State Codes and Statutes

Statutes > Illinois > Chapter215 > 1249 > 021500050HArt_V_5


 
    (215 ILCS 5/Art. V.5 heading)
ARTICLE V 1/2. INSURANCE EXCHANGE
(Article scheduled to be repealed on January 1, 2017)

    (215 ILCS 5/107.01)(from Ch. 73, par. 719.01)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.01. Scope. This Article shall apply to all persons transacting insurance business under this Article.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.02)(from Ch. 73, par. 719.02)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.02. Incorporation.
    (a) There is hereby authorized an exchange for the reinsurance and insurance of risks. An exchange formed pursuant to this Article shall be a privately owned organization separate and distinct from the State. Within 60 days after this Act becomes law, the Director of Insurance shall appoint an interim Board of Directors to adopt temporary by‑laws, hire employees, and take such other steps as are authorized or necessary to establish the Exchange. When subscriptions totalling $4,000,000 have been received pursuant to Section 107.07, the Board of Directors shall apply to the Director for a Certificate of Authority. The Director shall approve such Certificate within 30 days unless he determines that the requirements of this Article have not been met and specifies his objections in writing. Within 30 days after receiving proof from the Exchange that the objections have been met, the Director shall approve the application of the Exchange.
    (b) After the effective date of this amendatory Act of 1997, the Director may organize, in accordance with subsection (a), an additional exchange for the reinsurance and insurance of risks. The additional exchange shall comply with the provisions of this Article.
(Source: P.A. 90‑499, eff. 8‑19‑97; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.03)(from Ch. 73, par. 719.03)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.03. Kinds of Business. The syndicates of the Exchange may conduct the kind of insurance business listed in Class 2 and Class 3 of Section 4 of this Code when the Exchange is issued a Certificate of Authority.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.04)(from Ch. 73, par. 719.04)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.04. Certificate of Authority. The Director shall issue a Certificate of Authority to the Exchange when:
        (a) Subscriptions of $4,000,000 have been received by
     the Exchange and,
        (b) The facilities required by Section 107.21 have
     been established.
(Source: P.A. 81‑1509.)

    (215 ILCS 5/107.05)(from Ch. 73, par. 719.05)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.05. Transaction of business.
    (a) Reinsurance may be provided by and through syndicates.
    (b) Only Exchange brokers may present insurance business to the Exchange.
    (c) Syndicates may reinsure risks with syndicates or other persons subject to the rules of the Exchange.
    (d) The minimum premium for any insurance presented to the Exchange shall be $50,000. For group insurance, the minimum premium requirements must be met separately by each group member. However, if an Exchange broker by affidavit states that after diligent effort he was unable to procure the policies or contracts required to protect the property or risk described in the affidavit from companies authorized to transact business in this State, an insurance policy may be issued through the Exchange for any amount of premium. This subsection shall apply only to direct coverage of Illinois domiciled risks.
(Source: P.A. 89‑97, eff. 7‑7‑95; 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.06)(from Ch. 73, par. 719.06)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.06. Authority for syndicates to do business. Subject to the last sentence of this Section, a syndicate may engage in the business of issuing or reinsuring insurance contracts through the Exchange for lines of insurance with respect to which the Exchange has received a Certificate of Authority. A syndicate shall engage in no other business. The Exchange or board may adopt by‑laws or rules or otherwise limit the kinds of business which may be transacted by a syndicate or syndicates.
(Source: P.A. 83‑1362.)

