Bill Text: IL SB1833 | 2017-2018 | 100th General Assembly | Enrolled

Bill Title: Amends the Illinois Insurance Code. In provisions concerning the filing of policy forms with the Director of Insurance, includes that policies issued to an exempt commercial purchaser, except for workers' compensation policies, are not subject to the provisions. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Enrolled) 2017-07-28 - Sent to the Governor [SB1833 Detail]

Download: Illinois-2017-SB1833-Enrolled.html

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1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5changing Section 121-2.08 as follows:
6 (215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)
7 Sec. 121-2.08. Transactions in this State involving
8contracts of insurance independently procured directly from an
9unauthorized insurer by industrial insureds.
10 (a) As used in this Section:
11 "Exempt commercial purchaser" means exempt commercial
12purchaser as the term is defined in subsection (1) of Section
13445 of this Code.
14 "Home state" means home state as the term is defined in
15subsection (1) of Section 445 of this Code.
16 "Industrial insured" means an insured:
17 (i) that procures the insurance of any risk or risks of
18 the kinds specified in Classes 2 and 3 of Section 4 of this
19 Code by use of the services of a full-time employee who is
20 a qualified risk manager or the services of a regularly and
21 continuously retained consultant who is a qualified risk
22 manager;
23 (ii) that procures the insurance directly from an

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1 unauthorized insurer without the services of an
2 intermediary insurance producer; and
3 (iii) that is an exempt commercial purchaser whose home
4 state is Illinois.
5 "Insurance producer" means insurance producer as the term
6is defined in Section 500-10 of this Code.
7 "Qualified risk manager" means qualified risk manager as
8the term is defined in subsection (1) of Section 445 of this
10 "Safety-Net Hospital" means an Illinois hospital that
11qualifies as a Safety-Net Hospital under Section 5-5e.1 of the
12Illinois Public Aid Code.
13 "Unauthorized insurer" means unauthorized insurer as the
14term is defined in subsection (1) of Section 445 of this Code.
15 (b) For contracts of insurance effective January 1, 2015 or
16later, within 90 days after the effective date of each contract
17of insurance issued under this Section, the insured shall file
18a report with the Director by submitting the report to the
19Surplus Line Association of Illinois in writing or in a
20computer readable format and provide information as designated
21by the Surplus Line Association of Illinois. The information in
22the report shall be substantially similar to that required for
23surplus line submissions as described in subsection (5) of
24Section 445 of this Code. Where applicable, the report shall
25satisfy, with respect to the subject insurance, the reporting
26requirement of Section 12 of the Fire Investigation Act.

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1 (c) For contracts of insurance effective January 1, 2015 or
2later, within 30 days after filing the report, the insured
3shall pay to the Director for the use and benefit of the State
4a sum equal to the gross premium of the contract of insurance
5multiplied by the surplus line tax rate, as described in
6paragraph (3) of subsection (a) of Section 445 of this Code,
7and shall pay the fire marshal tax that would otherwise be due
8annually in March for insurance subject to tax under Section 12
9of the Fire Investigation Act. For contracts of insurance
10effective January 1, 2015 or later, within 30 days after filing
11the report, the insured shall pay to the Surplus Line
12Association of Illinois a countersigning fee that shall be
13assessed at the same rate charged to members pursuant to
14subsection (4) of Section 445.1 of this Code.
15 (d) For contracts of insurance effective January 1, 2015 or
16later, the insured shall withhold the amount of the taxes and
17countersignature fee from the amount of premium charged by and
18otherwise payable to the insurer for the insurance. If the
19insured fails to withhold the tax and countersignature fee from
20the premium, then the insured shall be liable for the amounts
21thereof and shall pay the amounts as prescribed in subsection
22(c) of this Section.
23 (e) Contracts of insurance with an industrial insured that
24qualifies as a Safety-Net Hospital are not subject to
25subsections (b) through (d) of this Section.
26(Source: P.A. 98-978, eff. 1-1-15.)

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1 Section 99. Effective date. This Act takes effect upon
2becoming law.