Illinois Administrative Code

Section 101.10 Purpose The purpose of this Part is to describe the kinds of risks and coverages which may be classified or identified under State Insurance laws as Marine, Inland Marine or Transportation insurance, but does not include all of the kinds of risks and coverages whic…

Section 101.20 Restrictions This Part shall not be construed to restrict or limit in any way the exercise of any insuring powers granted under charters and license whether used separately, in combination or otherwise.

Section 101.30 Marine and/or Transportation Policies Marine and/or Transportation policies may cover the following risks and coverages: a) Imports 1) Imports on consignment may be covered wherever the property may be and without restriction as to time, provided the coverage of th…

Section 101.40 Coverage not Permitted Unless otherwise permitted, nothing in the foregoing shall be construed to permit Marine or Transportation Policies to Cover: a) Storage of Assured's merchandise, except as hereinbefore provided. b) Merchandise in course of manufacture, the p…

Section 102.10 Contracts with Glass Companies a) Insurers licensed to write plate glass insurance in the State of Illinois may not enter into contracts with a glass company whereby in consideration of the payment of a specified percentage of the earned premiums on all plate glass…

Section 201.10 Application and Effective Date This rule applies to all companies organized under Article II of the Illinois Insurance Code and is applicable to any and all debts other than those shown as a legal liability of the company. It shall become effective September 1, 196…

Section 201.20 Approval of Debenture Form by Director Prior to Shareholder Approval The subordinated indebtedness agreement (debenture) shall be submitted for the approval of the Illinois Director of Insurance (Director) as required by Section 34.1 of the Illinois Insurance Code …

Section 201.30 Approval by Shareholders After submission of the documents specified in Section 201.20 and approval thereof by the Director, the proposed form of debenture and the resolution authorizing it shall be presented for consideration at a regular or special shareholder's …

Section 201.40 Consideration The consideration tendered to the company in exchange for the agreement shall be lawful money.

Section 201.5 Statutory Authority The following rule is promulgated and adopted pursuant to and in accordance with the provisions of Section 401 of the Illinois Insurance Code in order to implement Section 34.1 thereof.

Section 201.50 Reporting and Accounting of Indebtedness a) The Director shall be notified immediately in writing upon the execution of any such debenture as to the amount thereof and to whom payable. b) All outstanding subordinated indebtedness and interest accrued thereon shall …

Section 201.60 Repayment of Principal and Payment of Interest A company may only repay principal and make payment of interest on any indebtedness as provided under Section 34.1 of the Illinois Insurance Code [215 ILCS 5/34.1]. No payment shall be authorized by the Director unless…

Section 202.10 Authority and Application Part 202 is promulgated pursuant to the provisions of Section 401 of the Illinois Insurance Code to regulate the writing and servicing of the kind of insurance described in Clause (h) of Class 2 of Section 4 of the Illinois Insurance Code …

Section 202.20 Definitions Authorized real estate security means a promissory note, bond or other evidence of indebtedness which, at the time of origination, does not, when added to any prior secured indebtedness relating to the real estate, exceed 100% of the fair market value o…

Section 202.30 Restrictions on the Transaction of Business a) A company shall not transact the business of mortgage guaranty insurance unless it originally has and continues to have capital and surplus of at least the amounts specified in Section 13 of the Illinois Insurance Code…

Section 202.40 Reinsurance a) A mortgage guaranty insurance company may, by contract, reinsure any of its insurance with another mortgage guaranty company licensed to transact business in the State of Illinois. b) The reserves of the ceding company and the reinsurance shall be ad…

Section 202.50 Reserves A mortgage guaranty insurance company shall establish and maintain the following four reserve accounts: a) Reserve for General Expenses – A reserve in an amount sufficient to meet general expenses, including amounts due vendors for goods, supplies, equipme…

Section 202.60 General a) Forms – All policy forms for mortgage guaranty insurance must be filed with and approved by the Director pursuant to Section 143 of the Illinois Insurance Code prior to their utilization in the State of Illinois. b) Prohibition Against Deficiency Judgmen…

