Full Text of SB0484 95th General Assembly
SB0484 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB0484
Introduced 2/8/2007, by Sen. Todd Sieben SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/143.17a |
from Ch. 73, par. 755.17a |
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Amends the Illinois Insurance Code. Provides that if an insurer fails to provide the notice required by this provision regarding terms, conditions, and premium between 30 and 60 days in advance of the expiration date on the policy declaration page, the current expiration date must be extended with no changes to allow 60 days notice of an increase in the premium of 30% or more (now, the company must extend the current policy
under the same terms, conditions, and premium to allow 60 days notice of
renewal and provide the actual renewal premium quotation and any change in
coverage or deductible on the policy). Provides that if any insurer fails to provide at least 30 days notice prior to the expiration date on the policy declaration page, the insurer may not change any terms, conditions, or increase the premium by 30% or more for one full year of the renewal policy term. Also provides that if the policy is not mailed to the insured or the insured's agent prior to the renewal effective date, the policy must be renewed at the expiring policy's terms, conditions, and premium for the entire year of the renewal policy (now, should a company fail to comply with the non-renewal notice
requirements,
the policy shall be extended for an additional year
or until the effective date of any similar insurance
procured by the insured, whichever is less,
on the same terms and conditions as the policy sought to be
terminated, unless the insurer has manifested its intention to renew at a
different premium that represents an increase not exceeding 30%). Effective immediately.
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A BILL FOR
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SB0484 |
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LRB095 10667 KBJ 30898 b |
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| AN ACT concerning insurance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Section 143.17a as follows:
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| (215 ILCS 5/143.17a) (from Ch. 73, par. 755.17a)
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| Sec. 143.17a. Notice of intention not to renew.
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| a. No company shall fail to renew any policy of insurance,
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| to which
Section 143.11 applies, except for those defined in | 10 |
| subsections (a),
(b), (c), and (h) of Section 143.13, unless it | 11 |
| shall send by
mail
to the named insured at least 60 days | 12 |
| advance
notice of its intention not to renew. The company shall | 13 |
| maintain proof
of mailing of such notice on one of the | 14 |
| following forms: a recognized U.S.
Post Office form or a form | 15 |
| acceptable to the U.S. Post Office or other
commercial mail | 16 |
| delivery service. An exact and unaltered
copy of such notice | 17 |
| shall also be
sent to the insured's broker, if known, or the | 18 |
| agent of record and to
the mortgagee or lien holder at
the
last | 19 |
| mailing address known by the company.
However, where | 20 |
| cancellation is for nonpayment of premium, the notice of | 21 |
| cancellation must be mailed at least 10 days
before the | 22 |
| effective date of the cancellation.
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| b. This Section does not apply if the company has |
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SB0484 |
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LRB095 10667 KBJ 30898 b |
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| manifested its
willingness to renew directly to the named | 2 |
| insured.
Provided, however, that no company
may increase the | 3 |
| renewal premium on any policy of insurance to which Section
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| 143.11 applies, except for those defined in subsections (a), | 5 |
| (b), (c), and (h)
of Section
143.13, by 30% or more, nor impose | 6 |
| changes in deductibles or coverage that
materially alter the | 7 |
| policy, unless the company shall have mailed or delivered
to | 8 |
| the named insured written notice of such increase or change in
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| deductible or coverage at least 60 days prior
to the renewal or | 10 |
| anniversary date.
The increase in premium shall be the
renewal | 11 |
| premium based on the known exposure as of the date of the | 12 |
| quotation
compared to the premium
as of the last day of | 13 |
| coverage for the current year's policy, annualized.
The premium | 14 |
| on the renewal policy may be subsequently amended to reflect
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| any change in exposure or reinsurance costs not considered in | 16 |
| the
quotation. An exact and unaltered
copy of such notice shall | 17 |
| also be sent to the insured's broker, if known,
or the agent of | 18 |
| record. In addition, if an insurer fails to provide the notice | 19 |
| required by this subsection regarding terms, conditions, and | 20 |
| premium between 30 and 60 days in advance of the expiration | 21 |
| date on the policy declaration page, the current expiration | 22 |
| date must be extended with no changes to allow 60 days notice | 23 |
| of an increase in the premium of 30% or more.
If an insurer | 24 |
| fails to provide the notice
required by this subsection, then | 25 |
| the company must extend the current policy
under the same | 26 |
| terms, conditions, and premium to allow 60 days notice of
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LRB095 10667 KBJ 30898 b |
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| renewal and provide the actual renewal premium quotation and | 2 |
| any change in
coverage or deductible on the policy. Proof of | 3 |
| mailing or proof of receipt may
be proven by a sworn affidavit | 4 |
| by the insurer as to the usual and customary
business practices | 5 |
| of mailing notice pursuant to this Section or may be proven
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| consistent with Illinois Supreme Court Rule 236.
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| c. If any insurer fails to provide at least 30 days notice | 8 |
| prior to the expiration date on the policy declaration page, | 9 |
| the insurer may not change any terms, conditions, or increase | 10 |
| the premium by 30% or more for one full year of the renewal | 11 |
| policy term. If the policy is not mailed to the insured or the | 12 |
| insured's agent prior to the renewal effective date, the policy | 13 |
| must be renewed at the expiring policy's terms, conditions, and | 14 |
| premium for the entire year of the renewal policy.
Should a | 15 |
| company fail to comply with the non-renewal notice
requirements
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| of subsection a.,
the policy shall be extended for an | 17 |
| additional year
or until the effective date of any similar | 18 |
| insurance
procured by the insured, whichever is less,
on the | 19 |
| same terms and conditions as the policy sought to be
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| terminated, unless the insurer has manifested its intention to | 21 |
| renew at a
different premium that represents an increase not | 22 |
| exceeding 30%.
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| d. Renewal of a policy does not constitute a waiver or | 24 |
| estoppel with
respect to grounds for cancellation which existed | 25 |
| before the effective
date of such renewal.
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| e. In all notices of intention not to renew any policy of |
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LRB095 10667 KBJ 30898 b |
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| insurance,
as defined in Section 143.11 the company shall | 2 |
| provide a specific
explanation of the reasons for nonrenewal.
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| f. For purposes of this Section, the insured's broker, if | 4 |
| known, or the agent of record and the mortgagee or lien holder | 5 |
| may opt to accept notification electronically.
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| (Source: P.A. 93-477, eff. 8-8-03; 93-713, eff. 1-1-05.)
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| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
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