Illinois - Captive insurance company qualifies as an insurance company

An Illinois Appellate Court found that a captive insurance company qualified as an Illinois insurance company.  The court reasoned that: (1) it engaged primarily in insurance activities, despite ownership of a disregarded royalty company; (2) it was a bona fide insurance company under federal income tax law; (3) no evidence of a sham or lack of valid business purpose; and (4) in the interests of predictability and conformity, it should be treated as an insurance company in Illinois.

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