reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 50 - INSURANCE › Part 1103 - LIFE REINSURANCE AGREEMENTS › Section 1103.10 - Preamble

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Department
			 of Financial and Professional Regulation-Division of Insurance (Division)
			 recognizes that licensed insurers routinely enter into reinsurance agreements
			 that yield legitimate relief to the ceding insurer from strain to
			 surplus.
b) However, it is improper
			 for a licensed insurer, in the capacity of ceding insurer, to enter into
			 reinsurance agreements, for the principal purpose of producing significant
			 surplus aid for the ceding insurer, typically on a temporary basis, while not
			 transferring all of the significant risks inherent in the business being
			 reinsured. In substance or effect, the expected potential liability to the
			 ceding insurer remains basically unchanged by the reinsurance transaction,
			 notwithstanding certain risk elements in the reinsurance agreement such as
			 catastrophic mortality or extraordinary survival. The terms of reinsurance
			 agreements described in Section
			 1103.30
			 would violate:
1) Section 133 and 136 of the
			 Illinois Insurance Code (Code) [215 ILCS 5/133 and 136 ], relating to financial
			 statements that do not properly reflect the financial condition of the ceding
			 insurer;
2) Section 173.2 of the
			 Code [215 ILCS
			 5/173.2 ], relating to reinsurance reserve credits,
			 thus resulting in a ceding insurer improperly reducing liabilities or
			 establishing assets for reinsurance ceded; and
3) Section 188 of the Code [215 ILCS 5/800 ],
			 relating to creating a situation that may be hazardous to policyholders and the
			 people of this State.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1103 - LIFE REINSURANCE AGREEMENTS › Section 1103.20 - Scope

Current through Register Vol. 48, No. 28, July 12, 2024
This Part shall apply to all domestic life, accident and health
				insurers and to all other licensed life and health insurers who are not subject
				to the same regulation in their domiciliary state. This Part shall also apply
				to licensed property and casualty insurers with respect to their accident and
				health business. This Part shall not apply to assumption reinsurance, yearly
				renewable term reinsurance, or certain nonproportional reinsurance, such as
				stop loss or catastrophe reinsurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1103 - LIFE REINSURANCE AGREEMENTS › Section 1103.25 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Department means the Illinois Department of Financial and
				Professional Regulation.
Director means the Director of the Illinois Department of
				Financial and Professional Regulation-Division of Insurance.
Division means the Department of Financial and Professional
				Regulation-Division of Insurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1103 - LIFE REINSURANCE AGREEMENTS › Section 1103.40 - Written Agreements

Current through Register Vol. 48, No. 28, July 12, 2024
a) No
			 reinsurance agreement or amendment to any agreement shall be used to reduce any
			 liability or to establish any asset in any financial statement filed with the
			 Division, unless the agreement or amendment or a binding letter of intent has
			 been duly executed by both parties no later than the "as of date" of the
			 financial statement.
b) In the case
			 of a letter of intent, a reinsurance agreement or an amendment to a reinsurance
			 agreement must be executed within a reasonable period of time, not exceeding 90
			 days from the execution date of the letter of intent, in order for credit to be
			 granted for the reinsurance ceded.
c) The reinsurance agreement shall contain
			 provisions that:
1) The agreement shall
			 constitute the entire agreement between the parties with respect to the
			 business being reinsured thereunder and that there are no understandings
			 between the parties other than as expressed in the agreement; and
2) Any change or modification to the
			 agreement shall be null and void unless made by amendment to the agreement and
			 signed by both parties.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1103 - LIFE REINSURANCE AGREEMENTS › Section 1103.50 - Existing Agreements

Current through Register Vol. 48, No. 28, July 12, 2024
On or before December 31, 2011, all insurers that are subject
				to this Part must be able to certify that they have reduced to zero any reserve
				credits or assets established with respect to reinsurance agreements entered
				into prior to December 31, 1994 that, under the provisions of this Part, would
				not be entitled to recognition of the reserve credits or established assets;
				however, the reinsurance agreements must have been in compliance with the laws
				and regulations in existence immediately preceding the effective date of this
				Part (January 5, 1994).
Illinois Administrative Code › Title 50 - INSURANCE › Part 1103 - LIFE REINSURANCE AGREEMENTS › Exhibit A - Risk Category

