Bill Text: IL SB1833 | 2017-2018 | 100th General Assembly | Chaptered
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: (Passed) 2017-09-22 - Public Act . . . . . . . . . 100-0535 [SB1833 Detail]
Download: Illinois-2017-SB1833-Chaptered.html
| ||||
Public Act 100-0535 | ||||
| ||||
| ||||
AN ACT concerning regulation.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Illinois Insurance Code is amended by | ||||
changing Section 121-2.08 as follows:
| ||||
(215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)
| ||||
Sec. 121-2.08.
Transactions in this State involving | ||||
contracts of
insurance independently procured directly from an | ||||
unauthorized insurer by industrial insureds. | ||||
(a) As used in this Section: | ||||
"Exempt commercial purchaser" means exempt commercial | ||||
purchaser as the term is defined in subsection (1) of Section | ||||
445 of this Code. | ||||
"Home state" means home state as the term is defined in | ||||
subsection (1) of Section 445 of this Code. | ||||
"Industrial insured" means an insured:
| ||||
(i) that procures the insurance of any risk or risks of | ||||
the kinds specified in Classes 2 and 3 of Section 4 of this | ||||
Code by use of the services of a full-time employee who is | ||||
a qualified risk manager or the services of a regularly and
| ||||
continuously retained consultant who is a qualified risk | ||||
manager;
| ||||
(ii) that procures the insurance directly from an |
unauthorized insurer without the services of an | ||
intermediary insurance producer; and
| ||
(iii) that is an exempt commercial purchaser whose home | ||
state is Illinois.
| ||
"Insurance producer" means insurance producer as the term | ||
is defined in Section 500-10 of this Code. | ||
"Qualified risk manager" means qualified risk manager as | ||
the term is defined in subsection (1) of Section 445 of this | ||
Code. | ||
"Safety-Net Hospital" means an Illinois hospital that | ||
qualifies as a Safety-Net Hospital under Section 5-5e.1 of the | ||
Illinois Public Aid Code. | ||
"Unauthorized insurer" means unauthorized insurer as the | ||
term is defined in subsection (1) of Section 445 of this Code. | ||
(b) For contracts of insurance effective January 1, 2015 or | ||
later, within 90 days after the effective date of each contract | ||
of insurance issued under this Section, the insured shall file | ||
a report with the Director by submitting the report to the | ||
Surplus Line Association of Illinois in writing or in a | ||
computer readable format and provide information as designated | ||
by the Surplus Line Association of Illinois. The information in | ||
the report shall be substantially similar to that required for | ||
surplus line submissions as described in subsection (5) of | ||
Section 445 of this Code. Where applicable, the report shall | ||
satisfy, with respect to the subject insurance, the reporting | ||
requirement of Section 12 of the Fire Investigation Act. |
(c) For contracts of insurance effective January 1, 2015 or | ||
later, within 30 days after filing the report, the insured | ||
shall pay to the Director for the use and benefit of the State | ||
a sum equal to the gross premium of the contract of insurance | ||
multiplied by the surplus line tax rate, as described in | ||
paragraph (3) of subsection (a) of Section 445 of this Code, | ||
and shall pay the fire marshal tax that would otherwise be due | ||
annually in March for insurance subject to tax under Section 12 | ||
of the Fire Investigation Act. For contracts of insurance | ||
effective January 1, 2015 or later, within 30 days after filing | ||
the report, the insured shall pay to the Surplus Line | ||
Association of Illinois a countersigning fee that shall be | ||
assessed at the same rate charged to members pursuant to | ||
subsection (4) of Section 445.1 of this Code. | ||
(d) For contracts of insurance effective January 1, 2015 or | ||
later, the insured shall withhold the amount of the taxes and | ||
countersignature fee from the amount of premium charged by and | ||
otherwise payable to the insurer for the insurance. If the | ||
insured fails to withhold the tax and countersignature fee from | ||
the premium, then the insured shall be liable for the amounts | ||
thereof and shall pay the amounts as prescribed in subsection | ||
(c) of this Section. | ||
(e) Contracts of insurance with an industrial insured that | ||
qualifies as a Safety-Net Hospital are not subject to | ||
subsections (b) through (d) of this Section. | ||
(Source: P.A. 98-978, eff. 1-1-15 .)
|
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|