1. Forms
2. IL
3. IL-09-17

What the Form Is

The IL 09 17 Resident Agent Countersignature Endorsement is an insurance policy endorsement used to satisfy state-specific legal requirements mandating that an insurance policy be countersigned by a licensed agent residing in that state. Historically, many states had countersignature laws to ensure local agent involvement, facilitate regulatory oversight, and secure state tax revenues. This endorsement serves as formal evidence of such a countersignature.

Classes of Business It Applies To

As an interline endorsement, the IL 09 17 can be used across various lines of commercial insurance when required by state law. This could include, but is not limited to:

• Commercial General Liability
• Commercial Property
• Commercial Auto
• Inland Marine
• Workers' Compensation (depending on state specifics)

Real-world example: If an out-of-state insurer writes a commercial property policy for a business located in a state that still mandates resident agent countersignatures, this endorsement would be added to the policy and signed by a licensed agent in that state.

Special Considerations

The applicability of the IL 09 17 is entirely dependent on the prevailing laws of the specific state where the insured risk is located or the policy is delivered. Key considerations include:

• Diminishing Requirement: Many states have repealed their countersignature laws due to arguments that they are protectionist, add unnecessary administrative burdens, and are less relevant in an era of electronic commerce and national/global insurers. Therefore, the use of this form has significantly declined.
• State-Specific Rules: For states that still have countersignature requirements, the specific obligations can vary. Some states may have exceptions or particular rules regarding who can countersign and what the act of countersigning entails.
• Regulatory Compliance: Failure to comply with a state's countersignature law by not using this endorsement (or an equivalent method if allowed) can lead to penalties for the insurer, such as fines or even challenges to the validity of the policy in that state.
• Non-Applicability: Some states, like Minnesota, have explicitly made this ISO form not applicable.

Real-world example: An underwriter processing a multi-state policy must verify the countersignature requirements for each state involved. If a state on the policy requires it, Form IL 09 17 would be attached for that state's portion of the coverage, and a local agent would need to sign it.

Key Information for Agents and Underwriters

• Verify Necessity: Always confirm if the relevant state(s) currently mandate a resident agent countersignature before adding this endorsement. Relying on outdated information can lead to unnecessary paperwork or, conversely, non-compliance.
• Identify a Resident Agent: If the endorsement is required, the insurer will need to have a relationship with a licensed resident agent in that state who is authorized to countersign policies.
• No Impact on Coverage or Premium: The IL 09 17 is purely an administrative and regulatory compliance form. It does not alter the coverage provided by the policy nor does it typically have a direct impact on the premium calculation, although some states historically allowed a portion of the commission to be paid to the countersigning agent.
• Documentation: Proper execution and record-keeping of this endorsement are important for audit and compliance purposes.