2023 Illinois Compiled Statutes › Chapter 215 - INSURANCE › 215 ILCS 5/ - Illinois Insurance Code. › Article V - Lloyds

(215 ILCS 5/Art. V heading)
ARTICLE V.  
		LLOYDS
(Article scheduled to be repealed on January 1, 2027)
(215 ILCS 5/86) (from Ch. 73, par. 698)
(Section scheduled to be repealed on January 1, 2027)
Sec. 86. Scope of Article.
(1) This Article applies to all groups including
incorporated and
individual unincorporated underwriters transacting an insurance business in
this State through an
attorney-in-fact under the name Lloyds or under a Lloyds plan of operation.
 Groups that meet the requirements of subsection (3) are referred to
in this Code as "Lloyds", and incorporated and individual unincorporated
underwriters are referred to as "underwriters".
(2) As used in this Code:
"Domestic Lloyds" means a Lloyds having its
home office in this State.
"Foreign Lloyds" means a Lloyds having its home
office in any state of the United States other than this State.
"Alien
Lloyds" means a Lloyds having its home office or principal place of
business in any country other than the United States.
(3) A domestic Lloyds must: (i) be established pursuant to a statute or
written charter; (ii) provide for governance by a board of directors or similar
body; and (iii) establish and monitor standards of solvency of its
underwriters.  A foreign or alien Lloyds must be subject to requirements of its
state or country of domicile.  Those requirements must be substantially similar
to those required
of domestic Lloyds.  Domestic, foreign, and alien Lloyds shall
not be
subject to Section 144 of this Code.
(4) All foreign and alien
entities and individuals transacting an insurance business as domestic,
foreign, or alien
Lloyds shall notify the Director and the Secretary of State under the
provisions of this Article, shall be
regulated exclusively by the Director, and shall not be required to obtain a
certificate of authority from the Secretary of State pursuant to any other law
of this State so long as they solely transact business as a domestic, foreign,
or alien Lloyds.  Upon notification, the Secretary of State may require
submission of additional information to determine whether a foreign or alien
individual or entity is transacting business solely as a domestic, foreign, or
alien Lloyds.
(Source: P.A. 100-863, eff. 8-14-18.)
(215 ILCS 5/87) (from Ch. 73, par. 699)
(Section scheduled to be repealed on January 1, 2027)
Sec. 87. 
		Certificate
of authority. 
		It shall be unlawful for any domestic, foreign or alien Lloyds to
transact business in this State unless it has first obtained and has in
force a certificate of authority issued by the Director. All certificates
of authority issued under the provisions of this Article shall terminate on
the thirtieth day of June next following the date of issuance and may be
renewed upon compliance with this Code.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/88) (from Ch. 73, par. 700)
(Section scheduled to be repealed on January 1, 2027)
Sec. 88. 
		Name. 
		
		The name of any Lloyds authorized to transact business under this
Article shall not be the same as, or deceptively similar to, the name of
any domestic company or of any foreign or alien company authorized to
transact business in this State.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/89) (from Ch. 73, par. 701)
(Section scheduled to be repealed on January 1, 2027)
Sec. 89. 
		Principal
office of attorney-in-fact. 
		The principal office of the attorney-in-fact of a domestic Lloyds shall
be maintained in this State.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/90) (from Ch. 73, par. 702)
(Section scheduled to be repealed on January 1, 2027)
Sec. 90. 
		Kinds of
business permitted. 
		Except as otherwise provided in this Article, a Lloyds may be authorized
to transact any or all of the kind or kinds of business enumerated in
Classes 2 and 3 of Section 4.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/91) (from Ch. 73, par. 703)
(Section scheduled to be repealed on January 1, 2027)
Sec. 91. 
		Declaration of domestic Lloyds. 
		The attorney-in-fact for underwriters who desire to form a domestic
Lloyds under this Article shall sign and acknowledge before an officer
authorized to take acknowledgments, a declaration in duplicate. When the
attorney-in-fact is a corporation the declaration shall be acknowledged
by an officer of such corporation. The declaration shall set forth
(a) the name of the attorney-in-fact, and the name or     designation under which contracts are to be effected;
(b) the location of the office of the     attorney-in-fact;
(c) the names and addresses, including streets and     numbers, if any, of the underwriters;
(d) the class or classes of insurance which such     Lloyds proposes to transact and the kinds of insurance in each class which it proposes to write;
(e) such other provisions not inconsistent with law     which may be deemed by the attorney-in-fact or the underwriters to be necessary or advisable.
(Source: P.A. 88-535.)
(215 ILCS 5/92) (from Ch. 73, par. 704)
(Section scheduled to be repealed on January 1, 2027)
Sec. 92. 
