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91_SB1024enr
SB1024 Enrolled LRB9103039JSpc
1 AN ACT to amend the Illinois Insurance Code by changing
2 Sections 143.13 and 143.17.
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 as follows:
7 (215 ILCS 5/143.13) (from Ch. 73, par. 755.13)
8 Sec. 143.13. Definition of terms used in Sections 143.11
9 through 143.24.
10 (a) "Policy of automobile insurance" means a policy
11 delivered or issued for delivery in this State, insuring a
12 natural person as named insured or one or more related
13 individuals resident of the same household and under which
14 the insured vehicles therein designated are motor vehicles of
15 the private passenger, station wagon, or any other 4-wheeled
16 motor vehicle with a load capacity of 1500 pounds or less
17 which is not used in the occupation, profession or business
18 of the insured or not used as a public or livery conveyance
19 for passengers nor rented to others. Policy of automobile
20 insurance shall also mean a named non-owner's automobile
21 policy.
22 Policy of automobile insurance does not apply to policies
23 of automobile insurance issued under the Illinois Automobile
24 Insurance Plan, to any policy covering garages, automobile
25 sales agencies, repair shops, service stations or public
26 parking place operation hazards.
27 (b) "Policy of fire and extended coverage insurance"
28 means a policy delivered or issued for delivery in this
29 State, that includes but is not limited to, the perils of
30 fire and extended coverage, and covers real property used
31 principally for residential purposes up to and including a 4
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1 family dwelling or any household or personal property that is
2 usual or incidental to the occupancy to any premises used for
3 residential purposes.
4 (c) "All other policies of personal lines" means any
5 other policy of insurance issued to a natural person for
6 personal or family protection.
7 (d) "Renewal" or "to renew" means (1) any change to an
8 entire line of business in accordance with subsection b-5 of
9 Section 143.17 and (2) the issuance and delivery by an
10 insurer of a policy superseding at the end of the policy
11 period a policy previously issued and delivered by the same
12 insurer or the issuance and delivery of a certificate or
13 notice extending the term of a policy beyond its policy
14 period or term; however, any successive policies issued by
15 the same insurer to the same insured, for the same or similar
16 coverage, shall be considered a renewal policy.
17 Any policy with a policy period or term of less than 6
18 months or any policy with no fixed expiration date shall be
19 considered as if written for successive policy periods or
20 terms of 6 months for the purpose of "renewal" or "to renew"
21 as defined in this paragraph (d) and for the purpose of any
22 non-renewal notice required by Section 143.17 of this Code.
23 (e) "Nonpayment of premium" means failure of the named
24 insured to discharge, when due, any of his obligations in
25 connection with the payment of premiums or any installment of
26 such premium that is payable directly to the insurer or to
27 its agent. Premium shall mean the premium that is due for an
28 individual policy which shall not include any membership dues
29 or other consideration required to be a member of any
30 organization in order to be eligible for such policy.
31 (f) "A policy delivered or issued for delivery in this
32 State" shall include but not be limited to all binders of
33 insurance, whether written or oral, and all applications
34 bound for future delivery by a duly licensed resident agent.
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1 A written binder of insurance issued for a term of 60 days or
2 less, which contains on its face a specific inception and
3 expiration date and which a copy has been furnished to the
4 insured, shall not be subject to the non-renewal requirements
5 of Section 143.17 of this Code.
6 (g) "Cancellation" or "cancelled" means the termination
7 of a policy by an insurer prior to the expiration date of the
8 policy. A policy of automobile or fire and extended coverage
9 insurance which expires by its own terms on the policy
10 expiration date unless advance premiums are received by the
11 insurer for succeeding policy periods shall not be considered
12 "cancelled" or a "cancellation" effected by the insurer in
13 the event such premiums are not paid on or before the policy
14 expiration date.
15 (h) "Commercial excess and umbrella liability policy"
16 means a policy written over one or more underlying policies
17 for an insured:
18 (1) that has at least 25 full-time employees at the
19 time the commercial excess and umbrella liability policy
20 is written and procures the insurance of any risk or
21 risks, other than life, accident and health, and annuity
22 contracts, as described in clauses (a) and (b) of Class 1
23 of Section 4 and clause (a) of Class 2 of Section 4, by
24 use of the services of a full-time employee acting as an
25 insurance manager or buyer; or
26 (2) whose aggregate annual premiums for all
27 property and casualty insurance on all risks is at least
28 $50,000.
29 (Source: P.A. 86-437; 87-1020.)
30 (215 ILCS 5/143.17) (from Ch. 73, par. 755.17)
31 Sec. 143.17. Notice of intention not to renew.
32 a. No company shall fail to renew any policy of
33 insurance, as defined in subsections (a), (b), (c), and (h)
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1 of Section 143.13, to which Section 143.11 applies, unless it
2 shall send by mail to the named insured at least 30 days
3 advance notice of its intention not to renew. The company
4 shall maintain proof of mailing of such notice on a
5 recognized U.S. Post Office form or a form acceptable to the
6 U. S. Post Office or other commercial mail delivery service.
7 An exact and unaltered copy of such notice shall also be sent
8 to the insured's broker, if known, or the agent of record and
9 to the mortgagee or lien holder at the last mailing address
10 known by the company. However, where cancellation is for
11 nonpayment of premium, the notice of cancellation must be
12 mailed at least 10 days before the effective date of the
13 cancellation.
14 b. This Section does not apply if the company has
15 manifested its willingness to renew directly to the named
16 insured. Such written notice shall specify the premium amount
17 payable, including any premium payment plan available, and
18 the name of any person or persons, if any, authorized to
19 receive payment on behalf of the company. If no person is so
20 authorized, the premium notice shall so state. The notice of
21 nonrenewal and the proof of mailing shall be effected on the
22 same date.
23 b-5. This Section does not apply if the company
24 manifested its willingness to renew directly to the named
25 insured. However, no company may impose changes in
26 deductibles or coverage for any policy forms applicable to an
27 entire line of business enumerated in subsections (a), (b),
28 (c), and (h) of Section 143.13 to which Section 143.11
29 applies unless the company mails to the named insured written
30 notice of the change in deductible or coverage at least 60
31 days prior to the renewal or anniversary date. An exact and
32 unaltered copy of the notice shall also be sent to the
33 insured's broker, if known, or the agent of record.
34 c. Should a company fail to comply with (a) or (b) of
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1 this Section, the policy shall terminate only on the
2 effective date of any similar insurance procured by the
3 insured with respect to the same subject or location
4 designated in both policies.
5 d. Renewal of a policy does not constitute a waiver or
6 estoppel with respect to grounds for cancellation which
7 existed before the effective date of such renewal.
8 e. In all notices of intention not to renew any policy
9 of insurance, as defined in Section 143.11 the company shall
10 provide a specific explanation of the reasons for nonrenewal.
11 (Source: P.A. 89-669, eff. 1-1-97.)
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