(215 ILCS 5/1304)
(from Ch. 73, par. 1065.1004)
Except as provided in Section 1305, no
insurer shall participate in any consolidation unless, in addition to all
other requirements provided by law, it complies with the following:
(1) The new insurer must calculate premiums for the new coverage on the
basis of its own rates, the prospective insured's then attained age, if
applicable, and the amount of insurance offered.
(2) Notice of the new premium shall be mailed, together with the offer
of new coverage, to the prospective insured at least 30 days prior to the
effective date of the new coverage.
(3) The new coverage shall be put into effect only after the new insurer
receives an application which has been signed by the prospective insured.
(4) Whenever the existing coverage is provided under individual
policies, the new insurer shall comply with the requirements of Part 917 of
Title 50 of the Illinois Administrative Code, promulgated by the Department of Insurance.
(5) All riders which are a part of the existing insurance shall be
offered without proof of insurability to all policyholders (or certificate
holders) obtained by consolidation, including, but not limited to, waiver
of premium and accidental death insurance.
(6) Prospective insureds shall be given the option to name the
beneficiary of their choice by the new insurer, if the previous beneficiary
is other than a financial institution.
(7) Regulations including, but not limited to, those promulgated by the
Department of Insurance implementing Sections 143, 149, 151, 236, 237, 421,
424 and 507.1 of this Code concerning misrepresentations to any
policyholder for the purpose of inducing or tending to induce such
policyholder to lapse, forfeit or surrender his insurance, unfair or
deceptive practices, complaints, solicitation and replacement of life
insurance, compensation, and rebating shall be complied with.
(Source: P.A. 86-378.)