|SB1573 Engrossed||LRB099 05215 MLM 25249 b|
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Illinois Insurance Code is amended by
changing Section 121-2.08 as follows:
(215 ILCS 5/121-2.08)
(from Ch. 73, par. 733-2.08)
Transactions in this State involving
insurance independently procured directly from an
unauthorized insurer by industrial insureds.
(a) As used in this Section:
"Captive insurance company" means any affiliated insurance
company (including, but not limited to, any pure captive
insurance company, association captive insurance company,
sponsored captive insurance company, cell captive insurance
company, industrial insured captive insurance company, risk
retention group, or company approved and regulated as a captive
financial company by this State, any other state, or any other
jurisdiction) or special purpose financial captive insurance
company formed to insure the operational risks of the company's
parent or affiliates, risks of a controlled unaffiliated
business, or other risks approved by the captive insurance
company's board or other regulatory body.
"Exempt commercial purchaser" means exempt commercial
|SB1573 Engrossed||- 2 -||LRB099 05215 MLM 25249 b|
purchaser as the term is defined in subsection (1) of Section
445 of this Code.
"Home state" means home state as the term is defined in
subsection (1) of Section 445 of this Code.
"Industrial insured" means an insured:
(i) that procures the insurance of any risk or risks of
the kinds specified in Classes 2 and 3 of Section 4 of this
Code by use of the services of a full-time employee who is
a qualified risk manager or the services of a regularly and
continuously retained consultant who is a qualified risk
(ii) that procures the insurance directly from an
unauthorized insurer without the services of an
intermediary insurance producer; and
(iii) that is an exempt commercial purchaser whose home
state is Illinois.
"Insurance producer" means insurance producer as the term
is defined in Section 500-10 of this Code.
"Qualified risk manager" means qualified risk manager as
the term is defined in subsection (1) of Section 445 of this
"Unauthorized insurer" means unauthorized insurer as the
term is defined in subsection (1) of Section 445 of this Code.
(b) For contracts of insurance effective January 1, 2015 or
later, within 90 days after the effective date of each contract
of insurance issued under this Section, the insured shall file
|SB1573 Engrossed||- 3 -||LRB099 05215 MLM 25249 b|
a report with the Director by submitting the report to the
Surplus Line Association of Illinois in writing or in a
computer readable format and provide information as designated
by the Surplus Line Association of Illinois. The information in
the report shall be substantially similar to that required for
surplus line submissions as described in subsection (5) of
Section 445 of this Code. Where applicable, the report shall
satisfy, with respect to the subject insurance, the reporting
requirement of Section 12 of the Fire Investigation Act.
(c) For contracts of insurance effective January 1, 2015 or
later, within 30 days after filing the report, the insured
shall pay to the Director for the use and benefit of the State
a sum equal to the gross premium of the contract of insurance
multiplied by the surplus line tax rate, as described in
paragraph (3) of subsection (a) of Section 445 of this Code,
and shall pay the fire marshal tax that would otherwise be due
annually in March for insurance subject to tax under Section 12
of the Fire Investigation Act. For contracts of insurance
effective January 1, 2015 or later, within 30 days after filing
the report, the insured shall pay to the Surplus Line
Association of Illinois a countersigning fee that shall be
assessed at the same rate charged to members pursuant to
subsection (4) of Section 445.1 of this Code.
(d) For contracts of insurance effective January 1, 2015 or
later, the insured shall withhold the amount of the taxes and
countersignature fee from the amount of premium charged by and
|SB1573 Engrossed||- 4 -||LRB099 05215 MLM 25249 b|
otherwise payable to the insurer for the insurance. If the
insured fails to withhold the tax and countersignature fee from
the premium, then the insured shall be liable for the amounts
thereof and shall pay the amounts as prescribed in subsection
(c) of this Section.
(e) Contracts of insurance with a captive insurance company
shall not be subject to subsections (b) through (d) of this
(Source: P.A. 98-978, eff. 1-1-15
This Act takes effect January