Are there any restrictions on writing
personal lines insurance in the surplus line market?
Yes. On August 6, 2004, the governor signed Senate Bill 2560 (Public
Act 93-0876) into law. Among other things, this bill changed
the rules in Illinois so that for personal lines risks, if there is
residual market coverage available (Illinois Auto Plan, Illinois FAIR
Plan, etc.) at the limits requested by the insured, the risk must be
placed in the residual market, and cannot be written with a
surplus line insurer.
It is the surplus line producer's responsibility to remain familiar
with the offerings of these residual markets and to make sure that no
policies representing coverage available from these markets are placed
with surplus line insurers.
For more information, see our
Bulletin #25, or
view the bill in its entirety on the
Illinois General Assembly
The materials and information contained herein are only synopses of laws,
regulations and other information and do not constitute legal advice. It is
recommended that you consult your legal advisers regarding application of
state and federal laws and regulations to any particular situation. The
Surplus Line Association does not undertake and hereby disclaims any
obligation to advise you of any change to laws and
regulations or the procedures of the Surplus Line Association.