215 ILCS 5/1305
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XLIII - Mortgage Insurance Consolidation

 (from Ch. 73, par. 1065.1005)Sec. 1305.     Loan transfer consolidations.     In a consolidation conducted  as a result of a loan transfer, the offer of new coverage may be based on  the same premium the insured was paying for his old coverage only if, in  addition to all other requirements provided by law, the following conditions  are met:(1) Both the old and the new coverage must be provided under a group policy.(2) An offer of new coverage must be made as soon as reasonably possible  after the loan transfer.  If an offer of new coverage is not made within 30  days after the loan transfer, or at least 30 days prior to the proposed  effective date of the new coverage, the insurer 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 the date of the notification.(3) The new coverage offered to the prospective insured must be the same  as the old coverage, including all supplemental benefits provided under the  old plan.  If the coverage offered is not the same, then all the  requirements of Section 1304 shall apply.(4) In addition to the requirements of Section 1307, the certificate  shall contain the following notice, printed in bold type on page one of  the certificate:    IMPORTANT NOTICEThis certificate is issued to you in connection with a mortgage insurance  consolidation.  It is the intention of the Company to provide you group  coverage which is equal to or better than the group coverage you had  before.  To the extent the benefits provided or the provisions of your  prior certificate of insurance are more liberal than those under this  certificate, the provisions of your prior certificate will control.  Therefore, you should keep your old certificate along with this certificate  for comparison purposes.(5) The information contained in the notice prescribed by paragraph (4)  shall also be disclosed in writing (separate from the certificate of  insurance) to each prospective insured at the time the offer of new  coverage is made.(6) Only the group coverage written in connection with the loans which are  the subject of the loan transfer may be consolidated pursuant to this Section.(7) Payment of the required premium shall constitute acceptance of the  new coverage if:(A) such acceptance mechanism is clearly explained to the debtor; and(B) All other disclosure requirements of this Article are met.(8) Regulations including, but not limited to, those promulgated by the  Department of Insurance implementing Sections 143, 149, 151, 236, 237, 421,  424 and 507.1 of this Code concerning misrepresentations to any  policyholder for the purpose of inducing or tending to induce such  policyholder to lapse, forfeit or surrender his insurance, unfair or  deceptive practices, complaints, solicitation and replacement of life  insurance, compensation and rebating shall be complied  with.(9) If an insurer charges debtor insureds the same premium for the new  coverage that they were paying for the old coverage, and, as a result,  debtor insureds of a financial institution are charged different premium  rates for the same coverage, such rate differences shall not constitute  unfair discrimination under Sections 236 and 364 of this Code provided all  the other applicable requirements of this Code are met.    (Source: P.A. 86-378.)