A. A purchasing group may not purchase insurance from a risk retention group that is not organized in a state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed surplus line producer acting pursuant to the surplus lines laws and regulations of such state.
     B. No purchasing group may offer insurance policy coverage prohibited by this Code or declared unlawful by the Illinois Supreme Court.
lawyer at desk

Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Illinois Compiled Statutes 215 ILCS 5/123B-9

  • individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See Illinois Compiled Statutes 5 ILCS 70/1.36
  • 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
  • Liability: means :
             (a) 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:
            (i) any business (whether for profit or not for
        
profit), trade, product, services (including professional services), premises, or operations; or
            (ii) any activity of any state or local
        
government, or any agency or political subdivision thereof; but
        (b) does not include personal risk liability and an
    
employer's liability with respect to its employees other than legal liability under the Federal Employers' Liability Act (45 U. See Illinois Compiled Statutes 215 ILCS 5/123B-2
  • Purchasing group: means any group which:
             (a) has as one of its purposes the purchase of
    •     
    liability insurance on a group basis;
            (b) purchases such insurance only for its group
        
    members and only to cover their similar or related liability exposure, as described in paragraph (c) of this subsection (10);
            (c) is composed of members whose businesses or
        
    activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and
            (d) is domiciled in any State. 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
        
    Retention Group". See Illinois Compiled Statutes 215 ILCS 5/123B-2
  • State: means any state of the United States or the District of Columbia. See Illinois Compiled Statutes 215 ILCS 5/123B-2

    •      C. A purchasing group which obtains liability insurance from an insurer not admitted in this State or a risk retention group shall inform each of the members of such group which has a risk resident or located in this State that such risk is not protected by an insurance insolvency guaranty fund in this State, and that such risk retention group or such insurer may not be subject to all insurance laws and regulations of this State.
         D. No purchasing group may purchase insurance providing for a deductible or an aggregate limit unless the deductible or aggregate limit applies separately to each individual member of the purchasing group.
      Previous section
    Next section  
     Article VIIB Contents

    LawServer is used by

    New York Times, IRS, USDA, UCLA, DOT