Illinois General Assembly - Full Text of HB1577
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Full Text of HB1577  97th General Assembly


Sen. William R. Haine

Filed: 11/3/2011





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2    AMENDMENT NO. ______. Amend House Bill 1577, AS AMENDED, by
3replacing everything after the enacting clause with the
5    "Section 5. The Illinois Insurance Code is amended by
6changing Sections 35A-15, 445, and 445a as follows:
7    (215 ILCS 5/35A-15)
8    Sec. 35A-15. Company action level event.
9    (a) A company action level event means any of the following
11        (1) The filing of an RBC Report by an insurer that
12    indicates that:
13            (A) the insurer's total adjusted capital is
14        greater than or equal to its regulatory action level
15        RBC, but less than its company action level RBC; or
16            (B) the The insurer, if a life, health, or life and



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1        health insurer, has total adjusted capital that is
2        greater than or equal to its company action level RBC,
3        but less than the product of its authorized control
4        level RBC and 2.5 and has a negative trend; or .
5            (C) the insurer, if a property and casualty
6        insurer, has total adjusted capital that is greater
7        than or equal to its company action level RBC, but less
8        than the product of its authorized control level RBC
9        and 3.0 and triggers the trend test determined in
10        accordance with the trend test calculation included in
11        the property and casualty RBC Instructions.
12        (2) The notification by the Director to the insurer of
13    an Adjusted RBC Report that indicates an event described in
14    paragraph (1), provided the insurer does not challenge the
15    Adjusted RBC Report under Section 35A-35.
16        (3) The notification by the Director to the insurer
17    that the Director has, after a hearing, rejected the
18    insurer's challenge under Section 35A-35 to an Adjusted RBC
19    Report that indicates the event described in paragraph (1).
20    (b) In the event of a company action level event, the
21insurer shall prepare and submit to the Director an RBC Plan
22that does all of the following:
23        (1) Identifies the conditions that contribute to the
24    company action level event.
25        (2) Contains proposed corrective actions that the
26    insurer intends to take and that are expected to result in



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1    the elimination of the company action level event. A health
2    organization is not prohibited from proposing recognition
3    of a parental guarantee or a letter of credit to eliminate
4    the company action level event; however the Director shall,
5    at his discretion, determine whether or the extent to which
6    the proposed parental guarantee or letter of credit is an
7    acceptable part of a satisfactory RBC Plan or Revised RBC
8    Plan.
9        (3) Provides projections of the insurer's financial
10    results in the current year and at least the 4 succeeding
11    years, both in the absence of proposed corrective actions
12    and giving effect to the proposed corrective actions,
13    including projections of statutory operating income, net
14    income, capital, and surplus. The projections for both new
15    and renewal business may include separate projections for
16    each major line of business and separately identify each
17    significant income, expense, and benefit component.
18        (4) Identifies the key assumptions affecting the
19    insurer's projections and the sensitivity of the
20    projections to the assumptions.
21        (5) Identifies the quality of, and problems associated
22    with, the insurer's business including, but not limited to,
23    its assets, anticipated business growth and associated
24    surplus strain, extraordinary exposure to risk, mix of
25    business, and use of reinsurance, if any, in each case.
26    (c) The insurer shall submit the RBC Plan to the Director



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1within 45 days after the company action level event occurs or
2within 45 days after the Director notifies the insurer that the
3Director has, after a hearing, rejected its challenge under
4Section 35A-35 to an Adjusted RBC Report.
5    (d) Within 60 days after an insurer submits an RBC Plan to
6the Director, the Director shall notify the insurer whether the
7RBC Plan shall be implemented or is, in the judgment of the
8Director, unsatisfactory. If the Director determines the RBC
9Plan is unsatisfactory, the notification to the insurer shall
10set forth the reasons for the determination and may set forth
11proposed revisions that will render the RBC Plan satisfactory
12in the judgment of the Director. Upon notification from the
13Director, the insurer shall prepare a Revised RBC Plan, which
14may incorporate by reference any revisions proposed by the
15Director. The insurer shall submit the Revised RBC Plan to the
16Director within 45 days after the Director notifies the insurer
17that the RBC Plan is unsatisfactory or within 45 days after the
18Director notifies the insurer that the Director has, after a
19hearing, rejected its challenge under Section 35A-35 to the
20determination that the RBC Plan is unsatisfactory.
21    (e) In the event the Director notifies an insurer that its
22RBC Plan or Revised RBC Plan is unsatisfactory, the Director
23may, at the Director's discretion and subject to the insurer's
24right to a hearing under Section 35A-35, specify in the
25notification that the notification constitutes a regulatory
26action level event.



