Chapter 215 — INSURANCE

(215 ILCS 5/202) (from Ch. 73, par. 814) Sec. 202. Appointment of special deputies; employees and professional advisors; contracts; qualified immunity. (a) For the purpose of assisting the Director in the performance of the Director's duties under Articles VII, XIII, and XIII 1/2…

(215 ILCS 5/202.1) (from Ch. 73, par. 814.1) Sec. 202.1. The Director may, with the approval of the court, appoint an Advisory Committee, consisting of policyholders, claimants, or other creditors, including Guaranty Funds and Guaranty Associations, should the Director deem it ne…

(215 ILCS 5/203) (from Ch. 73, par. 815) Sec. 203. Exemption from filing fees. The Director shall not be required to pay any fee to any public officer for filing, recording or in any manner authenticating any paper or instrument relating to any proceeding under this article, nor …

(215 ILCS 5/204) (from Ch. 73, par. 816) Sec. 204. Prohibited and voidable transfers and liens. (a)(1) A preference is a transfer of any of the property of a company to or for the benefit of a creditor, for or on account of an antecedent debt, made or suffered by the company with…

(215 ILCS 5/205) (from Ch. 73, par. 817) Sec. 205. Priority of distribution of general assets. (1) The priorities of distribution of general assets from the company's estate is to be as follows: (a) The costs and expenses of administration, including, but not limited to, the foll…

(215 ILCS 5/205.1) Sec. 205.1. Policyholder collateral, deductible reimbursements, and other policyholder obligations. (a) Any collateral held by, for the benefit of, or assigned to the insurer or the Director as rehabilitator or liquidator to secure the obligations of a policyho…

(215 ILCS 5/206) (from Ch. 73, par. 818) Sec. 206. Set-offs or counterclaims. In all cases of mutual debts or mutual credits between the company and another person, such credits and debts shall be set off or counterclaimed and the balance only shall be allowed or paid, provided, …

(215 ILCS 5/206.1) Sec. 206.1. Qualified financial contracts. (a) Notwithstanding any other provision of this Article, including any other provision of this Article permitting the modification of contracts, or other law of a state, no person shall be stayed or prohibited from exe…

(215 ILCS 5/207.1) (from Ch. 73, par. 819.1) Sec. 207.1. Contingent Liability Policies. Upon the entry of an order of liquidation any provision in the policies of a company providing for a contingent liability of the policyholders shall become void. (Source: P.A. 76-715.)

(215 ILCS 5/208) (from Ch. 73, par. 820) Sec. 208. Time to file claims. (1) When in a liquidation, rehabilitation, or conservation proceeding against an insurer under this Article an order has been entered for the filing of claims, all persons who may have claims against such ins…

(215 ILCS 5/209) (from Ch. 73, par. 821) Sec. 209. Proof and allowance of claims. (1) The following provisions shall apply concerning proof and allowance of claims: (a) Proof of claim shall consist of a statement signed by the claimant or on behalf of the claimant that includes a…

(215 ILCS 5/21) (from Ch. 73, par. 633) (Section scheduled to be repealed on January 1, 2027) Sec. 21. Subscription agreement. (1) The company and each subscriber shall enter into an agreement for the subscription to the shares of the company and such agreement shall also constit…

(215 ILCS 5/21.1) (from Ch. 73, par. 633.1) (Section scheduled to be repealed on January 1, 2027) Sec. 21.1. Escrow agreement. The company and the bank or trust company designated in the subscription agreement shall execute an escrow agreement. The escrow agreement shall state th…

(215 ILCS 5/210) (from Ch. 73, par. 822) Sec. 210. Distribution of assets; priorities; unpaid dividends. (1) Any time after the last day fixed for the filing of proofs of claims in the liquidation of a company, the court may, upon the application of the Director authorize him to …

(215 ILCS 5/211.1) Sec. 211.1. Termination of proceedings. (a) When all assets justifying the expense of collection and distribution have been marshaled and distributed under this Code, the Director as liquidator shall petition the court to terminate the liquidation proceedings a…

(215 ILCS 5/212.1) Sec. 212.1. Subpoena and document production. The court shall have jurisdiction, upon, or at any time after the filing of the complaint, upon the petition of the Director to subpoena witnesses and compel their attendance, administer oaths, examine any person un…

(215 ILCS 5/213.5) Sec. 213.5. Severability. The provisions of this Article are severable under Section 1.31 of the Statute on Statutes. (Source: P.A. 89-206, eff. 7-21-95.)

