Notice of Cancellation of a life policy in IL

Effective January 1, 2022 under Public law 102-545, it added Section 235.1 was added to the insurance code.  This added  a new level of protection for insured from losing their coverage as a result of memory loss or dementia.  This bill was sponsored by State Senator Napoleon Harris III and had the full sponsor of the Big I & Naifa-IL  In a nutshell, here is what is required:

  1. At time of the application, the applicant must be given the opportunity to designate a 2nd address to receive notice of cancellation for nonpayment of premiums.
  2. At any other time, the applicant can make an addition or change with written notice to the insurance company with the name & address of the 2nd addressee.
  3. If there is a 2nd addressee listed, the insurance company must notify both of cancellation for nonpayment of premiums.  The 2nd addressee has no liability if payment is not made.
  4. Applicant can designated their insurance agent as the 2nd addressee.
  5. Exempt are  polices that  make monthly payments:
    1. to an agent,
    2. automatic bank draft or
    3.  use debit and credit cards.

A full copy of this change can be found in 215 ILCS 5/235.1