Illinois General Assembly - Full Text of Public Act 102-0542

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Public Act 102-0542

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Public Act 0542 102ND GENERAL ASSEMBLY

Public Act 102-0542

SB2112 Enrolled LRB102 11322 BMS 16655 b

    AN ACT concerning regulation.

    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:

    Section 5. The Illinois Insurance Code is amended by
adding Section 235.1 as follows:

    (215 ILCS 5/235.1 new)
    Sec. 235.1. Notice of cancellation; secondary addressee.
    (a) A life company issuing an individual life insurance
contract on or after January 1, 2022 shall notify an
applicant, in writing on a form prescribed by the company at
the time of application for the policy, of the applicant's
right to designate a secondary addressee to receive notice of
cancellation of the policy based on nonpayment of premium. The
applicant may make such designation at the time of application
for such policy or at any time such policy is in force by
submitting a written notice to the insurer containing the name
and address of the secondary addressee.
    (b) The insurer's transmission to a secondary addressee of
a copy of a notice of cancellation based on nonpayment of
premium shall be in addition to the transmission of the
original document to the policyholder. The copy of the notice
of cancellation transmitted to the secondary addressee shall
be made in the same manner and form required for the
transmission of the notice to the policyholder.
    (c) The designation of a secondary addressee shall not
constitute acceptance of any liability on the part of the
secondary addressee or insurer for services provided to the
policyholder.
    (d) This Section does not apply to any individual life
insurance contract under which premiums are payable monthly or
more frequently and are regularly collected by a licensed
agent or are paid by credit card or any preauthorized check
processing or automatic debit service of a financial
institution.
    (e) Nothing in this Section shall prohibit an applicant or
policyholder from designating a life insurance agent of record
as his or her secondary addressee.

    Section 99. Effective date. This Act takes effect January
1, 2022.

Effective Date: 1/1/2022

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