Illinois Compiled Statutes
Chapter 215 - INSURANCE
215 ILCS 100/ - Reinsurance Intermediary Act.

(215 ILCS 100/1) (from Ch. 73, par. 1601)
Sec. 1.
Short title.
This Act may be cited as the Reinsurance Intermediary Act.

(Source: P.A. 87-108.)

(215 ILCS 100/5) (from Ch. 73, par. 1605)
Sec. 5.
Definitions.
"Actuary" means a person who is a member in good standing of the American
Academy of Actuaries.
"Controlling person" means any person, firm, association, or corporation
that directly or indirectly has the power to direct or cause to be
directed the management, control, or activities of the reinsurance intermediary.
"Director" means the Director of the Department of Insurance.
"Insurer" means any person, firm, association, or corporation duly
licensed in this State under the applicable provisions of law as an insurer.
"Licensed producer" means an agent, broker, or reinsurance intermediary
licensed under the applicable provision of the insurance law.
"Reinsurance intermediary" means an intermediary broker or a manager.
"Intermediary broker" means any person, other than an officer or employee
of the ceding insurer, firm, association, or corporation, who solicits,
negotiates, or places reinsurance cessions or retrocessions on behalf of a
ceding insurer without the authority or power to bind reinsurance on behalf
of the insurer.
"Intermediary manager" means any person, firm, association, or
corporation that has authority to bind or manages all or part of the
assumed reinsurance business of a reinsurer (including the management of a
separate division, department, or underwriting office) and acts as an agent
for the reinsurer. However, the following persons shall not be considered
an intermediary manager, with respect to the reinsurer, for the purposes of this Act:
"Reinsurer" means any person, firm, association, or corporation duly
licensed in this State under the applicable provisions of law as an
insurer with the authority to assume reinsurance.
"To be in violation" means that the reinsurance intermediary, insurer, or
reinsurer for whom the reinsurance intermediary was acting failed to
substantially comply with the provisions of this Act.
"Qualified United States financial institution" means an institution that:
(Source: P.A. 87-108.)

(215 ILCS 100/10) (from Ch. 73, par. 1610)
Sec. 10. Licensure.
(a) No person, firm, association, or corporation that maintains an office,
officer, director, agent, or employee, directly or indirectly, in this State
shall act as an intermediary broker unless licensed as an insurance producer
in this State. No person, firm, association, or corporation that does not
maintain an office, officer, director, agent, or employee in this State
shall act as an intermediary broker in this State unless licensed as an
insurance producer in this State, unless licensed as an insurance producer
in another state that has a law substantially similar to this law, or unless
licensed in this State as a nonresident reinsurance intermediary.
(b) No person, firm, association, or corporation shall act as an
intermediary
manager, except in compliance with this subsection, as follows:
(c) The Director may require an intermediary manager subject to subsection (b) to:
(d) The Director may issue a reinsurance intermediary license to any
person, firm, association, or corporation that has complied with the
requirements of this Act. Any license issued to a firm or association will
authorize all the members of the firm or association and any designated
employees to act as reinsurance intermediaries under the license. All of
those persons shall be named in the application and any supplements
thereto. Any license issued to a corporation shall authorize all of the
officers and any designated employees and directors thereof to act as
reinsurance intermediaries on behalf of the corporation, and all of those
persons shall be named in the application and any supplements thereto.
If the applicant for a reinsurance intermediary license is a nonresident,
the applicant, as a condition precedent to receiving or holding a license,
shall designate the Director as agent for service of process in the manner,
and with the same legal effect, provided in the Illinois Insurance Code for designation of
service of process upon unauthorized insurers. The applicant shall also
furnish the Director with the name and address of a resident of this State
upon whom notices or orders of the Director or process affecting the
nonresident reinsurance intermediary may be served. The licensee shall
promptly notify the Director in writing of every change in its designated
agent for service of process. The change shall not become effective until
acknowledged by the Director.
(e) The Director may refuse to issue a reinsurance intermediary license
if, in his judgment, the applicant, any one named on the application or any
member, principal, officer, or director of the applicant is not
trustworthy; or that any controlling person of the applicant is not
trustworthy to act as a reinsurance intermediary; or any of the foregoing
has given cause for revocation or suspension of that kind of license or
has failed to comply with any prerequisite for the issuance of the license.
Upon written request therefor, the Director will furnish a summary of the
basis for refusal to issue a license, which document shall be privileged
and not subject to the Freedom of Information Act.
(f) Licensed attorneys at law of this State, when acting in their
professional capacity as an attorney, shall be exempt from this Section.
(g) All licenses issued under this Act shall terminate 24 months following
the date of issuance and may be renewed by providing to the Director
satisfactory evidence that the reinsurance intermediary continues to meet the
requirements of this Section and upon payment of the fees specified in Section
408 of the Illinois Insurance Code.

(Source: P.A. 100-201, eff. 8-18-17.)

(215 ILCS 100/15) (from Ch. 73, par. 1615)
Sec. 15.
Required contract provisions; reinsurance intermediary brokers.
Transactions between an intermediary broker and the insurer it represents
in that capacity shall be entered into only under a written contract,
specifying the responsibilities of each party. The contract shall, at a
minimum, contain provisions that:
(Source: P.A. 87-108.)

(215 ILCS 100/20) (from Ch. 73, par. 1620)
Sec. 20. Books and records; reinsurance intermediary brokers.
(a) For at least 10 years after expiration of each contract of
reinsurance transacted by it, the intermediary broker shall keep a complete
record for each transaction showing:
(b) The insurer shall have access and the right to copy and audit all
accounts and records maintained by the intermediary broker related to its
business in a form
usable by the insurer.

