Illinois Administrative Code › Title 50 - INSURANCE › Part 654 - PRIOR NOTIFICATION OF TRANSACTIONS › Section 654.30 - Prior Notification of Transactions - Required Information

Current through Register Vol. 48, No. 28, July 12, 2024
a) Any domestic
			 company required, pursuant to Section
			 131.20 a(1) of the
			 Code, to notify the Director of a transaction between it and any person in its
			 holding company system shall notify the Director of the transaction in writing
			 at least 30 days prior to entering into the transaction. The notice shall be
			 deemed incomplete unless it includes all the information required by this
			 Part.
b) The Director shall, within
			 the 30 day period, disapprove the transactions if the standards contained in
			 Section
			 131.20 of the Code
			 have not been met.
c) Transactions
			 Subject to Prior Notice - Notice Filing
1) An
			 insurer required to give notice of a proposed transaction pursuant to Section
			 131.20a(1) of the Code shall furnish the required information on Form
			 D-1.
2) Agreements for cost sharing
			 services and management services shall, at a minimum and as applicable:
A) Identify the person providing services and
			 the nature of those services;
B)
			 Set forth the methods to allocate costs;
C) Require timely settlement, not less
			 frequently than on a quarterly basis, and compliance with the 2018 edition of
			 the NAIC Accounting Practices and Procedures Manual (available at
https://www.naic.org/prod_serv_alpha_listing.htm
; this incorporation by
			 reference does not include any subsequent editions or amendments);
D) Prohibit advancement of funds by the
			 insurer to the affiliate except to pay for services defined in the
			 agreement;
E) State that the
			 insurer will maintain oversight for functions provided to the insurer by the
			 affiliate and that the insurer will monitor services annually for quality
			 assurance;
F) Define books and
			 records of the insurer to include all books and records developed or maintained
			 under or related to the agreement;
G) Specify that all books and records of the
			 insurer are and remain the property of the insurer, are subject to control of
			 the insurer, and will be made available to the Director;
H) State that all funds and invested assets
			 of the insurer are the exclusive property of the insurer, are held for the
			 benefit of the insurer, and are subject to the control of the
			 insurer;
I) Include standards for
			 termination of the agreement, with and without cause;
J) Include provisions for indemnification of
			 the insurer in the event of gross negligence or willful misconduct on the part
			 of the affiliate providing the services;
K) Specify that, if the insurer is placed in
			 receivership or seized by the Director under Article XIII of the Code:
i) all of the rights of the insurer under the
			 agreement extend to the receiver or Director; and
ii) all books and records will immediately be
			 made available to the receiver or the Director, and shall be turned over to the
			 receiver or Director immediately upon the receiver's or the Director's
			 request;
L) Specify that
			 the affiliate has no automatic right to terminate the agreement if the insurer
			 is placed in receivership pursuant to Article XIII of the Code; and
M) Specify that the affiliate will continue
			 to maintain any systems, programs, or other infrastructure notwithstanding a
			 seizure pursuant to Article XIII of the Code, and will make them available to
			 the receiver for as long as the affiliate continues to receive timely payment
			 for services rendered.