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INSURANCE215 ILCS 5/179E-30
(215 ILCS 5/) Illinois Insurance Code.
(215 ILCS 5/179E-30)
Approved transactions and operation of SPRVs.
(a) SPRVs authorized under this Article may at any given time enter into and
effectuate SPRV contracts with one or more ceding insurers, provided that the
contracts obligate the SPRV to indemnify the ceding insurer for losses and that
obligations of the SPRV under the SPRV contracts are securitized in full
through a single
SPRV insurance securitization and are fully funded and secured with assets held
in trust in
accordance with the requirements of this Article pursuant to agreements
this Article and invested in a manner that meets the criteria set forth in
Section 179E-85 of
(b) An SPRV may enter into such agreements with third parties and conduct
such business as is necessary to fulfill its obligations and administrative
incident to the insurance securitization and the SPRV contract. The agreements
may include entering into swap agreements or other transactions that have the
objective of leveling timing differences in funding up-front or ongoing
expenses or managing credit or interest rate risk of the investments
in trust to
assure that the assets held in trust will be sufficient to satisfy
(i) payment or
repayment of the securities issued pursuant to an insurance securitization
transaction or (ii) the obligations of the SPRV under the SPRV contract. In
its function, the SPRV shall adhere to the following requirements and shall, to
extent of its powers, ensure that contracts obligating other parties to perform
functions incident to its operations are substantively and materially
the following requirements and guidelines:
(1) An SPRV shall have a distinct name, which shall
include the designation "SPRV". The name of the SPRV may not be deceptively similar to, or likely to be confused with or mistaken for, any other existing business name registered in this State.
(2) Unless otherwise provided in the plan of
operation, the principal place of business and office of any SPRV organized under this Article must be located in this State.
(3) The assets of an SPRV must be preserved and
administered by or on behalf of the SPRV to satisfy the liabilities and obligations of the SPRV incident to the insurance securitization and other related agreements, including the SPRV contract.
(4) Assets of the SPRV that are pledged to secure
obligations of the SPRV to a ceding insurer under an SPRV contract must be held in trust and administered by a qualified U.S. financial institution. The qualified U.S. financial institution may not control, be controlled by, or be under common control with, the SPRV or the ceding insurers.
(5) The agreement governing any trust must create
one or more trust accounts into which all pledged assets must be deposited and held until distributed in accordance with the trust agreement. The pledged assets must be held by the trustee at the trustee's office in the United States and may be held in certificated or electronic form.
(6) The provisions for withdrawal by ceding insurers
of assets from the trust shall be clean and unconditional, subject only to the following requirements:
(A) the ceding insurer shall have the right to
withdraw assets from the trust account at any time, without notice to the SPRV, subject only to written notice to the trustee from the ceding insurer that funds in the amount requested are due and payable by the SPRV;
(B) no other statement or document need be
presented in order to withdraw assets, except the ceding insurer may be required to acknowledge receipt of withdrawn assets;
(C) the trust agreement must indicate that it is
not subject to any conditions or qualifications outside of the trust agreement;
(D) the trust agreement may not contain
references to any other agreements or documents; and
(E) no reference may be made to the fact that the
funds may represent reinsurance premiums or that the funds have been deposited for any specific purpose.
(7) The trust agreement must be established for the
sole use and benefit of the ceding insurer at least to the full extent of the SPRV's obligations to the ceding insurer under the SPRV contract. If there is more than one ceding insurer, a separate trust agreement must be entered with each ceding insurer and a separate trust account must be maintained for each ceding insurer.
(8) The trust agreement must provide for the trustee
(A) receive assets and hold all assets in a safe
(B) determine that all assets are in a form so
that the ceding insurer or the trustee, upon direction by the ceding insurer may, whenever necessary, negotiate any the assets, without consent or signature from the SPRV or any other person or entity;
(C) furnish to the SPRV, the Director, and the
ceding insurer a statement of all assets in the trust account reported at fair value upon its inception and at intervals no less frequent than the end of each calendar quarter;
(D) notify the SPRV and the ceding insurer,
within 10 days, of any deposits to or withdrawals from the trust account;
(E) upon written demand of the ceding insurer,
immediately take any and all steps necessary to transfer absolutely and unequivocally all right, title, and interest in the assets held in the trust account to the ceding insurer and deliver physical custody of the assets to the ceding insurer; and
(F) allow no substitutions or withdrawals of
assets from the trust account, except on written instructions from the ceding insurer.
(9) The trust agreement must provide that at least 30
days, but not more than 45 days, before termination of the trust account, written notification of termination shall be delivered by the trustee to the ceding insurer.
(10) The trust agreement may be made subject to and
governed by the laws of any state, in addition to the requirements for the trust as provided in this Article, provided that the state is disclosed in the plan of operation filed with and approved, or deemed approved, by the Director under Section 179E-20.
(11) The trust agreement must prohibit invasion of
the trust corpus for the purpose of paying compensation to, or reimbursing the expenses of, the trustee.
(12) The trust agreement must provide that the
trustee shall be liable for its own negligence, willful misconduct, or lack of good faith.
(13) Notwithstanding the provisions of items (6)(C),
(6)(D), and (6)(E) of this subsection or item (14)(E) of this subsection, when a trust agreement is established in conjunction with an SPRV contract, then the trust agreement may provide that the ceding insurer must undertake to use and apply any amounts drawn upon the trust account, without diminution because of the insolvency of the ceding insurer or the SPRV, for the following purposes:
(A) to pay or reimburse the ceding insurer
amounts due to the ceding insurer under the specific SPRV contract including, but not limited to, unearned premiums due to the ceding insurer, if not otherwise paid by the SPRV in accordance with the terms of the agreement; or
(B) when the ceding insurer has received
notification of termination of the trust account, and when the SPRV's entire "obligations" under the specific SPRV contract remain unliquidated and undischarged 10 days prior to the termination date, to withdraw amounts equal to those obligations and deposit those amounts in a separate account, in the name of the ceding insurer, in any qualified U.S. financial institution, apart from its general assets, in trust for those uses and purposes specified in item (13)(A) of this subsection as may remain executory after the withdrawal and for any period after the termination date. "Obligations" within the meaning of this subsection may, without duplication, include:
(i) losses and loss expenses paid by the
ceding insurer, but not recovered from the SPRV;
(ii) reserves for losses reported and
(iii) reserves for losses incurred but not
(iv) reserves for loss expenses;
(v) reserves for unearned premiums; and
(vi) any other amounts that, together with
(iv), represent the aggregate limit remaining under the SPRV contract if the period of coverage or the agreed upon period of loss development has yet to expire.
