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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||||||||||||||||||||||||||
5 | changing Sections 445 and 445a 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 entity | ||||||||||||||||||||||||||||||
12 | has control over another entity if: | ||||||||||||||||||||||||||||||
13 | (A) the entity directly or indirectly or acting through | ||||||||||||||||||||||||||||||
14 | one or more other persons owns, controls, or has the power | ||||||||||||||||||||||||||||||
15 | to vote 25% or more of any class of voting securities of | ||||||||||||||||||||||||||||||
16 | the other entity; or | ||||||||||||||||||||||||||||||
17 | (B) the entity controls in any manner the election of a | ||||||||||||||||||||||||||||||
18 | majority of the directors or trustees of the other entity. | ||||||||||||||||||||||||||||||
19 | "Affiliated group" means any group of entities that are all | ||||||||||||||||||||||||||||||
20 | affiliated. | ||||||||||||||||||||||||||||||
21 | "Authorized insurer" means an insurer that holds a | ||||||||||||||||||||||||||||||
22 | certificate of
authority
issued by the Director but, for the | ||||||||||||||||||||||||||||||
23 | purposes of this Section, does not
include a
domestic surplus |
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| |||||||
1 | line insurer as defined in Section 445a or any
residual market
| ||||||
2 | mechanism. | ||||||
3 | "Exempt commercial purchaser" means any person purchasing | ||||||
4 | commercial insurance that, at the time of placement, meets the | ||||||
5 | following requirements: | ||||||
6 | (A) The person employs or retains a qualified risk | ||||||
7 | manager to negotiate insurance coverage. | ||||||
8 | (B) The person has paid aggregate nationwide | ||||||
9 | commercial property and casualty insurance premiums in | ||||||
10 | excess of $100,000 in the immediately preceding 12 months. | ||||||
11 | (C) The person meets at least one of the following | ||||||
12 | criteria: | ||||||
13 | (I) The person possesses a net worth in excess of | ||||||
14 | $20,000,000, as such amount is adjusted pursuant to the | ||||||
15 | provision in this definition concerning percentage | ||||||
16 | change. | ||||||
17 | (II) The person generates annual revenues in | ||||||
18 | excess of $50,000,000, as such amount is adjusted | ||||||
19 | pursuant to the provision in this definition | ||||||
20 | concerning percentage change. | ||||||
21 | (III) The person employs more than 500 full-time or | ||||||
22 | full-time equivalent employees per individual insured | ||||||
23 | or is a member of an affiliated group employing more | ||||||
24 | than 1,000 employees in the aggregate. | ||||||
25 | (IV) The person is a not-for-profit organization | ||||||
26 | or public entity generating annual budgeted |
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| |||||||
1 | expenditures of at least $30,000,000, as such amount is | ||||||
2 | adjusted pursuant to the provision in this definition | ||||||
3 | concerning percentage change. | ||||||
4 | (V) The person is a municipality with a population | ||||||
5 | in excess of 50,000 persons. | ||||||
6 | Effective on January 1, 2015 and each fifth January 1 | ||||||
7 | occurring thereafter, the amounts in subitems (I), (II), and | ||||||
8 | (IV) of item (C) of this definition shall be adjusted to | ||||||
9 | reflect the percentage change for such 5-year period in the | ||||||
10 | Consumer Price Index for All Urban Consumers published by the | ||||||
11 | Bureau of Labor Statistics of the Department of Labor. | ||||||
12 | "Home state" means the following: | ||||||
13 | (A) With respect to an insured, except as provided in | ||||||
14 | item (B) of this definition: | ||||||
15 | (I) the state in which an insured maintains its | ||||||
16 | principal place of business or, in the case of an | ||||||
17 | individual, the individual's principal residence; or | ||||||
18 | (II) if 100% of the insured risk is located out of | ||||||
19 | the state referred to in subitem (I), the state to | ||||||
20 | which the greatest percentage of the insured's taxable | ||||||
21 | premium for that insurance contract is allocated. | ||||||
22 | (B) If more than one insured from an affiliated group | ||||||
23 | are named insureds on a single surplus line insurance | ||||||
24 | contract, then "home state" means the home state, as | ||||||
25 | determined pursuant to item (A) of this definition, of the | ||||||
26 | member of the affiliated group that has the largest |
| |||||||
| |||||||
1 | percentage of premium attributed to it under such insurance | ||||||
2 | contract. | ||||||
3 | If more than one insured from a group that is not | ||||||
4 | affiliated are named insureds on a single surplus line | ||||||
5 | insurance contract, then: | ||||||
6 | (I) if individual group members pay 100% of the | ||||||
7 | premium for the insurance from their own funds, "home | ||||||
8 | state" means the home state, as determined pursuant to | ||||||
9 | item (A) of this definition, of each individual group | ||||||
10 | member; each individual group member's coverage under | ||||||
11 | the surplus line insurance contract shall be treated as | ||||||
12 | a separate surplus line contract for the purposes of | ||||||
13 | this Section; | ||||||
14 | (II) otherwise, "home state" means the home state, | ||||||
15 | as determined pursuant to item (A) of this definition, | ||||||
16 | of the group. | ||||||
17 | Nothing in this definition shall be construed to alter the | ||||||
18 | terms of the surplus line insurance contract. | ||||||
19 | "Multi-State risk" means a risk with insured exposures in | ||||||
20 | more than one State. | ||||||
21 | "NAIC" means the National Association of Insurance | ||||||
22 | Commissioners or any successor entity. | ||||||
23 | "Qualified risk manager" means, with respect to a | ||||||
24 | policyholder of commercial insurance, a person who meets all of | ||||||
25 | the following requirements: | ||||||
