Illinois Compiled Statutes 215 ILCS 5/123C-11 – Grounds and procedures for suspension or revocation of certificate of authority
Current as of: 2024 | Check for updates
|
Other versions
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:
(1) insolvency or impairment of required capital or
(1) insolvency or impairment of required capital or
|
surplus to policy holders;
|
(2) failure to meet the requirements of Sections
|
123C-3 or 123C-4;
|
(3) refusal or failure to submit an annual report, as
|
required by Section 123C-9, or any other report or statement required by law or by lawful order of the Director;
|
(4) failure to comply with the provisions of its own
|
charter or bylaws (or, in the case of an industrial insured captive, with the provisions of the investment policy set forth in its plan of operation as approved from time to time by the Director);
|
(5) failure to submit to examination or any legal
|
obligation relative thereto, as required by Section 123C-10;
|
(6) refusal or failure to pay expenses, charges, and
|
taxes as required by Sections 408, 409, 123C-10, and 123C-17;
|
(7) use of methods that, although not otherwise
|
specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or
|
(8) failure otherwise to comply with the laws of this
|
State.
|
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.
Terms Used In Illinois Compiled Statutes 215 ILCS 5/123C-11
- 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. See Illinois Compiled Statutes 215 ILCS 5/123C-1
- Director: means the Director of the Department of Insurance. See Illinois Compiled Statutes 215 ILCS 5/123C-1
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- 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:
(1) has available to it advice with respect to the
purchase of insurance through the use of the services of a full-time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant; and |
(2) pays aggregate annual premiums in excess of
$100,000 for insurance on all risks except for life, accident and health; and |
(3) either (i) has at least 25 full-time employees,
or (ii) has gross assets in excess of $3,000,000, or (iii) has annual gross revenues in excess of $5,000,000. See Illinois Compiled Statutes 215 ILCS 5/123C-1 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. |