(Section scheduled to be repealed on January 1, 2027)

315 words·~1 min read·/il/chapter-215/act-5/1-56

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

Sec. 123C-11. Grounds and procedures for suspension or revocation of certificate of authority.

A. The certificate of authority of a captive insurance company to do an insurance business in this State may be suspended or revoked by the Director for any of the following reasons:

(1)insolvency or impairment of required capital or surplus to policy holders;

(2)failure to meet the requirements of Sections 123C-3 or 123C-4;

(3)refusal or failure to submit an annual report, as required by Section 123C-9, or any

other report or statement required by law or by lawful order of the Director;

(4)failure to comply with the provisions of its own charter or bylaws (or, in the case

of an industrial insured captive, with the provisions of the investment policy set forth in its plan of operation as approved from time to time by the Director);

(5)failure to submit to examination or any legal obligation relative thereto, as

required by Section 123C-10;

(6)refusal or failure to pay expenses, charges, and taxes as required by Sections 408,

409, 123C-10, and 123C-17;

(7)use of methods that, although not otherwise specifically prohibited by law,

nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or

(8)failure otherwise to comply with the laws of this State.

B. If the Director finds, upon examination, hearing, or other evidence, that any captive insurance company has committed any of the acts specified in subsection A, he may suspend or revoke such certificate of authority if he deems it in the best interest of the public and the policyholders of such captive insurance company, notwithstanding any other provision of this Article.

C. The provisions of Articles XIII and XIII 1/2 shall apply to and govern the conservation, rehabilitation, liquidation and dissolution of captive insurance companies.