The provisions to be included in the trust agreement pursuant to this item
(13) may, in lieu thereof, be included in the underlying SPRV contract.
(14) An SPRV contract
must contain provisions
(A) require the SPRV to enter into a trust
agreement specifying what recoverables or reserves, or both, the agreement is to cover and to establish a trust account for the benefit of the ceding insurer;
(B) stipulate that assets deposited in the trust
account must be valued according to their current fair value, and may consist only of permitted investments;
(C) require the SPRV, before depositing assets
with the trustee, to execute assignments, endorsements in blank, or transfer legal title to the trustee of all shares, obligations, or any other assets requiring assignments, in order that the ceding insurer, or the trustee upon the direction of the ceding insurer, may whenever necessary negotiate the assets without consent or signature from the SPRV or any other entity;
(D) require that all settlements of account
between the ceding insurer and the SPRV be made in cash or its equivalent; and
(E) stipulate that the SPRV and the ceding
insurer agree that the assets in the trust account, established under the provisions of the SPRV contract, may be withdrawn by the ceding insurer at any time, notwithstanding any other provisions in the SPRV contract, and shall be utilized and applied by the ceding insurer or any successor by operation of law of the ceding insurer, including (subject to the provisions of Section 179E-80), but without further limitation, any liquidator, rehabilitator, receiver, or conservator of the ceding insurer, without diminution because of insolvency on the part of the ceding insurer or the SPRV, only for the following purposes:
(i) to transfer all of those assets into the
trust account for the benefit of the ceding insurer under the terms of the SPRV contract and in compliance with this Article; and
(ii) to pay any other amounts the ceding
insurer claims are due under the SPRV contract.
(15) The SPRV contract entered into by the SPRV may
contain provisions that give the SPRV the right to seek approval from the ceding insurer to withdraw from the trust all or part of the assets contained in it and transfer the assets to the SPRV, provided that:
(A) at the time of the withdrawal, the SPRV
replaces the withdrawn assets with other qualified assets having a fair value equal to the fair value of the assets withdrawn and that meet the requirements of Section 179E-85; and
(B) after the withdrawals and transfer, the fair
value of the assets in trust securing the obligations of the SPRV under the SPRV contract is no less than an amount needed to satisfy the fully funded requirement of the SPRV contract. The ceding insurer shall be the sole judge as to the application of these provisions, but shall not unreasonably nor arbitrarily withhold its approval.
(16) The investors in the SPRV must agree, and be
contractually obligated to so do, that any obligation to repay principal, interest, or dividends on the securities issued by the SPRV shall be reduced upon the occurrence of a triggering event, to the extent that the assets of the SPRV held in trust for the benefit of the ceding insurer are remitted to the ceding insurer in fulfillment of the obligations of the SPRV under the SPRV contract.
(17) Assets held by an SPRV in trust must be valued
(18) The proceeds from the sale of securities by the
SPRV to investors must be deposited with the trustee as contemplated by this Article, and must be held or invested by the trustee in accordance with the requirements of Section 179E-85.
(19) An SPRV organized under this Article, may engage
only in fully funded indemnity triggered SPRV contracts to support in full the ceding insurers' exposures assumed by the SPRV, except that an SPRV may engage in an SPRV contract that is non-indemnity triggered after the Director, in accordance with the authority granted under Section 179E-100 of this Article, adopts rules addressing the treatment of the portion of the risk that is not indemnity based, including accounting, disclosure, risk-based capital treatment, and the manner in which risks associated with the non-indemnity based SPRV contract may be evaluated and managed. An SPRV may not at any time enter into an SPRV contract that is not fully funded, whether indemnity triggered or non-indemnity triggered. Assets of the SPRV may be used to pay interest or other consideration on any outstanding debt or other obligation of the SPRV, and nothing in this item shall be construed or interpreted to prevent an SPRV from entering into a swap agreement or other transaction that has the effect of guaranteeing interest or other consideration.
(20) The contracts or other documentation relating to
an SPRV insurance securitization must contain provisions identifying the SPRV that will enter into the special purpose reinsurance securitization. The contracts or other documentation must clearly disclose that the assets of the SPRV, and only those assets, are available to pay the obligations of that SPRV. Notwithstanding the foregoing, and subject to the provisions of this Article and any other applicable law or rule, the failure to include this language in the contracts or other documentation may not be used as the sole basis by creditors, reinsurers, or other claimants to circumvent the provisions of this Article.
(21) Under no circumstances may an SPRV be authorized
(A) issue or otherwise administer primary
(B) have any obligation to the policyholders or
reinsureds of the ceding insurer;
(C) enter into an SPRV contract with a person
that is not licensed or otherwise authorized to conduct the business of insurance or reinsurance in at least its state or country of domicile; or
(D) assume or retain exposure to insurance or
reinsurance losses for its own account that is not initially fully funded by proceeds from an SPRV securitization that meets the requirements of this Article.
(22) At the cessation of business of an SPRV the
limited certificate of authority granted by the Director shall expire and the SPRV shall no longer be authorized to conduct activities under this Article unless and until a new certificate of authority is issued pursuant to a new filing in accordance with Section 179E-20.
(23) It is unlawful for an SPRV to loan or otherwise
invest, or place any of its assets in custody, trust, or under management with, or to borrow money or receive a loan from (other than by issuance of the securities pursuant to an SPRV insurance securitization), or advance from, anyone convicted of a felony, anyone who is untrustworthy or of known bad character, or anyone convicted of a criminal offense involving the conversion or misappropriation of fiduciary funds or insurance accounts, theft, deceit, fraud, misrepresentation, or corruption.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-35
(215 ILCS 5/179E-35)
(a) An SPRV authorized under this Article shall have the necessary
powers to enter
into contracts and to conduct such other commercial activities as are necessary
to fulfill the
purposes of this Article. Those activities may include, but are not limited
to, entering into
SPRV contracts, issuing securities of the SPRV and complying with the terms
entering into trust, swap, and other agreements as may be necessary to
insurance securitization in compliance with the limitations and pursuant to the
granted to the SPRV under this Article or the plan of operation approved or
approved by the Director.
(b) An SPRV organized or doing business under this Article shall, by the
adopted by the SPRV, in law, be capable of suing or being sued, and may make or
contracts in relation to the business of the SPRV; may have and use a common
seal, and in
the name of the SPRV or by a trustee chosen by the board of directors, shall,
in law, be
capable of taking, purchasing, holding and disposing of real and personal
carrying into effect the purposes of its organization; and may by its board of
trustees, officers, or managers, make by-laws and amendments thereto not
the laws or the constitution of this State or of the United States, which
by-laws shall define
the manner of electing directors, trustees, or managers and officers of the
with their qualifications and duties and fixing their term of office.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-40
(215 ILCS 5/179E-40)
Notwithstanding the provisions
VIII 1/2, the SPRV, the SPRV organizer, and subsequent debt or equity
investors in SPRV
securities shall not be deemed affiliates of the ceding insurer by virtue of
the SPRV contract
between the ceding insurer and the SPRV, the securities of the SPRV, or related
necessary to implement the SPRV insurance securitization.
