Illinois General Assembly - Full Text of SB1833
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Full Text of SB1833  100th General Assembly

SB1833ham001 100TH GENERAL ASSEMBLY

Rep. Gregory Harris

Filed: 5/25/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1833

2    AMENDMENT NO. ______. Amend Senate Bill 1833 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Insurance Code is amended by
5changing Section 121-2.08 as follows:
 
6    (215 ILCS 5/121-2.08)  (from Ch. 73, par. 733-2.08)
7    Sec. 121-2.08. Transactions in this State involving
8contracts of insurance independently procured directly from an
9unauthorized insurer by industrial insureds.
10    (a) As used in this Section:
11    "Exempt commercial purchaser" means exempt commercial
12purchaser as the term is defined in subsection (1) of Section
13445 of this Code.
14    "Home state" means home state as the term is defined in
15subsection (1) of Section 445 of this Code.
16    "Industrial insured" means an insured:

 

 

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1        (i) that procures the insurance of any risk or risks of
2    the kinds specified in Classes 2 and 3 of Section 4 of this
3    Code by use of the services of a full-time employee who is
4    a qualified risk manager or the services of a regularly and
5    continuously retained consultant who is a qualified risk
6    manager;
7        (ii) that procures the insurance directly from an
8    unauthorized insurer without the services of an
9    intermediary insurance producer; and
10        (iii) that is an exempt commercial purchaser whose home
11    state is Illinois.
12    "Insurance producer" means insurance producer as the term
13is defined in Section 500-10 of this Code.
14    "Qualified risk manager" means qualified risk manager as
15the term is defined in subsection (1) of Section 445 of this
16Code.
17    "Safety-Net Hospital" means an Illinois hospital that
18qualifies as a Safety-Net Hospital under Section 5-5e.1 of the
19Illinois Public Aid Code.
20    "Unauthorized insurer" means unauthorized insurer as the
21term is defined in subsection (1) of Section 445 of this Code.
22    (b) For contracts of insurance effective January 1, 2015 or
23later, within 90 days after the effective date of each contract
24of insurance issued under this Section, the insured shall file
25a report with the Director by submitting the report to the
26Surplus Line Association of Illinois in writing or in a

 

 

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1computer readable format and provide information as designated
2by the Surplus Line Association of Illinois. The information in
3the report shall be substantially similar to that required for
4surplus line submissions as described in subsection (5) of
5Section 445 of this Code. Where applicable, the report shall
6satisfy, with respect to the subject insurance, the reporting
7requirement of Section 12 of the Fire Investigation Act.
8    (c) For contracts of insurance effective January 1, 2015 or
9later, within 30 days after filing the report, the insured
10shall pay to the Director for the use and benefit of the State
11a sum equal to the gross premium of the contract of insurance
12multiplied by the surplus line tax rate, as described in
13paragraph (3) of subsection (a) of Section 445 of this Code,
14and shall pay the fire marshal tax that would otherwise be due
15annually in March for insurance subject to tax under Section 12
16of the Fire Investigation Act. For contracts of insurance
17effective January 1, 2015 or later, within 30 days after filing
18the report, the insured shall pay to the Surplus Line
19Association of Illinois a countersigning fee that shall be
20assessed at the same rate charged to members pursuant to
21subsection (4) of Section 445.1 of this Code.
22    (d) For contracts of insurance effective January 1, 2015 or
23later, the insured shall withhold the amount of the taxes and
24countersignature fee from the amount of premium charged by and
25otherwise payable to the insurer for the insurance. If the
26insured fails to withhold the tax and countersignature fee from

 

 

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1the premium, then the insured shall be liable for the amounts
2thereof and shall pay the amounts as prescribed in subsection
3(c) of this Section.
4    (e) Contracts of insurance with an industrial insured that
5qualifies as a Safety-Net Hospital are not subject to
6subsections (b) through (d) of this Section.
7(Source: P.A. 98-978, eff. 1-1-15.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".