IL SB1573

Amends Illinois Insurance Code Section 121-2.08 to add definition of "captive insurance company" including pure captive, association captive, sponsored captive, cell captive, industrial insured captive, risk retention groups, and special purpose financial captive insurance companies.

Requires industrial insureds procuring insurance from unauthorized insurers to file a report with the Director through the Surplus Line Association of Illinois within 90 days of contract effective date for policies effective January 1, 2015 or later.

Mandates insureds pay surplus line tax (based on gross premium multiplied by surplus line tax rate) and fire marshal tax within 30 days of filing the report, plus a countersigning fee to the Surplus Line Association of Illinois.

Allows insureds to withhold taxes and countersignature fees from premiums otherwise payable to the insurer; if not withheld, the insured becomes liable for these amounts.

Exempts contracts of insurance with captive insurance companies from the reporting, tax, and fee requirements of subsections (b) through (d).