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Sen. Michael E. Hastings
Filed: 4/19/2021
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1 | | AMENDMENT TO SENATE BILL 1753
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1753 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The Illinois Insurance Code is amended by |
5 | | changing Sections 445 and 445.1 as follows:
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6 | | (215 ILCS 5/445) (from Ch. 73, par. 1057)
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7 | | Sec. 445. Surplus line.
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8 | | (1) Definitions. For the purposes of this Section:
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9 | | "Affiliate" means, with respect to an insured, any entity |
10 | | that controls, is controlled by, or is under common control |
11 | | with the insured. For the purpose of this definition, an |
12 | | entity has control over another entity if: |
13 | | (A) the entity directly or indirectly or acting |
14 | | through one or more other persons owns, controls, or has |
15 | | the power to vote 25% or more of any class of voting |
16 | | securities of the other entity; or |
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1 | | (B) the entity controls in any manner the election of |
2 | | a majority of the directors or trustees of the other |
3 | | entity. |
4 | | "Affiliated group" means any group of entities that are |
5 | | all affiliated. |
6 | | "Authorized insurer" means an insurer that holds a |
7 | | certificate of
authority
issued by the Director but, for the |
8 | | purposes of this Section, does not
include a
domestic surplus |
9 | | line insurer as defined in Section 445a or any
residual market
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10 | | mechanism. |
11 | | "Exempt commercial purchaser" means any person purchasing |
12 | | commercial insurance that, at the time of placement, meets the |
13 | | following requirements: |
14 | | (A) The person employs or retains a qualified risk |
15 | | manager to negotiate insurance coverage. |
16 | | (B) The person has paid aggregate nationwide |
17 | | commercial property and casualty insurance premiums in |
18 | | excess of $100,000 in the immediately preceding 12 months. |
19 | | (C) The person meets at least one of the following |
20 | | criteria: |
21 | | (I) The person possesses a net worth in excess of |
22 | | $20,000,000, as such amount is adjusted pursuant to |
23 | | the provision in this definition concerning percentage |
24 | | change. |
25 | | (II) The person generates annual revenues in |
26 | | excess of $50,000,000, as such amount is adjusted |
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1 | | pursuant to the provision in this definition |
2 | | concerning percentage change. |
3 | | (III) The person employs more than 500 full-time |
4 | | or full-time equivalent employees per individual |
5 | | insured or is a member of an affiliated group |
6 | | employing more than 1,000 employees in the aggregate. |
7 | | (IV) The person is a not-for-profit organization |
8 | | or public entity generating annual budgeted |
9 | | expenditures of at least $30,000,000, as such amount |
10 | | is adjusted pursuant to the provision in this |
11 | | definition concerning percentage change. |
12 | | (V) The person is a municipality with a population |
13 | | in excess of 50,000 persons. |
14 | | Effective on January 1, 2015 and each fifth January 1 |
15 | | occurring thereafter, the amounts in subitems (I), (II), and |
16 | | (IV) of item (C) of this definition shall be adjusted to |
17 | | reflect the percentage change for such 5-year period in the |
18 | | Consumer Price Index for All Urban Consumers published by the |
19 | | Bureau of Labor Statistics of the Department of Labor. |
20 | | "Home state" means the following: |
21 | | (A) With respect to an insured, except as provided in |
22 | | item (B) of this definition: |
23 | | (I) the state in which an insured maintains its |
24 | | principal place of business or, in the case of an |
25 | | individual, the individual's principal residence; or |
26 | | (II) if 100% of the insured risk is located out of |
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1 | | the state referred to in subitem (I), the state to |
2 | | which the greatest percentage of the insured's taxable |
3 | | premium for that insurance contract is allocated. |
4 | | (B) If more than one insured from an affiliated group |
