The Illinois Department of Insurance recently adopted amendments to three parts of the insurance holding company systems regulations (50 Ill. Adm. Code 651, 653, 655).
Changes to Part 651 pertain to acquisitions of Illinois domestic insurance companies. Article VIII ½ of the Illinois Insurance Code (Insurance Holding Company Systems) was amended by Illinois Public Act 98-609 in 2013. The changes to the Illinois statutes were made based on the NAIC Model Law #440 which was passed in December 2010. New Section 651.80 of the regulations adds a severability clause to the rule. The changes to the Form A (Section 651. Illustration A) include new financial statement requirements for the acquiring party, removal of the previously required Notice and Summary Statement and a statement that the new owners will provide enterprise risk management information going forward. Minor edits and additions were also made to other Sections of the rule.
Changes to Part 653 (Pre-Acquisition Notification) are mainly editorial, for updating, clarification and consistency with other Department rules. New Sections 653.15 and 653.30 add definitions and a severability clause to the rule. The Illustration includes changes to update the reference to applicable annual statement pages for Life, Health and Property and Casualty insurers. It also adds standardized Incorporation by Reference procedures that eliminate redundant information filing requirements for the Form CX.
Changes to Part 655 (Prior Notification of Dividends on Common Stock and Other Distributions) are based on updated requirements of the Model Law. Section 655.30 discloses the change in ordinary dividend reporting which follows the changes made to Section 131.16 of the Illinois Insurance Code. Section 655.50 adds a severability clause. Minor editorial changes were also made throughout the rule.
The Amendments are effective June 19, 2017.
Visit our Insurance & Reinsurance Blog for the latest news and developments.Visit the blog
Sign up for our newsletter and get the latest to your inbox.