John J. Cullerton
Filed: 2/20/2004
|
|||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 2491
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 2491 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Illinois Insurance Code is amended by | ||||||
5 | changing Sections 143.11b, 143.14, 143.15, 143.16, 143.17, and | ||||||
6 | 143.17a as follows:
| ||||||
7 | (215 ILCS 5/143.11b)
| ||||||
8 | Sec. 143.11b. Assignment or transfer of property and | ||||||
9 | casualty policies. An assignment or transfer of a policy of | ||||||
10 | insurance to which Section 143.11
applies among or between | ||||||
11 | insurers within an insurance holding company system or
insurers | ||||||
12 | under common management or control, or as a result of a merger,
| ||||||
13 | acquisition,
or restructuring of an insurance company, is not a | ||||||
14 | nonrenewal
for purposes of the notification requirements under | ||||||
15 | Sections 143.12 through
143.24. However,
in the event of an | ||||||
16 | increase in the renewal premium of 30% or more, change in
| ||||||
17 | deductibles or change in coverage that materially alters any | ||||||
18 | policy to which
subsection b of Section 143.17a applies, the | ||||||
19 | company shall adhere to the
provisions set forth in
subsection | ||||||
20 | b of Section 143.17a. A company making an assignment or | ||||||
21 | transfer of
a policy among or between insurers within an | ||||||
22 | insurance holding company system
or insurers under common | ||||||
23 | management or control, or as a result of a merger,
acquisition, | ||||||
24 | or restructuring of an insurance company, shall
have delivered |
| |||||||
| |||||||
1 | to the named insured notice of such assignment or transfer at
| ||||||
2 | least 60 days prior to the renewal date. An exact and unaltered | ||||||
3 | copy of the
notice shall also be sent to the insured's | ||||||
4 | producer, if known, and agent of
record. The assignment or | ||||||
5 | transfer of a policy or policies of insurance among
or between
| ||||||
6 | insurers shall not occur without the producer or agent of | ||||||
7 | record, or both,
having a signed agency contract with the | ||||||
8 | entity to
which the policy or policies are to be assigned or | ||||||
9 | transferred. If there is
not a signed agency contract, all of | ||||||
10 | the notice requirements of Sections 143.17
and 143.17a shall | ||||||
11 | apply. Nothing in
this Section shall contravene any existing | ||||||
12 | producer and company contract
rights. For purposes of this | ||||||
13 | Section, the insured's producer, if known, and agent of record | ||||||
14 | may opt to accept notification of assignment or transfer of | ||||||
15 | policies electronically.
| ||||||
16 | (Source: P.A. 91-800, eff. 6-13-00.)
| ||||||
17 | (215 ILCS 5/143.14) (from Ch. 73, par. 755.14)
| ||||||
18 | Sec. 143.14. Notice of cancellation.
| ||||||
19 | (a) No notice of cancellation of any
policy of insurance, | ||||||
20 | to which
Section 143.11 applies, shall be effective unless | ||||||
21 | mailed by the company
to the named insured and the mortgage or | ||||||
22 | lien holder, at the last mailing
address known by the company.
| ||||||
23 | The company shall maintain proof of mailing of such notice on a | ||||||
24 | recognized
U.S. Post Office form or a form acceptable to the U. | ||||||
25 | S. Post Office or
other commercial mail delivery service. A
| ||||||
26 | copy of all such
notices shall be sent to the insured's broker | ||||||
27 | if known, or the agent of
record , and to the mortgagee or | ||||||
28 | lienholder , if known, at the last mailing
address
known to the | ||||||
29 | company. For purposes of this Section, the mortgage or lien | ||||||
30 | holder, insured's broker, if known, or the agent of record may | ||||||
31 | opt to accept notification electronically.
| ||||||
32 | (b) Whenever a financed insurance contract is cancelled, | ||||||
33 | the insurer
shall return
whatever gross unearned premiums are |
| |||||||
| |||||||
1 | due
under the insurance contract or contracts not to exceed the | ||||||
2 | unpaid balance
due the premium finance company directly to the | ||||||
3 | premium finance
company effecting the cancellation for the | ||||||
4 | account of the named insured.
The return premium must be mailed | ||||||
5 | to the premium finance company within
60 days.
