(215 ILCS 5/123C-2) (from Ch. 73, par. 735C-2)
(Section scheduled to be repealed on January 1, 2017)
Sec. 123C-2. Authority of captives; restrictions.
A. Any captive insurance company, when permitted by its articles of association or charter, may apply to the Director for a certificate of authority to transact any and all insurance in classes 2 and 3 of Section 4 of this Code, except that:
(1) no pure captive insurance company may insure any
risks other than those of its parent and affiliated companies;
(2) no association captive insurance company may
insure any risks other than those of the member organizations of its association, and their affiliated companies;
(3) no industrial insured captive insurance company
may insure any risks other than those of the members of the industrial insured group, and their affiliated companies; and
(4) no captive insurance company may provide:
(i) personal motor vehicle coverage or
homeowner's insurance coverage or any component thereof, or
(ii) personal coverage for personal risk
liability, or
(iii) coverage for an employer's liability to its
employees other than legal liability under the federal Employers' Liability Act (45 U.S.C. 51 et seq.), provided, however, this exclusion does not preclude reinsurance of such employer's liability, or
(iv) accident and health insurance as provided in
clause (a) of Class 2 of Section 4, provided, however, this exclusion does not preclude stop-loss insurance or reinsurance of a single employer self-funded employee disability benefit plan or an employee welfare plan as described in 29 U.S.C. 1001 et seq.
B. No captive insurance company shall do any insurance business in this State unless:
(1) it first obtains from the Director a certificate
of authority authorizing it to do such insurance business in this State; and
(2) it appoints a resident registered agent to accept
service of process and to otherwise act on its behalf in this State.
C. No captive insurance company shall adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for, any other existing business name registered in this State.
D. Each captive insurance company, or the organizations providing the principal administrative or management services to such captive insurance company, shall maintain a place of business in this State.
(Source: P.A. 91-357, eff. 7-29-99.)
Sections: Previous 123C-1 123C-2 123C-3 123C-4 123C-5 123C-6 123C-7 123C-8 123C-9 123C-10 123C-11 123C-12 123C-13 123C-14 Next
Last modified: February 18, 2015