215 ILCS 5/141.4
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IX - Provisions Applicable To All Companies

Sec. 141.4.     Disclosure of material transactions.(a) An insurer domiciled in this State shall file a report with the Director  disclosing material acquisitions and dispositions of assets or material  nonrenewals, cancellations, or revisions of ceded reinsurance agreements unless  the acquisitions and dispositions of assets or the material nonrenewals,  cancellations, or revisions of ceded reinsurance agreements have been otherwise  submitted to the Director for review, approval, or information purposes.  The  report must be filed no later than 15 days after the end of the calendar month  in which a reportable transaction occurs.  A copy of the report, including any  exhibits or other attachments filed as a part of the report, shall be filed  with the National Association of Insurance Commissioners.  All reports  obtained by or disclosed to the Director under this Section shall be given  confidential treatment and shall not be subject to subpoena and shall not be  made public by the Director, the National Association of Insurance  Commissioners, or any other person, except to insurance departments of other  states, without the prior written consent of the insurer to which it pertains  unless the Director, after giving the insurer who would be affected notice and  an opportunity to be heard,  determines that the interests of policyholders, shareholders, or the public  will be served by publication, in which event the Director may publish all or  any part in the manner the Director may deem appropriate.(b) Asset acquisitions or dispositions that are not material do not have to  be reported under this Section.  For purposes of this Section, a material  acquisition (or the aggregate of any series of related acquisitions during any  30 day  period) or disposition (or the aggregate of any series  of related dispositions during any 30 day period) is one that is nonrecurring  and not in the ordinary course of business and involves  more than 5% of  the reporting insurer's total admitted assets as reported in its most recent  statutory financial statement filed with the Director.  Asset acquisitions  subject to this Section include, but are not limited to,  every purchase, lease, exchange, merger,  consolidation, succession, or other acquisition other than the construction or  development of real property by or for the reporting insurer or the acquisition  of materials for that purpose.  Asset dispositions subject to this Section  include, but are not limited to,  every sale, lease, exchange, merger, consolidation, mortgage,  hypothecation, assignment (whether for the benefit of creditors or otherwise),  abandonment, destruction, or other disposition.  All of the following  information shall be disclosed in the report of a material acquisition or  disposition of assets:(1) Date of the transaction.(2) Manner of acquisition or disposition.(3) Description of the assets involved.(4) Nature and amount of the consideration received     or given.(5) Purpose of, or reason for, the transaction.(6) Manner by which the amount of consideration was     determined.(7) Gain or loss recognized or realized as a result     of the transaction.(8) Name of the person from whom the assets were     acquired or to whom they were disposed.Insurers shall report acquisitions and dispositions on a nonconsolidated  basis  unless the insurer is part of a consolidated group of insurers that utilizes a  pooling arrangement or a 100% reinsurance  agreement that affects the solvency and integrity of the insurer's reserves  and the insurer ceded substantially all of its direct and assumed business to  the  pool.  An insurer is deemed to have  ceded substantially all of its direct and assumed business to a pool if the  insurer has less than $1,000,000 total direct plus assumed written premiums  during a calendar year that are not subject to a pooling  arrangement and the net income of the business not subject to the pooling  arrangement represents less than 5% of the insurer's capital and  surplus.(c) Ceded reinsurance agreement nonrenewals, cancellations, or revisions  that are not material do not have to be reported under this Section.  For  purposes of this Section, a material nonrenewal, cancellation, or revision is  one that affects:(1) For property and casualty business, including     accident and health business written by a property and casualty insurer:(A) more than 50% of the insurer's total ceded         written premium; or(B) more than 50% of the insurer's total ceded         indemnity and loss adjustment reserves.(2) For life, annuity, and accident and health     business: more than 50% of the total reserve credit taken for business ceded, on an annual basis, as indicated in the insurer's most recent annual statement.(3) Property and casualty or life, annuity, and     accident and health business:(A) an authorized reinsurer representing more         than 10% of total cession is replaced by one or more unauthorized reinsurers; or(B) previously established collateral         requirements have been reduced or waived as respects one or more unauthorized reinsurer representing collectively more than 10% of a total cession.With respect to property and casualty business, including accident and health  business written by a property and casualty insurer, no filing shall be  required if the insurer's total ceded written premium represents, on an  annualized basis, less than 10% of its total written premium for direct and  assumed business.  With respect to life, annuity, and accident and health  business, no filing shall be required if the total reserve credit taken for  business ceded represents, on an annualized basis, less than 10% of the  statutory reserve requirement prior to any cession.All of the following information shall be disclosed in the report of a  material nonrenewal, cancellation, or revision of ceded reinsurance agreements:(1) Effective date of the nonrenewal, cancellation or     revision.(2) The description of the transaction with an     identification of the initiator thereof.(3) Purpose of, or reason for, the transaction.(4) The identity of the replacement insurers, if     applicable.Insurers shall report all material nonrenewals, cancellations, or revisions  of ceded reinsurance agreements on a nonconsolidated basis unless the insurer  is  part of a  consolidated group of insurers that utilizes a pooling arrangement or 100%  reinsurance agreement that affects the solvency and integrity of the  insurer's reserves and the insurer ceded substantially all of its direct and  assumed business to the pool.  An insurer is deemed to have ceded substantially  all  of its direct and  assumed business to a pool if the insurer has less than $1,000,000 of total  direct plus assumed written premiums during a calendar year that are not  subject to the pooling arrangement and the net income of the  business not subject to the pooling arrangement represents less  than 5% of the insurer's capital and surplus.    (Source: P.A. 89-97, eff. 7-7-95.)