    (215 ILCS 5/107.06a)(from Ch. 73, par. 719.06a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.06a. Organization under Illinois Insurance Code.
    (a) After December 31, 1997, a syndicate or limited syndicate, except for a limited syndicate formed as a partnership or a special purpose limited syndicate, may only be organized pursuant to Sections 7, 8, 10, 11, 12, 14, 14.1 (other than subsection (d) thereof), 15 (other than subsection (d) thereof), 18, 19, 20, 21, 22, 23, 25, 27.1, 28, 28.1, 28.2, 29, 30, 31, 32, 32.1, 33, and 35.1 and Article X of this Code, to carry on the business of a syndicate, or limited syndicate under Article V‑1/2 of this Code; provided that such syndicate or limited syndicate is admitted to the Exchange.
    (b) After December 31, 1997, syndicates and limited syndicates are subject to the following:
        (1) Articles I, IIA, VIII, VIII 1/2, X, XI, XI 1/2,
     XII, XII 1/2, XIII, XIII 1/2, XXIV, XXV (Sections 408 and 412 only), and XXVIII (except for Sections 445, 445.1, 445.2, 445.3, 445.4, and 445.5) of this Code;
        (2) Subsections (2) and (3) of Section 155.04 and
     Sections 13, 132.1 through 140, 141a, 144, 155.01, 155.03, 378, 379.1, 393.1, 395, and 396 of this Code;
        (3) the Reinsurance Intermediary Act; and
        (4) the Producer Controlled Insurer Act.
    (c) No other provision of this Insurance Code shall be applicable to any such syndicate or limited syndicate except as provided in this Article V‑1/2.
(Source: P.A. 91‑278, eff. 7‑23‑99; 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.07)(from Ch. 73, par. 719.07)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.07. Admission. Capitalization:
    Syndicate ‑ at least $2,000,000.
    Subscriber ‑ at least $30,000.
    Special Purpose Limited Syndicate ‑ at least $5,000.
    Fees: (a) Exchange brokers. An annual fee shall be paid to the Exchange by any person who presents risks to the Exchange. The annual fee established by the Exchange shall not exceed $5,000.
    (b) The Exchange may establish annual fees for the admission of syndicates, limited syndicates, and subscribers.
    Standards: The Exchange may establish additional standards for the admission of subscribers and Exchange brokers.
    Assessments: The Exchange may make assessments of subscribers or syndicates for the expenses of operating the Exchange.
(Source: P.A. 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.08)(from Ch. 73, par. 719.08)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.08. Rehabilitation, conservation or liquidation. If the Board or Director of Insurance determines after an examination, audit or pursuant to an Exchange internal hearing, that a syndicate has become insolvent or financially impaired to the extent that its further transaction of business is hazardous to its policyholders, its creditors, or the public, it shall order the syndicate to cease and desist from assuming insurance or reinsurance obligations on the Exchange or take such other action for the protection of policyholders and creditors as provided in this Article.
    Upon issuing a cease and desist order as provided in this Section, the Board shall notify the Director of Insurance of such action. If the Director determines the syndicate to be insolvent or financially impaired, the Director shall report that determination to the Attorney General. The Attorney General shall apply forthwith by complaint on relation of the Director in the name of the People of the State of Illinois, as plaintiff, to the Circuit Court of Cook County, Illinois, for an order to rehabilitate, conserve, or liquidate the defendant syndicate as provided in Article XIII of this Code and for such other relief as the nature of the case and the interests of the policyholders, creditors, or the public may require.
    The Court, upon entering an Order of Rehabilitation, Conservation, or Liquidation, shall appoint the Director of Insurance as Rehabilitator, Conservator, or Liquidator, and the rehabilitation, conservation, or liquidation shall be conducted pursuant to Article XIII of this Code.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.09)(from Ch. 73, par. 719.09)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.09. All written policy applications and written policies shall prominently state that the policy is being submitted or issued through the Exchange; that coverage thereunder is provided solely by the underwriting syndicate or syndicates; that the Exchange is not an insurer; and that the Exchange is not a party to the contract and has no liability thereunder.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.10)(from Ch. 73, par. 719.10)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.10. Limitation of risk.
    (a) The net maximum amount of insurance assumed by a syndicate upon any single risk shall not constitute more than 10% of the capitalization of a syndicate.
    (b) The net maximum amount of insurance assumed by a subscriber upon any single risk shall not constitute more than 10% of the capitalization of a subscriber.
    (c) The Board may establish rules governing the maximum amount of insurance assumed by a syndicate or subscriber or limited syndicate.
    (d) The Board may establish rules limiting broker participation in a syndicate.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.11)(from Ch. 73, par. 719.11)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.11. Illinois Insurance Code. No provision in any part of the Illinois Insurance Code other than this Article shall be applicable to this Article unless such provision is expressly made applicable to this Article.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.12)(from Ch. 73, par. 719.12)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.12. The Director of Insurance may examine the financial records of the Exchange, syndicates, limited syndicates, subscribers and Exchange brokers.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.13)(from Ch. 73, par. 719.13)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.13. Annual statement. The Department shall require an annual statement from the Exchange, which shall be an aggregate of all syndicate's and limited syndicate's financial records for the year ending December 31 immediately preceding. The statement shall be filed with the Department by June 1 of each year.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.13a)(from Ch. 73, par. 719.13a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.13a. Periodic filings of syndicates.
    (a) Every syndicate doing business on the Exchange shall file with the Board and with the Director of Insurance by March 1st in each year a financial statement for the year ending December 31st immediately preceding on forms prescribed by the Director, which shall conform substantially to the form of statement adopted by the National Association of Insurance Commissioners and in use on the date the statement is filed. In the preparation of such annual statement, each syndicate shall compute the combined amount earned during the year from investment income and from underwriting income on the basis of the accounting method incorporated in the underwriting and investment exhibit of such annual statement. Such statement shall be verified by oaths of the president and secretary of the syndicate, or, in their absence, by 2 other principal officers.
    (b) Within 45 days after the end of each quarter, each syndicate shall file with the Director and with the Board quarterly financial statements that conform substantially to the quarterly statement form adopted by the N.A.I.C.
    (c) By March 1 of each year, each syndicate shall file with the Director and the Board a certification of loss reserves signed by a fellow or associate of the Casualty Actuary Society, to be followed on or before June 1 of that year by a detailed report prepared by such actuary.
    (d) By June 1 of each year, each syndicate shall file with the Director and with the Board an annual audited financial report certified by an independent certified public accountant.
    (e) Each syndicate doing business on the Exchange shall file with the Director and the Board by May 1 of each year an annual Form B Registration Statement in accordance with Sections 131.14 and 131.15 of this Code.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.14) (from Ch. 73, par. 719.14)
    Sec. 107.14. (Repealed).
(Source: P.A. 88‑364. Repealed by P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.15)(from Ch. 73, par. 719.15)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15. Definitions.
    Persons: A person is an individual, partnership, association, corporation or limited partnership.
    Syndicate: A syndicate is a subscriber, group of subscribers, limited syndicate or group of limited syndicates which meets the minimum capital requirement of Section 107.07.
    Limited Syndicate: A limited syndicate is a corporation or partnership formed by subscribers for the purpose of joining with syndicates, other subscribers, or limited syndicates to form syndicates or to participate with syndicates in the insurance or reinsurance of risks.
    Subscriber: A subscriber is a person who has made a deposit of money pursuant to Section 107.07 permitting that person to participate as a subscriber in a syndicate or limited syndicate.
    Special Purpose Limited Syndicate: A special purpose limited syndicate is any entity formed for the purposes of participation in the securitization of reinsurance risks in accordance with rules adopted pursuant to Section 107.15b.
    Exchange Broker: A person licensed as an insurance broker in the State of Illinois or as a reinsurance intermediary who is admitted to the Exchange to present applications for insurance.
    Present Applications for Insurance: Means to make an application to a syndicate for an insurance policy.
    Reinsurance: Means reinsuring insurance.
    Minimum Subscription: The subscription capital required for admission as a subscriber to the Exchange. Subscribers shall at all times maintain the minimum capitalization required by this Article.
(Source: P.A. 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.15a)(from Ch. 73, par. 719.15a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15a. Duties and powers of trustees. The Board of Trustees shall have such power as may be necessary for the management and operations of the Exchange and the Association. Such powers shall include but not be limited to:
        (a) establishment of the qualifications,
     requirements, limitations and obligations for syndicates, limited syndicates, subscribers, and Exchange brokers;
        (b) denying access to the Exchange to applicants
     which do not meet such qualifications, requirements, and obligations;
        (c) imposing penalties on syndicates, limited
     syndicates, subscribers and Exchange brokers for violations of the regulations of the Exchange or orders of the Board;
        (d) assessing fees annually on syndicates, limited
     syndicates, subscribers and Exchange brokers, and making assessments on syndicates, limited syndicates and subscribers for the expenses of the Exchange;
        (e) suspending, in whole or in part, access to the
     Exchange or expelling syndicates, limited syndicates, subscribers or Exchange brokers who do not continue to meet the qualifications, requirements, and obligations established by the Board, who fail or refuse to pay penalties, fees, or assessments when due, or whose continued operation the Board determines would be injurious to the best interests of the Exchange, policyholders, claimants, or creditors;
        (f) obtaining immediate access for the benefit of
     the Immediate Access Security Association to the following assets of the impaired or insolvent syndicate:
            (i) the full amount held in its security trust
         or custodial account; and
            (ii) the assets of its subscribers under their
         certificates of guaranty;
        (g) organizing a guaranty mechanism or fund for the
     protection of policyholders.
(Source: P.A. 91‑77, eff. 7‑9‑99; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.15b)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15b. Board rulemaking authority.
    (a) The Board has the authority to adopt such rules as it deems necessary to carry out its duties under this Article and to maintain a well‑regulated marketplace. A syndicate, limited syndicate, subscriber, or exchange broker, as a condition of its authority to transact business through the Exchange, shall comply with this Article, all existing rules of the Exchange, and all rules or modifications of existing rules adopted by the Board and not disapproved by the Director, including, but not limited to, rules extending requirements and obligations with effect after the suspension, expulsion, or voluntary withdrawal of the syndicate, limited syndicate, subscriber, or exchange broker from access to the Exchange.
    (b) A rule or modification to an existing rule adopted by the Board after the effective date of this amendatory Act of 1997 shall be filed with the Director not less than 30 days before the proposed effective date of the rule or modification. The Director, upon written order, may disapprove the rule or modification, in whole or in part, upon a finding that the rule or modification would cause the exchange to be operated in a manner that would be hazardous to the public or its policyholders.
    (c) An order by the Director disapproving a rule or modification shall be deemed to be a final administrative decision and shall be subject to judicial review pursuant to the provisions of the Administrative Review Law.
    (d) Neither the Board nor the Exchange is an agency of the State for purposes of the Illinois Administrative Procedure Act or otherwise.
(Source: P.A. 90‑499, eff. 1‑1‑98; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.16)(from Ch. 73, par. 719.16)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.16. Share Votes. The minimum subscription shall constitute a "share". Each subscriber shall have "share votes" equal to its total subscription divided by the minimum subscription. No fractional share votes may be voted. In determining a subscriber's subscription, only subscriptions which have been deposited with the Exchange for at least 3 months or more shall be counted. The amount of share votes eligible to vote shall be determined 30 days before each meeting.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.17)(from Ch. 73, par. 719.17)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.17. Governance. The business and affairs of the Exchange shall be managed by an Executive Committee with the advice and consent of the Board of Trustees.
    There shall be 2 classes of trustees: Subscriber trustees and public trustees. Both public trustees and subscriber trustees shall be elected by a majority vote of the subscribers. In addition, the public trustees shall be approved by the Director.
    The trustees shall be 13 in number. There shall be at least 5 public trustees who shall be individual persons who are not insurers, subscribers, exchange brokers, or employees of insurers, subscribers, exchange brokers, syndicates, or affiliates thereof.
    The Executive Committee shall be composed of 3 public trustees elected by the Board. Members of the Executive Committee shall serve for a term of 3 years, except that of the initial members of the Executive Committee, one member shall serve for a term of one year, one member shall serve for a term of 2 years, and one member shall serve for a term of 3 years. The terms of the initial members of the Executive Committee shall be determined by lot.
    All decisions of the Executive Committee, except those of a ministerial nature that may be delegated by the Board, shall be subject to the approval of the Board. All action of the Executive Committee shall be approved unless disapproved on a recorded vote by 9 members of the Board.
(Source: P.A. 90‑499, eff. 1‑1‑98; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.18)(from Ch. 73, par. 719.18)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.18. Voting for trustees. Each subscriber shall have the number of votes equal to its total subscription divided by the minimum subscription. Trustees shall be elected by a majority of the votes cast for that trustee position.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.19)(from Ch. 73, par. 719.19)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.19. By‑laws. The subscribers shall adopt such by‑laws as proposed by the Board or subscribers constituting 5% or more of the subscriber sha

