102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1588

 

Introduced 2/26/2021, by Sen. Laura Fine

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/424  from Ch. 73, par. 1031
215 ILCS 5/500-109 new

    Amends the Illinois Insurance Code. Provides that, except in specified circumstances, insurance companies offering travel insurance to residents of this State are subject to provisions of the Code concerning unfair methods of competition and unfair or deceptive acts or practices. Requires that all documents provided to consumers prior to the purchase of travel insurance, including, but not limited to, sales materials, advertising materials, and marketing materials, are consistent with the travel insurance policy itself, including, but not limited to, forms, endorsements, policies, rate filings, and certificates of insurance. For travel insurance policies or certificates that contain preexisting condition exclusions, provides that information in writing about the exclusions shall be located in a conspicuous place and an opportunity to learn more about the preexisting condition exclusions shall be provided at any time prior to the time of purchase, immediately following, but no later than 5 business days following, the purchase, and in the coverage's fulfillment materials. Unless the insured has either started a covered trip or filed a claim under the travel insurance coverage, allows a policyholder or certificate holder to cancel a policy or certificate for a full refund of the travel protection plan price within specified time frames. Requires the insurance company to disclose in the policy documentation and fulfillment materials whether the travel insurance is primary or secondary to other applicable coverage. Effective immediately.


LRB102 13159 BMS 18502 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1588LRB102 13159 BMS 18502 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
5changing Section 424 and by adding Section 500-109 as follows:
 
6    (215 ILCS 5/424)  (from Ch. 73, par. 1031)
7    Sec. 424. Unfair methods of competition and unfair or
8deceptive acts or practices defined. The following are hereby
9defined as unfair methods of competition and unfair and
10deceptive acts or practices in the business of insurance:
11        (1) The commission by any person of any one or more of
12    the acts defined or prohibited by Sections 134, 143.24c,
13    147, 148, 149, 151, 155.22, 155.22a, 155.42, 236, 237,
14    364, and 469, and 500-109 of this Code.
15        (2) Entering into any agreement to commit, or by any
16    concerted action committing, any act of boycott, coercion
17    or intimidation resulting in or tending to result in
18    unreasonable restraint of, or monopoly in, the business of
19    insurance.
20        (3) Making or permitting, in the case of insurance of
21    the types enumerated in Classes 1, 2, and 3 of Section 4,
22    any unfair discrimination between individuals or risks of
23    the same class or of essentially the same hazard and

 

 

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1    expense element because of the race, color, religion, or
2    national origin of such insurance risks or applicants. The
3    application of this Article to the types of insurance
4    enumerated in Class 1 of Section 4 shall in no way limit,
5    reduce, or impair the protections and remedies already
6    provided for by Sections 236 and 364 of this Code or any
7    other provision of this Code.
8        (4) Engaging in any of the acts or practices defined
9    in or prohibited by Sections 154.5 through 154.8 of this
10    Code.
11        (5) Making or charging any rate for insurance against
12    losses arising from the use or ownership of a motor
13    vehicle which requires a higher premium of any person by
14    reason of his physical disability, race, color, religion,
15    or national origin.
16        (6) Failing to meet any requirement of the Unclaimed
17    Life Insurance Benefits Act with such frequency as to
18    constitute a general business practice.
19(Source: P.A. 99-143, eff. 7-27-15; 99-893, eff. 1-1-17.)
 
20    (215 ILCS 5/500-109 new)
21    Sec. 500-109. Travel insurance marketing.
22    (a) As used in this Section, "fulfillment materials" means
23the documentation sent to the purchaser of a travel protection
24plan confirming the purchase and providing the travel
25protection plan's coverage and assistance details.

 

 

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1    (b) Except as otherwise provided in this Section,
2insurance companies offering travel insurance to residents of
3this State are subject to Article XXVI of this Code. In the
4event of a conflict between this Section and other provisions
5of this Code regarding the sale and marketing of travel
6insurance and travel protection plans, the provisions of this
7Section shall control.
8    (c) All documents provided to consumers prior to the
9purchase of travel insurance, including, but not limited to,
10sales materials, advertising materials, and marketing
11materials, shall be consistent with the travel insurance
12policy itself, including, but not limited to, forms,
13endorsements, policies, rate filings, and certificates of
14insurance.
15    (d) For travel insurance policies or certificates that
16contain preexisting condition exclusions, information in
17writing about the exclusions shall be located in a conspicuous
18place and an opportunity to learn more about the preexisting
19condition exclusions shall be provided at any time prior to
20the time of purchase, immediately following, but no later than
215 business days following, the purchase, and in the coverage's
22fulfillment materials.
23    (e) Unless the insured has either started a covered trip
24or filed a claim under the travel insurance coverage, a
25policyholder or certificate holder may cancel a policy or
26certificate for a full refund of the travel protection plan

 

 

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1price from the date of purchase of a travel protection plan
2until at least:
3        (1) 15 days following the date of delivery of the
4    travel protection plan's fulfillment materials by United
5    States mail or in person; or
6        (2) 10 days following the date of delivery of the
7    travel protection plan's fulfillment materials by
8    electronic means.
9        For the purposes of paragraphs (1) and (2) of this
10subsection (e), "delivery" means handing in person fulfillment
11materials to the policyholder or certificate holder or sending
12fulfillment materials by United States mail or electronic
13means to the policyholder or certificate holder.
14    (f) The insurance company shall disclose in the policy
15documentation and fulfillment materials whether the travel
16insurance is primary or secondary to other applicable
17coverage.
18    (g) When travel insurance is marketed directly to a
19consumer through an travel insurance company's website or by
20others through an aggregator website, the travel insurance
21company shall not be subject to Article XXVI of this Code or
22any other law if an accurate summary or short description of
23coverage is provided on the webpage, so long as the consumer
24has access to the full provisions of the policy through
25electronic means.
 
26    Section 99. Effective date. This Act takes effect upon

 

 

SB1588- 5 -LRB102 13159 BMS 18502 b

1becoming law.