26 | (A) The person is an employee of, or third-party |
| |||||||
| |||||||
1 | consultant retained by, the commercial policyholder. | ||||||
2 | (B) The person provides skilled services in loss | ||||||
3 | prevention, loss reduction, or risk and insurance coverage | ||||||
4 | analysis, and purchase of insurance. | ||||||
5 | (C) With regard to the person: | ||||||
6 | (I) the person has: | ||||||
7 | (a) a bachelor's degree or higher from an | ||||||
8 | accredited college or university in risk | ||||||
9 | management, business administration, finance, | ||||||
10 | economics, or any other field determined by the | ||||||
11 | Director or his designee to demonstrate minimum | ||||||
12 | competence in risk management; and | ||||||
13 | (b) the following: | ||||||
14 | (i) three years of experience in risk | ||||||
15 | financing, claims administration, loss | ||||||
16 | prevention, risk and insurance analysis, or | ||||||
17 | purchasing commercial lines of insurance; or | ||||||
18 | (ii) alternatively has: | ||||||
19 | (AA) a designation as a Chartered | ||||||
20 | Property and Casualty Underwriter (in this | ||||||
21 | subparagraph (ii) referred to as "CPCU") | ||||||
22 | issued by the American Institute for | ||||||
23 | CPCU/Insurance Institute of America; | ||||||
24 | (BB) a designation as an Associate in | ||||||
25 | Risk Management (ARM) issued by the | ||||||
26 | American Institute for CPCU/Insurance |
| |||||||
| |||||||
1 | Institute of America; | ||||||
2 | (CC) a designation as Certified Risk | ||||||
3 | Manager (CRM) issued by the National | ||||||
4 | Alliance for Insurance Education & | ||||||
5 | Research; | ||||||
6 | (DD) a designation as a RIMS Fellow | ||||||
7 | (RF) issued by the Global Risk Management | ||||||
8 | Institute; or | ||||||
9 | (EE) any other designation, | ||||||
10 | certification, or license determined by | ||||||
11 | the Director or his designee to | ||||||
12 | demonstrate minimum competency in risk | ||||||
13 | management; | ||||||
14 | (II) the person has: | ||||||
15 | (a) at least 7 years of experience in risk | ||||||
16 | financing, claims administration, loss prevention, | ||||||
17 | risk and insurance coverage analysis, or | ||||||
18 | purchasing commercial lines of insurance; and | ||||||
19 | (b) has any one of the designations specified | ||||||
20 | in subparagraph (ii) of paragraph (b); | ||||||
21 | (III) the person has at least 10 years of | ||||||
22 | experience in risk financing, claims administration, | ||||||
23 | loss prevention, risk and insurance coverage analysis, | ||||||
24 | or purchasing commercial lines of insurance; or | ||||||
25 | (IV) the person has a graduate degree from an | ||||||
26 | accredited college or university in risk management, |
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| |||||||
1 | business administration, finance, economics, or any | ||||||
2 | other field determined by the Director or his or her | ||||||
3 | designee to demonstrate minimum competence in risk | ||||||
4 | management. | ||||||
5 | "Residual market mechanism" means an association, | ||||||
6 | organization, or other
entity described in Article XXXIII of | ||||||
7 | this Code or Section 7-501 of the
Illinois Vehicle Code or any | ||||||
8 | similar association, organization, or other
entity. | ||||||
9 | "State" means any state of the United States, the District | ||||||
10 | of Columbia, the Commonwealth of Puerto Rico, Guam, the | ||||||
11 | Northern Mariana Islands, the Virgin Islands, and American | ||||||
12 | Samoa. | ||||||
13 | "Surplus line insurance" means insurance on a risk: | ||||||
14 | (A) of the kinds specified in Classes 2 and 3 of | ||||||
15 | Section 4 of this Code; and | ||||||
16 | (B) that is procured from an unauthorized insurer after | ||||||
17 | the insurance producer representing the insured or the | ||||||
18 | surplus line producer is unable, after diligent effort, to | ||||||
19 | procure the insurance from authorized insurers; and | ||||||
20 | (C) where Illinois is the home state of the insured, | ||||||
21 | for policies effective, renewed or extended on July 21, | ||||||
22 | 2011 or later and for multiyear policies upon the policy | ||||||
23 | anniversary that falls on or after July 21, 2011; and | ||||||
24 | (D) that is located in Illinois, for policies effective | ||||||
25 | prior to July 21, 2011. | ||||||
26 | "Unauthorized insurer" means an insurer that does not hold |
| |||||||
| |||||||
1 | a valid
certificate of authority issued by the Director but, | ||||||
2 | for the purposes of this
Section, shall also include a domestic | ||||||
3 | surplus line insurer as defined in
Section 445a.
| ||||||
4 | (1.5) Procuring surplus line insurance; surplus line | ||||||
5 | insurer requirements. | ||||||
6 | (a) Insurance producers may procure surplus line | ||||||
7 | insurance only if licensed
as a surplus line producer under | ||||||
8 | this Section. | ||||||
9 | (b) Licensed surplus line producers may procure | ||||||
10 | surplus line
insurance from an unauthorized insurer | ||||||
11 | domiciled in the United States only if the insurer:
| ||||||
12 | (i) is permitted in its domiciliary jurisdiction | ||||||
13 | to write the type of insurance involved; and | ||||||
14 |
(ii) has, based upon information available to the | ||||||
15 | surplus
line producer,
a policyholders surplus of not | ||||||
16 | less than $15,000,000
determined in
accordance with | ||||||
17 | the laws of its domiciliary jurisdiction;
and
| ||||||
18 |
(iii) has standards of solvency and management | ||||||
19 | that are adequate
for the protection of policyholders.
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20 |
Where an unauthorized insurer does not meet the
| ||||||
21 | standards set forth
in (ii) and (iii) above, a surplus line | ||||||
22 | producer may, if necessary, procure
insurance from that | ||||||
23 | insurer only if prior written warning of
such fact or
| ||||||
24 | condition is given to the insured by the insurance producer | ||||||
25 | or surplus line
producer.