Current through Register Vol. 48, No. 28, July 12, 2024
Risk Categories:
a)
			 Morbidity
b) Mortality
c) Lapse
This is the risk that a policy will voluntarily terminate prior
				to the recoupment of a statutory surplus strain experienced at issue of the
				policy.
d) Credit Quality
			 (C1)
This is the risk that invested assets supporting the reinsured
				business will decrease in value. The main hazards are that assets will default
				or that there will be a decrease in earning power. It excludes market value
				declines due to changes in interest rate.
e) Reinvestment (C3)
This is the risk that interest rates will fall and funds
				reinvested (coupon payments or monies received upon asset maturity or call)
				will, therefore, earn less than expected. If asset durations are less than
				liability durations, the mismatch will increase.
f) Disintermediation (C3)
This is the risk that interest rates rise and policy loans and
				surrenders increase or maturing contracts do not renew at anticipated rates of
				renewal. If asset durations are greater than the liability durations, the
				mismatch will increase. Policyholders will move their funds into new products
				offering higher rates. The company may have to sell assets at a loss to provide
				for these withdrawals.
Risk Category
a
b
c
d
e
f
Health Insurance - other than LTC/LTD
+
0
+
0
0
0
Health Insurance - LTC/LTD
+
0
+
+
+
0
Immediate Annuities
0
+
0
+
+
0
Single Premium Deferred Annuities
0
0
+
+
+
+
Flexible Premium Deferred Annuities
0
0
+
+
+
+
Guaranteed Interest Contracts
0
0
0
+
+
+
Other Annuity Deposit Business
0
0
+
+
+
+
Single Premium Whole Life
0
+
+
+
+
+
Traditional Non-Par Permanent
0
+
+
+
+
+
Traditional Non-Par Term
0
+
+
0
0
0
Traditional Par Permanent
0
+
+
+
+
+
Traditional Par Term
0
+
+
0
0
0
Adjustable Premium Permanent
0
+
+
+
+
+
Indeterminate Premium Permanent
0
+
+
+
+
+
Universal Life Flexible Premium
0
+
+
+
+
+
Universal Life Fixed Premium
0
+
+
+
+
+
Universal Life Fixed Premium
0
+
+
+
+
+
dump-in premiums allowed
+ = Significant
0 = Insignificant
LTC = Long-Term Care Insurance
LTD = Long-Term Disability Insurance
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.15 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Code" means the Illinois Insurance Code [215 ILCS 5 ].
"Covered Agreement" means an agreement entered into pursuant to
				the Dodd-Frank Wall Street Reform and Consumer Protection Act (31
				U.S.C. 313 and
				314) that is
				currently in effect or in a period of provisional application and addresses the
				elimination, under specified conditions, of collateral requirements as a
				condition for entering into any reinsurance agreement with a ceding insurer
				domiciled in Illinois or for allowing the ceding insurer to recognize credit
				for reinsurance.
"Department" means the Department of Insurance.
"Director" means the Director of the Department of
				Insurance.
"ICC" means the International Chamber of Commerce.
"Jurisdiction" means any state, district, or territory of the
				United States or any lawful government.
"NAIC" means the National Association of Insurance
				Commissioners.
"SEC" means the U.S. Securities and Exchange Commission.
"Solvent Scheme of Arrangement" means a foreign or alien
				statutory or regulatory compromise procedure subject to requisite majority
				creditor approval and judicial sanction in the assuming insurer's home
				jurisdiction either to finally commute liabilities of duly noticed classed
				members or creditors of a solvent debtor, or to reorganize or restructure the
				debts and obligations of a solvent debtor on a final basis, and which may be
				subject to judicial recognition and enforcement of the arrangement by a
				governing authority outside the ceding insurer's home
				jurisdiction.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.20 - Credit for Reinsurance - Reinsurer Licensed in this State

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 173.1(1)(A) of the Code, the Director shall
				allow credit for reinsurance ceded by a domestic insurer to assuming insurers
				which were licensed in this State as of the date of the ceding insurer's most
				recent statutory financial statement.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.30 - Credit for Reinsurance - Accredited Reinsurers

Current through Register Vol. 48, No. 28, July 12, 2024
a) Pursuant to Section 173.1(1)(B) of the
			 Code, the Director shall allow credit for reinsurance ceded by a domestic
			 insurer to an assuming insurer that is accredited as a reinsurer in this State
			 as of the date of the ceding insurer's most recent statutory financial
			 statement. An accredited reinsurer must:
1)
			 File a properly executed Form AR-1 (Certificate of Assuming Insurer) found in
			 Appendix A as evidence of its submission to this State's jurisdiction and to
			 this State's authority to examine its books and records;
2) File with the Director a certified copy of
			 a letter or a certificate of authority or of compliance as evidence that it is
			 licensed to transact insurance or reinsurance in at least one state or, in the
			 case of a United States branch of an alien assuming insurer, is entered through
			 and licensed to transact insurance or reinsurance in at least one
			 state;
3) File annually with the
			 Director a copy of its annual financial statement filed with the insurance
			 department of its state of domicile or, in the case of an alien assuming
			 insurer, with the state through which it is entered and in which it is licensed
			 to transact insurance or reinsurance, and a copy of its most recent audited
			 financial statement; and
4)
			 Maintain a surplus as regards policyholders in an amount not less than $20
			 million, or obtain the affirmative approval of the Director upon a finding that
			 it has adequate financial capacity to meet its reinsurance obligations and is
			 otherwise qualified to assume reinsurance from domestic insurers.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.35 - Credit for Reinsurance - Reinsurer Domiciled in Another State

