Bulletin #39: IL Law Changes (NRRA, Bond, Other)
General Bulletin #39
Changes to the Illinois Surplus Line Law:
NRRA Conforming Language, Repeal of Surplus Line
Producer License Bond & Other Changes
On August 14, 2012, Governor Quinn signed House Bill 1577 into law (Public Act
97-0955). The bill made changes to the Illinois surplus line law to bring it into
conformity with the federal Nonadmitted and Reinsurance Reform Act (NRRA) and made
several other changes. Below is a summary of the changes to the law:
-
The law makes various changes to the statute, bringing
it into conformity with
the NRRA. At this point, the effect of these changes on
Illinois surplus line producers is minimal since, under Illinois Department of Insurance
Bulletin #2011-09, Illinois
was already operating under these NRRA-compliant rules
and has been since July 21, 2011.
-
It eliminates the requirement for a surplus line producer
license bond. The Illinois
Department of Insurance has informed us that bonds currently in force may be
canceled effective 8/14/12.
-
It eliminates the surplus line producer prelicensing course requirement.
-
It makes a technical change to the tax wording bringing the statute into
alignment with a court decision.
-
It eliminates a conflict between the statute and Illinois regulations, codifying
the long standing practice that surplus line taxes are due
and payable based on filings with the
Surplus Line Association of Illinois.
- It clarifies how Illinois domestic surplus line insurers should be categorized
with regard to the federal NRRA.
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 of Illinois (SLAI) does not undertake and hereby disclaims any obligation to advise you of any change to laws and regulations or to the SLAI procedures.
18-Sep-2012
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