A. Any captive insurance company may provide reinsurance on risks ceded by any other insurer; provided, however, that the risks so assumed are the same as the captive insurance company could legally insure on a direct basis.
     The provisions of Section 174.1 shall not apply to any captive insurance company providing reinsurance.

Terms Used In Illinois Compiled Statutes 215 ILCS 5/123C-13

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • 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
  • Control: means the power to direct, or cause the direction of, the management and policies of an entity, other than the power that results from an official position with or corporate office held in the entity. 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
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • 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
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
  • United States: may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14

    •      B. Subject to the provisions of Article XI, any captive insurance company may cede, and may take credit for in the establishment of reserves, all or any part of its risks. Furthermore, in addition to Section 173.1, any pure or industrial insured captive insurance company may take credit, as either an asset or a deduction from liability, for reinsurance so ceded to the extent:
             (1) The reinsurer satisfies all of the following (a)
        
    through (g):
                (a) the principal business of the reinsurer
            
    (other than investments in subsidiaries and other investment activities) is to accept reinsurance from captive insurance companies organized under Article VIIC, of which the company accepting the reinsurance directly or indirectly owns, controls, or holds with power to vote more than 80% of the outstanding voting securities if organized as a stock company or more than 80% of the voting control if organized as a mutual company and to provide insurance related services;
                (b) is licensed to transact insurance or
            
    reinsurance in its jurisdiction of domicile;
                (c) submits to this State‘s authority to examine
            
    its books and records and agrees to pay the cost thereof;
                (d) files annually with the Director a copy of
            
    its most recent audited financial statements;
                (e) maintains a surplus as regards policyholders
            
    in an amount that is not less than $20,000,000;
                (f) files with the Department the following:
                     (i) evidence of its submission to the
                
    jurisdiction of any court of competent jurisdiction in any state of the United States and its agreement to comply with all requirements necessary to give the court jurisdiction and to abide by the final decision of the court or of any appellate court in the event of an appeal; and
                    (ii) an instrument designating the Director
                
    or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by or on behalf of the ceding company;
                (g) has not been the subject of an order of the
            
    Director entered after notice and hearing prohibiting the reinsurer from utilizing this paragraph (1); or
            (2) the taking of credit by the captive insurance
        
    company has otherwise received the prior approval of the Director.
        C. A captive insurance company shall provide notice to the Director of a reinsurance agreement to which the company becomes a party not later than the 30th day after the date of the execution of the agreement.
         D. A captive insurance company shall provide notice of a termination of a previously filed reinsurance agreement to the Director not later than the 30th day after the date of termination.
         E. Notwithstanding Section 123C-15 of this Code, a captive insurance company, with the Director’s approval, may accept risks from and cede risks to or take credit for reserves on risks ceded to:
             (1) a captive reinsurance pool composed only of
        
    other captive insurance companies holding a certificate of authority under this Article or a similar law of another jurisdiction; or
            (2) an affiliated captive insurance company
        
    holding a certificate of authority under this Article or a similar law of another jurisdiction.
      Previous section
    Next section  
     Article VIIC Contents

    LawServer is used by

    New York Times, IRS, USDA, UCLA, DOT