§ 119

(Section scheduled to be repealed on January 1, 2027) Sec. 119. Revocation and suspension of certificate of authority. (1) The Director may revoke or suspend the certificate of authority of a foreign or alien company or may by order require such insurance company to pay to the people of the State of Illinois a penalty in a sum not exceeding $500, and upon the failure of such insurance company to pay such penalty within 20 days after the mailing of such order, postage prepaid, certified or registered, and addressed to the last known place of business of such insurance company, unless such order is stayed by an order of a court of competent jurisdiction, the Director of Insurance may revoke or suspend the license of such insurance company for any period of time up to, but not exceeding a period of, 2 years whenever he finds that such company (a) is insolvent; (b) fails to comply with the requirements for admission in respect to capital, contingent liability, the investment of its assets or the maintenance of deposits in this or another state or fails to maintain the surplus which similar domestic companies transacting the same kind or kinds of business are required to maintain; (c) is in such a financial condition that its further transaction of business in this State would be hazardous to policyholders and creditors in this State and to the public; (d) has refused or neglected to pay a valid final judgment against such company within 30 days after the rendition of such judgment; (e) has violated any law of this State or has in this State violated its charter or exceeded its corporate powers; (f) has refused to submit its books, papers, accounts, records, or affairs to the reasonable inspection or examination of the Director, his actuaries, deputies or examiners; (g) has an officer who has refused upon reasonable demand to be examined under oath touching its affairs; (h) fails to file its annual statement within 30 days after the date when it is required by law to file such statement; (i) fails to file with the Director a copy of an amendment to its charter or articles of association within 30 days after the effective date of such amendment; (j) fails to file with the Director copies of the agreement and certificate of merger and the financial statements of the merged companies, if required, within 30 days after the effective date of the merger; (k) fails to pay any fees, taxes or charges prescribed by this Code within 30 days after they are due and payable; provided, however, that in case of objection or legal contest the company shall not be required to pay the tax until 30 days after final disposition of the objection or legal contest. (l) fails to file any report or reports for the purpose of enabling the Director to compute the taxes to be paid by such company within 30 days after the date when it is required by law to file such report or reports; (m) has had its corporate existence dissolved or its certificate of authority revoked in the state in which it was organized; or (n) has had all its risks reinsured in their entirety in another company. (2) Except for the grounds stated in clauses (a), (c) or (k) of subsection (1) of this section the Director shall not revoke or suspend the certificate of authority of a foreign or alien company until he has given the company at least twenty days' notice of the revocation or suspension and of the grounds therefor and has afforded the company an opportunity for a hearing.

Legislative History

(Source: P.A. 83-598 .)