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| 1 | AMENDMENT TO SENATE BILL 2112
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| 2 | AMENDMENT NO. ______. Amend Senate Bill 2112 by replacing | ||||||
| 3 | everything after the enacting clause with the following:
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| 4 | "Section 5. The Illinois Insurance Code is amended by | ||||||
| 5 | adding 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 | ||||||
| 9 | contract on or after January 1, 2022 shall notify an | ||||||
| 10 | applicant, in writing on a form prescribed by the company at | ||||||
| 11 | the time of application for the policy, of the applicant's | ||||||
| 12 | right to designate a secondary addressee to receive notice of | ||||||
| 13 | cancellation of the policy based on nonpayment of premium. The | ||||||
| 14 | applicant may make such designation at the time of application | ||||||
| 15 | for such policy or at any time such policy is in force by | ||||||
| 16 | submitting a written notice to the insurer containing the name | ||||||
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| 1 | and address of the secondary addressee. | ||||||
| 2 | (b) The insurer's transmission to a secondary addressee of | ||||||
| 3 | a copy of a notice of cancellation based on nonpayment of | ||||||
| 4 | premium shall be in addition to the transmission of the | ||||||
| 5 | original document to the policyholder. The copy of the notice | ||||||
| 6 | of cancellation transmitted to the secondary addressee shall | ||||||
| 7 | be made in the same manner and form required for the | ||||||
| 8 | transmission of the notice to the policyholder. | ||||||
| 9 | (c) The designation of a secondary addressee shall not | ||||||
| 10 | constitute acceptance of any liability on the part of the | ||||||
| 11 | secondary addressee or insurer for services provided to the | ||||||
| 12 | policyholder. | ||||||
| 13 | (d) This Section does not apply to any individual life | ||||||
| 14 | insurance contract under which premiums are payable monthly or | ||||||
| 15 | more frequently and are regularly collected by a licensed | ||||||
| 16 | agent or are paid by credit card or any preauthorized check | ||||||
| 17 | processing or automatic debit service of a financial | ||||||
| 18 | institution. | ||||||
| 19 | (e) Nothing in this Section shall prohibit an applicant or | ||||||
| 20 | policyholder from designating a life insurance agent of record | ||||||
| 21 | as his or her secondary addressee.
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| 22 | Section 99. Effective date. This Act takes effect January | ||||||
| 23 | 1, 2022.".
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