Public Act 097-0955
 
HB1577 EnrolledLRB097 09798 RPM 49945 b


  
    AN ACT concerning health.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Illinois Insurance Code is amended  by 
changing Sections 35A-15, 445, and 445a as follows:
 



    (215 ILCS 5/35A-15)



    Sec. 35A-15. Company action level event. 

    (a) A company action level event means any of the following 
events:


        (1) The filing of an RBC Report by an insurer that 
    indicates that:


            (A) the insurer's total adjusted capital is 
        greater than or equal to its
regulatory action level 
        RBC, but less than its company action level RBC; or


            (B) the The insurer, if a life, health, or life and 
        health insurer, has
total adjusted capital that is 
        greater than or equal
to its company action level RBC, 
        but less than the product of its authorized
control 
        level RBC and 2.5 and has a negative trend; or .

            (C) the insurer, if a property and casualty 
        insurer, has total adjusted capital that is greater 
        than or equal
to its company action level RBC, but less 
        than the product of its authorized
control level RBC 
        and 3.0 and triggers the trend test determined in 
        accordance with the trend test calculation included in 
        the property and casualty RBC Instructions. 

        (2) The notification by the Director to the insurer of 
    an Adjusted RBC
Report that indicates an event described in

    paragraph (1),
provided the insurer does not challenge the 
    Adjusted RBC Report under Section
35A-35.


        (3) The notification by the Director to the insurer 
    that the Director has,
after a hearing, rejected the 
    insurer's challenge under Section 35A-35 to an
Adjusted RBC 
    Report that indicates the event described in paragraph (1).

    (b) In the event of a company action level event, the 
insurer shall prepare
and submit to the Director an RBC Plan 
that does
all of the following:


        (1) Identifies the conditions that contribute to the

    company action level event.


        (2) Contains proposed corrective actions that the 
    insurer intends to
take and that are expected to result in 
    the elimination of the company action
level event.
A health 
    organization is not prohibited from
proposing recognition 
    of a parental guarantee or a letter of credit to
eliminate 
    the company action level event; however the Director shall, 
    at his
discretion, determine whether or the extent to which 
    the proposed parental
guarantee or letter of credit is an 
    acceptable part of a satisfactory RBC Plan
or Revised RBC 
    Plan. 


        (3) Provides projections of the insurer's financial 
    results in the current
year and at least the 4 succeeding 
    years, both in the absence of proposed
corrective actions 
    and giving effect to the proposed corrective actions,

    including projections of statutory operating income, net 
    income, capital, and
surplus.  The projections for both new 
    and renewal business may include
separate projections for 
    each major line of business and separately identify
each 
    significant income, expense, and benefit component.


        (4) Identifies the key assumptions affecting the 
    insurer's projections
and the sensitivity of the 
    projections to the assumptions.


        (5) Identifies the quality of, and problems associated 
    with, the insurer's
business including, but not limited to, 
    its assets, anticipated business growth
and associated 
    surplus strain, extraordinary exposure to risk, mix of 
    business,
and use of reinsurance, if any, in each case.

    (c) The insurer shall submit the RBC Plan to the Director  
within 45 days
after the company action
level event occurs or 
within 45 days after the Director notifies the insurer
that the 
Director has, after a hearing, rejected its
 challenge under 
Section 35A-35 to an
Adjusted RBC Report.

    (d) Within 60 days after an insurer submits an RBC Plan to 
the
Director, the Director shall notify the insurer whether the 
RBC Plan shall be
implemented or is, in the judgment of the 
Director, unsatisfactory.  If the
Director determines the RBC 
Plan is unsatisfactory,
the notification to the insurer shall 
set forth the reasons for the
determination
and may set forth 
proposed revisions that will render the RBC Plan satisfactory

in the judgment of the Director.  Upon notification from the 
Director, the
insurer shall prepare a Revised RBC Plan, which 
may incorporate by reference
any revisions proposed by the 
Director.  The insurer shall submit the Revised
RBC Plan to the 
Director within 45 days after the Director notifies the insurer

that the RBC Plan is unsatisfactory or within 45 days after the 
Director
notifies the insurer that the Director has, after a 
hearing, rejected its
challenge under Section 35A-35 to the 
determination that the RBC Plan is
unsatisfactory.

