Full Text of HB3521 103rd General Assembly
HB3521ham001 103RD GENERAL ASSEMBLY | Rep. Thaddeus Jones Filed: 3/21/2023
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| 1 | | AMENDMENT TO HOUSE BILL 3521
| 2 | | AMENDMENT NO. ______. Amend House Bill 3521 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing Section 445 as follows:
| 6 | | (215 ILCS 5/445) (from Ch. 73, par. 1057)
| 7 | | Sec. 445. Surplus line.
| 8 | | (1) Definitions. For the purposes of this Section:
| 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 | 12 | | entity has control over another entity if: | 13 | | (A) the entity directly or indirectly or acting | 14 | | through one or more other persons owns, controls, or has | 15 | | the power to vote 25% or more of any class of voting | 16 | | securities of the other entity; or |
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| 1 | | (B) the entity controls in any manner the election of | 2 | | a majority of the directors or trustees of the other | 3 | | entity. | 4 | | "Affiliated group" means any group of entities that are | 5 | | all affiliated. | 6 | | "Authorized insurer" means an insurer that holds a | 7 | | certificate of
authority
issued by the Director but, for the | 8 | | purposes of this Section, does not
include a
domestic surplus | 9 | | line insurer as defined in Section 445a or any
residual market
| 10 | | mechanism. | 11 | | "Exempt commercial purchaser" means any person purchasing | 12 | | commercial insurance that, at the time of placement, meets the | 13 | | following requirements: | 14 | | (A) The person employs or retains a qualified risk | 15 | | manager to negotiate insurance coverage. | 16 | | (B) The person has paid aggregate nationwide | 17 | | commercial property and casualty insurance premiums in | 18 | | excess of $100,000 in the immediately preceding 12 months. | 19 | | (C) The person meets at least one of the following | 20 | | criteria: | 21 | | (I) The person possesses a net worth in excess of | 22 | | $20,000,000, as such amount is adjusted pursuant to | 23 | | the provision in this definition concerning percentage | 24 | | change. | 25 | | (II) The person generates annual revenues in | 26 | | excess of $50,000,000, as such amount is adjusted |
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| 1 | | pursuant to the provision in this definition | 2 | | concerning percentage change. | 3 | | (III) The person employs more than 500 full-time | 4 | | or full-time equivalent employees per individual | 5 | | insured or is a member of an affiliated group | 6 | | employing more than 1,000 employees in the aggregate. | 7 | | (IV) The person is a not-for-profit organization | 8 | | or public entity generating annual budgeted | 9 | | expenditures of at least $30,000,000, as such amount | 10 | | is adjusted pursuant to the provision in this | 11 | | definition concerning percentage change. | 12 | | (V) The person is a municipality with a population | 13 | | in excess of 50,000 persons. | 14 | | Effective on January 1, 2015 and each fifth January 1 | 15 | | occurring thereafter, the amounts in subitems (I), (II), and | 16 | | (IV) of item (C) of this definition shall be adjusted to | 17 | | reflect the percentage change for such 5-year period in the | 18 | | Consumer Price Index for All Urban Consumers published by the | 19 | | Bureau of Labor Statistics of the Department of Labor. | 20 | | "Home state" means the following: | 21 | | (A) With respect to an insured, except as provided in | 22 | | item (B) of this definition: | 23 | | (I) the state in which an insured maintains its | 24 | | principal place of business or, in the case of an | 25 | | individual, the individual's principal residence; or | 26 | | (II) if 100% of the insured risk is located out of |
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| 1 | | the state referred to in subitem (I), the state to | 2 | | which the greatest percentage of the insured's taxable | 3 | | premium for that insurance contract is allocated. | 4 | | (B) If more than one insured from an affiliated group | 5 | | are named insureds on a single surplus line insurance | 6 | | contract, then "home state" means the home state, as | 7 | | determined pursuant to item (A) of this definition, of the | 8 | | member of the affiliated group that has the largest | 9 | | percentage of premium attributed to it under such | 10 | | insurance contract. | 11 | | If more than one insured from a group that is not | 12 | | affiliated are named insureds on a single surplus line | 13 | | insurance contract, then : (I) if individual group members | 14 | | pay 100% of the premium for the insurance from their own | 15 | | funds, "home state" means the home state, as determined | 16 | | pursuant to item (A) of this definition, of each | 17 | | individual group member; each individual group member's | 18 | | coverage under the surplus line insurance contract shall | 19 | | be treated as a separate surplus line contract for the | 20 | | purposes of this Section; (II) otherwise, "home state" | 21 | | means the home state, as determined pursuant to item (A) | 22 | | of this definition, of the group. | 23 | | Nothing in this definition shall be construed to alter the | 24 | | terms of the surplus line insurance contract. | 25 | | "Master policy" means a surplus line insurance contract | 26 | | with a single set of general contractual terms that are |
