Tax Rate
3.50%
Filing Frequency
semi-annual
Semi-annual periods: January 1-June 30 and July 1-December 31. File through SLAI Electronic Filing System (EFS). Zero premium tax statements still required even when no premium endorsements.
Filing Method
portal
Format: electronic
Requirements
Licensed surplus line producers must verify insurer eligibility. Foreign insurers: (1) Permitted in domiciliary jurisdiction; (2) $15M+ surplus; (3) Adequate solvency/management. Alien insurers: Meet foreign requirements OR NAIC Quarterly Listing. Warning required for non-compliant insurers.
Filing Methods
- online_portal
Filing Steps
- 1All surplus lines contracts must have notice stamped on first page in 12pt bold
- 2Notice text: "Notice to Policyholder: This contract is issued, pursuant to Section 445 of the Illinois Insurance Code, by a company not authorized and licensed to transact business in Illinois and as such is not covered by the Illinois Insurance Guaranty Fund."
- 3Zero premium endorsements exempt from filing but zero premium semi-annual tax statements still required
- 4Proposals and endorsements not affecting premium exempt from countersignature
- 5SB1753 (effective Jan 1, 2022): No diligent search for commercial insurance when referred by IL licensed producer (not affiliated with surplus line producer)
- 6One diligent search per year allowed for group master policies and program business
- 7Residual markets excluded from diligent search (except certain personal lines)
Required Forms
- Electronic Filing System (EFS) submission
Common Issues to Avoid
- Forgetting to round all taxes and fees to nearest whole dollar
- Not filing zero premium tax statements even when no premium endorsements
- Using wrong stamping fee rate (must use 0.04% for policies effective Jan 1, 2023+)
- Not maintaining 7-year records from policy effective date
- Incorrect policy notice format or font size on contracts
Helpful Tips
- Register for SLAI EFS system early - account setup required
- Verify insurer meets $15M surplus requirement before placing
- Keep diligent search documentation when required
- Use SLAI fire marshal tax schedule for property premiums
- For independent procurement, confirm insured meets exempt commercial purchaser definition
- Contact SLAI directly for penalty/interest calculations on late filings
Important Notes
Illinois allows domestic surplus line insurers (DSLI) - IL domiciled/licensed companies with $15M+ surplus may be designated as DSLI. All taxes/fees rounded to nearest whole dollar. Records kept 7 years from policy effective date. Stamping fee reduced from 0.075% to 0.04% effective Jan 1, 2023.
Frequently Asked Questions
What is the surplus lines tax rate in Illinois?
The surplus lines tax rate in Illinois is 3.50%.
When is surplus lines tax due in Illinois?
Semi-annual periods: January 1-June 30 and July 1-December 31. File through SLAI Electronic Filing System (EFS). Zero premium tax statements still required even when no premium endorsements.
How do I submit surplus lines filings in Illinois?
portal