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91_HB1697
LRB9100985JSpcA
1 AN ACT to amend the Illinois Insurance Code by changing
2 Section 143.13.
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 143.13 as follows:
7 (215 ILCS 5/143.13) (from Ch. 73, par. 755.13)
8 Sec. 143.13. Definition of terms used in Sections 143.11
9 through 143.24.
10 (a) "Policy of automobile insurance" means a policy
11 delivered or issued for delivery in this State, insuring a
12 natural person as named insured or one or more related
13 individuals resident of the same household and under which
14 the insured vehicles therein designated are motor vehicles of
15 the private passenger, station wagon, or any other 4-wheeled
16 motor vehicle with a load capacity of 1500 pounds or less
17 which is not used in the occupation, profession or business
18 of the insured or not used as a public or livery conveyance
19 for passengers nor rented to others. Policy of automobile
20 insurance shall also mean a named non-owner's automobile
21 policy.
22 Policy of automobile insurance does not apply to policies
23 of automobile insurance issued under the Illinois Automobile
24 Insurance Plan, to any policy covering garages, automobile
25 sales agencies, repair shops, service stations or public
26 parking place operation hazards. "Policy of automobile
27 insurance" does not include a policy, renewal policy, binder,
28 or application for which the applicant gives or has given for
29 the initial premium a check or credit card charge that is
30 subsequently dishonored for payment.
31 (b) "Policy of fire and extended coverage insurance"
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1 means a policy delivered or issued for delivery in this
2 State, that includes but is not limited to, the perils of
3 fire and extended coverage, and covers real property used
4 principally for residential purposes up to and including a 4
5 family dwelling or any household or personal property that is
6 usual or incidental to the occupancy to any premises used for
7 residential purposes.
8 (c) "All other policies of personal lines" means any
9 other policy of insurance issued to a natural person for
10 personal or family protection.
11 (d) "Renewal" or "to renew" means the issuance and
12 delivery by an insurer of a policy superseding at the end of
13 the policy period a policy previously issued and delivered by
14 the same insurer or the issuance and delivery of a
15 certificate or notice extending the term of a policy beyond
16 its policy period or term; however, any successive policies
17 issued by the same insurer to the same insured, for the same
18 or similar coverage, shall be considered a renewal policy.
19 Any policy with a policy period or term of less than 6
20 months or any policy with no fixed expiration date shall be
21 considered as if written for successive policy periods or
22 terms of 6 months for the purpose of "renewal" or "to renew"
23 as defined in this paragraph (d) and for the purpose of any
24 non-renewal notice required by Section 143.17 of this Code.
25 (e) "Nonpayment of premium" means failure of the named
26 insured to discharge, when due, any of his obligations in
27 connection with the payment of premiums or any installment of
28 such premium that is payable directly to the insurer or to
29 its agent. Premium shall mean the premium that is due for an
30 individual policy which shall not include any membership dues
31 or other consideration required to be a member of any
32 organization in order to be eligible for such policy.
33 (f) "A policy delivered or issued for delivery in this
34 State" shall include but not be limited to all binders of
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1 insurance, whether written or oral, and all applications
2 bound for future delivery by a duly licensed resident agent.
3 A written binder of insurance issued for a term of 60 days or
4 less, which contains on its face a specific inception and
5 expiration date and which a copy has been furnished to the
6 insured, shall not be subject to the non-renewal requirements
7 of Section 143.17 of this Code.
8 (g) "Cancellation" or "cancelled" means the termination
9 of a policy by an insurer prior to the expiration date of the
10 policy. A policy of automobile or fire and extended coverage
11 insurance which expires by its own terms on the policy
12 expiration date unless advance premiums are received by the
13 insurer for succeeding policy periods shall not be considered
14 "cancelled" or a "cancellation" effected by the insurer in
15 the event such premiums are not paid on or before the policy
16 expiration date.
17 (h) "Commercial excess and umbrella liability policy"
18 means a policy written over one or more underlying policies
19 for an insured:
20 (1) that has at least 25 full-time employees at the
21 time the commercial excess and umbrella liability policy
22 is written and procures the insurance of any risk or
23 risks, other than life, accident and health, and annuity
24 contracts, as described in clauses (a) and (b) of Class 1
25 of Section 4 and clause (a) of Class 2 of Section 4, by
26 use of the services of a full-time employee acting as an
27 insurance manager or buyer; or
28 (2) whose aggregate annual premiums for all
29 property and casualty insurance on all risks is at least
30 $50,000.
31 (Source: P.A. 86-437; 87-1020.)
32 Section 99. Effective date. This Act takes effect upon
33 becoming law.