    (e) In the event the Director notifies an insurer that its

RBC Plan or Revised RBC Plan is unsatisfactory, the Director 
may, at
the Director's discretion and subject to the insurer's 
right to a hearing under
Section 35A-35, specify in the 
notification that the notification constitutes a
regulatory 
action level event.

    (f) Every domestic insurer that files an RBC Plan or 
Revised RBC Plan with
the Director shall file a copy of the RBC 
Plan or Revised RBC Plan with the
chief insurance regulatory 
official in any state in which the insurer is
authorized to do 
business if that state has a law substantially similar to the

confidentiality provisions in subsection (a) of Section 35A-50 
and if that
official requests in writing a copy of the plan.  
The insurer shall file a copy
of the
RBC Plan or Revised RBC 
Plan in that state no later than the later of
15 days after 
receiving the written request for the copy or
the date on which 
the RBC Plan or Revised RBC Plan is filed under
subsection (c) 
or (d) of this Section.

(Source: P.A. 91-549, eff. 8-14-99.)

 



    (215 ILCS 5/445)  (from Ch. 73, par. 1057)


    Sec. 445. Surplus line. 

    (1) Definitions. For the purposes of this Section: Surplus 
line defined; surplus line insurer
requirements.  "Surplus line 
insurance" means insurance on an Illinois risk of
the kinds 
specified in Classes 2 and 3 of Section 4 of this Code procured

from an unauthorized insurer
after the insurance producer 
representing the
insured or the surplus line producer is 
unable, after diligent effort, to
procure said insurance from 
authorized insurers.

    "Affiliate" means, with respect to an insured, any entity 
that controls, is controlled by, or is under common control 
with the insured. For the purpose of this definition, an entity 
has control over another entity if: 
        (A) the entity directly or indirectly or acting through 
    one or more other persons owns, controls, or has the power 
    to vote 25% or more of any class of voting securities of 
    the other entity; or
        (B) the entity controls in any manner the election of a 
    majority of the directors or trustees of the other entity.
    "Affiliated group" means any group of entities that are all 
affiliated. 
    "Authorized insurer" means an insurer that holds a 
certificate of
authority
issued by the Director but, for the 
purposes of this Section, does not
include a
domestic surplus 
line insurer as defined in Section 445a or any
residual market

