(215 ILCS 5/278) (from Ch. 73, par. 890)
Sec. 278.
Reserve
deposits. A company subject to this Article shall from time to
time
deposit
with the Director, securities of the kind authorized for investment by a
company transacting the kind of business enumerated in Class 1 of Section
4, in such amount that the market value of the securities deposited
shall, at all times, be at least equal to the total of the reserved
required by this Code on the life contracts issued by said company until
there shall be on deposit at least $200,000. Thereafter, while the reserves
on all such contracts are maintained, further deposits shall be optional
with the company. Each separate deposit, except in the case of newly
organized companies during the first 2 years of existence, shall be in the
sum of not less than $1,000 and such securities may be deposited at any
time. Any such company may at any time, withdraw any of such securities in
excess of the minimum herein required and may from time to time exchange
any of such securities by depositing others of the kind in which the
company is authorized to invest, of equal value. So long as the said
company shall remain solvent and maintain its deposits as herein required,
it may collect the interest or other income of the securities deposited as
the same may accrue. All such deposits shall be held by the Director in
trust for the benefit of the holders of life contracts upon which contracts
reserves at least equal to the minimum reserves prescribed by Section 281
are required.
The Director may release the required deposit of securities
upon receipt of
an order of a court having proper jurisdiction or
upon: (i)
certification by the company that it has no outstanding life contracts on which
reserves are required, life insurance
policyholders, or policy obligations in effect and no plans to engage in the
business of insurance; (ii) receipt of a lawful resolution of the
company's board of directors effecting the surrender of
its articles of incorporation for
administrative dissolution by the Director; and (iii) receipt of the name and
forwarding address for each of the final officers and directors of the
company,
together with a plan of dissolution approved by the Director.
(Source: P.A. 92-75, eff. 7-12-01.)
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