Bill > HB3799

This bill amends the Illinois Insurance Code to introduce new requirements for insurance companies regarding cancellation notices and climate risk disclosure. The bill extends the notice period for policy cancellations, mandating that for the first 60 days of coverage, cancellation notices must be mailed at least 30 days prior to the effective date, and after 60 days, notices must be mailed at least 60 days in advance. For nonpayment of premiums, a 10-day notice remains in effect. The bill also creates a new Climate Risk Disclosure Article that applies to insurance companies licensed in Illinois under Classes 2 and 3 that write $100 million or more in annual premiums. These companies will be required to participate in climate surveys issued by the National Association of Insurance Commissioners (NAIC) when directed by the Illinois Department of Insurance. The purpose of this new article is to enhance transparency about how insurers manage climate-related risks and to clarify the department's authority to require companies to participate in climate surveys. The monetary threshold for applicability can be adjusted by rule, providing flexibility for future implementation. Additionally, the bill includes provisions for market conduct actions, examinations, and potential penalties for non-compliance, with fines of up to $10,000 per day for certain violations.

Business and Industry

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3799&GAID=18&DocTypeID=HB&SessionID=114&GA=104