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| [ Introduced ] | [ Enrolled ] | [ House Amendment 002 ] |
| [ Senate Amendment 001 ] |
91_SB1024eng SB1024 Engrossed LRB9103039JSpc 1 AN ACT to amend the Illinois Insurance Code by changing 2 Sections 143.13 and 143.17 and adding Section 143.11b. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Insurance Code is amended by 6 changing Sections 143.13 and 143.17 and adding Section 7 143.11b as follows: 8 (215 ILCS 5/143.11b new) 9 Sec. 143.11b. Assignment or transfer of property and 10 casualty policy. An assignment or transfer of a policy of 11 insurance to which Section 143.11 applies among insurers 12 within an insurance holding company system or as a result of 13 a merger, acquisition, or company restructuring is not a 14 cancellation or nonrenewal for purposes of the notification 15 requirements in Section 143.12 through 143.24. If the 16 assignment or transfer results in an increase in the premium 17 of 30% or more or in changes in deductibles or coverage that 18 materially alter the policy, the company shall mail to the 19 named insured written notice of the increase or change at 20 least 60 days prior to the anniversary date. An exact and 21 unaltered copy of the notice shall also be sent to the 22 insured's broker, if known, or the agent of record. 23 (215 ILCS 5/143.13) (from Ch. 73, par. 755.13) 24 Sec. 143.13. Definition of terms used in Sections 143.11 25 through 143.24. 26 (a) "Policy of automobile insurance" means a policy 27 delivered or issued for delivery in this State, insuring a 28 natural person as named insured or one or more related 29 individuals resident of the same household and under which 30 the insured vehicles therein designated are motor vehicles of SB1024 Engrossed -2- LRB9103039JSpc 1 the private passenger, station wagon, or any other 4-wheeled 2 motor vehicle with a load capacity of 1500 pounds or less 3 which is not used in the occupation, profession or business 4 of the insured or not used as a public or livery conveyance 5 for passengers nor rented to others. Policy of automobile 6 insurance shall also mean a named non-owner's automobile 7 policy. 8 Policy of automobile insurance does not apply to policies 9 of automobile insurance issued under the Illinois Automobile 10 Insurance Plan, to any policy covering garages, automobile 11 sales agencies, repair shops, service stations or public 12 parking place operation hazards. 13 (b) "Policy of fire and extended coverage insurance" 14 means a policy delivered or issued for delivery in this 15 State, that includes but is not limited to, the perils of 16 fire and extended coverage, and covers real property used 17 principally for residential purposes up to and including a 4 18 family dwelling or any household or personal property that is 19 usual or incidental to the occupancy to any premises used for 20 residential purposes. 21 (c) "All other policies of personal lines" means any 22 other policy of insurance issued to a natural person for 23 personal or family protection. 24 (d) "Renewal" or "to renew" means (1) any change to an 25 entire line of business in accordance with subsection b-5 of 26 Section 143.17 and (2) the issuance and delivery by an 27 insurer of a policy superseding at the end of the policy 28 period a policy previously issued and delivered by the same 29 insurer or the issuance and delivery of a certificate or 30 notice extending the term of a policy beyond its policy 31 period or term; however, any successive policies issued by 32 the same insurer to the same insured, for the same or similar 33 coverage, shall be considered a renewal policy. 34 Any policy with a policy period or term of less than 6 SB1024 Engrossed -3- LRB9103039JSpc 1 months or any policy with no fixed expiration date shall be 2 considered as if written for successive policy periods or 3 terms of 6 months for the purpose of "renewal" or "to renew" 4 as defined in this paragraph (d) and for the purpose of any 5 non-renewal notice required by Section 143.17 of this Code. 6 (e) "Nonpayment of premium" means failure of the named 7 insured to discharge, when due, any of his obligations in 8 connection with the payment of premiums or any installment of 9 such premium that is payable directly to the insurer or to 10 its agent. Premium shall mean the premium that is due for an 11 individual policy which shall not include any membership dues 12 or other consideration required to be a member of any 13 organization in order to be eligible for such policy. 