215 ILCS 5/186.1
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XII 1/2 - Corrective Orders

 (from Ch. 73, par. 798.1)Sec. 186.1.     Supervision by the Director.     (1)If the Director  determines that any domestic insurance company is operating in a manner,  that could lead to, or is in, a financial condition, which if continued  would make it hazardous to the public, and its policyholders, the Director  may issue an order:(a) notifying the company and its Board of Directors of his  determination and setting forth the specific deficiencies leading to the determination;(b) setting forth the specific action required or prohibited to correct  the cited deficiencies; and(c) ordering the company to comply with the Director's order within such  reasonable time as the Director shall prescribe.(2) Operation or financial condition deficiencies supporting the  Director's determination under subsection (1) may include, but are not  limited to, the following:(a) The company has failed to maintain a relationship of policyholder  surplus to premium writings or policyholder surplus to claim and unearned  premium reserves which provides a reasonable margin of safety for the  policyholders considering the classes of insurance the company is writing.(b) The company's asset liquidity is not adequate to provide orderly  payment of its obligations.(c) The company's current or projected net income is inadequate to meet  its present or projected obligations.(d) The company has a history of claim reserve inadequacy which affects  the reliability of its financial statements.(e) The company has failed to maintain adequate books and records or has  otherwise conducted its insurance operation in a manner which impairs the  Director's ability to determine its true financial condition.(3) If a company fails to comply with the Director's order issued  pursuant to subsection (1) within the time prescribed for such compliance  the Director may institute proceedings for the conservation, rehabilitation  or liquidation of the company under Article XIII of this Code.(4)(a) The Director may require that the company prepare and file a plan  to correct the deficiencies cited by the Director in his order within such  time as the Director may prescribe.  A corrective order may require,  prohibit or permit certain acts subject to conditions including the  Director's prior approval.  The scope of a corrective order may relate to  but shall not be limited to:(i) the disposition, recovery or mix of assets;(ii) the assumption or cession of reinsurance, including reinsurance of  outstanding risks;(iii) lending and borrowing;(iv) investments;(v) restricting underwriting and marketing activities.(b) The Director may require that any company under such corrective  order direct any certified public accountants, consulting actuary or  financial consultant retained by the company to prepare for the Director  such reports, accounting data and such other reports as the Director may  reasonably require to assist in carrying out the responsibilities of the  Director under this Section.(5)(a) Any company subject to an order under subsections (1) or (4) may  request a hearing before the Director to review that order.  Such request  shall be made in writing within 10 days of the receipt of such order, shall  state the company's objections to the order, and shall be addressed to the  Director.  Such hearing shall be convened not less than 10 days nor more  than 20 days after receipt of the written request for hearing unless  otherwise agreed to by the company.  The Director shall make a final  determination within 10 days after the conclusion of the hearing.  The  Director shall hold all hearings under this subsection privately in  accordance with subsection (6) of this Section.  The pendency of a hearing  or pendency of the Director's final determination shall not stay the effect  of the Director's order.(b) After the Director's final determination pursuant to any hearing  under this subsection, any party to the proceedings whose interests are  affected by the Director's final determination shall be entitled to  judicial review of such final determination pursuant to the provisions of  the "Administrative Review Law".Notwithstanding the availability of administrative remedies or judicial  review under the "Administrative Review Law", a company which is subject to  an order of the Director under this Section shall be entitled to immediate  judicial review and injunctive relief in the Circuit Court of Cook County  or the Circuit Court of Sangamon County upon satisfying the court:(i) that accepting the facts set forth in the order as true, the order  is arbitrary or capricious;(ii) that the company's interests are substantially impaired by the order; and(iii) that the company will suffer permanent injury in the absence of  immediate injunctive relief.(6) All administrative and judicial proceedings arising under this Article  shall be held privately unless a public hearing is requested by the  company, and all records of the company, and all records of the Department  concerning the company, so far as they pertain to or are a  part of the record of the proceedings, shall be and remain confidential,  unless the company requests otherwise.  Such records shall not be subject  to public disclosure under "The Illinois Freedom of Information Act", certified  December 27, 1983, as amended, or otherwise, nor shall such records be  subject to subpoena by third parties, unless the company and Director  consent to such disclosure or release under subpoena.(7) The powers vested in the Director by this Section are additional to  any and all other powers and remedies vested in the Director by law, and  nothing herein contained shall prohibit the Director from proceeding under  any other applicable law or under this Section in conjunction with any other law.    (Source: P.A. 84-715.)