Summary of Filing Procedures & Surplus Line Rules in Illinois

Electronic Filing System (EFS) Summary of Filing Procedures

This is just a summary.  Read/download the full Procedures Manual before trying to file with the Association and read/download the EFS manuals before using the system -- call us if you need help.

EFS Registration

Before making electronic filings with the Association, you must register.  For new members, registration materials are included in the SLA Member Registration Package.  If you are already a member, download the Member Registration Package and follow the instructions under "Current Members Registering for Electronic Filing."

Click here to proceed to the Member Registration Package download page.

EFS-Specific Procedures

1. Filing your surplus line policies and endorsements with the SLA should be done on a timely basis.  If you believe that waiting for the policy paperwork would cause a delay in filing and you have a binder, file based on the binder information (read the Special Procedures for Binder Filing under #3, below). 

2. After registering for electronic filing, you should read and/or download the EFS manual.

3. When making an EFS filing based on a binder (in lieu of a policy), you must have a company binder with a policy number ("to be assigned" or "not available" will not suffice as a policy number).  The binder must include the "Notice to Policyholder" wording and service of suit requirements (see our special combined "Notice To Policyholder / Service of Suit" stamp for binders).  When the policy becomes available, it's a good idea to attach a copy of the EFS filing confirmation page before delivering it to the insured.

4. For an overview of how the EFS works, read Bulletin #31: EFS Overview.  Read the EFS User Manual for specific information on how to make an electronic filing.

Procedures Common to All Filings

5. "Notice to Policyholder" wording must be on first page or declarations page of each policy or binder filing.  You do not need this wording on endorsements.  Attaching the EFS confirmation is an acceptable substitute for this requirement.  A stamp with the wording can be requested by contacting us.

6. Policies must have proper Service of Suit wording.  For sample service of suit wording, click here.  When filing a binder as an alternate to policy filing, the Division of Insurance requires that the binder contain service of suit wording.  FWhen using EFS, the confirmation page will include the appropriate wording.  When filing on paper or using EFS (but not printing the confirmation page) you can still include this wording on binders.  To find out how, click here.  Endorsements do not need service of suit wording.

7. Taxes and stamping fees must be shown on declarations page.  Attaching the EFS filing confirmation page is an acceptable substitute for this requirement.  Taxes and fees are charged against premium only.  Do not charge taxes or stamping fees on policy fees, inspection fees, etc.

8. Taxes and stamping fees must be rounded to the nearest whole dollar.  The EFS system will calculate the taxes and fees for you based on the type of coverage and the premium amount.

9. Make sure what you are filing is an Illinois risk.

10. If there is any primary personal lines auto or homeowners coverage, you probably need to place it with a residual market (Auto Plan, FAIR Plan).  See Bulletin #25, paragraph 2c.

11. Make sure that the insurer properly identified on your policies and endorsements, and that it is really a surplus line insurer in Illinois.  If it is an Illinois Domestic Surplus Line Insurer, there are a couple of special procedures.

12. The following filings have some special procedures associated with them.  Click on the item to learn more.
         Lloyd's Policies
         Multi-State Risks
         Mexican Auto / Tourist Policies

13. Illinois does not have a list of "approved" or "eligible" surplus line insurers.  Illinois is a "broker responsibility" state.  Information about which surplus line insurers can be used is in Section 445, Paragraph 1 of the surplus line law and in Regulation 2801.30.  The Director can issue an order declaring certain surplus line insurers ineligible in Illinois.

14. Illinois does not have an export list.  For every risk you place in the surplus line market, you must have 3 declinations from licensed insurers.  There is no specific form upon which you must record your declinations for Illinois risks.  For more specific information on declination requirements and your record-keeping responsibilities, See Regulation 2801.60 and Regulation 2801.50.  You do not need to file your declinations with the SLA.

15. Do not send checks with your document filings.  You will be billed monthly for stamping fees.

16. Tax forms and tax payments are due twice a year.  Just like with your personal IRS 1040 form, you must file your taxes, on time, even if you don't owe any money.  Although the SLA prepares and mails tax forms to members, if for some reason you do not receive it, it is still your responsibility to hunt it down and get it filed on time.  Tax statement forms and payments, by regulation, are based on filings with the Association during the preceding six month period.  Never manually alter these forms without first contacting the Association.

17. Do not send tax forms/payments to the SLA.  Tax forms and payments are sent to the Division of Insurance in Springfield.  The address is on your tax forms. On the flipside, do not send your SLA document filings to the Division of Insurance!

18. Did we already mention that you should READ the Procedures Manual?  Really.  It's short.  It's entertaining.  You'll laugh, you'll cry, you'll want to read it over and over again.  Your friends will be lining up to borrow it.