Public Act 095-0533
 		





SB0484 Enrolled
LRB095 10667 KBJ 30898 b






    AN ACT concerning insurance.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Illinois Insurance Code is amended  by 
changing Section 143.17a as follows:
 



    (215 ILCS 5/143.17a)  (from Ch. 73, par. 755.17a)



    Sec. 143.17a. Notice of intention not to renew. 

    (a) A company intending to nonrenew any policy of insurance 
to which Section 143.11 applies, except for those defined in 
subsections (a), (b), (c), and (h) of Section 143.13, must mail 
written notice to the named insured at least 60 days prior to 
the expiration date of the current policy.  In all notices of 
intention not to renew any policy of insurance, as defined in 
Section 143.11, the company shall provide a specific 
explanation of the reasons for nonrenewal.    A company may not 
extend the current policy period for purposes of providing 
notice of its intention not to renew required under this 
subsection (a).
a. No company shall fail to renew any policy of 
insurance,
to which
Section 143.11 applies, except for those 
defined in subsections (a),
(b), (c), and (h) of Section 
143.13, unless it shall send by
mail
to the named insured at 
least 60 days advance
notice of its intention not to renew.  The 
company shall maintain proof
of mailing of such notice on one 
of the following forms:  a recognized U.S.
Post Office form or a 
form acceptable to the U.S. Post Office or other
commercial 
mail delivery service.  An exact and unaltered
copy of such 
notice shall also be
sent to the insured's broker, if known, or 
the agent of record and to
the mortgagee or lien holder at
the

last mailing address known by the company.
However, where 
cancellation is for nonpayment of premium, the notice of 
cancellation must be mailed at least 10 days
before the 
effective date of the cancellation.

    (b) A company intending to renew any policy of insurance to 
which Section 143.11 applies, except for those defined in 
subsections (a), (b), (c), and (h) of Section 143.13, with an 
increase in premium of 30% or more or with changes in 
deductibles or coverage that materially alter the policy must 
mail or deliver to the named insured written notice of such 
increase or change in deductible or coverage at least 60 days 
prior to the renewal or anniversary date.  If a company has 
failed to provide notice of intention to renew required under 
this subsection (b) at least 60 days prior to the renewal or 
anniversary date, but does so no less than 31 days prior to the 
renewal or anniversary date, the company may extend the current 
policy at the current terms and conditions for the period of 
time needed to equal the 60 day time period required to provide 
notice of intention to renew by this subsection (b).  The 
increase in premium shall be the renewal premium based on the 
known exposure as of the date of the quotation compared to the 
premium as of the last day of coverage for the current year's 
policy, annualized.  The premium on the renewal policy may be 
subsequently amended to reflect any change in exposure or 
reinsurance costs not considered in the quotation.
b. This 
Section does not apply if the company has manifested its

willingness to renew directly to the named insured.
Provided, 
however, that no company
may increase the renewal premium on 
any policy of insurance to which Section
143.11 applies, except 
for those defined in subsections (a), (b), (c), and (h)
of 
Section
143.13, by 30% or more, nor impose changes in 
deductibles or coverage that
materially alter the policy,  
unless the company shall have mailed or delivered
to the named 
insured written notice of such increase or change in
deductible 
or coverage at least 60 days prior
to the renewal or 
anniversary date.
The increase in premium shall be the
renewal 
premium based on the known exposure as of the date of the 
quotation
compared to the premium
as of the last day of 
coverage for the current year's policy, annualized.
The premium 
on the renewal policy may be subsequently amended to reflect

any change in exposure or reinsurance costs not considered in 
the
quotation.  An exact and unaltered
copy of such notice shall 
also be sent to the insured's broker, if known,
or the agent of 
record.  If an insurer fails to provide the notice
required by 
this subsection, then the company must extend the current 
policy
under the same terms, conditions, and premium to allow 
60 days notice of
renewal and provide the actual renewal 
premium quotation and any change in
coverage or deductible on 
the policy.  Proof of mailing or proof of receipt may
be proven 
by a sworn affidavit by the insurer as to the usual and 
customary
business practices of mailing notice pursuant to this 
Section or may be proven
consistent with Illinois Supreme Court 
Rule 236.


    (c) A company that has failed to provide notice of 
intention to nonrenew under subsection (a) of this Section and 
has failed to provide notice of intention to renew as 
prescribed under subsection (b) of this Section must renew the 
expiring policy under the same terms and conditions for an 
additional year or until the effective date of any similar 
insurance is procured by the insured, whichever is earlier.  The 
company may increase the renewal premium. However, such 
increase must be less than 30% of the expiring term's premium 
and notice of such increase must be delivered to the named 
insured on or before the date of expiration of the current 
policy period.
c. Should a company fail to comply with the 
non-renewal notice
requirements
of subsection a.,
the policy 
shall be extended for an additional year
or until the effective 
date of any similar insurance
procured by the insured, 
whichever is less,
on the same terms and conditions as the 
policy sought to be
terminated, unless the insurer has 
manifested its intention to renew at a
different premium that 
represents an increase not exceeding 30%.

    (d) Under subsection (a), the company shall maintain proof 
of mailing of the notice of intention not to renew to the named 
insured on one of the following forms: a recognized U.S. Post 
Office form or a form acceptable to the U.S. Post Office or 
other commercial mail delivery service.  Under subsections (b) 
and (c), proof of mailing or proof of receipt of the notice of 
intention to renew to the named insured may be proven by a 
sworn affidavit by the company as to the usual and customary 
business practices of mailing notice pursuant to this Section 
or may be proven consistent with Illinois Supreme Court Rule 
236.  For all notice requirements under this Section, an exact 
and unaltered copy of the notice to the named insured shall 
also be sent to the named insured's producer, if known, or the 
producer of record.  For notices of intention to not renew, an 
exact and unaltered copy of the notice to the named insured 
shall also be sent to the mortgagee or lien holder at the last 
mailing address known by the company.
d. Renewal of a policy 
does not constitute a waiver or estoppel with
respect to 
grounds for cancellation which existed before the effective

date of such renewal.

    (e) Renewal of a policy does not constitute a waiver or 
estoppel with respect to grounds for cancellation that existed 
before the effective date of such renewal.
e. In all notices of 
intention not to renew any policy of insurance,
as defined in 
Section 143.11 the company shall provide a specific
explanation 
of the reasons for nonrenewal.

    (f) For purposes of this Section, the named insured's 
producer, if known, or the producer of record and the mortgagee 
or lien holder may opt to accept notification electronically.

f. For purposes of this Section, the insured's broker, if 
known, or the agent of record and the mortgagee or lien holder 
may opt to accept notification electronically.

(Source: P.A. 93-477, eff. 8-8-03; 93-713, eff. 1-1-05.)