215 ILCS 5/34
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article II - Domestic Stock Companies

 (from Ch. 73, par. 646)(Section scheduled to be repealed on January 1, 2027)Sec. 34.     Procedure  when insufficient assets possessed by company.(1) Whenever the Director finds that the admitted assets of any company  subject to the provisions of this Article are less than its capital,  minimum required surplus and all liabilities, he or she must give written  notice  to the company of the amount of the impairment and require that the  impairment be removed within such period, which must be not less than 30  nor more than 90 days from the date of the notice, as he or she may  designate.  Unless otherwise allowed by the Director, the  company must discontinue the issuance of new and renewal policies while the  impairment exists.(2) Upon the receipt of the notice from the Director, the board of  directors of the company must cause the impairment to be removed and call  upon its shareholders ratably for the necessary amount to remove the  impairment, or, by proper action, reduce its capital to meet the impairment  providing the reduced capital is not less than the minimum requirements  fixed by this Code or by other means remove the impairment. If the  impairment is not removed within the period of time designated, the  Director may order the board of directors to call upon its shareholders  ratably. If a shareholder of the company refuses or  neglects to  pay the amount so called for after notice, given personally or by  mail, by  a date stated in the notice not less than 15 days from the date of such  notice, the Director may order the board of directors to declare, by  resolution, the shares of  such person cancelled, and in lieu thereof may issue new certificates for  shares and dispose of the same at the best price obtainable not less than  par. If the amount received for such new certificates for shares exceeds  the amount required to be paid by such shareholder, the excess must be paid  to the shareholder so refusing to pay his or her ratable share of the  impairment.  Nothing contained in this subsection may be construed to impose any  liability on any shareholder as a result of any call, enforceable in any  manner other than through a sale of his or her shares as provided in this  subsection.(3) If the impairment is not removed within the period specified in the  Director's notice, the company shall be deemed insolvent and the Director  shall proceed against the company in accordance with Article XIII.(4) If while the impairment exists any officer or director of the  company knowingly renews, issues or delivers or causes to be renewed,  issued or delivered any policy, contract or certificate of insurance unless  allowed by the Director, and the fact of such impairment is known to the  officer or director of the company, such  officer or director shall be guilty of a business offense and may be fined  not less than $200 and not more than $5,000 for each offense.(5) Nothing in this Section prohibits, while such impairment exists, any  such officer, director, trustee, agent or employee from issuing or renewing  a policy of insurance when an insured or owner exercises an option granted  to him or her under an existing policy to obtain new, renewed or converted  insurance coverage.    (Source: P.A. 90-381, eff. 8-14-97.)