An SPRV may not be controlled by, may not control, and may not be under common
control with any ceding insurer that is a party to an SPRV contract.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-45
(215 ILCS 5/179E-45)
An SPRV must have minimum initial capital of
less than $5,000. All of the initial capital must be received by the SPRV in
minimum initial capital required and all other funds of the SPRV in excess of
initial capital, including funds held in trust to secure the obligations of the
SPRV pursuant to
its obligations under the SPRV contracts, shall be invested as provided in
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-50
(215 ILCS 5/179E-50)
An SPRV may not declare or pay dividends in any
to its owners unless the dividends do not decrease the capital of the SPRV
and after giving effect to the dividends, the assets of the SPRV, including
assets held in trust
pursuant to the terms of the insurance securitization, are sufficient to meet
Dividends may be declared by the board of directors of the SPRV if the
dividends would not violate the provisions of this Article or jeopardize the
fulfillment of the
obligations of the SPRV or the trustee pursuant to the SPRV insurance
SPRV contract or any related transaction.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-55
(215 ILCS 5/179E-55)
Records and financial reports.
(a) The records of the SPRV must be maintained in this State and must be
for examination by the Department. The Director shall have the right to
records of an SPRV at any time. No later than 5 months after the fiscal year
end of the
SPRV, the SPRV must file with the Director an audit by a certified public
of the financial statements of the SPRV and the trust accounts.
(b) No later than March 1 of each year, an SPRV organized under this Article
file with the Director a statement of operations, including, but not limited
to, a statement of
income, a balance sheet, and a detailed listing of invested assets, including
assets held in trust to secure the SPRV's obligations under the SPRV contract,
for the year
ending the previous December 31. The statements shall be prepared in
Section 136 of this Code on such forms and shall reveal such information as
required by the Director.
(c) An SPRV must keep its books and records in a manner so that its
condition, affairs, and operations can be ascertained, its financial statements
filed with the
Director can be readily verified, and its compliance with the provisions of
this Article can be
determined. An SPRV may cause any or all of the books or records to be
reproduced on film, or stored and reproduced electronically.
(d) All original books, records, documents, accounts, and vouchers, or
of those items, must be preserved and kept available in this State for the
examination and until authority to destroy or otherwise dispose of the records
from the Director. The original records may, however, be kept and maintained
State if, according to a plan adopted by the SPRV's board of directors and
approved by the
Director, it maintains other suitable records.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-60
(215 ILCS 5/179E-60)
Officers and directors.
(a) The directors of an SPRV shall elect such officers they deem necessary
out the purposes of the SPRV pursuant to this Article. The provisions of
Section 10 of this
Code relating to the indemnification of officers and directors apply to and
organized under this Article.
(b) An SPRV authorized to do business in this State must notify the Director
appointment or election of any new officers or directors within 30 days after
appointment or election.
(c) If, after notice and hearing afforded to the officer or director, and
that the officer or director is incompetent or untrustworthy or of known bad
Director shall order the removal of the person. If the SPRV does not comply
with a removal
order within 30 days, the Director may suspend that SPRV's limited certificate
until such time as the order is complied with.
(d) An SPRV may not make loans to any SPRV organizer, owner, director,
officer, manager, or affiliate.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-65
(215 ILCS 5/179E-65)
Fees and taxes.
The Director may charge fees to reimburse
Director for expenses and costs incurred by the Department incident to the
financial statements and review of the plan of operation and to reimburse other
activities of the Director related to the formation and ongoing operation of an
SPRV is not be subject to State premium or other State taxes incidental to the
its business as long as the business remains within the limitations of this
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-70
(215 ILCS 5/179E-70)
An SPRV operating under this Article may be
by a vote of its board of directors at any time after the Director has approved
that action. A
voluntary dissolution may not be effected or allowed until and unless all of
of the SPRV pursuant to the insurance securitization have been fully and
pursuant to their terms. In the case of voluntary dissolution, the disposition
of the affairs of
the SPRV (including the settlement of all outstanding obligations) shall be
made by the
officers or directors of the SPRV, and when the liquidation has been completed
and a final
statement, in acceptable form, filed with and approved, or deemed approved, by
Director, the provisions for voluntary dissolution under the laws of this State
followed to dissolve the SPRV.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-75
(215 ILCS 5/179E-75)
Conservation, rehabilitation, or liquidation.
(a) The provisions of Articles XIII and XIII 1/2 apply to an SPRV, except
extent modified in this Section.
(b) Notwithstanding the provisions of Section 188 of this Code, the Director
apply by petition to the Circuit Court of Cook County, the Circuit Court of
County, or the circuit court of the county in which an SPRV has or last had its
office for an order authorizing the Director to conserve, rehabilitate or
SPRV domiciled in
this State solely on one or more of the following grounds:
(1) there has been embezzlement, wrongful
sequestration, dissipation, or diversion of the assets of the SPRV intended to be used to pay amounts owed to the ceding insurer or the holders of SPRV securities; or
(2) the SPRV is insolvent and the holders of a
majority in outstanding principal amount of each class of SPRV securities request or consent to conservation, rehabilitation, or liquidation under this Article.
The court shall not grant relief under item (1) of this subsection
unless, after notice
and a hearing, the Director, who has the burden of proof, establishes by clear
convincing evidence that the relief should be granted.
(c) Notwithstanding any contrary provision in this Code, the rules
under this Code, or any other applicable law or rule, upon any order of
rehabilitation, or liquidation of the SPRV, the receiver shall be bound to deal
SPRV's assets and liabilities, in accordance with the requirements set forth in
(d) With respect to amounts recoverable under an SPRV contract, the amount
recoverable by the receiver may not be reduced or diminished as a result of the
entry of an
order of conservation, rehabilitation, or liquidation with respect to the
notwithstanding any provisions to the contrary in the contracts or other
governing the SPRV insurance securitization.
(e) Notwithstanding the provisions of Article XIII and XIII 1/2 of this
application, petition, or temporary restraining order or injunction issued
Articles, with respect to a ceding insurer shall not prohibit the transaction
of any business by
an SPRV, including any payment by an SPRV made pursuant to an SPRV security, or
action or proceeding against an SPRV or its assets.