5 | | are named insureds on a single surplus line insurance |
6 | | contract, then "home state" means the home state, as |
7 | | determined pursuant to item (A) of this definition, of the |
8 | | member of the affiliated group that has the largest |
9 | | percentage of premium attributed to it under such |
10 | | insurance contract. |
11 | | If more than one insured from a group that is not |
12 | | affiliated are named insureds on a single surplus line |
13 | | insurance contract, then: |
14 | | (I) if individual group members pay 100% of the |
15 | | premium for the insurance from their own funds, "home |
16 | | state" means the home state, as determined pursuant to |
17 | | item (A) of this definition, of each individual group |
18 | | member; each individual group member's coverage under |
19 | | the surplus line insurance contract shall be treated |
20 | | as a separate surplus line contract for the purposes |
21 | | of this Section; |
22 | | (II) otherwise, "home state" means the home state, |
23 | | as determined pursuant to item (A) of this definition, |
24 | | of the group. |
25 | | Nothing in this definition shall be construed to alter the |
26 | | terms of the surplus line insurance contract. |
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1 | | "Master policy" means a surplus line insurance contract |
2 | | with a single set of general contractual terms that are |
3 | | designed to apply on a group basis to multiple insureds who may |
4 | | or may not be affiliated and who may be added to or removed |
5 | | from the contract throughout the course of the contract |
6 | | period. A master policy may include certain provisions that |
7 | | vary for each insured depending on the insured's |
8 | | characteristics and the coverage sought. |
9 | | "Multi-State risk" means a risk with insured exposures in |
10 | | more than one State. |
11 | | "NAIC" means the National Association of Insurance |
12 | | Commissioners or any successor entity. |
13 | | "Personal lines insurance" means insurance as defined in |
14 | | subsection (a), (b), or (c) of Section 143.13 of this Code. |
15 | | "Premium" means any amount designated as premium on the |
16 | | declarations page or elsewhere in a policy and on any |
17 | | endorsement, but does not include taxes, the Surplus Line |
18 | | Association of Illinois recording fee, or any other fee. |
19 | | "Program business" means a clearly defined group of |
20 | | insurance contracts procured by a licensed surplus line |
21 | | producer from an unauthorized insurer, under a single |
22 | | agreement between the producer and insurer, for insureds with |
23 | | the same or similar characteristics and containing the same or |
24 | | similar contract terms. |
25 | | "Qualified risk manager" means, with respect to a |
26 | | policyholder of commercial insurance, a person who meets all |
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1 | | of the following requirements: |
2 | | (A) The person is an employee of, or third-party |
3 | | consultant retained by, the commercial policyholder. |
4 | | (B) The person provides skilled services in loss |
5 | | prevention, loss reduction, or risk and insurance coverage |
6 | | analysis, and purchase of insurance. |
7 | | (C) With regard to the person: |
8 | | (I) the person has: |
9 | | (a) a bachelor's degree or higher from an |
10 | | accredited college or university in risk |
11 | | management, business administration, finance, |
12 | | economics, or any other field determined by the |
13 | | Director or his designee to demonstrate minimum |
14 | | competence in risk management; and |
15 | | (b) the following: |
16 | | (i) three years of experience in risk |
17 | | financing, claims administration, loss |
18 | | prevention, risk and insurance analysis, or |
19 | | purchasing commercial lines of insurance; or |
20 | | (ii) alternatively has: |
21 | | (AA) a designation as a Chartered |
22 | | Property and Casualty Underwriter (in this |
23 | | subparagraph (ii) referred to as "CPCU") |
24 | | issued by the American Institute for |
25 | | CPCU/Insurance Institute of America; |
26 | | (BB) a designation as an Associate in |
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1 | | Risk Management (ARM) issued by the |
2 | | American Institute for CPCU/Insurance |
3 | | Institute of America; |
4 | | (CC) a designation as Certified Risk |
5 | | Manager (CRM) issued by the National |
6 | | Alliance for Insurance Education & |
7 | | Research; |
8 | | (DD) a designation as a RIMS Fellow |
