Sec. 144.1. Insurance Sales by Insolvent or Impaired Companies Prohibited.

206 words·~1 min read·/il/chapter-215/act-5/144-1

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Sec. 144.1. Insurance Sales by Insolvent or Impaired Companies Prohibited.)

(1)Unless allowed by the Director, no foreign or alien company officer, director, trustee, agent, or employee of such company may renew, issue or deliver or cause to be renewed, issued or delivered, any policy, contract or certificate of insurance in this State, nor may any domestic company, officer, director, trustee, agent or employee of such company renew, issue or deliver or cause to be renewed, issued or delivered, any policy, contract or certificate of insurance, for which a premium is charged or collected, when the company writing such insurance is insolvent or impaired and the fact of such insolvency or impairment is known to the company officer, director, trustee, agent or employee of such company. A company is impaired when its assets are less than its capital, minimum required surplus and all liabilities.

However, the existence of an impairment does not prevent the issuance or renewal of a policy when an insured or owner exercises an option granted to him under an existing policy to obtain new, renewed or converted insurance coverage.

(2)Any company officer, director, trustee, agent, or employee of such company violating this Section shall be guilty of a Class A misdemeanor.