SB0776 Engrossed LRB094 10735 LJB 41145 b

1     AN ACT concerning State government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the
5 Military Service Members Mortgage Life Insurance Act.
 
6     Section 5. Purpose. The General Assembly finds that, for
7 the economic benefit of active duty military service members
8 having residence in the State of Illinois, it is important to
9 provide home-ownership security for those who are serving this
10 State and the country. The State of Illinois should help active
11 duty military service members procure mortgage life insurance
12 to guard against the loss of a residence in this State from the
13 inability to meet mortgage payments due to injuries or death as
14 a result of service in the military.
 
15     Section 10. Definitions. As used in this Act:
16     "Active duty" means any duty performed in the active
17 service of the United States Armed Forces in Iraq or
18 Afghanistan pursuant to the orders of the President of the
19 United States.
20     "Department" means the Department of Military Affairs.
21     "Mortgage life insurance" means insurance that will pay off
22 all or a portion of the remaining balance of a mortgage if the
23 policyholder dies prematurely or becomes critically ill or
24 injured.
25     "Service member" means a member of the Illinois National
26 Guard.
 
27     Section 15. Program. The Department shall establish a
28 program for service members who are called up to active duty to
29 assist individual service members in the procurement of
30 mortgage life insurance and payment of premiums to protect the

 

 

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1 service member from defaulting on a home mortgage due to
2 critical injury sustained or death or critical illness caused
3 as a result of active duty.
 
4     Section 20. Application.
5     (a) A service member seeking relief under this program
6 shall apply to the Department in writing and shall include the
7 following information:
8         (1) the name and address of the service member;
9         (2) the name and address of the bank or financial
10     institution holding the mortgage;
11         (3) the amount of the mortgage and the amount of the
12     monthly payment, including taxes; and
13         (4) any other information required by the Department.
14     (c) The Department shall provide written information to an
15 applicant, upon the applicant's request, explaining the
16 application process and detailing the purpose and function of
17 mortgage life insurance.
18     (d) The Department shall review each application and make a
19 determination within 30 days of the receipt of the application.
20     (e) The Department shall notify the applicant in writing of
21 the Department's decision regarding the application within 15
22 days of the determination.
 
23     Section 25. Payment. Upon approval of the application, the
24 Department shall procure mortgage life insurance for the
25 service member's mortgage in the name of the service member and
26 pay all premiums for the insurance.
 
27     Section 30. Notification of discharge from active duty;
28 assumption of premiums.
29     (a) A service member who has been accepted by the
30 Department for participation in the program established under
31 this Act must notify the Department of his or her discharge
32 from active duty within 3 months after the discharge.
33     (b) Within 6 months after the discharge of the service

 

 

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1 member from active duty, the Department shall notify the
2 mortgage life insurer that the mortgage life insurance will be
3 cancelled unless the service member (i) chooses to continue to
4 pay the premiums for the mortgage life insurance and (ii)
5 notifies the insurer within 2 months after receiving notice
6 from the Department pursuant to subsection (c) of this Section
7 that he or she intends to pay premiums for the mortgage life
8 insurance.
9     (c) The Department shall send a written notice to the
10 service member within 2 weeks after the Department provides the
11 notice to the insurer required under subsection (b) of this
12 Section notifying him or her that the mortgage life insurance
13 shall be cancelled unless the service member notifies the
14 insurer of his or her intent to continue paying premiums. The
15 notice required under this subsection (c) shall inform the
16 service member that notice must be sent to the insurer within 2
17 months after the service member receives notice from the
18 Department.
 
19     Section 35. Rules. The Department shall adopt rules
20 necessary to carry out the provisions of this Act.