mechanism.
    "Exempt commercial purchaser" means any person purchasing 
commercial insurance that, at the time of placement, meets the 
following requirements:
        (A) The person employs or retains a qualified risk 
    manager to negotiate insurance coverage.
        (B) The person has paid aggregate nationwide 
    commercial property and casualty insurance premiums in 
    excess of $100,000 in the immediately preceding 12 months.
        (C) The person meets at least one of the following 
    criteria:
            (I) The person possesses a net worth in excess of 
        $20,000,000, as such amount is adjusted pursuant to the 
        provision in this definition concerning percentage 
        change.
            (II) The person generates annual revenues in 
        excess of $50,000,000, as such amount is adjusted 
        pursuant to the provision in this definition 
        concerning percentage change.
            (III) The person employs more than 500 full-time or 
        full-time equivalent employees per individual insured 
        or is a member of an affiliated group employing more 
        than 1,000 employees in the aggregate.
            (IV) The person is a not-for-profit organization 
        or public entity generating annual budgeted 
        expenditures of at least $30,000,000, as such amount is 
        adjusted pursuant to the provision in this definition 
        concerning percentage change.
            (V) The person is a municipality with a population 
        in excess of 50,000 persons. 
    Effective on January 1, 2015 and each fifth January 1 
occurring thereafter, the amounts in subitems (I), (II), and 
(IV) of item (C) of this definition shall be adjusted to 
reflect the percentage change for such 5-year period in the 
Consumer Price Index for All Urban Consumers published by the 
Bureau of Labor Statistics of the Department of Labor. 
    "Home state" means the following: 
        (A)  With respect to an insured, except as provided in 
    item (B) of this definition:
            (I) the State in which an insured maintains its 
        principal place of business or, in the case of an 
        individual, the individual's principal residence; or
            (II) if 100% of the insured risk is located out of 
        the State referred to in subitem (I), the State to 
        which the greatest percentage of the insured's taxable 
        premium for that insurance contract is allocated. 
        (B) If more than one insured from an affiliated group 
    are named insureds on a single surplus line insurance 
    contract, then "home State" means the home State, as 
    determined pursuant to item (A) of this definition, of the 
    member of the affiliated group that has the largest 
    percentage of premium attributed to it under such insurance 
    contract.
    "Multi-State risk" means a risk with insured exposures in 
more than one State.
    "NAIC" means the National Association of Insurance 
Commissioners or any successor entity.
    "Qualified risk manager" means, with respect to a 
policyholder of commercial insurance, a person who meets all of 
the following requirements:
        (A) The person is an employee of, or third-party 
    consultant retained by, the commercial policyholder.
        (B) The person provides skilled services in loss 
    prevention, loss reduction, or risk and insurance coverage 
    analysis, and purchase of insurance.
        (C) With regard to the person:
            (I) the person has: 
                (a) a bachelor's degree or higher from an 
            accredited college or university in risk 
            management, business administration, finance, 
            economics, or any other field determined by the 
            Director or his designee to demonstrate minimum 
            competence in risk management; and
                (b) the following:
                    (i) three years of experience in risk 
                financing, claims administration, loss 
                prevention, risk and insurance analysis, or 
                purchasing commercial lines of insurance; or
                    (ii) alternatively has: 
                        (AA) a designation as a Chartered 
                    Property and Casualty Underwriter (in this 
                    subparagraph (ii) referred to as "CPCU") 
                    issued by the American Institute for 
                    CPCU/Insurance Institute of America;
                        (BB) a designation as an Associate in 
                    Risk Management (ARM) issued by the 
                    American Institute for CPCU/Insurance 
                    Institute of America;
                        (CC) a designation as Certified Risk 
                    Manager (CRM) issued by the National 
                    Alliance for Insurance Education & 
                    Research;
                        (DD) a designation as a RIMS Fellow 
                    (RF) issued by the Global Risk Management 
                    Institute; or
                        (EE) any other designation, 
                    certification, or license determined by 
                    the Director or his designee to 
                    demonstrate minimum competency in risk 
                    management;
            (II) the person has:
                (a) at least 7 years of experience in risk 
            financing, claims administration, loss prevention, 
            risk and insurance coverage analysis, or 
            purchasing commercial lines of insurance; and
                (b) has any one of the designations specified 
            in subparagraph (ii) of paragraph (b);
            (III) the person has at least 10 years of 
        experience in risk financing, claims administration, 
        loss prevention, risk and insurance coverage analysis, 
        or purchasing commercial lines of insurance; or
            (IV) the person has a graduate degree from an 
        accredited college or university in risk management, 
        business administration, finance, economics, or any 
        other field determined by the Director or his or her 
        designee to demonstrate minimum competence in risk 
        management. 
    "Residual market mechanism" means an association, 
organization, or other
entity described in Article XXXIII of 
this Code or Section 7-501 of the
Illinois Vehicle Code or any 
similar association, organization, or other
entity.
    "State" means any State of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, Guam, the 
Northern Mariana Islands, the Virgin Islands, and American 
Samoa.
    "Surplus line insurance" means insurance on a risk:
        (A) of the kinds specified in Classes 2 and 3 of 
    Section 4 of this Code; and
        (B) that is procured from an unauthorized insurer after 
    the insurance producer representing the insured or the 
    surplus line producer is unable, after diligent effort, to 
    procure the insurance from authorized insurers; and
        (C) where Illinois is the home state of the insured, 
    for policies effective, renewed or extended on July 21, 
    2011 or later and for multiyear policies upon the policy 
    anniversary that falls on or after July 21, 2011; and
        (D) that is located in Illinois, for policies effective 
    prior to July 21, 2011. 
    "Unauthorized insurer" means an insurer that does not hold 
a valid
certificate of authority issued by the Director but, 
for the purposes of this
Section, shall also include a domestic 
surplus line insurer as defined in
Section 445a.

    (1.5) Procuring surplus line insurance; surplus line 
insurer requirements. 
    (a) Insurance producers may procure surplus line insurance 
only if licensed
as a surplus line producer under this Section.
    (b) Licensed surplus line producers and may procure surplus 
line that
insurance only from an unauthorized insurer domiciled 
in the United States only if the insurer:

        (i)  is permitted in its domiciliary jurisdiction to 
    write the type of insurance involved; and 

        (ii) has, (a) that based upon information available to 
    the surplus
line producer,
has a policyholders surplus of 
    not less than $15,000,000
determined in
accordance with the 
    laws of its domiciliary jurisdiction accounting rules that 
    are applicable to
authorized insurers;
and


        (iii) (b) that has standards of solvency and management 
    that are adequate
for the protection of policyholders. ; and


    Where (c) where an unauthorized insurer does not meet the

standards set forth
in (ii) (a) and (iii) (b) above, a surplus 
line producer may, if necessary, procure
insurance from that 
insurer only if prior written warning of
such fact or
condition 
is given to the insured by the insurance producer or surplus 
line
producer.

