215 ILCS 5/123C-9

(215 ILCS 5/123C-9) (from Ch. 73, par. 735C-9)

(Section scheduled to be repealed on January 1, 2027)

Sec. 123C-9. Reports, statements and mandatory reserves.

A.  Captive insurance companies shall not be required
to make any annual report except as provided in this
Article.

B.  (1) On or before March 1 of each year, each captive
insurance company shall submit to the Director a report
of its financial condition, verified by oath of 2
of its executive officers and including (i) a balance
sheet reporting assets, liabilities, capital and surplus,
(ii) a statement of gain or loss from operations, (iii)
a statement of changes in financial position, (iv) a
statement of changes in capital and surplus, (v)
in the case of industrial insured captive insurance
companies, an analysis of loss reserve development,
information on risks ceded and assumed under reinsurance
agreements, on forms prescribed by the Director, and
a schedule of its invested assets on forms prescribed
by the Director, and (vi) a statement of actuarial opinion by a qualified independent actuary concerning the reasonableness of the captive insurance company's loss and loss adjustment expense reserves in such form and of such content as specified in the National Association of Insurance Commissioners Annual Statement Instructions: Property and Casualty.

(2) In addition, prior to March 1 of each year, each
association captive insurance company shall submit to
the Director such additional data or information, which
the Director may from time to time require, on a form
specified by the Director.

(3) On or before June 1 of each year, each captive insurance company shall submit to the Director a report of its financial condition at last year's end with an independent certified public accountant's opinion of the company's financial condition.

(4) Unless the Director permits otherwise, the reports
of financial condition referred to in paragraphs (1)
and (3) of this subsection B are to be prepared in accordance with the Accounting
Practices and Procedures Manual adopted by the National
Association of Insurance Commissioners.  The Director
shall have authority to extend the time for filing any
report or statement by any company for reasons which
he considers good and sufficient.

C. In addition, any captive insurance company may be
required by the Director, when he considers such action
to be necessary and appropriate for the protection of
policyholders, creditors, shareholders or claimants,
to file, within 60 days after mailing to the company
of a notice that such is required, a supplemental summary
statement as of the last day of any calendar month occurring
during the 100 days next preceding the mailing of such
notice designated by him on forms prescribed and furnished
by the Director.  No company shall be required to file
more than 4 supplemental summary statements during any
consecutive 12 month period.

D. Every captive insurance company shall, at all times,
maintain reserves in an amount estimated in the aggregate
to provide for the payment of all losses and claims
incurred, whether reported or unreported, which are
unpaid and for which such company may be liable, and
to provide for the expenses of adjustment or settlement
of such losses and claims.  The aggregate reserves shall
be reduced by reinsurance ceded which meets the requirements
of Section 123C-13.
For the purpose of such reserves, the company shall keep a complete and
itemized record showing all losses and claims on which it has received
notice, including all notices received by it of the occurrence of any event
which may result in a loss. Such record shall be opened in chronological
receipt order, with each notice of loss or claim identified by appropriate
number or coding.

E. Every captive insurance company shall maintain an
unearned premium reserve on all policies in force which
reserve shall be charged as a liability.  The portions
of the gross premiums in force, after deducting reinsurance
qualifying under Section 123C-13, which shall be held
as a premium reserve, shall never be less in the aggregate
than the company's actual liability to all its insureds
for the return of gross unearned premiums.  In the calculation
of the company's actual liability to all its insureds,
the reserve shall be computed pursuant to the method
commonly referred to as the monthly pro rata method;
provided, however, that the Director may require that
such reserve shall be equal to the unearned portions
of the gross premiums in force, after deducting reinsurance
qualifying under Section 123C-13, in which case the reserve shall
be computed on each respective risk from the date of
the issuance of the policy.

E-5.  A captive insurance company may make a written application to the Director for filing its annual report required under this Section on a fiscal year's end.  If an alternative filing date is granted, the company shall file:

(1) the annual report, including a statement of