093_HB3660

 
                                     LRB093 09244 JLS 09477 b

 1        AN ACT concerning insurance.

 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 143.19.1, 143.21a, and 143.23a as follows:

 6        (215 ILCS 5/143.19.1) (from Ch. 73, par. 755.19.1)
 7        Sec.   143.19.1.    Limits   on   exercise  of  right  of
 8    nonrenewal.  After  a  policy  of  automobile  insurance,  as
 9    defined  in Section 143.13, has been effective or renewed for
10    5 or more years, the company shall not exercise its right  of
11    non-renewal unless:
12        a.  The   policy   was   obtained   through   a  material
13    misrepresentation; or
14        b.  Any insured violated any of the terms and  conditions
15    of the policy; or
16        c.  The  named insured failed to disclose fully his motor
17    vehicle accidents  and  moving  traffic  violations  for  the
18    preceding 36 months, if such information is called for in the
19    application; or
20        d.  Any  insured  made  a  false  or  fraudulent claim or
21    knowingly aided or abetted another  in  the  presentation  of
22    such a claim; or
23        e.  The  named  insured  or any other operator who either
24    resides in the same  household  or  customarily  operates  an
25    automobile insured under such a policy:
26             1.  Has, within the 12 months prior to the notice of
27        non-renewal  had  his drivers license under suspension or
28        revocation; or
29             2.  Is or  becomes  subject  to  epilepsy  or  heart
30        attacks,   and   such   individual  does  not  produce  a
31        certificate  from   a   physician   testifying   to   his
 
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 1        unqualified ability to operate a motor vehicle safely; or
 2             3.  Has   an   accident  record,  conviction  record
 3        (criminal or traffic), or a physical or mental  condition
 4        which  is  such that his operation of an automobile might
 5        endanger the public safety; or
 6             4.  Has, within the 36 months prior to the notice of
 7        non-renewal, been addicted to the  use  of  narcotics  or
 8        other drugs; or
 9             5.  Has been convicted or forfeited bail, during the
10        36   months   immediately   preceding   the   notice   of
11        non-renewal,   for   any   felony,   criminal  negligence
12        resulting in death, homicide or assault  arising  out  of
13        the  operation  of  a  motor  vehicle,  operating a motor
14        vehicle while in an intoxicated condition or while  under
15        the  influence  of  drugs,  being intoxicated while in or
16        about  an  automobile  or  while  having  custody  of  an
17        automobile, leaving the  scene  of  an  accident  without
18        stopping  to  report, theft or unlawful taking of a motor
19        vehicle, making false statements in an application for an
20        operators or chauffeurs license, or has been convicted or
21        forfeited bail for 3 or more  violations  within  the  12
22        months  immediately  preceding the notice of non-renewal,
23        of any law, ordinance or regulation limiting the speed of
24        motor vehicles or any of  the  provisions  of  the  motor
25        vehicle laws of any state, violation of which constitutes
26        a   misdemeanor,  whether  or  not  the  violations  were
27        repetitions of the same offense or different offenses; or
28        f.  The insured automobile is:
29             1.  So mechanically  defective  that  its  operation
30        might endanger public safety; or
31             2.  Used   in   carrying   passengers  for  hire  or
32        compensation (the use of an automobile  for  a  car  pool
33        shall  not be considered use of an automobile for hire or
34        compensation); or
 
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 1             3.  Used  in  the  business  of  transportation   of
 2        flammables or explosives; or
 3             4.  An authorized emergency vehicle; or
 4             5.  Changed  in shape or condition during the policy
 5        period so as to increase the risk substantially; or
 6             6.  Subject to an inspection law and it has not been
 7        inspected or, if inspected, has failed to qualify; or
 8        g.  The notice of the intention not to renew is mailed to
 9    the insured at least 60 days before the date of nonrenewal as
10    provided in Section 143.17.
11        h.  The insured has moved to a state  or  province  where
12    the  insurance company is not authorized to conduct business.
13    Any premium charged for the time period between the date  the
14    insured  moved  out  of  state  until the termination date of
15    coverage shall be at the same premium  rates  as  though  the
16    insured still resided in State.
17    (Source: P.A. 89-669, eff. 1-1-97.)

18        (215 ILCS 5/143.21a) (from Ch. 73, par. 755.21a)
19        Sec.  143.21a.   Nonrenewal of fire and extended coverage
20    policy; grounds.  A policy  of  fire  and  extended  coverage
21    insurance,  as  defined  in subsection (b) of Section 143.13,
22    may not be nonrenewed for any of the following reasons:
23             (a)  age of property,
24             (b)  location of property,
25             (c)  age,  sex,  race,  color,   ancestry,   marital
26        status, or occupation of occupants,.
27             (d)  reporting  a  potential loss but not requesting
28        or receiving payment for that loss, or
29             (e)  requesting information  about  coverages  under
30        the policy.
31    (Source: P.A. 91-357, eff. 7-29-99.)

32        (215 ILCS 5/143.23a) (from Ch. 73, par. 755.23a)
 
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 1        Sec.  143.23a.    Access to application.  When any person
 2    has  filed   a   complaint   with   the   Director   alleging
 3    cancellation,  non-renewal,  or  refusal  to issue a fire and
 4    extended coverage policy, as defined  in  Section  143.13  of
 5    this  Code, by any insurer, such person, upon written request
 6    to the insurer, to which the insurer shall respond within  21
 7    days,  shall have access to the complete file of such insurer
 8    pertaining to such person's application or policy.  When  any
 9    person has filed a complaint with the Director contesting the
10    cancellation  or nonrenewal of any policy as applicable under
11    Sections 143.11 through 143.26 by any  insurer,  the  person,
12    upon written request to the insurer, shall have access to the
13    complete  file  of  the  insurer  pertaining  to the person's
14    application or policy, within 10 days after  receipt  of  the
15    written  request.  The consumer shall not have a right to any
16    additional information from the company  in  connection  with
17    proceedings before the Department to contest the cancellation
18    or  nonrenewal.   There shall be no liability on the part of,
19    and no cause of action shall rise  against,  any  insurer  or
20    authorized representative, or its agents or employees, or the
21    director  or  his authorized representative for any statement
22    made by them  or  any  information  contained  in  the  files
23    revealed in compliance with the provisions of this Section.
24    (Source: P.A. 80-1374.)