Sen. John J. Cullerton
Filed: 3/19/2004
 
 

 




 

 		












09300SB2491sam002

LRB093 20569 AMC 48802 a






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AMENDMENT TO SENATE BILL 2491 




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    AMENDMENT NO. ______. Amend Senate Bill 2491, AS AMENDED, 
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in the introductory clause of Section 5, by replacing "and 
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143.17a" with "143.17a, and 513a11"; and

 
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in Section 5, immediately below Sec. 143.17a, by inserting the 
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following:
 



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    "(215 ILCS 5/513a11)  (from Ch. 73, par. 1065.60a11)



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    Sec. 513a11. Cancellation requirements upon default. 

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    (a) When a premium finance agreement contains a power of 
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attorney
enabling the premium finance company to cancel any 
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insurance contract or
contracts listed in the premium finance 
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agreement, the insurance contract
or contracts shall not be 
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cancelled by the premium finance company unless
the request for 
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cancellation is effectuated under this Section.

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    (b) Not less than 10 days written notice shall be mailed to 
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the named
insured of the intent of the premium finance company 
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to cancel the
insurance contract unless the default is cured 
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within the 10 day period.

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    (c) After expiration of the 10 day period, the premium 
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finance company
may request, in the name of the named insured, 
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cancellation of the insurance
contract or contracts by mailing 
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or hand delivering to the insurer a
request for cancellation, 
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and the insurance contract shall be cancelled as
if the request 
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for cancellation had been submitted by the named insured,
but 
 


 






09300SB2491sam002
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LRB093 20569 AMC 48802 a




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without requiring the return of the insurance contract or 
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contracts.
The premium finance company shall also mail a copy 
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of the request for
cancellation to the named insured at his 
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last known address.

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    (d) All statutory, regulatory, and contractual 
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restrictions providing
that the insurance contract may not be 
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cancelled unless notice is given to
a governmental agency, 
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mortgagee, or other third party shall apply where
cancellation 
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is effected under provisions of this Section. The insurer
shall 
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give the notice to any governmental agency, mortgagee, or other

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third party on or before the fifth business day after it 
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receives the
notice of cancellation from the premium finance 
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company. For the purposes of this Section, any governmental 
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agency, mortgagee, or other third party may opt to receive 
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notices electronically.


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    (e) In the event that the collection of return premiums for 
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the account of
the named insured results in a surplus over the 
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amount due from the named
insured, the premium finance company 
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shall refund the excess to the named
insured; however, no 
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refund is required if it amounts to less than $5.

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    (f) All cancellation provisions required of the premium 
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finance company
and insurer are applicable to any policy to 
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which Section 143.11 applies.

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(Source: P.A. 87-811.)".