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| 1 | | designed to apply on a group basis to multiple insureds who may | 2 | | or may not be affiliated and who may be added to or removed | 3 | | from the contract throughout the course of the contract | 4 | | period. A master policy may include certain provisions that | 5 | | vary for each insured depending on the insured's | 6 | | characteristics and the coverage sought. | 7 | | "Multi-State risk" means a risk with insured exposures in | 8 | | more than one State. | 9 | | "NAIC" means the National Association of Insurance | 10 | | Commissioners or any successor entity. | 11 | | "Personal lines insurance" means insurance as defined in | 12 | | subsection (a), (b), or (c) of Section 143.13 of this Code. | 13 | | "Premium" means any amount designated as premium on the | 14 | | declarations page or elsewhere in a policy and on any | 15 | | endorsement, but does not include taxes, the Surplus Line | 16 | | Association of Illinois recording fee, or any other fee. | 17 | | "Program business" means a clearly defined group of | 18 | | insurance contracts procured by a licensed surplus line | 19 | | producer from an unauthorized insurer, under a single | 20 | | agreement between the producer and insurer, for insureds with | 21 | | the same or similar characteristics and containing the same or | 22 | | similar contract terms. | 23 | | "Qualified risk manager" means, with respect to a | 24 | | policyholder of commercial insurance, a person who meets all | 25 | | of the following requirements: | 26 | | (A) The person is an employee of, or third-party |
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| 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 |
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| 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 | 17 | | after the insurance producer representing the insured or | 18 | | the surplus line producer is unable, after diligent | 19 | | effort, to procure the insurance from authorized insurers; | 20 | | and | 21 | | (C) where Illinois is the home state of the insured, | 22 | | for policies effective, renewed or extended on July 21, | 23 | | 2011 or later and for multiyear policies upon the policy | 24 | | anniversary that falls on or after July 21, 2011; and | 25 | | (D) that is located in Illinois, for policies | 26 | | effective prior to July 21, 2011. |
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| 1 | | "Taxable premium" means a premium for any risk that is | 2 | | located in or attributed to any state. | 3 | | "Unauthorized insurer" means an insurer that does not hold | 4 | | a valid
certificate of authority issued by the Director but, | 5 | | for the purposes of this
Section, shall also include a | 6 | | domestic surplus line insurer as defined in
Section 445a.
| 7 | | (1.5) Procuring surplus line insurance; surplus line | 8 | | insurer requirements. | 9 | | (a) License required. Insurance producers may procure | 10 | | surplus line insurance only if licensed
as a surplus line | 11 | | producer under this Section. | 12 | | (b) Domestic and foreign insurer eligibility. Licensed | 13 | | surplus line producers may procure surplus line
insurance | 14 | | from an unauthorized insurer domiciled in any state only | 15 | | if the insurer:
| 16 | | (i) is permitted in its domiciliary jurisdiction | 17 | | to write the type of insurance involved; and | 18 | |
(ii) has, based upon information available to the | 19 | | surplus
line producer,
a policyholders surplus of not | 20 | | less than $15,000,000
determined in
accordance with | 21 | | the laws of its domiciliary jurisdiction;
and
| 22 | |
(iii) has standards of solvency and management | 23 | | that are adequate
for the protection of policyholders.
| 24 | |
Where an unauthorized insurer does not meet the
| 25 | | standards set forth
in (ii) and (iii) above, a surplus | 26 | | line producer may, if necessary, procure
insurance from |
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| 1 | | that insurer only if prior written warning of
such fact or
| 2 | | condition is given to the insured by the insurance | 3 | | producer or surplus line
producer.