(f) Notwithstanding the provisions of Articles XIII and XIII 1/2 of this
commencement of a summary proceeding or other interim proceeding commenced
formal delinquency proceeding with respect to an SPRV, and any order issued by
thereunder, shall not prohibit:
(1) the payment by an SPRV made pursuant to an SPRV
security or SPRV contract; or
(2) the SPRV from taking any action required to make
(g) Notwithstanding any other provision of Articles XIII and XIII 1/2 of
this Code or
other State law:
(1) a receiver of a ceding insurer may not avoid a
non-fraudulent transfer by a ceding insurer to an SPRV of money or other property made pursuant to an SPRV contract; and
(2) a receiver of an SPRV may not void a
non-fraudulent transfer by the SPRV of money or other property made to a ceding insurer pursuant to an SPRV contract or made to or for the benefit of any holder of an SPRV security on account of the SPRV security.
(h) With the exception of the fulfillment of the obligations under an SPRV
and notwithstanding any other provisions of this Article or other law of this
State to the
contrary, the assets of an SPRV, including assets held in trust, may not be
or included in the estate of a ceding insurer in any delinquency proceeding
ceding insurer under this Article for any purpose, including, without
to creditors of the ceding insurer.
(i) Notwithstanding any other provision of this Article:
(1) A domiciliary receiver of an SPRV domiciled in
another state shall be vested by operation of law with the title to all of the assets, property, contracts, and rights of action, and all of the books, accounts, and other records of the SPRV located in this State. The domiciliary receiver shall have the immediate right to recover all of the vested property, assets, and causes of action of the SPRV located in this State.
(2) An ancillary proceeding may not be commenced or
prosecuted in this State against an SPRV domiciled in another state.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-80
(215 ILCS 5/179E-80)
SPRV not subject to guaranty funds, residual market, or
(a) An SPRV or the activities, assets, and obligations relating to the SPRV
subject to the provisions of Articles XXXIII 1/2 and XXXIV of this Code, and
an SPRV may
not be assessed by or otherwise be required to contribute to any guaranty fund
association in this State with respect to the activities, assets, or
obligations of an SPRV or
the ceding insurer.
(b) An SPRV may not be required to participate in residual market, FAIR
other similar plans to provide insurance coverage, take out policies, assume
capital contributions, pay or be otherwise obligated for assessments,
surcharges, or fees, or
otherwise support or participate in such plans or arrangements.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-85
(215 ILCS 5/179E-85)
Asset and investment limitations.
(a) Assets of the SPRV held in trust to secure obligations under the SPRV
must at all times be held in:
(1) cash and cash equivalents;
(2) securities listed by the Securities Valuation
Office of the NAIC and qualifying as admitted assets under statutory accounting convention in its state of domicile; and
(3) any other form of security acceptable to the
(b) An SPRV may enter into swap agreements or other transactions that have
objective of leveling timing differences in funding of up-front or ongoing
expenses or managing credit or interest rate risk of the investments in the
trust to ensure that
the investments are sufficient to assure payment or repayment of:
(1) the securities (and related interest or principal
payments) issued pursuant to an SPRV insurance securitization transaction; or
(2) the SPRV's obligations under the SPRV contract.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-90
(215 ILCS 5/179E-90)
Credit for reinsurance for the SPRV contract.
An SPRV contract meeting the requirements under this Article shall be
granted credit for reinsurance treatment or shall otherwise qualify as an asset
or a reduction
from liability for reinsurance ceded by a domestic insurer to an assuming
Section 173.1 of this Code for the benefit of the ceding insurer, provided and
only to the
extent that (i) the fair value of the assets held in trust for the benefit of
the ceding insurer
equal or exceed the obligations due and payable to the ceding insurer by the
SPRV under the
SPRV contract, (ii) the assets are held in trust in accordance with the
requirements set forth
in this Article, (iii) the assets are administered in the manner and pursuant
as set forth in this Article, and (iv) the assets are held or invested in one
or more of the
forms allowed in Section 179E-85.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-95
(215 ILCS 5/179E-95)
Insurance securitization deemed not to be transaction of
business. The securities issued by the SPRV under an SPRV insurance
not be deemed to be insurance or reinsurance contracts. An investor in
pursuant to an SPRV insurance securitization or any holder of those securities
shall not, by
sole means of the investment or holding, be deemed to be transacting an
in this State. The underwriters or selling agents (and their partners,
members, managers, employees, agents, representatives, and advisors) involved
in an SPRV
insurance securitization shall not be deemed to be conducting an insurance or
agency, brokerage, intermediary, advisory, or consulting business by virtue of
in connection therewith.
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/179E-100
(215 ILCS 5/179E-100)
Authority to adopt rules.
The Director may promulgate rules
necessary to effectuate the purposes of this Article. Any rules so promulgated
affect any existing SPRV insurance securitization in effect at the time of the
(Source: P.A. 92-124, eff. 7-20-01.)
215 ILCS 5/Art. XII
(215 ILCS 5/Art. XII heading)
FOREIGN AND ALIEN COMPANIES
215 ILCS 5/180
(215 ILCS 5/180)
(from Ch. 73, par. 792)
Companies that may domesticate.
(1) Any domestic, foreign, or alien stock company, mutual company,
assessment legal reserve company, reciprocal, or fraternal benefit
society, authorized or which may be authorized to do business in this
State, may reorganize under the laws of this State (including a
reorganization as a captive insurance company under the laws of this
State), by complying with the provisions of this Article.
(2) As used in this Article: "reorganize" means reorganize, reincorporate,
or domesticate as an Illinois insurer; "reorganization" means reorganization,
reincorporation, or domestication as an Illinois insurer; "reorganized company"
means any company that has availed itself of the provisions of this Article,
and the reorganization of which has been effected as in this Article provided;
and "similar domestic company" means, in the case of an application for
reorganization as a domestic captive insurance company, a domestic captive
insurance company organized under Article VIIC.
(Source: P.A. 87-1216.)
215 ILCS 5/181
(215 ILCS 5/181)
(from Ch. 73, par. 793)
Articles of reorganization.
(1) The board of directors, trustees or other governing body of any such
company desiring to reorganize under this Article shall comply with all
laws and requirements of its domiciliary state or country with reference to
reorganization under the laws of another state or country.
(2) Such board of directors, trustees or other governing body shall
adopt a resolution approving articles of reorganization setting forth:
(a) the name of the company; and if the name of the company upon
reorganization is to be changed, the proposed name of the reorganized
(b) the title of the act under which it was organized or incorporated;
(c) the matters required to be set forth in original articles of
incorporation of a similar domestic company;
(d) that it shall be bound by all the terms and provisions of this Code,
applicable to similar domestic companies organized or incorporated
(e) such other particulars as are deemed necessary or advisable.
