(215 ILCS 165/20) (from Ch. 32, par. 614)
Sec. 20.
The funds of any health services plan corporation shall be
handled in accordance with the following rules:
(a) All loans made to original capital of the corporation may be
repayable only out of earned surplus.
(b) The funds of the corporation may be invested in accordance with
the requirements provided by law for the investment of funds of life
insurance companies and may also be invested in equipment of the
corporation provided such investment in equipment shall not exceed more
than 30% of the total admitted assets. The value of such equipment shall
be depreciated at a rate as rapidly as is provided under the Internal
Revenue Code.
(c) Every health services plan corporation, after its first fiscal
year of doing business, shall accumulate and maintain a special
contingent reserve over and above its reserves and liabilities at the
rate of 2% annually of its subscription income net of reinsurance so long
as the special contingent reserve does not exceed 8% of its annual net income
for the preceding 12 month period.
Additional accumulations shall no longer be required at such time that the
total special contingent reserve is equal to $1,500,000.
(Source: P.A. 90-794, eff. 8-14-98.)
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