State Codes and Statutes

Statutes > Illinois > Chapter215 > 1249 > 021500050HArt_V_5


 
    (215 ILCS 5/Art. V.5 heading)
ARTICLE V 1/2. INSURANCE EXCHANGE
(Article scheduled to be repealed on January 1, 2017)

    (215 ILCS 5/107.01)(from Ch. 73, par. 719.01)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.01. Scope. This Article shall apply to all persons transacting insurance business under this Article.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.02)(from Ch. 73, par. 719.02)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.02. Incorporation.
    (a) There is hereby authorized an exchange for the reinsurance and insurance of risks. An exchange formed pursuant to this Article shall be a privately owned organization separate and distinct from the State. Within 60 days after this Act becomes law, the Director of Insurance shall appoint an interim Board of Directors to adopt temporary by‑laws, hire employees, and take such other steps as are authorized or necessary to establish the Exchange. When subscriptions totalling $4,000,000 have been received pursuant to Section 107.07, the Board of Directors shall apply to the Director for a Certificate of Authority. The Director shall approve such Certificate within 30 days unless he determines that the requirements of this Article have not been met and specifies his objections in writing. Within 30 days after receiving proof from the Exchange that the objections have been met, the Director shall approve the application of the Exchange.
    (b) After the effective date of this amendatory Act of 1997, the Director may organize, in accordance with subsection (a), an additional exchange for the reinsurance and insurance of risks. The additional exchange shall comply with the provisions of this Article.
(Source: P.A. 90‑499, eff. 8‑19‑97; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.03)(from Ch. 73, par. 719.03)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.03. Kinds of Business. The syndicates of the Exchange may conduct the kind of insurance business listed in Class 2 and Class 3 of Section 4 of this Code when the Exchange is issued a Certificate of Authority.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.04)(from Ch. 73, par. 719.04)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.04. Certificate of Authority. The Director shall issue a Certificate of Authority to the Exchange when:
        (a) Subscriptions of $4,000,000 have been received by
     the Exchange and,
        (b) The facilities required by Section 107.21 have
     been established.
(Source: P.A. 81‑1509.)