The request for | ||||||
6 | the unearned premium by the premium finance company shall
be in | ||||||
7 | the manner of a monthly account, current accounting by | ||||||
8 | producer,
policy number, unpaid balance and name of insured for | ||||||
9 | each cancelled amount.
In the event the insurance contract or | ||||||
10 | contracts are subject to audit, the
insurer shall retain the | ||||||
11 | right to withhold the return of the portion of
premium that can | ||||||
12 | be identified to the contract or contracts until the audit
is | ||||||
13 | completed. Within 30 days of the completion of the audit, if a | ||||||
14 | premium
retained by the insurer after crediting the earned | ||||||
15 | premium would result in
a surplus, the insurer shall return the | ||||||
16 | surplus directly to the premium
finance company. If the audit | ||||||
17 | should result in an additional premium due
the insurer, the | ||||||
18 | obligation for the collection of this premium shall fall
upon | ||||||
19 | the insurer and not affect any other contract or contracts | ||||||
20 | currently
being financed by the premium finance company for the | ||||||
21 | named insured.
| ||||||
22 | (c) Whenever a premium finance agreement contains a power | ||||||
23 | of attorney
enabling the premium finance company to cancel any | ||||||
24 | insurance contract or contracts
in the agreement, the insurer | ||||||
25 | shall honor the date of cancellation as set
forth in the | ||||||
26 | request from the premium finance company without requiring the
| ||||||
27 | return of the insurance contract or contracts. The insurer may | ||||||
28 | mail to the
named insured an acknowledgment of the notice of | ||||||
29 | cancellation from the
premium finance company but the named | ||||||
30 | insured shall not incur any
additional premium charge for any | ||||||
31 | extension of coverage. The insurer need
not maintain proof of | ||||||
32 | mailing of this notice.
| ||||||
33 | (d) All statutory regulatory and contractual restrictions | ||||||
34 | providing that
the insurance contract may not be cancelled |
| |||||||
| |||||||
1 | unless the required notice is
mailed to a governmental agency, | ||||||
2 | mortgagee, lienholder, or other third
party shall apply where | ||||||
3 | cancellation is effected under a power of
attorney under a | ||||||
4 | premium finance agreement. The insurer shall have the
right for | ||||||
5 | a premium charge for this extension of coverage.
| ||||||
6 | (Source: P.A. 86-370; 86-437; 86-1028; 87-811; 87-1123.)
| ||||||
7 | (215 ILCS 5/143.15) (from Ch. 73, par. 755.15)
| ||||||
8 | Sec. 143.15. Mailing of cancellation notice. All notices of
| ||||||
9 | cancellation of insurance as
defined in subsections (a), (b) | ||||||
10 | and (c) of Section 143.13 must
be mailed at least 30 days prior | ||||||
11 | to the effective date of
cancellation to the named insured and | ||||||
12 | mortgagee or lien holder,
if known, at the last mailing address | ||||||
13 | known to the company. All
notices of cancellation shall include | ||||||
14 | a specific explanation of
the reason or reasons for | ||||||
15 | cancellation. However, where cancellation
is for nonpayment of | ||||||
16 | premium, the notice of
cancellation must be mailed at least 10 | ||||||
17 | days before the effective date of the
cancellation. For | ||||||
18 | purposes of this Section, the mortgagee or lien holder, if | ||||||
19 | known, may opt to accept notification electronically.
| ||||||
20 | (Source: P.A. 89-669, eff. 1-1-97.)
| ||||||
21 | (215 ILCS 5/143.16) (from Ch. 73, par. 755.16)
| ||||||
22 | Sec. 143.16. Mailing of cancellation notice. All notices of
| ||||||
23 | cancellation of insurance to which Section
143.11 applies, | ||||||
24 | except for those defined in subsections (a), (b) and (c) of
| ||||||
25 | Section 143.13 must be mailed at least 30 days prior to the | ||||||
26 | effective date
of cancellation during the first 60 days of | ||||||
27 | coverage. After the coverage
has been effective for 61 days or | ||||||
28 | more, all notices must be mailed at least
60 days prior to the | ||||||
29 | effective date of cancellation. All such notices shall
include | ||||||
30 | a specific explanation of the reason or reasons for | ||||||
31 | cancellation
and shall be mailed to the named insured and | ||||||
32 | mortgagee or lien holder, if
known, at the last mailing address |
| |||||||
| |||||||
1 | known to the company. However, where
cancellation is for | ||||||
2 | nonpayment of premium, the notice
of
cancellation must be | ||||||
3 | mailed at least 10 days before the
effective date of the | ||||||
4 | cancellation. For purposes of this Section, the mortgagee or | ||||||
5 | lien holder, if known, may opt to accept notification | ||||||
6 | electronically.