Current through Register Vol. 48, No. 28, July 12, 2024
a) As part of
			 complying with Section 173.1(1)(B-5)(1)(b) of the Code, an assuming insurer or
			 U.S. branch of an alien assuming insurer must file with the Director a properly
			 executed Form AR-1 found in Appendix A, which will be evidence of its
			 submission to this State's authority to examine its books and
			 records.
b) As used in Section
			 173.1(1)(B-5)(1) of the Code,
substantially similar
standards
			 means credit for reinsurance standards the Director determines equal or exceed
			 the standards of Article XI of the Code and this Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.45 - Credit for Reinsurance - Certified Reinsurers

Current through Register Vol. 48, No. 28, July 12, 2024
a) Pursuant to Section 173.1 of the
			 Code
,
the Director shall allow credit for reinsurance ceded by a
			 domestic insurer to an assuming insurer that has been certified as a reinsurer
			 in Illinois at all times for which statutory financial statement credit for
			 reinsurance is claimed under this Section. The credit allowed shall be based
			 upon the security held by or on behalf of the ceding insurer in accordance with
			 a rating assigned to the certified reinsurer by the Director. The security
			 shall be in a form consistent with the provisions of Section 173.1 of the Code.
			 The amount of security required for full credit to be allowed shall correspond
			 with the following requirements:
1) Affiliated
			 reinsurance transactions shall receive the same opportunity for reduced
			 security requirements as all other reinsurance transactions.
2) The Director shall require the certified
			 reinsurer to post, for the benefit of the ceding insurer or its estate, 100%
			 security upon the entry of an order of rehabilitation, liquidation or
			 conservation against the ceding insurer.
3) To facilitate the prompt payment of
			 claims, if the Director has assigned a Secure-1, Secure-2, Secure-3 or Secure-4
			 rating to a certified reinsurer under Section 173.1(1)(C-5)(5) of the Code, the
			 Director may allow the certified reinsurer to defer posting security for
			 catastrophe recoverables for a period of up to one year from the date of the
			 first instance of a liability reserve entry by the ceding company as a result
			 of a loss from a catastrophic occurrence that is likely to result in
			 significant insured losses recognized by the Director. The one-year deferral
			 period is contingent upon the certified reinsurer continuing to pay claims in a
			 timely manner in compliance with its contractual obligations as set forth in
			 the reinsurance agreement under which the claims are ceded. Reinsurance
			 recoverables for only the following lines of business, as reported on the NAIC
			 annual financial statement related specifically to the catastrophic occurrence,
			 will be included in the deferral:
A) Line 1:
			 Fire
B) Line 2: Allied
			 Lines
C) Line 3: Farmowners
			 multiple peril
D) Line 4:
			 Homeowners multiple peril
E) Line
			 5: Commercial multiple peril
F)
			 Line 9: Inland Marine
G) Line 12:
			 Earthquake
H) Line 21: Auto
			 physical damage
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.50 - Credit for Reinsurance Required by Law

Current through Register Vol. 48, No. 28, July 12, 2024
The Director shall allow credit for reinsurance ceded by a
				domestic insurer
to an assuming insurer not meeting the requirements of
				Section 173.1(1)(A), (B), (B-5), (C), (C-5) or (C-10)
of the Code
but only with respect to the insurance of risks located in
				jurisdictions where that reinsurance is required by applicable law or
				regulation of that jurisdiction
. (Section 173.1(1)(D) of the
				Code)
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.60 - Reduction from Liability for Reinsurance Ceded to an Unauthorized Assuming Insurer

