Sec. 155.04. Standards for companies and officials.

357 words·~2 min read·/il/chapter-215/act-5/155-04

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

(1)The Director shall not approve any declaration of organization or Articles of Incorporation or issue a Certificate of Authority to any company until he has found that:

(a)the company has submitted a sound plan of operation;

(b)the incorporators, directors, and proposed officers are of known good character and

that there is no good reason to believe that they are affiliated, directly or indirectly, through ownership, control, management, reinsurance transactions or other insurance of business relations with any person or persons known to have been involved in the improper manipulation of assets, accounts or reinsurance;

(c)the general experience of the incorporators, directors, and proposed officers is

enough to ensure the reasonable promise of a successful operation; and

(d)no financial concerns related to the company, its ownership, its associated group,

or its affiliates have been identified that raise the possibility that the company will have solvency concerns or problems generating the necessary levels of capital and surplus.

The Director may require, in substantially the same form, the information required under Section 131.5 of this Code.

(2)All companies licensed to do business in this state must notify the Director within 30 days of the appointment or election of any new officers or directors.

(3)Except in cases where the Director deems that any officer or director meets the standards set forth in this section, he shall, after notice and hearing afforded to the officer or director, and after a finding that the officer or director is incompetent or untrustworthy or of known bad character, order the removal of the person. If a company does not comply with a removal order within 30 days, the Director shall suspend that company's Certificate of Authority until such time as the order is complied with.

(4)It shall be unlawful for a company to borrow money or receive a loan or advance from anyone convicted of a felony, anyone who is untrustworthy or of known bad character or anyone convicted of a criminal offense involving the conversion or misappropriation of fiduciary funds or insurance accounts, theft, deceit, fraud, misrepresentation or corruption.