		Documents
to be delivered to director. 
		Upon the execution of the declaration by the attorney-in-fact for a
domestic Lloyds, there shall be delivered to the Director
(a) duplicate originals of the declaration;
(b) a copy of the power of attorney of the     attorney-in-fact;
(c) an instrument authorizing the service of process     on the Director provided for in Section 105;
(d) 2 organization bonds or the cash or securities     provided for in Section 93.
(Source: Laws 1965, p. 422.)
(215 ILCS 5/93) (from Ch. 73, par. 705)
(Section scheduled to be repealed on January 1, 2027)
Sec. 93. 
		Bonds. 
		
		The attorney-in-fact for any domestic Lloyds in the process of
organization shall deliver to the Director two bonds in the same penalties
and containing the same provisions so far as applicable as the bonds
required for the organization of a stock company by Section 16, for the
use and benefit of the State of Illinois, the underwriters and creditors,
or in lieu of delivering such bonds the attorney-in-fact may deposit cash
or securities of the same kind or amount and on the same terms and
conditions so far as applicable as provided by said Section.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/94) (from Ch. 73, par. 706)
(Section scheduled to be repealed on January 1, 2027)
Sec. 94. 
		Approval of
documents. 
		The documents and papers so delivered to the Director may be approved or
disapproved by the Director, and the attorney-in-fact or underwriters shall
be entitled to a hearing in the same manner as provided in Section 18 in
the case of documents delivered for approval in connection with the
organization of stock companies. If the documents and papers so delivered
are approved by the Director, the Director shall, thereupon, place on file
in his office all of such documents except one of the duplicate originals
of the declaration, and shall endorse upon such duplicate original his
approval thereof and the month, day and year of such approval, and deliver
it to the attorney-in-fact. Upon the date of approval of said declaration
by the Director, the domestic Lloyds shall be deemed to be in existence.
(Source: Laws 1959, p. 627.)
(215 ILCS 5/95) (from Ch. 73, par. 707)
(Section scheduled to be repealed on January 1, 2027)
Sec. 95. 
		Authority
to solicit underwriters. 
		Upon the approval of the declaration by the Director, he shall issue to
the attorney-in-fact a permit which shall expire at the end of one year
from its date, authorizing the attorney-in-fact to solicit deposits of
underwriters in accordance with this Code and in accordance with the power
of attorney filed with the Director, and to do such other acts as may be
necessary or proper in order to complete the organization of such Lloyds
and to entitle it to receive a certificate of authority to transact an
insurance business.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/96) (from Ch. 73, par. 708)
(Section scheduled to be repealed on January 1, 2027)
Sec. 96. 
		Issuance of
certificate of authority. 
		When the Director has been notified that the underwriters have deposited
a sum not less than the minimum admitted assets required by Section 99,
he shall conduct an examination of such Lloyds. If he finds that the
organization has been completed and that all other requirements of this
Code have been met, he shall issue to such Lloyds a certificate of
authority to transact the kind or kinds of business specified in the
declaration.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/97) (from Ch. 73, par. 709)
(Section scheduled to be repealed on January 1, 2027)
Sec. 97. 
		Deposit
required of underwriters. 
		Each underwriter of a domestic Lloyds shall make and maintain a deposit
of cash or securities, or both, in trust with a responsible bank or trust
company in this State to indemnify policyholders against loss. Securities
so deposited shall be of a character conformable to the requirements of
Article VIII applicable to companies transacting the same kind or kinds
of business. The attorney-in-fact shall file with the Director an
authenticated copy of each trust agreement under which any such deposit is
made. All such deposits shall be considered as admitted assets of such
Lloyds. No change or withdrawal of cash or securities deposited in trust
shall be made without the approval of the Director.
(Source: Laws 1959, p. 1431.)
(215 ILCS 5/98) (from Ch. 73, par. 710)
(Section scheduled to be repealed on January 1, 2027)
Sec. 98. 
		Verified statement. 
		Whenever the Director shall so require, the
attorney-in-fact of a domestic Lloyds shall file with the Director a verified
statement setting forth
(a) the names and addresses of all underwriters; and
(b) a description of the cash and securities     deposited in trust by each underwriter.
(Source: P.A. 90-794, eff. 8-14-98.)
(215 ILCS 5/99) (from Ch. 73, par. 711)
(Section scheduled to be repealed on January 1, 2027)
Sec. 99. 
		Minimum
admitted assets required of domestic Lloyds. 
