A. The provisions of Article VIII and of Sections 131.2 and 131.3 shall apply to association captive insurance companies.
     B. No pure captive insurance company or industrial insured captive insurance company shall be subject to any restrictions on allowable investments whatever, including those limitations contained in Articles VIII and VIII 1/2; provided, however, that the Director may prohibit or limit any investment or type of investment that threatens the solvency or liquidity of any such company; and provided further that an industrial insured captive insurance company must adhere to the investment policy set forth in its plan of operation as approved from time to time by the Director.

representatives, corporations (whether for profit or not for profit), partnerships, trusts, associations, units of government or other organizations, or any combination of the foregoing, that has been in continuous existence for at least one year, the member organizations of which collectively:

(directly or indirectly) all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer; or

indirectly) over an association captive insurance company organized as a mutual insurer;

representatives, corporations (whether for profit or not for profit), partnerships, trusts, associations, units of government or other organizations, or any combination of the foregoing:

businesses or activities similar or related with respect to the liability of which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and

and hold with power to vote, at least 80% of all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer; or

of the voting control over an association captive insurance company organized as a mutual insurer; or

	subsection (11) of Section 123B-2, domiciled in this State and organized under this Article; however, beginning 6 months after the effective date of this amendatory Act of 1995, a risk retention group shall no longer qualify as an association under this Article. See Illinois Compiled Statutes 215 ILCS 5/123C-1 Captive insurance company: means any pure captive insurance company, association captive insurance company or industrial insured captive insurance company organized under the provisions of this Article. See Illinois Compiled Statutes 215 ILCS 5/123C-1 Director: means the Director of the Department of Insurance. See Illinois Compiled Statutes 215 ILCS 5/123C-1 Industrial insured: means an insured which (together with its affiliates) at the time of its initial procurement of insurance from an industrial insured captive insurance company:          (1) has available to it advice with respect to the
purchase of insurance through the use of the services of a full-time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant; and
(2) pays aggregate annual premiums in excess of
$100,000 for insurance on all risks except for life, accident and health; and
(3) either (i) has at least 25 full-time employees,
or (ii) has gross assets in excess of $3,000,000, or (iii) has annual gross revenues in excess of $5,000,000. See Illinois Compiled Statutes 215 ILCS 5/123C-1 Industrial insured captive insurance company: means any company that insures risks of industrial insureds that are members of the industrial insured group, and their affiliated companies. See Illinois Compiled Statutes 215 ILCS 5/123C-1      C. A captive insurance company may make loans to its affiliates with the prior approval of the Director. Each loan must be evidenced by a note approved by the Director. A captive insurance company may not make a loan of the minimum capital and surplus funds required by this Article.      D. The Director may prohibit or limit an investment that threatens the solvency or liquidity of a captive insurance company.   Previous section Next section    Article VIIC Contents