Summary of Filing Procedures & Surplus Line Rules in Illinois

Illinois Surplus Line Paper Filing Information

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

Paper-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 using the binder (read the special procedures for binder filing under #3, below).

2. When filing a policy or endorsement, the complete original policy or endorsement (including any non-premium-bearing endorsement) must be filed along with at least one complete copy that we will keep.  Submit policies and endorsements as quickly as possible.  Are you missing the original?  Click here.

3. When filing 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).  The binder must also have a notation of the aggregate coverage limits for the policy.  Submit the original binder and at least one complete copy that we will keep.  When the policy becomes available, it's a good idea to attach a copy of the stamped binder before delivering it to the insured.

4. Use the SLA Verification Slip as a cover sheet / transmittal form when filing.  Send in two copies. Make sure you know your member number when completing the verification slip. Do not use your license number.

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.  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 Department of Insurance requires that the binder contain service of suit wording.  For information about how to include this wording on binders, click here.  Endorsements do not need service of suit wording.

7. Taxes and stamping fees must be shown on declarations page.  They 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.

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 is properly identified on your policies and endorsements, and that it really is 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.  The Association does not have the facility to assist with market searches.

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 returns and payments, by regulation, are based on filings with the Association during the preceding six month period (for Surplus Line tax) or twelve month period (for Fire Marshal tax).  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 Department of Insurance in Springfield.  The address is on your tax forms. On the flipside, do not send your SLA document filings to the Department 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.