Bill Text: IL SB1967 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Illinois Insurance Code. Provides that if a company opts not to obtain readily available information for named insureds and drivers provided by the applicant at the time of application to underwrite the risk prior to issuing the policy, the company shall not defeat, avoid, or rescind the policy of insurance based on obtaining the readily available information after a loss has occurred or a claim is filed. Defines "readily available information".
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-01-09 - Session Sine Die [SB1967 Detail]
Download: Illinois-2017-SB1967-Introduced.html
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| 1 | AN ACT concerning regulation.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Insurance Code is amended by | |||||||||||||||||||
| 5 | changing Section 154 as follows:
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| 6 | (215 ILCS 5/154) (from Ch. 73, par. 766)
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| 7 | Sec. 154. Misrepresentations and false warranties.
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| 8 | (a) No misrepresentation or false warranty made by the | |||||||||||||||||||
| 9 | insured or in his
behalf in the negotiation for a policy of | |||||||||||||||||||
| 10 | insurance, or breach of a
condition of such policy shall defeat | |||||||||||||||||||
| 11 | or avoid the policy or prevent its
attaching unless such | |||||||||||||||||||
| 12 | misrepresentation, false warranty or condition shall
have been | |||||||||||||||||||
| 13 | stated in the policy or endorsement or rider attached thereto, | |||||||||||||||||||
| 14 | or
in the written application therefor. No such | |||||||||||||||||||
| 15 | misrepresentation
or false warranty shall defeat or avoid the | |||||||||||||||||||
| 16 | policy unless it shall have
been made with actual intent to | |||||||||||||||||||
| 17 | deceive or materially affects either the
acceptance of the risk | |||||||||||||||||||
| 18 | or the hazard assumed by the company. With respect to
a policy | |||||||||||||||||||
| 19 | of insurance as defined in subsection (a), (b), or (c) of
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| 20 | Section 143.13,
except life, accident and health, fidelity and | |||||||||||||||||||
| 21 | surety, and ocean marine
policies,
a policy or
policy renewal | |||||||||||||||||||
| 22 | shall not be rescinded after the policy has been in effect for
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| 23 | one year or one policy term, whichever is less. This Section
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| 1 | shall not apply to policies
of marine or transportation | ||||||
| 2 | insurance.
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| 3 | (b) If a company opts not to obtain readily available | ||||||
| 4 | information for named insureds and drivers provided by the | ||||||
| 5 | applicant at the time of application to underwrite the risk | ||||||
| 6 | prior to issuing the policy, the company shall not defeat, | ||||||
| 7 | avoid, or rescind the policy of insurance based on obtaining | ||||||
| 8 | the readily available information after a loss has occurred or | ||||||
| 9 | a claim is filed. | ||||||
| 10 | As used in this subsection, "readily available | ||||||
| 11 | information" means information that appears on the motor | ||||||
| 12 | vehicle record (MVR) maintained by the Secretary of State or | ||||||
| 13 | the LexisNexis Comprehensive Loss Underwriting Exchange | ||||||
| 14 | (C.L.U.E.) Auto Reports, or the corresponding subsequent | ||||||
| 15 | equivalent. | ||||||
| 16 | (Source: P.A. 89-413, eff. 6-1-96.)
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