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 173.1(2) of the Code, the Director shall
				allow a reduction from liability for reinsurance ceded by a domestic insurer to
				an assuming insurer not meeting the requirements of Section 173.1(1) of the
				Code in an amount not exceeding the liabilities carried by the ceding insurer.
				The reduction shall be in the amount of funds held by or on behalf of the
				ceding insurer, including funds held in trust for the exclusive benefit of the
				ceding insurer, under a reinsurance contract with that assuming insurer as
				security for the payment of obligations thereunder. The security must be held
				in the U.S. subject to withdrawal solely by, and under the exclusive control
				of, the ceding insurer or, in the case of a trust, held in a qualified U.S.
				financial institution as defined in Section 173.1(3)(B) of the Code.
a) This security may be in the form of any of
			 the following:
1) Cash.
2) Securities qualifying as admitted assets
			 under Article VIII of the Code and listed by the NAIC Securities Valuation
			 Office, including those deemed exempt from filing by the "Purposes and
			 Procedures Manual of the NAIC Investment Analysis Office", as of December 31,
			 2022 (National Association of Insurance Commissioners, One New York Plaza, Ste.
			 4210, New York NY 10004)) (no later editions or amendments), available at
https://www.naic.org
.
3) Clean, irrevocable, unconditional and
			 "evergreen" letters of credit issued or confirmed by a qualified U.S.
			 institution, as defined in Section 173.1(3)(A) of the Code, effective no later
			 than December 31 of the year for which filing is being made, and in the
			 possession of the ceding insurer on or before the filing date of its annual
			 financial statement. Letters of credit meeting applicable standards of issuer
			 acceptability as of the dates of their issuance (or confirmation) shall,
			 notwithstanding the issuing (or confirming) institution's subsequent failure to
			 meet applicable standards of issuer acceptability, continue to be acceptable as
			 security until their expiration, extension, renewal, modification or amendment,
			 whichever first occurs.
4) Any
			 other form of security acceptable to the Director.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.70 - Trust Agreements Qualified Under Section 1104.60

Current through Register Vol. 48, No. 28, July 12, 2024
a) As used in this Section:
1) Beneficiary means the entity for whose
			 sole benefit the trust has been established and any successor of the
			 beneficiary by operation of law. If a court of law appoints a successor in
			 interest to the named beneficiary, the named beneficiary includes and is
			 limited to the court appointed domiciliary receiver (including conservator,
			 rehabilitator or liquidator).
2)
			 Grantor means the entity that has established a trust for the sole benefit of
			 the beneficiary. When established in conjunction with a reinsurance agreement,
			 the grantor is the unlicensed, unaccredited assuming insurer.
3) Obligations, as used in subsection
			 (b)(11), means:
A) Reinsured losses and
			 allocated loss adjustment expenses paid by the ceding company, but not
			 recovered from the assuming insurer;
B) Reserves for reinsured losses reported and
			 outstanding;
C) Reserves for
			 reinsured losses incurred but not reported; and
D) Reserves for allocated reinsured loss
			 adjustment expenses and unearned premiums.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.90 - Other Security

Current through Register Vol. 48, No. 28, July 12, 2024
A ceding insurer may take credit for unencumbered funds
				withheld by the ceding insurer in the United States subject to withdrawal
				solely by the ceding insurer and under its exclusive control.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.100 - Reinsurance Contract

Current through Register Vol. 48, No. 28, July 12, 2024
Credit will not be granted to a ceding insurer for reinsurance
				effected with assuming insurers meeting the requirements of Section
				1104.20,
				1104.30,
				1104.35,
				1104.40,
				1104.45,
				1104.47 or
				1104.60
				or otherwise in compliance with Section 173.1(1) of the Code after January 1,
				1996, unless the reinsurance agreement:
a) Includes a proper insolvency clause
			 pursuant to Section 173.2 of the Code;
b) Includes a provision pursuant to Section
			 173.1(1)(E) of the Code under which the assuming insurer, if an unauthorized
			 assuming insurer, has submitted to the jurisdiction of an alternative dispute
			 resolution panel or court of competent jurisdiction within the U.S., has agreed
			 to comply with all requirements necessary to give the court or panel
			 jurisdiction, has designated an agent upon whom service of process may be
			 effected, and has agreed to abide by the final decision of the court or panel;
			 and
c) Includes a proper
			 reinsurance intermediary clause, if applicable, that stipulates that the credit
			 risk for the intermediary is carried by the assuming insurer.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.110 - Contracts Affected

Current through Register Vol. 48, No. 28, July 12, 2024
All new and renewal reinsurance transactions entered into after
				January 1, 1996 shall conform to the requirements of this Part if credit is to
				be given to the ceding insurer for such reinsurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.120 - Severability

Current through Register Vol. 48, No. 28, July 12, 2024
If any provisions of this Part, or their application to any
				person or circumstance is held invalid, such determination shall not affect
				other provisions or applications of this Part which can be given effect without
				the invalid provision or application, and to that end the provisions of this
				Part are separable.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Appendix A - Form AR-1 Certificate of Assuming Insurer

