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1 | AMENDMENT TO SENATE BILL 2491
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2 | AMENDMENT NO. ______. Amend Senate Bill 2491, AS AMENDED, | ||||||
3 | in the introductory clause of Section 5, by replacing "and | ||||||
4 | 143.17a" with "143.17a, and 513a11"; and
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5 | in Section 5, immediately below Sec. 143.17a, by inserting the | ||||||
6 | following:
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7 | "(215 ILCS 5/513a11) (from Ch. 73, par. 1065.60a11)
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8 | Sec. 513a11. Cancellation requirements upon default.
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9 | (a) When a premium finance agreement contains a power of | ||||||
10 | attorney
enabling the premium finance company to cancel any | ||||||
11 | insurance contract or
contracts listed in the premium finance | ||||||
12 | agreement, the insurance contract
or contracts shall not be | ||||||
13 | cancelled by the premium finance company unless
the request for | ||||||
14 | cancellation is effectuated under this Section.
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15 | (b) Not less than 10 days written notice shall be mailed to | ||||||
16 | the named
insured of the intent of the premium finance company | ||||||
17 | to cancel the
insurance contract unless the default is cured | ||||||
18 | within the 10 day period.
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19 | (c) After expiration of the 10 day period, the premium | ||||||
20 | finance company
may request, in the name of the named insured, | ||||||
21 | cancellation of the insurance
contract or contracts by mailing | ||||||
22 | or hand delivering to the insurer a
request for cancellation, | ||||||
23 | and the insurance contract shall be cancelled as
if the request | ||||||
24 | for cancellation had been submitted by the named insured,
but |
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1 | without requiring the return of the insurance contract or | ||||||
2 | contracts.
The premium finance company shall also mail a copy | ||||||
3 | of the request for
cancellation to the named insured at his | ||||||
4 | last known address.
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5 | (d) All statutory, regulatory, and contractual | ||||||
6 | restrictions providing
that the insurance contract may not be | ||||||
7 | cancelled unless notice is given to
a governmental agency, | ||||||
8 | mortgagee, or other third party shall apply where
cancellation | ||||||
9 | is effected under provisions of this Section. The insurer
shall | ||||||
10 | give the notice to any governmental agency, mortgagee, or other
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11 | third party on or before the fifth business day after it | ||||||
12 | receives the
notice of cancellation from the premium finance | ||||||
13 | company. For the purposes of this Section, any governmental | ||||||
14 | agency, mortgagee, or other third party may opt to receive | ||||||
15 | notices electronically.
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16 | (e) In the event that the collection of return premiums for | ||||||
17 | the account of
the named insured results in a surplus over the | ||||||
18 | amount due from the named
insured, the premium finance company | ||||||
19 | shall refund the excess to the named
insured; however, no | ||||||
20 | refund is required if it amounts to less than $5.
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21 | (f) All cancellation provisions required of the premium | ||||||
22 | finance company
and insurer are applicable to any policy to | ||||||
23 | which Section 143.11 applies.
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24 | (Source: P.A. 87-811.)".
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