9 | | (RF) issued by the Global Risk Management |
10 | | Institute; or |
11 | | (EE) any other designation, |
12 | | certification, or license determined by |
13 | | the Director or his designee to |
14 | | demonstrate minimum competency in risk |
15 | | management; |
16 | | (II) the person has: |
17 | | (a) at least 7 years of experience in risk |
18 | | financing, claims administration, loss prevention, |
19 | | risk and insurance coverage analysis, or |
20 | | purchasing commercial lines of insurance; and |
21 | | (b) has any one of the designations specified |
22 | | in subparagraph (ii) of paragraph (b); |
23 | | (III) the person has at least 10 years of |
24 | | experience in risk financing, claims administration, |
25 | | loss prevention, risk and insurance coverage analysis, |
26 | | or purchasing commercial lines of insurance; or |
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1 | | (IV) the person has a graduate degree from an |
2 | | accredited college or university in risk management, |
3 | | business administration, finance, economics, or any |
4 | | other field determined by the Director or his or her |
5 | | designee to demonstrate minimum competence in risk |
6 | | management. |
7 | | "Residual market mechanism" means an association, |
8 | | organization, or other
entity described in Article XXXIII of |
9 | | this Code or Section 7-501 of the
Illinois Vehicle Code or any |
10 | | similar association, organization, or other
entity. |
11 | | "State" means any state of the United States, the District |
12 | | of Columbia, the Commonwealth of Puerto Rico, Guam, the |
13 | | Northern Mariana Islands, the Virgin Islands, and American |
14 | | Samoa. |
15 | | "Surplus line insurance" means insurance on a risk: |
16 | | (A) of the kinds specified in Classes 2 and 3 of |
17 | | Section 4 of this Code; and |
18 | | (B) that is procured from an unauthorized insurer |
19 | | after the insurance producer representing the insured or |
20 | | the surplus line producer is unable, after diligent |
21 | | effort, to procure the insurance from authorized insurers; |
22 | | and |
23 | | (C) where Illinois is the home state of the insured, |
24 | | for policies effective, renewed or extended on July 21, |
25 | | 2011 or later and for multiyear policies upon the policy |
26 | | anniversary that falls on or after July 21, 2011; and |
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1 | | (D) that is located in Illinois, for policies |
2 | | effective prior to July 21, 2011. |
3 | | "Taxable premium" means a premium for any risk that is |
4 | | located in or attributed to any state. |
5 | | "Unauthorized insurer" means an insurer that does not hold |
6 | | a valid
certificate of authority issued by the Director but, |
7 | | for the purposes of this
Section, shall also include a |
8 | | domestic surplus line insurer as defined in
Section 445a.
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9 | | (1.5) Procuring surplus line insurance; surplus line |
10 | | insurer requirements. |
11 | | (a) License required. Insurance producers may procure |
12 | | surplus line insurance only if licensed
as a surplus line |
13 | | producer under this Section. |
14 | | (b) Domestic and foreign insurer eligibility. Licensed |
15 | | surplus line producers may procure surplus line
insurance |
16 | | from an unauthorized insurer domiciled in any state the |
17 | | United States only if the insurer:
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18 | | (i) is permitted in its domiciliary jurisdiction |
19 | | to write the type of insurance involved; and |
20 | |
(ii) has, based upon information available to the |
21 | | surplus
line producer,
a policyholders surplus of not |
22 | | less than $15,000,000
determined in
accordance with |
23 | | the laws of its domiciliary jurisdiction;
and
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24 | |
(iii) has standards of solvency and management |
25 | | that are adequate
for the protection of policyholders.
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26 | |
Where an unauthorized insurer does not meet the
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1 | | standards set forth
in (ii) and (iii) above, a surplus |
2 | | line producer may, if necessary, procure
insurance from |
3 | | that insurer only if prior written warning of
such fact or
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4 | | condition is given to the insured by the insurance |
5 | | producer or surplus line
producer.
