SB2112 EngrossedLRB102 11322 BMS 16655 b


  
1    AN ACT concerning regulation.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  


 
4    Section 5. The Illinois Insurance Code is amended  by 
5adding Section 235.1 as follows:
 
6    (215 ILCS 5/235.1 new)
7    Sec. 235.1. Notice of cancellation; secondary addressee.
8    (a)   A life company issuing an individual life insurance 
9contract on or after January 1, 2022 shall notify an 
10applicant, in writing on a form prescribed by the company at 
11the time of application for the policy, of the applicant's 
12right to designate a secondary addressee to receive notice of 
13cancellation of the policy based on nonpayment of premium.  The 
14applicant may make such designation at the time of application 
15for such policy or at any time such policy is in force by 
16submitting a written notice to the insurer containing the name 
17and address of the secondary addressee.
18    (b)   The insurer's transmission to a secondary addressee of 
19a copy of a notice of cancellation based on nonpayment of 
20premium shall be in addition to the transmission of the 
21original document to the policyholder.  The copy of the notice 
22of cancellation transmitted to the secondary addressee shall 
23be made in the same manner and form required for the 
 
 
SB2112 Engrossed- 2 -LRB102 11322 BMS 16655 b

1transmission of the notice to the policyholder.
2    (c)   The designation of a secondary addressee shall not 
3constitute acceptance of any liability on the part of the 
4secondary addressee or insurer for services provided to the 
5policyholder.
6    (d)   This Section does not apply to any individual life 
7insurance contract under which premiums are payable monthly or 
8more frequently and are regularly collected by a licensed 
9agent or are paid by credit card or any preauthorized check 
10processing or automatic debit service of a financial 
11institution.
12    (e)   Nothing in this Section shall prohibit an applicant or 
13policyholder from designating a life insurance agent of record 
14as his or her secondary addressee.

 
15    Section 99. Effective date. This Act takes effect January 
161, 2022.