PLIllinoismedium
An Illinois auto policy was issued 45 days ago. The underwriter discovers the risk is heavier than expected. Under 215 ILCS 5/143.19, may the insurer cancel?
ANo — cancellation is permitted only for non-payment after issuance
Yes — during the first 60 days an insurer may cancel for any lawful reason with proper notice
COnly if the IDOI Director approves the cancellation
DOnly if the insured agrees in writing to the cancellation
Why this is the answer
Illinois auto rules give insurers a 60-day underwriting window at the start of every new policy. During those first 60 days the insurer may cancel for any lawful reason — material underwriting reasons such as risk reassessment qualify — provided the insurer mails proper notice (10 days for non-payment, 30 days for other reasons). After 60 days, mid-term cancellation is restricted to enumerated statutory grounds.
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