State of Illinois
91st General Assembly
Legislation

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[ House Amendment 002 ]

91_SB1024sam001

 










                                             LRB9103039JSpcam

 1                    AMENDMENT TO SENATE BILL 1024

 2        AMENDMENT NO.     .  Amend Senate Bill 1024 by  replacing
 3    the title with the following:
 4        "AN  ACT to amend the Illinois Insurance Code by changing
 5    Sections 143.13 and 143.17 and adding Section 143.11b."; and

 6    by replacing everything after the enacting  clause  with  the
 7    following:

 8        "Section  5.   The  Illinois Insurance Code is amended by
 9    changing  Sections  143.13  and  143.17  and  adding  Section
10    143.11b as follows:

11        (215 ILCS 5/143.11b new)
12        Sec. 143.11b.  Assignment or  transfer  of  property  and
13    casualty  policy.   An  assignment or transfer of a policy of
14    insurance to which  Section  143.11  applies  among  insurers
15    within  an insurance holding company system or as a result of
16    a merger, acquisition, or  company  restructuring  is  not  a
17    cancellation  or  nonrenewal for purposes of the notification
18    requirements  in  Section  143.12  through  143.24.   If  the
19    assignment or transfer results in an increase in the  premium
20    of  30% or more or in changes in deductibles or coverage that
21    materially alter the policy, the company shall  mail  to  the
 
                            -2-              LRB9103039JSpcam
 1    named  insured  written  notice  of the increase or change at
 2    least 60 days prior to the anniversary date.   An  exact  and
 3    unaltered  copy  of  the  notice  shall  also  be sent to the
 4    insured's broker, if known, or the agent of record.

 5        (215 ILCS 5/143.13) (from Ch. 73, par. 755.13)
 6        Sec. 143.13.  Definition of terms used in Sections 143.11
 7    through 143.24.
 8        (a)  "Policy of  automobile  insurance"  means  a  policy
 9    delivered  or  issued  for delivery in this State, insuring a
10    natural person as  named  insured  or  one  or  more  related
11    individuals  resident  of  the same household and under which
12    the insured vehicles therein designated are motor vehicles of
13    the private passenger, station wagon, or any other  4-wheeled
14    motor  vehicle  with  a  load capacity of 1500 pounds or less
15    which is not used in  the occupation, profession or  business
16    of  the  insured or not used as a public or livery conveyance
17    for passengers nor rented to others.   Policy  of  automobile
18    insurance  shall  also  mean  a  named non-owner's automobile
19    policy.
20        Policy of automobile insurance does not apply to policies
21    of automobile insurance issued under the Illinois  Automobile
22    Insurance  Plan,  to  any policy covering garages, automobile
23    sales agencies, repair  shops,  service  stations  or  public
24    parking place operation hazards.
25        (b)  "Policy  of  fire  and  extended coverage insurance"
26    means a policy delivered  or  issued  for  delivery  in  this
27    State,  that  includes  but  is not limited to, the perils of
28    fire and extended coverage, and  covers  real  property  used
29    principally  for residential purposes up to and including a 4
30    family dwelling or any household or personal property that is
31    usual or incidental to the occupancy to any premises used for
32    residential purposes.
33        (c)  "All other policies of  personal  lines"  means  any
 
                            -3-              LRB9103039JSpcam
 1    other  policy  of  insurance  issued  to a natural person for
 2    personal or family protection.
 3        (d)  "Renewal" or "to renew" means (1) any change  to  an
 4    entire  line of business in accordance with subsection b-5 of
 5    Section 143.17 and  (2)  the  issuance  and  delivery  by  an
 6    insurer  of  a  policy  superseding  at the end of the policy
 7    period a policy previously issued and delivered by  the  same
 8    insurer  or  the  issuance  and  delivery of a certificate or
 9    notice extending the term  of  a  policy  beyond  its  policy
10    period  or  term;  however, any successive policies issued by
11    the same insurer to the same insured, for the same or similar
12    coverage, shall be considered a renewal policy.
13        Any policy with a policy period or term of  less  than  6
14    months  or  any policy with no fixed expiration date shall be
15    considered as if written for  successive  policy  periods  or
16    terms  of 6 months for the purpose of "renewal" or "to renew"
17    as defined in this paragraph (d) and for the purpose  of  any
18    non-renewal notice required by Section 143.17 of this Code.
19        (e)  "Nonpayment  of  premium" means failure of the named
20    insured to discharge, when due, any  of  his  obligations  in
21    connection with the payment of premiums or any installment of
22    such  premium  that  is payable directly to the insurer or to
23    its agent. Premium shall mean the premium that is due for  an
24    individual policy which shall not include any membership dues
25    or  other  consideration  required  to  be  a  member  of any
26    organization in order to be eligible for such policy.
27        (f)  "A policy delivered or issued for delivery  in  this
28    State"  shall  include  but  not be limited to all binders of
29    insurance, whether written  or  oral,  and  all  applications
30    bound  for future delivery by a duly licensed resident agent.
31    A written binder of insurance issued for a term of 60 days or
32    less, which contains on its face  a  specific  inception  and
33    expiration  date  and  which a copy has been furnished to the
34    insured, shall not be subject to the non-renewal requirements
 