(Source: P.A. 86-632; 86-634; 86-1028.)
215 ILCS 5/182
(215 ILCS 5/182)
(from Ch. 73, par. 794)
The articles of reorganization shall be executed in duplicate by the
president or vice-president, and secretary or assistant secretary of the
company, or the executive officers corresponding thereto, and shall be
acknowledged and sworn to.
(Source: Laws 1937, p. 696.)
215 ILCS 5/183
(215 ILCS 5/183)
(from Ch. 73, par. 795)
Certificate of Reorganization - Date Reorganization Effected.
(1) Upon the execution of the articles of reorganization there shall be
delivered to the Director
(a) two duplicate originals of the articles;
(b) a copy of the resolution of the board of directors, trustees or
other governing body, adopting said articles, duly certified by the
secretary of the company or officer corresponding thereto;
(c) information satisfactory to the Director that the company has
complied with all the laws
and requirements of the domiciliary state or country with
reference to the proposed reorganization and the protection of
(d) securities of the kind and amount, if any, required as a deposit of
a similar domestic company doing the same kind or kinds of business
proposed to be done by the reorganized company.
(2) If the Director finds that the articles of reorganization are in
accordance with the provisions of this Article, and that the company has
complied with all provisions of this Code applicable to similar domestic
companies, he shall approve the articles of reorganization and shall forthwith file
one of the duplicate originals of the articles, together with the
resolution and certificate of reorganization and certificate of
authority, in his office, endorse upon the other duplicate
original, his approval thereof, and deliver it together with a certificate
of reorganization and a certificate of authority to the reorganized
company. Upon such filing, the reorganization of the company shall be effected.
(Source: P.A. 85-131.)
215 ILCS 5/184
(215 ILCS 5/184)
(from Ch. 73, par. 796)
Recording Articles of Reorganization.
The articles of reorganization, approved by the Director and returned to
the reorganized company, shall be recorded in the office of the recorder
in the county where the principal office of the reorganized company
is to be located.
(Source: P.A. 85-131.)
215 ILCS 5/185
(215 ILCS 5/185)
(from Ch. 73, par. 797)
directors, trustees, etc. to continue.
The directors, trustees, or members of any other governing body of the
company so reorganized, shall become the directors, trustees or members of
the governing body of the reorganized company and shall hold office until
their successors are elected or chosen in the manner provided therefor by
the articles of reorganization.
(Source: Laws 1937, p. 696.)
215 ILCS 5/185.1
(215 ILCS 5/185.1)
(from Ch. 73, par. 797.1)
Effect of Reorganization.
When the reorganization has been effected:
(a) The articles of reorganization shall be the articles of
incorporation of the reorganized company and said company shall continue
in existence as, and thereafter
be, a company of this State.
(b) The reorganized company shall make its reports in accordance with
the laws of this State and shall be subject to the exclusive regulation and
supervision by the Department of Insurance of this State and shall be subject
and supervision by the Insurance Departments of other states and countries
as a foreign or alien company.
(c) The reorganized company shall have all of the rights, privileges,
immunities and powers and shall be subject to all of the duties and
liabilities granted or imposed by this Code
(except in the case of a domestic captive insurance company, which
shall have all of the rights, privileges, immunities and powers and shall
be subject to all of the duties and liabilities granted or imposed by
Article VIIC of this Code).
(d) The reorganized company shall thereupon and thereafter possess all
the rights, privileges, immunities, powers and franchises of a public as
well as a private nature, theretofore possessed by the company so
reorganized. Without limiting the generality of the foregoing, (i) the
agency appointments, licenses, certificates of authority and rates which
are in existence at the time of the reorganization of such reorganized
company takes effect shall continue in full force and effect;
(ii) all property, real, personal and mixed, and all debts due
on whatever account, including subscriptions to shares, assessments payable
from members or policyholders, and all other choses in action, and all and
every other interest of, or belonging to or due to the company so
reorganized, shall be deemed to be transferred to and vested in the
reorganized company without further act or deed; and (iii) the title to any
real estate or any interest therein theretofore vested in the company so
reorganized, shall not revert or be in any way impaired by reason of such
(e) The reorganized company shall thenceforth be responsible and liable
for all the liabilities and obligations of the company so reorganized. Any
claim existing, or action or proceeding pending by or against the company
so reorganized, may be prosecuted to judgment as if such reorganization had
not taken place, or such reorganized company may be substituted in its
place. Neither the rights of creditors nor any liens upon the property of
the company so reorganized, shall be impaired by such reorganization, but
such liens shall be limited to the property upon which they were liens
immediately prior to the reorganization, unless otherwise provided in the
articles of reorganization.
(Source: P.A. 85-131.)
215 ILCS 5/185.2
(215 ILCS 5/185.2)
(from Ch. 73, par. 797.2)
Conversion to Foreign Insurer.
Any domestic insurer may,
upon the approval of the Director, transfer its domicile to any other state
in which it is admitted to transact the business of insurance, and upon
such a transfer shall cease to be a domestic insurer. The Director shall
approve any such proposed transfer unless he shall determine such transfer
is not in the interest of the policyholders of this State.
(Source: P.A. 85-131.)
215 ILCS 5/Art. XII.5
(215 ILCS 5/Art. XII.5 heading)
ARTICLE XII 1/2.
215 ILCS 5/186.1
(215 ILCS 5/186.1)
(from Ch. 73, par. 798.1)
Supervision by the Director.
(1)If the Director
determines that any domestic insurance company is operating in a manner,
that could lead to, or is in, a financial condition, which if continued
would make it hazardous to the public, and its policyholders, the Director
may issue an order:
(a) notifying the company and its Board of Directors of his
determination and setting forth the specific deficiencies leading to the determination;
(b) setting forth the specific action required or prohibited to correct
the cited deficiencies; and
(c) ordering the company to comply with the Director's order within such
reasonable time as the Director shall prescribe.
(2) Operation or financial condition deficiencies supporting the
Director's determination under subsection (1) may include, but are not
limited to, the following:
(a) The company has failed to maintain a relationship of policyholder
surplus to premium writings or policyholder surplus to claim and unearned
premium reserves which provides a reasonable margin of safety for the
policyholders considering the classes of insurance the company is writing.
(b) The company's asset liquidity is not adequate to provide orderly
payment of its obligations.
(c) The company's current or projected net income is inadequate to meet
its present or projected obligations.
(d) The company has a history of claim reserve inadequacy which affects
the reliability of its financial statements.
