(Section scheduled to be repealed on January 1, 2027)
1,116 words·~5 min read·
/il/chapter-215/act-5/1-235A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(Section scheduled to be repealed on January 1, 2027)
Sec. 66. Minimum surplus requirements.
(1)No reciprocal may after December 31, 1985 receive a certificate of authority from the Director to exchange contracts under this Article in the name of the subscribers until it has complied with the requirements in respect of original surplus applicable to the class or classes and clause or clauses of section 4 describing the kind or kinds of insurance it seeks to exchange, as set forth in the following table: Casualty, Fidelity and Surety
(a)Class 2, Clauses (a), (b), (c), (d), (g), (h),
(i)or (j), a surplus of at least
$2,000,000; more than one clause, a surplus of at least $2,000,000.
Fire and Marine
(b)Class 2, Clauses (e), (f),
(k)or
(l)or Class 3, any or all clauses or any
combination thereof, a surplus of at least $1,000,000.
Multiple Line
(c)Class 2, any or all clauses other than those specified in
(b)above, and Class 3,
any or all clauses, a surplus of at least $2,000,000.
Glass and Livestock and Domestic Animals
(d)Class 2, Clause
(f)only or
(k)only $250,000; provided any reciprocal to which this
subparagraph is applicable shall not expose itself to any loss on any one risk in any amount exceeding $5,000.
(2)Every reciprocal subject to this Article issued a certificate of authority on or after June 28, 1965 must have and at all times maintain a minimum surplus in an amount equal to 2/3 of the original surplus required for that particular company at the time it was organized. Any such reciprocal organized prior to June 28, 1965 must have and at all times maintain admitted assets in excess of all liabilities in an amount not less than the minimum amount of advance cash deposits or surplus which was required for that particular reciprocal at the time it was issued a certificate of authority. Any reciprocal which has added any clause or clauses must have and at all times maintain minimum surplus not less than the minimum surplus requirement applicable to the class or classes and clause or clauses of section 4 at the time that the additional clause or clauses are authorized. Any reciprocal organized prior to October 1, 1972 must have and at all times maintain, in addition to the minimum surplus required to be maintained by that particular reciprocal, additional minimum surplus of not less than $300,000.
(3)Any company organized prior to January 1, 1986 and regulated under this Article, in addition to the minimum surplus which is required by paragraph
(2)of this Section must have by December 31, 1986 and at all times maintain until December 31, 1990 additional minimum surplus of $200,000.
(4)Subsections
(2)and
(3)shall be applicable until December 31, 1990 for all reciprocals organized prior to January 1, 1986, thereafter, such reciprocals must have and maintain surplus as required by subsections
(6)and (7).
(5)Every reciprocal subject to this Article and organized after December 31, 1985 must have and maintain at all times minimum surplus applicable to the class or classes and clause or clauses of Section 4 describing the kind or kinds of insurance which it is authorized to write, as follows: Casualty, Fidelity and Surety
(a)Class 2, Clauses (a), (b), (c), (d), (g),
(h)or (i), a surplus of at least
$1,500,000; more than one clause, a surplus of at least $1,500,000.
Fire, Marine and Legal Expense
(b)Class 2, Clauses (e), (f), (k),
(l)or Class 3, any or all clauses or any
combination thereof, a surplus of at least $700,000.
Multiple Line
(c)Class 2, any or all clauses other than those specified in
(b)above, and Class 3,
any or all clauses, a surplus of at least $1,500,000.
Glass and Livestock and Domestic Animals
(d)Class 2, Clause
(f)only or
(k)only, $150,000; provided no reciprocal to which this
subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.
(6)Any reciprocal subject to this Article and organized prior to January 1, 1986 must have by December 31, 1990, and thereafter maintain until December 31, 1995, minimum surplus applicable to the class or classes and clause or clauses of Section 4 describing the kind or kinds of insurance which it is authorized to write, as follows: Casualty, Fidelity and Surety
(a)Class 2, Clauses (a), (b), (c), (d), (g), (h),
(i)or (j), a surplus of at least
$1,200,000; more than one clause, a surplus of at least $1,200,000.
Fire, Marine and Legal Expense
(b)Class 2, Clauses (e), (f), (k),
(1)or Class 3, any or all clauses or any
combination thereof, a surplus of at least $600,000.
Multiple Line
(c)Class 2, any or all clauses other than those specified in
(b)above, and Class 3,
any or all clauses, a surplus of at least $1,200,000.
Glass and Livestock and Domestic Animals
(d)Class 2, Clause
(f)only or
(k)only, $100,000; provided no reciprocal to which this
subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.
(7)Any reciprocal subject to this Article and organized prior to January 1, 1986 must have by December 31, 1995 and thereafter maintain at all times minimum surplus applicable to the class or classes and clause or clauses of Section 4 describing the kind or kinds of insurance which it is authorized to write, as follows: Casualty, Fidelity and Surety
(a)Class 2, Clauses (a), (b), (c), (d), (g), (h),
(i)or (j), a surplus of at least
$1,500,000; more than one clause, a surplus of at least $1,500,000.
Fire, Marine and Legal Expense
(b)Class 2, Clauses (e), (f), (k),
(l)or Class 3, any or all clauses or any
combination thereof, a surplus of at least $700,000.
Multiple Line
(c)Class 2, any or all clauses other than those specified in
(b)above, and Class 3,
any or all clauses, a surplus of at least $1,500,000.
Glass and Livestock and Domestic Animals
(d)Class 2, Clause
(f)only or
(k)only, $150,000; provided no reciprocal to which this
subparagraph is applicable shall not expose itself to any loss on any one risk in the amount exceeding $5,000.
(8)The Director shall take action under Section 83 of this Code against any reciprocal which fails to maintain the minimum surplus required by this section. The words "minimum surplus" mean the "surplus as regards policyholders" as it appears on the annual statement of a reciprocal company on the usual and proper annual statement form prescribed by the National Association of Insurance Commissioners.