215 ILCS 5/144
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IX - Provisions Applicable To All Companies

 (from Ch. 73, par. 756)Sec. 144.         Limitation  of risk.(1) No company authorized to transact any of the kind of business  enumerated in Classes 2 and 3 of Section 4 in this State may expose itself  to any loss on any one risk or hazard to an amount exceeding 10% of its  admitted assets in excess of its liabilities excluding, in the case of a  stock company, its capital stock liability. No portion of any such risk or  hazard which has been reinsured in a domestic or an approved foreign or  alien company, in accordance with this Code, shall be included in  determining the limitation of risk prescribed herein.(2) Any company transacting the kind of business enumerated in clause  (g) of Class 2 of Section 4 may expose itself to a risk or hazard in excess  of the amount prescribed in subsection (1) if it is protected in excess of  that amount by the following:(a) The co-suretyship of such a company similarly     authorized; or(b) By deposit with it in pledge or conveyance to it     in trust for its protection of property; or(c) By conveyance or mortgage for its protection; or(d) In case a suretyship obligation was made on     behalf or on account of a fiduciary holding property in a trust capacity, by deposit or other disposition of a portion of the property so held in trust that no future sale, mortgage, pledge or other disposition can be made thereof without the consent of such company except by a judgment or order of a court of competent jurisdiction.(3) A company designated in subsection (2) may also execute  transportation or warehouse bonds for United States Internal Revenue taxes  to an amount equal to 50% of its capital and surplus. When the penalty of  the suretyship obligation exceeds the amount of a judgment described  therein as appealed from and thereby secured, or exceeds the amount of the  subject matter in controversy or of the estate in the custody of the  fiduciary for the performance of whose duties it is conditioned, the bond  may be executed if the actual amount of the judgment or the subject matter  in controversy or estate not subject to supervision or control of the  surety is not in excess of such limitation. When the penalty of the  suretyship obligation executed for the performance of a contract exceeds  the contract price, the latter shall be taken as the basis for estimating  the limit of risk within the meaning of this Section.(4) Whenever the ratio of the annual premium volume in proportion to the  policyholder surplus of any company transacting the kinds of business  authorized in Class 2 and Class 3 of Section 4 when reviewed in conjunction  with the kinds and nature of risks insured, the financial condition of the  company and its ownership including but not limited to the liquidity of  assets, relationship of surplus to liabilities and adequacy of outstanding  loss reserves, creates a condition such that the further assumption of  risks might be hazardous to policyholders, creditors or the general public,  then the Director may order such company to take one or more of the  following steps:(a) to reduce the loss exposure by reinsurance;(b) to reduce the volume of new business being     accepted;(c) to suspend the writing of new business for a     period not to exceed 3 months;(d) to increase and maintain the company's surplus by     a contribution to surplus which will raise the surplus for such a period of time and by such an amount as the Director may deem necessary and essential; or(e) to reduce general or acquisition expenses by     specified methods.(f) (Blank).(5) The provisions of this Section do not apply to domestic, foreign, and  alien Lloyds.The company may, within 10 days after receipt of an Order of the  Director under this Section, request that the Director hold a hearing to  determine whether the Order of the Director should be modified in any way.  A request for a hearing by a company under this Section stays any Order of  the Director entered under this Section until such time as the Director has  entered an Order pursuant to the hearing.    (Source: P.A. 89-97, eff. 7-7-95; 90-794, eff. 8-14-98.)