Current through Register Vol. 48, No. 28, July 12, 2024
FORM AR-1
CERTIFICATE OF ASSUMING INSURER
I,
________________________________,
___________________________
(name of officer)
(title of officer)
of
_____________________________ ,
the assuming insurer under a
(name of assuming insurer)
reinsurance agreement(s) with one or more insurers
						  domiciled in Illinois, hereby certify
that
_____________________________
("Assuming Insurer"):
(name of assuming insurer)
1. Submits to the jurisdiction of any court of competent
				jurisdiction in Illinois for the adjudication of any issues arising out of the
				reinsurance agreement(s), agrees to comply with all requirements necessary to
				give such court jurisdiction, and will abide by final decision of such court or
				any appellate court in the event of an appeal. Nothing in this paragraph
				constitutes or should be understood to constitute a waiver of Assuming
				Insurer's rights to commence an action in any court of competent jurisdiction
				in the United States, to remove an action to a United States District Court, or
				to seek a transfer of a case to another court as permitted by the laws of the
				United States or of any state in the United States. This paragraph is not
				intended to conflict with or override the obligation of the parties to the
				reinsurance agreement(s) to arbitrate their disputes if such an obligation is
				created in the agreement(s).
2. Designates the Director of the Division of Insurance as its
				lawful attorney upon whom may be served any lawful process in any action, suit
				or proceeding arising out of the reinsurance agreement(s) instituted by or on
				behalf of the ceding insurer.
3. Submits to the authority of the Director of the Division of
				Insurance to examine its books and records and agrees to bear the expense of
				any such examination.
4. Submits with this form a current list of insurers domiciled
				in Illinois reinsured by Assuming Insurer and undertakes to submit additions to
				or deletions from the list to the Director at least once per calendar quarter.
Date: ___________________________
___________________________
(name of assuming insurer)
BY:
___________________________
(name of officer)
___________________________
(title of officer)
Illinois Administrative Code › Title 50 - INSURANCE › Part 1250 - CORRECTIVE ORDERS › Section 1250.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
a) The purpose of
			 this Part is to set forth the standards the Director may use for identifying
			 insurers found to be in such condition as to render the continuance of their
			 business hazardous to their policyholders, creditors or the general
			 public.
b) This Part shall not be
			 interpreted to limit the powers granted the Director to enforce any laws or
			 parts of laws of this State, nor shall this Part be interpreted to supersede
			 any laws or parts of laws of this State.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1250 - CORRECTIVE ORDERS › Section 1250.15 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Actuarial Standards of Practice means the actuarial standards
				used in keeping with current professional practice by the Actuarial Standards
				Board (1100 Seventeenth Street, NW, Seventh Floor, Washington DC 20036) that
				are to be utilized by actuaries in performance of their assignments.
Code means the Illinois Insurance Code [215 ILCS 5 ].
Department means the Illinois Department of Insurance.
Director means the Director of the Illinois Department of
				Insurance.
Insurer means any person or company subject to the Code.
NAIC means the National Association of Insurance
				Commissioners.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1250 - CORRECTIVE ORDERS › Section 1250.30 - Director's Authority

Current through Register Vol. 48, No. 28, July 12, 2024
a) For
			 purposes of making a determination of an insurer's financial condition under
			 this Part, the Director may:
1) Disregard any
			 credit or amount receivable resulting from transactions with a reinsurer that
			 is insolvent, impaired or otherwise subject to a delinquency
			 proceeding;
2) Make adjustments,
			 including disallowances, to asset values attributable to investments in or
			 transactions with parents, subsidiaries or affiliates, in keeping with current
			 professional practices consistent with NAIC accounting practices and
			 procedures;
3) Refuse to recognize
			 the stated value of accounts receivable if the ability to collect the
			 receivables is highly speculative in view of the age of the account or the
			 financial condition of the debtor;
4) Increase the insurer's liability in an
			 amount equal to any contingent liability, pledge, or guarantee not otherwise
			 included if there is a substantial risk that the insurer will be called upon to
			 meet the obligation undertaken within the next 12 month period;
5) Increase the company's reserves for
			 losses, loss adjustment expenses, or unearned premium or any other liability to
			 reflect adjustments recommended by the Department's financial examiners or
			 actuaries or by the person preparing the statement of actuarial opinion as
			 required by Section 136 of the Code and in keeping with the current
			 professional practice stated in the NAIC Annual Statement Instructions for
			 Property and Casualty Insurers;
6)
			 Make any other appropriate adjustment to the company's assets and liabilities
			 necessary to reflect the insurer's financial condition.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1250 - CORRECTIVE ORDERS › Section 1250.40 - Judicial Review