| ||||||
7 | (Source: P.A. 89-669, eff. 1-1-97.)
| ||||||
8 | (215 ILCS 5/143.17) (from Ch. 73, par. 755.17)
| ||||||
9 | Sec. 143.17. Notice of intention not to renew.
| ||||||
10 | a. No company shall fail
to renew any policy of insurance, | ||||||
11 | as defined in subsections (a), (b),
(c), and (h) of Section | ||||||
12 | 143.13, to which Section 143.11 applies, unless it
shall
send | ||||||
13 | by mail to the named insured at least 30 days advance notice of | ||||||
14 | its
intention not to renew. The company shall maintain proof of | ||||||
15 | mailing of
such notice on a recognized U.S. Post Office form or | ||||||
16 | a form acceptable to
the U. S. Post Office or other commercial | ||||||
17 | mail delivery service. An exact
and unaltered copy of such | ||||||
18 | notice shall also be sent to the insured's
broker, if known, or | ||||||
19 | the agent of record and to the mortgagee or lien
holder at the | ||||||
20 | last mailing address known by the company. However, where
| ||||||
21 | cancellation is for nonpayment of premium, the notice
of
| ||||||
22 | cancellation must be mailed at least 10 days before the
| ||||||
23 | effective date of the cancellation.
| ||||||
24 | b. This Section does not apply if the company has | ||||||
25 | manifested its
willingness to renew directly to the named | ||||||
26 | insured.
Such written notice shall specify the premium amount | ||||||
27 | payable, including
any premium payment plan available, and the | ||||||
28 | name of any person or persons,
if any, authorized to receive | ||||||
29 | payment on behalf of the company. If no
person is so | ||||||
30 | authorized, the premium notice shall so state. The notice of
| ||||||
31 | nonrenewal and the proof of mailing shall be effected on the | ||||||
32 | same date.
| ||||||
33 | b-5. This Section does not apply if the company manifested |
| |||||||
| |||||||
1 | its
willingness to renew directly to the named insured. | ||||||
2 | However, no company may
impose changes in deductibles or | ||||||
3 | coverage for any policy forms applicable to an
entire line of | ||||||
4 | business enumerated in subsections (a), (b), (c), and (h) of
| ||||||
5 | Section 143.13 to which Section 143.11 applies unless the | ||||||
6 | company mails to the
named insured written notice of the change | ||||||
7 | in deductible or coverage at least
60 days prior to the renewal | ||||||
8 | or anniversary date. An exact and unaltered copy
of the notice | ||||||
9 | shall also be sent to the insured's broker, if known, or the
| ||||||
10 | agent of record.
| ||||||
11 | c. Should a company fail to comply with (a) or (b) of this | ||||||
12 | Section,
the policy shall terminate only on the effective date | ||||||
13 | of any similar
insurance procured by the insured with respect | ||||||
14 | to the same subject or
location designated in both policies.
| ||||||
15 | d. Renewal of a policy does not constitute a waiver or | ||||||
16 | estoppel with
respect to grounds for cancellation which existed | ||||||
17 | before the effective
date of such renewal.
| ||||||
18 | e. In all notices of intention not to renew any policy of | ||||||
19 | insurance,
as defined in Section 143.11 the company shall | ||||||
20 | provide a specific
explanation of the reasons for nonrenewal.
| ||||||
21 | f. For purposes of this Section, the insured's broker, if | ||||||
22 | known, or the agent of record and the mortgagee or lien holder | ||||||
23 | may opt to accept notification electronically.
| ||||||
24 | (Source: P.A. 91-597, eff. 1-1-00.)
| ||||||
25 | (215 ILCS 5/143.17a) (from Ch. 73, par. 755.17a)
| ||||||
26 | Sec. 143.17a. Notice of intention not to renew.
| ||||||
27 | a. No company shall fail to renew any policy of insurance,
| ||||||
28 | to which
Section 143.11 applies, except for those defined in | ||||||
29 | subsections (a),
(b), (c), and (h) of Section 143.13, unless it | ||||||
30 | shall send by
mail
to the named insured at least 60 days | ||||||
31 | advance
notice of its intention not to renew. The company shall | ||||||
32 | maintain proof
of mailing of such notice on one of the | ||||||
33 | following forms: a recognized U.S.