(Source: P.A. 98-756, eff. 7-16-14.)

(215 ILCS 100/25) (from Ch. 73, par. 1625)
Sec. 25.

Duties of insurers utilizing the services of a reinsurance
intermediary broker.
(a) An insurer shall not engage the services of any person, firm,
association, or corporation to act as an intermediary broker on its behalf
unless the person is licensed as required by Section 10 of this Act.
(b) An insurer may not employ an individual who is employed by an
intermediary broker with which it transacts business, unless the
intermediary broker is under common control with the insurer and subject to
the Holding Company Act.
(c) The insurer shall annually obtain a copy of statements of the
financial condition of each intermediary broker with which it transacts business.

(Source: P.A. 87-108.)

(215 ILCS 100/30) (from Ch. 73, par. 1630)
Sec. 30.
Required contract provisions; reinsurance intermediary managers.
Transactions between an intermediary manager and the reinsurer it
represents in that capacity shall only be entered into under a written
contract specifying the responsibilities of each party that
shall be approved by the reinsurer's board of directors. At least 30 days
before the reinsurer assumes or cedes business through the producer, a true
copy of the approved contracts shall be filed with the Director for
approval. The contract shall, at a minimum, contain provisions that:
(Source: P.A. 87-108.)

(215 ILCS 100/35) (from Ch. 73, par. 1635)
Sec. 35.
Books and records; reinsurance intermediary managers.
(a) For at least 10 years after expiration of each contract of
reinsurance transacted by it, the intermediary manager shall keep a complete
record for each transaction showing:
(b) The reinsurer will have access and the right to copy all accounts
and records maintained by the intermediary manager related to its business
in a form usable by the reinsurer.

(Source: P.A. 87-108.)

(215 ILCS 100/40) (from Ch. 73, par. 1640)
Sec. 40.
Prohibited acts.
An intermediary manager shall not:
(Source: P.A. 87-108.)

(215 ILCS 100/45) (from Ch. 73, par. 1645)
Sec. 45. Duties of reinsurers utilizing the services of a reinsurance
intermediary manager.
(a) A reinsurer shall not engage the services of any person, firm,
association, or corporation to act as an intermediary manager on its behalf
unless the person is licensed as required by Section 10.
(b) The reinsurer shall annually obtain a copy of statements, audited by
an independent certified public accountant in a form acceptable to the
Director, of the financial condition of each intermediary manager that the
reinsurer has contracted.
(c) If an intermediary manager establishes loss reserves, the reinsurer
shall annually obtain the opinion of an actuary attesting to the adequacy
of loss reserves established for losses incurred and outstanding on
business produced by the intermediary manager. This opinion shall be in
addition to any other required loss reserve certification.
(d) Binding authority for all retrocessional contracts or participation
in reinsurance syndicates shall rest with an officer of the reinsurer who
shall not be affiliated with the intermediary manager.
(e) Within 30 days of termination of a contract with an intermediary
manager, the reinsurer shall provide written notification of termination to the Director.
(f) A reinsurer shall not appoint to its board of directors, any
officer, director, employee, controlling shareholder, or subproducer of its
intermediary manager. This subsection shall not apply to relationships
governed by the Holding Company Act.

(Source: P.A. 98-756, eff. 7-16-14.)

(215 ILCS 100/50) (from Ch. 73, par. 1650)
Sec. 50.
Examination authority.
(a) A reinsurance intermediary shall be subject to examination by the
Director. The Director shall have access to all books, bank accounts, and
records of the reinsurance intermediary in a form usable to the Director.
(b) An intermediary manager may be examined as if it were the reinsurer.

(Source: P.A. 87-108.)

(215 ILCS 100/55) (from Ch. 73, par. 1655)
Sec. 55.
Penalties and liabilities.
(a) If the Director determines that a reinsurance intermediary has not
materially complied with this Act or any regulation or
Order promulgated hereunder, after notice and opportunity to be heard, the
Director may order a penalty in an amount not exceeding $100,000 for each
separate violation and may order the revocation or suspension of the
reinsurance intermediary's license. If it is found that because of the
material noncompliance the insurer or reinsurer has suffered any loss or
damage, the Director may maintain a civil action brought by or on behalf of the
reinsurer or insurer and its policyholders and creditors for recovery of
compensatory damages for the benefit of the reinsurer or insurer and its
policyholders and creditors or seek other appropriate relief.

This subsection (a) shall not be construed to prevent any other person from
taking civil action against a reinsurance intermediary.
(b) If an Order of Rehabilitation or Liquidation of the
insurer is entered
under Article XIII of the Illinois Insurance Code and the receiver appointed
under that Order determines that the reinsurance intermediary or any other
person has not materially complied with this Act or any regulation or Order
promulgated hereunder and the insurer has suffered any loss or damage
therefrom,
the receiver may maintain a civil action for recovery of damages or other
appropriate sanctions for the benefit of the insurer.
(c) The decision, determination, or order of the Director under
subsection (a) of this Section shall be subject to judicial review under
the Administrative Review Law.
(d) Nothing contained in this Act shall affect the right of the
Director
to impose any other penalties provided in the Illinois Insurance Code.
(e) Nothing contained in this Act is intended to or shall in any
manner
limit or restrict the rights of policyholders, claimants, creditors, or
other third parties or confer any rights to those persons.

(Source: P.A. 93-32, eff. 7-1-03.)

(215 ILCS 100/60) (from Ch. 73, par. 1660)
Sec. 60.
Rules and regulations.
The Director may adopt reasonable
rules and regulations for the implementation and administration of the
provisions of this Act.

(Source: P.A. 87-108.)