(Section scheduled to be repealed on January 1, 2027)

328 words·~1 min read·/il/chapter-215/act-5/1-258

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 86. Scope of Article.

(1)This Article applies to all groups including incorporated and individual unincorporated underwriters transacting an insurance business in this State through an attorney-in-fact under the name Lloyds or under a Lloyds plan of operation. Groups that meet the requirements of subsection

(3)are referred to in this Code as "Lloyds", and incorporated and individual unincorporated underwriters are referred to as "underwriters".

(2)As used in this Code:

"Domestic Lloyds" means a Lloyds having its home office in this State.

"Foreign Lloyds" means a Lloyds having its home office in any state of the United States other than this State.

"Alien Lloyds" means a Lloyds having its home office or principal place of business in any country other than the United States.

(3)A domestic Lloyds must:

(i)be established pursuant to a statute or written charter;

(ii)provide for governance by a board of directors or similar body; and

(iii)establish and monitor standards of solvency of its underwriters. A foreign or alien Lloyds must be subject to requirements of its state or country of domicile. Those requirements must be substantially similar to those required of domestic Lloyds. Domestic, foreign, and alien Lloyds shall not be subject to Section 144 of this Code.

(4)All foreign and alien entities and individuals transacting an insurance business as domestic, foreign, or alien Lloyds shall notify the Director and the Secretary of State under the provisions of this Article, shall be regulated exclusively by the Director, and shall not be required to obtain a certificate of authority from the Secretary of State pursuant to any other law of this State so long as they solely transact business as a domestic, foreign, or alien Lloyds. Upon notification, the Secretary of State may require submission of additional information to determine whether a foreign or alien individual or entity is transacting business solely as a domestic, foreign, or alien Lloyds.