US - New surplus lines procedures in Illinois
Beginning 1 January 2016, brokers should submit surplus lines policies directly to the Surplus Line Association of Illinois. It will no longer be necessary to send policies to Lloyd’s Illinois, Inc. for recording.
Lloyd’s maintains a dual status in Illinois, meaning that it can transact insurance on a licensed and surplus lines basis. Currently, this requires that all Lloyd’s surplus lines transactions in Illinois are sent to the Lloyd’s Illinois office to confirm that the underwriter intends to write the business on a surplus lines basis and for countersigning. Lloyd’s Illinois then forwards the documentation to the Surplus Line Association of Illinois (Illinois SLA) for processing.
With effect from 1 January 2016, regardless of the effective date of the transaction, Lloyd’s Illinois will no longer be required to process surplus lines policies and endorsements. Instead, brokers will need to file surplus lines policies directly to the Illinois SLA. This brings the surplus lines procedure for Illinois in line with Lloyd’s operations in all other states, including Kentucky and the US Virgin Islands, where Lloyd’s also maintains a dual status.
It is important to note that Lloyd’s licensed/admitted status and the related procedures in Illinois are unchanged. Underwriters at Lloyd’s may continue to write business on a licensed basis in accordance with all existing licensed business regulatory requirements.