Chapter 215 — INSURANCE

(215 ILCS 5/125.9c) Sec. 125.9c. (Repealed). (Source: P.A. 89-97, eff. 7-7-95. Repealed by P.A. 90-418, eff. 8-15-97.)

(215 ILCS 5/125a) (from Ch. 73, par. 737a) Sec. 125a. (Repealed). (Source: P.A. 84-805. Repealed by P.A. 90-418, eff. 8-15-97.)

(215 ILCS 5/125b) (from Ch. 73, par. 737b) Sec. 125b. (Repealed). (Source: P.A. 86-1156. Repealed by P.A. 90-418, eff. 8-15-97.)

(215 ILCS 5/126.1) Sec. 126.1. Purpose and scope. A. Purpose. The purpose of this Article is to protect the interests of insureds by promoting insurer solvency and financial strength. This will be accomplished through the application of investment standards that facilitate a reas…

(215 ILCS 5/126.10) Sec. 126.10. General 3% diversification, medium and lower grade investments, and Canadian investments. A. General 3% diversification. (1) Except as otherwise specified in this Article, an insurer shall not acquire, directly or indirectly through an investment …

(215 ILCS 5/126.11) Sec. 126.11. Rated credit instruments. Subject to the limitations of subsection F of this Section, an insurer may acquire rated credit instruments: A. Subject to the limitations of Section 126.10B, but not to the limitations of Section 126.10A, except for that…

(215 ILCS 5/126.12) Sec. 126.12. Insurer investment pools. A. An insurer may acquire investments in investment pools that: (1) Invest only in: (a) Obligations that are rated 1 or 2 by the SVO or have an equivalent of an SVO 1 or 2 rating (or, in the absence of a 1 or 2 rating or …

(215 ILCS 5/126.13) Sec. 126.13. Equity interests. A. Subject to the limitations of Section 126.10, an insurer may acquire directly or indirectly through an investment subsidiary, equity interests in business entities organized under the laws of any domestic jurisdiction. B. An i…

(215 ILCS 5/126.14) Sec. 126.14. Tangible personal property under lease. A. (1) Subject to the limitations of Section 126.10, an insurer may acquire tangible personal property or equity interests therein located or used wholly or in part within a domestic jurisdiction either dire…

(215 ILCS 5/126.15) Sec. 126.15. Mortgage loans and real estate. A. Mortgage loans. (1) Subject to the limitations of Section 126.10, an insurer may acquire, either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohib…

(215 ILCS 5/126.16) Sec. 126.16. Securities lending and repurchase, reverse repurchase, and dollar roll transactions. An insurer may enter into securities lending, repurchase, reverse repurchase, and dollar roll transactions with business entities, subject to the following requir…

(215 ILCS 5/126.17) Sec. 126.17. Foreign investments and foreign currency exposure. A. Subject to the limitations of Section 126.10, an insurer may acquire directly or indirectly through an investment subsidiary, foreign investments, or engage in investment practices with persons…

(215 ILCS 5/126.18) Sec. 126.18. Derivative transactions. An insurer may, directly or indirectly through an investment subsidiary, engage in derivative transactions under this Section under the following conditions: A. General conditions. (1) An insurer may use derivative instrum…

(215 ILCS 5/126.19) Sec. 126.19. Policy loans. A life insurer may lend to a policyholder on the security of the cash surrender value of the policyholder's policy a sum not exceeding the legal reserve that the insurer is required to maintain on the policy. (Source: P.A. 90-418, ef…

(215 ILCS 5/126.2) Sec. 126.2. Definitions. For purposes of this Article: A. "Acceptable collateral" means: (1) As to securities lending transactions, and for the purpose of calculating counterparty exposure amount, cash, cash equivalents, letters of credit, direct obligations of…

(215 ILCS 5/126.20) Sec. 126.20. Additional investment authority. A. Solely for the purpose of acquiring investments that exceed the quantitative limitations of Sections 126.10 through 126.17, an insurer may acquire under this subsection an investment, or engage in investment pra…

