Bill Text: IL HB4650 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Provides that an insurer shall not use misstatements made by an applicant in an application for an accident and health insurance policy to void the policy or to deny a claim for loss incurred or disability after one year (rather than 2 years) from the date of issue of the policy, unless the misstatements are fraudulent.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB4650 Detail]

Download: Illinois-2019-HB4650-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4650 Introduced , by Rep. Darren Bailey SYNOPSIS AS INTRODUCED:
215 ILCS 5/357.3 from Ch. 73, par. 969.3
Amends the Illinois Insurance Code. Provides that an insurer shall not use misstatements made by an applicant in an application for an accident and health insurance policy to void the policy or to deny a claim for loss incurred or disability after one year (rather than 2 years) from the date of issue of the policy, unless the misstatements are fraudulent.
LRB101 17310 BMS 66715 b
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 357.3 as follows:
(215 ILCS 5/357.3) (from Ch. 73, par. 969.3)
Sec. 357.3. "TIME LIMIT ON CERTAIN DEFENSES:
(1) After one year 2 years from the date of issue of this
policy no misstatements, except fraudulent misstatements, made
by the applicant in the application for such policy shall be
used to void the policy or to deny a claim for loss incurred or
disability (as defined in the policy) commencing after the
expiration of such one-year 2 year period."
(The foregoing policy provision shall not be so construed
as to affect any legal requirement for avoidance of a policy or
denial of a claim during such initial one-year 2 year period,
nor to limit the application of Section section 357.15 through
Section section 357.19 in the event of misstatement with
respect to age or occupation or other insurance.)
A policy which the insured has the right to continue in
force subject to its terms by the timely payment of premium (1)
until at least age 50 or, (2) in the case of a policy issued
after age 44, for at least 5 years from its date of issue, may

HB4650 - 2 - LRB101 17310 BMS 66715 b
contain in lieu of the foregoing the following provisions (from
which the clause in parentheses may be omitted at the company's
option) under the caption "INCONTESTABLE":
"After this policy has been in force for a period of one
year 2 years during the lifetime of the insured (excluding any
period during which the insured is a person with a disability),
it shall become incontestable as to the statements contained in
the application."
(2) "No claim for loss incurred or disability (as defined
in the policy) commencing after one year 2 years from the date
of issue of this policy shall be reduced or denied on the
ground that a disease or physical condition not excluded from
coverage by name or specific description effective on the date
of loss had existed prior to the effective date of coverage of
this policy."
(Source: P.A. 99-143, eff. 7-27-15.)