    (215 ILCS 5/107.05)(from Ch. 73, par. 719.05)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.05. Transaction of business.
    (a) Reinsurance may be provided by and through syndicates.
    (b) Only Exchange brokers may present insurance business to the Exchange.
    (c) Syndicates may reinsure risks with syndicates or other persons subject to the rules of the Exchange.
    (d) The minimum premium for any insurance presented to the Exchange shall be $50,000. For group insurance, the minimum premium requirements must be met separately by each group member. However, if an Exchange broker by affidavit states that after diligent effort he was unable to procure the policies or contracts required to protect the property or risk described in the affidavit from companies authorized to transact business in this State, an insurance policy may be issued through the Exchange for any amount of premium. This subsection shall apply only to direct coverage of Illinois domiciled risks.
(Source: P.A. 89‑97, eff. 7‑7‑95; 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.06)(from Ch. 73, par. 719.06)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.06. Authority for syndicates to do business. Subject to the last sentence of this Section, a syndicate may engage in the business of issuing or reinsuring insurance contracts through the Exchange for lines of insurance with respect to which the Exchange has received a Certificate of Authority. A syndicate shall engage in no other business. The Exchange or board may adopt by‑laws or rules or otherwise limit the kinds of business which may be transacted by a syndicate or syndicates.
(Source: P.A. 83‑1362.)

