State of Illinois
91st General Assembly

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[ Introduced ][ Engrossed ][ House Amendment 002 ]
[ Senate Amendment 001 ]


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
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 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.)

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