Illinois General Assembly - Full Text of HB2739
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of HB2739  102nd General Assembly

HB2739ham001 102ND GENERAL ASSEMBLY

Rep. Thaddeus Jones

Filed: 4/16/2021

 

 


 

 


 
10200HB2739ham001LRB102 12791 BMS 25161 a

1
AMENDMENT TO HOUSE BILL 2739

2    AMENDMENT NO. ______. Amend House Bill 2739 by replacing
3everything after the enacting clause with the following:
 
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.

 

 

10200HB2739ham001- 2 -LRB102 12791 BMS 25161 a

1    "Department" means the Department of Insurance.
2    "National Flood Insurance Program" means the program of
3flood insurance coverage and floodplain management
4administered under the National Flood Insurance Act of 1968
5(42 U.S.C. 4001 et seq.) and applicable federal regulations
6promulgated in Title 44 of the Code of Federal Regulations.
7    "Primary residential flood insurance" means an insurance
8policy covering losses from flood to residential property,
9other than commercial property insurance, written in this
10State by any insurer authorized to do business that is not
11written to apply coverage in excess of the coverage provided
12under another flood insurance policy, whether issued by a
13private insurer or the National Flood Insurance Program.
 
14    Section 10. Forms. The coverage for residential properties
15required to have flood insurance that are in a special flood
16hazard area designated by the Federal Emergency Management
17Agency shall meet the private flood insurance requirements
18specified in subsection (b) of 42 U.S.C. 4012a and applicable
19federal regulations.
 
20    Section 15. Regulatory notice of intent. Authorized
21insurers must:
22        (1) notify the Department of plans to sell primary
23    residential flood insurance products in accordance with
24    the State's rate filing laws at least 30 days before

 

 

10200HB2739ham001- 3 -LRB102 12791 BMS 25161 a

1    writing primary residential flood insurance in this State;
2    and
3        (2) obtain the approval of the Director of Insurance
4    for a plan of operation or material revisions to such
5    plan, including plans to sell primary residential flood
6    insurance.
 
7    Section 20. Notice to consumers.
8    (a) If a consumer currently has no coverage under the
9National Flood Insurance Program, the consumer applicant must
10be informed of the existence of the National Flood Insurance
11Program before being placed with private flood insurance.
12    (b) All consumers must be informed that the coverage under
13the National Flood Insurance Program may be provided at a
14subsidized rate and that the full-risk rate for flood
15insurance may apply to the property if the applicant later
16seeks to reinstate coverage under the program. The insurance
17producer, the surplus lines broker, or the insurer, upon its
18election or if there is no insurance producer or surplus lines
19broker, must provide the notice under subsection (a).
20    (c) This Section only applies if the applicant lives in a
21special flood hazard area. This Section is inoperative if
22federal legislation is enacted allowing the insured to switch
23between private flood insurance and National Flood Insurance
24Program coverage without risk of penalty.
 

 

 

10200HB2739ham001- 4 -LRB102 12791 BMS 25161 a

1    Section 25. Other provisions.
2    (a) With respect to the regulation of private flood
3insurance coverage written in this State by authorized
4insurers, this Section supersedes any other provision of the
5Illinois Insurance Code in the event of a conflict.
6    (b) An insurer shall certify that the insurance policy
7meets the definition of "private flood insurance", as
8specified in paragraph (7) of subsection (b) of 42 U.S.C.
94012a and applicable federal regulations.
10    (c) Nothing in this Act is intended to restrict the use of
11existing filings by an insurer or limit the ability of private
12insurers to provided flood insurance coverage of any type not
13addressed in this Act.
 
14    Section 30. Rules. The Department may adopt rules to
15implement this Act.".