HB 1954 — REGULATION-TECH

Access may also be granted to the National Association of Insurance Commissioners.

Those parties must agree in writing before receiving the information to provide to it the same confidential treatment as required by this Section, unless the prior written consent of the company to which it pertains has been obtained.

This subsection (f) applies to market conduct examinations described in Section 132 of this Code.

(Source:

P.A.

87-108.) HB1954 Enrolled - 6 - LRB100 04579 SMS 14585 b (215 ILCS 5/143.14) (from Ch.

73, par.

Notification of the cancellation A copy of all such notices shall also be sent to the insured's broker if known, or the agent of record, if known, and to the mortgagee or lien holder listed on the policy at the last mailing address known to the company.

(b) Whenever a financed insurance contract is cancelled, the insurer shall return whatever gross unearned premiums are HB1954 Engrossed - 2 - LRB100 04579 SMS 14585 b due under the insurance contract or contracts not to exceed the unpaid balance due the premium finance company directly to the premium finance company effecting the cancellation for the account of the named insured.

The request for the unearned premium by the premium finance company shall be in the manner of a monthly account, current accounting by HB1954 Enrolled - 7 - LRB100 04579 SMS 14585 b producer, policy number, unpaid balance and name of insured for each cancelled amount.

(c) Whenever a premium finance agreement contains a power of attorney enabling the premium finance company to cancel any insurance contract or contracts in the agreement, the insurer shall honor the date of cancellation as set forth in the request from the premium finance company without requiring the HB1954 Engrossed - 3 - LRB100 04579 SMS 14585 b return of the insurance contract or contracts.

(d) All statutory regulatory and contractual restrictions HB1954 Enrolled - 8 - LRB100 04579 SMS 14585 b providing that the insurance contract may not be cancelled unless the required notice is mailed to a governmental agency, mortgagee, lienholder, or other third party shall apply where cancellation is effected under a power of attorney under a premium finance agreement.

1-1-05.) (215 ILCS 5/143.15) (from Ch.

73, par.

755.15) Sec.

143.15.

Mailing of cancellation notice.

All notices of cancellation of insurance as defined in subsections (a), (b) and (c) of Section 143.13 must be mailed at least 30 days prior to the effective date of cancellation to the named insured;

however, if cancellation is for nonpayment of premium, the notice of cancellation must be mailed at least 10 days before the effective date of the cancellation to and mortgagee or lien holder, if known, at the last mailing address known to the company.

All notices of cancellation to the named insured shall include a specific explanation of the reason or reasons for cancellation.

However, where cancellation is for nonpayment of premium, the notice of cancellation must be mailed at least 10 days before the effective date of the cancellation.

For purposes of this Section, the mortgagee or lien holder, if known, may opt to accept notification electronically.

(Source:

P.A.

93-713, eff.

1-1-05.) HB1954 Enrolled - 9 - LRB100 04579 SMS 14585 b (215 ILCS 5/143.16) (from Ch.

73, par.

755.16) Sec.

143.16.

Mailing of cancellation notice.

All notices of cancellation of insurance to which Section 143.11 applies, except for those defined in subsections (a), (b) and (c) of Section 143.13 must be mailed at least 30 days prior to the effective date of cancellation during the first 60 days of coverage.

After the coverage has been effective for 61 days or more, all notices must be mailed at least 60 days prior to the effective date of cancellation.

However, where cancellation is for nonpayment of premium, the notice of cancellation must be mailed at least 10 days before the effective date of the cancellation.

All such notices shall include a specific explanation of the reason or reasons for cancellation and shall be mailed to the named insured and mortgagee or lien holder, if known, at the last mailing address known to the company.

However, where cancellation is for nonpayment of premium, the notice of cancellation must be mailed at least 10 days before the effective date of the cancellation.

For purposes of this Section, the mortgagee or lien holder, if known, may opt to accept notification electronically.

(Source:

P.A.

93-713, eff.

No company shall fail to renew any policy of insurance, as defined in subsections (a), (b), (c), and (h) of Section HB1954 Enrolled - 10 - LRB100 04579 SMS 14585 b 143.13, to which Section 143.11 applies, unless it shall send by mail to the named insured at least 30 days advance notice of its intention not to renew.

