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| [ House Amendment 002 ] |
91_SB1024sam001
LRB9103039JSpcam
1 AMENDMENT TO SENATE BILL 1024
2 AMENDMENT NO. . Amend Senate Bill 1024 by replacing
3 the title with the following:
4 "AN ACT to amend the Illinois Insurance Code by changing
5 Sections 143.13 and 143.17 and adding Section 143.11b."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Insurance Code is amended by
9 changing Sections 143.13 and 143.17 and adding Section
10 143.11b as follows:
11 (215 ILCS 5/143.11b new)
12 Sec. 143.11b. Assignment or transfer of property and
13 casualty policy. An assignment or transfer of a policy of
14 insurance to which Section 143.11 applies among insurers
15 within an insurance holding company system or as a result of
16 a merger, acquisition, or company restructuring is not a
17 cancellation or nonrenewal for purposes of the notification
18 requirements in Section 143.12 through 143.24. If the
19 assignment or transfer results in an increase in the premium
20 of 30% or more or in changes in deductibles or coverage that
21 materially alter the policy, the company shall mail to the
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1 named insured written notice of the increase or change at
2 least 60 days prior to the anniversary date. An exact and
3 unaltered copy of the notice shall also be sent to the
4 insured's broker, if known, or the agent of record.
5 (215 ILCS 5/143.13) (from Ch. 73, par. 755.13)
6 Sec. 143.13. Definition of terms used in Sections 143.11
7 through 143.24.
8 (a) "Policy of automobile insurance" means a policy
9 delivered or issued for delivery in this State, insuring a
10 natural person as named insured or one or more related
11 individuals resident of the same household and under which
12 the insured vehicles therein designated are motor vehicles of
13 the private passenger, station wagon, or any other 4-wheeled
14 motor vehicle with a load capacity of 1500 pounds or less
15 which is not used in the occupation, profession or business
16 of the insured or not used as a public or livery conveyance
17 for passengers nor rented to others. Policy of automobile
18 insurance shall also mean a named non-owner's automobile
19 policy.
20 Policy of automobile insurance does not apply to policies
21 of automobile insurance issued under the Illinois Automobile
22 Insurance Plan, to any policy covering garages, automobile
23 sales agencies, repair shops, service stations or public
24 parking place operation hazards.
25 (b) "Policy of fire and extended coverage insurance"
26 means a policy delivered or issued for delivery in this
27 State, that includes but is not limited to, the perils of
28 fire and extended coverage, and covers real property used
29 principally for residential purposes up to and including a 4
30 family dwelling or any household or personal property that is
31 usual or incidental to the occupancy to any premises used for
32 residential purposes.
33 (c) "All other policies of personal lines" means any
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1 other policy of insurance issued to a natural person for
2 personal or family protection.
3 (d) "Renewal" or "to renew" means (1) any change to an
4 entire line of business in accordance with subsection b-5 of
5 Section 143.17 and (2) the issuance and delivery by an
6 insurer of a policy superseding at the end of the policy
7 period a policy previously issued and delivered by the same
8 insurer or the issuance and delivery of a certificate or
9 notice extending the term of a policy beyond its policy
10 period or term; however, any successive policies issued by
11 the same insurer to the same insured, for the same or similar
12 coverage, shall be considered a renewal policy.
13 Any policy with a policy period or term of less than 6
14 months or any policy with no fixed expiration date shall be
15 considered as if written for successive policy periods or
16 terms of 6 months for the purpose of "renewal" or "to renew"
17 as defined in this paragraph (d) and for the purpose of any
18 non-renewal notice required by Section 143.17 of this Code.
19 (e) "Nonpayment of premium" means failure of the named
20 insured to discharge, when due, any of his obligations in
21 connection with the payment of premiums or any installment of
22 such premium that is payable directly to the insurer or to
23 its agent. Premium shall mean the premium that is due for an
24 individual policy which shall not include any membership dues
25 or other consideration required to be a member of any
26 organization in order to be eligible for such policy.
