(215 ILCS 5/155.56) (from Ch. 73, par. 767.56)
Sec. 155.56.
Provisions of policies and certificates of insurance; disclosure to debtors.
(a) All credit life insurance and credit accident and health insurance
sold shall be evidenced by an individual policy, or in the case of group
insurance by a certificate of insurance, which individual policy or group
certificate of insurance shall be delivered to the debtor.
(b) Each individual policy or group certificate of credit life
insurance, and/or credit accident and health insurance shall, in addition
to other requirements of law, set forth, the name and home office address
of the insurer, and the identity by name or otherwise of the person or
persons insured, the rate or amount of payment, if any, by the debtor
separately for credit life insurance and credit accident and health
insurance, a description of the amount, term and coverage including any
exceptions, limitations or restrictions, and shall state that the benefits
shall be paid to the creditor to reduce or extinguish the unpaid
indebtedness and, wherever the amount of insurance may exceed the unpaid
indebtedness, that any such excess shall be payable to a beneficiary, other
than the creditor, named by the debtor or to his estate.
(c) Said individual policy or group certificate of insurance shall be
delivered to the insured debtor at the time the indebtedness is incurred
except as hereinafter provided.
(d) If said individual policy or group certificate of insurance is not
delivered to the debtor at the time the indebtedness is incurred, a copy of
the application for such policy or a notice of proposed insurance, signed
by the debtor and setting forth the name and home office address of the
insurer, the identity by name or otherwise of the person or persons
insured, the rate or amount of payment by the debtor, if any, separately
for credit life insurance and credit accident and health insurance, a
description of the amount, term and coverage provided, shall be delivered
to the debtor at the time such indebtedness is incurred. The copy of the
application for, or notice of proposed insurance shall refer exclusively to
insurance coverage, and shall be separate and apart from the loan, sale or
other credit statement of account, instrument or agreement, unless the
information required by this subsection is prominently set forth therein.
Upon acceptance of the insurance by the insurer and within 30 days of the
date upon which the indebtedness is incurred, the insurer shall cause the
individual policy or group certificate of insurance to be delivered to the
debtor. Said application or notice of proposed insurance shall state that
upon acceptance by the insurer, the insurance shall become effective as
provided in Section 155.55.
(Source: Laws 1959, p. 1140.)
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