Illinois Compiled Statutes
215 ILCS 5/ - Illinois Insurance Code.
Article VIIC - Domestic Captive Insurance Companies

(215 ILCS 5/Art. VIIC heading)

 
(215 ILCS 5/123C-1) (from Ch. 73, par. 735C-1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-1. Definitions. As used in this Article:
A. "Affiliate" or "Affiliated company" includes a parent entity that controls a captive insurance company and:
B. "Association" means any entity meeting the requirements
set forth in either of the following paragraphs (1), (2) or (3):
Provided, however, that with respect to each of
the associations described in paragraphs (1),
(2) and (3) above, no member organization may (i)
own, control, or hold with power to vote in excess of
25% of the voting securities of an association captive
insurance company incorporated as a stock insurer, or
(ii) have more than 25% of the voting control of an association
captive insurance company organized as a mutual insurer.
C. "Association captive insurance company" means any
company that insures risks of (i) the member organizations
of an association, and (ii) their affiliated companies.
D. "Captive insurance company" means any pure captive
insurance company, association captive insurance company
or industrial insured captive insurance company organized
under the provisions of this Article.
E. "Director" means the Director of the Department of Insurance.
F. "Industrial insured" means an insured which (together
with its affiliates) at the time of its initial procurement
of insurance from an industrial insured captive insurance
company:
G. "Industrial insured captive insurance company"
means any company that insures risks of industrial insureds
that are members of the industrial insured group, and
their affiliated companies.
H. "Industrial insured group" means any group of industrial
insureds that collectively:
I. "Member organization" means any individual, legal
representative, corporation (whether for profit or not
for profit), partnership, association, unit of government, trust or other
organization that belongs to an association or an industrial
insured group.
J. "Parent" means a corporation, partnership, individual or other legal entity
that directly or indirectly owns, controls, or holds
with power to vote more than 50% of the outstanding
voting securities of a company.
K. "Personal risk liability" means liability to other
persons for (i) damage because of injury to any person,
(ii) damage to property, or (iii) other loss or damage,
in each case resulting from any personal, familial, or household
responsibilities
or activities, but does not include legal liability
for damages (including costs of defense, legal costs
and fees, and other claims expenses) because of injuries
to other persons, damage to their property, or other
damage or loss to such other persons resulting from
or arising out of:
L. "Pure captive insurance company" means any company
that insures only risks of its parent or affiliated companies
or both.
M. "Unit of government" includes any state, regional or local
government, or any agency or political subdivision thereof, or any
district, authority, public educational institution or school district,
public corporation or other unit of government in this State or any similar
unit of government in any other state.
N. "Control" means the power to direct, or cause the direction of, the management and policies of an entity, other than the power that results from an official position with or corporate office held in the entity. The power may be possessed directly or indirectly by any means, including through the ownership of voting securities or by contract, other than a commercial contract for goods or non-management services.
O. "Qualified independent actuary" means a person that is either:
P. "Controlled unaffiliated business" means an entity:
Q. "Operational risk" means any potential financial loss of an affiliate, except for a loss arising from an insurance policy issued by a captive or insurance affiliate.
R. "Captive management company" means an entity providing administrative services to a captive insurance company.
S. "Safety-Net Hospital" means an Illinois hospital that qualifies as a Safety-Net Hospital under Section 5-5e.1 of the Illinois Public Aid Code.
(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-2) (from Ch. 73, par. 735C-2)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-2. Authority of captives; restrictions.
A. (Blank).
A-5. A captive insurance company may not issue:
A-10. A captive insurance company is authorized to issue a contractual reimbursement policy to:
B. No captive insurance company shall do any insurance
business in this State unless:
C. No captive insurance company shall adopt a name
that is the same as, deceptively similar to, or likely
to be confused with or mistaken for, any other existing
business name registered in this State.
D. Each captive insurance company, or the organizations
providing the principal administrative or management
services to such captive insurance company, shall maintain
a place of business in this State.

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-3) (from Ch. 73, par. 735C-3)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-3. Minimum capital and surplus.
A. The Department may not issue a certificate of authority to a captive insurance company unless the company possesses and maintains unencumbered capital and surplus in an amount determined by the Director after considering:
B. The amount of capital and surplus determined by the Director under subsection A of this Section may not be less than $250,000 for a pure captive insurance company, $500,000 for an industrial insured captive insurance company, and $750,000 for an association captive insurance company.
C. The capital and surplus required by subsection A of this Section must be in the form of:
 
(215 ILCS 5/123C-4)
Sec. 123C-4. (Repealed).


