Sec. 1309. Required disclosures.

485 words·~2 min read·/il/chapter-215/act-5/1309

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)In conjunction with the offer of new coverage involving any consolidation, the new insurer shall disclose in writing to each insured under the old plan or plans at least 30 days prior to the effective date of the new coverage the following:

(1)Identification of the insured mortgage.

(2)The name of the insured or insureds.

(3)Name of the owner of the individual policy or master policy (if group insurance) under both the new and old plans, if known.

(4)The premium for the new and old coverage.

(5)Amount of coverage for both the new and old plans. If the amount of coverage for the old plan is not known, a statement that the amount may be scheduled and it may be less than or greater than the amount of the loan and the insured should check the policy schedule for an exact amount of coverage.

(6)Effective dates of the old coverage if the contestable or suicide period have not expired as of the effective date of the new coverage. If the new insurer waives the contestable and suicide period, then the effective date of the old coverage does not need to be disclosed.

(7)Name of the beneficiary under the old plan, if known.

(8)A statement as to whether the old plan was an individual or group plan and a statement as to whether the new plan is an individual or a group plan.

(9)A statement that neither the old plan or new plan is required.

(10)A statement that the prospective insured may have the right to continue or convert his old coverage by paying premiums directly to the old insurer, and what the prospective insured must do to keep the old coverage in effect including, but not limited to, the name and address of the company involved, the policy number or other information which reasonably identifies the insured's plan of coverage, the amount of the premium and where it is to be sent.

(11)A statement that the mortgage payment will be reduced by the amount of the old plan premium if the new plan is not accepted.

(12)Name and home office address of the new and old insurer, as well as the address and phone number for the customer services office for Illinois insureds.

(13)The effective date of the new coverage.

(14)Whether premium rates under the new plan are guaranteed.

(15)Material differences, if any between the new plan and the old plan.

(b)Any insurer which fails to provide the written notice required by subsection

(a)at least 30 days prior to the effective date of the new coverage shall notify the debtor, in writing, that he has the right to an unconditional refund of all premiums paid for the new coverage as long as he exercises that right, in writing, within 30 days from that notification.