14 (f) "A policy delivered or issued for delivery in this 15 State" shall include but not be limited to all binders of 16 insurance, whether written or oral, and all applications 17 bound for future delivery by a duly licensed resident agent. 18 A written binder of insurance issued for a term of 60 days or 19 less, which contains on its face a specific inception and 20 expiration date and which a copy has been furnished to the 21 insured, shall not be subject to the non-renewal requirements 22 of Section 143.17 of this Code. 23 (g) "Cancellation" or "cancelled" means the termination 24 of a policy by an insurer prior to the expiration date of the 25 policy. A policy of automobile or fire and extended coverage 26 insurance which expires by its own terms on the policy 27 expiration date unless advance premiums are received by the 28 insurer for succeeding policy periods shall not be considered 29 "cancelled" or a "cancellation" effected by the insurer in 30 the event such premiums are not paid on or before the policy 31 expiration date. 32 (h) "Commercial excess and umbrella liability policy" 33 means a policy written over one or more underlying policies 34 for an insured: SB1024 Engrossed -4- LRB9103039JSpc 1 (1) that has at least 25 full-time employees at the 2 time the commercial excess and umbrella liability policy 3 is written and procures the insurance of any risk or 4 risks, other than life, accident and health, and annuity 5 contracts, as described in clauses (a) and (b) of Class 1 6 of Section 4 and clause (a) of Class 2 of Section 4, by 7 use of the services of a full-time employee acting as an 8 insurance manager or buyer; or 9 (2) whose aggregate annual premiums for all 10 property and casualty insurance on all risks is at least 11 $50,000. 12 (Source: P.A. 86-437; 87-1020.) 13 (215 ILCS 5/143.17) (from Ch. 73, par. 755.17) 14 Sec. 143.17. Notice of intention not to renew. 15 a. No company shall fail to renew any policy of 16 insurance, as defined in subsections (a), (b), (c), and (h) 17 of Section 143.13, to which Section 143.11 applies, unless it 18 shall send by mail to the named insured at least 30 days 19 advance notice of its intention not to renew. The company 20 shall maintain proof of mailing of such notice on a 21 recognized U.S. Post Office form or a form acceptable to the 22 U. S. Post Office or other commercial mail delivery service. 23 An exact and unaltered copy of such notice shall also be sent 24 to the insured's broker, if known, or the agent of record and 25 to the mortgagee or lien holder at the last mailing address 26 known by the company. However, where cancellation is for 27 nonpayment of premium, the notice of cancellation must be 28 mailed at least 10 days before the effective date of the 29 cancellation. 30 b. This Section does not apply if the company has 31 manifested its willingness to renew directly to the named 32 insured. Such written notice shall specify the premium amount 33 payable, including any premium payment plan available, and SB1024 Engrossed -5- LRB9103039JSpc 1 the name of any person or persons, if any, authorized to 2 receive payment on behalf of the company. If no person is so 3 authorized, the premium notice shall so state. The notice of 4 nonrenewal and the proof of mailing shall be effected on the 5 same date. 6 b-5. This Section does not apply if the company 7 manifested its willingness to renew directly to the named 8 insured. However, no company may impose changes in 9 deductibles or coverage for any policy forms applicable to an 10 entire line of business enumerated in subsections (a), (b), 11 (c), and (h) of Section 143.13 to which Section 143.11 12 applies unless the company mails to the named insured written 13 notice of the change in deductible or coverage at least 60 14 days prior to the renewal or anniversary date. An exact and 15 unaltered copy of the notice shall also be sent to the 16 insured's broker, if known, or the agent of record. 17 c. Should a company fail to comply with (a) or (b) of 18 this Section, the policy shall terminate only on the 19 effective date of any similar insurance procured by the 20 insured with respect to the same subject or location 21 designated in both policies. 22 d. Renewal of a policy does not constitute a waiver or 23 estoppel with respect to grounds for cancellation which 24 existed before the effective date of such renewal. 25 e. In all notices of intention not to renew any policy 26 of insurance, as defined in Section 143.11 the company shall 27 provide a specific explanation of the reasons for nonrenewal. 28 (Source: P.A. 89-669, eff. 1-1-97.)