| ||||||
26 | (c) Licensed surplus line producers may procure |
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| |||||||
1 | surplus line insurance from an unauthorized insurer | ||||||
2 | domiciled outside of the United States only if the insurer | ||||||
3 | meets the standards for unauthorized insurers domiciled in | ||||||
4 | the United States in paragraph (b) of this subsection (1.5) | ||||||
5 | or is listed on the Quarterly Listing of Alien Insurers | ||||||
6 | maintained by the International Insurers Department of the | ||||||
7 | NAIC. The Director shall make the Quarterly Listing of | ||||||
8 | Alien Insurers available to surplus line producers without | ||||||
9 | charge. | ||||||
10 | (d) Insurance producers shall not procure from an
| ||||||
11 | unauthorized insurer an insurance policy: | ||||||
12 | (i) that is designed to satisfy the
proof of | ||||||
13 | financial responsibility and insurance requirements in | ||||||
14 | any
Illinois law where the law requires that the proof | ||||||
15 | of
insurance is issued by an authorized insurer or | ||||||
16 | residual market
mechanism; | ||||||
17 | (ii) that covers the risk of accidental injury to | ||||||
18 | employees arising
out of and in the course of | ||||||
19 | employment according to the provisions of the
Workers' | ||||||
20 | Compensation Act; or | ||||||
21 | (iii) that insures any Illinois personal lines | ||||||
22 | risk, as defined in
subsection (a), (b), or (c) of | ||||||
23 | Section 143.13 of this Code, that is eligible
for | ||||||
24 | residual market mechanism coverage, unless the insured | ||||||
25 | or prospective
insured requests limits of liability | ||||||
26 | greater than the limits provided by the
residual market |
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| |||||||
1 | mechanism. In the course of making a diligent effort to
| ||||||
2 | procure insurance from authorized insurers, an | ||||||
3 | insurance producer shall not be
required to submit a | ||||||
4 | risk to a residual market mechanism when the risk is | ||||||
5 | not
eligible for coverage or exceeds the limits | ||||||
6 | available in the residual market
mechanism ; or . | ||||||
7 | (iv) that insures the risk of legal fees, costs, or | ||||||
8 | expenses related to an investigation, indictment, or | ||||||
9 | prosecution of any criminal charge arising out of the | ||||||
10 | use of a firearm. | ||||||
11 | Where there is an insurance policy issued by an
| ||||||
12 | authorized insurer or residual market mechanism
insuring a | ||||||
13 | risk described in item (i), (ii), or (iii) , or (iv) of this | ||||||
14 | subsection
above , nothing in this paragraph shall be | ||||||
15 | construed
to prohibit a surplus line producer from | ||||||
16 | procuring
from an unauthorized insurer a policy insuring | ||||||
17 | the
risk on an excess or umbrella basis where the excess
or | ||||||
18 | umbrella policy is written over one or more
underlying | ||||||
19 | policies.
| ||||||
20 | (e) Licensed surplus line producers may procure | ||||||
21 | surplus line insurance from an unauthorized insurer for an | ||||||
22 | exempt commercial purchaser without making the required | ||||||
23 | diligent effort to procure the insurance from authorized | ||||||
24 | insurers if: | ||||||
25 | (i) the producer has disclosed to the exempt | ||||||
26 | commercial purchaser that such insurance may or may not |
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1 | be available from authorized insurers that may provide | ||||||
2 | greater protection with more regulatory oversight; and | ||||||
3 | (ii) the exempt commercial purchaser has | ||||||
4 | subsequently in writing requested the producer to | ||||||
5 | procure such insurance from an unauthorized insurer. | ||||||
6 | (2) Surplus line producer; license. Any licensed producer | ||||||
7 | who is a
resident of this State, or any nonresident who | ||||||
8 | qualifies under Section
500-40, may be licensed as a surplus | ||||||
9 | line producer upon payment of an annual license fee of $400.
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10 | A surplus line producer so licensed shall keep a separate
| ||||||
11 | account of
the business transacted thereunder for 7 years from | ||||||
12 | the policy effective date which shall be open at all times to | ||||||
13 | the
inspection of the Director or his representative.
| ||||||
14 | No later than July 21, 2012, the State of Illinois shall | ||||||
15 | participate in the national insurance producer database of the | ||||||
16 | NAIC, or any other equivalent uniform national database, for | ||||||
17 | the licensure of surplus line producers and the renewal of such | ||||||
18 | licenses.
| ||||||
19 | (3) Taxes and reports.
| ||||||
20 | (a) Surplus line tax and penalty for late payment. The | ||||||
21 | surplus line tax rate for a surplus line insurance policy | ||||||
22 | or contract is determined as follows: | ||||||
23 | (i) 3% for policies or contracts with an effective | ||||||
24 | date prior to July 1, 2003; | ||||||
25 | (ii) 3.5% for policies or contracts with an | ||||||
26 | effective date of July 1, 2003 or later. |
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1 | A surplus line producer shall file with the Director on | ||||||
2 | or
before
February 1 and August 1 of each year a report in | ||||||
3 | the form prescribed by the
Director on all surplus line | ||||||
4 | insurance procured from unauthorized insurers and | ||||||
5 | submitted to the Surplus Line Association of Illinois
| ||||||
6 | during the preceding
6 month period ending December 31 or | ||||||
7 | June 30
respectively, and on the filing of such report | ||||||
8 | shall pay to the Director
for the use and benefit of the | ||||||
9 | State a sum equal to the surplus line tax rate multiplied | ||||||
10 | by the
gross
premiums less returned premiums upon all | ||||||
11 | surplus line insurance submitted to the Surplus Line | ||||||
12 | Association of Illinois during the preceding 6 months.
| ||||||
13 | Any surplus line producer who fails to pay the full | ||||||
14 | amount due under this
subsection is liable, in addition to | ||||||
15 | the amount due, for such late fee,
penalty, and interest | ||||||
16 | charges as are provided for under Section 412 of
this Code. | ||||||
17 | The Director, through the
Attorney General, may
institute | ||||||
18 | an action in the name of the People of the State of | ||||||
19 | Illinois, in
any court of competent jurisdiction, for the | ||||||
20 | recovery of the amount of such
taxes, late fees, interest, | ||||||
21 | and penalties due, and prosecute the same to final | ||||||
22 | judgment, and take
such steps as are necessary to collect | ||||||
23 | the same.
| ||||||
24 | (b) Fire Marshal Tax.
