215 ILCS 5/126.17
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article VIII - Investments Of Domestic Companies

Sec. 126.17.     Foreign investments and foreign currency exposure.A. Subject to the limitations of Section 126.10, an insurer may acquire  directly or indirectly through an investment subsidiary, foreign investments,  or engage in investment practices with persons of or in foreign jurisdictions,  of substantially the same types as those that an insurer is permitted to  acquire under this Article, other than of the type permitted under Section  126.12, if, as a result and after giving effect to the investment:(1) The aggregate amount of foreign investments then     held by the insurer under this subsection does not exceed 20% of its admitted assets; and(2) The aggregate amount of foreign investments then     held by the insurer under this subsection in a single foreign jurisdiction does not exceed 10% of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 3% of its admitted assets as to any other foreign jurisdiction.B. Subject to the limitations of Section 126.10, an insurer may acquire  investments, or engage in investment practices denominated in foreign  currencies, whether or not they are foreign investments acquired under  subsection A of this Section, or additional foreign currency exposure as a  result of the termination or expiration of a hedging transaction with respect  to investments denominated in a foreign currency, if, as a result of and after  giving effect to the transaction:(1) The aggregate amount of investments then held by     the insurer under this subsection denominated in foreign currencies does not exceed 10% of its admitted assets; and(2) The aggregate amount of investments then held by     the insurer under this subsection denominated in the foreign currency of a single foreign jurisdiction does not exceed 10% of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 3% of its admitted assets as to any other foreign jurisdiction.(3) However, an investment shall not be considered     denominated in a foreign currency if the acquiring insurer enters into one or more contracts in transactions permitted under Section 126.18 in which the business entity counterparty agrees to exchange, or grants to the insurer the option to exchange, all payments made on the foreign currency denominated investment (or amounts equivalent to the payments that are or will be due to the insurer in accordance with the terms of such investment) for United States currency during the period the contract or contracts are in effect to insulate the insurer against loss caused by diminution of the value of payments owed to the insurer due to future changes in currency exchange rates.C. In addition to investments permitted under subsections A and B of this  Section, an insurer that is authorized to do business in a foreign  jurisdiction, and that has outstanding insurance, annuity or reinsurance  contracts on lives or risks resident or located in that foreign jurisdiction  and denominated in foreign currency of that jurisdiction, may acquire foreign  investments respecting that foreign jurisdiction, and may acquire investments  denominated in the currency of that jurisdiction, subject to the limitations of  Section 126.10.  However, investments made under this subsection in obligations  of foreign governments, their political subdivisions and government sponsored  enterprises shall not be subject to the limitations of Section 126.10 if those  investments carry an SVO rating of 1 or 2. The aggregate amount of investments  acquired by the insurer under this subsection shall not exceed the  greater of:(1) The amount the insurer is required by the law of     the foreign jurisdiction to invest in the foreign jurisdiction; or(2) 115% of the amount of its reserves, net of     reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction.D. In addition to investments permitted under subsections A and B of this  Section, an insurer that is not authorized to do business in a foreign  jurisdiction, but which has outstanding insurance, annuity or reinsurance  contracts on lives or risks resident or located in that foreign jurisdiction  and denominated in foreign currency of that jurisdiction, may acquire foreign  investments respecting that foreign jurisdiction, and may acquire investments  denominated in the currency of that jurisdiction subject to the limitations of  Section 126.10.  However, investments made under this subsection in obligations  of foreign governments, their political subdivisions and government sponsored  enterprises shall not be subject to the limitations of Section 126.10 if those  investments carry an SVO rating of 1 or 2.  The  aggregate amount of investments acquired by the insurer under this subsection  shall not exceed 105% of the amount of its reserves, net of reinsurance,  and other obligations under the contracts on lives or risks resident or located  in the foreign jurisdiction.E. Investments acquired under this Section shall be aggregated with  investments of  the same types made under all other Sections of this Article, and in a similar  manner, for purposes of determining compliance with the limitations, if any,  contained in the other Sections. Investments in obligations of foreign  governments, their political subdivisions and government sponsored enterprises  of these persons, except for those exempted under subsections C and D of this  Section, shall be subject to the limitations of Section 126.10.    (Source: P.A. 90-418, eff. 8-15-97.)