Section 202.ILLUSTRATION A Unearned Premium Factor to be Applied to Premiums In Force on Valuation Date Contract Year Current at Valuation Date 2 Year Coverage Period 3 Year Coverage Period 4 Year Coverage Period 5 Year Coverage Period 6 Year Coverage Period 1 88.8% 93.9% 95.7% 9…

Section 203.10 Authority, Application and Effective Date This Part is prescribed by the Director of Insurance under the authority granted him in Subsection (a) of Section 28.2 of the Illinois Insurance Code by which the Director is authorized to regulate proxies, consents, and au…

Section 203.100 Special Provisions Applicable to Election Contests a) Applicability This Section applies to any solicitation subject to the Part by any person or group for the purpose of opposing a solicitation subject to this Part by any other person or group with respect to the…

Section 203.110 Proposals From Security Holders a) If any security holder entitled to vote at a meeting of the company submits to the management of the company a proposal which is accompanied by notice of his intention to present the proposal for action at the meeting a reasonabl…

Section 203.20 Proxies, Consents and Authorizations No domestic stock company, or any director, officer or employee of such company subject to Section 203.10 of this Part or any other person, may solicit, or permit the use of his name to solicit by mail or otherwise, any proxy, c…

Section 203.30 Disclosure of Equivalent Information If proxies, consents or authorizations concerning any class of equity security of a domestic company subject to Section 203.10 are not solicited by or on behalf of the management of the company from the holders of record of the …

Section 203.40 Definitions a) For purposes of this Part the term "company" is defined in Subsection (e) of Section 2 of the Illinois Insurance Code (Ill. Rev. Stat. 1981, ch. 73, par. 614). b) The terms "solicit" and "solicitation" for purposes of this Part include: 1) Any reques…

Section 203.50 Information to Be Furnished to Security Holders a) No solicitation subject to this Part may be made unless each person is concurrently furnished or has previously been furnished with a written proxy statement containing the information specified in Exhibit A. b) If…

Section 203.60 Requirements as to Proxy and Information Statement a) The form of proxy: 1) must indicate in bold-face type whether or not the proxy is solicited on behalf of the management; 2) must provide a specifically designated blank space for dating the proxy; and 3) must id…

Section 203.70 Material Required to Be Filed a) Two preliminary copies of the information statement or the proxy statement and form of proxy and any other soliciting material to be furnished to security holders concurrently therewith must be filed with the Director at least 10 da…

Section 203.80 False or Misleading Statements No proxy statement, form of proxy, notice of meeting, information statement or other communication, written or oral, subject to this Part, may contain any statement which at the time and in the light of the circumstances under which i…

Section 203.90 Prohibition of Certain Solicitation No person making a solicitation which is subject to this Part may solicit any updated or postdated proxy or any proxy which provides that it is considered to be dated as of any date subsequent to the date on which it is signed by…

Section 203.EXHIBIT A Information Required in Proxy Statement or Information Statement Item 1. Revocability of Proxy State whether or not the person giving the proxy has the power to revoke it. If the right of revocation before the proxy is exercised is limited or is subject to c…

Section 204.10 General Application a) Definition of Terms 1) "Company" means any domestic stock insurance company, with an equity security subject to the provisions of Section 28.1 of the Illinois Insurance Code and not exempt thereunder. 2) "Act" means Section 28.1 of the Illino…

Section 204.20 Regulations Under Subsection (a) of the Act a) Filing of Statements Initial statements of beneficial ownership of equity securities required by subsection (a) of the Act shall be filed on Form 1, attached hereto (see exhibit A). Statements of changes in such benefi…

Section 204.30 Regulations Under Subsection (b) of the Act a) Exemption from subsection (b) of certain transactions effected in connection with a distribution 1) Any transaction of purchase and sale, or sale and purchase, of a security which is effected in connection with the dis…