(215 ILCS 5/22) (from Ch. 73, par. 634) (Section scheduled to be repealed on January 1, 2027) Sec. 22. Payments for shares-Promotion expenses. The net proceeds of all subscriptions to shares prior to the issuance of a certificate of authority to the company to transact business s…

(215 ILCS 5/221) (from Ch. 73, par. 833) Sec. 221. Continuation of existing proceedings. Every proceeding heretofore commenced under "An Act in relation to delinquent insurance companies, associations and societies," approved June 26, 1925, as from time to time amended, which is …

(215 ILCS 5/221.1) (from Ch. 73, par. 833.1) Sec. 221.1. Definitions. For the purposes of Sections 221.1 to 221.10, both inclusive, the following terms have the following meanings; (1) "Reciprocal State" means a state wherein: (a) it is provided by law that the insurance supervis…

(215 ILCS 5/221.10) (from Ch. 73, par. 833.10) Sec. 221.10. Declaration of purpose. The purpose of Sections 221.1 to 221.10, both inclusive is to promote uniformity in the liquidation, rehabilitation, reorganization or conservation of insurers doing business in more than one stat…

(215 ILCS 5/221.11) (from Ch. 73, par. 833.11) Sec. 221.11. Proceedings governed by Civil Practice Law and Supreme Court Rules.) The rules of practice, the course and method of procedure in circuit courts as established by the Civil Practice Law and Supreme Court Rules and any am…

(215 ILCS 5/221.12) (from Ch. 73, par. 833.12) Sec. 221.12. Sections 211, 212, 213, 214, 215, 216, 217, 218, 219 and 220, each inclusive, are repealed; provided, however, that every proceeding heretofore commenced under such sections shall be continued as though such sections had…

(215 ILCS 5/221.13) (from Ch. 73, par. 833.13) Sec. 221.13. Uniformity of interpretation. Sections 221.1 to 221.12 each inclusive, of this Article shall be so interpreted and construed as to effectuate their general purpose to make uniform the law of those states that enact the U…

(215 ILCS 5/221.2) (from Ch. 73, par. 833.2) Sec. 221.2. Ancillary delinquency proceedings. After the commencement of delinquency proceedings in a reciprocal state against an insurer domiciliary in such state, a court of competent jurisdiction in this State shall on the petition …

(215 ILCS 5/221.3) (from Ch. 73, par. 833.3) Sec. 221.3. Filing and proving of claims of non-residents against delinquent domiciliary insurers. In any delinquency proceeding begun in this state against a domiciliary insurer of this state, claimants residing in a reciprocal ancill…

(215 ILCS 5/221.4) (from Ch. 73, par. 833.4) Sec. 221.4. Proof of claims of residents in connection with delinquency proceedings in other states. If a delinquency proceeding is commenced in a reciprocal state against an insurer domiciliary in such state, claimants against such in…

(215 ILCS 5/221.5) (from Ch. 73, par. 833.5) Sec. 221.5. Priority of preferred claims. In any delinquency proceeding against a domiciliary insurer of this state, claims owing to residents of ancillary reciprocal states shall be deemed preferred claims if, and only if, like claims…

(215 ILCS 5/221.6) (from Ch. 73, par. 833.6) Sec. 221.6. Priority of special deposit claims. The owners of special deposit claims against an insurer for which a receiver has been appointed in a delinquency proceeding in this or any reciprocal state shall be given priority against…

(215 ILCS 5/221.7) (from Ch. 73, par. 833.7) Sec. 221.7. Priority of secured claims. The owner of a secured claim against an insurer for which a receiver has been appointed in a delinquency proceeding in this or any reciprocal state may surrender his security and file his claim a…

(215 ILCS 5/221.8) (from Ch. 73, par. 833.8) Sec. 221.8. Right of domiciliary receiver to residium of assets of insurers domiciled in ancillary states. The ancillary receiver of assets in this State of insurers domiciliary in reciprocal states and subject to delinquency proceedin…

(215 ILCS 5/221.9) (from Ch. 73, par. 833.9) Sec. 221.9. Attachment and garnishment of assets. In the event of the commencement of delinquency proceedings in any reciprocal state no action or proceeding in the nature of an attachment, garnishment, execution or otherwise, shall be…

(215 ILCS 5/222) (from Ch. 73, par. 834) Sec. 222. Scope of article. This article shall apply to all stock and mutual legal reserve life companies, and to the extent provided in section 281 to assessment legal reserve life companies, authorized to transact in this State the kind …