    (c) Licensed surplus line producers may procure surplus 
line insurance from an unauthorized insurer domiciled outside 
of the United States only if the insurer is listed on the 
Quarterly Listing of Alien Insurers maintained by the 
International Insurers Department of the NAIC. The Director 
shall make the Quarterly Listing of Alien Insurers available to 
surplus line producers without charge. 
    (d) Insurance producers shall not procure from an

unauthorized insurer an insurance policy:
        (i) that is designed to satisfy the
proof of financial 
    responsibility and insurance requirements in any
Illinois 
    law where the law requires that the proof of
insurance is 
    issued by an authorized insurer or residual market

    mechanism;
        (ii) that covers the risk of accidental injury to 
    employees arising
out of and in the course of employment 
    according to the provisions of the
Workers' Compensation 
    Act; or
        (iii) that insures any Illinois personal lines risk, as 
    defined in
subsection (a), (b), or (c) of Section 143.13 of 
    this Code, that is eligible
for residual market mechanism 
    coverage, unless the insured or prospective
insured 
    requests limits of liability greater than the limits 
    provided by the
residual market mechanism.  In the course of 
    making a diligent effort to
procure insurance from 
    authorized insurers, an insurance producer shall not be

    required to submit a risk to a residual market mechanism 
    when the risk is not
eligible for coverage or exceeds the 
    limits available in the residual market
mechanism.
    Where there is an insurance policy issued by an
authorized 
insurer or residual market mechanism
insuring a risk described 
in item (i), (ii), or (iii)
above, nothing in this paragraph 
shall be construed
to prohibit a surplus line producer from 
procuring
from an unauthorized insurer a policy insuring the

risk on an excess or umbrella basis where the excess
or 
umbrella policy is written over one or more
underlying 
policies.

    (e) Licensed surplus line producers may procure surplus 
line insurance from an unauthorized insurer for an exempt 
commercial purchaser without making the required diligent 
effort to procure the insurance from authorized insurers if:
        (i) the producer has disclosed to the exempt commercial 
    purchaser that such insurance may or may not be available 
    from authorized insurers that may provide greater 
    protection with more regulatory oversight; and
        (ii) the exempt commercial purchaser has subsequently 
    in writing requested the producer to procure such insurance 
    from an unauthorized insurer. 
    (2) Surplus line producer; license.  Any licensed producer 
who is a
resident of this State, or any nonresident who 
qualifies under Section
500-40, may be licensed as a surplus 
line producer upon:
(a) completing a prelicensing course of 
study.  The
course provided for by this Section shall be 
conducted
under rules and
regulations prescribed by the 
Director.  The Director may administer the
course or may make 
arrangements, including contracting with
an outside

educational service, for administering the course and

collecting the non-refundable application fee provided for in 
this subsection.
Any
charges assessed
by the Director or the 
educational service for administering
the course
shall be paid 
directly by the individual applicants.  Each applicant
required 
to take the course shall enclose with the application a 
non-refundable
$20
application
fee payable to the Director plus 
a separate course
administration fee.   An applicant who fails to 
appear for the
course as scheduled, or appears but fails to 
complete the
course, shall not be
entitled to any refund, and 
shall be required to submit a new request to
attend the course 
together with all the requisite fees before being rescheduled

for another course at a later date; and
(b) payment of an 
annual license fee of $400; and
(c) procurement of the surety 
bond required in subsection (4) of this
Section.

    A surplus line producer so licensed shall keep a separate

account of
the business transacted thereunder which shall be 
open at all times to the
inspection of the Director or his 
representative.

    No later than July 21, 2012, the State of Illinois shall 
participate in the national insurance producer database of the 
NAIC, or any other equivalent uniform national database, for 
the licensure of surplus line producers and the renewal of such 
licenses. 
    The prelicensing course of study requirement in (a) above

shall not apply to insurance
producers who were licensed under 
the Illinois surplus line law on or before
January 1, 2002.

    (3) Taxes and reports.


        (a) Surplus line tax and penalty for late payment.