Section 204.40 Regulations Under Subsection (c) of the Act a) Exemption of certain securities from subsection (c) of the Act Any security shall be exempt from the operation of subsection (c) of the Act to the extent necessary to render lawful under such subsection the execution b…

Section 204.5 Authority (Insider Trading of Domestic Stock Insurance Company Equity Securities). This Part is issued by the Director of Insurance pursuant to Section 401 of the Illinois Insurance Code in order to implement Section 28.1 thereof. It shall be effective from and afte…

Section 204.50 Regulation Under Subsection (e) of the Act Arbitrage transactions under subsection (e) of the Act It shall be unlawful for any director or officer of a company to effect any foreign or domestic arbitrage transaction in any equity security of such company, unless he…

Section 204.EXHIBIT B Statement of Changes in Beneficial Ownership of Securities STATE OF ILLINOIS Director of Insurance Form 2 – Statement of Changes in Beneficial Ownership of Securities Filed pursuant to Section 28.1 of the Illinois Insurance Code (Name of insurance company) (…

Section 205.10 Authority Part 205 is promulgated by the Director of Insurance pursuant to Sections 401 and 144 of the Illinois Insurance Code (Ill. Rev. Stat. 1985, ch. 73, pars. 1013 and 756), which empowers the Director...to make reasonable rules and regulations as may be neces…

Section 205.20 Purpose It is the purpose of this Part to regulate the writing and servicing of municipal bond insurance.

Section 205.30 Definitions a) Municipal Bond Insurance – insurance or reinsurance against financial loss by reason of nonpayment of principal, interest or other payment obligations pursuant to the terms of municipal bonds as defined in subsection (b) hereof. b) Municipal Bond – a…

Section 205.40 Requirements a) Any direct insurer issuing contracts insuring municipal bonds must: 1) be authorized to write the kinds of business defined in Class 2(g) and 2(h) of Section 4 of the Illinois Insurance Code (Ill. Rev. Stat. 1985, ch. 73, par. 616), and 2) have a po…

Section 205.50 Limitations and Restrictions a) 1) In no event, shall the insured average annual debt service (net of the appropriate allowance for acceptable reinsurance and collateral allowable under Section 205.80) in respect to securities, backed by a single revenue source, ex…

Section 205.60 Financial Statements a) A municipal bond insurer shall maintain an unearned premium reserve computed to show gross premiums, without any deductions, received and receivable upon all unexpired risks, net of reinsurance, on a monthly pro rata basis, except that in th…

Section 205.70 Reinsurance a) An insurer qualified to write municipal bond insurance may, by contract, reinsure any such insurance it transacts, provided that credit in accounting and financial statements for reinsurance ceded shall be allowed only if the reinsurer is either: 1) …

Section 205.80 Collateral Security An insurer transacting municipal bond insurance as defined in Section 205.30 insurer may, for the purposes of Section 205.50, treat the amount of a clean, irrevocable letter of credit or other assets which would qualify under Section 173.1(2) of…

Section 205.90 Applicability of Other Laws a) All the applicable provisions of the Illinois Insurance Code and the Illinois Insurance Regulations of the Department of Insurance and of other statutes and regulations of this State, except as the same may be in conflict herewith, sh…

Section 206.10 Authority Part 206 is promulgated by the Director of Insurance pursuant to Sections 14.1, 29, 44, 57, 68, 80 and 401 of the Illinois Insurance Code, which empower the Director to make reasonable rules and regulations as may be necessary for making effective the ins…

Section 206.20 Purpose This Part sets forth the method and procedure by which domestic insurance companies designate either a registered agent with a registered Illinois address and/or any officer or director of the insurance company to accept service of process in Illinois.

Section 206.30 Definitions For the purposes of this Part, the following definitions apply: "Articles of Incorporation" means the basic instrument of an incorporated company and all amendments to that instrument and includes "Charter", "Articles of Organization", "Articles of Reor…