215 ILCS 5/107a.11
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article V 3/4 - Group Workers' Compensation; Pools; Pooling; Insolvency Fund

Sec. 107a.11.     Admissible assets.(a) Admitted assets include amounts permitted under Section 107a.12  as modified by only  the following:(1) Direct obligations of the United States of     America for the payment of money or obligations for the payment of money that are guaranteed as to the payment of principal and interest by the United States of America.(2) Direct obligations for the payment of money     issued by an agency or instrumentality of the United States of America or obligations for the payment of money that are guaranteed as to payment of principal and interest by an agency or instrumentality of the United States of America.(3) Bonds or securities that are issued by any state     of the United States and that are secured by the full faith and credit of that state.(4) Certificates of deposit, time deposits, or demand     deposits in a bank in the State of Illinois that has deposits insured by the Federal Deposit Insurance Corporation.(5) Saving certificates issued by any savings and     loan association in the State of Illinois that has deposits insured by the Federal Deposit Insurance Corporation.(6) Direct, unconditional obligations of a solvent     business corporation for the payment of money on the following conditions:(A) the corporation is incorporated under the         laws of the United States of America or any state of the United States of America;(B) the corporation has a tangible net worth of         not less than $500,000 and the obligations have been awarded a "1" or "2" rating by the Securities Valuation Office of the National Association of Insurance Commissioners;(C) the corporation is not affiliated with any         member of the pool;(D) no such obligation of the corporation has         been in default as to principal or interest during the 5 years preceding the date of investment, however, the corporation need not have had obligations outstanding during that period and need not have been in existence for that period, and obligations acquired under this Section may be newly issued;(E) a pool may not invest more than 33 1/3% of         its assets under this item (6); and(F) a pool may not invest under this Section more         than 5% of its assets in the obligations of any one corporation.(7) Obligations of any political subdivision of any     state of the United States of America for the payment of money on the following conditions:(A) the obligations are payable from ad valorem         taxes;(B) the political subdivision is not in default         in the payment of principal or interest on any of its direct, general obligations;(C) no investment may be made under this Section         in obligations that are secured only by special assessments for local improvements;(D) a pool may not invest under this Section more         than 4% of its assets in direct, general obligations issued by any one political subdivision; and(E) a pool may not invest more than 50% of its         assets under this item (7).(8) Mutual funds:(A) government money market mutual funds that         meet the conditions of paragraphs (c)(2), (c)(3), and (c)(4) of 17 C.F.R. 270.2a-7, revised as of April 1, 1992, that have been rated in one of the 2 highest rating categories by an independent rating agency recognized by the National Association of Insurance Commissioners, and that invest in obligations issued, guaranteed, or insured by the United States or Canada or any agency or instrumentality of the United States or Canada.(B) fixed income bond mutual funds that meet the         conditions of paragraphs (c)(2), (c)(3), and (c)(4) of 17 C.F.R. 270.2a-7, revised as of April 1, 1992, and that have been rated in one of the 2 highest rating categories by an independent rating agency recognized by the National Association of Insurance Commissioners, however, a pool may not invest in fixed income bond mutual funds more than the greater of $100,000 or 10% of its total assets in any one fund.(9) Not more than 5% of a pool's admitted assets may     be assessment receivables. In order to be an admitted asset, an assessment receivable cannot be more than 60 days past due.(10) Not more than 10% of a pool's admitted assets     may be reinsurance receivables. In order to be an admitted asset, a reinsurance receivable cannot be more than 90 days past due.(b) Amounts recoverable from authorized reinsurers on unpaid losses may be  deducted from  the reserves required by Section 4 of the Workers' Compensation Act.(c) All securities eligible for registration shall be registered in the name  of the pool and all  securities shall be maintained in a State or National Bank having trust powers  and located within this  State.    (Source: P.A. 91-757, eff. 1-1-01.)