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Public Act 91-0552
HB1697 Enrolled LRB9100985JSpcA
AN ACT to amend the Illinois Insurance Code by changing
Section 143.13.
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 143.13 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. "Policy of automobile
insurance" does not include a policy, binder, or application
for which the applicant gives or has given for the initial
premium a check or credit card charge that is subsequently
dishonored for payment, unless the check or credit card
charge was dishonored through no fault of the payor.
(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 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. The
term "nonpayment of premium" does not include a check, credit
card charge, or money order that an applicant gives or has
given to any person for the initial premium payment for a
policy, binder, or application and that is subsequently
dishonored for payment, and any policy, binder, or
application in connection therewith is void and of no effect
and not subject to the cancellation provisions of this Code.
(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.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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