Full Text of HB1954 100th General Assembly
HB1954eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 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 Sections 143.14 and 143.17 as follows:
| 6 | | (215 ILCS 5/143.14) (from Ch. 73, par. 755.14)
| 7 | | Sec. 143.14. Notice of cancellation.
| 8 | | (a) No notice of cancellation of any
policy of insurance, | 9 | | to which
Section 143.11 applies, shall be effective unless | 10 | | mailed by the company
to the named insured and the mortgage or | 11 | | lien holder, at the last mailing
address known by the company.
| 12 | | The company shall maintain proof of mailing of such notice on a | 13 | | recognized
U.S. Post Office form or a form acceptable to the U. | 14 | | S. Post Office or
other commercial mail delivery service. | 15 | | Notification of the cancellation A
copy of all such
notices | 16 | | shall also be sent to the insured's broker if known, or the | 17 | | agent of
record, if known, and to the mortgagee or lien holder | 18 | | listed on the policy at the last mailing
address
known to the | 19 | | company . For purposes of this Section, the mortgage or lien | 20 | | holder, insured's broker, if known, or the agent of record may | 21 | | opt to accept notification electronically.
| 22 | | (b) Whenever a financed insurance contract is cancelled, | 23 | | the insurer
shall return
whatever gross unearned premiums are |
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| 1 | | due
under the insurance contract or contracts not to exceed the | 2 | | unpaid balance
due the premium finance company directly to the | 3 | | premium finance
company effecting the cancellation for the | 4 | | account of the named insured.
The return premium must be mailed | 5 | | to the premium finance company within
60 days.
The request for | 6 | | the unearned premium by the premium finance company shall
be in | 7 | | the manner of a monthly account, current accounting by | 8 | | producer,
policy number, unpaid balance and name of insured for | 9 | | each cancelled amount.
In the event the insurance contract or | 10 | | contracts are subject to audit, the
insurer shall retain the | 11 | | right to withhold the return of the portion of
premium that can | 12 | | be identified to the contract or contracts until the audit
is | 13 | | completed. Within 30 days of the completion of the audit, if a | 14 | | premium
retained by the insurer after crediting the earned | 15 | | premium would result in
a surplus, the insurer shall return the | 16 | | surplus directly to the premium
finance company. If the audit | 17 | | should result in an additional premium due
the insurer, the | 18 | | obligation for the collection of this premium shall fall
upon | 19 | | the insurer and not affect any other contract or contracts | 20 | | currently
being financed by the premium finance company for the | 21 | | named insured.
| 22 | | (c) Whenever a premium finance agreement contains a power | 23 | | of attorney
enabling the premium finance company to cancel any | 24 | | insurance contract or contracts
in the agreement, the insurer | 25 | | shall honor the date of cancellation as set
forth in the | 26 | | request from the premium finance company without requiring the
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| 1 | | return of the insurance contract or contracts. The insurer may | 2 | | mail to the
named insured an acknowledgment of the notice of | 3 | | cancellation from the
premium finance company but the named | 4 | | insured shall not incur any
additional premium charge for any | 5 | | extension of coverage. The insurer need
not maintain proof of | 6 | | mailing of this notice.
| 7 | | (d) All statutory regulatory and contractual restrictions | 8 | | providing that
the insurance contract may not be cancelled | 9 | | unless the required notice is
mailed to a governmental agency, | 10 | | mortgagee, lienholder, or other third
party shall apply where | 11 | | cancellation is effected under a power of
attorney under a | 12 | | premium finance agreement. The insurer shall have the
right for | 13 | | a premium charge for this extension of coverage.
| 14 | | (Source: P.A. 93-713, eff. 1-1-05.)
| 15 | | (215 ILCS 5/143.17) (from Ch. 73, par. 755.17)
| 16 | | Sec. 143.17. Notice of intention not to renew.
| 17 | | a. No company shall fail
to renew any policy of insurance, | 18 | | as defined in subsections (a), (b),
(c), and (h) of Section | 19 | | 143.13, to which Section 143.11 applies, unless it
shall
send | 20 | | by mail to the named insured at least 30 days advance notice of | 21 | | its
intention not to renew. The company shall maintain proof of | 22 | | mailing of
such notice on a recognized U.S. Post Office form or | 23 | | a form acceptable to
the U. S. Post Office or other commercial | 24 | | mail delivery service. Notification of the intention not to | 25 | | renew An exact
and unaltered copy of such notice shall also be |
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| 1 | | sent to the insured's
broker, if known, or the agent of record | 2 | | and to any the mortgagee or lien
holder listed on the policy at | 3 | | the last mailing address known by the company . For purposes of | 4 | | this Section, the mortgagee or lien holder, insured's broker, | 5 | | or the agent of record may opt to accept notification | 6 | | electronically. However, where
cancellation is for nonpayment | 7 | | of premium, the notice
of
cancellation must be mailed at least | 8 | | 10 days before the
effective date of the cancellation.
| 9 | | b. This Section does not apply if the company has | 10 | | manifested its
willingness to renew directly to the named | 11 | | insured.
Such written notice shall specify the premium amount | 12 | | payable, including
any premium payment plan available, and the | 13 | | name of any person or persons,
if any, authorized to receive | 14 | | payment on behalf of the company. If no
person is so | 15 | | authorized, the premium notice shall so state. The notice of
| 16 | | nonrenewal and the proof of mailing shall be effected on the | 17 | | same date.
| 18 | | b-5. This Section does not apply if the company manifested | 19 | | its
willingness to renew directly to the named insured. | 20 | | However, no company may
impose changes in deductibles or | 21 | | coverage for any policy forms applicable to an
entire line of | 22 | | business enumerated in subsections (a), (b), (c), and (h) of
| 23 | | Section 143.13 to which Section 143.11 applies unless the | 24 | | company mails to the
named insured written notice of the change | 25 | | in deductible or coverage at least
60 days prior to the renewal | 26 | | or anniversary date. An exact and unaltered copy
of the notice |
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| 1 | | shall also be sent to the insured's broker, if known, or the
| 2 | | agent of record.
| 3 | | c. Should a company fail to comply with (a) or (b) of this | 4 | | Section,
the policy shall terminate only on the effective date | 5 | | of any similar
insurance procured by the insured with respect | 6 | | to the same subject or
location designated in both policies.
| 7 | | d. Renewal of a policy does not constitute a waiver or | 8 | | estoppel with
respect to grounds for cancellation which existed | 9 | | before the effective
date of such renewal.
| 10 | | e. In all notices of intention not to renew any policy of | 11 | | insurance,
as defined in Section 143.11 the company shall | 12 | | provide a specific
explanation of the reasons for nonrenewal.
| 13 | | f. For purposes of this Section, the insured's broker, if | 14 | | known, or the agent of record and the mortgagee or lien holder | 15 | | may opt to accept notification electronically.
| 16 | | (Source: P.A. 93-713, eff. 1-1-05.)
| 17 | | Section 99. Effective date. This Act takes effect January | 18 | | 1, 2018.
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