Each surplus line producer shall | ||||||
25 | file with the Director on or before
March 31 of each year a | ||||||
26 | report in the form prescribed by the Director on all
fire |
| |||||||
| |||||||
1 | insurance procured from unauthorized insurers and | ||||||
2 | submitted to the Surplus Line Association of Illinois | ||||||
3 | subject to tax under
Section 12 of the Fire Investigation
| ||||||
4 | Act
and shall pay to the Director the fire marshal tax | ||||||
5 | required thereunder.
| ||||||
6 | (c) Taxes and fees charged to insured. The taxes | ||||||
7 | imposed under this
subsection and the countersigning fees | ||||||
8 | charged by the Surplus Line
Association of Illinois may be | ||||||
9 | charged to and collected from surplus line
insureds.
| ||||||
10 | (4) (Blank).
| ||||||
11 | (5) Submission of documents to Surplus Line Association of | ||||||
12 | Illinois.
A surplus line producer shall submit every insurance | ||||||
13 | contract
issued
under his or her license to the Surplus Line | ||||||
14 | Association of Illinois for
recording and countersignature. | ||||||
15 | The submission and countersignature may be
effected through | ||||||
16 | electronic means. The submission shall set
forth:
| ||||||
17 | (a) the name of the insured;
| ||||||
18 | (b) the description and location of the insured | ||||||
19 | property or
risk;
| ||||||
20 | (c) the amount insured;
| ||||||
21 | (d) the gross premiums charged or returned;
| ||||||
22 | (e) the name of the unauthorized insurer from whom | ||||||
23 | coverage has been procured;
| ||||||
24 | (f) the kind or kinds of insurance procured; and
| ||||||
25 | (g) amount of premium subject to tax required by | ||||||
26 | Section 12 of the Fire
Investigation Act.
|
| |||||||
| |||||||
1 | Proposals, endorsements, and other documents which are
| ||||||
2 | incidental to the insurance but which do not affect the premium
| ||||||
3 | charged
are exempted from filing and countersignature.
| ||||||
4 | The submission of insuring contracts
to the Surplus Line | ||||||
5 | Association of
Illinois constitutes a certification by the | ||||||
6 | surplus line producer or by the
insurance producer who | ||||||
7 | presented the risk to the surplus line producer for
placement | ||||||
8 | as a surplus line risk that
after diligent effort the required | ||||||
9 | insurance could not be procured from
authorized insurers and | ||||||
10 | that
such procurement was otherwise in accordance with the | ||||||
11 | surplus line law.
| ||||||
12 | (6) Countersignature required. It shall be unlawful for an | ||||||
13 | insurance
producer to deliver any unauthorized insurer
| ||||||
14 | contract unless such
insurance contract is countersigned by the | ||||||
15 | Surplus Line Association of
Illinois.
| ||||||
16 | (7) Inspection of records. A surplus line producer shall
| ||||||
17 | maintain
separate records of the business transacted under his | ||||||
18 | or her license for 7 years from the policy effective date,
| ||||||
19 | including complete copies of surplus line insurance contracts | ||||||
20 | maintained on
paper or by electronic means, which
records shall | ||||||
21 | be open at all times for inspection by the Director and by
the | ||||||
22 | Surplus Line Association of Illinois.
| ||||||
23 | (8) Violations and penalties. The Director may suspend or | ||||||
24 | revoke or
refuse to renew a surplus line producer license for | ||||||
25 | any violation of this Code.
In addition to or in lieu of | ||||||
26 | suspension or revocation, the Director may
subject a surplus |
| |||||||
| |||||||
1 | line producer
to a civil penalty of up to $2,000 for each cause | ||||||
2 | for suspension
or
revocation. Such penalty is enforceable under | ||||||
3 | subsection (5) of Section
403A of this Code.
| ||||||
4 | (9) Director may declare insurer ineligible. If the
| ||||||
5 | Director determines
that the further assumption of risks might | ||||||
6 | be hazardous to the
policyholders of an unauthorized insurer, | ||||||
7 | the Director may
order the
Surplus Line Association of
Illinois | ||||||
8 | not to countersign insurance contracts evidencing insurance in
| ||||||
9 | such insurer and order surplus line producers to cease
| ||||||
10 | procuring insurance
from such insurer.
| ||||||
11 | (10) Service of process upon Director. Insurance contracts
| ||||||
12 | delivered under this Section from unauthorized insurers, other | ||||||
13 | than domestic
surplus line insurers as defined in Section 445a,
| ||||||
14 | shall contain a
provision designating the
Director and his | ||||||
15 | successors in office the true and lawful attorney of the
| ||||||
16 | insurer upon whom may be served all lawful process in any
| ||||||
17 | action, suit or
proceeding arising out of such insurance.
| ||||||
18 | Service of process made upon the Director to be valid hereunder | ||||||
19 | must state
the name of the insured, the name of the | ||||||
20 | unauthorized insurer
and identify
the contract of insurance. | ||||||
21 | The Director at his option is authorized to
forward a copy of | ||||||
22 | the process to the Surplus Line Association of Illinois
for | ||||||
23 | delivery to the unauthorized insurer or the Director may | ||||||
24 | deliver the process to the
unauthorized insurer by other means | ||||||
25 | which he considers to be
reasonably
prompt and certain.
| ||||||
26 | (10.5) Insurance contracts delivered under this Section |
| |||||||
| |||||||
1 | from unauthorized insurers, other than domestic surplus line | ||||||
2 | insurers as defined in Section 445a, shall have stamped or | ||||||
3 | imprinted on the first page thereof in not less than 12-pt. | ||||||
4 | bold face type the following legend: "Notice to Policyholder: | ||||||
5 | This contract is issued, pursuant to Section 445 of the | ||||||
6 | Illinois Insurance Code, by a company not authorized and | ||||||
7 | licensed to transact business in Illinois and as such is not | ||||||
8 | covered by the Illinois Insurance Guaranty Fund." Insurance | ||||||
9 | contracts delivered under this Section from domestic surplus | ||||||
10 | line insurers as defined in Section 445a shall have stamped or | ||||||
11 | imprinted on the first page thereof in not less than 12-pt. | ||||||
12 | bold face type the following legend: "Notice to Policyholder: | ||||||
13 | This contract is issued by a domestic surplus line insurer, as | ||||||
14 | defined in Section 445a of the Illinois Insurance Code, | ||||||
15 | pursuant to Section 445, and as such is not covered by the | ||||||
16 | Illinois Insurance Guaranty Fund."