Current through Register Vol. 48, No. 28, July 12, 2024
Any order or decision of the Director shall be subject to
				review in accordance with the Administrative Review Law [735 ILCS 5 /Art. III]
				at the instance of any party to the proceedings whose interests are
				substantially affected.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1305 - PRIOR NOTIFICATION OF DIVIDENDS OR DISTRIBUTIONS › Section 1305.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to describe the information that
				shall be provided to the Director by a domestic captive insurance company to
				notify the Director to seek approval of all dividends and other distributions
				under Section 123C-26 of the Illinois Insurance Code and provide penalties for
				the failure to comply with this Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1305 - PRIOR NOTIFICATION OF DIVIDENDS OR DISTRIBUTIONS › Section 1305.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Code" means the Illinois Insurance Code [215 ILCS 5].
"Department" means the Illinois Department of Insurance.
"Director" means the Director of the Illinois Department of
				Insurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1305 - PRIOR NOTIFICATION OF DIVIDENDS OR DISTRIBUTIONS › Section 1305.30 - Prior Notification of Dividends and Other Distributions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Notice
1) Any domestic captive insurance company
			 required by Section 123C-26 of the Code to notify the Director of a dividend or
			 other distribution to holders of an equity interest in the captive insurance
			 company shall notify the Director of the proposed dividend or distribution in
			 writing within 5 business days following the declaration and no less than 10
			 business days prior to payment. The 10-day period shall begin the day the
			 notice is received by the Department. The notice shall be deemed incomplete
			 unless all the information required by this Part has been included.
2) Proof of Receipt. Certified mail
			 confirmation, confirmation from a commercial delivery service, or the date
			 stamped upon the notice by the Department acknowledging receipt of the filing
			 required by this Part shall serve as proof of the date of receipt of the
			 filing.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1305 - PRIOR NOTIFICATION OF DIVIDENDS OR DISTRIBUTIONS › Section 1305.40 - Penalties

Current through Register Vol. 48, No. 28, July 12, 2024
Failure of a domestic captive insurance company to timely file
				the report required by this Part or Section 123C-26 of the Code or to issue
				dividends or other distributions without the approval of the Director shall
				subject the domestic captive insurance company or companies to Article XXIV of
				the Code or any other remedy available to the Director.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1402 - WAR CLAUSES › Section 1402.5 - Introduction

Current through Register Vol. 48, No. 28, July 12, 2024
Life insurance policy forms may contain war clauses
				substantially complying with the recommendations contained in the report, dated
				December 3, 1951, of the special Sub-Committee of the Life Committee of the
				National Association of Insurance Commissioners as follows:
Illinois Administrative Code › Title 50 - INSURANCE › Part 1402 - WAR CLAUSES › Section 1402.10 - Military Exclusion

Current through Register Vol. 48, No. 28, July 12, 2024
Risk of death may be excluded:
a) As a result of war or act of war, if the
			 cause of death occurs while the insured is serving in the military, naval or
			 air forces of any country, combination of countries or international
			 organization, provided such death occurs while in such forces or within six (6)
			 months after termination of service in such forces; or
b) As a result of the special hazards
			 incident to service in the military, naval or air forces of any country,
			 combination of countries or international organization, if the cause of death
			 occurs while the insured is serving in such forces and is outside the home
			 area, provided such death occurs outside the home area or within six (6) months
			 after the insured's return to the home area in such forces or within six (6)
			 months after the termination of service in such forces, whichever is
			 earlier.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1402 - WAR CLAUSES › Section 1402.20 - Non-Combatant Civilian Exclusion

Current through Register Vol. 48, No. 28, July 12, 2024
Risk of death may be excluded:
a) As a result of war or an act of war while
			 the insured is serving in any civilian non-combatant unit serving with such
			 forces, provided such death occurs while in such units or within six (6) months
			 after termination of service in such units; or
b) As a result of the special hazards
			 incident to service in any civilian non-combatant unit serving with such
			 forces, if the cause of death occurs while the insured is serving in such units
			 and is outside the home area, provided such death occurs outside the home area
			 or within six (6) months after the insured's return to the home area in such
			 units or within six (6) months after the termination of service in such units,
			 whichever is earlier.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1402 - WAR CLAUSES › Section 1402.30 - Civilian Exclusion

Current through Register Vol. 48, No. 28, July 12, 2024
Risk of death may be excluded as a result of war on an act of
				war, within two (2) years from the date of issue of the policy, while the
				insured is not in such forces or units, if the cause of death occurs while the
				insured is outside the home area, provided such death occurs outside the home
				area or within six (6) months after the insured's return to the home
				area.
a) "Home Area" is defined as the
			 50 States of the United States, District of Columbia, Canal Zone, Puerto Rico,
			 Virgin Islands and Canada.
b) "War"
			 includes, but is not limited to, declared war, and armed aggression by one or
			 more countries resisted on orders of any other country, combination of
			 countries or international organization.
c) "Act of War" means any act peculiar to
			 military, naval or air operations in time of war.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1404 - VALUATION OF RESERVES › Section 1404.10 - Completion and Review of Valuation of Reserves

