SB 1753

Abstract

Amends the Illinois Insurance Code. Adds provisions concerning making diligent efforts to procure surplus line insurance contracts through authorized insurers, including for master policy insurance contracts and program business. Makes changes to provisions concerning reports on surplus line insurance and fire insurance that must be filed by licensed surplus line producers with the Director of Insurance. Changes the date by which a surplus line producer shall file a report on all fire insurance procured from unauthorized insurers and submitted to the Surplus Line Association of Illinois to February 1 (rather than March 31) of each year. Adds provisions concerning submission and recording of premium-bearing endorsements. Provides that an individual officer or partner must be a licensed surplus line producer to represent a member of the Surplus Line Association of Illinois in the exercise of association affairs. Makes other changes. Defines terms. Effective January 1, 2022. Senate Committee Amendment No. 1 Adds reference to: 215 ILCS 5/412 from Ch. 73, par. 1024 Replaces everything after the enacting clause with the provisions of the introduced bill with the following changes. Removes language allowing surplus line producers to be part of a firm membership of the Surplus Line Association of Illinois as a condition of their holding licenses as surplus line producers. Removes changes to provisions allowing members employed by the same or affiliated employers to delegate an individual officer or partner to represent the member in the exercise of Association affairs. Further amends the Illinois Insurance Code. In provisions concerning refunds, penalties, and collection, provides that whenever it appears to the satisfaction of the Director of Insurance that the circumstances of a late filing warrant a reduction or waiver of specified fees or penalties, the fees or penalties may be reduced or waived at the discretion of the Director. Effective immediately. Senate Floor Amendment No. 2 Deletes reference to: 215 ILCS 5/445.2 215 ILCS 5/445.3 Replaces everything after the enacting clause with the provisions of the introduced bill with the following changes. In provisions concerning surplus line insurance, provides that diligent efforts to procure surplus line insurance contracts from authorized insurers shall include all variable provisions of the master policy. Provides that whenever it appears to the satisfaction of the Director that a surplus line producer has made a documented good faith determination of the home state (rather than when a surplus line producer has made a documented good faith determination of the home state) for a surplus line insurance contract and has paid the surplus line taxes to a state other than Illinois, and the Director determines (rather than if the Director determines) that the producer's good faith determination was incorrect and the home state is Illinois, the surplus line producer may, at the discretion of the Director, be required to submit the contract to the Surplus Line Association of Illinois and pay applicable taxes and recording fees, but there shall be no penalty, interest, or late fee assessed. Removes language that provides that if no insurance was procured from unauthorized insurers and submitted to the Surplus Line Association of Illinois, no report concerning surplus line insurance procured from unauthorized insurers shall be required. Removes language that provides that if no fire insurance subject to a fire marshal tax was procured from unauthorized insurers and submitted to the Surplus Line Association of Illinois, no report concerning fire insurance procured from unauthorized insurers shall be required. Removes changes to provisions concerning the Board of Directors of the Association and the Plan of Operation of the Association. Makes other changes. Effective January 1, 2022.