215 ILCS 5/143.14
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IX - Provisions Applicable To All Companies

 (from Ch. 73, par. 755.14)Sec. 143.14. Notice of cancellation.(a) No notice of cancellation of any  policy of insurance, to which  Section 143.11 applies, shall be effective unless mailed by the company  to the named insured at the last mailing  address known by the company.  The company shall maintain proof of mailing of such notice on a recognized  U.S. Post Office form or a form acceptable to the U.S. Post Office or  other commercial mail delivery service. Notification shall also be sent to the insured's broker if known, or the agent of  record, if known, and to the mortgagee or lien holder listed on the policy. For purposes of this Section, the mortgage or lien holder, insured's broker, if known, or the agent of record may opt to accept notification electronically.(b) Whenever a financed insurance contract is cancelled, the insurer  shall return  whatever gross unearned premiums are due  under the insurance contract or contracts not to exceed the unpaid balance  due the premium finance company directly to the premium finance  company effecting the cancellation for the account of the named insured.  The return premium must be mailed to the premium finance company within  60 days.  The request for the unearned premium by the premium finance company shall  be in the manner of a monthly account, current accounting by producer,  policy number, unpaid balance and name of insured for each cancelled amount.  In the event the insurance contract or contracts are subject to audit, the  insurer shall retain the right to withhold the return of the portion of  premium that can be identified to the contract or contracts until the audit  is completed.  Within 30 days of the completion of the audit, if a premium  retained by the insurer after crediting the earned premium would result in  a surplus, the insurer shall return the surplus directly to the premium  finance company.  If the audit should result in an additional premium due  the insurer, the obligation for the collection of this premium shall fall  upon the insurer and not affect any other contract or contracts currently  being financed by the premium finance company for the named insured.(c) Whenever a premium finance agreement contains a power of attorney  enabling the premium finance company to cancel any insurance contract or contracts  in the agreement, the insurer shall honor the date of cancellation as set  forth in the request from the premium finance company without requiring the  return of the insurance contract or contracts.  The insurer may mail to the  named insured an acknowledgment of the notice of cancellation from the  premium finance company but the named insured shall not incur any  additional premium charge for any extension of coverage.  The insurer need  not maintain proof of mailing of this notice.(d) All statutory regulatory and contractual restrictions providing that  the insurance contract may not be cancelled unless the required notice is  mailed to a governmental agency, mortgagee, lienholder, or other third  party shall apply where cancellation is effected under a power of  attorney under a premium finance agreement.  The insurer shall have the  right for a premium charge for this extension of coverage.  (Source: P.A. 100-475, eff. 1-1-18.)