§ 244.1

Illinois § 244.1

• Jurisdiction: Illinois
• Topic: REGULATION
• Ch. 215: INSURANCE
• Act 215 ILCS 5/: Illinois Insurance Code.
• Art.: Article XIV - Legal Reserve Life Insurance

Text

Whenever the financial condition of any company transacting the kinds of business authorized in Class 1 of Section 4, when reviewed in conjunction with the kinds and nature of risks insured, the loss experience and ownership of the company and the ratio of annual premium volume to the incurred acquisition expenses, indicates a condition such that the continued operation of the company might be hazardous to its policyholders, creditors or the general public, then the Director may, after notice and hearing, order the company to take such action as may be reasonably necessary to rectify the existing condition, including but not necessarily limited to one or more of the following steps: (a) to reduce the loss exposure by reinsurance; (b) to reduce the volume of new business being accepted; (c) to reduce general or acquisition expenses by specified methods; (d) to suspend the writing of new business for a period not to exceed 3 months; or (e) to increase the company's surplus by a contribution to surplus.

Legislative History

(Source: P.A. 77-1514 .)