(Source: 86-632. Repealed by P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-5) (from Ch. 73, par. 735C-5)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-5.
Formation of captive insurance companies
in this State; certificate of authority.
A. A pure captive insurance company shall be incorporated
as a stock insurer with its capital divided into shares
and held by the stockholders.
B. An association captive insurance company or an industrial
insured captive insurance company may be incorporated:
C. No stock captive insurance company shall issue any
shares of stock having a par value of less than $1
per share. The capital stock of a captive insurance
company incorporated as a stock insurer shall be issued
at not less than par value.
D. The provisions of subsection (1) of Section 10, subsection (1) of
Section 12, Sections 14, 14.1, 15 (excluding subsections (d) and (e)
thereof), 18, 19, 20 and 21, subsections (3) and (4) of Section 23, and
Section 25 shall apply to the organization of a stock captive insurance
company.
E. The provisions of subsection (1) of Section 40, subsections (1) and
(2) of Section 42, Section 44, subsection (a) and (b) of Section 45, and
Sections 48, 49, 50 and 52 shall apply to the organization of a mutual
captive insurance company.
F. (1) In order to receive a certificate of authority,
at the same time as the documents referred to in subsections (a), (b) and
(c) of Section 15 (in the case of a stock captive insurance company) or
subsections (a) and (b) of Section 45 (in the case of a mutual captive
insurance company) are delivered to the Director, the incorporators shall
file with the Director any statements or documents required by the
Director, including evidence of the following:
The Director may deny the incorporators' application
for a certificate of authority if he determines, in
the exercise of his discretion, either that the foregoing
standards have not been satisfied or that the proposed
captive insurance company is being organized for purposes
inimical to the interests of policyholders.
(2) If the Director is satisfied, on the basis of
the documents and statements referred to in paragraph (1) of subsection F,
that the captive insurance company meets the criteria
set forth in paragraph (1) of subsection F, and that the captive insurance
company meets all other requirements imposed by this
Article (other than those set forth in Sections 123C-3 and
123C-4), he shall, at the same time as he effects the
filing referred to in Section 18 (or, in the case of
a mutual insurance company, Section 48) and issues the
permit referred to in Section 20 (or, in the case of
a mutual insurance company, Section 50), notify the
captive insurance company in writing of his determination,
which notification shall state that the Director will
issue a certificate of authority upon receipt of evidence
satisfactory to the Director that the company has fully
collected the capital and surplus required by Sections
123C-3 and 123C-4. Upon receipt of evidence satisfactory
to the Director that the required capital and surplus
have been fully collected by the company, the Director
shall grant a certificate of authority authorizing the
captive insurance company to transact the kind or kinds
of business specified therein.

(Source: P.A. 86-632.)
 
(215 ILCS 5/123C-6) (from Ch. 73, par. 735C-6)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-6.
Change in plan of operation; violations.
Any material change in items (i) through (v)
of the captive insurance company's plan of operations
described in subparagraph (c) of paragraph (1) of subsection F of Section
123C-5 requires prior approval
of the Director. Any material change which is not disapproved
by the Director within 30 days after its submission
shall be deemed approved. The provisions of Sections 401.1
and 403A shall apply to a captive insurance company's
material failure to adhere to items (i) through
(v) of its plan of operations described in subparagraph (c) of paragraph
(1) of subsection F of Section 123C-5
(to the same extent and in the same manner as if such
failure were a violation of this Code).

(Source: P.A. 85-131.)
 
