State of Illinois
91st General Assembly
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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.)

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