Illinois Compiled Statutes 215 ILCS 5/126.11 – Rated credit instruments
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Subject to the limitations of subsection F of this Section, an insurer may acquire rated credit instruments:
A. Subject to the limitations of Section 126.10B, but not to the limitations of Section 126.10A, except for that of subsection (4) of Section 126.10A, an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:
(1) The United States; or
(2) A government sponsored enterprise of the United
A. Subject to the limitations of Section 126.10B, but not to the limitations of Section 126.10A, except for that of subsection (4) of Section 126.10A, an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:
Terms Used In Illinois Compiled Statutes 215 ILCS 5/126.11
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
- United States: may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
(1) The United States; or
(2) A government sponsored enterprise of the United
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States, if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.
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B. (1) Subject to the limitations of Section 126.10B,
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but not to the limitations of Section 126.10A, an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:
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(a) Canada; or
(b) A government sponsored enterprise of Canada,
(b) A government sponsored enterprise of Canada,
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if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada;
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(2) However, an insurer shall not acquire an
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instrument under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this subsection would exceed 40% of its admitted assets.
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C. (1) Subject to the limitations of Section 126.10B,
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but not to the limitations of Section 126.10A, an insurer may acquire rated credit instruments, excluding asset-backed securities:
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(a) Issued by a government money market mutual
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fund, a class one money market mutual fund or a class one bond mutual fund;
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(b) Issued, assumed, guaranteed, or insured by a
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government sponsored enterprise of the United States other than those eligible under subsection A of this Section;
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(c) Issued, assumed, guaranteed, or insured by a
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state, if the instruments are general obligations of the state; or
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(d) Issued by a multilateral development bank;
(2) However, an insurer shall not acquire an
(2) However, an insurer shall not acquire an
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instrument of any one fund, any one enterprise or entity or any one state under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer in any one fund, enterprise, entity, or state under this subsection would exceed 10% of its admitted assets.
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D. Subject to the limitations of Section 126.10, an insurer may acquire preferred stocks that are not foreign investments and that meet the requirements of rated credit instruments if, as a result of and after giving effect to the investment:
(1) The aggregate amount of preferred stocks then
(1) The aggregate amount of preferred stocks then
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held by the insurer under this subsection does not exceed 33 1/3% of its admitted assets; and
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(2) The aggregate amount of preferred stocks then
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held by the insurer under this subsection which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 15% of its admitted assets.
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E. Subject to the limitations of Section 126.10, in addition to those investments eligible under subsections A, B, C and D of this Section, an insurer may acquire rated credit instruments that are not foreign investments.
F. An insurer shall not acquire special rated credit instruments under this Section if, as a result of and after giving effect to the investment, the aggregate amount of special rated credit instruments then held by the insurer would exceed 5% of its admitted assets. The Director may, by rule, identify certain special rated credit instruments that will be exempt from the limitation imposed by this subsection.
F. An insurer shall not acquire special rated credit instruments under this Section if, as a result of and after giving effect to the investment, the aggregate amount of special rated credit instruments then held by the insurer would exceed 5% of its admitted assets. The Director may, by rule, identify certain special rated credit instruments that will be exempt from the limitation imposed by this subsection.