Illinois General Assembly - Full Text of Public Act 095-0533
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Public Act 095-0533


 

Public Act 0533 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0533
 
SB0484 Enrolled LRB095 10667 KBJ 30898 b

    AN ACT concerning insurance.
 
    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
changing Section 143.17a as follows:
 
    (215 ILCS 5/143.17a)  (from Ch. 73, par. 755.17a)
    Sec. 143.17a. Notice of intention not to renew.
    (a) A company intending to nonrenew any policy of insurance
to which Section 143.11 applies, except for those defined in
subsections (a), (b), (c), and (h) of Section 143.13, must mail
written notice to the named insured at least 60 days prior to
the expiration date of the current policy. In all notices of
intention not to renew any policy of insurance, as defined in
Section 143.11, the company shall provide a specific
explanation of the reasons for nonrenewal. A company may not
extend the current policy period for purposes of providing
notice of its intention not to renew required under this
subsection (a). a. No company shall fail to renew any policy of
insurance, to which Section 143.11 applies, except for those
defined in subsections (a), (b), (c), and (h) of Section
143.13, unless it shall send by mail to the named insured at
least 60 days advance notice of its intention not to renew. The
company shall maintain proof of mailing of such notice on one
of the following forms: a recognized U.S. Post Office form or a
form acceptable to the U.S. Post Office or other commercial
mail delivery service. An exact and unaltered copy of such
notice shall also be sent to the insured's broker, if known, or
the agent of record and to the mortgagee or lien holder at the
last mailing address known by the company. However, where
cancellation is for nonpayment of premium, the notice of
cancellation must be mailed at least 10 days before the
effective date of the cancellation.
    (b) A company intending to renew any policy of insurance to
which Section 143.11 applies, except for those defined in
subsections (a), (b), (c), and (h) of Section 143.13, with an
increase in premium of 30% or more or with changes in
deductibles or coverage that materially alter the policy must
mail or deliver to the named insured written notice of such
increase or change in deductible or coverage at least 60 days
prior to the renewal or anniversary date. If a company has
failed to provide notice of intention to renew required under
this subsection (b) at least 60 days prior to the renewal or
anniversary date, but does so no less than 31 days prior to the
renewal or anniversary date, the company may extend the current
policy at the current terms and conditions for the period of
time needed to equal the 60 day time period required to provide
notice of intention to renew by this subsection (b). The
increase in premium shall be the renewal premium based on the
known exposure as of the date of the quotation compared to the
premium as of the last day of coverage for the current year's
policy, annualized. The premium on the renewal policy may be
subsequently amended to reflect any change in exposure or
reinsurance costs not considered in the quotation. b. This
Section does not apply if the company has manifested its
willingness to renew directly to the named insured. Provided,
however, that no company may increase the renewal premium on
any policy of insurance to which Section 143.11 applies, except
for those defined in subsections (a), (b), (c), and (h) of
Section 143.13, by 30% or more, nor impose changes in
deductibles or coverage that materially alter the policy,
unless the company shall have mailed or delivered to the named
insured written notice of such increase or change in deductible
or coverage at least 60 days prior to the renewal or
anniversary date. The increase in premium shall be the renewal
premium based on the known exposure as of the date of the
quotation compared to the premium as of the last day of
coverage for the current year's policy, annualized. The premium
on the renewal policy may be subsequently amended to reflect
any change in exposure or reinsurance costs not considered in
the quotation. An exact and unaltered copy of such notice shall
also be sent to the insured's broker, if known, or the agent of
record. If an insurer fails to provide the notice required by
this subsection, then 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. Proof of mailing or proof of receipt may be proven
by a sworn affidavit by the insurer as to the usual and
customary business practices of mailing notice pursuant to this
Section or may be proven consistent with Illinois Supreme Court
Rule 236.
    (c) A company that has failed to provide notice of
intention to nonrenew under subsection (a) of this Section and
has failed to provide notice of intention to renew as
prescribed under subsection (b) of this Section must renew the
expiring policy under the same terms and conditions for an
additional year or until the effective date of any similar
insurance is procured by the insured, whichever is earlier. The
company may increase the renewal premium. However, such
increase must be less than 30% of the expiring term's premium
and notice of such increase must be delivered to the named
insured on or before the date of expiration of the current
policy period. c. Should a company fail to comply with the
non-renewal notice requirements of subsection a., 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%.
    (d) Under subsection (a), the company shall maintain proof
of mailing of the notice of intention not to renew to the named
insured on one of the following forms: a recognized U.S. Post
Office form or a form acceptable to the U.S. Post Office or
other commercial mail delivery service. Under subsections (b)
and (c), proof of mailing or proof of receipt of the notice of
intention to renew to the named insured may be proven by a
sworn affidavit by the company as to the usual and customary
business practices of mailing notice pursuant to this Section
or may be proven consistent with Illinois Supreme Court Rule
236. For all notice requirements under this Section, an exact
and unaltered copy of the notice to the named insured shall
also be sent to the named insured's producer, if known, or the
producer of record. For notices of intention to not renew, an
exact and unaltered copy of the notice to the named insured
shall also be sent to the mortgagee or lien holder at the last
mailing address known by the company. d. Renewal of a policy
does not constitute a waiver or estoppel with respect to
grounds for cancellation which existed before the effective
date of such renewal.
    (e) Renewal of a policy does not constitute a waiver or
estoppel with respect to grounds for cancellation that existed
before the effective date of such renewal. e. In all notices of
intention not to renew any policy of insurance, as defined in
Section 143.11 the company shall provide a specific explanation
of the reasons for nonrenewal.
    (f) For purposes of this Section, the named insured's
producer, if known, or the producer of record and the mortgagee
or lien holder may opt to accept notification electronically.
f. For purposes of this Section, the insured's broker, if
known, or the agent of record and the mortgagee or lien holder
may opt to accept notification electronically.
(Source: P.A. 93-477, eff. 8-8-03; 93-713, eff. 1-1-05.)

Effective Date: 6/1/2008