| 4 | | (c) Alien insurer eligibility. Licensed surplus line | 5 | | producers may procure surplus line insurance from an | 6 | | unauthorized insurer not domiciled in any state only if | 7 | | the insurer meets the standards for unauthorized insurers | 8 | | domiciled in any state in paragraph (b) of this subsection | 9 | | (1.5) or is listed on the Quarterly Listing of Alien | 10 | | Insurers maintained by the International Insurers | 11 | | Department of the NAIC at the time of procurement. The | 12 | | Director shall make the Quarterly Listing of Alien | 13 | | Insurers available to surplus line producers without | 14 | | charge. | 15 | | (d) Prohibited transactions. Insurance producers shall | 16 | | not procure from an
unauthorized insurer an insurance | 17 | | policy: | 18 | | (i) that is designed to satisfy the
proof of | 19 | | financial responsibility and insurance requirements in | 20 | | any
Illinois law where the law requires that the proof | 21 | | of
insurance is issued by an authorized insurer or | 22 | | residual market
mechanism; | 23 | | (ii) that covers the risk of accidental injury to | 24 | | employees arising
out of and in the course of | 25 | | employment according to the provisions of the
Workers' | 26 | | Compensation Act; or |
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| 1 | | (iii) that insures any Illinois personal lines | 2 | | risk that is eligible
for residual market mechanism | 3 | | coverage, unless the insured or prospective
insured | 4 | | requests limits of liability greater than the limits | 5 | | provided by the
residual market mechanism. In the | 6 | | course of making a diligent effort to
procure | 7 | | insurance from authorized insurers, an insurance | 8 | | producer shall not be
required to submit a risk to a | 9 | | residual market mechanism when the risk is not
| 10 | | eligible for coverage or exceeds the limits available | 11 | | in the residual market
mechanism. | 12 | | Where there is an insurance policy issued by an
| 13 | | authorized insurer or residual market mechanism
insuring a | 14 | | risk described in item (i), (ii), or (iii)
above, nothing | 15 | | in this paragraph shall be construed
to prohibit a surplus | 16 | | line producer from procuring
from an unauthorized insurer | 17 | | a policy insuring the
risk on an excess or umbrella basis | 18 | | where the excess
or umbrella policy is written over one or | 19 | | more
underlying policies.
| 20 | | (e) Exempt commercial purchaser diligent effort. | 21 | | Licensed surplus line producers may procure surplus line | 22 | | insurance from an unauthorized insurer for an exempt | 23 | | commercial purchaser without making the required diligent | 24 | | effort to procure the insurance from authorized insurers | 25 | | if: | 26 | | (i) the producer has disclosed to the exempt |
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| 1 | | commercial purchaser that such insurance may or may | 2 | | not be available from authorized insurers that may | 3 | | provide greater protection with more regulatory | 4 | | oversight; and | 5 | | (ii) the exempt commercial purchaser has | 6 | | subsequently in writing requested the producer to | 7 | | procure such insurance from an unauthorized insurer. | 8 | | (f) Commercial wholesale transaction diligent effort. | 9 | | A licensed surplus line producer may procure a surplus | 10 | | line insurance contract, other than a personal lines | 11 | | insurance contract, from an unauthorized insurer without | 12 | | making the required diligent effort to procure the | 13 | | insurance from authorized insurers if the risk was | 14 | | referred to the surplus line producer by an | 15 | | Illinois-licensed insurance producer who is not affiliated | 16 | | with the surplus line producer. | 17 | | (g) Master policy diligent effort. For a master policy | 18 | | insurance contract, a licensed surplus line producer may | 19 | | make the required diligent effort to procure the insurance | 20 | | from authorized insurers annually for the master policy | 21 | | rather than individually for each insured that is added | 22 | | during the policy period. The diligent effort shall | 23 | | include all variable provisions of the master policy. | 24 | | (h) Program business diligent effort. For program | 25 | | business, a licensed surplus line producer may make the | 26 | | required diligent effort to procure the insurance from |
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| 1 | | authorized insurers annually for the program rather than | 2 | | individually for each contract. The diligent effort shall | 3 | | include all variable provisions of the program master | 4 | | policy . | 5 | | (2) Surplus line producer; license. Any licensed producer | 6 | | who is a
resident of this State, or any nonresident who | 7 | | qualifies under Section
500-40, may be licensed as a surplus | 8 | | line producer upon payment of an annual license fee of $400.
| 9 | | A surplus line producer so licensed shall keep a separate
| 10 | | account of
the business transacted thereunder for 7 years from | 11 | | the policy effective date which shall be open at all times to | 12 | | the
inspection of the Director or his representative.