| ||||||
17 | (11) The Illinois Surplus Line law does not apply to | ||||||
18 | insurance of
property and operations of railroads or aircraft | ||||||
19 | engaged in interstate or
foreign commerce, insurance of | ||||||
20 | vessels, crafts or hulls, cargoes, marine
builder's risks, | ||||||
21 | marine protection and indemnity, or other risks including
| ||||||
22 | strikes and war risks insured under ocean or wet marine forms | ||||||
23 | of policies.
| ||||||
24 | (12) Surplus line insurance procured under this Section, | ||||||
25 | including
insurance procured from a domestic surplus line | ||||||
26 | insurer, is not subject
to the provisions of the Illinois |
| |||||||
| |||||||
1 | Insurance Code other than Sections 123,
123.1, 401, 401.1, 402, | ||||||
2 | 403, 403A, 408, 412, 445, 445.1, 445.2, 445.3,
445.4, and all | ||||||
3 | of the provisions of Article XXXI to the extent that the
| ||||||
4 | provisions of Article XXXI are not inconsistent with the terms | ||||||
5 | of this Act.
| ||||||
6 | (Source: P.A. 97-955, eff. 8-14-12; 98-978, eff. 1-1-15 .)
| ||||||
7 | (215 ILCS 5/445a)
| ||||||
8 | Sec. 445a. Domestic surplus line insurer.
| ||||||
9 | (a) A domestic insurer possessing
policyholder surplus of | ||||||
10 | at least $15,000,000 may pursuant to a resolution by
its board | ||||||
11 | of directors, and with the written approval of the Director, be
| ||||||
12 | designated as a "domestic surplus line insurer".
| ||||||
13 | (b) A domestic surplus line insurer may insure in this | ||||||
14 | State an
Illinois risk only if procured from a surplus line | ||||||
15 | producer pursuant to Section 445 of
this Code.
| ||||||
16 | (c) A domestic surplus line insurer must agree not to issue | ||||||
17 | a policy
designed to satisfy the financial responsibility | ||||||
18 | requirements of the Illinois
Vehicle Code, the Workers' | ||||||
19 | Compensation Act, or the Workers' Occupational
Diseases Act. A | ||||||
20 | domestic surplus line insurer is not subject to the provisions
| ||||||
21 | of Articles XXXIII, XXXIII 1/2, XXXIV, XXXVIIIA, Section 468, | ||||||
22 | or Section
478.1 of this Code.
| ||||||
23 | (c-1) A domestic surplus line insurer may not insure the | ||||||
24 | risk of legal fees, costs, or expenses related to the | ||||||
25 | investigation, indictment, or prosecution of any criminal |
| |||||||
| |||||||
1 | charge arising out of the use of a firearm. | ||||||
2 | (d) For the purposes of the federal Nonadmitted and | ||||||
3 | Reinsurance Reform Act of 2010 (15 USC 8201 et seq.), a | ||||||
4 | domestic surplus line insurer shall be considered a nonadmitted | ||||||
5 | insurer, as the term is defined in the Act, with respect to | ||||||
6 | risks insured in this State. | ||||||
7 | (Source: P.A. 97-955, eff. 8-14-12.)
| ||||||
8 | Section 10. The Firearm Owners Identification Card Act is | ||||||
9 | amended by changing Sections 4 and 8 as follows:
| ||||||
10 | (430 ILCS 65/4) (from Ch. 38, par. 83-4)
| ||||||
11 | Sec. 4. Application for Firearm Owner's Identification | ||||||
12 | Cards. | ||||||
13 | (a) Each applicant for a Firearm Owner's Identification | ||||||
14 | Card must:
| ||||||
15 | (1) Make application on blank forms prepared and | ||||||
16 | furnished at convenient
locations throughout the State by | ||||||
17 | the Department of State Police, or by
electronic means, if | ||||||
18 | and when made available by the Department of State
Police; | ||||||
19 | and
| ||||||
20 | (2) Submit evidence to the Department of State Police | ||||||
21 | that:
| ||||||
22 | (i) This subparagraph (i) applies through the | ||||||
23 | 180th day following the effective date of this | ||||||
24 | amendatory Act of the 101st General Assembly. He or she |
| |||||||
| |||||||
1 | is 21 years of age or over, or if he or she is under 21
| ||||||
2 | years of age that he or she has the written consent of | ||||||
3 | his or her parent or
legal guardian to possess and | ||||||
4 | acquire firearms and firearm ammunition and that
he or | ||||||
5 | she has never been convicted of a misdemeanor other | ||||||
6 | than a traffic
offense or adjudged
delinquent, | ||||||
7 | provided, however, that such parent or legal guardian | ||||||
8 | is not an
individual prohibited from having a Firearm | ||||||
9 | Owner's Identification Card and
files an affidavit | ||||||
10 | with the Department as prescribed by the Department
| ||||||
11 | stating that he or she is not an individual prohibited | ||||||
12 | from having a Card; | ||||||
13 | (i-5) This subparagraph (i-5) applies on and after | ||||||
14 | the 181st day following the effective date of this | ||||||
15 | amendatory Act of the 101st General Assembly. He or she | ||||||
16 | is 21 years of age or over, or if he or she is under 21
| ||||||
17 | years of age that he or she has never been convicted of | ||||||
18 | a misdemeanor other than a traffic offense or adjudged | ||||||
19 | delinquent and is an active duty member of the United | ||||||
20 | States Armed Forces or has the written consent of his | ||||||
21 | or her parent or
legal guardian to possess and acquire | ||||||
22 | firearms and firearm ammunition, provided, however, | ||||||
23 | that such parent or legal guardian is not an
individual | ||||||
24 | prohibited from having a Firearm Owner's | ||||||
25 | Identification Card and
files an affidavit with the | ||||||
26 | Department as prescribed by the Department
stating |
| |||||||
| |||||||
1 | that he or she is not an individual prohibited from | ||||||
2 | having a Card or the active duty member of the United | ||||||
3 | States Armed Forces under 21 years of age annually | ||||||
4 | submits proof to the Department of State Police, in a | ||||||
5 | manner prescribed by the Department;
| ||||||
6 | (ii) He or she has not been convicted of a felony | ||||||
7 | under the laws of
this or any other jurisdiction;
| ||||||
8 | (iii) He or she is not addicted to narcotics;
| ||||||