27 (f) "A policy delivered or issued for delivery in this
28 State" shall include but not be limited to all binders of
29 insurance, whether written or oral, and all applications
30 bound for future delivery by a duly licensed resident agent.
31 A written binder of insurance issued for a term of 60 days or
32 less, which contains on its face a specific inception and
33 expiration date and which a copy has been furnished to the
34 insured, shall not be subject to the non-renewal requirements
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1 of Section 143.17 of this Code.
2 (g) "Cancellation" or "cancelled" means the termination
3 of a policy by an insurer prior to the expiration date of the
4 policy. A policy of automobile or fire and extended coverage
5 insurance which expires by its own terms on the policy
6 expiration date unless advance premiums are received by the
7 insurer for succeeding policy periods shall not be considered
8 "cancelled" or a "cancellation" effected by the insurer in
9 the event such premiums are not paid on or before the policy
10 expiration date.
11 (h) "Commercial excess and umbrella liability policy"
12 means a policy written over one or more underlying policies
13 for an insured:
14 (1) that has at least 25 full-time employees at the
15 time the commercial excess and umbrella liability policy
16 is written and procures the insurance of any risk or
17 risks, other than life, accident and health, and annuity
18 contracts, as described in clauses (a) and (b) of Class 1
19 of Section 4 and clause (a) of Class 2 of Section 4, by
20 use of the services of a full-time employee acting as an
21 insurance manager or buyer; or
22 (2) whose aggregate annual premiums for all
23 property and casualty insurance on all risks is at least
24 $50,000.
25 (Source: P.A. 86-437; 87-1020.)
26 (215 ILCS 5/143.17) (from Ch. 73, par. 755.17)
27 Sec. 143.17. Notice of intention not to renew.
28 a. No company shall fail to renew any policy of
29 insurance, as defined in subsections (a), (b), (c), and (h)
30 of Section 143.13, to which Section 143.11 applies, unless it
31 shall send by mail to the named insured at least 30 days
32 advance notice of its intention not to renew. The company
33 shall maintain proof of mailing of such notice on a
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1 recognized U.S. Post Office form or a form acceptable to the
2 U. S. Post Office or other commercial mail delivery service.
3 An exact and unaltered copy of such notice shall also be sent
4 to the insured's broker, if known, or the agent of record and
5 to the mortgagee or lien holder at the last mailing address
6 known by the company. However, where cancellation is for
7 nonpayment of premium, the notice of cancellation must be
8 mailed at least 10 days before the effective date of the
9 cancellation.
10 b. This Section does not apply if the company has
11 manifested its willingness to renew directly to the named
12 insured. Such written notice shall specify the premium amount
13 payable, including any premium payment plan available, and
14 the name of any person or persons, if any, authorized to
15 receive payment on behalf of the company. If no person is so
16 authorized, the premium notice shall so state. The notice of
17 nonrenewal and the proof of mailing shall be effected on the
18 same date.
19 b-5. This Section does not apply if the company
20 manifested its willingness to renew directly to the named
21 insured. However, no company may impose changes in
22 deductibles or coverage for any policy forms applicable to an
23 entire line of business enumerated in subsections (a), (b),
24 (c), and (h) of Section 143.13 to which Section 143.11
25 applies unless the company mails to the named insured written
26 notice of the change in deductible or coverage at least 60
27 days prior to the renewal or anniversary date. An exact and
28 unaltered copy of the notice shall also be sent to the
29 insured's broker, if known, or the agent of record.
30 c. Should a company fail to comply with (a) or (b) of
31 this Section, the policy shall terminate only on the
32 effective date of any similar insurance procured by the
33 insured with respect to the same subject or location
34 designated in both policies.
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1 d. Renewal of a policy does not constitute a waiver or
2 estoppel with respect to grounds for cancellation which
3 existed before the effective date of such renewal.
4 e. In all notices of intention not to renew any policy
5 of insurance, as defined in Section 143.11 the company shall
6 provide a specific explanation of the reasons for nonrenewal.
7 (Source: P.A. 89-669, eff. 1-1-97.)".