(215 ILCS 5/123C-7) (from Ch. 73, par. 735C-7)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-7.
Directors - conflicts of interest.
A. The provisions of Section 10 shall apply to stock
captive insurance companies and all those having dealings
therewith and the provisions of Section 40 shall apply
to mutual captive insurance companies and all those
having dealings therewith; provided that no residents
or citizens of this State need be directors. No director
may serve who has been convicted of fraud involving
any financial institution or of a felony. The Director
may waive the prohibition regarding a felony if he determines
that the particular felony does not jeopardize the person's
ability to act as a director.
B. Every captive insurance company shall report to
the Director within 30 days after any change in
its executive officers or directors, including in its
report a statement of the business and professional
affiliations of any new executive officer or director.
For purposes of this subsection B, the term "executive
officer" includes only the following: chairman of the
board of directors; president; executive or senior vice-president;
secretary; and treasurer.
C. No director, officer, or employee having any authority
in the investment or disposition of the funds of a captive
insurance company shall accept, except on behalf of
the company, or be the beneficiary of, any fee, brokerage,
gift, or other emolument because of any investment,
loan, deposit, purchase, sale, payment, or exchange
made by or for the company; but a director who is not
otherwise an officer or employee of the company may
receive reasonable compensation for services performed
for sales or purchases made to or for the company in
the ordinary course of its business and in the usual
private professional or business capacity of such director.
D. Any profit or gain received by or on behalf of any
person in violation of subsection C of this Section
shall inure to and be recoverable by the company. A
suit to recover such profit may be instituted in any
court of competent jurisdiction by the company, or by
any stockholder of the company in its name and on its
behalf if the company fails or refuses to bring such
suit within 60 days after request in writing or if
the company fails diligently to prosecute the same
thereafter. No such suit shall be brought more than
2 years after the date such profit or gain was discovered.

(Source: P.A. 85-131.)
 
(215 ILCS 5/123C-8) (from Ch. 73, par. 735C-8)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-8.
Merger, consolidation, plans of exchange
and reorganization.
A. The provisions of Article X shall apply to captive
insurance companies; provided, however, that:
B. (1) Any domestic, foreign or alien stock company,
mutual company, or reciprocal company, authorized or
which may be authorized to do business in this State,
may reorganize as a domestic captive insurance company
under the laws of this State, by complying with the
provisions of Article XII. Domestic companies are hereby
authorized to reorganize as domestic captive insurance
companies.
(Source: P.A. 85-131.)
 
(215 ILCS 5/123C-9) (from Ch. 73, par. 735C-9)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-9. Reports, statements and mandatory reserves.
A. Captive insurance companies shall not be required
to make any annual report except as provided in this
Article.
B. (1) On or before March 1 of each year, each captive
insurance company shall submit to the Director a report
of its financial condition, verified by oath of 2
of its executive officers and including (i) a balance
sheet reporting assets, liabilities, capital and surplus,
(ii) a statement of gain or loss from operations, (iii)
a statement of changes in financial position, (iv) a
statement of changes in capital and surplus, (v)
in the case of industrial insured captive insurance
companies, an analysis of loss reserve development,
information on risks ceded and assumed under reinsurance
agreements, on forms prescribed by the Director, and
a schedule of its invested assets on forms prescribed
by the Director, and (vi) a statement of actuarial opinion by a qualified independent actuary concerning the reasonableness of the captive insurance company's loss and loss adjustment expense reserves in such form and of such content as specified in the National Association of Insurance Commissioners Annual Statement Instructions: Property and Casualty.
(2) In addition, prior to March 1 of each year, each
association captive insurance company shall submit to
the Director such additional data or information, which
the Director may from time to time require, on a form
specified by the Director.
(3) On or before June 1 of each year, each captive insurance company shall submit to the Director a report of its financial condition at last year's end with an independent certified public accountant's opinion of the company's financial condition.
(4) Unless the Director permits otherwise, the reports
of financial condition referred to in paragraphs (1)
and (3) of this subsection B are to be prepared in accordance with the Accounting
Practices and Procedures Manual adopted by the National
Association of Insurance Commissioners. The Director
shall have authority to extend the time for filing any
report or statement by any company for reasons which
he considers good and sufficient.
C. In addition, any captive insurance company may be
required by the Director, when he considers such action
to be necessary and appropriate for the protection of
policyholders, creditors, shareholders or claimants,
to file, within 60 days after mailing to the company
of a notice that such is required, a supplemental summary
statement as of the last day of any calendar month occurring
during the 100 days next preceding the mailing of such
notice designated by him on forms prescribed and furnished
by the Director. No company shall be required to file
more than 4 supplemental summary statements during any
consecutive 12 month period.
D. Every captive insurance company shall, at all times,
maintain reserves in an amount estimated in the aggregate
to provide for the payment of all losses and claims
incurred, whether reported or unreported, which are
unpaid and for which such company may be liable, and
to provide for the expenses of adjustment or settlement
of such losses and claims. The aggregate reserves shall
be reduced by reinsurance ceded which meets the requirements
of Section 123C-13.
For the purpose of such reserves, the company shall keep a complete and
itemized record showing all losses and claims on which it has received
notice, including all notices received by it of the occurrence of any event
which may result in a loss. Such record shall be opened in chronological
receipt order, with each notice of loss or claim identified by appropriate
number or coding.
E. Every captive insurance company shall maintain an
unearned premium reserve on all policies in force which
reserve shall be charged as a liability. The portions
of the gross premiums in force, after deducting reinsurance
qualifying under Section 123C-13, which shall be held
as a premium reserve, shall never be less in the aggregate
than the company's actual liability to all its insureds
for the return of gross unearned premiums. In the calculation
of the company's actual liability to all its insureds,
the reserve shall be computed pursuant to the method
commonly referred to as the monthly pro rata method;
provided, however, that the Director may require that
such reserve shall be equal to the unearned portions
of the gross premiums in force, after deducting reinsurance
qualifying under Section 123C-13, in which case the reserve shall
be computed on each respective risk from the date of
the issuance of the policy.
E-5. A captive insurance company may make a written application to the Director for filing its annual report required under this Section on a fiscal year's end. If an alternative filing date is granted, the company shall file:
F. The reports required by this Section shall be prepared
and filed on a calendar year basis.
G. Notwithstanding the requirements of this Section,
a captive insurance company may prepare and issue financial
statements prepared in accordance with generally accepted
accounting principles.

