SB1753 Summary

• Amends Illinois Insurance Code Section 445 to expand surplus line producer eligibility by allowing procurement from unauthorized insurers domiciled in any state (not limited to United States only) and from alien insurers meeting specified financial standards or listed on the NAIC Quarterly Listing of Alien Insurers.

• Creates exemptions from diligent effort requirements for surplus line producers to procure insurance from authorized insurers in three situations: exempt commercial purchasers with written requests, commercial wholesale transactions referred by non-affiliated Illinois-licensed producers, and master policy and program business contracts (allowing annual rather than per-contract diligent effort).

• Adds new definitions including "master policy," "personal lines insurance," "premium," "program business," and "taxable premium" to clarify surplus line insurance terminology and scope.

• Modifies surplus line tax reporting requirements and fire marshal tax filing deadline from March 31 to February 1, and changes the Surplus Line Association of Illinois duties from "countersigning" to "recording" contracts.

• Includes good faith determination safe harbor provision allowing the Director to waive penalties and interest for producers who incorrectly determined a contract's home state and paid taxes to another state in good faith.

• Effective January 1, 2022.