| 13 | | No later than July 21, 2012, the State of Illinois shall | 14 | | participate in the national insurance producer database of the | 15 | | NAIC, or any other equivalent uniform national database, for | 16 | | the licensure of surplus line producers and the renewal of | 17 | | such licenses.
| 18 | | (3) Taxes and reports.
| 19 | | (a) Surplus line tax and penalty for late payment. The | 20 | | surplus line tax rate for a surplus line insurance policy | 21 | | or contract is determined as follows: | 22 | | (i) 3% for policies or contracts with an effective | 23 | | date prior to July 1, 2003; | 24 | | (ii) 3.5% for policies or contracts with an | 25 | | effective date of July 1, 2003 or later. | 26 | | A surplus line producer shall file with the Director |
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| 1 | | on or
before
February 1 and August 1 of each year a report | 2 | | in the form prescribed by the
Director on all surplus line | 3 | | insurance procured from unauthorized insurers and | 4 | | submitted to the Surplus Line Association of Illinois
| 5 | | during the preceding
6 month period ending December 31 or | 6 | | June 30
respectively, and on the filing of such report | 7 | | shall pay to the Director
for the use and benefit of the | 8 | | State a sum equal to the surplus line tax rate multiplied | 9 | | by the
gross taxable
premiums less returned taxable | 10 | | premiums upon all surplus line insurance submitted to the | 11 | | Surplus Line Association of Illinois during the preceding | 12 | | 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 | 17 | | Code. The Director, through the
Attorney General, may
| 18 | | institute an action in the name of the People of the State | 19 | | of Illinois, in
any court of competent jurisdiction, for | 20 | | the recovery of the amount of such
taxes, late fees, | 21 | | interest, and penalties due, and prosecute the same to | 22 | | final judgment, and take
such steps as are necessary to | 23 | | collect the same.
| 24 | | (b) Fire Marshal Tax.
Each surplus line producer shall | 25 | | file with the Director on or before February 1
of each year | 26 | | a report in the form prescribed by the Director on all
fire |
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| 1 | | insurance procured from unauthorized insurers and | 2 | | submitted to the Surplus Line Association of Illinois | 3 | | during the previous year that is subject to tax under
| 4 | | Section 12 of the Fire Investigation
Act
and shall pay to | 5 | | the Director the fire marshal tax required thereunder.
| 6 | | (c) Taxes and fees charged to insured. The taxes | 7 | | imposed under this
subsection and the recording 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 and premium-bearing endorsement
issued
under his or | 14 | | her license to the Surplus Line Association of Illinois for
| 15 | | recording. The submission and recording may be
effected | 16 | | through 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) (blank);
| 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.
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| 1 | | Proposals, endorsements, and other documents which are
| 2 | | incidental to the insurance but which do not affect the | 3 | | premium
charged
are exempted from the submission and recording | 4 | | requirements.
| 5 | | The submission of insuring contracts
to the Surplus Line | 6 | | Association of
Illinois constitutes a certification by the | 7 | | surplus line producer or by the insurance producer who | 8 | | presented the risk to the surplus line producer for
placement | 9 | | as a surplus line risk that
after diligent effort, where | 10 | | required, the required insurance could not be procured from
| 11 | | authorized insurers and that
such procurement was otherwise in | 12 | | accordance with the surplus line law.
| 13 | | (6) Evidence of recording required. It shall be unlawful | 14 | | for an insurance
producer to deliver any unauthorized insurer
| 15 | | contract or premium-bearing endorsement unless it contains | 16 | | evidence of recording by the Surplus Line Association of
| 17 | | Illinois.
| 18 | | (7) Inspection of records. A surplus line producer shall
| 19 | | maintain
separate records of the business transacted under his | 20 | | or her license for 7 years from the policy effective date,
| 21 | | including complete copies of surplus line insurance contracts | 22 | | maintained on
paper or by electronic means, which
records | 23 | | shall be open at all times for inspection by the Director and | 24 | | by
the Surplus Line Association of Illinois.
| 25 | | (8) Violations and penalties. The Director may suspend or | 26 | | revoke or
refuse to renew a surplus line producer license for |
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| 1 | | any violation of this Code.