    (215 ILCS 5/107.06a)(from Ch. 73, par. 719.06a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.06a. Organization under Illinois Insurance Code.
    (a) After December 31, 1997, a syndicate or limited syndicate, except for a limited syndicate formed as a partnership or a special purpose limited syndicate, may only be organized pursuant to Sections 7, 8, 10, 11, 12, 14, 14.1 (other than subsection (d) thereof), 15 (other than subsection (d) thereof), 18, 19, 20, 21, 22, 23, 25, 27.1, 28, 28.1, 28.2, 29, 30, 31, 32, 32.1, 33, and 35.1 and Article X of this Code, to carry on the business of a syndicate, or limited syndicate under Article V‑1/2 of this Code; provided that such syndicate or limited syndicate is admitted to the Exchange.
    (b) After December 31, 1997, syndicates and limited syndicates are subject to the following:
        (1) Articles I, IIA, VIII, VIII 1/2, X, XI, XI 1/2,
     XII, XII 1/2, XIII, XIII 1/2, XXIV, XXV (Sections 408 and 412 only), and XXVIII (except for Sections 445, 445.1, 445.2, 445.3, 445.4, and 445.5) of this Code;
        (2) Subsections (2) and (3) of Section 155.04 and
     Sections 13, 132.1 through 140, 141a, 144, 155.01, 155.03, 378, 379.1, 393.1, 395, and 396 of this Code;
        (3) the Reinsurance Intermediary Act; and
        (4) the Producer Controlled Insurer Act.
    (c) No other provision of this Insurance Code shall be applicable to any such syndicate or limited syndicate except as provided in this Article V‑1/2.
(Source: P.A. 91‑278, eff. 7‑23‑99; 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.07)(from Ch. 73, par. 719.07)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.07. Admission. Capitalization:
    Syndicate ‑ at least $2,000,000.
    Subscriber ‑ at least $30,000.
    Special Purpose Limited Syndicate ‑ at least $5,000.
    Fees: (a) Exchange brokers. An annual fee shall be paid to the Exchange by any person who presents risks to the Exchange. The annual fee established by the Exchange shall not exceed $5,000.
    (b) The Exchange may establish annual fees for the admission of syndicates, limited syndicates, and subscribers.
    Standards: The Exchange may establish additional standards for the admission of subscribers and Exchange brokers.
    Assessments: The Exchange may make assessments of subscribers or syndicates for the expenses of operating the Exchange.
(Source: P.A. 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.08)(from Ch. 73, par. 719.08)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.08. Rehabilitation, conservation or liquidation. If the Board or Director of Insurance determines after an examination, audit or pursuant to an Exchange internal hearing, that a syndicate has become insolvent or financially impaired to the extent that its further transaction of business is hazardous to its policyholders, its creditors, or the public, it shall order the syndicate to cease and desist from assuming insurance or reinsurance obligations on the Exchange or take such other action for the protection of policyholders and creditors as provided in this Article.
    Upon issuing a cease and desist order as provided in this Section, the Board shall notify the Director of Insurance of such action. If the Director determines the syndicate to be insolvent or financially impaired, the Director shall report that determination to the Attorney General. The Attorney General shall apply forthwith by complaint on relation of the Director in the name of the People of the State of Illinois, as plaintiff, to the Circuit Court of Cook County, Illinois, for an order to rehabilitate, conserve, or liquidate the defendant syndicate as provided in Article XIII of this Code and for such other relief as the nature of the case and the interests of the policyholders, creditors, or the public may require.
    The Court, upon entering an Order of Rehabilitation, Conservation, or Liquidation, shall appoint the Director of Insurance as Rehabilitator, Conservator, or Liquidator, and the rehabilitation, conservation, or liquidation shall be conducted pursuant to Article XIII of this Code.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.09)(from Ch. 73, par. 719.09)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.09. All written policy applications and written policies shall prominently state that the policy is being submitted or issued through the Exchange; that coverage thereunder is provided solely by the underwriting syndicate or syndicates; that the Exchange is not an insurer; and that the Exchange is not a party to the contract and has no liability thereunder.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.10)(from Ch. 73, par. 719.10)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.10. Limitation of risk.
    (a) The net maximum amount of insurance assumed by a syndicate upon any single risk shall not constitute more than 10% of the capitalization of a syndicate.
    (b) The net maximum amount of insurance assumed by a subscriber upon any single risk shall not constitute more than 10% of the capitalization of a subscriber.
    (c) The Board may establish rules governing the maximum amount of insurance assumed by a syndicate or subscriber or limited syndicate.
    (d) The Board may establish rules limiting broker participation in a syndicate.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.11)(from Ch. 73, par. 719.11)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.11. Illinois Insurance Code. No provision in any part of the Illinois Insurance Code other than this Article shall be applicable to this Article unless such provision is expressly made applicable to this Article.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.12)(from Ch. 73, par. 719.12)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.12. The Director of Insurance may examine the financial records of the Exchange, syndicates, limited syndicates, subscribers and Exchange brokers.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.13)(from Ch. 73, par. 719.13)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.13. Annual statement. The Department shall require an annual statement from the Exchange, which shall be an aggregate of all syndicate's and limited syndicate's financial records for the year ending December 31 immediately preceding. The statement shall be filed with the Department by June 1 of each year.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.13a)(from Ch. 73, par. 719.13a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.13a. Periodic filings of syndicates.
    (a) Every syndicate doing business on the Exchange shall file with the Board and with the Director of Insurance by March 1st in each year a financial statement for the year ending December 31st immediately preceding on forms prescribed by the Director, which shall conform substantially to the form of statement adopted by the National Association of Insurance Commissioners and in use on the date the statement is filed. In the preparation of such annual statement, each syndicate shall compute the combined amount earned during the year from investment income and from underwriting income on the basis of the accounting method incorporated in the underwriting and investment exhibit of such annual statement. Such statement shall be verified by oaths of the president and secretary of the syndicate, or, in their absence, by 2 other principal officers.
    (b) Within 45 days after the end of each quarter, each syndicate shall file with the Director and with the Board quarterly financial statements that conform substantially to the quarterly statement form adopted by the N.A.I.C.
    (c) By March 1 of each year, each syndicate shall file with the Director and the Board a certification of loss reserves signed by a fellow or associate of the Casualty Actuary Society, to be followed on or before June 1 of that year by a detailed report prepared by such actuary.
    (d) By June 1 of each year, each syndicate shall file with the Director and with the Board an annual audited financial report certified by an independent certified public accountant.
    (e) Each syndicate doing business on the Exchange shall file with the Director and the Board by May 1 of each year an annual Form B Registration Statement in accordance with Sections 131.14 and 131.15 of this Code.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.14) (from Ch. 73, par. 719.14)
    Sec. 107.14. (Repealed).
(Source: P.A. 88‑364. Repealed by P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.15)(from Ch. 73, par. 719.15)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15. Definitions.
    Persons: A person is an individual, partnership, association, corporation or limited partnership.
    Syndicate: A syndicate is a subscriber, group of subscribers, limited syndicate or group of limited syndicates which meets the minimum capital requirement of Section 107.07.
    Limited Syndicate: A limited syndicate is a corporation or partnership formed by subscribers for the purpose of joining with syndicates, other subscribers, or limited syndicates to form syndicates or to participate with syndicates in the insurance or reinsurance of risks.
    Subscriber: A subscriber is a person who has made a deposit of money pursuant to Section 107.07 permitting that person to participate as a subscriber in a syndicate or limited syndicate.
    Special Purpose Limited Syndicate: A special purpose limited syndicate is any entity formed for the purposes of participation in the securitization of reinsurance risks in accordance with rules adopted pursuant to Section 107.15b.
    Exchange Broker: A person licensed as an insurance broker in the State of Illinois or as a reinsurance intermediary who is admitted to the Exchange to present applications for insurance.
    Present Applications for Insurance: Means to make an application to a syndicate for an insurance policy.
    Reinsurance: Means reinsuring insurance.
    Minimum Subscription: The subscription capital required for admission as a subscriber to the Exchange. Subscribers shall at all times maintain the minimum capitalization required by this Article.
(Source: P.A. 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.15a)(from Ch. 73, par. 719.15a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15a. Duties and powers of trustees. The Board of Trustees shall have such power as may be necessary for the management and operations of the Exchange and the Association. Such powers shall include but not be limited to:
        (a) establishment of the qualifications,
     requirements, limitations and obligations for syndicates, limited syndicates, subscribers, and Exchange brokers;
        (b) denying access to the Exchange to applicants
     which do not meet such qualifications, requirements, and obligations;
        (c) imposing penalties on syndicates, limited
     syndicates, subscribers and Exchange brokers for violations of the regulations of the Exchange or orders of the Board;
        (d) assessing fees annually on syndicates, limited
     syndicates, subscribers and Exchange brokers, and making assessments on syndicates, limited syndicates and subscribers for the expenses of the Exchange;
        (e) suspending, in whole or in part, access to the
     Exchange or expelling syndicates, limited syndicates, subscribers or Exchange brokers who do not continue to meet the qualifications, requirements, and obligations established by the Board, who fail or refuse to pay penalties, fees, or assessments when due, or whose continued operation the Board determines would be injurious to the best interests of the Exchange, policyholders, claimants, or creditors;
        (f) obtaining immediate access for the benefit of
     the Immediate Access Security Association to the following assets of the impaired or insolvent syndicate:
            (i) the full amount held in its security trust
         or custodial account; and
            (ii) the assets of its subscribers under their
         certificates of guaranty;
        (g) organizing a guaranty mechanism or fund for the
     protection of policyholders.
(Source: P.A. 91‑77, eff. 7‑9‑99; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.15b)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15b. Board rulemaking authority.
    (a) The Board has the authority to adopt such rules as it deems necessary to carry out its duties under this Article and to maintain a well‑regulated marketplace. A syndicate, limited syndicate, subscriber, or exchange broker, as a condition of its authority to transact business through the Exchange, shall comply with this Article, all existing rules of the Exchange, and all rules or modifications of existing rules adopted by the Board and not disapproved by the Director, including, but not limited to, rules extending requirements and obligations with effect after the suspension, expulsion, or voluntary withdrawal of the syndicate, limited syndicate, subscriber, or exchange broker from access to the Exchange.
    (b) A rule or modification to an existing rule adopted by the Board after the effective date of this amendatory Act of 1997 shall be filed with the Director not less than 30 days before the proposed effective date of the rule or modification. The Director, upon written order, may disapprove the rule or modification, in whole or in part, upon a finding that the rule or modification would cause the exchange to be operated in a manner that would be hazardous to the public or its policyholders.
    (c) An order by the Director disapproving a rule or modification shall be deemed to be a final administrative decision and shall be subject to judicial review pursuant to the provisions of the Administrative Review Law.
    (d) Neither the Board nor the Exchange is an agency of the State for purposes of the Illinois Administrative Procedure Act or otherwise.
(Source: P.A. 90‑499, eff. 1‑1‑98; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.16)(from Ch. 73, par. 719.16)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.16. Share Votes. The minimum subscription shall constitute a "share". Each subscriber shall have "share votes" equal to its total subscription divided by the minimum subscription. No fractional share votes may be voted. In determining a subscriber's subscription, only subscriptions which have been deposited with the Exchange for at least 3 months or more shall be counted. The amount of share votes eligible to vote shall be determined 30 days before each meeting.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.17)(from Ch. 73, par. 719.17)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.17. Governance. The business and affairs of the Exchange shall be managed by an Executive Committee with the advice and consent of the Board of Trustees.
    There shall be 2 classes of trustees: Subscriber trustees and public trustees. Both public trustees and subscriber trustees shall be elected by a majority vote of the subscribers. In addition, the public trustees shall be approved by the Director.
    The trustees shall be 13 in number. There shall be at least 5 public trustees who shall be individual persons who are not insurers, subscribers, exchange brokers, or employees of insurers, subscribers, exchange brokers, syndicates, or affiliates thereof.
    The Executive Committee shall be composed of 3 public trustees elected by the Board. Members of the Executive Committee shall serve for a term of 3 years, except that of the initial members of the Executive Committee, one member shall serve for a term of one year, one member shall serve for a term of 2 years, and one member shall serve for a term of 3 years. The terms of the initial members of the Executive Committee shall be determined by lot.
    All decisions of the Executive Committee, except those of a ministerial nature that may be delegated by the Board, shall be subject to the approval of the Board. All action of the Executive Committee shall be approved unless disapproved on a recorded vote by 9 members of the Board.
(Source: P.A. 90‑499, eff. 1‑1‑98; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.18)(from Ch. 73, par. 719.18)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.18. Voting for trustees. Each subscriber shall have the number of votes equal to its total subscription divided by the minimum subscription. Trustees shall be elected by a majority of the votes cast for that trustee position.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.19)(from Ch. 73, par. 719.19)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.19. By‑laws. The subscribers shall adopt such by‑laws as proposed by the Board or subscribers constituting 5% or more of the subscriber sha

