215 ILCS 5/66
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IV - Reciprocals

 (from Ch. 73, par. 678)(Section scheduled to be repealed on January 1, 2027)Sec. 66.     Minimum surplus requirements.(1) No reciprocal may after  December 31, 1985 receive a certificate of  authority from the Director to exchange contracts under this Article in the  name of the subscribers 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 seeks  to exchange, as set forth in the following table:    Casualty, Fidelity and Surety(a) 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 and Marine(b) Class 2, Clauses (e), (f), (k) or (l) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $1,000,000.    Multiple Line(c) Class 2, any or all clauses other than those     specified in (b) above, and Class 3, any or all clauses, a surplus of at least $2,000,000.    Glass and Livestock and Domestic Animals(d) Class 2, Clause (f) only or (k) only $250,000;     provided any reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in any amount exceeding $5,000.(2) Every reciprocal subject to this Article issued a certificate of  authority on or after June 28, 1965 must have and at all times maintain a  minimum surplus in an amount equal to 2/3 of the original surplus required  for that particular company at the time it was organized. Any such  reciprocal organized prior to June 28, 1965 must have and at all times  maintain admitted assets in excess of all liabilities in an amount not less  than the minimum amount of advance cash deposits or surplus which was  required for that particular reciprocal at the time it was issued a  certificate of authority. Any reciprocal 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 reciprocal 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 reciprocal, 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) Subsections (2) and (3) shall be applicable until  December 31, 1990 for all reciprocals organized prior to January 1, 1986,  thereafter, such reciprocals must have and maintain surplus as  required by subsections (6) and (7).(5) Every reciprocal subject to this Article and organized after  December 31, 1985 must have and maintain at all times 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:    Casualty, Fidelity and Surety(a) Class 2, Clauses (a), (b), (c), (d), (g), (h) or     (i), 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(b) 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(c) Class 2, any or all clauses other than those     specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.    Glass and Livestock and Domestic Animals(d) Class 2, Clause (f) only or (k) only, $150,000;     provided no reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in an amount exceeding $5,000.(6) Any reciprocal subject to this Article and organized prior to  January 1, 1986 must have by December 31, 1990, and thereafter maintain  until December 31, 1995, 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:    Casualty, Fidelity and Surety(a) 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(b) Class 2, Clauses (e), (f), (k), (1) or Class 3,     any or all clauses or any combination thereof, a surplus of at least $600,000.    Multiple Line(c) Class 2, any or all clauses other than those     specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,200,000.    Glass and Livestock and Domestic Animals(d) Class 2, Clause (f) only or (k) only, $100,000;     provided no reciprocal 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 reciprocal subject to this Article and organized prior  to January 1, 1986 must have by December 31, 1995 and thereafter maintain at  all times 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:    Casualty, Fidelity and Surety(a) 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(b) 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(c) Class 2, any or all clauses other than those     specified in (b) above, and Class 3, any or all clauses, a surplus of at least $1,500,000.    Glass and Livestock and Domestic Animals(d) Class 2, Clause (f) only or (k) only, $150,000;     provided no reciprocal to which this subparagraph is applicable shall not expose itself to any loss on any one risk in the amount exceeding $5,000.(8) The Director shall take action under  Section 83 of this Code against  any reciprocal 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 reciprocal  company on the usual and proper annual statement form prescribed by the  National Association of Insurance Commissioners.    (Source: P.A. 85-293.)