# 50 Ill. Adm. Code 205.70: Section 205.70 Reinsurance

> Illinois · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_70

## Section

- **Citation:** 50 Ill. Adm. Code 205.70
- **Heading:** Section 205.70 Reinsurance
- **Jurisdiction:** Illinois
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Illinois Administrative Code / Title 50 INSURANCE / CHAPTER I: DEPARTMENT OF INSURANCE / Part 205 MUNICIPAL BOND INSURANCE / Section 205.70 Reinsurance

## Text

Section 205
Section 205.70  Reinsurance
a)         An insurer qualified to write municipal bond insurance may, by
contract, reinsure any such insurance it transacts, provided that credit in
accounting and financial statements for reinsurance ceded shall be allowed only
if the reinsurer is either:
1)         An insurer, authorized in Illinois to write the kinds of
business defined in Class 2(g) and 2(h) of Section 4 of the Illinois Insurance
Code (Ill. Rev. Stat. 1985, ch. 73, par. 616), which has policyholders' surplus
of not less than twenty-five million dollars ($25,000,000), or
2)         An insurer that meets the surplus requirements of subsection
205.70(a)(1) hereof, but is not licensed in Illinois; however, such credit
shall be allowed only to the extent and under the conditions specified in
Section 173.1(2) of the Illinois Insurance Code (Ill Rev. Stat. 1985, ch. 73,
par. 785.1(2)).  The security requirements of such sections shall also cover
any contingency reserve established by such reinsurer.
b)         The contingency reserve required by subsection 205.40(b) shall
not be reduced by reason of any risk ceded unless the risk is ceded to a
reinsurer described in subsection (a)(1) or (2) hereof and provided such
reinsurer establishes the reserves required in subsections 205.40(b) and 205.60
with respect to the ceded portion of the risk.
c)
1)         A municipal bond insurer may not reinsure such insurance with
affiliated companies unless the limitations of Section 205.50 are measured
against the consolidated policyholders' surplus of such affiliated insurers.
2)         Subsection 205.70(a) hereof does not diminish the
applicability of Section 173.1 of the Illinois Insurance Code (Ill Rev. Stat.
1985, ch. 73, par. 785.1).

## Nearby sections

- [50 Ill. Adm. Code 205.10 Section 205.10  Authority](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_10.md)
- [50 Ill. Adm. Code 205.20 Section 205.20  Purpose](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_20.md)
- [50 Ill. Adm. Code 205.30 Section 205.30  Definitions](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_30.md)
- [50 Ill. Adm. Code 205.40 Section 205.40  Requirements](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_40.md)
- [50 Ill. Adm. Code 205.50 Section 205.50  Limitations and Restrictions](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_50.md)
- [50 Ill. Adm. Code 205.60 Section 205.60  Financial Statements](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_60.md)
- [50 Ill. Adm. Code 205.70 Section 205.70  Reinsurance](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_70.md)
- [50 Ill. Adm. Code 205.80 Section 205.80  Collateral Security](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_80.md)
- [50 Ill. Adm. Code 205.90 Section 205.90  Applicability of Other Laws](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_90.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_70. Check the current official text before relying on it. Not legal advice.