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1    (f) Every domestic insurer that files an RBC Plan or
2Revised RBC Plan with the Director shall file a copy of the RBC
3Plan or Revised RBC Plan with the chief insurance regulatory
4official in any state in which the insurer is authorized to do
5business if that state has a law substantially similar to the
6confidentiality provisions in subsection (a) of Section 35A-50
7and if that official requests in writing a copy of the plan.
8The insurer shall file a copy of the RBC Plan or Revised RBC
9Plan in that state no later than the later of 15 days after
10receiving the written request for the copy or the date on which
11the RBC Plan or Revised RBC Plan is filed under subsection (c)
12or (d) of this Section.
13(Source: P.A. 91-549, eff. 8-14-99.)
14    (215 ILCS 5/445)  (from Ch. 73, par. 1057)
15    Sec. 445. Surplus line.
16    (1) Definitions. For the purposes of this Section: Surplus
17line defined; surplus line insurer requirements. "Surplus line
18insurance" means insurance on an Illinois risk of the kinds
19specified in Classes 2 and 3 of Section 4 of this Code procured
20from an unauthorized insurer after the insurance producer
21representing the insured or the surplus line producer is
22unable, after diligent effort, to procure said insurance from
23authorized insurers.
24    "Affiliate" means, with respect to an insured, any entity
25that controls, is controlled by, or is under common control



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1with the insured. For the purpose of this definition, an entity
2has control over another entity if:
3        (A) the entity directly or indirectly or acting through
4    one or more other persons owns, controls, or has the power
5    to vote 25% or more of any class of voting securities of
6    the other entity; or
7        (B) the entity controls in any manner the election of a
8    majority of the directors or trustees of the other entity.
9    "Affiliated group" means any group of entities that are all
11    "Authorized insurer" means an insurer that holds a
12certificate of authority issued by the Director but, for the
13purposes of this Section, does not include a domestic surplus
14line insurer as defined in Section 445a or any residual market
16    "Exempt commercial purchaser" means any person purchasing
17commercial insurance that, at the time of placement, meets the
18following requirements:
19        (A) The person employs or retains a qualified risk
20    manager to negotiate insurance coverage.
21        (B) The person has paid aggregate nationwide
22    commercial property and casualty insurance premiums in
23    excess of $100,000 in the immediately preceding 12 months.
24        (C) The person meets at least one of the following
25    criteria:
26            (I) The person possesses a net worth in excess of



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1        $20,000,000, as such amount is adjusted pursuant to the
2        provision in this definition concerning percentage
3        change.
4            (II) The person generates annual revenues in
5        excess of $50,000,000, as such amount is adjusted
6        pursuant to the provision in this definition
7        concerning percentage change.
8            (III) The person employs more than 500 full-time or
9        full-time equivalent employees per individual insured
10        or is a member of an affiliated group employing more
11        than 1,000 employees in the aggregate.
12            (IV) The person is a not-for-profit organization
13        or public entity generating annual budgeted
14        expenditures of at least $30,000,000, as such amount is
15        adjusted pursuant to the provision in this definition
16        concerning percentage change.
17            (V) The person is a municipality with a population
18        in excess of 50,000 persons.
19    Effective on January 1, 2015 and each fifth January 1
20occurring thereafter, the amounts in subitems (I), (II), and
21(IV) of item (C) of this definition shall be adjusted to
22reflect the percentage change for such 5-year period in the
23Consumer Price Index for All Urban Consumers published by the
24Bureau of Labor Statistics of the Department of Labor.
25    "Home state" means the following:
26        (A) With respect to an insured, except as provided in



