Illinois SB3815 Bans Coverage Denial Past Due Premiums

Illinois SB3815 proposes a new insurance regulation that would prohibit carriers from denying or canceling coverage solely due to a policyholder's failure to pay past due premiums. The bill represents a consumer protection measure aimed at maintaining coverage continuity. If enacted, insurers would be required to continue providing coverage regardless of premium payment history, though they may still pursue premium collection through separate means.

Affected parties—including insurance carriers writing property, casualty, health, or other lines of coverage in Illinois—should monitor SB3815's progress through the legislative process. Insurers should begin reviewing current policy language regarding coverage termination triggers and premium payment requirements to assess potential operational impacts if the bill becomes law.