Bulletin #29: Binders and Electronic Filing
General Bulletin #29
BINDERS AND ELECTRONIC FILING
The Illinois Department of Insurance (DOI) has approved changes in the way the Surplus Line Association of Illinois (SLAI) can accept filings.
Binders. Effective March 1, 2007, instead of filing the complete policy, members may file1 a paper binder which must include the policy number, the required Notice and the Service of Process provision. This means that the Association will accept paper binders provided there is a company policy number ("to be assigned" will not suffice), Notice to Policyholder and Service of Process contained within the binder. The binder must also contain the 12 items of "Required Information" as found on page 4 of the Association's Procedures Manual.
Electronic Filing. A surplus line producer may make a filing1 submission with the Association on an electronic data-only basis using a standardized, web based, electronic filing system (EFS) created by the Surplus Line Association of Illinois.
We expect the EFS to be operational on March 1, 2007 and we will send out a notice when it is ready to accept filings.
At some point before the system is ready for full rollout, provided that you have registered to use the system, you will be able to access the system for all functions except filing. During this startup period you will be able to setup user logins, customize available insurance companies and coverage codes and review previous filings made with the Association. The only thing you will not be able to do is make filings.
ADRS. Any submissions/filings made using paper binders or the EFS will be subject to a new Accuracy & Documentation Review System (ADRS) to be implemented by the Association. SLAI will periodically collect from members complete physical policies and endorsements on a sample basis to verify retention of documents as well as accuracy of data reported.
New Stamp. The SLAI will be providing a new combined "Notice to Policyholder / Service of Process" stamp that should be especially helpful if you plan to file paper binders. The stamp will assist you in complying with the law and requirements by the DOI that paper binder filings include "required provisions for service of process and legend." You may continue to use the old stamp for policies.
If you have any questions regarding this bulletin, please do not hesitate to contact our office.
1 Filings for Lloyd's business must still be submitted first to the Lloyd's Illinois, Inc. office (which will not accept binder filings). Streamlined procedures for SLAI filing of Lloyd's policies are forthcoming.