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91_HB1697eng HB1697 Engrossed LRB9100985JSpcA 1 AN ACT to amend the Illinois Insurance Code by changing 2 Section 143.13. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Insurance Code is amended by 6 changing Section 143.13 as follows: 7 (215 ILCS 5/143.13) (from Ch. 73, par. 755.13) 8 Sec. 143.13. Definition of terms used in Sections 143.11 9 through 143.24. 10 (a) "Policy of automobile insurance" means a policy 11 delivered or issued for delivery in this State, insuring a 12 natural person as named insured or one or more related 13 individuals resident of the same household and under which 14 the insured vehicles therein designated are motor vehicles of 15 the private passenger, station wagon, or any other 4-wheeled 16 motor vehicle with a load capacity of 1500 pounds or less 17 which is not used in the occupation, profession or business 18 of the insured or not used as a public or livery conveyance 19 for passengers nor rented to others. Policy of automobile 20 insurance shall also mean a named non-owner's automobile 21 policy. 22 Policy of automobile insurance does not apply to policies 23 of automobile insurance issued under the Illinois Automobile 24 Insurance Plan, to any policy covering garages, automobile 25 sales agencies, repair shops, service stations or public 26 parking place operation hazards. "Policy of automobile 27 insurance" does not include a policy, renewal policy, binder, 28 or application for which the applicant gives or has given for 29 the initial premium a check or credit card charge that is 30 subsequently dishonored for payment. 31 (b) "Policy of fire and extended coverage insurance" HB1697 Engrossed -2- LRB9100985JSpcA 1 means a policy delivered or issued for delivery in this 2 State, that includes but is not limited to, the perils of 3 fire and extended coverage, and covers real property used 4 principally for residential purposes up to and including a 4 5 family dwelling or any household or personal property that is 6 usual or incidental to the occupancy to any premises used for 7 residential purposes. 8 (c) "All other policies of personal lines" means any 9 other policy of insurance issued to a natural person for 10 personal or family protection. 11 (d) "Renewal" or "to renew" means the issuance and 12 delivery by an insurer of a policy superseding at the end of 13 the policy period a policy previously issued and delivered by 14 the same insurer or the issuance and delivery of a 15 certificate or notice extending the term of a policy beyond 16 its policy period or term; however, any successive policies 17 issued by the same insurer to the same insured, for the same 18 or similar coverage, shall be considered a renewal policy. 19 Any policy with a policy period or term of less than 6 20 months or any policy with no fixed expiration date shall be 21 considered as if written for successive policy periods or 22 terms of 6 months for the purpose of "renewal" or "to renew" 23 as defined in this paragraph (d) and for the purpose of any 24 non-renewal notice required by Section 143.17 of this Code. 25 (e) "Nonpayment of premium" means failure of the named 26 insured to discharge, when due, any of his obligations in 27 connection with the payment of premiums or any installment of 28 such premium that is payable directly to the insurer or to 29 its agent. Premium shall mean the premium that is due for an 30 individual policy which shall not include any membership dues 31 or other consideration required to be a member of any 32 organization in order to be eligible for such policy. The 33 term "nonpayment of premium" does not include a check, credit 34 card charge, or money order that an applicant gives or has HB1697 Engrossed -3- LRB9100985JSpcA 1 given to any person for the initial premium payment for a 2 policy, renewal policy, binder, or application and that is 3 subsequently dishonored for payment, and any policy, renewal 4 policy, binder, or application in connection therewith is 5 void and of no effect and not subject to the cancellation 6 provisions of this Code. 7 (f) "A policy delivered or issued for delivery in this 8 State" shall include but not be limited to all binders of 9 insurance, whether written or oral, and all applications 10 bound for future delivery by a duly licensed resident agent. 11 A written binder of insurance issued for a term of 60 days or 12 less, which contains on its face a specific inception and 13 expiration date and which a copy has been furnished to the 14 insured, shall not be subject to the non-renewal requirements 15 of Section 143.17 of this Code. 16 (g) "Cancellation" or "cancelled" means the termination 17 of a policy by an insurer prior to the expiration date of the 18 policy. A policy of automobile or fire and extended coverage 19 insurance which expires by its own terms on the policy 20 expiration date unless advance premiums are received by the 21 insurer for succeeding policy periods shall not be considered 22 "cancelled" or a "cancellation" effected by the insurer in 23 the event such premiums are not paid on or before the policy 24 expiration date. 25 (h) "Commercial excess and umbrella liability policy" 26 means a policy written over one or more underlying policies 27 for an insured: 28 (1) that has at least 25 full-time employees at the 29 time the commercial excess and umbrella liability policy 30 is written and procures the insurance of any risk or 31 risks, other than life, accident and health, and annuity 32 contracts, as described in clauses (a) and (b) of Class 1 33 of Section 4 and clause (a) of Class 2 of Section 4, by 34 use of the services of a full-time employee acting as an HB1697 Engrossed -4- LRB9100985JSpcA 1 insurance manager or buyer; or 2 (2) whose aggregate annual premiums for all 3 property and casualty insurance on all risks is at least 4 $50,000. 5 (Source: P.A. 86-437; 87-1020.) 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.