State Codes and Statutes


Back To Homepage

State Codes and Statutes

Statutes > Illinois > Chapter215 > 1249 > 021500050HArt_V_5


 
    (215 ILCS 5/Art. V.5 heading)
ARTICLE V 1/2. INSURANCE EXCHANGE
(Article scheduled to be repealed on January 1, 2017)

    (215 ILCS 5/107.01)(from Ch. 73, par. 719.01)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.01. Scope. This Article shall apply to all persons transacting insurance business under this Article.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.02)(from Ch. 73, par. 719.02)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.02. Incorporation.
    (a) There is hereby authorized an exchange for the reinsurance and insurance of risks. An exchange formed pursuant to this Article shall be a privately owned organization separate and distinct from the State. Within 60 days after this Act becomes law, the Director of Insurance shall appoint an interim Board of Directors to adopt temporary by‑laws, hire employees, and take such other steps as are authorized or necessary to establish the Exchange. When subscriptions totalling $4,000,000 have been received pursuant to Section 107.07, the Board of Directors shall apply to the Director for a Certificate of Authority. The Director shall approve such Certificate within 30 days unless he determines that the requirements of this Article have not been met and specifies his objections in writing. Within 30 days after receiving proof from the Exchange that the objections have been met, the Director shall approve the application of the Exchange.
    (b) After the effective date of this amendatory Act of 1997, the Director may organize, in accordance with subsection (a), an additional exchange for the reinsurance and insurance of risks. The additional exchange shall comply with the provisions of this Article.
(Source: P.A. 90‑499, eff. 8‑19‑97; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.03)(from Ch. 73, par. 719.03)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.03. Kinds of Business. The syndicates of the Exchange may conduct the kind of insurance business listed in Class 2 and Class 3 of Section 4 of this Code when the Exchange is issued a Certificate of Authority.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.04)(from Ch. 73, par. 719.04)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.04. Certificate of Authority. The Director shall issue a Certificate of Authority to the Exchange when:
        (a) Subscriptions of $4,000,000 have been received by
     the Exchange and,
        (b) The facilities required by Section 107.21 have
     been established.
(Source: P.A. 81‑1509.)

    (215 ILCS 5/107.05)(from Ch. 73, par. 719.05)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.05. Transaction of business.
    (a) Reinsurance may be provided by and through syndicates.
    (b) Only Exchange brokers may present insurance business to the Exchange.
    (c) Syndicates may reinsure risks with syndicates or other persons subject to the rules of the Exchange.
    (d) The minimum premium for any insurance presented to the Exchange shall be $50,000. For group insurance, the minimum premium requirements must be met separately by each group member. However, if an Exchange broker by affidavit states that after diligent effort he was unable to procure the policies or contracts required to protect the property or risk described in the affidavit from companies authorized to transact business in this State, an insurance policy may be issued through the Exchange for any amount of premium. This subsection shall apply only to direct coverage of Illinois domiciled risks.
(Source: P.A. 89‑97, eff. 7‑7‑95; 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.06)(from Ch. 73, par. 719.06)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.06. Authority for syndicates to do business. Subject to the last sentence of this Section, a syndicate may engage in the business of issuing or reinsuring insurance contracts through the Exchange for lines of insurance with respect to which the Exchange has received a Certificate of Authority. A syndicate shall engage in no other business. The Exchange or board may adopt by‑laws or rules or otherwise limit the kinds of business which may be transacted by a syndicate or syndicates.
(Source: P.A. 83‑1362.)

