215 ILCS 5/126.30
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article VIII - Investments Of Domestic Companies

Sec. 126.30.     Foreign investments and foreign currency exposure.A. Subject to the limitations of Section 126.23, an insurer may acquire  directly or indirectly through an investment subsidiary, foreign investments,  or engage in investment practices with persons of or in foreign jurisdictions,  of substantially the same types as those that an insurer is permitted to  acquire under this Article, other than of the type permitted under Section  126.25, if, as a result and after giving effect to the investment:(1) the aggregate amount of foreign investments then     held by the insurer under this subsection does not exceed 20% of its admitted assets; and(2) the aggregate amount of foreign investments then     held by the insurer under this subsection in a single foreign jurisdiction does not exceed 10% of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 5% of its admitted assets as to any other foreign jurisdiction.B. Subject to the limitations of Section 126.23, an insurer may acquire  investments, or engage in investment practices denominated in foreign  currencies, whether or not they are foreign investments acquired under  subsection A of this Section, or additional foreign currency exposure as a  result of the termination or expiration of a hedging transaction with respect  to investments denominated in a foreign currency, if, as a result of and after  giving effect to the transaction:(1) the aggregate amount of investments then held by     the insurer under this subsection denominated in foreign currencies does not exceed 15% of its admitted assets; and(2) the aggregate amount of investments then held by     the insurer under this subsection denominated in the foreign currency of a single foreign jurisdiction does not exceed 10% of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 5% of its admitted assets as to any other foreign jurisdiction.However, an investment shall not be considered denominated in a  foreign currency if the acquiring insurer enters into one or more contracts in  transactions permitted under Section 126.31 in which the business entity  counterparty agrees to exchange, or grants to the insurer the option to  exchange, all payments made on the foreign currency denominated  investment (or amounts equivalent to the payments that are or will be due  to the insurer in accordance with the terms of such investment) for United  States currency during the period the contract or contracts are in effect to  insulate the insurer against loss caused by diminution of the value of  payments owed to the insurer due to future changes in currency exchange  rates.C. In addition to investments permitted under subsections A and B of this  Section, an insurer that is authorized to do business in a foreign  jurisdiction, and that has outstanding insurance, annuity or reinsurance  contracts on lives or risks resident or located in that foreign jurisdiction  and denominated in foreign currency of that jurisdiction, may acquire foreign  investments respecting that foreign jurisdiction, and may acquire investments  denominated in the currency of that jurisdiction, subject to the limitations of  Section 126.23.  However, investments made under this subsection in obligations  of foreign governments, their political subdivisions and government sponsored  enterprises shall not be subject to the limitations of Section 126.23 if those  investments carry an SVO rating of 1 or 2. The aggregate amount of investments  acquired by the insurer under this subsection shall not exceed the  greater of:(1) the amount the insurer is required by law to     invest in the foreign jurisdiction; or(2) 125% of the amount of its reserves, net of     reinsurance, and other obligations under the contracts.D. In addition to investments permitted under subsections A and B of this  Section, an insurer that is not authorized to do business in a foreign  jurisdiction but which has outstanding insurance, annuity or reinsurance  contracts on lives or risks resident or located in a foreign jurisdiction and  denominated in foreign currency of that jurisdiction, may acquire foreign  investments respecting that foreign jurisdiction, and may acquire investments  denominated in the currency of that jurisdiction subject to the limitations set  forth of Section 126.24. However, investments made under this subsection in  obligations of foreign governments, their political subdivisions and government  sponsored enterprises shall not be subject to the limitations of Section 126.23  if those investments carry an SVO rating of 1 or 2.  The aggregate amount of  investments acquired by the insurer under this subsection shall not exceed 105%  of the amount of its reserves, net of reinsurance, and other obligations under  the contracts on risks resident or located in the foreign  jurisdiction.E. Investments acquired under this Section shall be aggregated with  investments of the same types made under all other Sections of this Article,  and in a similar manner, for purposes of determining compliance with the  limitations, if any, contained in the other Sections. Investments in  obligations of foreign governments, their political subdivisions and government  sponsored enterprises of these persons, except for those exempted under  subsections C and D of this Section, shall be subject to the limitations of  Section 126.23.    (Source: P.A. 90-418, eff. 8-15-97; 91-357, eff. 7-29-99.)