215 ILCS 5/525.4
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXXIII - Urban Property Insurance

 (from Ch. 73, par. 1965.72-4)Sec. 525.4.     Application for Coverage of Risks by the Facility.     (1) In the  event that the Industry Placement Facility proposes to issue policies of  insurance or endorsements thereto pursuant to subsection (1) of Section  525.1, the Facility shall require a written application for such  policies or endorsements.  All applications shall be incorporated into the  policy or endorsement for which application was made.(2) Applications for coverage of risks on property which is held in a  land trust, except applications for policies described in subsection (b)  of Section 143.13, shall disclose all beneficial interests in the property  in accordance with "An Act to require disclosure, under certification of  perjury, of all beneficial interests in real property held in a land trust,  in certain cases", approved September 21, 1973, as amended.  Changes, which  result in an aggregate of 25%, in beneficial interest in the property subsequent  to the verification made in the application shall be reported by the  applicant or policy holder to the Facility no later than 10 days after the  change in beneficial interest occurs.  This shall not apply to transfer of beneficial interest to members of the  immediate family including spouse, children and grandchildren and their  spouses, parents, sisters and brothers.  Changes in beneficial interest  which result in an aggregate of less than 25% shall be reported at the time  of renewal of the policy. Disclosure of the beneficial interests in such  property is deemed material  to the application for new coverage or the continuation of existing coverage  and failure to disclose all beneficial interests, including any changes  therein, renders the contract of insurance voidable at the option of the  Facility.  Upon being notified of any change in beneficial interest, the  Facility shall reevaluate its risk of loss as if the risk were a new application  for coverage.  When a policy subject to this Section is issued or applied  for, the Facility shall give written notice as to the requirements of this Section  to the named insured or applicant and all beneficiaries disclosed in the application.(3) Applications for policies or endorsements covering real property,  except applications for policies described in subsection (b) of Section  143.13, shall include the following information:(a) name and address of the applicant;(b) name and address of all parties with any financial interest in the  property to be insured and the nature and extent of such interest, including mortgages;(c) all purchases and sales of the property to be insured during the last  five years, including all parties involved in such transactions, with their  names and addresses;(d) the value the insured claims for the insurable interest and the method  utilized to derive that value;(e) all income from the property to be insured during the current year  and the last calendar and tax years, if known;(f) occupancy and use during the preceding two years, including percentage  of occupancy if a nonowner occupied dwelling, if known;(g) prior loss history of the applicant and the property to be insured;(h) all tax liens and other legal encumbrances affecting the property  to be insured; and(i) all violations of building construction and maintenance ordinances  concerning the property to be insured which have been cited in a legal notice  from an ordinance enforcement authority and which violations have not been  certified as remedied by the enforcement authority, and for which an enforcement  action is pending.(4) Within 60 days of receipt of an application submitted pursuant to  subsection (3), the Facility shall conduct an on-site inspection of the  property to be insured so as to determine the nature of the risk presented  and the availability of coverage by the Facility.  Any policy or endorsement  issued on an application submitted pursuant to subsection (3) may be cancelled  by the Facility within 60 days of the issuance thereof.    (Source: P.A. 81-1426.)