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6 | | (c) Alien insurer eligibility. Licensed surplus line |
7 | | producers may procure surplus line insurance from an |
8 | | unauthorized insurer not domiciled in any state outside of |
9 | | the United States only if the insurer meets the standards |
10 | | for unauthorized insurers domiciled in any state the |
11 | | United States in paragraph (b) of this subsection (1.5) or |
12 | | is listed on the Quarterly Listing of Alien Insurers |
13 | | maintained by the International Insurers Department of the |
14 | | NAIC at the time of procurement . The Director shall make |
15 | | the Quarterly Listing of Alien Insurers available to |
16 | | surplus line producers without charge. |
17 | | (d) Prohibited transactions. Insurance producers shall |
18 | | not procure from an
unauthorized insurer an insurance |
19 | | policy: |
20 | | (i) that is designed to satisfy the
proof of |
21 | | financial responsibility and insurance requirements in |
22 | | any
Illinois law where the law requires that the proof |
23 | | of
insurance is issued by an authorized insurer or |
24 | | residual market
mechanism; |
25 | | (ii) that covers the risk of accidental injury to |
26 | | employees arising
out of and in the course of |
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1 | | employment according to the provisions of the
Workers' |
2 | | Compensation Act; or |
3 | | (iii) that insures any Illinois personal lines |
4 | | risk , as defined in
subsection (a), (b), or (c) of |
5 | | Section 143.13 of this Code, that is eligible
for |
6 | | residual market mechanism coverage, unless the insured |
7 | | or prospective
insured requests limits of liability |
8 | | greater than the limits provided by the
residual |
9 | | market mechanism. In the course of making a diligent |
10 | | effort to
procure insurance from authorized insurers, |
11 | | an insurance producer shall not be
required to submit |
12 | | a risk to a residual market mechanism when the risk is |
13 | | not
eligible for coverage or exceeds the limits |
14 | | available in the residual market
mechanism. |
15 | | Where there is an insurance policy issued by an
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16 | | authorized insurer or residual market mechanism
insuring a |
17 | | risk described in item (i), (ii), or (iii)
above, nothing |
18 | | in this paragraph shall be construed
to prohibit a surplus |
19 | | line producer from procuring
from an unauthorized insurer |
20 | | a policy insuring the
risk on an excess or umbrella basis |
21 | | where the excess
or umbrella policy is written over one or |
22 | | more
underlying policies.
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23 | | (e) Exempt commercial purchaser diligent effort. |
24 | | Licensed surplus line producers may procure surplus line |
25 | | insurance from an unauthorized insurer for an exempt |
26 | | commercial purchaser without making the required diligent |
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1 | | effort to procure the insurance from authorized insurers |
2 | | if: |
3 | | (i) the producer has disclosed to the exempt |
4 | | commercial purchaser that such insurance may or may |
5 | | not be available from authorized insurers that may |
6 | | provide greater protection with more regulatory |
7 | | oversight; and |
8 | | (ii) the exempt commercial purchaser has |
9 | | subsequently in writing requested the producer to |
10 | | procure such insurance from an unauthorized insurer. |
11 | | (f) Commercial wholesale transaction diligent effort. |
12 | | A licensed surplus line producer may procure a surplus |
13 | | line insurance contract, other than a personal lines |
14 | | insurance contract, from an unauthorized insurer without |
15 | | making the required diligent effort to procure the |
16 | | insurance from authorized insurers if the risk was |
17 | | referred to the surplus line producer by an |
18 | | Illinois-licensed insurance producer who is not affiliated |
19 | | with the surplus line producer. |
20 | | (g) Master policy diligent effort. For a master policy |
21 | | insurance contract, a licensed surplus line producer may |
22 | | make the required diligent effort to procure the insurance |
23 | | from authorized insurers annually for the master policy |
24 | | rather than individually for each insured that is added |
25 | | during the policy period. The diligent effort shall |
26 | | include all variable provisions of the master policy. |
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1 | | (h) Program business diligent effort. For program |
2 | | business, a licensed surplus line producer may make the |
3 | | required diligent effort to procure the insurance from |
4 | | authorized insurers annually for the program rather than |
5 | | individually for each contract. The diligent effort shall |
6 | | include all variable provisions of the master policy. |
7 | | (2) Surplus line producer; license. Any licensed producer |
8 | | who is a
resident of this State, or any nonresident who |
9 | | qualifies under Section
500-40, may be licensed as a surplus |
10 | | line producer upon payment of an annual license fee of $400.
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11 | | A surplus line producer so licensed shall keep a separate
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12 | | account of
the business transacted thereunder for 7 years from |
13 | | the policy effective date which shall be open at all times to |
14 | | the
inspection of the Director or his representative.
