215 ILCS 5/123C-9
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article VIIC - Domestic Captive Insurance Companies

 (from Ch. 73, par. 735C-9)(Section scheduled to be repealed on January 1, 2027)Sec. 123C-9. Reports, statements and mandatory reserves.A.  Captive insurance companies shall not be required  to make any annual report except as provided in this  Article.B.  (1) On or before March 1 of each year, each captive  insurance company shall submit to the Director a report  of its financial condition, verified by oath of 2  of its executive officers and including (i) a balance  sheet reporting assets, liabilities, capital and surplus,  (ii) a statement of gain or loss from operations, (iii)  a statement of changes in financial position, (iv) a  statement of changes in capital and surplus, (v)  in the case of industrial insured captive insurance  companies, an analysis of loss reserve development,  information on risks ceded and assumed under reinsurance  agreements, on forms prescribed by the Director, and  a schedule of its invested assets on forms prescribed  by the Director, and (vi) a statement of actuarial opinion by a qualified independent actuary concerning the reasonableness of the captive insurance company's loss and loss adjustment expense reserves in such form and of such content as specified in the National Association of Insurance Commissioners Annual Statement Instructions: Property and Casualty.(2) In addition, prior to March 1 of each year, each  association captive insurance company shall submit to  the Director such additional data or information, which  the Director may from time to time require, on a form  specified by the Director.(3) On or before June 1 of each year, each captive insurance company shall submit to the Director a report of its financial condition at last year's end with an independent certified public accountant's opinion of the company's financial condition.(4) Unless the Director permits otherwise, the reports  of financial condition referred to in paragraphs (1)  and (3) of this subsection B are to be prepared in accordance with the Accounting  Practices and Procedures Manual adopted by the National  Association of Insurance Commissioners.  The Director  shall have authority to extend the time for filing any  report or statement by any company for reasons which  he considers good and sufficient.C. In addition, any captive insurance company may be  required by the Director, when he considers such action  to be necessary and appropriate for the protection of  policyholders, creditors, shareholders or claimants,  to file, within 60 days after mailing to the company  of a notice that such is required, a supplemental summary  statement as of the last day of any calendar month occurring  during the 100 days next preceding the mailing of such  notice designated by him on forms prescribed and furnished  by the Director.  No company shall be required to file  more than 4 supplemental summary statements during any  consecutive 12 month period.D. Every captive insurance company shall, at all times,  maintain reserves in an amount estimated in the aggregate  to provide for the payment of all losses and claims  incurred, whether reported or unreported, which are  unpaid and for which such company may be liable, and  to provide for the expenses of adjustment or settlement  of such losses and claims.  The aggregate reserves shall  be reduced by reinsurance ceded which meets the requirements  of Section 123C-13.  For the purpose of such reserves, the company shall keep a complete and  itemized record showing all losses and claims on which it has received  notice, including all notices received by it of the occurrence of any event  which may result in a loss. Such record shall be opened in chronological  receipt order, with each notice of loss or claim identified by appropriate  number or coding.E. Every captive insurance company shall maintain an  unearned premium reserve on all policies in force which  reserve shall be charged as a liability.  The portions  of the gross premiums in force, after deducting reinsurance  qualifying under Section 123C-13, which shall be held  as a premium reserve, shall never be less in the aggregate  than the company's actual liability to all its insureds  for the return of gross unearned premiums.  In the calculation  of the company's actual liability to all its insureds,  the reserve shall be computed pursuant to the method  commonly referred to as the monthly pro rata method;  provided, however, that the Director may require that  such reserve shall be equal to the unearned portions  of the gross premiums in force, after deducting reinsurance  qualifying under Section 123C-13, in which case the reserve shall  be computed on each respective risk from the date of  the issuance of the policy.E-5.  A captive insurance company may make a written application to the Director for filing its annual report required under this Section on a fiscal year's end.  If an alternative filing date is granted, the company shall file:(1)     the annual report, including a  statement of     actuarial opinion by a qualified independent actuary concerning the reasonableness of the captive insurance company's loss and loss adjustment expense reserves in such form and of such content as specified in the National Association of Insurance Commissioners Annual Statement Instructions: Property and Casualty, no later than the 60th day after the date of the company's fiscal year's end;(2)     the report of its financial condition at last     year's end with an independent certified public accountant's opinion of the company's financial condition; and(3)    its balance sheet, income statement, and     statement of cash flows, verified by 2 of its executive officers, before March 1 of each year to provide sufficient detail to support a premium tax return.F. The reports required by this Section shall be prepared  and filed on a calendar year basis.G. Notwithstanding the requirements of this Section,  a captive insurance company may prepare and issue financial  statements prepared in accordance with generally accepted  accounting principles.  (Source: P.A. 100-1118, eff. 11-27-18.)