State of Illinois
90^th General Assembly
Legislation

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90_SB1904

      215 ILCS 5/357.31         from Ch. 73, par. 969.31
          Amends the Illinois Insurance Code.  Adds a caption to  a
      Section  concerning the refund of unearned premium upon death
      of the insured.
                                                     LRB9011424JSgc
                                               LRB9011424JSgc
 1        AN ACT to amend the Illinois Insurance Code  by  changing
 2    Section 357.31.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Illinois Insurance  Code  is  amended  by
 6    changing Section 357.31 as follows:
 7        (215 ILCS 5/357.31) (from Ch. 73, par. 969.31)
 8        Sec.  357.31.   Refund of unearned premium.  In the event
 9    of the death of a policyholder of an individual accident  and
10    health  insurance policy, the insurance company, upon receipt
11    of notice of the policyholder's death and  a  request  for  a
12    pro-rata  refund,  supported  by  a  valid  death certificate
13    supplied by a party entitled  to  claim  such  refund,  shall
14    refund  the  unearned  premium  pro-rated to the month of the
15    policyholder's death.  In  no  event  shall  such  refund  of
16    premium be computed by the use of a short-rate table.  Refund
17    of  the  premium  and  termination  of  the coverage shall be
18    without prejudice to any claim originating prior to the  date
19    of  the  policyholder's  death.   Coverage of persons insured
20    under the same policy other than the policyholder  shall  not
21    be  affected  by  the  premium  refund  provided  for in this
22    Section nor shall the obligation of such  other  insureds  to
23    pay required premiums be diminished pursuant to this Section.
24    (Source: P.A. 86-665.)

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