(215 ILCS 5/525.4) (from Ch. 73, par. 1965.72-4)
Sec. 525.4.
Application for Coverage of Risks by the Facility.
(1) In the
event that the Industry Placement Facility proposes to issue policies of
insurance or endorsements thereto pursuant to subsection (1) of Section
525.1, the Facility shall require a written application for such
policies or endorsements. All applications shall be incorporated into the
policy or endorsement for which application was made.
(2) Applications for coverage of risks on property which is held in a
land trust, except applications for policies described in subsection (b)
of Section 143.13, shall disclose all beneficial interests in the property
in accordance with "An Act to require disclosure, under certification of
perjury, of all beneficial interests in real property held in a land trust,
in certain cases", approved September 21, 1973, as amended. Changes, which
result in an aggregate of 25%, in beneficial interest in the property subsequent
to the verification made in the application shall be reported by the
applicant or policy holder to the Facility no later than 10 days after the
change in beneficial interest occurs.
This shall not apply to transfer of beneficial interest to members of the
immediate family including spouse, children and grandchildren and their
spouses, parents, sisters and brothers. Changes in beneficial interest
which result in an aggregate of less than 25% shall be reported at the time
of renewal of the policy. Disclosure of the beneficial interests in such
property is deemed material
to the application for new coverage or the continuation of existing coverage
and failure to disclose all beneficial interests, including any changes
therein, renders the contract of insurance voidable at the option of the
Facility. Upon being notified of any change in beneficial interest, the
Facility shall reevaluate its risk of loss as if the risk were a new application
for coverage. When a policy subject to this Section is issued or applied
for, the Facility shall give written notice as to the requirements of this Section
to the named insured or applicant and all beneficiaries disclosed in the application.
(3) Applications for policies or endorsements covering real property,
except applications for policies described in subsection (b) of Section
143.13, shall include the following information:
(a) name and address of the applicant;
(b) name and address of all parties with any financial interest in the
property to be insured and the nature and extent of such interest, including mortgages;
(c) all purchases and sales of the property to be insured during the last
five years, including all parties involved in such transactions, with their
names and addresses;
(d) the value the insured claims for the insurable interest and the method
utilized to derive that value;
(e) all income from the property to be insured during the current year
and the last calendar and tax years, if known;
(f) occupancy and use during the preceding two years, including percentage
of occupancy if a nonowner occupied dwelling, if known;
(g) prior loss history of the applicant and the property to be insured;
(h) all tax liens and other legal encumbrances affecting the property
to be insured; and
(i) all violations of building construction and maintenance ordinances
concerning the property to be insured which have been cited in a legal notice
from an ordinance enforcement authority and which violations have not been
certified as remedied by the enforcement authority, and for which an enforcement
action is pending.
(4) Within 60 days of receipt of an application submitted pursuant to
subsection (3), the Facility shall conduct an on-site inspection of the
property to be insured so as to determine the nature of the risk presented
and the availability of coverage by the Facility. Any policy or endorsement
issued on an application submitted pursuant to subsection (3) may be cancelled
by the Facility within 60 days of the issuance thereof.
(Source: P.A. 81-1426.)
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