(e) The company has failed to maintain adequate books and records or has
otherwise conducted its insurance operation in a manner which impairs the
Director's ability to determine its true financial condition.
(3) If a company fails to comply with the Director's order issued
pursuant to subsection (1) within the time prescribed for such compliance
the Director may institute proceedings for the conservation, rehabilitation
or liquidation of the company under Article XIII of this Code.
(4)(a) The Director may require that the company prepare and file a plan
to correct the deficiencies cited by the Director in his order within such
time as the Director may prescribe. A corrective order may require,
prohibit or permit certain acts subject to conditions including the
Director's prior approval. The scope of a corrective order may relate to
but shall not be limited to:
(i) the disposition, recovery or mix of assets;
(ii) the assumption or cession of reinsurance, including reinsurance of
(iii) lending and borrowing;
(v) restricting underwriting and marketing activities.
(b) The Director may require that any company under such corrective
order direct any certified public accountants, consulting actuary or
financial consultant retained by the company to prepare for the Director
such reports, accounting data and such other reports as the Director may
reasonably require to assist in carrying out the responsibilities of the
Director under this Section.
(5)(a) Any company subject to an order under subsections (1) or (4) may
request a hearing before the Director to review that order. Such request
shall be made in writing within 10 days of the receipt of such order, shall
state the company's objections to the order, and shall be addressed to the
Director. Such hearing shall be convened not less than 10 days nor more
than 20 days after receipt of the written request for hearing unless
otherwise agreed to by the company. The Director shall make a final
determination within 10 days after the conclusion of the hearing. The
Director shall hold all hearings under this subsection privately in
accordance with subsection (6) of this Section. The pendency of a hearing
or pendency of the Director's final determination shall not stay the effect
of the Director's order.
(b) After the Director's final determination pursuant to any hearing
under this subsection, any party to the proceedings whose interests are
affected by the Director's final determination shall be entitled to
judicial review of such final determination pursuant to the provisions of
the "Administrative Review Law".
Notwithstanding the availability of administrative remedies or judicial
review under the "Administrative Review Law", a company which is subject to
an order of the Director under this Section shall be entitled to immediate
judicial review and injunctive relief in the Circuit Court of Cook County
or the Circuit Court of Sangamon County upon satisfying the court:
(i) that accepting the facts set forth in the order as true, the order
is arbitrary or capricious;
(ii) that the company's interests are substantially impaired by the order; and
(iii) that the company will suffer permanent injury in the absence of
immediate injunctive relief.
(6) All administrative and judicial proceedings arising under this Article
shall be held privately unless a public hearing is requested by the
company, and all records of the company, and all records of the Department
concerning the company, so far as they pertain to or are a
part of the record of the proceedings, shall be and remain confidential,
unless the company requests otherwise. Such records shall not be subject
to public disclosure under "The Illinois Freedom of Information Act", certified
December 27, 1983, as amended, or otherwise, nor shall such records be
subject to subpoena by third parties, unless the company and Director
consent to such disclosure or release under subpoena.
(7) The powers vested in the Director by this Section are additional to
any and all other powers and remedies vested in the Director by law, and
nothing herein contained shall prohibit the Director from proceeding under
any other applicable law or under this Section in conjunction with any other law.
(Source: P.A. 84-715.)
215 ILCS 5/186.2
(215 ILCS 5/186.2)
(from Ch. 73, par. 798.2)
(1) Any officer, manager, director, trustee, owner,
employee, or agent of any insurer, or any other person with authority over
or in charge of any segment of the company's affairs, shall cooperate with
the Director in any proceeding under this Article or any investigation
preliminary to the proceeding. The term "person" as used in this Section
shall include any person who exercises control directly or indirectly over
activities of the company through any holding company or other affiliate
of the company. To "cooperate" shall include, but shall not be limited to, the following:
(a) to reply promptly in writing to any inquiry from the Director of
Insurance requesting such a reply; and
(b) to make available to the Director any books, accounts, documents, or
other records or information or property of or pertaining to the company
and in such person's possession, custody or control.
(2) No person shall obstruct or interfere with the Director in the
conduct of any proceeding under Sections 186.1 and 186.2 or any
investigation preliminary or incidental thereto.
(3) This Section shall not be construed to abridge otherwise existing
legal rights, including the right to contest any order issued under this Code.
(4) Any person who obstructs or interferes with the Director in the
conduct of any proceeding or investigation under this Article, or who
violates any valid order issued under this Article shall be subject to
civil forfeitures, fines or penalties pursuant to Sections 134, 149, 403A
and 505.1 of this Code.
(Source: P.A. 84-715.)
215 ILCS 5/Art. XIII
(215 ILCS 5/Art. XIII heading)
REHABILITATION, LIQUIDATION, CONSERVATION AND DISSOLUTION OF
215 ILCS 5/187
(215 ILCS 5/187)
(from Ch. 73, par. 799)
Scope of Article.
(1) This Article shall apply to every corporation, association, society,
order, firm, company, partnership, individual, and aggregation of
individuals to which any Article of this Code is applicable, or which is
subject to examination, visitation or supervision by the Director under any
provision of this Code or under any law of this State, or which is engaging
in or proposing or attempting to engage in or is representing that it is
doing an insurance or surety business, or is undertaking or proposing or
attempting to undertake to provide or arrange for health care services as a
health care plan as defined in subsection (7) of Section 1-2 of the Health
Maintenance Organization Act, including the exchanging of reciprocal or
inter-insurance contracts between individuals, partnerships and corporations in
this State, or which is in the process of organization for the purpose of doing
or attempting or intending to do such business, anything as to any such
corporation, association, society, order, firm, company, partnership,
individual or aggregation of individuals provided in this Code or elsewhere in
the laws of this State to the contrary notwithstanding.
(2) The word "company" as used in this Article includes all of the
corporations, associations, societies, orders, firms, companies,
partnerships, and individuals specified in subsections
(1), (4), and (5) of this Section and
agents, managing general agents, brokers, premium finance companies,
insurance holding companies, and all other non-risk bearing entities or persons
engaged in any aspect of the business of insurance on behalf of an insurer
against which a receivership proceeding has been or is being filed under this
Article, including, but not limited to, entities or persons that provide
management, administrative, accounting, data processing, marketing,
underwriting, claims handling, or any other similar services to that insurer,
whether or not those entities are licensed to engage in the business of
insurance in Illinois, if the
entity or person is an affiliate of that insurer.
(3) The word "court" shall mean the court before which the
conservation, rehabilitation, or liquidation proceeding of the company is
pending, or the judge presiding in such proceedings.
(4) The word "affiliate" as used in this Article means a person that
directly, or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, the person specified.
(5) The word "person" as used in this Article means an individual, an
of individuals, a partnership, or a corporation.
