Surplus Line Association of Illinois

“Surplus line association of illinois (slai) is a membership group for all surplus line insurance licensees. In order to have a surplus line policy stamped by slai, the insurance producer must have a valid illinois surplus line license and membership in the slai.”

“All members of the governing body must be elected by current members of slai. It is also required that all members of the governing body are members of the slai and that a majority reside in illinois.”

“The illinois director of insurance has approval authority over the fee schedule and plan of operation of the association.”

“There are no committees with authority to act on behalf of the governing body.”

“Slai has an audit committee which reviews the 990 and offers any suggestions for changes to the auditors. The form 990 is then distributed to all members of the board of directors prior to filing.”

“An actual or potential conflict of interest may be disclosed in a written disclosure provided by the disclosing director to the chair of the board or the chair of the legal committee. Following such written disclosure, the board chair or the chair of the legal committee shall decide what further action is appropriate. Where a conflict of interest becomes apparent to a director in a board or committee meeting and has not been previously disclosed in writing pursuant to this process, it should be disclosed to the board or committee chair orally at the earliest opportunity. The board or committee chair will then decide what further action is appropriate. Directors are polled annually, after the annual meeting, regarding potential conflicts of interest.”

“Compensation for the chief executive officer and other key employees is determined by the executive committee (acting as a compensation committee) of the board of directors. The full board will vote on acceptance of the recommendation of the executive committee as to the new salaries. The executive committee uses the association forum of chicagoland's annual salary survey when determining the chief executive officer and key employees salaries as a reference guide. The acceptance of the salary recommendation is documented in the board of director minutes.”

“Slai provides this information upon request pursuant to all relevant disclosure requirements.”

“The association uses the modified cash basis of accounting.”

“The association has an audit committee made up of three board members who oversee the selection of auditors and review the annual audit services. The process has not changed since the prior year.”