                            -4-              LRB9103039JSpcam
 1    of Section 143.17 of this Code.
 2        (g)  "Cancellation" or "cancelled" means the  termination
 3    of a policy by an insurer prior to the expiration date of the
 4    policy.  A policy of automobile or fire and extended coverage
 5    insurance  which  expires  by  its  own  terms  on the policy
 6    expiration date unless advance premiums are received  by  the
 7    insurer for succeeding policy periods shall not be considered
 8    "cancelled"  or  a  "cancellation" effected by the insurer in
 9    the event such premiums are not paid on or before the  policy
10    expiration date.
11        (h)  "Commercial  excess  and  umbrella liability policy"
12    means a policy written over one or more  underlying  policies
13    for an insured:
14             (1)  that has at least 25 full-time employees at the
15        time  the commercial excess and umbrella liability policy
16        is written and procures the  insurance  of  any  risk  or
17        risks,  other than life, accident and health, and annuity
18        contracts, as described in clauses (a) and (b) of Class 1
19        of Section 4 and clause (a) of Class 2 of Section  4,  by
20        use  of the services of a full-time employee acting as an
21        insurance manager or buyer; or
22             (2)  whose  aggregate  annual   premiums   for   all
23        property  and casualty insurance on all risks is at least
24        $50,000.
25    (Source: P.A. 86-437; 87-1020.)

26        (215 ILCS 5/143.17) (from Ch. 73, par. 755.17)
27        Sec. 143.17.  Notice of intention not to renew.
28        a.  No  company  shall  fail  to  renew  any  policy   of
29    insurance,  as  defined in subsections (a), (b), (c), and (h)
30    of Section 143.13, to which Section 143.11 applies, unless it
31    shall send by mail to the named  insured  at  least  30  days
32    advance  notice  of  its intention not to renew.  The company
33    shall  maintain  proof  of  mailing  of  such  notice  on   a
 
                            -5-              LRB9103039JSpcam
 1    recognized  U.S. Post Office form or a form acceptable to the
 2    U. S. Post Office or other commercial mail delivery  service.
 3    An exact and unaltered copy of such notice shall also be sent
 4    to the insured's broker, if known, or the agent of record and
 5    to  the  mortgagee or lien holder at the last mailing address
 6    known by the company.  However,  where  cancellation  is  for
 7    nonpayment  of  premium,  the  notice of cancellation must be
 8    mailed at least 10 days before  the  effective  date  of  the
 9    cancellation.
10        b.  This  Section  does  not  apply  if  the  company has
11    manifested its willingness to renew  directly  to  the  named
12    insured. Such written notice shall specify the premium amount
13    payable,  including  any  premium payment plan available, and
14    the name of any person or  persons,  if  any,  authorized  to
15    receive payment on behalf of the company.  If no person is so
16    authorized, the premium notice shall so state.  The notice of
17    nonrenewal  and the proof of mailing shall be effected on the
18    same date.
19        b-5.  This  Section  does  not  apply  if   the   company
20    manifested  its  willingness  to  renew directly to the named
21    insured.   However,  no  company  may   impose   changes   in
22    deductibles or coverage for any policy forms applicable to an
23    entire  line  of business enumerated in subsections (a), (b),
24    (c), and (h)  of  Section  143.13  to  which  Section  143.11
25    applies unless the company mails to the named insured written
26    notice  of  the  change in deductible or coverage at least 60
27    days prior to the renewal or anniversary date.  An exact  and
28    unaltered  copy  of  the  notice  shall  also  be sent to the
29    insured's broker, if known, or the agent of record.
30        c.  Should a company fail to comply with (a)  or  (b)  of
31    this   Section,  the  policy  shall  terminate  only  on  the
32    effective date of  any  similar  insurance  procured  by  the
33    insured   with  respect  to  the  same  subject  or  location
34    designated in both policies.
 
                            -6-              LRB9103039JSpcam
 1        d.  Renewal of a policy does not constitute a  waiver  or
 2    estoppel  with  respect  to  grounds  for  cancellation which
 3    existed before the effective date of such renewal.
 4        e.  In all notices of intention not to renew  any  policy
 5    of  insurance, as defined in Section 143.11 the company shall
 6    provide a specific explanation of the reasons for nonrenewal.
 7    (Source: P.A. 89-669, eff. 1-1-97.)".

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