Bulletin #14: Insurer Financial Requirements
General Bulletin #14
INSURER FINANCIAL REQUIREMENTS
Effective September 9, 1994, the
Surplus Line Law (Section 445 of the Insurance Code) has
been changed. The financial requirement of Five Million
dollars ($5,000,000) of policyholder surplus has been
increased to Fifteen Million dollars
($15,000,000) of policyholder surplus.
As a result of this change in the law,
after September 9, 1994, if the company you intend to use
does not have fifteen million dollars in policyholder
surplus or does not have standards of solvency and
management that are adequate for the protection of
policyholders, then the insurance producer or surplus line
producer is required to provide prior written warning to the
insured of any such fact or condition and maintain evidence
of delivery of that written warning to the insured. The
form for such a written warning is set forth in Illinois
Insurance
Regulation 2701, Illustration A.
The Association maintains a
library of
financial information for the benefit of its members to
assist them in complying with the law.
Should you require any additional
information regarding the above you may
contact the
Association.
01-Oct-1994
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