ILL. CONSIDERS SURPLUS LINES BILLS:

Bills dealing with the surplus lines market are up for consideration in the Illinois General Assembly this session. SB 2560 closely resembles last year’s vetoed bill, which would have amended the state insurance code to allow a producer to place business in the surplus lines market without having to get a declination from a residual plan, such as the Illinois Auto Plan and the Illinois FAIR plan. Gov. Rod Blagojevich, a Democrat, objected to the bill based on concerns about allowing increased access to the surplus lines market because of the insurers’ unregulated status and the potential impact on third-party claimants. The bill, which deals specifically with the Illinois Auto Plan, establishes a number of guidelines for producers to follow when purchasing surplus lines coverage, including prohibiting them from procuring a policy from an unauthorized insurer and proving financial responsibility and insurance requirements in compliance with Illinois law. The bill was passed by the Senate and is in the House Committee on Rules. Insurers also are watching SB 2301, which has been amended to address how any future increases in the surplus lines tax will be administered.

Topics Excess Surplus Illinois