Section 913.70  Equity Interest of Certain Persons

The incorporators, organizers, promoters or other persons similarly situated of any domestic company organized after the effective date of this Rule shall, prior to the issuance of a permit for a public sale by the Director pursuant to Section 20 of the Illinois Insurance Code (Ill. Rev. Stat. 1981, ch. 73, par. 632), deposit in escrow in a bank or trust company in this State pursuant to an agreement, a sum of money sufficient to purchase at the public offering price a total of not less than 15% of said shares and shall further provide that the total shares so purchased shall likewise be held in escrow and not in any manner disposed of for a period of time not less than three (3) years from and after the date that the company receives a Certificate of Authority pursuant to Section 24 of the Illinois Insurance Code (Ill. Rev. Stat. 1981, ch. 73, par. 636).  The agreement shall also provide that the incorporators, organizers, promoters and like parties understand their obligations as such and agree to faithfully perform the same and also that they understand, in the event of a later public sale at a higher offering price per share, that they may be required to deposit all or part of their own shares under an escrow agreement pursuant to Section 913.80 of this Part.

(Source:  Amended at 7 Ill. Reg. 6946, effective May 18, 1983)