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15 | | No later than July 21, 2012, the State of Illinois shall |
16 | | participate in the national insurance producer database of the |
17 | | NAIC, or any other equivalent uniform national database, for |
18 | | the licensure of surplus line producers and the renewal of |
19 | | such licenses.
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20 | | (3) Taxes and reports.
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21 | | (a) Surplus line tax and penalty for late payment. The |
22 | | surplus line tax rate for a surplus line insurance policy |
23 | | or contract is determined as follows: |
24 | | (i) 3% for policies or contracts with an effective |
25 | | date prior to July 1, 2003; |
26 | | (ii) 3.5% for policies or contracts with an |
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1 | | effective date of July 1, 2003 or later. |
2 | | A surplus line producer shall file with the Director |
3 | | on or
before
February 1 and August 1 of each year a report |
4 | | in the form prescribed by the
Director on all surplus line |
5 | | insurance procured from unauthorized insurers and |
6 | | submitted to the Surplus Line Association of Illinois
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7 | | during the preceding
6 month period ending December 31 or |
8 | | June 30
respectively, and on the filing of such report |
9 | | shall pay to the Director
for the use and benefit of the |
10 | | State a sum equal to the surplus line tax rate multiplied |
11 | | by the
gross taxable
premiums less returned taxable |
12 | | premiums upon all surplus line insurance submitted to the |
13 | | Surplus Line Association of Illinois during the preceding |
14 | | 6 months.
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15 | | Any surplus line producer who fails to pay the full |
16 | | amount due under this
subsection is liable, in addition to |
17 | | the amount due, for such late fee,
penalty, and interest |
18 | | charges as are provided for under Section 412 of
this |
19 | | Code. The Director, through the
Attorney General, may
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20 | | institute an action in the name of the People of the State |
21 | | of Illinois, in
any court of competent jurisdiction, for |
22 | | the recovery of the amount of such
taxes, late fees, |
23 | | interest, and penalties due, and prosecute the same to |
24 | | final judgment, and take
such steps as are necessary to |
25 | | collect the same.
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26 | | (b) Fire Marshal Tax.
Each surplus line producer shall |
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1 | | file with the Director on or before February 1
March 31 of |
2 | | each year a report in the form prescribed by the Director |
3 | | on all
fire insurance procured from unauthorized insurers |
4 | | and submitted to the Surplus Line Association of Illinois |
5 | | during the previous year that is subject to tax under
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6 | | Section 12 of the Fire Investigation
Act
and shall pay to |
7 | | the Director the fire marshal tax required thereunder.
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8 | | (c) Taxes and fees charged to insured. The taxes |
9 | | imposed under this
subsection and the recording |
10 | | countersigning fees charged by the Surplus Line
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11 | | Association of Illinois may be charged to and collected |
12 | | from surplus line
insureds.
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13 | | (4) (Blank).
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14 | | (5) Submission of documents to Surplus Line Association of |
15 | | Illinois.
A surplus line producer shall submit every insurance |
16 | | contract and premium-bearing endorsement
issued
under his or |
17 | | her license to the Surplus Line Association of Illinois for
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18 | | recording and countersignature . The submission and recording |
19 | | countersignature may be
effected through electronic means. The |
20 | | submission shall set
forth:
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21 | | (a) the name of the insured;
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22 | | (b) the description and location of the insured |
23 | | property or
risk;
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24 | | (c) (blank); the amount insured;
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25 | | (d) the gross premiums charged or returned;
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26 | | (e) the name of the unauthorized insurer from whom |
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1 | | coverage has been procured;
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2 | | (f) the kind or kinds of insurance procured; and
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3 | | (g) amount of premium subject to tax required by |
4 | | Section 12 of the Fire
Investigation Act.
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5 | | Proposals, endorsements, and other documents which are
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6 | | incidental to the insurance but which do not affect the |
7 | | premium
charged
are exempted from the submission and recording |
8 | | requirements filing and countersignature .
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9 | | The submission of insuring contracts
to the Surplus Line |
10 | | Association of
Illinois constitutes a certification by the |
11 | | surplus line producer or by the insurance producer who |
12 | | presented the risk to the surplus line producer for
placement |
13 | | as a surplus line risk that
after diligent effort , where |
14 | | required, the required insurance could not be procured from
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15 | | authorized insurers and that
such procurement was otherwise in |
16 | | accordance with the surplus line law.