(215 ILCS 5/126.21) Sec. 126.21. Applicability. This Part 3 shall apply to the investments and investment practices of property and casualty insurers authorized to transact the kinds of insurance in either or both Class 2 or Class 3 of Section 4 of this Code, subject to the provi…

(215 ILCS 5/126.22) Sec. 126.22. Reserve requirements. A. Reserve requirements. (1) Subject to all other limitations and requirements of this Article, a property and casualty insurer shall maintain an amount at least equal to the lesser of $250,000,000 or 100% of adjusted loss re…

(215 ILCS 5/126.23) Sec. 126.23. General 5% diversification, medium and lower grade investments, and Canadian investments. A. General 5% diversification. (1) Except as otherwise specified in this Article, an insurer shall not acquire directly or indirectly through an investment s…

(215 ILCS 5/126.24) Sec. 126.24. Rated credit instruments. Subject to the limitations of subsection F of this Section, an insurer may acquire rated credit instruments: A. Subject to the limitations of Section 126.23B, but not to the limitations of Section 126.23A except for the l…

(215 ILCS 5/126.25) Sec. 126.25. Insurer investment pools. A. An insurer may acquire investments in investment pools that: (1) Invest only in: (a) Obligations that are rated 1 or 2 by the SVO or have an equivalent of an SVO 1 or 2 rating (or, in the absence of a 1 or 2 rating or …

(215 ILCS 5/126.26) Sec. 126.26. Equity Interests. A. Subject to the limitations of Section 126.23, an insurer may acquire directly, or indirectly through an investment subsidiary, equity interests in business entities organized under the laws of any domestic jurisdiction. B. An …

(215 ILCS 5/126.27) Sec. 126.27. Tangible personal property under lease. A. (1) Subject to the limitations of Section 126.23, an insurer may acquire tangible personal property or equity interests therein located or used wholly or in part within a domestic jurisdiction either dire…

(215 ILCS 5/126.28) Sec. 126.28. Mortgage loans and real estate. A. Mortgage loans. (1) Subject to the limitations of Section 126.23, an insurer may acquire, either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohib…

(215 ILCS 5/126.29) Sec. 126.29. Securities lending and repurchase, reverse repurchase, and dollar roll transactions. An insurer may enter into securities lending, repurchase, reverse repurchase, and dollar roll transactions with business entities, subject to the following requir…

(215 ILCS 5/126.3) Sec. 126.3. General investment qualifications. A. Insurers may acquire, hold or invest in investments or engage in investment practices as set forth in this Article. Insurers may also acquire, hold or invest in investments not conforming to the requirements of …

(215 ILCS 5/126.30) Sec. 126.30. Foreign investments and foreign currency exposure. A. Subject to the limitations of Section 126.23, an insurer may acquire directly or indirectly through an investment subsidiary, foreign investments, or engage in investment practices with persons…

(215 ILCS 5/126.31) Sec. 126.31. Derivative transactions. An insurer may, directly or indirectly through an investment subsidiary, engage in derivative transactions under this Section under the following conditions: A. General conditions. (1) An insurer may use derivative instrum…

(215 ILCS 5/126.32) Sec. 126.32. Additional investment authority. A. Under this Section, an insurer may acquire investments or engage in investment practices of any kind that are not specifically prohibited by Section 126.5 and are not derivative instruments without regard to any…

(215 ILCS 5/126.4) Sec. 126.4. Authorization of investments by the board of directors. A. Within 3 months after the effective date of this amendatory Act of 1997, an insurer's board of directors shall adopt a written plan for acquiring and holding investments and for engaging in …

(215 ILCS 5/126.5) Sec. 126.5. Prohibited investments. An insurer shall not, directly or indirectly: A. Invest in an obligation or security or make a guarantee for the benefit of or in favor of an officer or director of the insurer, except as provided in Section 126.6; B. Invest …

(215 ILCS 5/126.6) Sec. 126.6. Loans to officers and directors. A. (1) Except as provided in Section 126.6B, an insurer shall not directly or indirectly, unless it has notified the Director in writing of its intention to enter into the transaction at least 30 days prior thereto, …

(215 ILCS 5/126.7) Sec. 126.7. Valuation of investments. For the purposes of this Article, the value or amount of an investment acquired or held, or an investment practice engaged in, under this Article, unless otherwise specified in this Code, shall be the value at which assets …

(215 ILCS 5/126.8) Sec. 126.8. Rules. The Director may, in accordance with Section 401 of this Code, promulgate rules implementing the provisions of this Article. (Source: P.A. 90-418, eff. 8-15-97.)

