Illinois § 174

§ 174.

Kinds of agreements requiring approval. (1) The following kinds of reinsurance agreements shall not be entered into by any domestic company unless such agreements are approved in writing by the Director: (a) Agreements of reinsurance of any such company transacting the kind or kinds of business enumerated in Class 1 of Section 4, or as a Fraternal Benefit Society under Article XVII, a Mutual Benefit Association under Article XVIII, a Burial Society under Article XIX or an Assessment Accident and Assessment Accident and Health Company under Article XXI, cedes previously issued and outstanding risks to any company, or cedes any risks to a company not authorized to transact business in this State, or assumes any outstanding risks on which the aggregate reserves and claim liabilities exceed 20% of the aggregate reserves and claim liabilities of the assuming company, as reported in the preceding annual statement, for the business of either life or accident and health insurance. (b) Any agreement or agreements of reinsurance whereby any company transacting the kind or kinds of business enumerated in either Class 2 or Class 3 of Section 4 cedes to any company or companies at one time, or during a period of six consecutive months more than 20% of the total amount of its net unearned premium reserve liability. The Director has the right to request additional filing review and approval of all contracts that contribute to the statutory threshold trigger. As used in this Section, "net unearned premium reserve liability" means a liability associated with existing or in-force business that is not ceded to any reinsurer before the effective date of the proposed reinsurance contract. (c) (Blank). (2) Requests for approval shall be filed at least 30 working days prior to the stated effective date of the agreement. An agreement which is not disapproved by the Director within 30 working days after its complete submission shall be deemed approved. (Source: P.A. 104-334, eff. 10-14-25.)