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:
- 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.
- 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.
- 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.
- Applicant can designated their insurance agent as the 2nd addressee.
- Exempt are polices that make monthly payments:
- to an agent,
- automatic bank draft or
- use debit and credit cards.
A full copy of this change can be found in 215 ILCS 5/235.1