Bill Text: IL SB2112 | 2021-2022 | 102nd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Insurance Code. Provides that a life company issuing an individual life insurance contract on or after January 1, 2022 shall notify an applicant, in writing on a form prescribed by the company at the time of application for the policy, of the applicant's right to designate a secondary addressee to receive notice of cancellation of the policy based on nonpayment of premium. Provides that the applicant may make the secondary addressee designation at the time of application for such policy or at any time such policy is in force by submitting a written notice to the insurer containing the name and address of the secondary addressee. Provides that an insurer's transmission to a secondary addressee of a copy of a notice of cancellation based on nonpayment of premium shall be in addition to the transmission of the original document to the policyholder, and that the copy of the notice of cancellation transmitted to the secondary addressee shall be made in the same manner and form required for the transmission of the notice to the policyholder. Provides that the designation of a secondary addressee shall not constitute acceptance of any liability on the part of the secondary addressee or insurer for services provided to the policyholder. Provides that the secondary notice requirement does not apply to any individual life insurance contract under which premiums are payable monthly or more frequently and are regularly collected by a licensed agent or are paid by credit card or any preauthorized check processing or automatic debit service of a financial institution. Provides that nothing in the language shall prohibit an applicant or policyholder from designating a life insurance agent of record as his or her secondary addressee. Effective January 1, 2022.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2021-08-20 - Public Act . . . . . . . . . 102-0542 [SB2112 Detail]
Download: Illinois-2021-SB2112-Introduced.html
Bill Title: Amends the Illinois Insurance Code. Provides that a life company issuing an individual life insurance contract on or after January 1, 2022 shall notify an applicant, in writing on a form prescribed by the company at the time of application for the policy, of the applicant's right to designate a secondary addressee to receive notice of cancellation of the policy based on nonpayment of premium. Provides that the applicant may make the secondary addressee designation at the time of application for such policy or at any time such policy is in force by submitting a written notice to the insurer containing the name and address of the secondary addressee. Provides that an insurer's transmission to a secondary addressee of a copy of a notice of cancellation based on nonpayment of premium shall be in addition to the transmission of the original document to the policyholder, and that the copy of the notice of cancellation transmitted to the secondary addressee shall be made in the same manner and form required for the transmission of the notice to the policyholder. Provides that the designation of a secondary addressee shall not constitute acceptance of any liability on the part of the secondary addressee or insurer for services provided to the policyholder. Provides that the secondary notice requirement does not apply to any individual life insurance contract under which premiums are payable monthly or more frequently and are regularly collected by a licensed agent or are paid by credit card or any preauthorized check processing or automatic debit service of a financial institution. Provides that nothing in the language shall prohibit an applicant or policyholder from designating a life insurance agent of record as his or her secondary addressee. Effective January 1, 2022.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2021-08-20 - Public Act . . . . . . . . . 102-0542 [SB2112 Detail]
Download: Illinois-2021-SB2112-Introduced.html
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
1 | AN ACT concerning regulation.
| |||||||||||||||||||
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 | adding Section 143.17b as follows:
| |||||||||||||||||||
6 | (215 ILCS 5/143.17b new) | |||||||||||||||||||
7 | Sec. 143.17b. Secondary notice of intention to cancel life | |||||||||||||||||||
8 | insurance. | |||||||||||||||||||
9 | (a) Except as provided in this Section, a contract for | |||||||||||||||||||
10 | life insurance amended, delivered, issued, or renewed in this | |||||||||||||||||||
11 | State on or after January 1, 2022 covering a natural person 64 | |||||||||||||||||||
12 | years of age or older that has been in force for at least one | |||||||||||||||||||
13 | year may not be lapsed for nonpayment of premium unless, after | |||||||||||||||||||
14 | expiration of the grace period and at least 21 days before the | |||||||||||||||||||
15 | effective date of any such lapse, the insurer has mailed a | |||||||||||||||||||
16 | notification of the impending lapse in coverage to the | |||||||||||||||||||
17 | policyowner and to a specified secondary addressee if such | |||||||||||||||||||
18 | addressee has been designated in writing by name and address | |||||||||||||||||||
19 | by the policyowner. An insurer issuing a life insurance | |||||||||||||||||||
20 | contract on or after January 1, 2022 shall notify the | |||||||||||||||||||
21 | applicant of the right to designate a secondary addressee at | |||||||||||||||||||
22 | the time of application for the policy, on a form provided by | |||||||||||||||||||
23 | the insurer and at any time the policy is in force, by |
| |||||||
| |||||||
1 | submitting a written notice to the insurer containing the name | ||||||
2 | and address of the secondary addressee. For purposes of any | ||||||
3 | life insurance policy that provides a grace period of more | ||||||
4 | than 51 days for nonpayment of premiums, the notice of | ||||||
5 | impending lapse in coverage required by this Section must be | ||||||
6 | mailed to the policyowner and the secondary addressee at least | ||||||
7 | 21 days before the expiration of the grace period provided in | ||||||
8 | the policy. This Section does not apply to any life insurance | ||||||
9 | contract under which premiums are payable monthly or more | ||||||
10 | frequently and are regularly collected by a licensed agent or | ||||||
11 | are paid by credit card or any preauthorized check processing | ||||||
12 | or automatic debit service of a financial institution. | ||||||
13 | (b) If the policyowner has a life agent of record or any | ||||||
14 | agent of record, the insurer must also notify the agent of the | ||||||
15 | impending lapse in coverage or mail or send electronically a | ||||||
16 | copy of the notification of the impending lapse in coverage | ||||||
17 | under subsection (a) to the agent at least 21 days before the | ||||||
18 | effective date of any such lapse. Receipt of such notice does | ||||||
19 | not make the agent responsible for any lapse in coverage. An | ||||||
20 | insurer is not required to notify the agent under this | ||||||
21 | subsection if any of the following apply: | ||||||
22 | (1) The insurer maintains an online system that allows | ||||||
23 | an agent to independently determine if a policy has | ||||||
24 | lapsed. | ||||||
25 | (2) The insurer maintains a procedure that allows an | ||||||
26 | agent to independently determine whether the notice of |
| |||||||
| |||||||
1 | lapse has been sent to the insured. | ||||||
2 | (3) The insurer has no record of the current agent of | ||||||
3 | record. | ||||||
4 | (4) The agent is employed by the insurer or an | ||||||
5 | affiliate of the insurer.
| ||||||
6 | Section 99. Effective date. This Act takes effect January | ||||||
7 | 1, 2022.
|