Post Office form or a form |
| |||||||
| |||||||
1 | acceptable to the U.S. Post Office or other
commercial mail | ||||||
2 | delivery service. An exact and unaltered
copy of such notice | ||||||
3 | shall also be
sent to the insured's broker, if known, or the | ||||||
4 | agent of record and to
the mortgagee or lien holder at
the
last | ||||||
5 | mailing address known by the company.
However, where | ||||||
6 | cancellation is for nonpayment of premium, the notice of | ||||||
7 | cancellation must be mailed at least 10 days
before the | ||||||
8 | effective date of the cancellation.
| ||||||
9 | b. This Section does not apply if the company has | ||||||
10 | manifested its
willingness to renew directly to the named | ||||||
11 | insured.
Provided, however, that no company
may increase the | ||||||
12 | renewal premium on any policy of insurance to which Section
| ||||||
13 | 143.11 applies, except for those defined in subsections (a), | ||||||
14 | (b), (c), and (h)
of Section
143.13, by 30% or more, nor impose | ||||||
15 | changes in deductibles or coverage that
materially alter the | ||||||
16 | policy, unless the company shall have mailed or delivered
to | ||||||
17 | the named insured written notice of such increase or change in
| ||||||
18 | deductible or coverage at least 60 days prior
to the renewal or | ||||||
19 | anniversary date.
The increase in premium shall be the
renewal | ||||||
20 | premium based on the known exposure as of the date of the | ||||||
21 | quotation
compared to the premium
as of the last day of | ||||||
22 | coverage for the current year's policy, annualized.
The premium | ||||||
23 | on the renewal policy may be subsequently amended to reflect
| ||||||
24 | any change in exposure or reinsurance costs not considered in | ||||||
25 | the
quotation. An exact and unaltered
copy of such notice shall | ||||||
26 | also be sent to the insured's broker, if known,
or the agent of | ||||||
27 | record. If an insurer fails to provide the notice
required by | ||||||
28 | this subsection, then the company must extend the current | ||||||
29 | policy
under the same terms, conditions, and premium to allow | ||||||
30 | 60 days notice of
renewal and provide the actual renewal | ||||||
31 | premium quotation and any change in
coverage or deductible on | ||||||
32 | the policy. Proof of mailing or proof of receipt may
be proven | ||||||
33 | by a sworn affidavit by the insurer as to the usual and | ||||||
34 | customary
business practices of mailing notice pursuant to this |
| |||||||
| |||||||
1 | Section or may be proven
consistent with Illinois Supreme Court | ||||||
2 | Rule 236.
| ||||||
3 | c. Should a company fail to comply with the non-renewal | ||||||
4 | notice
requirements
of subsection a.,
the policy shall be | ||||||
5 | extended for an additional year
or until the effective date of | ||||||
6 | any similar insurance
procured by the insured, whichever is | ||||||
7 | less,
on the same terms and conditions as the policy sought to | ||||||
8 | be
terminated, unless the insurer has manifested its intention | ||||||
9 | to renew at a
different premium that represents an increase not | ||||||
10 | exceeding 30%.
| ||||||
11 | d. Renewal of a policy does not constitute a waiver or | ||||||
12 | estoppel with
respect to grounds for cancellation which existed | ||||||
13 | before the effective
date of such renewal.
| ||||||
14 | e. In all notices of intention not to renew any policy of | ||||||
15 | insurance,
as defined in Section 143.11 the company shall | ||||||
16 | provide a specific
explanation of the reasons for nonrenewal.
| ||||||
17 | f. For purposes of this Section, the insured's broker, if | ||||||
18 | known, or the agent of record and the mortgagee or lien holder | ||||||
19 | may opt to accept notification electronically.
| ||||||
20 | (Source: P.A. 93-477, eff. 8-8-03.)".
|