215 ILCS 5/179E-20
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XIE - Special Purpose Reinsurance Vehicle Law

Sec. 179E-20.     Limited certificate of authority.(a) Within 30 days after receipt by the Director of a complete filing by the  prospective SPRV organizer for authority to form or acquire an SPRV, which  SPRV shall exist and operate expressly for the limited purposes set forth in  this  Article, the application shall be deemed approved and a limited certificate of  authority shall be issued, unless before the expiration of the 30-day period  the  Director approves or disapproves the application in writing.  A limited certificate of authority may not be issued unless the country or  state  of domicile of each ceding insurer has notified the Director in writing that  they have not disapproved the transaction.  A complete filing  of the  application must include the following:(1) an affidavit verifying that each prospective SPRV     organizer the SPRV meets the requirements as set forth in this Article;(2) a representation that the prospective SPRV     organizer intends to form an SPRV to operate in accordance with the requirements set forth in this Article;(3) the proposed name of the subject SPRV;(4) biographical descriptions of each SPRV organizer     setting forth their legal names, any names under which they have or are conducting their affairs, and any affiliations with other persons as defined in Article VIII 1/2, together with such other biographical information as the Director may request;(5) the source and form of the minimum capital to be     contributed to the SPRV;(6) any persons with which the SPRV is or, upon     formation, will be affiliated as defined in Article VIII 1/2;(7) the names and biographical information of the     proposed members of the board of directors and principal officers of the SPRV, setting forth their legal names, any names under which they have or are conducting their affairs and any affiliations with other persons as defined in Article VIII 1/2, together with such other biographical information as the Director may request; and(8) a plan of operation, consisting of a description     of the contemplated insurance securitization, the SPRV contract, and related transactions, which plan of operation must include:(A) draft documentation or, at the discretion of         the Director, a written summary, of all material agreements that will be entered into to effectuate the insurance securitization and the related SPRV contract, including the names of the ceding insurers, the nature of the risks being assumed, and the maximum amounts, purpose, nature, and interrelationships of the various transactions required to effectuate the insurance securitization;(B) the investment strategy of the  SPRV and a         representation that (i) the investment strategy complies with the investment requirements set forth in this Article and (ii) includes investment practices or other provisions to preserve asset values that will facilitate attainment of full funding during the term of the securitization with assets that can be monetized in response to a triggering event without a substantial loss in value;(C) a description of the method by which losses         covered by the SPRV contract that may develop after the termination of the contract period are to be addressed under the provisions of the SPRV contract; and(D) a representation that the trust agreement and         the trusts holding assets that secure the obligations of the SPRV under the SPRV contract  and the SPRV contract with the ceding insurers in connection with the contemplated insurance securitization will be structured in accordance with the requirements set forth in this Article.(b) The Director may not approve the application or issue a limited  certificate  of authority until he or she has found that the proposed plan of operation  provides a  reasonable expectation of a successful operation, based on the proposed SPRV  organizer, directors, and officers being 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 or  business relations with any person or persons known to have been involved in  the  improper manipulation of assets, accounts or reinsurance.(c) Upon approval by the Director of the application and the issuance of a  limited certificate of authority, the SPRV may be acquired or formed and, in  accordance with the approved plan of operation, the SPRV may enter into  contracts  and conduct other activities within the parameters set forth in the filed plan  of  operation.(d) The limited certificate of authority so issued shall state that the  SPRV's  authorization to be involved in the business of reinsurance is limited to only  the  reinsurance activities that the SPRV is allowed to conduct under this Article.(e) The SPRV organizer must provide a complete set of the documentation  of  the  insurance securitization to the Director upon  closing of the transactions  including, but not  limited to, an opinion of legal counsel with respect to compliance with this  and any other  applicable laws as of the effective date of the transaction. Any material  change of the  SPRV's plan of operation described in  items (1) through (8) of subsection (a)  including, but  not limited to, the issuance of new securities to continue the securitization  activities of the  SPRV under this Article after expiration and full satisfaction of the initial  securitization  transactions, requires prior approval of the Director, however, a change in the  counterparty  to swap transactions for an existing securitization as allowed under this  Article shall not be  deemed a material change. Any material change that is not disapproved by the  Director in  writing within 15 days after its submission shall be deemed approved.    (Source: P.A. 92-124, eff. 7-20-01.)