Underwriters at Lloyd's London
Lloyd's can write insurance in Illinois on
a licensed basis and a surplus line basis.
Lloyd's underwriters are able to write insurance business in Illinois on both a
licensed and a surplus line basis. Lloyd's Illinois offers guidance on licensed Lloyd's issues and files policy forms and rates, on behalf of Lloyd's Underwriters, with
the Illinois Department of Insurance. Provided the surplus
line producer performs the necessary diligent effort to
procure coverage from licensed insurers, underwriters can also write business on a
surplus lines basis.
An underwriter's decision to participate as either a licensed or a surplus line
insurer should be based on their willingness to use policy forms that comply with
Illinois regulatory requirements. Their decision should be evidenced to Lloyd's
Illinois prior to documents being countersigned as surplus line business. If
the documentation is not clear, Lloyd's Illinois may require the broker to seek
clarification that the underwriter wishes to write the business on a surplus
line basis and the required due diligence has been performed.
The Illinois Insurance Code requires that insurance producers make a diligent
effort to procure coverage from at least three licensed (admitted) insurers before seeking placement
in the surplus line market. In order to ensure that producers meet this
requirement, they should first approach Lloyd's underwriters in their capacity as
a licensed market.
If a Lloyd's policy is a surplus line risk, the surplus line producer should submit it to the Surplus Line Association of Illinois
(SLA) in the normal way. If it is admitted, it should be processed in accordance with the procedures of Lloyd's Illinois, Inc.
For more information, you can review general information about Lloyd's in Illinois on the Lloyd's website. There is also contact
information for Lloyd's Illinois, Inc. available on the Lloyd's website. You may also want to visit the
Association of Lloyd's