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(215 ILCS 5/123C-3) (from Ch. 73, par. 735C-3)
(Section scheduled to be repealed on January 1, 2027)
Sec. 123C-3. Minimum capital and surplus. A. The Department may not issue a certificate of authority to a captive insurance company unless the company possesses and maintains unencumbered capital and surplus in an amount determined by the Director after considering: (1) the amount of premium written by the captive |
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(2) the characteristics of the assets held by the
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| captive insurance company;
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(3) the terms of reinsurance arrangements entered
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| into by the captive insurance company;
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(4) the type of business covered in policies
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| issued by the captive insurance company;
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(5) the underwriting practices and procedures of
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| the captive insurance company; and
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(6) any other criteria that has an impact on the
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| operations of the captive insurance company determined to be significant by the Director.
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B. The amount of capital and surplus determined by the Director under subsection A of this Section may not be less than $250,000 for a pure captive insurance company, $500,000 for an industrial insured captive insurance company, and $750,000 for an association captive insurance company.
C. The capital and surplus required by subsection A of this Section must be in the form of:
(1) United States currency;
(2) an irrevocable letter of credit, in a form
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| approved by the Director and not secured by a guarantee from an affiliate, naming the Director as beneficiary for the security of the captive insurance company's policyholders and issued by a bank approved by the Director;
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(3) bonds of this State; or
(4) bonds or other evidences of indebtedness of
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| the United States, the principal and interest of which are guaranteed by the United States.
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(Source: P.A. 100-1118, eff. 11-27-18.)
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