9 | (iv) He or she has not been a patient in a mental | ||||||
10 | health facility within
the past 5 years or, if he or | ||||||
11 | she has been a patient in a mental health facility more | ||||||
12 | than 5 years ago submit the certification required | ||||||
13 | under subsection (u) of Section 8 of this Act;
| ||||||
14 | (v) He or she is not a person with an intellectual | ||||||
15 | disability;
| ||||||
16 | (vi) He or she is not an alien who is unlawfully | ||||||
17 | present in the
United States under the laws of the | ||||||
18 | United States;
| ||||||
19 | (vii) He or she is not subject to an existing order | ||||||
20 | of protection
prohibiting him or her from possessing a | ||||||
21 | firearm;
| ||||||
22 | (viii) He or she has not been convicted within the | ||||||
23 | past 5 years of
battery, assault, aggravated assault, | ||||||
24 | violation of an order of
protection, or a substantially | ||||||
25 | similar offense in another jurisdiction, in
which a | ||||||
26 | firearm was used or possessed;
|
| |||||||
| |||||||
1 | (ix) He or she has not been convicted of domestic | ||||||
2 | battery, aggravated domestic battery, or a
| ||||||
3 | substantially similar offense in another
jurisdiction | ||||||
4 | committed before, on or after January 1, 2012 (the | ||||||
5 | effective date of Public Act 97-158). If the applicant | ||||||
6 | knowingly and intelligently waives the right to have an | ||||||
7 | offense described in this clause (ix) tried by a jury, | ||||||
8 | and by guilty plea or otherwise, results in a | ||||||
9 | conviction for an offense in which a domestic | ||||||
10 | relationship is not a required element of the offense | ||||||
11 | but in which a determination of the applicability of 18 | ||||||
12 | U.S.C. 922(g)(9) is made under Section 112A-11.1 of the | ||||||
13 | Code of Criminal Procedure of 1963, an entry by the | ||||||
14 | court of a judgment of conviction for that offense | ||||||
15 | shall be grounds for denying the issuance of a Firearm | ||||||
16 | Owner's Identification Card under this Section;
| ||||||
17 | (x) (Blank);
| ||||||
18 | (xi) He or she is not an alien who has been | ||||||
19 | admitted to the United
States under a non-immigrant | ||||||
20 | visa (as that term is defined in Section
101(a)(26) of | ||||||
21 | the Immigration and Nationality Act (8 U.S.C. | ||||||
22 | 1101(a)(26))),
or that he or she is an alien who has | ||||||
23 | been lawfully admitted to the United
States under a | ||||||
24 | non-immigrant visa if that alien is:
| ||||||
25 | (1) admitted to the United States for lawful | ||||||
26 | hunting or sporting
purposes;
|
| |||||||
| |||||||
1 | (2) an official representative of a foreign | ||||||
2 | government who is:
| ||||||
3 | (A) accredited to the United States | ||||||
4 | Government or the Government's
mission to an | ||||||
5 | international organization having its | ||||||
6 | headquarters in the United
States; or
| ||||||
7 | (B) en route to or from another country to | ||||||
8 | which that alien is
accredited;
| ||||||
9 | (3) an official of a foreign government or | ||||||
10 | distinguished foreign
visitor who has been so | ||||||
11 | designated by the Department of State;
| ||||||
12 | (4) a foreign law enforcement officer of a | ||||||
13 | friendly foreign
government entering the United | ||||||
14 | States on official business; or
| ||||||
15 | (5) one who has received a waiver from the | ||||||
16 | Attorney General of the
United States pursuant to | ||||||
17 | 18 U.S.C. 922(y)(3);
| ||||||
18 | (xii) He or she is not a minor subject to a | ||||||
19 | petition filed
under Section 5-520 of the Juvenile | ||||||
20 | Court Act of 1987 alleging that the
minor is a | ||||||
21 | delinquent minor for the commission of an offense that | ||||||
22 | if
committed by an adult would be a felony;
| ||||||
23 | (xiii) He or she is not an adult who had been | ||||||
24 | adjudicated a delinquent
minor under the Juvenile | ||||||
25 | Court Act of 1987 for the commission of an offense
that | ||||||
26 | if committed by an adult would be a felony;
|
| |||||||
| |||||||
1 | (xiv) He or she is a resident of the State of | ||||||
2 | Illinois; | ||||||
3 | (xv) He or she has not been adjudicated as a person | ||||||
4 | with a mental disability; | ||||||
5 | (xvi) He or she has not been involuntarily admitted | ||||||
6 | into a mental health facility; and | ||||||
7 | (xvii) He or she is not a person with a | ||||||
8 | developmental disability; and | ||||||
9 | (xviii) He or she has proof of liability insurance | ||||||
10 | coverage of at least $1,000,000 for accidental | ||||||
11 | injuries caused by a firearm; and | ||||||
12 | (3) Upon request by the Department of State Police, | ||||||
13 | sign a release on a
form prescribed by the Department of | ||||||
14 | State Police waiving any right to
confidentiality and | ||||||
15 | requesting the disclosure to the Department of State Police
| ||||||
16 | of limited mental health institution admission information | ||||||
17 | from another state,
the District of Columbia, any other | ||||||
18 | territory of the United States, or a
foreign nation | ||||||
19 | concerning the applicant for the sole purpose of | ||||||
20 | determining
whether the applicant is or was a patient in a | ||||||
21 | mental health institution and
disqualified because of that | ||||||
22 | status from receiving a Firearm Owner's
Identification | ||||||
23 | Card. No mental health care or treatment records may be
| ||||||
24 | requested. The information received shall be destroyed | ||||||
25 | within one year of
receipt.
| ||||||
26 | (a-5) Each applicant for a Firearm Owner's Identification |
| |||||||
| |||||||
1 | Card who is over
the age of 18 shall furnish to the Department | ||||||
2 | of State Police either his or
her Illinois driver's license | ||||||
3 | number or Illinois Identification Card number, except as
| ||||||
4 | provided in subsection (a-10).
