Full Text of SB1573 99th General Assembly
SB1573sam001 99TH GENERAL ASSEMBLY | Sen. William R. Haine Filed: 3/10/2015
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| 1 | | AMENDMENT TO SENATE BILL 1573
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1573 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing Section 121-2.08 as follows:
| 6 | | (215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)
| 7 | | Sec. 121-2.08.
Transactions in this State involving | 8 | | contracts of
insurance independently procured directly from an | 9 | | unauthorized insurer by industrial insureds. | 10 | | (a) As used in this Section: | 11 | | "Captive insurance company" means any affiliated insurance | 12 | | company (including, but not limited to, any pure captive | 13 | | insurance company, association captive insurance company, | 14 | | sponsored captive insurance company, cell captive insurance | 15 | | company, industrial insured captive insurance company, risk | 16 | | retention group, or company approved and regulated as a captive |
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| 1 | | financial company by this State, any other state, or any other | 2 | | jurisdiction) or special purpose financial captive insurance | 3 | | company formed to insure the operational risks of the company's | 4 | | parent or affiliates, risks of a controlled unaffiliated | 5 | | business, or other risks approved by the captive insurance | 6 | | company's board or other regulatory body. | 7 | | "Exempt commercial purchaser" means exempt commercial | 8 | | purchaser as the term is defined in subsection (1) of Section | 9 | | 445 of this Code. | 10 | | "Home state" means home state as the term is defined in | 11 | | subsection (1) of Section 445 of this Code. | 12 | | "Industrial insured" means an insured:
| 13 | | (i) that procures the insurance of any risk or risks of | 14 | | the kinds specified in Classes 2 and 3 of Section 4 of this | 15 | | Code by use of the services of a full-time employee who is | 16 | | a qualified risk manager or the services of a regularly and
| 17 | | continuously retained consultant who is a qualified risk | 18 | | manager;
| 19 | | (ii) that procures the insurance directly from an | 20 | | unauthorized insurer without the services of an | 21 | | intermediary insurance producer; and
| 22 | | (iii) that is an exempt commercial purchaser whose home | 23 | | state is Illinois.
| 24 | | "Insurance producer" means insurance producer as the term | 25 | | is defined in Section 500-10 of this Code. | 26 | | "Qualified risk manager" means qualified risk manager as |
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| 1 | | the term is defined in subsection (1) of Section 445 of this | 2 | | Code. | 3 | | "Unauthorized insurer" means unauthorized insurer as the | 4 | | term is defined in subsection (1) of Section 445 of this Code. | 5 | | (b) For contracts of insurance effective January 1, 2015 or | 6 | | later, within 90 days after the effective date of each contract | 7 | | of insurance issued under this Section, the insured shall file | 8 | | a report with the Director by submitting the report to the | 9 | | Surplus Line Association of Illinois in writing or in a | 10 | | computer readable format and provide information as designated | 11 | | by the Surplus Line Association of Illinois. The information in | 12 | | the report shall be substantially similar to that required for | 13 | | surplus line submissions as described in subsection (5) of | 14 | | Section 445 of this Code. Where applicable, the report shall | 15 | | satisfy, with respect to the subject insurance, the reporting | 16 | | requirement of Section 12 of the Fire Investigation Act. | 17 | | (c) For contracts of insurance effective January 1, 2015 or | 18 | | later, within 30 days after filing the report, the insured | 19 | | shall pay to the Director for the use and benefit of the State | 20 | | a sum equal to the gross premium of the contract of insurance | 21 | | multiplied by the surplus line tax rate, as described in | 22 | | paragraph (3) of subsection (a) of Section 445 of this Code, | 23 | | and shall pay the fire marshal tax that would otherwise be due | 24 | | annually in March for insurance subject to tax under Section 12 | 25 | | of the Fire Investigation Act. For contracts of insurance | 26 | | effective January 1, 2015 or later, within 30 days after filing |
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| 1 | | the report, the insured shall pay to the Surplus Line | 2 | | Association of Illinois a countersigning fee that shall be | 3 | | assessed at the same rate charged to members pursuant to | 4 | | subsection (4) of Section 445.1 of this Code. | 5 | | (d) For contracts of insurance effective January 1, 2015 or | 6 | | later, the insured shall withhold the amount of the taxes and | 7 | | countersignature fee from the amount of premium charged by and | 8 | | otherwise payable to the insurer for the insurance. If the | 9 | | insured fails to withhold the tax and countersignature fee from | 10 | | the premium, then the insured shall be liable for the amounts | 11 | | thereof and shall pay the amounts as prescribed in subsection | 12 | | (c) of this Section. | 13 | | (e) Contracts of insurance with a captive insurance company | 14 | | shall not be subject to subsections (b) through (d) of this | 15 | | Section. | 16 | | (Source: P.A. 98-978, eff. 1-1-15 .)
| 17 | | Section 99. Effective date. This Act takes effect January | 18 | | 1, 2016.".
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