(215 ILCS 5/223) (from Ch. 73, par. 835) Sec. 223. Director to value policies - Legal standard of valuation. (1) For policies and contracts issued prior to the operative date of the Valuation Manual, the Director shall annually value, or cause to be valued, the reserve liabilitie…

(215 ILCS 5/224) (from Ch. 73, par. 836) Sec. 224. Standard provisions for life policies. (1) After the first day of July, 1937, no policy of life insurance other than industrial, group or annuities and pure endowments with or without return of premiums or of premiums and interes…

(215 ILCS 5/224.05) Sec. 224.05. Military personnel in military service; no lapse of life insurance policy. (a) Except as provided in subsection (b), this Section shall apply to any individual life insurance policy insuring the life of a resident of Illinois who is a member of an…

(215 ILCS 5/224.1) (from Ch. 73, par. 836.1) Sec. 224.1. Employer insurable interest. Notwithstanding any other Section of this Code, an employer or an employer sponsored trust for the benefit of its employees has an insurable interest in the lives of the employer's directors, of…

(215 ILCS 5/225) (from Ch. 73, par. 837) Sec. 225. Prohibited Provisions for Life Policies. (1) After the effective date of this Code no policy of life insurance may be issued or delivered in this State if it includes any of the following provisions: (a) A provision limiting the …

(215 ILCS 5/226) (from Ch. 73, par. 838) Sec. 226. Standard provisions for annuities and pure endowment contracts. (1) After the effective date of this Section and any amendments thereto no annuity or pure endowment contract, except in case of reversionary annuities, survivorship…

(215 ILCS 5/226.1) (from Ch. 73, par. 838.1) Sec. 226.1. Entitled annuity payment options. Annuity contracts and funding agreements may be issued without a life contingency annuity payment option in the following circumstances: (1) to fund benefits under an employee benefit plan …

(215 ILCS 5/227) (from Ch. 73, par. 839) Sec. 227. Standard provisions for reversionary or survivorship annuity contracts. (1) After the effective date of this Code no contract for a reversionary annuity or survivorship annuity shall be issued or delivered in this State unless it…

(215 ILCS 5/228) (from Ch. 73, par. 840) Sec. 228. Industrial Life Insurance Defined. As used in this Code "industrial life insurance" means either that form of life insurance under which the premiums are payable monthly or more often if the face amount of insurance provided in t…

(215 ILCS 5/229) (from Ch. 73, par. 841) Sec. 229. Standard Provisions for Industrial Life Insurance. (1) After the effective date of this Section and any amendments thereto, no policy of industrial life insurance shall be issued or delivered in this State, unless the same shall …

(215 ILCS 5/229.1) (from Ch. 73, par. 841.1) Sec. 229.1. Non-forfeiture benefits and cash surrender values in policies issued prior to the operative date of section 229.2. (1) This subsection shall apply only to policies of life insurance (other than Industrial life insurance) is…

(215 ILCS 5/229.2) (from Ch. 73, par. 841.2) Sec. 229.2. Standard Non-forfeiture Law for Life Insurance. (1) No policy of life insurance, except as stated in subsection (8), shall be delivered or issued for delivery in this State unless it contains in substance the following prov…

(215 ILCS 5/229.3) (from Ch. 73, par. 841.3) Sec. 229.3. Loan provisions in policies. In the case of those policies issued prior to the operative date of Section 229.2 (the Standard Non-forfeiture Law) the loan value referred to in clause (f) of section 224 shall be the reserve a…

(215 ILCS 5/229.4) (from Ch. 73, par. 841.4) Sec. 229.4. (Repealed). (Source: P.A. 93-873, eff. 8-6-04. Repealed internally, eff. 7-1-06.)

(215 ILCS 5/229.4a) Sec. 229.4a. Standard Nonforfeiture Law for Individual Deferred Annuities. (1) Title. This Section shall be known as the Standard Nonforfeiture Law for Individual Deferred Annuities. (2) Applicability. This Section shall not apply to any reinsurance, group ann…

(215 ILCS 5/229.5) (from Ch. 73, par. 841.5) Sec. 229.5. Policy loan interest rates. (a) As used in this Section, unless the context requires otherwise: (1) "Policy" includes certificates issued by a fraternal benefit society and annuity contracts which provide for policy loans. …

(215 ILCS 5/23) (from Ch. 73, par. 635) (Section scheduled to be repealed on January 1, 2027) Sec. 23. Deposit of proceeds of shares - When subscribers deemed shareholders. (1) The cash or securities received by the company upon subscriptions for shares shall be placed in the ban…