215 ILCS 5/43
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article III - Domestic Mutual Companies

 (from Ch. 73, par. 655)(Section scheduled to be repealed on January 1, 2027)Sec. 43.     Minimum surplus requirements.(1) No company organized after  December 31, 1985 under this Article  may receive a certificate of authority from the Director to issue  policies or contracts of insurance until it has complied with the  requirements in respect of original surplus applicable to the class or  classes and clause or clauses of section 4 describing the kind or kinds  of insurance it is organized to write, as set forth in the following  table:    Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), a surplus of at     least $2,000,000; more than one clause, a surplus of at least $2,000,000.    Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $2,000,000; more than one clause, a surplus of at least $2,000,000.    Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $1,000,000.    Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, a surplus of at least $2,000,000.    Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $250,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(2) Every company subject to this Article and organized on or after  June 28, 1965 must have and at all times maintain a minimum surplus  equal to 2/3 of the original surplus required for that particular  company at the time it was organized.  Any such company  organized prior to June 28, 1965 must have and at all times maintain a  minimum surplus equal to that which would have been required for that  particular company at the time it was issued a Certificate of Authority.  Any company which has added any clause or clauses must have and at all  times maintain minimum surplus not less than the minimum surplus requirement  applicable to the class or classes and clause or clauses of Section 4 at  the time that the additional clause or clauses are authorized. Any company  organized prior to October 1, 1972 must have and at all times maintain, in  addition to the minimum surplus required to be maintained by that  particular company, additional minimum surplus of not less than $300,000.(3) Any company organized prior to January 1, 1986 and regulated under  this Article, in addition to the minimum surplus which is required by  paragraph (2) of this Section must have by December 31, 1986 and at all  times maintain until December 31, 1990 additional minimum surplus of $200,000.(4) Provided, however, mutual companies organized prior to October 1, 1972  and authorized to engage only in insurance business as specified in Class  2(f) of Section 4 on an assessable basis shall not be required to establish  an additional minimum surplus as provided herein.(5) Subsections (2) and (3) shall be applicable until December 31, 1990 for all  companies organized prior to January 1, 1986; thereafter, such  companies must have and maintain surplus as required by subsections (7) and (8).(6) Every company subject to this Article and organized after December  31, 1985 under this Article must maintain minimum surplus applicable to the  class or classes and clause or clauses of Section 4 describing the kind or  kinds of insurance which it is authorized to write, as follows:    Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), a surplus of at     least $1,500,000; more than one clause, a surplus of at least $1,500,000.    Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $1,500,000; more than one clause, a surplus of at least $1,500,000.    Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $700,000.    Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.    Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $150,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(7) Any company organized  prior to January 1, 1986, regulated  under this Article must have by December 31, 1990, and thereafter maintain  until December 31, 1995, surplus not less than the minimum applicable to the class or  classes and clause or clauses of Section 4 describing the kind or kinds of  insurance which it is authorized to write, as follows:    Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), a surplus of at     least $1,200,000; more than one clause, a surplus of at least $1,200,000.    Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $1,200,000; more than one clause, a surplus of at least $1,200,000.    Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $600,000.    Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, a surplus of at least $1,200,000.    Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $100,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(8) Any company organized  prior to January 1, 1986, regulated  under this Article must have by December 31, 1995, and thereafter maintain  at all times, surplus not less than the minimum applicable to the class or  classes and clause or clauses of Section 4 describing the kind or kinds of  insurance which it is authorized to write, as follows:    Life, Accident, Health and Legal Expense(a) Class 1, Clauses (a), (b) or (c), a surplus of at     least $1,500,000; more than one clause, a surplus of at least $1,500,000.    Casualty, Fidelity and Surety(b) Class 2, Clauses (a), (b), (c), (d), (g), (h),     (i) or (j), a surplus of at least $1,500,000; more than one clause, a surplus of at least $1,500,000.    Fire, Marine and Legal Expense(c) Class 2, Clauses (e), (f), (k), (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $700,000.    Multiple Line(d) Class 2, any or all clauses other than those     specified in (c) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.    Glass and Livestock and Domestic Animals(e) Class 2, Clause (f) only or (k) only, $150,000;     provided any company to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(9) The Director shall take action under Section 60 of this Code  against any company which fails to maintain the minimum  surplus required by this section. The words "minimum surplus" mean the  "surplus as regards policyholders", as it appears on the annual  statement of a mutual company on the usual and proper annual statement  form prescribed by the National Association of Insurance Commissioners.    (Source: P.A. 84-934.)