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-10) (from Ch. 73, par. 735C-10)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-10.
Examinations and investigations;
fees.
A. The provisions of Sections 132 through 132.7 shall
apply to captive
insurance companies. The expenses and charges of any
examination conducted pursuant to those Sections shall
be paid by the company examined.
B. When necessary to supplement its evaluation or examination
procedures, the Department may retain independent actuaries
deemed competent by the Director, qualified loss
reserve consultants, independent risk managers,
independent certified public accountants, or
qualified examiners of insurance companies deemed competent
by the Director, or any combination of the foregoing. The Director may
also accept as a part of the Department's examination of any company
or person (a) a report by an independent actuary deemed
competent by the Director or (b) a report of an audit
made by an independent certified public accountant.
Neither those persons so designated nor any members
of their immediate families shall be officers of,
connected with, or financially interested in any company
other than as policyholders, nor shall they be financially
interested in any other corporation or person affected
by the examination, investigation or hearing. The reasonable
expenses and charges of persons so retained or
designated shall be paid directly by the company.

(Source: P.A. 89-97, eff. 7-7-95.)
 
(215 ILCS 5/123C-11) (from Ch. 73, par. 735C-11)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-11. Grounds and procedures for suspension
or revocation of certificate of authority.
A. The certificate of authority of a captive insurance
company to do an insurance business in this State may
be suspended or revoked by the Director for any of the
following reasons:
B. If the Director finds, upon examination, hearing,
or other evidence, that any captive insurance company
has committed any of the acts specified in subsection A,
he may suspend or revoke such certificate of authority
if he deems it in the best interest of the public and
the policyholders of such captive insurance company,
notwithstanding any other provision of this Article.
C. The provisions of Articles XIII and XIII 1/2 shall
apply to and govern the conservation, rehabilitation,
liquidation and dissolution of captive insurance companies.

