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91_HB0589enr
HB0589 Enrolled LRB9101521JScs
1 AN ACT to amend the Illinois Insurance Code by adding
2 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 adding Section 143.11b as follows:
7 (215 ILCS 5/143.11b new)
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
12 insurers under common management or control, or as a result
13 of a merger, acquisition, or restructuring of an insurance
14 company, is not a nonrenewal for purposes of the notification
15 requirements under Sections 143.12 through 143.24. However,
16 in the event of an increase in the renewal premium of 30% or
17 more, change in deductibles or change in coverage that
18 materially alters any policy to which subsection b of Section
19 143.17a applies, the company shall adhere to the provisions
20 set forth in subsection b of Section 143.17a. A company
21 making an assignment or transfer of a policy among or between
22 insurers within an insurance holding company system or
23 insurers under common management or control, or as a result
24 of a merger, acquisition, or restructuring of an insurance
25 company, shall have delivered to the named insured notice of
26 such assignment or transfer at least 60 days prior to the
27 renewal date. An exact and unaltered copy of the notice
28 shall also be sent to the insured's producer, if known, and
29 agent of record. The assignment or transfer of a policy or
30 policies of insurance among or between insurers shall not
31 occur without the producer or agent of record, or both,
HB0589 Enrolled -2- LRB9101521JScs
1 having a signed agency contract with the entity to which the
2 policy or policies are to be assigned or transferred. If
3 there is not a signed agency contract, all of the notice
4 requirements of Sections 143.17 and 143.17a shall apply.
5 Nothing in this Section shall contravene any existing
6 producer and company contract rights.
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.
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