    (215 ILCS 5/107.06a)(from Ch. 73, par. 719.06a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.06a. Organization under Illinois Insurance Code.
    (a) After December 31, 1997, a syndicate or limited syndicate, except for a limited syndicate formed as a partnership or a special purpose limited syndicate, may only be organized pursuant to Sections 7, 8, 10, 11, 12, 14, 14.1 (other than subsection (d) thereof), 15 (other than subsection (d) thereof), 18, 19, 20, 21, 22, 23, 25, 27.1, 28, 28.1, 28.2, 29, 30, 31, 32, 32.1, 33, and 35.1 and Article X of this Code, to carry on the business of a syndicate, or limited syndicate under Article V‑1/2 of this Code; provided that such syndicate or limited syndicate is admitted to the Exchange.
    (b) After December 31, 1997, syndicates and limited syndicates are subject to the following:
        (1) Articles I, IIA, VIII, VIII 1/2, X, XI, XI 1/2,
     XII, XII 1/2, XIII, XIII 1/2, XXIV, XXV (Sections 408 and 412 only), and XXVIII (except for Sections 445, 445.1, 445.2, 445.3, 445.4, and 445.5) of this Code;
        (2) Subsections (2) and (3) of Section 155.04 and
     Sections 13, 132.1 through 140, 141a, 144, 155.01, 155.03, 378, 379.1, 393.1, 395, and 396 of this Code;
        (3) the Reinsurance Intermediary Act; and
        (4) the Producer Controlled Insurer Act.
    (c) No other provision of this Insurance Code shall be applicable to any such syndicate or limited syndicate except as provided in this Article V‑1/2.
(Source: P.A. 91‑278, eff. 7‑23‑99; 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.07)(from Ch. 73, par. 719.07)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.07. Admission. Capitalization:
    Syndicate ‑ at least $2,000,000.
    Subscriber ‑ at least $30,000.
    Special Purpose Limited Syndicate ‑ at least $5,000.
    Fees: (a) Exchange brokers. An annual fee shall be paid to the Exchange by any person who presents risks to the Exchange. The annual fee established by the Exchange shall not exceed $5,000.
    (b) The Exchange may establish annual fees for the admission of syndicates, limited syndicates, and subscribers.
    Standards: The Exchange may establish additional standards for the admission of subscribers and Exchange brokers.
    Assessments: The Exchange may make assessments of subscribers or syndicates for the expenses of operating the Exchange.
(Source: P.A. 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.08)(from Ch. 73, par. 719.08)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.08. Rehabilitation, conservation or liquidation. If the Board or Director of Insurance determines after an examination, audit or pursuant to an Exchange internal hearing, that a syndicate has become insolvent or financially impaired to the extent that its further transaction of business is hazardous to its policyholders, its creditors, or the public, it shall order the syndicate to cease and desist from assuming insurance or reinsurance obligations on the Exchange or take such other action for the protection of policyholders and creditors as provided in this Article.
    Upon issuing a cease and desist order as provided in this Section, the Board shall notify the Director of Insurance of such action. If the Director determines the syndicate to be insolvent or financially impaired, the Director shall report that determination to the Attorney General. The Attorney General shall apply forthwith by complaint on relation of the Director in the name of the People of the State of Illinois, as plaintiff, to the Circuit Court of Cook County, Illinois, for an order to rehabilitate, conserve, or liquidate the defendant syndicate as provided in Article XIII of this Code and for such other relief as the nature of the case and the interests of the policyholders, creditors, or the public may require.
    The Court, upon entering an Order of Rehabilitation, Conservation, or Liquidation, shall appoint the Director of Insurance as Rehabilitator, Conservator, or Liquidator, and the rehabilitation, conservation, or liquidation shall be conducted pursuant to Article XIII of this Code.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.09)(from Ch. 73, par. 719.09)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.09. All written policy applications and written policies shall prominently state that the policy is being submitted or issued through the Exchange; that coverage thereunder is provided solely by the underwriting syndicate or syndicates; that the Exchange is not an insurer; and that the Exchange is not a party to the contract and has no liability thereunder.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.10)(from Ch. 73, par. 719.10)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.10. Limitation of risk.
    (a) The net maximum amount of insurance assumed by a syndicate upon any single risk shall not constitute more than 10% of the capitalization of a syndicate.
    (b) The net maximum amount of insurance assumed by a subscriber upon any single risk shall not constitute more than 10% of the capitalization of a subscriber.
    (c) The Board may establish rules governing the maximum amount of insurance assumed by a syndicate or subscriber or limited syndicate.
    (d) The Board may establish rules limiting broker participation in a syndicate.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.11)(from Ch. 73, par. 719.11)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.11. Illinois Insurance Code. No provision in any part of the Illinois Insurance Code other than this Article shall be applicable to this Article unless such provision is expressly made applicable to this Article.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.12)(from Ch. 73, par. 719.12)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.12. The Director of Insurance may examine the financial records of the Exchange, syndicates, limited syndicates, subscribers and Exchange brokers.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.13)(from Ch. 73, par. 719.13)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.13. Annual statement. The Department shall require an annual statement from the Exchange, which shall be an aggregate of all syndicate's and limited syndicate's financial records for the year ending December 31 immediately preceding. The statement shall be filed with the Department by June 1 of each year.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.13a)(from Ch. 73, par. 719.13a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.13a. Periodic filings of syndicates.
    (a) Every syndicate doing business on the Exchange shall file with the Board and with the Director of Insurance by March 1st in each year a financial statement for the year ending December 31st immediately preceding on forms prescribed by the Director, which shall conform substantially to the form of statement adopted by the National Association of Insurance Commissioners and in use on the date the statement is filed. In the preparation of such annual statement, each syndicate shall compute the combined amount earned during the year from investment income and from underwriting income on the basis of the accounting method incorporated in the underwriting and investment exhibit of such annual statement. Such statement shall be verified by oaths of the president and secretary of the syndicate, or, in their absence, by 2 other principal officers.
    (b) Within 45 days after the end of each quarter, each syndicate shall file with the Director and with the Board quarterly financial statements that conform substantially to the quarterly statement form adopted by the N.A.I.C.
    (c) By March 1 of each year, each syndicate shall file with the Director and the Board a certification of loss reserves signed by a fellow or associate of the Casualty Actuary Society, to be followed on or before June 1 of that year by a detailed report prepared by such actuary.
    (d) By June 1 of each year, each syndicate shall file with the Director and with the Board an annual audited financial report certified by an independent certified public accountant.
    (e) Each syndicate doing business on the Exchange shall file with the Director and the Board by May 1 of each year an annual Form B Registration Statement in accordance with Sections 131.14 and 131.15 of this Code.
(Source: P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.14) (from Ch. 73, par. 719.14)
    Sec. 107.14. (Repealed).
(Source: P.A. 88‑364. Repealed by P.A. 90‑499, eff. 1‑1‑98.)

