[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 91-0597
SB1024 Enrolled LRB9103039JSpc
AN ACT to amend the Illinois Insurance Code by changing
Sections 143.13 and 143.17.
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 Sections 143.13 and 143.17 as follows:
(215 ILCS 5/143.13) (from Ch. 73, par. 755.13)
Sec. 143.13. Definition of terms used in Sections 143.11
through 143.24.
(a) "Policy of automobile insurance" means a policy
delivered or issued for delivery in this State, insuring a
natural person as named insured or one or more related
individuals resident of the same household and under which
the insured vehicles therein designated are motor vehicles of
the private passenger, station wagon, or any other 4-wheeled
motor vehicle with a load capacity of 1500 pounds or less
which is not used in the occupation, profession or business
of the insured or not used as a public or livery conveyance
for passengers nor rented to others. Policy of automobile
insurance shall also mean a named non-owner's automobile
policy.
Policy of automobile insurance does not apply to policies
of automobile insurance issued under the Illinois Automobile
Insurance Plan, to any policy covering garages, automobile
sales agencies, repair shops, service stations or public
parking place operation hazards.
(b) "Policy of fire and extended coverage insurance"
means a policy delivered or issued for delivery in this
State, that includes but is not limited to, the perils of
fire and extended coverage, and covers real property used
principally for residential purposes up to and including a 4
family dwelling or any household or personal property that is
usual or incidental to the occupancy to any premises used for
residential purposes.
(c) "All other policies of personal lines" means any
other policy of insurance issued to a natural person for
personal or family protection.
(d) "Renewal" or "to renew" means (1) any change to an
entire line of business in accordance with subsection b-5 of
Section 143.17 and (2) the issuance and delivery by an
insurer of a policy superseding at the end of the policy
period a policy previously issued and delivered by the same
insurer or the issuance and delivery of a certificate or
notice extending the term of a policy beyond its policy
period or term; however, any successive policies issued by
the same insurer to the same insured, for the same or similar
coverage, shall be considered a renewal policy.
Any policy with a policy period or term of less than 6
months or any policy with no fixed expiration date shall be
considered as if written for successive policy periods or
terms of 6 months for the purpose of "renewal" or "to renew"
as defined in this paragraph (d) and for the purpose of any
non-renewal notice required by Section 143.17 of this Code.
(e) "Nonpayment of premium" means failure of the named
insured to discharge, when due, any of his obligations in
connection with the payment of premiums or any installment of
such premium that is payable directly to the insurer or to
its agent. Premium shall mean the premium that is due for an
individual policy which shall not include any membership dues
or other consideration required to be a member of any
organization in order to be eligible for such policy.
(f) "A policy delivered or issued for delivery in this
State" shall include but not be limited to all binders of
insurance, whether written or oral, and all applications
bound for future delivery by a duly licensed resident agent.
A written binder of insurance issued for a term of 60 days or
less, which contains on its face a specific inception and
expiration date and which a copy has been furnished to the
insured, shall not be subject to the non-renewal requirements
of Section 143.17 of this Code.
(g) "Cancellation" or "cancelled" means the termination
of a policy by an insurer prior to the expiration date of the
policy. A policy of automobile or fire and extended coverage
insurance which expires by its own terms on the policy
expiration date unless advance premiums are received by the
insurer for succeeding policy periods shall not be considered
"cancelled" or a "cancellation" effected by the insurer in
the event such premiums are not paid on or before the policy
expiration date.
(h) "Commercial excess and umbrella liability policy"
means a policy written over one or more underlying policies
for an insured:
(1) that has at least 25 full-time employees at the
time the commercial excess and umbrella liability policy
is written and procures the insurance of any risk or
risks, other than life, accident and health, and annuity
contracts, as described in clauses (a) and (b) of Class 1
of Section 4 and clause (a) of Class 2 of Section 4, by
use of the services of a full-time employee acting as an
insurance manager or buyer; or
(2) whose aggregate annual premiums for all
property and casualty insurance on all risks is at least
$50,000.
(Source: P.A. 86-437; 87-1020.)
(215 ILCS 5/143.17) (from Ch. 73, par. 755.17)
Sec. 143.17. Notice of intention not to renew.
a. No company shall fail to renew any policy of
insurance, as defined in subsections (a), (b), (c), and (h)
of Section 143.13, to which Section 143.11 applies, unless it
shall send by mail to the named insured at least 30 days
advance notice of its intention not to renew. The company
shall maintain proof of mailing of such notice on 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. This Section does not apply if the company has
manifested its willingness to renew directly to the named
insured. Such written notice shall specify the premium amount
payable, including any premium payment plan available, and
the name of any person or persons, if any, authorized to
receive payment on behalf of the company. If no person is so
authorized, the premium notice shall so state. The notice of
nonrenewal and the proof of mailing shall be effected on the
same date.
b-5. This Section does not apply if the company
manifested its willingness to renew directly to the named
insured. However, no company may impose changes in
deductibles or coverage for any policy forms applicable to an
entire line of business enumerated in subsections (a), (b),
(c), and (h) of Section 143.13 to which Section 143.11
applies unless the company mails to the named insured written
notice of the change in deductible or coverage at least 60
days prior to the renewal or anniversary date. An exact and
unaltered copy of the notice shall also be sent to the
insured's broker, if known, or the agent of record.
c. Should a company fail to comply with (a) or (b) of
this Section, the policy shall terminate only on the
effective date of any similar insurance procured by the
insured with respect to the same subject or location
designated in both policies.
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. 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.
(Source: P.A. 89-669, eff. 1-1-97.)
[ Top ]