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1    item (B) of this definition:
2            (I) the State in which an insured maintains its
3        principal place of business or, in the case of an
4        individual, the individual's principal residence; or
5            (II) if 100% of the insured risk is located out of
6        the State referred to in subitem (I), the State to
7        which the greatest percentage of the insured's taxable
8        premium for that insurance contract is allocated.
9        (B) If more than one insured from an affiliated group
10    are named insureds on a single surplus line insurance
11    contract, then "home State" means the home State, as
12    determined pursuant to item (A) of this definition, of the
13    member of the affiliated group that has the largest
14    percentage of premium attributed to it under such insurance
15    contract.
16    "Multi-State risk" means a risk with insured exposures in
17more than one State.
18    "NAIC" means the National Association of Insurance
19Commissioners or any successor entity.
20    "Qualified risk manager" means, with respect to a
21policyholder of commercial insurance, a person who meets all of
22the following requirements:
23        (A) The person is an employee of, or third-party
24    consultant retained by, the commercial policyholder.
25        (B) The person provides skilled services in loss
26    prevention, loss reduction, or risk and insurance coverage



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1    analysis, and purchase of insurance.
2        (C) With regard to the person:
3            (I) the person has:
4                (a) a bachelor's degree or higher from an
5            accredited college or university in risk
6            management, business administration, finance,
7            economics, or any other field determined by the
8            Director or his designee to demonstrate minimum
9            competence in risk management; and
10                (b) the following:
11                    (i) three years of experience in risk
12                financing, claims administration, loss
13                prevention, risk and insurance analysis, or
14                purchasing commercial lines of insurance; or
15                    (ii) alternatively has:
16                        (AA) a designation as a Chartered
17                    Property and Casualty Underwriter (in this
18                    subparagraph (ii) referred to as "CPCU")
19                    issued by the American Institute for
20                    CPCU/Insurance Institute of America;
21                        (BB) a designation as an Associate in
22                    Risk Management (ARM) issued by the
23                    American Institute for CPCU/Insurance
24                    Institute of America;
25                        (CC) a designation as Certified Risk
26                    Manager (CRM) issued by the National



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1                    Alliance for Insurance Education &
2                    Research;
3                        (DD) a designation as a RIMS Fellow
4                    (RF) issued by the Global Risk Management
5                    Institute; or
6                        (EE) any other designation,
7                    certification, or license determined by
8                    the Director or his designee to
9                    demonstrate minimum competency in risk
10                    management;
11            (II) the person has:
12                (a) at least 7 years of experience in risk
13            financing, claims administration, loss prevention,
14            risk and insurance coverage analysis, or
15            purchasing commercial lines of insurance; and
16                (b) has any one of the designations specified
17            in subparagraph (ii) of paragraph (b);
18            (III) the person has at least 10 years of
19        experience in risk financing, claims administration,
20        loss prevention, risk and insurance coverage analysis,
21        or purchasing commercial lines of insurance; or
22            (IV) the person has a graduate degree from an
23        accredited college or university in risk management,
24        business administration, finance, economics, or any
25        other field determined by the Director or his or her
26        designee to demonstrate minimum competence in risk



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1        management.
2    "Residual market mechanism" means an association,
3organization, or other entity described in Article XXXIII of
4this Code or Section 7-501 of the Illinois Vehicle Code or any
5similar association, organization, or other entity.
6    "State" means any State of the United States, the District
7of Columbia, the Commonwealth of Puerto Rico, Guam, the
8Northern Mariana Islands, the Virgin Islands, and American
10    "Surplus line insurance" means insurance on a risk:
11        (A) of the kinds specified in Classes 2 and 3 of
12    Section 4 of this Code; and
13        (B) that is procured from an unauthorized insurer after
14    the insurance producer representing the insured or the
15    surplus line producer is unable, after diligent effort, to
16    procure the insurance from authorized insurers; and
17        (C) where Illinois is the home state of the insured,
18    for policies effective, renewed or extended on July 21,
19    2011 or later and for multiyear policies upon the policy
20    anniversary that falls on or after July 21, 2011; and
21        (D) that is located in Illinois, for policies effective
22    prior to July 21, 2011.
23    "Unauthorized insurer" means an insurer that does not hold
24a valid certificate of authority issued by the Director but,
25for the purposes of this Section, shall also include a domestic
26surplus line insurer as defined in Section 445a.



