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.