Producer FAQ
Are there any restrictions on writing
personal lines insurance in the surplus line market?
Yes. On August 6, 2004, the governor signed Senate Bill 2560 (Public
Act 93-0876) into law. Among other things, this bill changed
the rules in Illinois so that for personal lines risks, if there is
residual market coverage available (Illinois Auto Plan, Illinois FAIR
Plan, etc.) at the limits requested by the insured, the risk must be
placed in the residual market, and cannot be written with a
surplus line insurer.
It is the surplus line producer's responsibility to remain familiar
with the offerings of these residual markets and to make sure that no
policies representing coverage available from these markets are placed
with surplus line insurers.
For more information, see our
Bulletin #25, or
view the bill in it's entirety on the
Illinois General Assembly
website.
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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