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1    (1.5) Procuring surplus line insurance; surplus line
2insurer requirements.
3    (a) Insurance producers may procure surplus line insurance
4only if licensed as a surplus line producer under this Section.
5    (b) Licensed surplus line producers and may procure surplus
6line that insurance only from an unauthorized insurer domiciled
7in the United States only if the insurer:
8        (i) is permitted in its domiciliary jurisdiction to
9    write the type of insurance involved; and
10        (ii) has, (a) that based upon information available to
11    the surplus line producer, has a policyholders surplus of
12    not less than $15,000,000 determined in accordance with the
13    laws of its domiciliary jurisdiction accounting rules that
14    are applicable to authorized insurers; and
15        (iii) (b) that has standards of solvency and management
16    that are adequate for the protection of policyholders. ; and
17    Where (c) where an unauthorized insurer does not meet the
18standards set forth in (ii) (a) and (iii) (b) above, a surplus
19line producer may, if necessary, procure insurance from that
20insurer only if prior written warning of such fact or condition
21is given to the insured by the insurance producer or surplus
22line producer.
23    (c) Licensed surplus line producers may procure surplus
24line insurance from an unauthorized insurer domiciled outside
25of the United States only if the insurer is listed on the
26Quarterly Listing of Alien Insurers maintained by the



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1International Insurers Department of the NAIC. The Director
2shall make the Quarterly Listing of Alien Insurers available to
3surplus line producers without charge.
4    (d) Insurance producers shall not procure from an
5unauthorized insurer an insurance policy:
6        (i) that is designed to satisfy the proof of financial
7    responsibility and insurance requirements in any Illinois
8    law where the law requires that the proof of insurance is
9    issued by an authorized insurer or residual market
10    mechanism;
11        (ii) that covers the risk of accidental injury to
12    employees arising out of and in the course of employment
13    according to the provisions of the Workers' Compensation
14    Act; or
15        (iii) that insures any Illinois personal lines risk, as
16    defined in subsection (a), (b), or (c) of Section 143.13 of
17    this Code, that is eligible for residual market mechanism
18    coverage, unless the insured or prospective insured
19    requests limits of liability greater than the limits
20    provided by the residual market mechanism. In the course of
21    making a diligent effort to procure insurance from
22    authorized insurers, an insurance producer shall not be
23    required to submit a risk to a residual market mechanism
24    when the risk is not eligible for coverage or exceeds the
25    limits available in the residual market mechanism.
26    Where there is an insurance policy issued by an authorized



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1insurer or residual market mechanism insuring a risk described
2in item (i), (ii), or (iii) above, nothing in this paragraph
3shall be construed to prohibit a surplus line producer from
4procuring from an unauthorized insurer a policy insuring the
5risk on an excess or umbrella basis where the excess or
6umbrella policy is written over one or more underlying
8    (e) Licensed surplus line producers may procure surplus
9line insurance from an unauthorized insurer for an exempt
10commercial purchaser without making the required diligent
11effort to procure the insurance from authorized insurers if:
12        (i) the producer has disclosed to the exempt commercial
13    purchaser that such insurance may or may not be available
14    from authorized insurers that may provide greater
15    protection with more regulatory oversight; and
16        (ii) the exempt commercial purchaser has subsequently
17    in writing requested the producer to procure such insurance
18    from an unauthorized insurer.
19    (2) Surplus line producer; license. Any licensed producer
20who is a resident of this State, or any nonresident who
21qualifies under Section 500-40, may be licensed as a surplus
22line producer upon: (a) completing a prelicensing course of
23study. The course provided for by this Section shall be
24conducted under rules and regulations prescribed by the
25Director. The Director may administer the course or may make
26arrangements, including contracting with an outside



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1educational service, for administering the course and
2collecting the non-refundable application fee provided for in
3this subsection. Any charges assessed by the Director or the
4educational service for administering the course shall be paid
5directly by the individual applicants. Each applicant required
6to take the course shall enclose with the application a
7non-refundable $20 application fee payable to the Director plus
8a separate course administration fee. An applicant who fails to
9appear for the course as scheduled, or appears but fails to
10complete the course, shall not be entitled to any refund, and
11shall be required to submit a new request to attend the course
12together with all the requisite fees before being rescheduled
13for another course at a later date; and (b) payment of an
14annual license fee of $400; and (c) procurement of the surety
15bond required in subsection (4) of this Section.
16    A surplus line producer so licensed shall keep a separate
17account of the business transacted thereunder which shall be
18open at all times to the inspection of the Director or his
20    No later than July 21, 2012, the State of Illinois shall
21participate in the national insurance producer database of the
22NAIC, or any other equivalent uniform national database, for
23the licensure of surplus line producers and the renewal of such
25    The prelicensing course of study requirement in (a) above
26shall not apply to insurance producers who were licensed under