        The surplus line tax rate for a surplus line insurance 
    policy or contract is determined as follows:
            (i) 3% for policies or contracts with an effective 
        date prior to July 1, 2003;
            (ii) 3.5% for policies or contracts with an 
        effective date of July 1, 2003 or later. 

        A surplus line producer shall file with the Director on 
    or
before
February 1 and August 1 of each year a report in 
    the form prescribed by the
Director on all surplus line 
    insurance procured from unauthorized insurers
during the 
    preceding
6 month period ending December 31 or June 30

    respectively, and on the filing of such report shall pay to 
    the Director
for the use and benefit of the State a sum 
    equal to the surplus line tax rate multiplied by 3.5% of 
    the
gross
premiums less returned premiums upon all surplus 
    line insurance submitted to the Surplus Line Association of 
    Illinois procured
or cancelled during the preceding 6 
    months.


        Any surplus line producer who fails to pay the full 
    amount due under this
subsection is liable, in addition to 
    the amount due, for such
penalty and interest charges as 
    are provided for under Section 412 of
this Code.  The 
    Director, through the
Attorney General, may
institute an 
    action in the name of the People of the State of Illinois, 
    in
any court of competent jurisdiction, for the recovery of 
    the amount of such
taxes and penalties due, and prosecute 
    the same to final judgment, and take
such steps as are 
    necessary to collect the same.


        (b) Fire Marshal Tax.


        Each surplus line producer shall file with the Director 
    on or before
March 31 of each year a report in the form 
    prescribed by the Director on all
fire insurance procured 
    from unauthorized insurers and submitted to the Surplus 
    Line Association of Illinois subject to tax under
Section 
    12 of the Fire Investigation
Act
and shall pay to the 
    Director the fire marshal tax required thereunder.


        (c) Taxes and fees charged to insured.  The taxes 
    imposed under this
subsection and the countersigning fees 
    charged by the Surplus Line
Association of Illinois may be 
    charged to and collected from surplus line
insureds.

    (4) (Blank). Bond.  Each surplus line producer, as a 
condition to receiving a
surplus line producer's license, shall 
execute and deliver to the Director
a surety bond to the People 
of the State in the penal sum of $20,000, with
a surety which 
is authorized to transact business in this State,
conditioned 
that the surplus line producer will pay to the Director the 
tax,
interest and penalties levied under subsection (3) of this 
Section.

    (5) Submission of documents to Surplus Line Association of 
Illinois.
A surplus line producer shall submit every insurance 
contract
issued
under his or her license to the Surplus Line 
Association of Illinois for
recording and countersignature.  
The submission and countersignature may be
effected through 
electronic means.  The submission shall set
forth:


        (a) the name of the insured;


        (b) the description and location of the insured 
    property or
risk;


        (c) the amount insured;


        (d) the gross premiums charged or returned;


        (e) the name of the unauthorized insurer from whom 
    coverage has been procured;


        (f) the kind or kinds of insurance procured; and


        (g) amount of premium subject to tax required by 
    Section 12 of the Fire
Investigation Act.


    Proposals, endorsements, and other documents which are

incidental to the insurance but which do not affect the premium

charged
are exempted from filing and countersignature.


    The submission of insuring contracts
to the Surplus Line 
Association of
Illinois constitutes a certification by the 
surplus line producer or by the
insurance producer who 
presented the risk to the surplus line producer for
placement 
as a surplus line risk that
after diligent effort the required 
insurance could not be procured from
authorized insurers and 
that
such procurement was otherwise in accordance with the 
surplus line law.

    (6) Countersignature required.  It shall be unlawful for an 
insurance
producer to deliver any unauthorized insurer

contract unless such
insurance contract is countersigned by the 
Surplus Line Association of
Illinois.

    (7) Inspection of records.  A surplus line producer shall

maintain
separate records of the business transacted under his 
or her license,
including complete copies of surplus line 
insurance contracts maintained on
paper or by electronic means, 
which
records shall be open at all times for inspection by the 
Director and by
the Surplus Line Association of Illinois.

    (8) Violations and penalties.  The Director may suspend or 
revoke or
refuse to renew a surplus line producer license for 
any violation of this Code.
In addition to or in lieu of 
suspension or revocation, the Director may
subject a surplus 
line producer
to a civil penalty of up to $2,000 for each cause 
for suspension
or
revocation.  Such penalty is enforceable under 
subsection (5) of Section
403A of this Code.

