Bill Amendment: IL SB1573 | 2015-2016 | 99th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: INS CD-INDUSTRIAL INSUREDS
Status: 2015-04-21 - Referred to Rules Committee [SB1573 Detail]
Download: Illinois-2015-SB1573-Senate_Amendment_001.html
Bill Title: INS CD-INDUSTRIAL INSUREDS
Status: 2015-04-21 - Referred to Rules Committee [SB1573 Detail]
Download: Illinois-2015-SB1573-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 1573
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2 | AMENDMENT NO. ______. Amend Senate Bill 1573 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Insurance Code is amended by | ||||||
5 | changing Section 121-2.08 as follows:
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6 | (215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)
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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:
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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
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17 | continuously retained consultant who is a qualified risk | ||||||
18 | manager;
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19 | (ii) that procures the insurance directly from an | ||||||
20 | unauthorized insurer without the services of an | ||||||
21 | intermediary insurance producer; and
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22 | (iii) that is an exempt commercial purchaser whose home | ||||||
23 | state is Illinois.
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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 .)
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17 | Section 99. Effective date. This Act takes effect January | ||||||
18 | 1, 2016.".
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