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90_SB1900
215 ILCS 5/513a9 from Ch. 73, par. 1065.60a9
Amends the Illinois Insurance Code. Removes statutory
language providing that a premium finance company that pays
financed premiums to an insurance producer establishes the
producer as the agent of the premium finance company for
payment of the premium and for receipt of any return premium.
Effective immediately.
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1 AN ACT to amend the Illinois Insurance Code by changing
2 Section 513a9.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 changing Section 513a9 as follows:
7 (215 ILCS 5/513a9) (from Ch. 73, par. 1065.60a9)
8 Sec. 513a9. Premium finance agreement.
9 (a) A premium finance agreement must be dated and signed
10 by or on behalf of the named insured, and the printed portion
11 shall be in at least 8-point type. The following items must
12 be set forth on the first page of the accepted finance
13 agreement:
14 (1) the total amount of the premiums;
15 (2) the amount of the down payment;
16 (3) the principal balance (the difference between
17 items (1) and (2));
18 (4) the amount of the finance charges expressed in
19 dollars and as an annual percentage rate;
20 (5) the balance payable by the insured (sum of
21 items (3) and (4));
22 (6) the number of installments, the due dates
23 thereof, and the amount of each installment expressed in
24 dollars; and
25 (7) the policy numbers or binder numbers.
26 (b) The premium finance company is required to furnish
27 full and complete disclosure of the terms and conditions of
28 the premium finance agreement including, but not limited to,
29 the specific insurance coverages financed to the named
30 insured no later than the date that the first premium payment
31 notice is sent to the insured.
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1 (c) As to policies written primarily for personal,
2 family, or household use, the premium finance company must:
3 (1) deliver or mail the premium check or checks in
4 the amount of the principal balance directly to the
5 insurer or insurers unless the insurer or insurers have
6 given written authority to the premium finance company to
7 deliver the checks to the producer;
8 (2) issue the premium check or checks payable to
9 the insurer, insurers, or, if the insurer gives written
10 authority to the premium finance company, to the
11 producer; and
12 (3) properly identify the premium check or checks
13 by policy number or binder number when the premium is
14 paid to the insurer or insurers.
15 (d) As to all other policies the premium finance company
16 may:
17 (1) deliver or mail the premium check or checks in
18 the amount of the principal balance directly to the
19 producer; and
20 (2) issue the premium check or checks payable to
21 the producer.
22 (e) A premium finance company that pays the financed
23 premium to the producer pursuant to subsection (d)
24 establishes the producer as the agent of the premium finance
25 company for payment of the premium and for receipt of any
26 return premium.
27 (Source: P.A. 89-265, eff. 1-1-96; 90-381, eff. 8-14-97.)
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.