    (9) Director may declare insurer ineligible.  If the

Director determines
that the further assumption of risks might 
be hazardous to the
policyholders of an unauthorized insurer, 
the Director may
order the
Surplus Line Association of
Illinois 
not to countersign insurance contracts evidencing insurance in

such insurer and order surplus line producers to cease

procuring insurance
from such insurer.

    (10) Service of process upon Director.  Insurance contracts

delivered under this Section from unauthorized insurers, other 
than domestic
surplus line insurers as defined in Section 445a,

shall contain a
provision designating the
Director and his 
successors in office the true and lawful attorney of the

insurer upon whom may be served all lawful process in any

action, suit or
proceeding arising out of such insurance.

Service of process made upon the Director to be valid hereunder 
must state
the name of the insured, the name of the 
unauthorized insurer
and identify
the contract of insurance.  
The Director at his option is authorized to
forward a copy of 
the process to the Surplus Line Association of Illinois
for 
delivery to the unauthorized insurer or the Director may 
deliver the process to the
unauthorized insurer by other means 
which he considers to be
reasonably
prompt and certain.

    (10.5) Insurance contracts delivered under this Section 
from unauthorized insurers, other than domestic surplus line 
insurers as defined in Section 445a, shall have stamped or 
imprinted on the first page thereof in not less than 12-pt. 
bold face type the following legend: "Notice to Policyholder: 
This contract is issued, pursuant to Section 445 of the 
Illinois Insurance Code, by a company not authorized and 
licensed to transact business in Illinois and as such is not 
covered by the Illinois Insurance Guaranty Fund." Insurance 
contracts delivered under this Section from domestic surplus 
line insurers as defined in Section 445a shall have stamped or 
imprinted on the first page thereof in not less than 12-pt. 
bold face type the following legend: "Notice to Policyholder: 
This contract is issued by a domestic surplus line insurer, as 
defined in Section 445a of the Illinois Insurance Code, 
pursuant to Section 445, and as such is not covered by the 
Illinois Insurance Guaranty Fund."

    (11) The Illinois Surplus Line law does not apply to 
insurance of
property and operations of railroads or aircraft 
engaged in interstate or
foreign commerce, insurance of 
vessels, crafts or hulls, cargoes, marine
builder's risks, 
marine protection and indemnity, or other risks including

strikes and war risks insured under ocean or wet marine forms 
of policies.

    (12) Surplus line insurance procured under this Section, 
including
insurance procured from a domestic surplus line 
insurer, is not subject
to the provisions of the Illinois 
Insurance Code other than Sections 123,
123.1, 401, 401.1, 402, 
403, 403A, 408, 412, 445, 445.1, 445.2, 445.3,
445.4, and all 
of the provisions of Article XXXI to the extent that the

provisions of Article XXXI are not inconsistent with the terms 
of this Act.

(Source: P.A. 92-386, eff. 1-1-02; 93-29, eff. 6-20-03; 93-32, 
eff. 7-1-03; 93-876, eff. 8-6-04.)

 



    (215 ILCS 5/445a)



    Sec. 445a. Domestic surplus line insurer. 

    (a) A domestic insurer possessing
policyholder surplus of 
at least $15,000,000 may pursuant to a resolution by
its board 
of directors, and with the written approval of the Director, be

designated as a "domestic surplus line insurer".

    (b) A domestic surplus line insurer may only insure in this 
State an
Illinois risk only if procured from a surplus line 
producer pursuant to Section 445 of
this Code.

    (c) A domestic surplus line insurer must agree not to issue 
a policy
designed to satisfy the financial responsibility 
requirements of the Illinois
Vehicle Code, the Workers' 
Compensation Act, or the Workers' Occupational
Diseases Act.  A 
domestic surplus line insurer is not subject to the provisions

of Articles XXXIII, XXXIII 1/2, XXXIV, XXXVIIIA, Section 468, 
or Section
478.1 of this Code.

    (d) For the purposes of the federal Nonadmitted and 
Reinsurance Reform Act of 2010 (15 USC 8201 et seq.), a 
domestic surplus line insurer shall be considered a nonadmitted 
insurer, as the term is defined in the Act, with respect to 
risks insured in this State. 
(Source: P.A. 90-794, eff. 8-14-98.)


 
    Section 97. Severability. The provisions of this Act are 
severable under Section 1.31 of the Statute on Statutes.
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.