215 ILCS 5/126.11
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article VIII - Investments Of Domestic Companies

Sec. 126.11.     Rated credit instruments.     Subject to the limitations of subsection F of this Section, an insurer may  acquire rated credit instruments:A. Subject to the limitations of Section 126.10B, but not to the limitations  of Section 126.10A, except for that of subsection (4) of Section 126.10A, an  insurer may acquire rated credit instruments issued, assumed, guaranteed, or  insured by:(1) The United States; or(2) A government sponsored enterprise of the United     States, if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.B.  (1) Subject to the limitations of Section 126.10B,     but not to the limitations of Section 126.10A, an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:(a) Canada; or(b) A government sponsored enterprise of Canada,         if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada;(2) However, an insurer shall not acquire an     instrument under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this subsection would exceed 40% of its admitted assets.C.  (1) Subject to the limitations of Section 126.10B,     but not to the limitations of Section 126.10A, an insurer may acquire rated credit instruments, excluding asset-backed securities:(a) Issued by a government money market mutual         fund, a class one money market mutual fund or a class one bond mutual fund;(b) Issued, assumed, guaranteed, or insured by a         government sponsored enterprise of the United States other than those eligible under subsection A of this Section;(c) Issued, assumed, guaranteed, or insured by a         state, if the instruments are general obligations of the state; or(d) Issued by a multilateral development bank;(2) However, an insurer shall not acquire an     instrument of any one fund, any one enterprise or entity or any one state under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer in any one fund, enterprise, entity, or state under this subsection would exceed 10% of its admitted assets.D. Subject to the limitations of Section 126.10, an insurer may acquire  preferred stocks that are not foreign investments and that meet the  requirements of rated credit instruments if, as a result of and after giving  effect to the investment:(1) The aggregate amount of preferred stocks then     held by the insurer under this subsection does not exceed 33 1/3% of its admitted assets; and(2) The aggregate amount of preferred stocks then     held by the insurer under this subsection which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 15% of its admitted assets.E. Subject to the limitations of Section 126.10, in addition to those  investments eligible under subsections A, B, C and D of this Section, an  insurer may acquire rated credit instruments that are not foreign investments.F. An insurer shall not acquire special rated credit instruments under this  Section if, as a result of and after giving effect to the investment, the  aggregate amount of special rated credit instruments then held by the insurer  would exceed 5% of its admitted assets.  The Director may, by  rule, identify certain special rated credit instruments that will be  exempt from the limitation imposed by this subsection.    (Source: P.A. 90-418, eff. 8-15-97.)