Bill > SB1289

This bill amends the Illinois Insurance Code, specifically modifying the definition of "home state" for surplus line insurance contracts. The key change involves how the home state is determined when multiple insureds are named on a single surplus line insurance contract. For an affiliated group (companies under common control), the home state will be the home state of the group member with the largest percentage of premium. For a non-affiliated group, if individual group members pay 100% of the premium from their own funds, each member's home state will be treated separately. If the group members do not individually pay the full premium, the home state will be determined for the group as a whole. The bill clarifies these definitions to provide more precise guidance for surplus line insurance producers when determining tax and regulatory requirements. Surplus line insurance refers to insurance procured from unauthorized insurers after diligent efforts to obtain coverage from authorized insurers have failed, typically for specialized or hard-to-place risks. The changes aim to standardize how home state is interpreted for complex insurance arrangements involving multiple insureds.

Business and Industry

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1289&GAID=18&DocTypeID=SB&SessionID=114&GA=104