Current through Register Vol. 48, No. 28, July 12, 2024
The valuation of policies referred to in Section 223 of the
				Illinois Insurance Code will be completed in the companies' offices. Annually
				these valuations will be inspected, reviewed and test checked by the Actuarial
				Staff of this Department to such an extent as may be found necessary to
				establish the accuracy of the valuation.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.10 - Authority

Current through Register Vol. 48, No. 28, July 12, 2024
This Part is issued by the Director of the Department of
				Insurance (Director) pursuant to Section 401 of the Illinois Insurance Code,
				which empowers the Director to make reasonable rules and regulations as may be
				necessary for making effective the insurance laws of this State. This Part
				implements Section 143 of the Illinois Insurance Code [215 ILCS 5/143 ] by
				establishing a "Policy Form Manual" designed to make uniform the requirements
				and practices in the filing of certain policy forms with the
				Director.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.15 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Code means the Illinois Insurance Code [215 ILCS 5 ].
Department means the Department of Insurance.
Director means the Director of the Department of
				Insurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.20 - Illinois Guidelines for Filing and Approval of Life and Annuity Forms

Current through Register Vol. 48, No. 28, July 12, 2024
Following are some general requirements that should be helpful
				to industry personnel involved in drafting and filing policy forms.
a) Policy Forms
1) "Policy Form" Defined. The term "policy
			 form" as used in this Part is defined in the Insurance Code. It means any
			 policy, certificate, endorsement, rider, by-law or other matter incorporated by
			 reference or an application blank. It does not include riders or endorsements
			 issued or made at the request of the individual policyholder relating to the
			 manner of distribution of benefits or to the reservation of rights and benefits
			 under a life insurance policy.
2)
			 Policy forms exempt from filing are as follows:
A) Notice Regarding Replacement (see 50 Ill.
			 Adm. Code
			 917.70
			 ).
B) Policy Summaries.
C) Buyer's Guides (see 50 Ill. Adm. Code
			 930.40(a)
			 ).
3) Policy forms
			 prohibited pursuant to Sections 143(1) and 224(1)(c) of the Code are as
			 follows:
A) Certificates issued in lieu of a
			 duplicate insurance policy.
B)
			 Forms containing provisions excluding scuba diving, hang-gliding, motorcycle
			 racing, race car or stock car racing, or hazardous sports.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.30 - Applications

Current through Register Vol. 48, No. 28, July 12, 2024
a) General
1) The application for a policy shall contain
			 spaces for the name and signature of the producer or other licensee who
			 solicited and wrote the application, pursuant to Section 500-155 of the
			 Code.
2) The size of the type in
			 the declaration portion of an application must meet a reasonable standard of
			 legibility.
3) In applications
			 providing for home office endorsement, there shall be no change in the amount
			 of insurance or benefits, unless agreed to in writing by the
			 applicant.
4) Applications shall
			 fully comply with the applicable Sections of Article XL of the Code (Insurance
			 Information and Privacy Protection).
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.40 - Policy Forms

Current through Register Vol. 48, No. 28, July 12, 2024
a) Payment of
			 Premiums
1) Advance Premium Deposits - A fund
			 or account for payment of unspecified premiums (whether by policy or by rider)
			 must conform to the requirements of Section 240 of the Code.
2) Grace Period - Policy must provide for
			 continuance in force during the grace period and deduction (not necessarily
			 payment) of any unpaid premium in settlement under the policy pursuant to
			 Section 224(1)(b) of the Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.50 - Group Insurance

Current through Register Vol. 48, No. 28, July 12, 2024
a) Group
			 Insurance is defined in Section
			 230.1
			 of the Code. Standard Provisions for Group Policies are cited in Section 231.1
			 of the Code.
b) Group Insurance
			 Contributory or Non-Contributory
The policy shall state whether it is either contributory or
				non-contributory.
c) Paid-Up
			 Term Life Insurance Benefit in Group Ordinary Life
Any group ordinary life insurance form providing a paid-up term
				life insurance benefit may contain a limitation to the effect that, when the
				paid-up benefit amounts to less than $1,000, only the alternative cash value as
				provided in the form shall be payable.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.60 - Franchise Life Insurance

