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| [ Introduced ] | [ Engrossed ] | [ House Amendment 002 ] |
| [ Senate Amendment 001 ] |
91_SB1024enr SB1024 Enrolled LRB9103039JSpc 1 AN ACT to amend the Illinois Insurance Code by changing 2 Sections 143.13 and 143.17. 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 Sections 143.13 and 143.17 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. 27 (b) "Policy of fire and extended coverage insurance" 28 means a policy delivered or issued for delivery in this 29 State, that includes but is not limited to, the perils of 30 fire and extended coverage, and covers real property used 31 principally for residential purposes up to and including a 4 SB1024 Enrolled -2- LRB9103039JSpc 1 family dwelling or any household or personal property that is 2 usual or incidental to the occupancy to any premises used for 3 residential purposes. 4 (c) "All other policies of personal lines" means any 5 other policy of insurance issued to a natural person for 6 personal or family protection. 7 (d) "Renewal" or "to renew" means (1) any change to an 8 entire line of business in accordance with subsection b-5 of 9 Section 143.17 and (2) the issuance and delivery by an 10 insurer of a policy superseding at the end of the policy 11 period a policy previously issued and delivered by the same 12 insurer or the issuance and delivery of a certificate or 13 notice extending the term of a policy beyond its policy 14 period or term; however, any successive policies issued by 15 the same insurer to the same insured, for the same or similar 16 coverage, shall be considered a renewal policy. 17 Any policy with a policy period or term of less than 6 18 months or any policy with no fixed expiration date shall be 19 considered as if written for successive policy periods or 20 terms of 6 months for the purpose of "renewal" or "to renew" 21 as defined in this paragraph (d) and for the purpose of any 22 non-renewal notice required by Section 143.17 of this Code. 23 (e) "Nonpayment of premium" means failure of the named 24 insured to discharge, when due, any of his obligations in 25 connection with the payment of premiums or any installment of 26 such premium that is payable directly to the insurer or to 27 its agent. Premium shall mean the premium that is due for an 28 individual policy which shall not include any membership dues 29 or other consideration required to be a member of any 30 organization in order to be eligible for such policy. 31 (f) "A policy delivered or issued for delivery in this 32 State" shall include but not be limited to all binders of 33 insurance, whether written or oral, and all applications 34 bound for future delivery by a duly licensed resident agent. SB1024 Enrolled -3- LRB9103039JSpc 1 A written binder of insurance issued for a term of 60 days or 2 less, which contains on its face a specific inception and 3 expiration date and which a copy has been furnished to the 4 insured, shall not be subject to the non-renewal requirements 5 of Section 143.17 of this Code. 6 (g) "Cancellation" or "cancelled" means the termination 7 of a policy by an insurer prior to the expiration date of the 8 policy. A policy of automobile or fire and extended coverage 9 insurance which expires by its own terms on the policy 10 expiration date unless advance premiums are received by the 11 insurer for succeeding policy periods shall not be considered 12 "cancelled" or a "cancellation" effected by the insurer in 13 the event such premiums are not paid on or before the policy 14 expiration date. 15 (h) "Commercial excess and umbrella liability policy" 16 means a policy written over one or more underlying policies 17 for an insured: 18 (1) that has at least 25 full-time employees at the 19 time the commercial excess and umbrella liability policy 20 is written and procures the insurance of any risk or 21 risks, other than life, accident and health, and annuity 22 contracts, as described in clauses (a) and (b) of Class 1 23 of Section 4 and clause (a) of Class 2 of Section 4, by 24 use of the services of a full-time employee acting as an 25 insurance manager or buyer; or 26 (2) whose aggregate annual premiums for all 27 property and casualty insurance on all risks is at least 28 $50,000. 29 (Source: P.A. 86-437; 87-1020.) 30 (215 ILCS 5/143.17) (from Ch. 73, par. 755.17) 31 Sec. 143.17. Notice of intention not to renew. 32 a. No company shall fail to renew any policy of 33 insurance, as defined in subsections (a), (b), (c), and (h) SB1024 Enrolled -4- LRB9103039JSpc 1 of Section 143.13, to which Section 143.11 applies, unless it 2 shall send by mail to the named insured at least 30 days 3 advance notice of its intention not to renew. The company 4 shall maintain proof of mailing of such notice on a 5 recognized U.S. Post Office form or a form acceptable to the 6 U. S. Post Office or other commercial mail delivery service. 7 An exact and unaltered copy of such notice shall also be sent 8 to the insured's broker, if known, or the agent of record and 9 to the mortgagee or lien holder at the last mailing address 10 known by the company. However, where cancellation is for 11 nonpayment of premium, the notice of cancellation must be 12 mailed at least 10 days before the effective date of the 13 cancellation. 14 b. This Section does not apply if the company has 15 manifested its willingness to renew directly to the named 16 insured. Such written notice shall specify the premium amount 17 payable, including any premium payment plan available, and 18 the name of any person or persons, if any, authorized to 19 receive payment on behalf of the company. If no person is so 20 authorized, the premium notice shall so state. The notice of 21 nonrenewal and the proof of mailing shall be effected on the 22 same date. 23 b-5. This Section does not apply if the company 24 manifested its willingness to renew directly to the named 25 insured. However, no company may impose changes in 26 deductibles or coverage for any policy forms applicable to an 27 entire line of business enumerated in subsections (a), (b), 28 (c), and (h) of Section 143.13 to which Section 143.11 29 applies unless the company mails to the named insured written 30 notice of the change in deductible or coverage at least 60 31 days prior to the renewal or anniversary date. An exact and 32 unaltered copy of the notice shall also be sent to the 33 insured's broker, if known, or the agent of record. 34 c. Should a company fail to comply with (a) or (b) of SB1024 Enrolled -5- LRB9103039JSpc 1 this Section, the policy shall terminate only on the 2 effective date of any similar insurance procured by the 3 insured with respect to the same subject or location 4 designated in both policies. 5 d. Renewal of a policy does not constitute a waiver or 6 estoppel with respect to grounds for cancellation which 7 existed before the effective date of such renewal. 8 e. In all notices of intention not to renew any policy 9 of insurance, as defined in Section 143.11 the company shall 10 provide a specific explanation of the reasons for nonrenewal. 11 (Source: P.A. 89-669, eff. 1-1-97.)