Ill. Admin. Code tit. 50, § 2701.50 - Procurement of Policies or Contracts
a) The surplus line producer must exert
diligent effort to procure the policies or contracts required by the insureds
from insurers that are authorized to transact business in Illinois (Section 445
of the Code). Diligent effort by the surplus line producer shall be deemed to
have been exercised if the surplus line producer or the referring insurance
producer submits a risk to three or more authorized insurers that are engaged
in writing in Illinois the type of coverage sought, or if there are no insurers
actually engaged in writing that coverage, the risk shall be submitted to
insurers that, in the surplus line producer's or the insurance producer's
professional judgment, are the most likely to accept the risk.
b) Submission of insuring contracts to the
Surplus Line Association of Illinois constitutes a certification by the surplus
line producer or by the insurance producer who presented the risk to the
surplus line producer for placement as a surplus line risk that after diligent
effort the required insurance could not be procured from insurers that are
authorized to transact business in this State and that the procurement was
otherwise in accordance with the surplus line law.
c)
Licensed surplus line producers
may procure surplus line insurance from an unauthorized insurer for an exempt
commercial purchaser, as that term is defined in Section 445, without making
the required diligent effort to procure the insurance from authorized insurers
if:
1)
the producer has
disclosed to the exempt commercial purchaser that the insurance may or may not
be available from authorized insurers that may provide greater protection with
more regulatory oversight; and
2)
the exempt commercial purchaser
has subsequently, in writing, requested the producer to procure that insurance
from an unauthorized insurer. (Section 445(1.5 )(e) of the
Code)
Notes
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