| ||||||
5 | (a-10) Each applicant for a Firearm Owner's Identification | ||||||
6 | Card,
who is employed as a law enforcement officer, an armed | ||||||
7 | security officer in Illinois, or by the United States Military
| ||||||
8 | permanently assigned in Illinois and who is not an Illinois | ||||||
9 | resident, shall furnish to
the Department of State Police his | ||||||
10 | or her driver's license number or state
identification card | ||||||
11 | number from his or her state of residence. The Department
of | ||||||
12 | State Police may adopt rules to enforce the provisions of this
| ||||||
13 | subsection (a-10).
| ||||||
14 | (a-15) If an applicant applying for a Firearm Owner's | ||||||
15 | Identification Card moves from the residence address named in | ||||||
16 | the application, he or she shall immediately notify in a form | ||||||
17 | and manner prescribed by the Department of State Police of that | ||||||
18 | change of address. | ||||||
19 | (a-20) Each applicant for a Firearm Owner's Identification | ||||||
20 | Card shall furnish to the Department of State Police his or her | ||||||
21 | photograph. An applicant who is 21 years of age or older | ||||||
22 | seeking a religious exemption to the photograph requirement | ||||||
23 | must furnish with the application an approved copy of United | ||||||
24 | States Department of the Treasury Internal Revenue Service Form | ||||||
25 | 4029. In lieu of a photograph, an applicant regardless of age | ||||||
26 | seeking a religious exemption to the photograph requirement |
| |||||||
| |||||||
1 | shall submit fingerprints on a form and manner prescribed by | ||||||
2 | the Department with his or her application. | ||||||
3 | (b) Each application form shall include the following | ||||||
4 | statement printed in
bold type: "Warning: Entering false | ||||||
5 | information on an application for a Firearm
Owner's | ||||||
6 | Identification Card is punishable as a Class 2 felony in | ||||||
7 | accordance
with subsection (d-5) of Section 14 of the Firearm | ||||||
8 | Owners Identification Card
Act.".
| ||||||
9 | (c) Upon such written consent, pursuant to Section 4, | ||||||
10 | paragraph (a)(2)(i),
the parent or legal guardian giving the | ||||||
11 | consent shall be liable for any
damages resulting from the | ||||||
12 | applicant's use of firearms or firearm ammunition.
| ||||||
13 | (Source: P.A. 101-80, eff. 7-12-19.)
| ||||||
14 | (430 ILCS 65/8) (from Ch. 38, par. 83-8)
| ||||||
15 | Sec. 8. Grounds for denial , suspension, and revocation. The | ||||||
16 | Department of State Police has authority to deny an
application | ||||||
17 | for or to revoke and seize a Firearm Owner's Identification
| ||||||
18 | Card previously issued under this Act only if the Department | ||||||
19 | finds that the
applicant or the person to whom such card was | ||||||
20 | issued is or was at the time
of issuance:
| ||||||
21 | (a) A person under 21 years of age who has been | ||||||
22 | convicted of a
misdemeanor other than a traffic offense or | ||||||
23 | adjudged delinquent;
| ||||||
24 | (b) This subsection (b) applies through the 180th day | ||||||
25 | following the effective date of this amendatory Act of the |
| |||||||
| |||||||
1 | 101st General Assembly. A person under 21 years of age who | ||||||
2 | does not have the written consent
of his parent or guardian | ||||||
3 | to acquire and possess firearms and firearm
ammunition, or | ||||||
4 | whose parent or guardian has revoked such written consent,
| ||||||
5 | or where such parent or guardian does not qualify to have a | ||||||
6 | Firearm Owner's
Identification Card; | ||||||
7 | (b-5) This subsection (b-5) applies on and after the | ||||||
8 | 181st day following the effective date of this amendatory | ||||||
9 | Act of the 101st General Assembly. A person under 21 years | ||||||
10 | of age who is not an active duty member of the United | ||||||
11 | States Armed Forces and does not have the written consent
| ||||||
12 | of his or her parent or guardian to acquire and possess | ||||||
13 | firearms and firearm
ammunition, or whose parent or | ||||||
14 | guardian has revoked such written consent,
or where such | ||||||
15 | parent or guardian does not qualify to have a Firearm | ||||||
16 | Owner's
Identification Card;
| ||||||
17 | (c) A person convicted of a felony under the laws of | ||||||
18 | this or any other
jurisdiction;
| ||||||
19 | (d) A person addicted to narcotics;
| ||||||
20 | (e) A person who has been a patient of a mental health | ||||||
21 | facility within the
past 5 years or a person who has been a | ||||||
22 | patient in a mental health facility more than 5 years ago | ||||||
23 | who has not received the certification required under | ||||||
24 | subsection (u) of this Section. An active law enforcement | ||||||
25 | officer employed by a unit of government who is denied, | ||||||
26 | revoked, or has his or her Firearm Owner's Identification |
| |||||||
| |||||||
1 | Card seized under this subsection (e) may obtain relief as | ||||||
2 | described in subsection (c-5) of Section 10 of this Act if | ||||||
3 | the officer did not act in a manner threatening to the | ||||||
4 | officer, another person, or the public as determined by the | ||||||
5 | treating clinical psychologist or physician, and the | ||||||
6 | officer seeks mental health treatment;
| ||||||
7 | (f) A person whose mental condition is of such a nature | ||||||
8 | that it poses
a clear and present danger to the applicant, | ||||||
9 | any other person or persons or
the community;
| ||||||
10 | (g) A person who has an intellectual disability;
| ||||||
11 | (h) A person who intentionally makes a false statement | ||||||
12 | in the Firearm
Owner's Identification Card application;
| ||||||
13 | (i) An alien who is unlawfully present in
the United | ||||||
14 | States under the laws of the United States;
| ||||||
15 | (i-5) An alien who has been admitted to the United | ||||||
16 | States under a
non-immigrant visa (as that term is defined | ||||||
17 | in Section 101(a)(26) of the
Immigration and Nationality | ||||||
18 | Act (8 U.S.C. 1101(a)(26))), except that this
subsection | ||||||
19 | (i-5) does not apply to any alien who has been lawfully | ||||||
20 | admitted to
the United States under a non-immigrant visa if | ||||||
21 | that alien is:
| ||||||