NotificationThe ofnonrenewal theshall intention not tobecome reneweffective Anuntil exactat andleast unaltered30 copydays offrom such notice shall also be HB1954 Engrossed - 4 - LRB100 04579 SMS 14585 b sent to the insured'sproof broker,of ifmailing known,date orof the agentnotice of record and to any the mortgageename orinsured. lien holder listed on the policy at the last mailing address known by the company.

Notification An exact and unaltered copy of such notice shall also be sent to the insured's broker, if known, or the agent of record,if known, and to the last known mortgagee or lien holder at the last mailing address known by the company.

HB1954 Enrolled - 11 - LRB100 04579 SMS 14585 b b-5.

Notice An exact and unaltered copy of the notice HB1954 Engrossed - 5 - LRB100 04579 SMS 14585 b shall also be sent to the insured's broker, if known, or the agent of record.

In all notices of intention not to renew any policy of insurance, as defined in Section 143.11 the company shall provide the named insured a specific explanation of the reasons for nonrenewal.

1-1-05.) SectionHB1954 99.Enrolled - 12 - LRB100 04579 SMS 14585 b (215 ILCS 5/143.17a) (from Ch.

73, par.

755.17a) Sec.

143.17a.

Notice of intention not to renew.

(a) A company intending to nonrenew any policy of insurance to which Section 143.11 applies, except for those defined in subsections (a), (b), (c), and (h) of Section 143.13, must mail written notice to the named insured at least 60 days prior to the expiration date of the current policy.

The notice to the named insured shall provide a specific explanation of the reasons for nonrenewal.

In all notices of intention not to renew any policy of insurance, as defined in Section 143.11, the company shall provide a specific explanation of the reasons for nonrenewal.

A company may not extend the current policy period for purposes of providing notice of its intention not to renew required under this subsection (a).

(b) A company intending to renew any policy of insurance to which Section 143.11 applies, except for those defined in subsections (a), (b), (c), and (h) of Section 143.13, with an increase in premium of 30% or more or with changes in deductibles or coverage that materially alter the policy must mail or deliver to the named insured written notice of such increase or change in deductible or coverage at least 60 days prior to the renewal or anniversary date.

If a company has failed to provide notice of intention to renew required under this subsection (b) at least 60 days prior to the renewal or anniversary date, but does so no less than 31 days prior to the HB1954 Enrolled - 13 - LRB100 04579 SMS 14585 b renewal or anniversary date, the company may extend the current policy at the current terms and conditions for the period of time needed to equal the 60 day time period required to provide notice of intention to renew by this subsection (b).

The increase in premium shall be the renewal premium based on the known exposure as of the date of the quotation compared to the premium as of the last day of coverage for the current year's policy, annualized.

The premium on the renewal policy may be subsequently amended to reflect any change in exposure or reinsurance costs not considered in the quotation.

(c) A company that has failed to provide notice of intention to nonrenew under subsection (a) of this Section and has failed to provide notice of intention to renew as prescribed under subsection (b) of this Section must renew the expiring policy under the same terms and conditions for an additional year or until the effective date of any similar insurance is procured by the insured, whichever is earlier.

The company may increase the renewal premium.

However, such increase must be less than 30% of the expiring term's premium and notice of such increase must be delivered to the named insured on or before the date of expiration of the current policy period.

(d) Under subsection (a), the company shall maintain proof of mailing of the notice of intention not to renew to the named insured on one of the following forms:

a recognized U.S.

Post Office form or a form acceptable to the U.S.

Post Office or HB1954 Enrolled - 14 - LRB100 04579 SMS 14585 b other commercial mail delivery service.

Under subsections (b) and (c), proof of mailing or proof of receipt of the notice of intention to renew to the named insured may be proven by a sworn affidavit by the company as to the usual and customary business practices of mailing notice pursuant to this Section or may be proven consistent with Illinois Supreme Court Rule 236.

For all notice requirements under this Section, an exact and unaltered copy of the notice to the named insured shall also be sent to the named insured's producer, if known, or the producer of record.

Notification For notices of intention to not renew, an exact and unaltered copy of the notice to the named insured shall also be sent to the mortgagee or lien holder listed on the policy at the last mailing address known by the company.

(e) Renewal of a policy does not constitute a waiver or estoppel with respect to grounds for cancellation that existed before the effective date of such renewal.

(f) For purposes of this Section, the named insured's producer, if known, or the producer of record and the mortgagee or lien holder may opt to accept notification electronically.

(Source:

P.A.

95-533, eff.

6-1-08.) Section 99.