(6) The word "assets" as used in this Article includes all deposits and
funds of a special or trust nature.
(7) The words "receivership proceedings" mean any conservation,
rehabilitation, liquidation, or ancillary receivership.
(8) "Netting agreement", as used in this Article, means (a) a contract or agreement (including terms and conditions incorporated by reference therein), including a master agreement (which master agreement, together with all schedules, confirmations, definitions, and addenda thereto and transactions under any thereof, shall be treated as one netting agreement), that documents one or more transactions between the parties to the agreement for or involving one or more qualified financial contracts and that provides for the netting, liquidation, setoff, termination, acceleration, or close out under or in connection with one or more qualified financial contracts or present or future payment or delivery obligations or payment or delivery entitlements thereunder (including liquidation or close-out values relating to such obligations or entitlements) among the parties to the netting agreement; (b) any master agreement or bridge agreement for one or more master agreements described in paragraph (a) of this subsection (8); or (c) any security agreement or arrangement or other credit enhancement or guarantee or reimbursement obligation related to any contract or agreement described in paragraph (a) or (b) of this subsection (8); provided that any contract or agreement described in paragraphs (a) or (b) of this subsection (8) relating to agreements or transactions that are not qualified financial contracts shall be deemed to be a netting agreement only with respect to those agreements or transactions that are qualified financial contracts.
(9) "Qualified financial contract" means any commodity contract, forward contract, repurchase agreement, securities contract, swap agreement, or any similar agreement that the Director determines by regulation, resolution, or order to be a qualified financial contract for the purposes of this Act.
(a) "Commodity contract" means:
(1) a contract for the purchase or sale of a
commodity for future delivery on, or subject to the rules of, a board of trade or contract market under the federal Commodity Exchange Act or a board of trade outside the United States;
(2) an agreement that is subject to regulation
under Section 19 of the federal Commodity Exchange Act and that is commonly known to the commodities trade as a margin account, margin contract, leverage account, or leverage contract;
(3) an agreement or transaction that is subject
to regulation under Section 4c(b) of the federal Commodity Exchange Act and that is commonly known to the commodities trade as a commodity option;
(4) any combination of the agreements or
transactions referred to in this paragraph (a); or
(5) any option to enter into an agreement or
transaction referred to in this paragraph (a).
(b) "Forward contract", "repurchase agreement",
"securities contract", and "swap agreement" shall have the meanings set forth in the Federal Deposit Insurance Act, 12 U.S.C. § 1821(e)(8)(D), as amended from time to time.
(Source: P.A. 96-1450, eff. 8-20-10.)
215 ILCS 5/188
(215 ILCS 5/188)
(from Ch. 73, par. 800)
Grounds for rehabilitation and liquidation of a domestic
company or an unauthorized foreign or alien company. Whenever any
domestic company or any unauthorized foreign or alien company:
1. is insolvent;
2. has failed or refused to submit its books, papers,
accounts, records or affairs to the reasonable inspection or examination of the Director or his actuaries, supervisors, deputies, or examiners;
3. has concealed, removed, altered, destroyed or
failed to establish and maintain books, records, documents, accounts, vouchers and other pertinent material adequate for the determination of its financial condition by examination under Sections 132 through 132.7 or has failed to properly administer claims and to maintain claims records which are adequate for the determination of its outstanding claims liability;
4. has failed or refused to observe an order of the
Director to make good within the time prescribed by law any deficiency, whenever its capital and minimum required surplus, if a stock company, or its required surplus, if a company other than stock, has become impaired;
5. has, by articles of consolidation, contract of
reinsurance or otherwise, transferred or attempted to transfer its entire property or business not in conformity with this Code, or entered into any transaction the effect of which is to merge substantially its entire property or business in any other company without having first obtained the written approval of the Director under this Code;
6. is found to be in such condition that its further
transaction of business would be hazardous to its policyholders, or to its creditors, or to the public;
7. has violated its charter or any law of this State
or has exceeded or is exceeding its corporate powers;
8. has an officer who has refused upon reasonable
demand to be examined under oath touching its affairs;
9. is found to be in such condition that it could not
meet the requirements for organization and authorization as required by law, except as to the amount of the original surplus required of a stock company in Section 13, and except as to the amount of the surplus required of a mutual company in excess of the minimum surplus required by this Code to be maintained, or either an authorized control level event or a mandatory control level event as set forth in Article IIA exists;
10. has ceased for the period of one year to transact
11. has commenced, or has attempted to commence, any
voluntary liquidation or dissolution proceeding, or any proceeding to procure the appointment of a receiver, liquidator, rehabilitator, sequestrator, or a similar officer for itself;
12. is a party, whether plaintiff or defendant in any
proceeding in which an application is made for the appointment of a receiver, custodian, liquidator, rehabilitator, sequestrator, or similar officer for such company or its property, or a receiver, custodian, liquidator, rehabilitator, sequestrator or similar officer, for such company or its property is appointed by any court, or such appointment is imminent;
13. consents by a majority of its directors,
14. has not organized and obtained a certificate
authorizing it to commence the transaction of its business within the period of time prescribed by the sections of this Code under which it is or proposes to be organized; or
15. has failed or refused to pay any valid final
judgment within 30 days after the rendition thereof, or whenever it appears to the Director that any person has committed a violation of Article VIII 1/2 with the result described in Section 131.26,
sufficient grounds shall be deemed to exist for the commencement of
rehabilitation or liquidation proceedings.
With respect to a domestic company, the Director must report, and with
respect to an unauthorized foreign or alien company, the Director may
report any such case to the Attorney General of this State whose duty it
shall be to apply forthwith by complaint on relation of the Director in the
name of the People of the State of Illinois, as plaintiff, to the Circuit
Court of Cook County, the Circuit Court of Sangamon County, or the circuit
court of the county in which such company has, or last had its principal
office, for an order to rehabilitate or liquidate the defendant company as
provided in this Article, and for such other relief as the nature of the
case and the interests of its policyholders, creditors, members,
stockholders or the public may require.
When, upon investigation, the Director finds that
a company is engaged in any aspect of the business of insurance on behalf
of or in association with any domestic insurance company, against which a
receivership proceeding has been or is being filed under this Article, in a manner that appears to be detrimental to
policyholders, creditors, members, shareholders, or the
public, the Director may report such case to the Attorney
General of this State, whose duty it is to apply forthwith by complaint
on relation of the Director in the name of the People of the State of
Illinois, as plaintiff, to the court in which the
receivership proceeding is pending
for an order to appoint the Director as receiver to assume control of the
assets and operation of the company pending a complete investigation and
determination of the rights of the policyholders, creditors, members,
shareholders, and the
(Source: P.A. 92-140, eff. 7-24-01.)