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17 | | (6) Evidence of recording Countersignature required. It |
18 | | shall be unlawful for an insurance
producer to deliver any |
19 | | unauthorized insurer
contract or premium-bearing endorsement |
20 | | unless it contains evidence of recording such
insurance |
21 | | contract is countersigned by the Surplus Line Association of
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22 | | Illinois.
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23 | | (7) Inspection of records. A surplus line producer shall
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24 | | maintain
separate records of the business transacted under his |
25 | | or her license for 7 years from the policy effective date,
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26 | | including complete copies of surplus line insurance contracts |
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1 | | maintained on
paper or by electronic means, which
records |
2 | | shall be open at all times for inspection by the Director and |
3 | | by
the Surplus Line Association of Illinois.
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4 | | (8) Violations and penalties. The Director may suspend or |
5 | | revoke or
refuse to renew a surplus line producer license for |
6 | | any violation of this Code.
In addition to or in lieu of |
7 | | suspension or revocation, the Director may
subject a surplus |
8 | | line producer
to a civil penalty of up to $2,000 for each cause |
9 | | for suspension
or
revocation. Such penalty is enforceable |
10 | | under subsection (5) of Section
403A of this Code.
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11 | | Whenever it appears to the satisfaction of the Director |
12 | | that a surplus line producer has made a documented good faith |
13 | | determination of the home state for a surplus line insurance |
14 | | contract and has paid the surplus line taxes to a state other |
15 | | than Illinois, and the Director determines that the producer's |
16 | | good faith determination was incorrect and the home state is |
17 | | Illinois, the surplus line producer may, at the discretion of |
18 | | the Director, be required to submit the contract to the |
19 | | Surplus Line Association of Illinois and pay applicable taxes |
20 | | and recording fees, but there shall be no penalty, interest, |
21 | | or late fee assessed. |
22 | | (9) Director may declare insurer ineligible. If the
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23 | | Director determines
that the further assumption of risks might |
24 | | be hazardous to the
policyholders of an unauthorized insurer, |
25 | | the Director may
order the
Surplus Line Association of
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26 | | Illinois not to accept and record countersign insurance |
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1 | | contracts evidencing insurance in
such insurer and order |
2 | | surplus line producers to cease
procuring insurance
from such |
3 | | insurer.
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4 | | (10) Service of process upon Director. Insurance contracts
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5 | | delivered under this Section from unauthorized insurers, other |
6 | | than domestic
surplus line insurers as defined in Section |
7 | | 445a,
shall contain a
provision designating the
Director and |
8 | | his successors in office the true and lawful attorney of the
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9 | | insurer upon whom may be served all lawful process in any
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10 | | action, suit or
proceeding arising out of such insurance.
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11 | | Service of process made upon the Director to be valid |
12 | | hereunder must state
the name of the insured, the name of the |
13 | | unauthorized insurer
and identify
the contract of insurance. |
14 | | The Director at his option is authorized to
forward a copy of |
15 | | the process to the Surplus Line Association of Illinois
for |
16 | | delivery to the unauthorized insurer or the Director may |
17 | | deliver the process to the
unauthorized insurer by other means |
18 | | which he considers to be
reasonably
prompt and certain.
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19 | | (10.5) Required notice to policyholder. Insurance |
20 | | contracts delivered under this Section from unauthorized |
21 | | insurers, other than domestic surplus line insurers as defined |
22 | | in Section 445a, shall have stamped or imprinted on the first |
23 | | page thereof in not less than 12-pt. bold face type the |
24 | | following legend: "Notice to Policyholder: This contract is |
25 | | issued, pursuant to Section 445 of the Illinois Insurance |
26 | | Code, by a company not authorized and licensed to transact |
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1 | | business in Illinois and as such is not covered by the Illinois |
2 | | Insurance Guaranty Fund." Insurance contracts delivered under |
3 | | this Section from domestic surplus line insurers as defined in |
4 | | Section 445a shall have stamped or imprinted on the first page |
5 | | thereof in not less than 12-pt. bold face type the following |
6 | | legend: "Notice to Policyholder: This contract is issued by a |
7 | | domestic surplus line insurer, as defined in Section 445a of |
8 | | the Illinois Insurance Code, pursuant to Section 445, and as |
9 | | such is not covered by the Illinois Insurance Guaranty Fund."