In addition to or in lieu of | 2 | | suspension or revocation, the Director may
subject a surplus | 3 | | line producer
to a civil penalty of up to $2,000 for each cause | 4 | | for suspension
or
revocation. Such penalty is enforceable | 5 | | under subsection (5) of Section
403A of this Code.
| 6 | | Whenever it appears to the satisfaction of the Director | 7 | | that a surplus line producer has made a documented good faith | 8 | | determination of the home state for a surplus line insurance | 9 | | contract and has paid the surplus line taxes to a state other | 10 | | than Illinois, and the Director determines that the producer's | 11 | | good faith determination was incorrect and the home state is | 12 | | Illinois, the surplus line producer may, at the discretion of | 13 | | the Director, be required to submit the contract to the | 14 | | Surplus Line Association of Illinois and pay applicable taxes | 15 | | and recording fees, but there shall be no penalty, interest, | 16 | | or late fee assessed. | 17 | | (9) Director may declare insurer ineligible. If the
| 18 | | Director determines
that the further assumption of risks might | 19 | | be hazardous to the
policyholders of an unauthorized insurer, | 20 | | the Director may
order the
Surplus Line Association of
| 21 | | Illinois not to accept and record insurance contracts | 22 | | evidencing insurance in
such insurer and order surplus line | 23 | | producers to cease
procuring insurance
from such insurer.
| 24 | | (10) Service of process upon Director. Insurance contracts
| 25 | | delivered under this Section from unauthorized insurers, other | 26 | | than domestic
surplus line insurers as defined in Section |
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| 1 | | 445a,
shall contain a
provision designating the
Director and | 2 | | his successors in office the true and lawful attorney of the
| 3 | | insurer upon whom may be served all lawful process in any
| 4 | | action, suit or
proceeding arising out of such insurance.
| 5 | | Service of process made upon the Director to be valid | 6 | | hereunder must state
the name of the insured, the name of the | 7 | | unauthorized insurer
and identify
the contract of insurance. | 8 | | The Director at his option is authorized to
forward a copy of | 9 | | the process to the Surplus Line Association of Illinois
for | 10 | | delivery to the unauthorized insurer or the Director may | 11 | | deliver the process to the
unauthorized insurer by other means | 12 | | which he considers to be
reasonably
prompt and certain.
| 13 | | (10.5) Required notice to policyholder. Insurance | 14 | | contracts delivered under this Section from unauthorized | 15 | | insurers, other than domestic surplus line insurers as defined | 16 | | in Section 445a, shall have stamped or imprinted on the first | 17 | | page thereof in not less than 12-pt. bold face type the | 18 | | following legend: "Notice to Policyholder: This contract is | 19 | | issued, pursuant to Section 445 of the Illinois Insurance | 20 | | Code, by a company not authorized and licensed to transact | 21 | | business in Illinois and as such is not covered by the Illinois | 22 | | Insurance Guaranty Fund." Insurance contracts delivered under | 23 | | this Section from domestic surplus line insurers as defined in | 24 | | Section 445a shall have stamped or imprinted on the first page | 25 | | thereof in not less than 12-pt. bold face type the following | 26 | | legend: "Notice to Policyholder: This contract is issued by a |
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| 1 | | domestic surplus line insurer, as defined in Section 445a of | 2 | | the Illinois Insurance Code, pursuant to Section 445, and as | 3 | | such is not covered by the Illinois Insurance Guaranty Fund."
| 4 | | (11) Marine, aviation, and transportation. The Illinois | 5 | | Surplus Line law does not apply to insurance of
property and | 6 | | operations of railroads or aircraft engaged in interstate or
| 7 | | foreign commerce, insurance of vessels, crafts or hulls, | 8 | | cargoes, marine
builder's risks, marine protection and | 9 | | indemnity, or other risks including
strikes and war risks | 10 | | insured under ocean or wet marine forms of policies.
| 11 | | (12) Applicability of Illinois Insurance Code. Surplus | 12 | | line insurance procured under this Section, including
| 13 | | insurance procured from a domestic surplus line insurer, is | 14 | | not subject
to the provisions of the Illinois Insurance Code | 15 | | other than Sections 123,
123.1, 401, 401.1, 402, 403, 403A, | 16 | | 408, 412, 445, 445a, 445.1, 445.2, 445.3,
445.4, and all of the | 17 | | provisions of Article XXXI to the extent that the
provisions | 18 | | of Article XXXI are not inconsistent with the terms of this | 19 | | Act.
| 20 | | (Source: P.A. 102-224, eff. 1-1-22 .)".
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