Library of Financial Information for Surplus Line
Insurers
The Association maintains a library of financial
information for surplus line insurers to assist surplus
line licensees in fulfilling their duties under the
surplus line laws and regulations.
Surplus Line Licensees and the Law
Section 445 of the Illinois Insurance Code mandates, among other things, that
surplus line producers may procure insurance only from unauthorized companies
which have no less than $15,000,000 in policyholders surplus and
standards of solvency and management adequate for the protection of policyholders.
When an unauthorized company does not meet either or both of the above standards,
prior written warning of such fact or condition is to be given to the insured.
As a surplus line producer, you should take very seriously the implications
of the above standards. First, failure to comply with
Section 445 can result
in suspension or revocation of your surplus line producer license. Second, Illinois
Insurance Code Section 121-4 provides that: "If any such unauthorized insurer
fails to pay any claim or loss within the provisions of such an insurance contract
[...not placed in compliance with the Illinois Surplus Line Law...], any person who
assisted or in any manner aided directly or indirectly in the procurement of
the insurance contract shall be liable to the insured for the full amount of
the claim or loss as provided in that insurance contract."
In light of the above facts, one of the most important services provided
by the Surplus Line Association of Illinois to its member licensees is
access to financial information of surplus line companies.
Library of Financial Information
Following is a list of the various sources of data available at the Association
library. Of course, you will want to consider reviewing other sources as well
in carrying out your duties under the Illinois Insurance Code and Regulations.
The Association Library is available to all members during normal office hours.
A.M. BEST'S INSURANCE REPORTS: Ratings of over 2,400 property and casualty insurers.
A.M. BEST'S INSURANCE REPORTS INTERNATIONAL EDITION: Ratings of over 1,000 insurers
domiciled outside the U.S.
NAPSLO "SECURITY & REVIEW": Data on over 110 surplus line specialty carriers.
NAIC FINANCIAL REVIEW OF ALIEN INSURERS: Financial data of 100 alien insurers.
WARD'S RESULTS P/C EDITION: Insurers are listed with key ratios and financial
statement line items. Companies are grouped based on product mix, premium volume,
geographic mix and ownership structure.
STANDARD & POORS INSURER SOLVENCY REVIEW: Property & Casualty ratings for 3,000
insurers & financial information on 5,000 insurers.
SURPLUS LINE COMPANY FINANCIAL STATEMENTS: In various formats including the
yellow "convention" statement format and other presentation formats.
NAIC LISTING OF COMPANIES: Listing of all domestic companies and their NAIC
Code Numbers.
NAIC EXAMINERS HANDBOOK: Guidelines for review of financial information of
insurance companies.
NILS LAW BOOKS (3 volumes): Illinois Insurance Laws; Illinois Regulations;
and Related Laws to the Insurance Code.
A.M. BEST'S INSURANCE MANAGEMENT REPORTS: A weekly compendium of financial news,
Washington review, perspectives and on-line reports.
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