SB2699 104TH GENERAL ASSEMBLY

LRB104 15493 BAB 28655 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2699

Introduced 10/14/2025, by Sen. Michael E. Hastings and Meg Loughran Cappel

SYNOPSIS AS INTRODUCED:

215 ILCS 5/143.17

from Ch. 73, par. 755.17

Amends the Illinois Insurance Code. Provides that no company shall impose renewal premium increases of more than 10% for policies of fire and extended coverage insurance to which specified provisions apply. In a provision prohibiting a company from making changes in deductibles or coverage for any policy forms applicable to certain lines of business unless the company provides a specified notice, adds delivery by electronic means as a method for providing that notice. Provides that no company may impose renewal premium increases of more than 10% for policies of automobile insurance to which specified provisions apply unless the company mails to the named insured written notice or delivers notice by electronic means of the change in premium or change in deductible or coverage at least 30 days prior to the renewal. Effective January 1, 2028.

A BILL FOR

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 changing Section 143.17 as follows:

(215 ILCS 5/143.17) (from Ch. 73, par. 755.17)

Sec. 143.17. Notice of intention not to renew.

a. No company shall fail to renew any policy of insurance, as defined in subsections (a), (b), (c), and (h) of Section 143.13, to which Section 143.11 applies, unless it shall send by mail to the named insured at least 30 days advance notice of its intention not to renew. The company shall maintain proof of mailing of such notice on a recognized U.S. Post Office form or a form acceptable to the U. S. Post Office or other commercial mail delivery service. The nonrenewal shall not become effective until at least 30 days from the proof of mailing date of the notice to the name insured. Notification shall also be sent to the insured's broker, if known, or the agent of record, if known, and to the last known mortgagee or lien holder. For purposes of this Section, the mortgagee or lien holder, insured's broker, or the agent of record may opt to accept notification electronically. However, where cancellation is for nonpayment of premium, the notice of cancellation must be mailed at least 10 days before the effective date of the cancellation.

b. This Section does not apply if the company has manifested its willingness to renew directly to the named insured. Such written notice shall specify the premium amount payable, including any premium payment plan available, and the name of any person or persons, if any, authorized to receive payment on behalf of the company. If no person is so authorized, the premium notice shall so state.

b-5. This Section does not apply if the company manifested its willingness to renew directly to the named insured. However, no company may impose renewal premium increases of more than 10% for lines of business enumerated in subsection (b) of Section 143.13 to which Section 143.11 applies, and no company may impose changes in deductibles or coverage for any policy forms applicable to an entire line of business enumerated in subsections (a), (b), (c), and (h) of Section 143.13 to which Section 143.11 applies unless the company mails to the named insured written notice or delivers notice by electronic means in compliance with Section 143.34 of the change in deductible or coverage at least 60 days prior to the renewal or anniversary date.

No company may impose renewal premium increases of more than 10% for lines of business enumerated in subsection (a) of Section 143.13 to which Section 143.11 applies unless the company mails to the named insured written notice or delivers notice by electronic means in compliance with Section 143.34 of the change in premium or change in deductible or coverage at least 30 days prior to the renewal.

Notice shall also be sent to the insured's broker, if known, or the agent of record. For purposes of the written or electronically delivered notice required under this subsection, "renewal premium increase" does not include policyholder-initiated changes to coverage or exposure changes.

c. Should a company fail to comply with (a) or (b) of this Section, the policy shall terminate only on the effective date of any similar insurance procured by the insured with respect to the same subject or location designated in both policies.

d. Renewal of a policy does not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal.

e. In all notices of intention not to renew any policy of insurance, as defined in Section 143.11 the company shall provide the named insured a specific explanation of the reasons for nonrenewal.

f. For purposes of this Section, the insured's broker, if known, or the agent of record and the mortgagee or lien holder may opt to accept notification electronically.

(Source: P.A. 100-475, eff. 1-1-18.)

Section 99. Effective date. This Act takes effect January 1, 2028.