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| 1 | AN ACT concerning State government.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 1. Short title. This Act may be cited as the | ||||||
| 5 | Military Service Members Mortgage Life Insurance Act. | ||||||
| 6 | Section 5. Purpose. The General Assembly finds that, for | ||||||
| 7 | the economic benefit of active duty military service members | ||||||
| 8 | having residence in the State of Illinois, it is important to | ||||||
| 9 | provide home-ownership security for those who are serving this | ||||||
| 10 | State and the country. The State of Illinois should help active | ||||||
| 11 | duty military service members procure mortgage life insurance | ||||||
| 12 | to guard against the loss of a residence in this State from the | ||||||
| 13 | inability to meet mortgage payments due to injuries or death as | ||||||
| 14 | a result of service in the military. | ||||||
| 15 | Section 10. Definitions. As used in this Act: | ||||||
| 16 | "Active duty" means any duty performed in the active | ||||||
| 17 | service of the United States Armed Forces in Iraq or | ||||||
| 18 | Afghanistan pursuant to the orders of the President of the | ||||||
| 19 | United States. | ||||||
| 20 | "Department" means the Department of Military Affairs. | ||||||
| 21 | "Mortgage life insurance" means insurance that will pay off | ||||||
| 22 | all or a portion of the remaining balance of a mortgage if the | ||||||
| 23 | policyholder dies prematurely or becomes critically ill or | ||||||
| 24 | injured. | ||||||
| 25 | "Service member" means a member of the Illinois National | ||||||
| 26 | Guard. | ||||||
| 27 | Section 15. Program. The Department shall establish a | ||||||
| 28 | program for service members who are called up to active duty to | ||||||
| 29 | assist individual service members in the procurement of | ||||||
| 30 | mortgage life insurance and payment of premiums to protect the | ||||||
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| 1 | service member from defaulting on a home mortgage due to | ||||||
| 2 | critical injury sustained or death or critical illness caused | ||||||
| 3 | as a result of active duty. | ||||||
| 4 | Section 20. Application. | ||||||
| 5 | (a) A service member seeking relief under this program | ||||||
| 6 | shall apply to the Department in writing and shall include the | ||||||
| 7 | following information: | ||||||
| 8 | (1) the name and address of the service member; | ||||||
| 9 | (2) the name and address of the bank or financial | ||||||
| 10 | institution holding the mortgage; | ||||||
| 11 | (3) the amount of the mortgage and the amount of the | ||||||
| 12 | monthly payment, including taxes; and | ||||||
| 13 | (4) any other information required by the Department. | ||||||
| 14 | (c) The Department shall provide written information to an | ||||||
| 15 | applicant, upon the applicant's request, explaining the | ||||||
| 16 | application process and detailing the purpose and function of | ||||||
| 17 | mortgage life insurance. | ||||||
| 18 | (d) The Department shall review each application and make a | ||||||
| 19 | determination within 30 days of the receipt of the application. | ||||||
| 20 | (e) The Department shall notify the applicant in writing of | ||||||
| 21 | the Department's decision regarding the application within 15 | ||||||
| 22 | days of the determination. | ||||||
| 23 | Section 25. Payment. Upon approval of the application, the | ||||||
| 24 | Department shall procure mortgage life insurance for the | ||||||
| 25 | service member's mortgage in the name of the service member and | ||||||
| 26 | pay all premiums for the insurance. | ||||||
| 27 | Section 30. Notification of discharge from active duty; | ||||||
| 28 | assumption of premiums. | ||||||
| 29 | (a) A service member who has been accepted by the | ||||||
| 30 | Department for participation in the program established under | ||||||
| 31 | this Act must notify the Department of his or her discharge | ||||||
| 32 | from active duty within 3 months after the discharge. | ||||||
| 33 | (b) Within 6 months after the discharge of the service | ||||||
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| 1 | member from active duty, the Department shall notify the | ||||||
| 2 | mortgage life insurer that the mortgage life insurance will be | ||||||
| 3 | cancelled unless the service member (i) chooses to continue to | ||||||
| 4 | pay the premiums for the mortgage life insurance and (ii) | ||||||
| 5 | notifies the insurer within 2 months after receiving notice | ||||||
| 6 | from the Department pursuant to subsection (c) of this Section | ||||||
| 7 | that he or she intends to pay premiums for the mortgage life | ||||||
| 8 | insurance. | ||||||
| 9 | (c) The Department shall send a written notice to the | ||||||
| 10 | service member within 2 weeks after the Department provides the | ||||||
| 11 | notice to the insurer required under subsection (b) of this | ||||||
| 12 | Section notifying him or her that the mortgage life insurance | ||||||
| 13 | shall be cancelled unless the service member notifies the | ||||||
| 14 | insurer of his or her intent to continue paying premiums. The | ||||||
| 15 | notice required under this subsection (c) shall inform the | ||||||
| 16 | service member that notice must be sent to the insurer within 2 | ||||||
| 17 | months after the service member receives notice from the | ||||||
| 18 | Department.
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| 19 | Section 35. Rules. The Department shall adopt rules | ||||||
| 20 | necessary to carry out the provisions of this Act.
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