounds stated in clauses (a), (c) or (k) of
subsection (1) of this section the Director shall not revoke or suspend the
certificate of authority of a foreign or alien company until he has given
the company at least twenty days' notice of the revocation or suspension
and of the grounds therefor and has afforded the company an opportunity for
a hearing.

(Source: P.A. 83-598.)
 
(215 ILCS 5/120) (from Ch. 73, par. 732)
(Section scheduled to be repealed on January 1, 2027)
Sec. 120.
Withdrawal
of deposits.
When a foreign or alien company has withdrawn from this State or has had
its certificate of authority to transact business in this State revoked and
such company desires to withdraw any deposit made in this State pursuant to
this Code, the Director shall upon the application of the company and at
its expense, give notice of such intention to the insurance commissioner or
other proper supervisory official of each state or country where it appears
from information on file with the Director, the company is authorized to
transact business, and shall publish notice of such intention in a
newspaper of general circulation in this State once a week for four
consecutive weeks. After such notice and publication the Director shall
deliver to such company or its assigns the securities so deposited when he
is satisfied upon examination and investigation made by him, or under his
authority, and upon the oaths of the president and secretary or other chief
officers of the company that all debts and liabilities of every kind due
and to become due which the deposit was made to secure have been paid or
otherwise extinguished.

(Source: Laws 1937, p. 696.)

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