Illinois General Assembly - Full Text of HB2739
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Full Text of HB2739  102nd General Assembly

HB2739enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB2739 EnrolledLRB102 12791 BMS 18130 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 1. Short title. This Act may be cited as the
5Private Primary Residential Flood Insurance Act.
 
6    Section 3. Purpose. To provide protection of lives and
7property from the peril of flood, this Act is designed to
8encourage a robust private primary residential flood insurance
9market to provide consumer choices and alternatives to the
10existing National Flood Insurance Program.
 
11    Section 5. Definitions. As used in this Act:
12    "Authorized insurer" means an insurer that is authorized
13by the Department of Insurance to write insurance under a
14certificate of authority issued by the Department of Insurance
15to transact insurance in this State.
16    "Department" means the Department of Insurance.
17    "National Flood Insurance Program" means the program of
18flood insurance coverage and floodplain management
19administered under the National Flood Insurance Act of 1968
20(42 U.S.C. 4001 et seq.) and applicable federal regulations
21promulgated in Title 44 of the Code of Federal Regulations.
22    "Primary residential flood insurance" means an insurance

 

 

HB2739 Enrolled- 2 -LRB102 12791 BMS 18130 b

1policy covering losses from flood to residential property,
2other than commercial property insurance, written in this
3State by any insurer authorized to do business that is not
4written to apply coverage in excess of the coverage provided
5under another flood insurance policy, whether issued by a
6private insurer or the National Flood Insurance Program.
 
7    Section 10. Forms. The coverage for residential properties
8required to have flood insurance that are in a special flood
9hazard area designated by the Federal Emergency Management
10Agency shall meet the private flood insurance requirements
11specified in subsection (b) of 42 U.S.C. 4012a and applicable
12federal regulations.
 
13    Section 15. Regulatory notice of intent. Authorized
14insurers must:
15        (1) notify the Department of plans to sell primary
16    residential flood insurance products in accordance with
17    the State's rate filing laws at least 30 days before
18    writing primary residential flood insurance in this State;
19    and
20        (2) obtain the approval of the Director of Insurance
21    for a plan of operation or material revisions to such
22    plan, including plans to sell primary residential flood
23    insurance.
 

 

 

HB2739 Enrolled- 3 -LRB102 12791 BMS 18130 b

1    Section 20. Notice to consumers.
2    (a) If a consumer currently has no coverage under the
3National Flood Insurance Program, the consumer applicant must
4be informed of the existence of the National Flood Insurance
5Program before being placed with private flood insurance.
6    (b) All consumers must be informed that the coverage under
7the National Flood Insurance Program may be provided at a
8subsidized rate and that the full-risk rate for flood
9insurance may apply to the property if the applicant later
10seeks to reinstate coverage under the program. The insurance
11producer, the surplus lines broker, or the insurer, upon its
12election or if there is no insurance producer or surplus lines
13broker, must provide the notice under subsection (a).
14    (c) This Section only applies if the applicant lives in a
15special flood hazard area. This Section is inoperative if
16federal legislation is enacted allowing the insured to switch
17between private flood insurance and National Flood Insurance
18Program coverage without risk of penalty.
 
19    Section 25. Other provisions.
20    (a) With respect to the regulation of private flood
21insurance coverage written in this State by authorized
22insurers, this Section supersedes any other provision of the
23Illinois Insurance Code in the event of a conflict.
24    (b) An insurer shall certify that the insurance policy
25meets the definition of "private flood insurance", as

 

 

HB2739 Enrolled- 4 -LRB102 12791 BMS 18130 b

1specified in paragraph (7) of subsection (b) of 42 U.S.C.
24012a and applicable federal regulations.
3    (c) Nothing in this Act is intended to restrict the use of
4existing filings by an insurer or limit the ability of private
5insurers to provide flood insurance coverage of any type not
6addressed in this Act.
 
7    Section 30. Rules. The Department may adopt rules to
8implement this Act.