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-12) (from Ch. 73, par. 735C-12)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-12. Legal investments.
A. The provisions of Article VIII and of Sections 131.2
and 131.3 shall apply to association captive insurance
companies.
B. No pure captive insurance company or industrial
insured captive insurance company shall be subject to
any restrictions on allowable investments whatever,
including those limitations contained in Articles VIII
and VIII 1/2; provided, however, that the Director
may prohibit or limit any investment or type of investment
that threatens the solvency or liquidity of any such
company; and provided further that an industrial insured
captive insurance company must adhere to the investment
policy set forth in its plan of operation as approved
from time to time by the Director.
C. A captive insurance company may make loans to its affiliates with the prior approval of the Director. Each loan must be evidenced by a note approved by the Director. A captive insurance company may not make a loan of the minimum capital and surplus funds required by this Article.
D. The Director may prohibit or limit an investment that threatens the solvency or liquidity of a captive insurance company.
(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-13) (from Ch. 73, par. 735C-13)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-13. Reinsurance.
A. Any captive insurance company may provide reinsurance
on risks ceded by any other insurer; provided, however,
that the risks so assumed are the same as the captive
insurance company could legally insure on a direct basis.
The provisions of Section 174.1 shall not apply to
any captive insurance company providing reinsurance.
B. Subject to the provisions of Article XI, any captive
insurance company may cede, and may take credit for
in the establishment of reserves, all or any part of
its risks.
Furthermore, in addition to Section 173.1, any pure or industrial insured
captive insurance company may take credit, as either an
asset or a deduction from liability, for reinsurance so ceded to the extent:
C. A captive insurance company shall provide notice to the Director of a reinsurance agreement to which the company becomes a party not later than the 30th day after the date of the execution of the agreement.
D. A captive insurance company shall provide notice of a termination of a previously filed reinsurance agreement to the Director not later than the 30th day after the date of termination.
E. Notwithstanding Section 123C-15 of this Code, a captive insurance company, with the Director's approval, may accept risks from and cede risks to or take credit for reserves on risks ceded to:
 
(215 ILCS 5/123C-14) (from Ch. 73, par. 735C-14)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-14.
Rating organizations; memberships;
rate or policy filing.
No captive insurance company shall be required to join
a rating organization. No captive insurance company
shall be required to file its premium rates or policy
forms with, or to seek approval of such rates or forms
from, the Director or any other authority of this State.

(Source: P.A. 85-131.)
 
(215 ILCS 5/123C-15) (from Ch. 73, par. 735C-15)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-15.
Exemption from compulsory associations.
No captive insurance company shall be permitted or
required to join or contribute financially to any plan,
pool, association, or guaranty or insolvency fund in
this State, nor shall any captive insurance company,
nor its insureds nor any claimants against the insureds,
nor its parent nor any affiliated company, nor any member
organization of its association, receive any benefit
from any such plan, pool, association, or guaranty or
insolvency fund for claims arising out of the operations
of such captive insurance company. Each association
captive insurance company and each industrial insured
captive insurance company shall inform each insured,
in both the application for insurance and in the policy
issued to such insured, that (i) the captive insurance
company is not subject to all of the insurance laws
and regulations of this State, and (ii) state insurance
insolvency guaranty funds are not available to such
insured for claims arising out of the operations of
such captive insurance company.

(Source: P.A. 85-131.)
 
(215 ILCS 5/123C-16) (from Ch. 73, par. 735C-16)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-16. Tax.
A. Every captive insurance company organized under
the provisions of this Article and doing business in
this State shall, for the privilege of doing business
in this State, pay to the Director for the State treasury
the State tax imposed under Section 409 to the same
extent and in the same manner as a domestic insurance company using a tax form prescribed by the Director on or before March 15 of each year.
B. Domestic captive insurance companies shall be insurance companies
subject to the rules now provided for such companies under the Illinois
Income Tax Act.
C. A domestic captive insurance company that has engaged one or more
administrative or management service organizations in order to comply with
subsection D of Section 123C-2 shall be deemed to meet the requirements of
Section 409(4)(a) through (d) provided that the company and such
organizations when viewed collectively as a group:
(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-17) (from Ch. 73, par. 735C-17)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-17. Fees.
A. The Director shall charge, collect, and give proper
acquittances for the payment of the following fees and
charges with respect to a captive insurance company:
B. Except as otherwise provided in subsection A of this Section and in
Section 123C-10, the provisions of Section 408 shall
apply to captive insurance companies.
C. Any funds collected from captive insurance companies
pursuant to this Section shall be treated in the manner
provided in subsection (11) of Section 408.

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-18) (from Ch. 73, par. 735C-18)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-18. Additional powers, rights, and obligations. In addition to the powers and duties set forth in the
other provisions of this Article VIIC and to the extent
not inconsistent with the provisions of this Article VIIC:
(Source: P.A. 100-863, eff. 8-14-18.)
 
(215 ILCS 5/123C-19) (from Ch. 73, par. 735C-19)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-19. Letters of credit.
A. Any letter of credit used to meet the requirements
set forth in Sections 123C-3 and 123C-4:
B. If letters of credit are used to provide surplus
in excess of the amounts required in Section 123C-4:
C. (Blank).
D. (Blank).

