101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4650

 

Introduced 2/5/2020, by Rep. Darren Bailey

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/357.3  from Ch. 73, par. 969.3

    Amends the Illinois Insurance Code. Provides that an insurer shall not use misstatements made by an applicant in an application for an accident and health insurance policy to void the policy or to deny a claim for loss incurred or disability after one year (rather than 2 years) from the date of issue of the policy, unless the misstatements are fraudulent.


LRB101 17310 BMS 66715 b

 

 

A BILL FOR

 

HB4650LRB101 17310 BMS 66715 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 357.3 as follows:
 
6    (215 ILCS 5/357.3)  (from Ch. 73, par. 969.3)
7    Sec. 357.3. "TIME LIMIT ON CERTAIN DEFENSES:
8    (1) After one year 2 years from the date of issue of this
9policy no misstatements, except fraudulent misstatements, made
10by the applicant in the application for such policy shall be
11used to void the policy or to deny a claim for loss incurred or
12disability (as defined in the policy) commencing after the
13expiration of such one-year 2 year period."
14    (The foregoing policy provision shall not be so construed
15as to affect any legal requirement for avoidance of a policy or
16denial of a claim during such initial one-year 2 year period,
17nor to limit the application of Section section 357.15 through
18Section section 357.19 in the event of misstatement with
19respect to age or occupation or other insurance.)
20    A policy which the insured has the right to continue in
21force subject to its terms by the timely payment of premium (1)
22until at least age 50 or, (2) in the case of a policy issued
23after age 44, for at least 5 years from its date of issue, may

 

 

HB4650- 2 -LRB101 17310 BMS 66715 b

1contain in lieu of the foregoing the following provisions (from
2which the clause in parentheses may be omitted at the company's
3option) under the caption "INCONTESTABLE":
4    "After this policy has been in force for a period of one
5year 2 years during the lifetime of the insured (excluding any
6period during which the insured is a person with a disability),
7it shall become incontestable as to the statements contained in
8the application."
9    (2) "No claim for loss incurred or disability (as defined
10in the policy) commencing after one year 2 years from the date
11of issue of this policy shall be reduced or denied on the
12ground that a disease or physical condition not excluded from
13coverage by name or specific description effective on the date
14of loss had existed prior to the effective date of coverage of
15this policy."
16(Source: P.A. 99-143, eff. 7-27-15.)