22 | (1) admitted to the United States for lawful | ||||||
23 | hunting or sporting purposes;
| ||||||
24 | (2) an official representative of a foreign | ||||||
25 | government who is:
| ||||||
26 | (A) accredited to the United States Government |
| |||||||
| |||||||
1 | or the Government's
mission to an international | ||||||
2 | organization having its headquarters in the United
| ||||||
3 | States; or
| ||||||
4 | (B) en route to or from another country to | ||||||
5 | which that alien is
accredited;
| ||||||
6 | (3) an official of a foreign government or | ||||||
7 | distinguished foreign visitor
who has been so | ||||||
8 | designated by the Department of State;
| ||||||
9 | (4) a foreign law enforcement officer of a friendly | ||||||
10 | foreign government
entering the United States on | ||||||
11 | official business; or
| ||||||
12 | (5) one who has received a waiver from the Attorney | ||||||
13 | General of the United
States pursuant to 18 U.S.C. | ||||||
14 | 922(y)(3);
| ||||||
15 | (j) (Blank);
| ||||||
16 | (k) A person who has been convicted within the past 5 | ||||||
17 | years of battery,
assault, aggravated assault, violation | ||||||
18 | of an order of protection, or a
substantially similar | ||||||
19 | offense in another jurisdiction, in which a firearm was
| ||||||
20 | used or possessed;
| ||||||
21 | (l) A person who has been convicted of domestic | ||||||
22 | battery, aggravated domestic battery, or a substantially
| ||||||
23 | similar offense in another jurisdiction committed before, | ||||||
24 | on or after January 1, 2012 (the effective date of Public | ||||||
25 | Act 97-158). If the applicant or person who has been | ||||||
26 | previously issued a Firearm Owner's Identification Card |
| |||||||
| |||||||
1 | under this Act knowingly and intelligently waives the right | ||||||
2 | to have an offense described in this paragraph (l) tried by | ||||||
3 | a jury, and by guilty plea or otherwise, results in a | ||||||
4 | conviction for an offense in which a domestic relationship | ||||||
5 | is not a required element of the offense but in which a | ||||||
6 | determination of the applicability of 18 U.S.C. 922(g)(9) | ||||||
7 | is made under Section 112A-11.1 of the Code of Criminal | ||||||
8 | Procedure of 1963, an entry by the court of a judgment of | ||||||
9 | conviction for that offense shall be grounds for denying an | ||||||
10 | application for and for revoking and seizing a Firearm | ||||||
11 | Owner's Identification Card previously issued to the | ||||||
12 | person under this Act;
| ||||||
13 | (m) (Blank);
| ||||||
14 | (n) A person who is prohibited from acquiring or | ||||||
15 | possessing
firearms or firearm ammunition by any Illinois | ||||||
16 | State statute or by federal
law;
| ||||||
17 | (o) A minor subject to a petition filed under Section | ||||||
18 | 5-520 of the
Juvenile Court Act of 1987 alleging that the | ||||||
19 | minor is a delinquent minor for
the commission of an | ||||||
20 | offense that if committed by an adult would be a felony;
| ||||||
21 | (p) An adult who had been adjudicated a delinquent | ||||||
22 | minor under the Juvenile
Court Act of 1987 for the | ||||||
23 | commission of an offense that if committed by an
adult | ||||||
24 | would be a felony;
| ||||||
25 | (q) A person who is not a resident of the State of | ||||||
26 | Illinois, except as provided in subsection (a-10) of |
| |||||||
| |||||||
1 | Section 4; | ||||||
2 | (r) A person who has been adjudicated as a person with | ||||||
3 | a mental disability; | ||||||
4 | (s) A person who has been found to have a developmental | ||||||
5 | disability; | ||||||
6 | (t) A person involuntarily admitted into a mental | ||||||
7 | health facility; or | ||||||
8 | (u) A person who has had his or her Firearm Owner's | ||||||
9 | Identification Card revoked or denied under subsection (e) | ||||||
10 | of this Section or item (iv) of paragraph (2) of subsection | ||||||
11 | (a) of Section 4 of this Act because he or she was a | ||||||
12 | patient in a mental health facility as provided in | ||||||
13 | subsection (e) of this Section, shall not be permitted to | ||||||
14 | obtain a Firearm Owner's Identification Card, after the | ||||||
15 | 5-year period has lapsed, unless he or she has received a | ||||||
16 | mental health evaluation by a physician, clinical | ||||||
17 | psychologist, or qualified examiner as those terms are | ||||||
18 | defined in the Mental Health and Developmental | ||||||
19 | Disabilities Code, and has received a certification that he | ||||||
20 | or she is not a clear and present danger to himself, | ||||||
21 | herself, or others. The physician, clinical psychologist, | ||||||
22 | or qualified examiner making the certification and his or | ||||||
23 | her employer shall not be held criminally, civilly, or | ||||||
24 | professionally liable for making or not making the | ||||||
25 | certification required under this subsection, except for | ||||||
26 | willful or wanton misconduct. This subsection does not |
| |||||||
| |||||||
1 | apply to a person whose firearm possession rights have been | ||||||
2 | restored through administrative or judicial action under | ||||||
3 | Section 10 or 11 of this Act ; or . | ||||||
4 | (v) A person who has not submitted to the Illinois State | ||||||
5 | Police proof of liability insurance coverage of at least | ||||||
6 | $1,000,000 for accidental injuries caused by a firearm. | ||||||
7 | The Illinois State Police may require annual proof of the | ||||||
8 | person's liability insurance coverage and may suspend a | ||||||
9 | person's Firearm Owner's Identification Card for failure to | ||||||
10 | maintain that coverage or for failure to provide the Illinois | ||||||
11 | State Police with proof of that coverage. The proof of | ||||||
12 | liability insurance coverage required under subparagraph | ||||||
13 | (xviii) of paragraph (2) of subsection (a) of Section 4 is | ||||||
14 | required for both an initial application for a Firearm Owner's | ||||||
15 | Identification Card and for renewal of that Card. | ||||||
16 | Upon revocation of a person's Firearm Owner's | ||||||
17 | Identification Card, the Department of State Police shall | ||||||
18 | provide notice to the person and the person shall comply with | ||||||
19 | Section 9.5 of this Act. | ||||||
20 | (Source: P.A. 101-80, eff. 7-12-19.)
|