General Info
Illinois does not have a list of “approved” or “eligible” surplus line insurers. The federal NRRA law and applicable Illinois statutes (paragraph 5 of the Illinois Surplus Line Law) set forth the insurer eligibility requirements for surplus line risks.
Eligibility for U.S. Domiciled Surplus Line Insurers
Licensed surplus line producers may procure surplus line insurance from insurers domiciled in the U.S. if the insurer:
- is licensed to write the subject insurance in their domiciliary jurisdiction; and
- has at least $15 million in policyholder surplus; and
- has standards of solvency and management that are adequate for the protection of policyholders; and
- when an unauthorized insurer does not meet the above standards a licensed surplus line producer may, if necessary, use that insurer only if prior written warning is given to the insured that is substantially similar to the sample warning in Regulation 2701.Illustration A.
Eligibility for Alien Surplus Line Insurers
Licensed surplus line producers may procure surplus line insurance from insurers domiciled outside the U.S. if the insurer meets the requirements set forth above for insurers domiciled in the U.S., or if the insurer is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department (IID) of the National Association of Insurance Commissioners (NAIC).
The Director can issue an order declaring certain surplus line insurers ineligible in Illinois.