Producer FAQ
I am an Illinois surplus line
producer and my client, the insured, is a governmental entity. Do they
have to pay surplus line taxes and fees?
There are no exemptions for any governmental entities from the surplus line
taxes and fees anywhere in the surplus line laws or regulations.
Remember, surplus line taxes and fees are not, technically, levied
upon the insured. They are levied upon you, the surplus line producer.
You are permitted, but not required, to pass these costs on to the
insured.
* There are, however, certain statutorily
exempt classes: interstate railroad operations, interstate
airline operations and risks written on ocean or wet marine
forms (see
ILCS 215 5/445, Par. 11)
Disclaimer
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 the Illinois surplus line laws and regulations to any particular
situation. The Surplus Line Association does not undertake and hereby
disclaims any obligation to advise you of any change to the Illinois surplus
line laws and regulations or the procedures of the Surplus Line Association.
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