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1the Illinois surplus line law on or before January 1, 2002.
2    (3) Taxes and reports.
3        (a) Surplus line tax and penalty for late payment.
4        The surplus line tax rate for a surplus line insurance
5    policy or contract is determined as follows:
6            (i) 3% for policies or contracts with an effective
7        date prior to July 1, 2003;
8            (ii) 3.5% for policies or contracts with an
9        effective date of July 1, 2003 or later.
10        A surplus line producer shall file with the Director on
11    or before February 1 and August 1 of each year a report in
12    the form prescribed by the Director on all surplus line
13    insurance procured from unauthorized insurers during the
14    preceding 6 month period ending December 31 or June 30
15    respectively, and on the filing of such report shall pay to
16    the Director for the use and benefit of the State a sum
17    equal to the surplus line tax rate multiplied by 3.5% of
18    the gross premiums less returned premiums upon all surplus
19    line insurance submitted to the Surplus Line Association of
20    Illinois procured or cancelled during the preceding 6
21    months.
22        Any surplus line producer who fails to pay the full
23    amount due under this subsection is liable, in addition to
24    the amount due, for such penalty and interest charges as
25    are provided for under Section 412 of this Code. The
26    Director, through the Attorney General, may institute an



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1    action in the name of the People of the State of Illinois,
2    in any court of competent jurisdiction, for the recovery of
3    the amount of such taxes and penalties due, and prosecute
4    the same to final judgment, and take such steps as are
5    necessary to collect the same.
6        (b) Fire Marshal Tax.
7        Each surplus line producer shall file with the Director
8    on or before March 31 of each year a report in the form
9    prescribed by the Director on all fire insurance procured
10    from unauthorized insurers and submitted to the Surplus
11    Line Association of Illinois subject to tax under Section
12    12 of the Fire Investigation Act and shall pay to the
13    Director the fire marshal tax required thereunder.
14        (c) Taxes and fees charged to insured. The taxes
15    imposed under this subsection and the countersigning fees
16    charged by the Surplus Line Association of Illinois may be
17    charged to and collected from surplus line insureds.
18    (4) (Blank). Bond. Each surplus line producer, as a
19condition to receiving a surplus line producer's license, shall
20execute and deliver to the Director a surety bond to the People
21of the State in the penal sum of $20,000, with a surety which
22is authorized to transact business in this State, conditioned
23that the surplus line producer will pay to the Director the
24tax, interest and penalties levied under subsection (3) of this
26    (5) Submission of documents to Surplus Line Association of



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1Illinois. A surplus line producer shall submit every insurance
2contract issued under his or her license to the Surplus Line
3Association of Illinois for recording and countersignature.
4The submission and countersignature may be effected through
5electronic means. The submission shall set forth:
6        (a) the name of the insured;
7        (b) the description and location of the insured
8    property or risk;
9        (c) the amount insured;
10        (d) the gross premiums charged or returned;
11        (e) the name of the unauthorized insurer from whom
12    coverage has been procured;
13        (f) the kind or kinds of insurance procured; and
14        (g) amount of premium subject to tax required by
15    Section 12 of the Fire Investigation Act.
16    Proposals, endorsements, and other documents which are
17incidental to the insurance but which do not affect the premium
18charged are exempted from filing and countersignature.
19    The submission of insuring contracts to the Surplus Line
20Association of Illinois constitutes a certification by the
21surplus line producer or by the insurance producer who
22presented the risk to the surplus line producer for placement
23as a surplus line risk that after diligent effort the required
24insurance could not be procured from authorized insurers and
25that such procurement was otherwise in accordance with the
26surplus line law.



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1    (6) Countersignature required. It shall be unlawful for an
2insurance producer to deliver any unauthorized insurer
3contract unless such insurance contract is countersigned by the
4Surplus Line Association of Illinois.
5    (7) Inspection of records. A surplus line producer shall
6maintain separate records of the business transacted under his
7or her license, including complete copies of surplus line
8insurance contracts maintained on paper or by electronic means,
9which records shall be open at all times for inspection by the
10Director and by the Surplus Line Association of Illinois.
11    (8) Violations and penalties. The Director may suspend or
12revoke or refuse to renew a surplus line producer license for
13any violation of this Code. In addition to or in lieu of
14suspension or revocation, the Director may subject a surplus
15line producer to a civil penalty of up to $2,000 for each cause
16for suspension or revocation. Such penalty is enforceable under
17subsection (5) of Section 403A of this Code.
18    (9) Director may declare insurer ineligible. If the
19Director determines that the further assumption of risks might
20be hazardous to the policyholders of an unauthorized insurer,
21the Director may order the Surplus Line Association of Illinois
22not to countersign insurance contracts evidencing insurance in
23such insurer and order surplus line producers to cease
24procuring insurance from such insurer.
25    (10) Service of process upon Director. Insurance contracts
26delivered under this Section from unauthorized insurers, other



