State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]



92_SB2147

 
                                               LRB9216116EGfg

 1        AN ACT in relation to insurance.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Insurance  Code  is  amended  by
 5    changing Section 225 as follows:

 6        (215 ILCS 5/225) (from Ch. 73, par. 837)
 7        Sec.  225.   Prohibited  Provisions  for  Life  Insurance
 8    Policies.
 9        (1)  After  the  effective date of this Code no policy of
10    life insurance may be issued or delivered in this State if it
11    includes any of the following provisions:
12        (a)  A provision  limiting  the  time  within  which  any
13    action  may be commenced to less than 3 years after the cause
14    of action accrues.
15        (b)  A provision by  which  the  policy  purports  to  be
16    issued  or take effect more than 6 months before the original
17    application for the insurance was made,  but  this  provision
18    does  not  apply  in  any case of a transfer from one form of
19    policy to another in connection with which the  policy  owner
20    receives  credit  for any reserve accumulation under the form
21    of policy from which the transfer was made.
22        (c)  A provision for any mode of settlement  at  maturity
23    after  the expiration of the contestable period of the policy
24    of  less  value  than  the  amount  insured   plus   dividend
25    additions, if any, less any indebtedness to the company on or
26    secured  by  the policy, and less any premium that may by the
27    terms of the policy  be  deducted,  except  as  permitted  by
28    clause (c) of subsection (1) of Section 224.
29        (d)  A provision for forfeiture of the policy for failure
30    to  repay  any loan on the policy, or to pay interest on such
31    loan, while the total indebtedness on the  policy,  including
 
                            -2-                LRB9216116EGfg
 1    interest, is less than the loan value thereof.
 2        (e)  A  provision to the effect that the agent soliciting
 3    the insurance is the agent of the person  insured  under  the
 4    policy,  or  making the acts or representations of such agent
 5    binding upon the person so insured under the policy.
 6        (f)  A provision limiting  the  amount  payable  under  a
 7    policy  by  reason of death occurring after the expiration of
 8    the contestable period to less than the face  amount  thereof
 9    on  account  of  the kind or character of disease causing the
10    insured's death.
11        (2)  The provisions of  this  section  do  not  apply  to
12    policies  of  reinsurance,  nor to policies issued or granted
13    under the nonforfeiture provisions prescribed in  clause  (g)
14    of subsection (1) of Section 224.
15    (Source: P.A. 83-345.)

[ Top ]