The Illinois Department of Insurance has been working with businesses in the state to rewrite the captive insurance article of the Illinois Insurance Code.
Introduced by senator John Mulroe on 9 February, the amendments to the captive insurance article of the Illinois Insurance Code propose changes to provisions concerning definitions and prohibit captive insurance companies from issuing certain types of insurance.
Proposed changes include setting the minimum capital requirements at $250,000 for pure captives, $500,000 for industrial insured and $750,000 for association captives.
Under the amendments, captives would able to use multiple forms of capital and surplus, including US currency, letters of credit, Illinois state bonds and US bonds.
In addition, the amendments make changes to the reports a captive must submit, and allow the annual report to be filed at a fiscal year end, rather than on, or prior to, 1 March. They also propose allowing captive reinsurance pools in Illinois.
