Are there any restrictions on writing personal lines insurance in the surplus line market?
Paragraph 1.5(d)(iii) of the Illinois Surplus Line Law states that a producer cannot procure surplus line insurance 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.
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.