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Terms Used In Illinois Compiled Statutes 215 ILCS 5/123B-6

  • Insurance: means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of Illinois. See Illinois Compiled Statutes 215 ILCS 5/123B-2
  • Risk retention group: means any corporation or other limited liability association:
             (a) whose primary activity consists of assuming and
    
spreading all, or any portion, of the liability exposure of its group members;
        (b) which is organized for the primary purpose of
    
conducting the activity described under paragraph (a) of this subsection (11);
        (c) which:
             (i) is organized and licensed as a liability
        
insurance company and authorized to engage in the business of insurance under the laws of any state; or
            (ii) before January 1, 1985 was organized or
        
licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before such date, had certified to the insurance commissioner of at least one state that it satisfied the capitalization requirements of such state, except that any such group shall be considered to be a risk retention group only if it has been engaged in business continuously since such date and only for the purposes of continuing to provide insurance to cover product liability or completed operations liability (as such terms were defined in the Product Liability Risk Retention Act of 1981 before the date of the enactment of the Risk Retention Act of 1986);
        (d) which does not exclude any person from membership
    
in the group solely to provide for members of such a group a competitive advantage over such a person;
        (e) which:
             (i) has as its owners (directly or indirectly)
        
only persons who comprise the membership of the risk retention group and who are provided insurance by such group; or
            (ii) has as its sole owner (directly or
        
indirectly) an organization which:
                (I) has as its members only persons who
            
comprise the membership of the risk retention group; and
                (II) has as its owners only persons who
            
comprise the membership of the risk retention group and who are provided insurance by such group;
        (f) whose members are engaged in businesses or
    
activities similar or related with respect to the liability of which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations;
        (g) whose activities do not include the provision of
    
insurance other than:
            (i) liability insurance for assuming and
        
spreading all or any portion of the liability of its group members; and
            (ii) reinsurance with respect to the liability of
        
any other risk retention group (or any members of such other group) which is engaged in businesses or activities so that such group or member meets the requirement described in paragraph (f) of this subsection (11) for membership in the risk retention group which provides such reinsurance; and
        (h) the name of which includes the phrase "Risk
    
     Notwithstanding any contrary provision of this Code, a policy of insurance issued to a risk retention group or any member of that group shall not be required to be countersigned.