    (215 ILCS 5/107.15)(from Ch. 73, par. 719.15)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15. Definitions.
    Persons: A person is an individual, partnership, association, corporation or limited partnership.
    Syndicate: A syndicate is a subscriber, group of subscribers, limited syndicate or group of limited syndicates which meets the minimum capital requirement of Section 107.07.
    Limited Syndicate: A limited syndicate is a corporation or partnership formed by subscribers for the purpose of joining with syndicates, other subscribers, or limited syndicates to form syndicates or to participate with syndicates in the insurance or reinsurance of risks.
    Subscriber: A subscriber is a person who has made a deposit of money pursuant to Section 107.07 permitting that person to participate as a subscriber in a syndicate or limited syndicate.
    Special Purpose Limited Syndicate: A special purpose limited syndicate is any entity formed for the purposes of participation in the securitization of reinsurance risks in accordance with rules adopted pursuant to Section 107.15b.
    Exchange Broker: A person licensed as an insurance broker in the State of Illinois or as a reinsurance intermediary who is admitted to the Exchange to present applications for insurance.
    Present Applications for Insurance: Means to make an application to a syndicate for an insurance policy.
    Reinsurance: Means reinsuring insurance.
    Minimum Subscription: The subscription capital required for admission as a subscriber to the Exchange. Subscribers shall at all times maintain the minimum capitalization required by this Article.
(Source: P.A. 92‑74, eff. 7‑12‑01.)

    (215 ILCS 5/107.15a)(from Ch. 73, par. 719.15a)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15a. Duties and powers of trustees. The Board of Trustees shall have such power as may be necessary for the management and operations of the Exchange and the Association. Such powers shall include but not be limited to:
        (a) establishment of the qualifications,
     requirements, limitations and obligations for syndicates, limited syndicates, subscribers, and Exchange brokers;
        (b) denying access to the Exchange to applicants
     which do not meet such qualifications, requirements, and obligations;
        (c) imposing penalties on syndicates, limited
     syndicates, subscribers and Exchange brokers for violations of the regulations of the Exchange or orders of the Board;
        (d) assessing fees annually on syndicates, limited
     syndicates, subscribers and Exchange brokers, and making assessments on syndicates, limited syndicates and subscribers for the expenses of the Exchange;
        (e) suspending, in whole or in part, access to the
     Exchange or expelling syndicates, limited syndicates, subscribers or Exchange brokers who do not continue to meet the qualifications, requirements, and obligations established by the Board, who fail or refuse to pay penalties, fees, or assessments when due, or whose continued operation the Board determines would be injurious to the best interests of the Exchange, policyholders, claimants, or creditors;
        (f) obtaining immediate access for the benefit of
     the Immediate Access Security Association to the following assets of the impaired or insolvent syndicate:
            (i) the full amount held in its security trust
         or custodial account; and
            (ii) the assets of its subscribers under their
         certificates of guaranty;
        (g) organizing a guaranty mechanism or fund for the
     protection of policyholders.
(Source: P.A. 91‑77, eff. 7‑9‑99; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.15b)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.15b. Board rulemaking authority.
    (a) The Board has the authority to adopt such rules as it deems necessary to carry out its duties under this Article and to maintain a well‑regulated marketplace. A syndicate, limited syndicate, subscriber, or exchange broker, as a condition of its authority to transact business through the Exchange, shall comply with this Article, all existing rules of the Exchange, and all rules or modifications of existing rules adopted by the Board and not disapproved by the Director, including, but not limited to, rules extending requirements and obligations with effect after the suspension, expulsion, or voluntary withdrawal of the syndicate, limited syndicate, subscriber, or exchange broker from access to the Exchange.
    (b) A rule or modification to an existing rule adopted by the Board after the effective date of this amendatory Act of 1997 shall be filed with the Director not less than 30 days before the proposed effective date of the rule or modification. The Director, upon written order, may disapprove the rule or modification, in whole or in part, upon a finding that the rule or modification would cause the exchange to be operated in a manner that would be hazardous to the public or its policyholders.
    (c) An order by the Director disapproving a rule or modification shall be deemed to be a final administrative decision and shall be subject to judicial review pursuant to the provisions of the Administrative Review Law.
    (d) Neither the Board nor the Exchange is an agency of the State for purposes of the Illinois Administrative Procedure Act or otherwise.
(Source: P.A. 90‑499, eff. 1‑1‑98; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.16)(from Ch. 73, par. 719.16)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.16. Share Votes. The minimum subscription shall constitute a "share". Each subscriber shall have "share votes" equal to its total subscription divided by the minimum subscription. No fractional share votes may be voted. In determining a subscriber's subscription, only subscriptions which have been deposited with the Exchange for at least 3 months or more shall be counted. The amount of share votes eligible to vote shall be determined 30 days before each meeting.
(Source: P.A. 81‑1047.)

    (215 ILCS 5/107.17)(from Ch. 73, par. 719.17)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.17. Governance. The business and affairs of the Exchange shall be managed by an Executive Committee with the advice and consent of the Board of Trustees.
    There shall be 2 classes of trustees: Subscriber trustees and public trustees. Both public trustees and subscriber trustees shall be elected by a majority vote of the subscribers. In addition, the public trustees shall be approved by the Director.
    The trustees shall be 13 in number. There shall be at least 5 public trustees who shall be individual persons who are not insurers, subscribers, exchange brokers, or employees of insurers, subscribers, exchange brokers, syndicates, or affiliates thereof.
    The Executive Committee shall be composed of 3 public trustees elected by the Board. Members of the Executive Committee shall serve for a term of 3 years, except that of the initial members of the Executive Committee, one member shall serve for a term of one year, one member shall serve for a term of 2 years, and one member shall serve for a term of 3 years. The terms of the initial members of the Executive Committee shall be determined by lot.
    All decisions of the Executive Committee, except those of a ministerial nature that may be delegated by the Board, shall be subject to the approval of the Board. All action of the Executive Committee shall be approved unless disapproved on a recorded vote by 9 members of the Board.
(Source: P.A. 90‑499, eff. 1‑1‑98; 91‑796, eff. 6‑9‑00.)

    (215 ILCS 5/107.18)(from Ch. 73, par. 719.18)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.18. Voting for trustees. Each subscriber shall have the number of votes equal to its total subscription divided by the minimum subscription. Trustees shall be elected by a majority of the votes cast for that trustee position.
(Source: P.A. 89‑206, eff. 7‑21‑95.)

    (215 ILCS 5/107.19)(from Ch. 73, par. 719.19)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 107.19. By‑laws. The subscribers shall adopt such by‑laws as proposed by the Board or subscribers constituting 5% or more of the subscriber sha

Disclaimer
There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Copyright © 2017 Laws.com | All rights reserved

Loading..

Close Window

Loading, Please Wait!

This may take a second or two.