Public Act 102-0542
 
SB2112 EnrolledLRB102 11322 BMS 16655 b


  
    AN ACT concerning regulation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Illinois Insurance Code is amended  by 
adding Section 235.1 as follows:
 
    (215 ILCS 5/235.1 new)
    Sec. 235.1. Notice of cancellation; secondary addressee.
    (a)   A life company issuing an individual life insurance 
contract on or after January 1, 2022 shall notify an 
applicant, in writing on a form prescribed by the company at 
the time of application for the policy, of the applicant's 
right to designate a secondary addressee to receive notice of 
cancellation of the policy based on nonpayment of premium.  The 
applicant may make such designation at the time of application 
for such policy or at any time such policy is in force by 
submitting a written notice to the insurer containing the name 
and address of the secondary addressee.
    (b)   The insurer's transmission to a secondary addressee of 
a copy of a notice of cancellation based on nonpayment of 
premium shall be in addition to the transmission of the 
original document to the policyholder.  The copy of the notice 
of cancellation transmitted to the secondary addressee shall 
be made in the same manner and form required for the 
transmission of the notice to the policyholder.
    (c)   The designation of a secondary addressee shall not 
constitute acceptance of any liability on the part of the 
secondary addressee or insurer for services provided to the 
policyholder.
    (d)   This Section does not apply to any individual life 
insurance contract under which premiums are payable monthly or 
more frequently and are regularly collected by a licensed 
agent or are paid by credit card or any preauthorized check 
processing or automatic debit service of a financial 
institution.
    (e)   Nothing in this Section shall prohibit an applicant or 
policyholder from designating a life insurance agent of record 
as his or her secondary addressee.

 
    Section 99. Effective date. This Act takes effect January 
1, 2022.