INS CODE-LIFE INSURANCE/NOTICE Senate SponsorsSen. Napoleon Harris, III-Jacqueline Y. Collins House Sponsors(Rep. Robyn Gabel) 8/20/2021SenatePublic Act . . . . . . . . . 102-0542 215 ILCS 5/143.17b new Amends the Illinois Insurance Code. Provides that a contract for life insurance covering a natural person 64 years of age or older that has been in force for at least one year may not be lapsed for nonpayment of premium unless the insurer has mailed a notification of the impending lapse in coverage to the policyowner and to a specified secondary addressee if such addressee has been designated in writing by name and address by the policyowner. Provides that an insurer issuing a life insurance contract on or after January 1, 2022 shall notify the applicant of the right to designate a secondary addressee at the time of application for the policy, on a form provided by the insurer and at any time the policy is in force, by submitting a written notice to the insurer containing the name and address of the secondary addressee. Provides that the notice of impending lapse in coverage must be mailed to the policyowner and the secondary addressee at least 21 days before the expiration of the grace period provided in the policy in specified circumstances. Provides that the secondary notice requirement does not apply to any 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 if the policyowner has a life agent of record or any agent of record, the insurer must also notify the agent of the impending lapse in coverage at least 21 days before the effective date of the lapse. Provides that an insurer is not required to notify the agent in specified circumstances. Effective January 1, 2022.Senate Floor Amendment No. 1 Deletes reference to:215 ILCS 5/143.17b newAdds reference to:215 ILCS 5/235.1 newReplaces everything after the enacting clause. 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. 2/26/2021SenateFiled with Secretary by Sen. Napoleon Harris, III 2/26/2021SenateFirst Reading 2/26/2021SenateReferred to Assignments 3/16/2021SenateAssigned to Insurance 3/16/2021SenateAdded as Chief Co-Sponsor Sen. Jacqueline Y. Collins 3/24/2021SenateDo Pass Insurance; 013-000-000 3/24/2021SenatePlaced on Calendar Order of 2nd Reading March 25, 2021 4/16/2021SenateSenate Floor Amendment No. 1 Filed with Secretary by Sen. Napoleon Harris, III 4/16/2021SenateSenate Floor Amendment No. 1 Referred to Assignments 4/20/2021SenateSenate Floor Amendment No. 1 Assignments Refers to Insurance 4/21/2021SenateSenate Floor Amendment No. 1 Recommend Do Adopt Insurance; 014-000-000 4/22/2021SenateSenate Floor Amendment No. 1 Adopted; Harris 4/22/2021SenateSecond Reading 4/22/2021SenatePlaced on Calendar Order of 3rd Reading April 23, 2021 4/23/2021SenateRule 2-10 Third Reading Deadline Established As April 30, 2021 4/30/2021SenateRule 2-10 Third Reading Deadline Established As May 7, 2021 5/6/2021SenateThird Reading - Passed; 059-000-000 5/7/2021HouseArrived in House 5/7/2021HouseChief House Sponsor Rep. Jay Hoffman 5/11/2021HouseFirst Reading 5/11/2021HouseReferred to Rules Committee 5/11/2021HouseAlternate Chief Sponsor Changed to Rep. Robyn Gabel 5/13/2021HouseAssigned to Insurance Committee 5/13/2021HouseCommittee/Final Action Deadline Extended-9(b) May 28, 2021 5/20/2021HouseDo Pass / Consent Calendar Insurance Committee; 018-000-000 5/21/2021HousePlaced on Calendar 2nd Reading - Consent Calendar 5/24/2021HouseSecond Reading - Consent Calendar 5/24/2021HouseHeld on Calendar Order of Second Reading - Consent Calendar 5/25/2021HousePlaced on Calendar Order of 3rd Reading - Consent Calendar 5/26/2021HouseThird Reading - Consent Calendar - First Day 5/27/2021HouseThird Reading - Consent Calendar - Passed 116-000-000 5/27/2021SenatePassed Both Houses 6/25/2021SenateSent to the Governor 8/20/2021SenateGovernor Approved 8/20/2021SenateEffective Date January 1, 2022 8/20/2021SenatePublic Act . . . . . . . . . 102-0542