FAQs:Insurer

Short answer — you don’t. There is no “approved list”, “eligible list” or “white list” in Illinois. An Illinois licensed surplus line producer may use any surplus line company domiciled in the U.S. that is permitted by its domiciliary jurisdiction to write the type of coverage sought, has $15,000,000 in policyholders surplus and has standards of solvency and management that are adequate for the protection of the policyholders.  An Illinois licensed surplus line producer may use any surplus line company domiciled outside the U.S. that is on the NAIC’s Quarterly Listing of Alien Insurers, or that meets the requirements above for insurers domiciled in the U.S. It is the licensee’s responsibility to determine that a company meets these standards which are contained in paragraph 1.5 of Section 445 of the Illinois Insurance Code and in Regulation 2701.30.

If at any time the Director determines that the further assumption of risks by a surplus line insurer might be hazardous to Illinois policyholders, he can declare that insurer ineligible to write further business (including any endorsements, certificates, or any other instruments that entail additional premium) in Illinois, pursuant to paragraph 9 of Section 445 of the Illinois Insurance Code. Once this order has been issued, surplus line producers may not procure insurance from the insurer and the Surplus Line Association of Illinois may not stamp policies or endorsements (return premium endorsements may be stamped) issued by the insurer.