policy covering losses from flood to residential property,
other than commercial property insurance, written in this
State by any insurer authorized to do business that is not
written to apply coverage in excess of the coverage provided
under another flood insurance policy, whether issued by a
private insurer or the National Flood Insurance Program.
The coverage for residential properties
required to have flood insurance that are in a special flood
hazard area designated by the Federal Emergency Management
Agency shall meet the private flood insurance requirements
specified in subsection (b) of 42 U.S.C. 4012a and applicable
Regulatory notice of intent.
(1) notify the Department of plans to sell primary
residential flood insurance products in accordance with
the State's rate filing laws at least 30 days before
writing primary residential flood insurance in this State;
(2) obtain the approval of the Director of Insurance
for a plan of operation or material revisions to such
plan, including plans to sell primary residential flood
Notice to consumers.
(a) If a consumer currently has no coverage under the
National Flood Insurance Program, the consumer applicant must
be informed of the existence of the National Flood Insurance
Program before being placed with private flood insurance.
(b) All consumers must be informed that the coverage under
the National Flood Insurance Program may be provided at a
subsidized rate and that the full-risk rate for flood
insurance may apply to the property if the applicant later
seeks to reinstate coverage under the program. The insurance
producer, the surplus lines broker, or the insurer, upon its
election or if there is no insurance producer or surplus lines
broker, must provide the notice under subsection (a).
(c) This Section only applies if the applicant lives in a
special flood hazard area. This Section is inoperative if
federal legislation is enacted allowing the insured to switch
between private flood insurance and National Flood Insurance
Program coverage without risk of penalty.
(a) With respect to the regulation of private flood
insurance coverage written in this State by authorized
insurers, this Section supersedes any other provision of the
Illinois Insurance Code in the event of a conflict.
(b) An insurer shall certify that the insurance policy
meets the definition of "private flood insurance", as