HB2687eng 96TH GENERAL ASSEMBLY

HB2687 Engrossed LRB096 11032 RPM 21333 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 143.11 as follows:

(215 ILCS 5/143.11) (from Ch. 73, par. 755.11)

Sec. 143.11. Cancellation Provisions. All companies authorized to transact in this State the kinds of business enumerated in Section 4 of the "Illinois Insurance Code" shall include in their policies, except life, accident and health, fidelity and surety, and ocean marine policies, a cancellation provision setting out the manner in which such policies may be cancelled. The cancellation provision shall provide that the policy automatically lapses for nonpayment of premium due retroactive through the last day of the last month for which the premium was paid. The insured may also choose to cancel the group health insurance policy with written notification up to the last day of the policy year. If any benefits are paid with a date of service after the preceding policy lapse date, then the responsibility to pay shall be by the succeeding carrier, the employer, or by a combination of the parties pursuant to the terms of the new policy in force. However, nothing contained in Section 143.12 through Section 143.24 shall apply to contracts of reinsurance or to contracts procured by agents under the authority of Section 445.

(Source: P.A. 80-1365.)