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-20) (from Ch. 73, par. 735C-20)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-20.
Laws applicable.
No provisions of this Code, other than
those contained in this Article or contained in specific references
contained in this Article, shall apply to domestic captive
insurance companies.

(Source: P.A. 85-131.)
 
(215 ILCS 5/123C-21) (from Ch. 73, par. 735C-21)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-21.
Severability.
If any clause, sentence, paragraph,
Section or part of this Article or the application thereof to any person or
circumstances, shall, for any reason, be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair or
invalidate the remainder of this Article, and the application thereof to
other persons or circumstances, but shall be confined in its operation to
the clause, sentence, paragraph, Section or part thereof directly involved
in the controversy in which such judgment shall have been rendered and to
the person or circumstances involved.

(Source: P.A. 85-131.)
 
(215 ILCS 5/123C-22) (from Ch. 73, par. 735C-22)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-22.
Subordinated indebtedness.
A captive insurance company
organized under this Article may borrow or assume a liability for the
repayment of a sum of money upon a written agreement for the loan or
advance, with interest at a rate not exceeding the corporate base rate as
reported by the largest bank (measured by assets) with its head office
located in Chicago, Illinois, as in effect on the first business day of the
month, plus 3 percent per annum. Such rate shall be fixed on the execution
of the loan and apply for the term of the loan. Such loan and interest
thereon shall be repaid only out of surplus of the company in excess of such
minimum surplus as is stipulated in and by the agreement. The agreement
shall first be submitted to and approved by (A) not less than a majority of
the Board of Directors of a stock company or a mutual
company, and (B) the Director. Repayment of principal or payment of
interest may be made only with the approval of the Director when he is
satisfied that the financial condition of the company warrants such action.
No loan or advance made under this Section or interest accruing thereon
shall form a part of the legal liabilities of the company until authorized
for payment by the Director but, until such authorization, all statements
published by the company or filed with the Director shall show the amount
thereof then remaining unpaid as a special surplus or capital account at
the election of the company. Such account shall be considered in
determining whether initial minimum capital and surplus requirements have
been met. Nothing in this Section shall be construed to mean that a
company may not otherwise borrow money, but the amount so borrowed with
accrued interest thereon shall be carried by the company as a liability.

(Source: P.A. 86-632.)
 
(215 ILCS 5/123C-23)
Sec. 123C-23. Approval of captive reinsurance pools. Before determining whether to approve a captive insurance company's participation in a captive reinsurance pool under Section 123C-13 of this Code, the Director may:
(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-24)
Sec. 123C-24. Standards for risk management of controlled unaffiliated business. The Director may adopt rules establishing standards to ensure that an affiliated company is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by the captive insurance company.

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-25)
Sec. 123C-25. Captive managers. Before providing captive management services to a licensed captive insurance company, a captive management company shall register with the Director by providing the information required on a form adopted by the Director.

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-26)
Sec. 123C-26. Dividends.
A. A captive insurance company shall notify the Director in writing when issuing policyholder dividends.
B. A captive insurance company, with the Director's approval, may issue dividends or distributions to the holders of an equity interest in the captive insurance company. The Director shall adopt rules to implement this subsection B.

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-27)
Sec. 123C-27. Rulemaking authority. The Director may adopt reasonable rules as necessary to implement the purposes and provisions of this Article.

(Source: P.A. 100-1118, eff. 11-27-18.)
 
(215 ILCS 5/123C-28)
Sec. 123C-28. Confidentiality.
A. Any information filed by an applicant or captive insurance company under this Article is confidential and privileged for all purposes, including for purposes of the Freedom of Information Act, a response to a subpoena, or evidence in a civil action. Except as provided by subsections B and C of this Section, the information may not be disclosed without the prior written consent of the applicant or captive insurance company to which the information pertains.
B. If the recipient of the information described by subsection A of this Section has the legal authority to maintain the confidential or privileged status of the information and verifies that authority in writing, the Director or his or her designee may disclose the information to any of the following entities functioning in an official capacity:
C. The Director may use information described by subsection A of this Section in the furtherance of a legal or regulatory action relating to the administration of this Code.

(Source: P.A. 100-1118, eff. 11-27-18.)

Structure Illinois Compiled Statutes