(215 ILCS 5/906) (from Ch. 73, par. 1065.606)
Sec. 906.
Cancellation Restricted.
An insurer may not cancel the coverage
of an individual member of a group to which the insurer provides coverage
under a group legal expense insurance policy except for the nonpayment of
premium by such member, or the group policyholder if premium is paid or
collected by it for transmittal to the insurer or unless the insurance for
the entire group is cancelled. In the event of cancellation the insurer shall:
(1) If it has in its actual possession the names and addresses of individual
members insured under such group legal expense insurance policy, deliver
to the individual member written notice of cancellation stating when, not
less than 30 days thereafter, such cancellation shall be effective provided,
however, that if such cancellation is the result of nonpayment of premium
by such member or the group policyholder, a notice of 10 days shall be sufficient.
(2) In the event the insurer does not administer the group legal expense
insurance policy and is not in actual possession of the names and addresses
of individual members insured under such policy, the insurer shall deliver
to the employer or to the executive officer or trustee of the association for delivery
to the employee, member or employee of a member who is insured under such
policy individual notice of cancellation forms stating when, not less than
30 days thereafter, such cancellation shall be effective provided, however,
that if such cancellation is the result of nonpayment of premium a notice
of 10 days shall be sufficient. The insurer shall not be required to furnish
notice of cancellation under this Section to the group policyholder when
an individual member's insurance is terminated by reason of nonpayment of
premium unless it has specific knowledge of the individual's failure to pay premium.
Delivery shall be considered effective by the mailing of such notice if
subsection (1) above is applicable to the last address of the member as
shown on the records of the insurer, and under subsection (2) by the mailing
of such notice to the last address of the group policyholder as shown on
the records of the insurer.
(Source: P.A. 81-1361.)
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