IL SB3714

Life insurance policies covering persons age 64 or older that have been in force for at least one year cannot lapse for nonpayment of premium without mailing notice to both the policyowner and a designated secondary addressee at least 21 days before the lapse takes effect.

Insurers issuing new life insurance policies on or after January 1, 2021 must inform applicants of the right to designate a secondary addressee at application and allow designation changes at any time the policy is in force.

For policies with grace periods exceeding 51 days, the impending lapse notice must be mailed at least 21 days before the grace period expires.

Policies where premiums are paid monthly or more frequently by licensed agent collection, credit card, or automatic bank debit are exempt from the secondary notice requirement.

Insurers must notify the policyowner's agent of record of impending lapse at least 21 days before the effective date, unless the insurer maintains online systems allowing agents to independently check policy status or unless other specified conditions apply.

The Act takes effect January 1, 2021.