L&HIllinoishard
Under 215 ILCS 5/Article VIII½ (the Illinois Insurance Holding Company Systems Act), which transaction generally requires prior approval from the Director of the Illinois Department of Insurance?
ARoutine purchase of office supplies by a domestic insurer from an unaffiliated vendor
Any acquisition of control of a domestic insurer, including acquisitions of 10% or more of voting securities, absent a contrary showing
CPayment of an ordinary policyholder claim under a standard life policy
DAn insurer's purchase of state-issued Illinois municipal bonds in the open market
Why this is the answer
215 ILCS 5/Article VIII½ — Illinois's Insurance Holding Company Systems Act — requires any person seeking to acquire control of an Illinois domestic insurer to file a Form A statement with the Director and obtain prior approval. Acquisition of 10% or more of the voting securities of the domestic insurer (or its controlling parent) is presumed to be a change of control absent a contrary showing. The IDOI reviews competence, integrity, financial condition, and competitive effects before approval.
Studying for the Illinois Life & Health exam?
This question comes from our L&H bank. Take a free practice test — no signup.