		Each domestic Lloyds shall at all times keep and maintain in this State
admitted assets, including the deposits of underwriters required by section
97, exceeding all outstanding claims and other liabilities plus the
unearned premiums (less reinsurance premiums) on the policies in force, by
not less than $900,000 if such Lloyds is writing all or any kinds of
insurance enumerated in Class 2 of section 4, by not less than $600,000
if such Lloyds is writing all or any kinds of insurance enumerated in Class
3 of section 4 and by not less than $1,500,000 if such Lloyds is writing
the kinds of insurance enumerated in both Class 2 and Class 3 of section 4,
provided however, that any such Lloyds organized prior to the effective
date of this amendatory Act of 1965 shall have and at all times maintain
admitted assets in excess of all liabilities in the amount which was
required for that particular Lloyds at the time it was issued a certificate
of authority.
(Source: Laws 1965, p. 971.)
(215 ILCS 5/100) (from Ch. 73, par. 712)
(Section scheduled to be repealed on January 1, 2027)
Sec. 100. 
		Minimum
available assets required of domestic Lloyds. 
		The aggregate of the amounts on deposit of all underwriters and all
other admitted assets of each domestic Lloyds available for the payment of
losses shall at all times be at least five times the amount to be assumed
by such Lloyds, net not including reinsurance in licensed insurers, upon a
single risk cumulative for each kind of insurance.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/101) (from Ch. 73, par. 713)
(Section scheduled to be repealed on January 1, 2027)
Sec. 101. 
		Restrictions upon domestic Lloyds.
(1) A domestic Lloyds shall not
(a) change its name or title without first obtaining     the written approval of the Director; nor
(b) establish branches under other or different names     or titles; nor
(c) amend or change its declaration or power of     attorney without the approval of the Director and any amendment thereto or change therein shall be set forth in an amended verified declaration or power of attorney filed with the Director.
(2) A domestic Lloyds shall
(a) maintain the assets required by this Article     either in cash or in investments permitted by this Code;
(b) maintain in this State the principal office of     its attorney-in-fact for the transaction of business therein, and shall notify the Director of any change in the location of the principal office of its attorney-in-fact;
(c) notify the Director of any change in     underwriters; and
(d) notify the Director of any change of     attorney-in-fact by filing with the Director an instrument signed by the underwriters of such Lloyds revoking the previous appointment of any attorney-in-fact and designating and appointing a substitute attorney-in-fact.
(3) All notices required by subsections (1) and (2) except the notice
prescribed by clause (d) of subsection (2) shall be in writing and shall be
verified by the attorney-in-fact if an individual or by an officer of the
attorney-in-fact if a corporation.
(4) Additional underwriters may join and be included in any such Lloyds,
subject to such conditions and requirements as may from time to time be
imposed by such Lloyds and upon meeting the requirements in this Article
with regard to underwriters. Such additional underwriters who may so join
such Lloyds shall be bound by the documents on file with the Director in
the same manner as though they had personally executed the same and shall
have the same rights, powers and duties as all other underwriters of such
Lloyds. The attorney-in-fact authorized by the underwriters to act for them
shall thereafter also be the attorney-in-fact for such additional
underwriters.
(Source: Laws 1937, p. 696.)
(215 ILCS 5/102) (from Ch. 73, par. 714)
(Section scheduled to be repealed on January 1, 2027)
Sec. 102. 
		Restrictions upon foreign Lloyds.
(1) Each foreign Lloyds authorized to transact business in this State
shall
(a) maintain cash and securities, including the     deposits of its underwriters, of a character conformable to the requirements of Article VIII of this Code for domestic companies, at least equal at all times to the minimum admitted assets required by this Article for a domestic Lloyds doing the same kind or kinds of business.
(b) file with the Director an authenticated copy of     its power of attorney and an authenticated copy of the trust agreement or other agreement under which deposits made by underwriters are held;
(c) notify the Director forthwith of any amendment to     its power of attorney, deposit agreement or other documents underlying its organization, by filing with the Director an authenticated copy of such document as amended;
(d) notify the Director forthwith of any change in     its name or change of attorney-in-fact or change of address of its attorney-in-fact.
(2) A foreign Lloyds shall not establish branches under other or
different names or titles.
(3) There shall be filed with the Director by the
attorney-in-fact of such foreign Lloyds at the time of filing the annual
statement, or more
often if required by the Director, a statement verified by the appropriate
official of such Lloyds, setting forth
(a) the names and addresses of all underwriters of     such Lloyds; and
(b) a description of the cash and securities     deposited in trust by each underwriter.
(Source: P.A. 90-794, eff. 8-14-98.)
(215 ILCS 5/103) (from Ch. 73, par. 715)
(Section scheduled to be repealed on January 1, 2027)
Sec. 103. 
		Alien
Lloyds.
