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| Public Act 100-0535 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Section 121-2.08 as follows:
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(215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)
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Sec. 121-2.08.
Transactions in this State involving | ||||
contracts of
insurance independently procured directly from an | ||||
unauthorized insurer by industrial insureds. | ||||
(a) As used in this Section: | ||||
"Exempt commercial purchaser" means exempt commercial | ||||
purchaser as the term is defined in subsection (1) of Section | ||||
445 of this Code. | ||||
"Home state" means home state as the term is defined in | ||||
subsection (1) of Section 445 of this Code. | ||||
"Industrial insured" means an insured:
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(i) that procures the insurance of any risk or risks of | ||||
the kinds specified in Classes 2 and 3 of Section 4 of this | ||||
Code by use of the services of a full-time employee who is | ||||
a qualified risk manager or the services of a regularly and
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continuously retained consultant who is a qualified risk | ||||
manager;
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(ii) that procures the insurance directly from an | ||||
unauthorized insurer without the services of an | ||
intermediary insurance producer; and
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(iii) that is an exempt commercial purchaser whose home | ||
state is Illinois.
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"Insurance producer" means insurance producer as the term | ||
is defined in Section 500-10 of this Code. | ||
"Qualified risk manager" means qualified risk manager as | ||
the term is defined in subsection (1) of Section 445 of this | ||
Code. | ||
"Safety-Net Hospital" means an Illinois hospital that | ||
qualifies as a Safety-Net Hospital under Section 5-5e.1 of the | ||
Illinois Public Aid Code. | ||
"Unauthorized insurer" means unauthorized insurer as the | ||
term is defined in subsection (1) of Section 445 of this Code. | ||
(b) For contracts of insurance effective January 1, 2015 or | ||
later, within 90 days after the effective date of each contract | ||
of insurance issued under this Section, the insured shall file | ||
a report with the Director by submitting the report to the | ||
Surplus Line Association of Illinois in writing or in a | ||
computer readable format and provide information as designated | ||
by the Surplus Line Association of Illinois. The information in | ||
the report shall be substantially similar to that required for | ||
surplus line submissions as described in subsection (5) of | ||
Section 445 of this Code. Where applicable, the report shall | ||
satisfy, with respect to the subject insurance, the reporting | ||
requirement of Section 12 of the Fire Investigation Act. | ||
(c) For contracts of insurance effective January 1, 2015 or | ||
later, within 30 days after filing the report, the insured | ||
shall pay to the Director for the use and benefit of the State | ||
a sum equal to the gross premium of the contract of insurance | ||
multiplied by the surplus line tax rate, as described in | ||
paragraph (3) of subsection (a) of Section 445 of this Code, | ||
and shall pay the fire marshal tax that would otherwise be due | ||
annually in March for insurance subject to tax under Section 12 | ||
of the Fire Investigation Act. For contracts of insurance | ||
effective January 1, 2015 or later, within 30 days after filing | ||
the report, the insured shall pay to the Surplus Line | ||
Association of Illinois a countersigning fee that shall be | ||
assessed at the same rate charged to members pursuant to | ||
subsection (4) of Section 445.1 of this Code. | ||
(d) For contracts of insurance effective January 1, 2015 or | ||
later, the insured shall withhold the amount of the taxes and | ||
countersignature fee from the amount of premium charged by and | ||
otherwise payable to the insurer for the insurance. If the | ||
insured fails to withhold the tax and countersignature fee from | ||
the premium, then the insured shall be liable for the amounts | ||
thereof and shall pay the amounts as prescribed in subsection | ||
(c) of this Section. | ||
(e) Contracts of insurance with an industrial insured that | ||
qualifies as a Safety-Net Hospital are not subject to | ||
subsections (b) through (d) of this Section. | ||
(Source: P.A. 98-978, eff. 1-1-15.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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