Life Insurance Premium Default Notices in Illinois: Proper Notification is Essential for the Denial of Benefits
- Created: Friday, 28 April 2017 08:13
by Natalie T. Lorenz, Attorney at Law
The Illinois Insurance Code protects owners of life insurance policies when there has been a default in premium payments, but the insurance agency has not given proper notice of default to those owners. The Illinois Insurance Code provides, “No life company shall declare any policy forfeited or lapsed within six months after default in payment . . . unless a written or printed notice . . . shall have been duly addressed and mailed . . . to the person whose life is insured . . . .” Although this statute does not mention that notice is also required to be given to owners of life insurance policies, if they differ from the insureds, the Illinois courts have expanded the statute’s reach so that owners must be given notice as well.