093_SB0318sam002

 










                                     LRB093 02126 JLS 14025 a

 1                    AMENDMENT TO SENATE BILL 318

 2        AMENDMENT NO.     .  Amend Senate Bill 318 on page  1  by
 3    replacing lines 18 through 21 with the following:
 4        ""Authorized  insurer"  means  an  insurer  that  holds a
 5    certificate of authority issued by the Director but, for  the
 6    purposes of this Section, does not include a domestic surplus
 7    line  insurer  as  defined  in  Section  445a or any residual
 8    market mechanism."; and

 9    and on page 2 by inserting  immediately  below  line  17  the
10    following:
11        "Insurance   producers   shall   not   procure   from  an
12    unauthorized insurer an insurance policy:
13             (i)  that  is  designed  to  satisfy  the  proof  of
14        financial responsibility and  insurance  requirements  in
15        any  Illinois statute where the statute requires that the
16        proof or insurance is issued by an authorized insurer  or
17        residual market mechanism;
18             (ii)  that  covers  the risk of accidental injury to
19        employees arising out of and in the course of  employment
20        according  to the provisions of the Workers' Compensation
21        Act; or
22             (iii)  that  insures  any  Illinois  personal  lines
23        risk, as defined  in  subsection  (a),  (b),  or  (c)  of
 
                            -2-      LRB093 02126 JLS 14025 a
 1        Section  143.13  of  this  Code,  that  is  eligible  for
 2        residual market mechanism coverage, unless the insured or
 3        prospective  insured requests limits of liability greater
 4        than  the  limits  provided  by   the   residual   market
 5        mechanism.   In the course of making a diligent effort to
 6        procure insurance from authorized insurers, an  insurance
 7        producer  shall  not  be  required  to submit a risk to a
 8        residual market mechanism when the risk is  not  eligible
 9        for  coverage  or  exceeds  the  limits  available in the
10        residual market mechanism.
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) above,  nothing  in
14    this  paragraph shall be construed to prohibit a surplus line
15    producer from procuring from an unauthorized insurer a policy
16    insuring the risk on an excess or umbrella  basis  where  the
17    excess  or  umbrella  policy  is  written  over  one  or more
18    underlying policies.".