215 ILCS 5/188.1
(215 ILCS 5/188.1)
(from Ch. 73, par. 800.1)
Provisions for conservation of assets of a domestic,
foreign, or alien company.
(1) Upon the filing by the Director of a verified complaint alleging
(a) that with respect to a domestic, foreign, or alien company,
whether authorized or unauthorized, a condition exists that
would justify a court order for proceedings under Section 188, and
(b) that the interests of creditors, policyholders or the public will
probably be endangered by delay, then the circuit court of Sangamon or Cook
County or the circuit court of the county in which such company has or last
had its principal office shall enter forthwith without a hearing or
notice an order
directing the director to take possession and control of the property,
business, books, records, and accounts of the company, and of the premises
occupied by it for the transaction of its business, or such part of each as
the complaint shall specify, and enjoining the company and its officers,
directors, agents, servants, and employees from disposition of its property
and from transaction of its business except with the concurrence of the
Director until the further order of the court.
Copies of the verified complaint and the seizure order shall be
served upon the company.
(2) The order shall continue in force and effect for such time as the
court deems necessary for the Director to ascertain the condition and
situation of the company. On motion of either party or on its own motion,
the court may from time to time hold such hearings as it deems desirable,
and may extend, shorten, or modify the terms of, the seizure order. So far
as the court deems it possible, the parties shall be given adequate notice
of such hearings. As soon as practicable, the court shall vacate the
seizure order or terminate the conservation proceedings of the company,
either when the Director has failed to institute proceedings
under Section 188 having a reasonable opportunity to do so, or upon an
order of the court pursuant to such proceedings.
(3) Entry of a seizure order under this section shall not constitute an
anticipatory breach of any contract of the company.
(4) The court may hold all hearings in conservation proceedings
privately in chambers, and shall do so on request of any officer of the
company proceeded against.
(5) In conservation proceedings and judicial reviews thereof, all
records of the company, other documents, and all insurance department files
and court records and papers, so far as they pertain to and are a part of
the record of the conservation proceedings, shall be and remain
confidential except as is necessary to obtain compliance therewith, unless
and until the court, after hearing arguments in chambers from the Director
and the company, shall decide otherwise, or unless the company requests
that the matter be made public.
(6) Any person having possession of and refusing to deliver any of the
property, business, books, records or accounts of a company against which a
seizure order has been issued shall be guilty of a Class A misdemeanor.
(Source: P.A. 89-206, eff. 7-21-95.)
215 ILCS 5/188.2
(215 ILCS 5/188.2)
Grounds for and provisions applicable to rehabilitation or liquidation
of a domestic company that is a covered financial company under the
federal Dodd-Frank Wall Street Reform and Consumer Protection Act.
(a) The provisions of this Section apply in accordance with Title II of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act,
P.L. 111-203, with respect to an insurance company that is a covered financial company,
as that term is defined under 12 U.S.C. 5381.
(b) The Director may file a complaint for an order of rehabilitation or liquidation pursuant to
Section 188 of this Code on any of the following grounds:
(1) upon a determination and notification given by
the Secretary of the Treasury of the United States (in consultation with the President of the United States) that the insurance company is a financial company satisfying the requirements of 12 U.S.C. 5383(b), and the board of directors (or body performing similar functions) of the insurance company acquiesces or consents to the appointment of a receiver pursuant to 12 U.S.C. 5382(a)(1)(A)(i), with such consent to be considered as consent to an order of rehabilitation or liquidation;
(2) upon an order of the United States District Court
for the District of Columbia under 12 U.S.C. 5382(a)(1)(A)(iv)(I) granting the petition of the Secretary of the Treasury of the United States concerning the insurance company under 12 U.S.C. 5382(a)(1)(A)(i); or
(3) a petition by the Secretary of the Treasury of
the United States concerning the insurance company is granted by operation of law under 12 U.S.C. 5382(a)(1)(A)(v).
(c) Notwithstanding any other provision in this Article, this Code, or any other law, after notice to the
insurance company, the receivership court may grant an order on the complaint for
rehabilitation or liquidation within 24 hours after the filing of a complaint pursuant to this
(d) If the receivership court does not make a determination on a complaint for rehabilitation or liquidation
filed by the Director pursuant to this Section within 24 hours after its filing, then it shall be
deemed granted by operation of law upon the expiration of the 24-hour period. At the time
that an order is deemed granted under this Section, the provisions of Article XIII of this Code
shall be deemed to be in effect, and the Director shall be deemed to be affirmed as receiver and have all of the applicable powers provided by this Code, regardless of whether an order
has been entered. The receivership court shall expeditiously enter an order of rehabilitation
or liquidation that:
(1) is effective as of the date that it is deemed
granted by operation of law; and
(2) conforms to the provisions for rehabilitation or
liquidation contained in Article XIII of this Code, as applicable.
(e) Any order of rehabilitation or liquidation made pursuant to this Section shall not be subject to
any stay or injunction pending appeal.
(f) Nothing in this Section shall be construed to supersede or impair any other power or
authority of the Director or the court under this Article or Code.
(Source: P.A. 98-136, eff. 8-2-13
215 ILCS 5/189
(215 ILCS 5/189)
(from Ch. 73, par. 801)
The court shall have jurisdiction, upon, or at any time after the
of the complaint to issue an injunction restraining such company and its
officers, agents, directors, employees and all other persons from
transacting any company business or disposing of its property until the
further order of the court. The court may also restrain all persons,
entities from bringing or further prosecuting all actions and proceedings at
law or in equity or otherwise, whether in this State or elsewhere, against the
company or its assets or property or the Director except insofar as those
actions or proceedings arise in or are brought in the conservation,
rehabilitation, or liquidation proceeding. The court may issue such other
enter such other orders as may be deemed necessary to prevent interference
with the proceedings, or with the Director's possession and control or
title, rights or interests as herein provided or to prevent interference
with the conduct of the business by the Director, and may issue such other
injunctions or enter such other orders as may be deemed necessary to
prevent waste of assets or the obtaining, asserting, or enforcing of
attachments, or other like liens, including common law retaining
the making of any levy against such
company or its property and assets while in the possession and control of
the Director. The court may issue any other injunctions or enter any other
orders that are necessary to protect enrollees in accordance with subsection
(c) of Section 5-6 of the Health Maintenance Organization Act. Any
issued under this article may be served and
enforced as in other civil proceedings, but no bond or other security shall
be required of the plaintiff, either for costs or for any injunction.
(Source: P.A. 88-297; 89-206, eff. 7-21-95.)