(215 ILCS 5/244) (from Ch. 73, par. 856)
Sec. 244.
Limitation
of expenses for life companies.
(1) No life company authorized to do business in this State shall make
or incur acquisition expenses in any calendar year after the calendar year
during which this Code becomes effective amounting to more than the first
year's gross premiums nor shall such company make or incur renewal expenses
on policies issued after such year in any of the nine succeeding renewal
years following each year's new business in excess of 10% of the gross
renewal premiums, unless the company collects renewal premiums in person in
which case such renewal expense applicable to such policies for as long as
such premiums are collected in person shall not exceed 20%, except that
renewal expenses in excess of such 10% limitation relative to the 9
succeeding renewal years may be made or incurred if such excess in any year
be included with acquisition expenses made or incurred during that calendar
year. After the tenth policy year the annual maximum renewal expenses shall
not exceed 3% of such gross annual renewal premiums, unless the company
collects renewal premiums in person in which case such renewal expense
applicable to such policies for as long as such premiums are collected in
person shall not exceed 13%, but a company may pay renewal expenses after
the tenth policy year in excess of 3% if such excess is charged to the
renewal expense of that calendar year within the limitation provided
herein.
(2) In computing such acquisition expenses there shall be included all
commissions and other valuable considerations paid or payable to or for
agents, and other expenses made or incurred in acquiring new business,
except medical examination and inspection fees and the normal overhead
expenses of operation at the home office. In computing such renewal
expenses there shall be included commissions and other valuable
considerations paid or payable to or for agents, and all other expenses
made or incurred for the collection of such renewal premiums, except the
normal overhead expenses of operation at the home office.
(3) This Section shall not apply to accident and health or industrial
business written by any companies.
(Source: Laws 1967, p. 3359.)
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