Illinois Compiled Statutes 215 ILCS 5/126.5 – Prohibited investments
Current as of: 2024 | Check for updates
|
Other versions
An insurer shall not, directly or indirectly:
A. Invest in an obligation or security or make a guarantee for the benefit of or in favor of an officer or director of the insurer, except as provided in Section 126.6;
B. Invest in an obligation or security, make a guarantee for the benefit of or in favor of, or make other investments in a business entity of which 10% or more of the voting securities or equity interests are owned directly or indirectly by or for the benefit of one or more officers or directors of the insurer, except pursuant to a transaction entered into in compliance with Section 131.20a of this Code or provided in Section 126.6;
C. Engage on its own behalf or through one or more affiliates in a transaction or series of transactions designed to evade the prohibitions of this Article;
D. (1) Invest in a partnership as a general partner,
A. Invest in an obligation or security or make a guarantee for the benefit of or in favor of an officer or director of the insurer, except as provided in Section 126.6;
Terms Used In Illinois Compiled Statutes 215 ILCS 5/126.5
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
B. Invest in an obligation or security, make a guarantee for the benefit of or in favor of, or make other investments in a business entity of which 10% or more of the voting securities or equity interests are owned directly or indirectly by or for the benefit of one or more officers or directors of the insurer, except pursuant to a transaction entered into in compliance with Section 131.20a of this Code or provided in Section 126.6;
C. Engage on its own behalf or through one or more affiliates in a transaction or series of transactions designed to evade the prohibitions of this Article;
D. (1) Invest in a partnership as a general partner,
|
except that an insurer may make an investment as a general partner:
|
(a) If all other partners in the partnership are
|
subsidiaries of the insurer or other insurance company affiliates of the insurer;
|
(b) For the purpose of:
(i) Meeting cash calls committed to prior to
(i) Meeting cash calls committed to prior to
|
the effective date of this amendatory Act of 1997;
|
(ii) Completing those specific projects or
|
activities of the partnership in which the insurer was a general partner as of the effective date of this amendatory Act of 1997 that had been undertaken as of that date; or
|
(iii) Making capital improvements to property
|
owned by the partnership on the effective date of this amendatory Act of 1997 if the insurer was a general partner as of that date; or
|
(c) In accordance with Section 126.3C;
(2) This subsection shall not prohibit a subsidiary
(2) This subsection shall not prohibit a subsidiary
|
or other affiliate of the insurer from becoming a general partner; or
|
E. Invest in or lend its funds upon the security of shares of its own stock, except as authorized by other provisions of this Code. However, no such shares shall be admitted assets of the insurer.