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1than domestic surplus line insurers as defined in Section 445a,
2shall contain a provision designating the Director and his
3successors in office the true and lawful attorney of the
4insurer upon whom may be served all lawful process in any
5action, suit or proceeding arising out of such insurance.
6Service of process made upon the Director to be valid hereunder
7must state the name of the insured, the name of the
8unauthorized insurer and identify the contract of insurance.
9The Director at his option is authorized to forward a copy of
10the process to the Surplus Line Association of Illinois for
11delivery to the unauthorized insurer or the Director may
12deliver the process to the unauthorized insurer by other means
13which he considers to be reasonably prompt and certain.
14    (10.5) Insurance contracts delivered under this Section
15from unauthorized insurers, other than domestic surplus line
16insurers as defined in Section 445a, shall have stamped or
17imprinted on the first page thereof in not less than 12-pt.
18bold face type the following legend: "Notice to Policyholder:
19This contract is issued, pursuant to Section 445 of the
20Illinois Insurance Code, by a company not authorized and
21licensed to transact business in Illinois and as such is not
22covered by the Illinois Insurance Guaranty Fund." Insurance
23contracts delivered under this Section from domestic surplus
24line insurers as defined in Section 445a shall have stamped or
25imprinted on the first page thereof in not less than 12-pt.
26bold face type the following legend: "Notice to Policyholder:



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1This contract is issued by a domestic surplus line insurer, as
2defined in Section 445a of the Illinois Insurance Code,
3pursuant to Section 445, and as such is not covered by the
4Illinois Insurance Guaranty Fund."
5    (11) The Illinois Surplus Line law does not apply to
6insurance of property and operations of railroads or aircraft
7engaged in interstate or foreign commerce, insurance of
8vessels, crafts or hulls, cargoes, marine builder's risks,
9marine protection and indemnity, or other risks including
10strikes and war risks insured under ocean or wet marine forms
11of policies.
12    (12) Surplus line insurance procured under this Section,
13including insurance procured from a domestic surplus line
14insurer, is not subject to the provisions of the Illinois
15Insurance Code other than Sections 123, 123.1, 401, 401.1, 402,
16403, 403A, 408, 412, 445, 445.1, 445.2, 445.3, 445.4, and all
17of the provisions of Article XXXI to the extent that the
18provisions of Article XXXI are not inconsistent with the terms
19of this Act.
20(Source: P.A. 92-386, eff. 1-1-02; 93-29, eff. 6-20-03; 93-32,
21eff. 7-1-03; 93-876, eff. 8-6-04.)
22    (215 ILCS 5/445a)
23    Sec. 445a. Domestic surplus line insurer.
24    (a) A domestic insurer possessing policyholder surplus of
25at least $15,000,000 may pursuant to a resolution by its board



09700HB1577sam006- 22 -LRB097 09798 RPM 59455 a

1of directors, and with the written approval of the Director, be
2designated as a "domestic surplus line insurer".
3    (b) A domestic surplus line insurer may only insure in this
4State an Illinois risk only if procured from a surplus line
5producer pursuant to Section 445 of this Code.
6    (c) A domestic surplus line insurer must agree not to issue
7a policy designed to satisfy the financial responsibility
8requirements of the Illinois Vehicle Code, the Workers'
9Compensation Act, or the Workers' Occupational Diseases Act. A
10domestic surplus line insurer is not subject to the provisions
11of Articles XXXIII, XXXIII 1/2, XXXIV, XXXVIIIA, Section 468,
12or Section 478.1 of this Code.
13    (d) For the purposes of the federal Nonadmitted and
14Reinsurance Reform Act of 2010 (15 USC 8201 et seq.), a
15domestic surplus line insurer shall be considered a nonadmitted
16insurer, as the term is defined in the Act, with respect to
17risks insured in this State.
18(Source: P.A. 90-794, eff. 8-14-98.)
19    Section 97. Severability. The provisions of this Act are
20severable under Section 1.31 of the Statute on Statutes.
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".