(1) Each alien Lloyds authorized to transact business in this State
shall
(a) maintain in this State or any other state of the     United States in which they are authorized to transact business, cash or securities of a character conformable to the requirements of Article VIII of this Code for domestic companies at least equal at all times to the minimum of admitted assets required by this Article for a domestic Lloyds doing the same kind or kinds of business;
(b) make deposits of underwriters in this State in     accordance with the requirements imposed upon domestic Lloyds;
(c) file with the Director an authenticated copy of     its power of attorney and an authenticated copy of the trust agreement or other agreement under which deposits made by underwriters in this State are held;
(d) notify the Director forthwith of any amendment to     its power of attorney, deposit agreement or other documents by filing with the Director an authenticated copy of such document as amended; and
(e) notify the Director forthwith of any change in     its name or change of attorney-in-fact or change of address of its attorney-in-fact.
(2) An alien Lloyds shall not establish branches under other or
different names or titles.
(3) There shall be filed with the Director by the
attorney-in-fact for such Lloyds, who or which shall be a resident person or
corporation of this
State, at the time of filing the annual statement, or more often if
required by the Director, a verified statement setting forth
(a) the names and addresses of all underwriters of     such Lloyds; and
(b) a description of the cash and securities     deposited in trust by each underwriter.
(4) Additional underwriters may join and be included in any such
Lloyds subject to such conditions and requirements as may from time to time be
imposed by such Lloyds and upon meeting the requirements of this Section,
such additional underwriters who may so join such Lloyds shall be bound by
the documents on file with the Director in the same manner as though they
had personally executed the same and shall have the same rights, powers and
duties as all other underwriters of such Lloyds. The attorney-in-fact
authorized by the underwriters to act for them shall thereafter be the
attorney-in-fact for such additional underwriters to the extent of the
power of attorney or other document or authorization by such underwriters
to the attorney-in-fact.
(Source: P.A. 90-794, eff. 8-14-98.)
(215 ILCS 5/104) (from Ch. 73, par. 716)
(Section scheduled to be repealed on January 1, 2027)
Sec. 104. 
		Policy
forms. 
		Every policy issued in this State by any domestic, foreign or alien
Lloyds shall have printed upon its face and back the name of such Lloyds,
the name and address of its attorney-in-fact in this State or agent for
service of process in this State, and in type not smaller than ten point
the words "Not Incorporated."
(Source: Laws 1937, p. 696.)
(215 ILCS 5/105) (from Ch. 73, par. 717)
(Section scheduled to be repealed on January 1, 2027)
Sec. 105. 
		Director as agent;
service of process.
(1) The attorney-in-fact of every Lloyds transacting business in this
State shall file with the Director a duly executed instrument whereby such
Lloyds shall appoint and constitute the Director, his successor or
successors in office, the true and lawful agent of such Lloyds upon whom
all lawful process in any action or legal proceeding against such Lloyds
may be served, and shall agree that any lawful process against such Lloyds
which may be served upon said agent shall be of the same force and validity
as if served upon the attorney-in-fact, and that the authority thereof
shall continue in force irrevocably so long as any liability of such Lloyds
in this State shall remain outstanding.
(2) In any suit instituted against any domestic, foreign or alien Lloyds
transacting business in this State, it shall not be necessary to name the
underwriters as parties defendant, but such Lloyds may be named
as the party defendant in any such suit and service may be had upon all the
underwriters by service upon the last appointed attorney-in-fact or by
service upon the Director, and not otherwise. Any such suit may be brought
in the county in which the cause of action arises or in which the claimant
resides. When such process is served upon the Director as agent to accept
service, duplicate copies of such process shall be delivered to him and he
shall immediately forward one copy of each such process to the last
appointed attorney-in-fact by certified or registered mail, postage
prepaid, giving the
day and hour of such service.
(Source: P.A. 88-535.)
(215 ILCS 5/106) (from Ch. 73, par. 718)
(Section scheduled to be repealed on January 1, 2027)
Sec. 106. 
		Penalties. 
		
		It shall be unlawful for any person to act as an underwriter of or
attorney-in-fact for a Lloyds except in accordance with the provisions of
this Article, and any person violating any of the provisions of this
section shall be guilty of a business offense and shall be required to pay
a penalty of not more than one thousand dollars, for each offense, to be
recovered in the name of the People of the State of Illinois by the State's
Attorney of the county in which the violation occurs, and the penalty so
recovered shall be paid into the county treasury.
(Source: P.A. 77-2699.)
(215 ILCS 5/107) (from Ch. 73, par. 719)
(Section scheduled to be repealed on January 1, 2027)
Sec. 107. 
		Application of other Code provisions. 
		
		Unless otherwise provided in this Article, every Lloyds shall be subject
to other applicable provisions of this Code.
(Source: Laws 1937, p. 696.)