Substitute House Bill No. 6981, also known as Public Act No. 25-87, introduces significant reforms to the delivery of insurance policies and endorsements, allowing insurers to post these documents on their websites instead of mailing them, provided they do not contain personally identifiable information. Effective October 1, 2025, insurers must obtain consent from the insured for electronic delivery and ensure that documents remain accessible throughout the policy duration. The bill also mandates that insurers retain records of expired policies for five years and provide instructions for obtaining paper copies upon request. If an insured opts out of electronic delivery, insurers must revert to mailing paper copies. Additionally, the bill updates cancellation and nonrenewal procedures for property and casualty insurance policies, requiring specific notification timelines and methods, including the use of registered or certified mail.

The legislation further amends existing laws regarding the cancellation of commercial risk insurance policies, stipulating that cancellations can only occur under specific conditions after a policy has been in effect for more than sixty days. It introduces new requirements for cancellation notices and clarifies definitions related to insurance practices. The bill also addresses the rehabilitation and liquidation of insurers, modifying the automatic stay provision and eliminating the bond requirement for injunctions related to these proceedings. Overall, the bill aims to modernize communication methods between insurers and policyholders while enhancing consumer protections and ensuring transparency in the insurance industry.

Statutes affected:
Raised Bill:
INS Joint Favorable Substitute:
File No. 314:
File No. 925:
Public Act No. 25-87: