093_HB1192eng

 
HB1192 Engrossed                     LRB093 02173 JLS 02180 b

 1        AN ACT concerning insurance.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois  Insurance  Code is amended by
 5    changing Section 143.10a as follows:

 6        (215 ILCS 5/143.10a) (from Ch. 73, par. 755.10a)
 7        Sec. 143.10a.  (1) Loss Information.
 8        (1)  All companies  issuing  policies  to  which  Section
 9    143.11  of  this  Code  applies,  except for those defined in
10    subsections (a), (b) and (c) of Section 143.13 of  this  Code
11    and  to  which  subsection  (o) of Section 19 of the Workers'
12    Compensation Act applies, shall on or after January 1,  1987,
13    provide  the  following  loss  information for the 3 previous
14    policy years to the first named insured within 30 days of the
15    insured's request.  At the written request  of  the  insured,
16    the  company  shall send the loss information directly to the
17    insured's producer.  In addition, the company shall also send
18    the loss information at  the  same  time  as  any  notice  of
19    cancellation  or nonrenewal, except where the policy has been
20    cancelled    for    nonpayment    of    premium,     material
21    misrepresentations or fraud on the part of the insured:
22             (a)  On  closed  claims,  date  and  description  of
23        occurrence, and total amounts of payments;
24             (b)  On   open   claims,  date  and  description  of
25        occurrence, total amount of payments and total  reserves,
26        if any; and
27             (c)  For  any  occurrence not included in (a) or (b)
28        of this subsection  (1),  the  date  and  description  of
29        occurrence and total reserves, if any.
30        (2)  Should  a named insured be required by a prospective
31    insurer to provide detailed loss information in  addition  to
 
HB1192 Engrossed            -2-      LRB093 02173 JLS 02180 b
 1    that required under subsection (1) of this Section, the named
 2    insured  may mail or deliver a written request to the insurer
 3    for such  additional  information,  including  specific  loss
 4    reserves. No prospective insurer shall request, however, more
 5    detailed  information  than  required by it to underwrite the
 6    same line or class of insurance. The  insurer  shall  provide
 7    such  information  to  the  first  named  insured  as soon as
 8    possible, but in no event later than 20 days  of  receipt  of
 9    such  request.  Coverage  under  the  existing  policy  shall
10    automatically be extended at the same terms and conditions by
11    the  same  number of days it takes the insurer to provide the
12    insured with this additional information.
13        (3)  The Director may promulgate regulations  to  exclude
14    the  automatic  providing of the loss information at the time
15    of cancellation or renewal as outlined in subsection  (1)  of
16    this  Section for any line or class of insurance where it can
17    be shown that the information is not needed for that line  or
18    class of insurance.
19        (4)  If  a  company  fails  to provide the information as
20    required by  this  Section  with  such  frequency  so  as  to
21    indicate  a practice of refusing to provide such information,
22    such failure shall constitute an  unfair  trade  practice  as
23    defined  in  Section  424  and  subject  to those hearing and
24    penalty provisions as set forth in Sections 425 through 434.
25        (5)  Information provided under subsection  (2)  of  this
26    Section  shall not be subject to discovery by any party other
27    than the insured, the insurer, and the prospective insurer.
28    (Source: P.A. 88-313.)

29        Section 99.  Effective date.  This Act takes effect  upon
30    becoming law.