What it does
IL 02 84 replaces the Cancellation condition of the Common Policy Conditions for the Capital Assets Program, Commercial Property and Farm coverage parts in Illinois.
Key provisions (01 18 edition)
- First 60 days: the insurer may cancel with 10 days' notice for nonpayment or 30 days' notice for any other reason.
- After 60 days: cancellation only for nonpayment, material misrepresentation in obtaining the policy, violation of policy terms, a measurable increase in the risk originally accepted, certified loss of reinsurance, or a Director determination that continuing the policy could violate Illinois law. Notice is 60 days, or 10 days for nonpayment.
- Notice goes to the insured with the reason. Copies go to the broker or agent of record and the mortgagee or lienholder.
- Real property other than one-to-four family residential: the insurer may cancel on 10 days' notice, sent by certified and regular mail, if:
- Permanent repairs have not started within 60 days of a fire loss adjustment.
- The building has been unoccupied 60 or more consecutive days, other than seasonal unoccupancy or a secured building under repair.
- There is an order to vacate, a demolition order, or the building has been declared unsafe.
- Heat, water, sewer or public lighting has been disconnected for 30 consecutive days or more.
- Separate rules protect residential property of four families or less.
Quoting and selling notes
- Illinois liability coverage parts have their own state amendatory forms. Defense cost reimbursement, for example, is addressed by IL 01 62.
- For vacant Illinois buildings, the distressed-property cancellation rights can apply quickly. Combine with vacancy planning (CP 04 50).
- ISO's CL-2026-OCAN1 revision introduces an 01 27 edition. Philadelphia Indemnity filed to adopt it in Illinois for policies effective January 1, 2027 (SERFF PHLX-135105675). Until then, the 01 18 provisions summarized above apply.