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10 | | (11) Marine, aviation, and transportation. The Illinois |
11 | | Surplus Line law does not apply to insurance of
property and |
12 | | operations of railroads or aircraft engaged in interstate or
|
13 | | foreign commerce, insurance of vessels, crafts or hulls, |
14 | | cargoes, marine
builder's risks, marine protection and |
15 | | indemnity, or other risks including
strikes and war risks |
16 | | insured under ocean or wet marine forms of policies.
|
17 | | (12) Applicability of Illinois Insurance Code. Surplus |
18 | | line insurance procured under this Section, including
|
19 | | insurance procured from a domestic surplus line insurer, is |
20 | | not subject
to the provisions of the Illinois Insurance Code |
21 | | other than Sections 123,
123.1, 401, 401.1, 402, 403, 403A, |
22 | | 408, 412, 445, 445a, 445.1, 445.2, 445.3,
445.4, and all of the |
23 | | provisions of Article XXXI to the extent that the
provisions |
24 | | of Article XXXI are not inconsistent with the terms of this |
25 | | Act.
|
26 | | (Source: P.A. 97-955, eff. 8-14-12; 98-978, eff. 1-1-15 .)
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1 | | (215 ILCS 5/445.1) (from Ch. 73, par. 1057.1)
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2 | | Sec. 445.1. Surplus Line Association of Illinois. There is |
3 | | hereby created a
non-profit association to be known as the |
4 | | Surplus Line Association of
Illinois. All surplus line |
5 | | producers shall be and must remain individual
members of the |
6 | | Association as a condition of their holding a license as a
|
7 | | surplus line producer in this State. The Association must |
8 | | perform its
functions under the plan of operation established |
9 | | and approved under
Section 445.3 and must exercise its powers |
10 | | through a board of directors
established under Section 445.2 |
11 | | of this Code. The Association shall be
supervised by the |
12 | | Director and is subject to the applicable provisions of
the |
13 | | Illinois Insurance Code. The Association shall be authorized |
14 | | and have the
duty to:
|
15 | | (1) receive and , record and countersign all surplus |
16 | | line insurance
contracts that which surplus line producers |
17 | | are required to file with the
Association under subsection |
18 | | (5) of Section 445;
|
19 | | (2) prepare monthly reports for the Director on |
20 | | surplus line insurance
procured by its members during the |
21 | | preceding month in such form and
providing such |
22 | | information as the Director may prescribe;
|
23 | | (3) prepare and deliver to the Director and, at the |
24 | | discretion of the Director, to each licensee the reports
|
25 | | of surplus line business prescribed in subsection (3) of |
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1 | | Section 445;
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2 | | (4) assess its members for costs of operations in |
3 | | accordance with a
schedule adopted by the Board of |
4 | | Directors of the Association and
approved by the Director;
|
5 | | (5) employ and retain such persons as are necessary to |
6 | | carry out the
duties of the Association;
|
7 | | (6) borrow money as necessary to effect the purposes |
8 | | of the Association;
|
9 | | (7) enter contracts as necessary to effect the |
10 | | purposes of the Association;
|
11 | | (8) perform such other acts as will facilitate and |
12 | | encourage compliance
by its members with the surplus line |
13 | | law of this State and rules
promulgated thereunder; and
|
14 | | (9) provide such other services to its members as are |
15 | | incidental or
related to the purposes of the Association. |
16 | | Nothing in this Act shall be
construed as giving the |
17 | | Association any discretionary authority to enforce
this Act or |
18 | | to withhold or decline acceptance and recording |
19 | | countersignature of insurance contracts that which meet
the |
20 | | requirements of subsection (5) of Section 445.
|
21 | | (Source: P.A. 98-978, eff. 1-1-15 .)
|
22 | | Section 99. Effective date. This Act takes effect January |
23 | | 1, 2022.".
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