(215 ILCS 5/126.9) Sec. 126.9. Applicability. This Part shall apply to the investments and investment practices of companies authorized to transact business under Class 1 of Section 4 of this Code and other companies whose investments and investment practices are regulated as lif…

(215 ILCS 5/129) Sec. 129. Short title. This Article may be cited as the Risk Management and Own Risk and Solvency Assessment Law. (Source: P.A. 98-910, eff. 7-1-15.)

(215 ILCS 5/129.1) Sec. 129.1. Purpose and scope. The purpose of this Article is to provide the requirements for maintaining a risk management framework and completing an own risk and solvency assessment (ORSA) and provide guidance and instructions for filing an ORSA summary repo…

(215 ILCS 5/129.2) Sec. 129.2. Definitions. In this Article: "Insurance group", for the purpose of conducting an ORSA, means those insurers and affiliates included within an insurance holding company system as defined in Section 131.1 of this Code. "Insurer" has the same meaning …

(215 ILCS 5/129.3) Sec. 129.3. Risk management framework. An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. The requirement of this Section may be satisf…

(215 ILCS 5/129.4) Sec. 129.4. ORSA requirement. Subject to Section 129.7 of this Code, an insurer, or the insurance group of which the insurer is a member, shall regularly conduct an ORSA consistent with a process comparable to the ORSA Guidance Manual. The ORSA shall be conduct…

(215 ILCS 5/129.5) Sec. 129.5. ORSA summary report. (a) Upon the Director's request, and no more than once each year, an insurer shall submit to the Director an ORSA summary report or any combination of reports that together contain the information described in the ORSA Guidance …

(215 ILCS 5/129.6) Sec. 129.6. Contents of ORSA summary report. (a) The ORSA summary report shall be prepared consistent with the ORSA Guidance Manual, subject to the requirements of subsection (b) of this Section. Documentation and supporting information shall be maintained and …

(215 ILCS 5/129.7) Sec. 129.7. Exemption. (a) An insurer shall be exempt from the requirements of this Article if: (1) the insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with…

(215 ILCS 5/129.8) Sec. 129.8. Confidentiality. (a) Documents, materials, or other information, including the ORSA summary report, in the possession or control of the Department that are obtained by, created by, or disclosed to the Director or any other person under this Article,…

(215 ILCS 5/129.9) Sec. 129.9. Sanctions. Any insurer failing, without just cause, to timely file the ORSA summary report as required in this Article shall be required, after notice and hearing, to pay a penalty of $200 for each day's delay, to be recovered by the Director, and t…

(215 ILCS 5/13) (from Ch. 73, par. 625) (Section scheduled to be repealed on January 1, 2027) Sec. 13. Minimum capital and surplus requirements. (1) A company organized after December 31, 1985 under this Article must have and at all times maintain a paid-up capital of not less th…

(215 ILCS 5/130.1) Sec. 130.1. Short title. This Article may be cited as the Corporate Governance Annual Disclosure Law. (Source: P.A. 101-600, eff. 12-6-19.)

(215 ILCS 5/130.2) Sec. 130.2. Purpose and scope. The purpose of this Article is to: (1) provide the Director a summary of an insurer's or insurance group's corporate governance structure, policies, and practices to permit the Director to gain and maintain an understanding of the…

(215 ILCS 5/130.3) Sec. 130.3. Definitions. As used in this Article: "Director" means the Director of Insurance. "Corporate governance annual disclosure" means a confidential report filed by the insurer or insurance group made in accordance with the requirements of this Article. …

(215 ILCS 5/130.4) Sec. 130.4. Disclosure requirement. (a) An insurer, or the insurance group of which the insurer is a member, shall, no later than June 1 of each calendar year, submit to the Director a corporate governance annual disclosure that contains the information describ…