Current through Register Vol. 48, No. 28, July 12, 2024
Franchise (or Wholesale) Life Insurance is a form of personal
				coverage issued under individual policies to a group under conditions which are
				similar to Group Insurance but which do not necessarily qualify under the Group
				Insurance definition.
a) Identity of
			 Insureds
Franchise life insurance policies shall not be used to insure
				heterogeneous groups, e.g., insureds in a state or locality.
b) Termination or Non-Renewal of Individual
			 Coverage
Termination either by cancellation or refusal to renew any
				individual contracts of the group is prohibited, unless all like contracts of
				the group are terminated or non-renewed at the expiration of the contract. The
				termination or non-renewal conditions which may be included in such contracts
				are those which terminate coverage because of non-payment of premium,
				discontinuance of employment of the insured by the named employer,
				discontinuance of employee as a member of a class of eligible employees, or the
				discontinuance of membership in the designated organization or association, and
				in addition, coverage may be automatically terminated at a designated attained
				age. Any other termination or non-renewal conditions must be approved by the
				Director.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.70 - Annuities

Current through Register Vol. 48, No. 28, July 12, 2024
a) Group Variable
			 Annuities
The applicable jurisdiction for group variable annuity
				contracts is the jurisdiction where the group master policy is
				delivered.
b) Fixed Dollar
			 or Flexible Premium Individual Annuity Contracts - Options to Purchase
			 Additional Annuity
If options for the purchase of additional annuity benefits are
				provided, including a flexible annuity plan, it must be made clear that the
				payments are considered "premiums" or purchase payments, rather than deposits,
				to distinguish annuity premiums from premiums placed in a Premium Deposit
				Reserve Account, as provided for by Section 240 of the Code.
c) Notice to Policyholder
1) The policyholder must be made aware of the
			 amount of annuity purchased, either by including a table of values in the
			 contract, or by specifying in the contract that notices of the current or other
			 values will be sent to the policyholder upon request.
2) The charges, including but not limited to
			 withdrawal and surrender charges, minimum guaranteed interest rates, and a
			 statement of the mortality table to be used must be incorporated in the policy
			 as provided for by Section 229.4 a of the Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.80 - Alternate and/or Insert Pages

Current through Register Vol. 48, No. 28, July 12, 2024
For "alternate" and/or "insert" pages, a company may use the
				following guideline:
a) If the policy
			 jacket or the outside covers are to be used with more than one plan of
			 insurance, the form shall be submitted on this basis. The usual title and brief
			 explanation of the type of policy need not be placed on the jacket or covers if
			 the front cover is less than a full policy page, or if the cover contains a
			 window. In those instances, the applicable material shall be placed in a
			 position on the first (or specification) page so that it would be exposed even
			 when the cover jacket is over the first page, as provided for by Section
			 224(1)(m) of the Code.
b) If the
			 policy is submitted and the review is desired with consideration given to each
			 individual page, the insert pages shall be properly identified and the letter
			 of submittal shall list each page as a form.
c) For submittal of alternate or insert pages
			 to be used with existing policies in supply, if the page is to be inserted at
			 the date of issue of the policy, consideration will be given if the form is
			 properly identified. The submittal letter shall fully explain the changes that
			 would be made.
d) If a change is to
			 be made on a previously issued policy, with the consent of the policyholder,
			 this change shall be accomplished by an endorsement or rider approved for use
			 in the State of Illinois, as provided for by Section
			 1405.40(v).
Illinois Administrative Code › Title 50 - INSURANCE › Part 1405 - CONSTRUCTION AND FILING OF LIFE INSURANCE AND ANNUITY FORMS › Section 1405.90 - Substitution Filings

Current through Register Vol. 48, No. 28, July 12, 2024
A substitution filing of a new form for a previously approved
				form having the same form number must contain the following:
a) The approval date of the original form and
			 a statement that the original form was never used; and
b) A red-lined version of the changes to the
			 previously approved form.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to provide standards for both
				individual and group life insurance policy illustrations that will protect
				consumers and foster consumer education. This Part provides illustration
				formats, prescribes standards to be followed when illustrations are used, and
				specifies the disclosures that are required in connection with each
				illustration. This Part will ensure that illustrations do not mislead
				purchasers of individual or group life insurance and as a result life insurance
				illustrations will be more understandable, allowing consumers to make better
				informed decisions about coverage. Insurers will, as far as possible, eliminate
				the use of footnotes and caveats and define terms used in the illustration in
				the language that would be understood by a typical person within the segment of
				the public to which the illustration is directed.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.20 - Applicability and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
This Part applies to all individual and group life insurance
				policies and certificates issued after June 1, 1998, except:
a) Variable life insurance;
b) Individual and group annuity
			 contracts;
c) Credit life
			 insurance; or
d) Life insurance
			 policies and certificates with guaranteed scheduled death benefits of $10,000
			 or less, or illustrated death benefits less than $15,000.