Illinois Compiled Statutes 215 ILCS 5/126.20 – Additional investment authority
Current as of: 2024 | Check for updates
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A. Solely for the purpose of acquiring investments that exceed the quantitative limitations of Sections 126.10 through 126.17, an insurer may acquire under this subsection an investment, or engage in investment practices described in Section 126.16, but an insurer shall not acquire an investment, or engage in investment practices described in Section 126.16, under this subsection if, as a result of and after giving effect to the transaction:
(1) The aggregate amount of investments then held by
(1) The aggregate amount of investments then held by
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an insurer under this subsection would exceed 3% of its admitted assets; or
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(2) The aggregate amount of investments as to one
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limitation in Sections 126.10 through 126.17 then held by the insurer under this subsection would exceed 1% of its admitted assets.
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B. (1) In addition to the authority provided under
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subsection A of this Section, an insurer may acquire under this subsection an investment of any kind, or engage in investment practices described in Section 126.16, that are not specifically prohibited by this Article, without regard to the categories, conditions, standards or other limitations of Sections 126.10 through 126.17 if, as a result of and after giving effect to the transaction, the aggregate amount of investments then held under this subsection would not exceed the lesser of:
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(a) 10% of its admitted assets; or
(b) 75% of its capital and surplus.
(2) However, an insurer shall not acquire any
Terms Used In Illinois Compiled Statutes 215 ILCS 5/126.20
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
(b) 75% of its capital and surplus.
(2) However, an insurer shall not acquire any
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investment or engage in any investment practice under this subsection if, as a result of and after giving effect to the transaction, the aggregate amount of all investments in any one person then held by the insurer under this subsection would exceed 3% of its admitted assets.
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C. In addition to the investments acquired under subsections A and B of this Section, an insurer may acquire under this subsection an investment of any kind, or engage in investment practices described in Section 126.16, that are not specifically prohibited by this Article without regard to any limitations of Sections 126.10 through 126.17 if:
(1) The Director grants prior approval;
(2) The insurer demonstrates that its investments are
(1) The Director grants prior approval;
(2) The insurer demonstrates that its investments are
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being made in a prudent manner and that the additional amounts will be invested in a prudent manner; and
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(3) As a result of and after giving effect to the
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transaction the aggregate amount of investments then held by the insurer under this subsection does not exceed the greater of:
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(a) 25% of its capital and surplus; or
(b) 100% of capital and surplus less 10% of its
(b) 100% of capital and surplus less 10% of its
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admitted assets.
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D. Under this Section, an insurer shall not acquire or engage in an investment practice prohibited under Section 126.5 or an investment that is a derivative transaction.