(215 ILCS 5/275)
(from Ch. 73, par. 887)
Contingent liability of members.
(1) All insurance contracts issued or delivered in this State by any
company subject to this Article shall
provide, in addition to the regular contributions, for the payment currently
of additional contributions to the extent needed to pay its share of claims
and expenses and to maintain the tabular, loss, unearned premium and other
reserves and liabilities required by this Code,
or requiring such additional amount to be charged as an indebtedness, at a
rate of interest specified in the contract, not exceeding the tabular or
reserves on the contract and providing for terminating the contract
whenever the total indebtedness thereon shall equal such tabular or unearned
and on such contract no liability shall be charged in any valuation for any
deficiency in future contribution as long as such payments are actually
collected or such charges are actually made; provided that no such
additional contribution shall be enforced against any holder of an insurance
contract except upon due notice to such holder.
(2) Every such holder shall have the option of paying such additional
contribution in cash or permitting the contribution to be charged as an
indebtedness against the tabular or unearned premium reserves as above
provided, but if no
option selection is made within thirty days after the mailing of such
notice the second option shall become applicable and said additional
contributions shall become a lien upon said contract. All such insurance
contracts and notices of such additional contributions shall contain a
statement of the provision of this subsection.
(3) Each assessable insurance contract issued or delivered in this State
after the effective date of this amendatory Act of 1983 by any company
subject to this Article shall have the following statement printed in bold
face type on the face of the policy: "This is an assessable policy".
(Source: P.A. 83-584.)