The Illinois state legislature has recently passed Senate Bill 1289 (SB 1289), changing the definition of “home state” as it concerns surplus lines insurance.
The key highlight is if more than one insured from a group that is not affiliated are named insureds on a single surplus line insurance contract, then “home state” means the following:
- With respect to an insured:
- the state in which an insured maintains its principal place of business or, in the case of an individual, the individual’s principal residence; or
- if 100% of the insured risk is located out of the state referred to in subitem (I), the state to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.
Please note that SB 1289 is currently awaiting the Governor’s signature for approval.
For any questions related to the above referenced legislative changes in Illinois, please contact Westmont Associates!