Bill Text: IL HB1552 | 2013-2014 | 98th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Insurance Code. Deletes language that provides that the Department of Insurance shall mail a quarterly invoice to companies transacting certain kinds of business in this State for the appropriate filing fees required under the provision concerning fees and charges. Deletes language that provides that certain notice regarding coverage for a dependent shall be provided to an insured by the insurer in a notice delivered to an insured on a semi-annual basis. Provides that the Director of Insurance shall make an annual report to the General Assembly no later than July 1 (rather than April 15) every year which shall include the Director's findings and recommendations regarding certain duties. Replaces references to Secretary of Financial and Professional Regulation with Director of Insurance and makes conforming changes. Deletes language specifying the types of insurance and makes changes regarding the additional information to be included in the report that the Director requires insurers to submit showing those insurers' direct writings in this State and companywide.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2013-08-09 - Public Act . . . . . . . . . 98-0226 [HB1552 Detail]
Download: Illinois-2013-HB1552-Enrolled.html
Bill Title: Amends the Illinois Insurance Code. Deletes language that provides that the Department of Insurance shall mail a quarterly invoice to companies transacting certain kinds of business in this State for the appropriate filing fees required under the provision concerning fees and charges. Deletes language that provides that certain notice regarding coverage for a dependent shall be provided to an insured by the insurer in a notice delivered to an insured on a semi-annual basis. Provides that the Director of Insurance shall make an annual report to the General Assembly no later than July 1 (rather than April 15) every year which shall include the Director's findings and recommendations regarding certain duties. Replaces references to Secretary of Financial and Professional Regulation with Director of Insurance and makes conforming changes. Deletes language specifying the types of insurance and makes changes regarding the additional information to be included in the report that the Director requires insurers to submit showing those insurers' direct writings in this State and companywide.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2013-08-09 - Public Act . . . . . . . . . 98-0226 [HB1552 Detail]
Download: Illinois-2013-HB1552-Enrolled.html
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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||
5 | changing Sections 143, 356z.12, and 1202 as follows:
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6 | (215 ILCS 5/143) (from Ch. 73, par. 755)
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7 | Sec. 143. Policy forms.
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8 | (1) Life, accident and health. No company
transacting the | ||||||
9 | kind or kinds of business enumerated in Classes 1 (a), 1
(b) | ||||||
10 | and 2 (a) of Section 4 shall issue or deliver in this State a | ||||||
11 | policy
or certificate of insurance or evidence of coverage, | ||||||
12 | attach an
endorsement or rider thereto,
incorporate by | ||||||
13 | reference bylaws or other matter therein or use an
application | ||||||
14 | blank in this State until the form and content of such
policy, | ||||||
15 | certificate, evidence of coverage, endorsement, rider, bylaw | ||||||
16 | or
other matter
incorporated by reference or application blank | ||||||
17 | has been filed electronically
with the Director, either through | ||||||
18 | the System for Electronic Rate and Form Filing (SERFF) or as | ||||||
19 | otherwise prescribed by the Director, and
approved by the | ||||||
20 | Director. The Department shall mail a quarterly invoice to the | ||||||
21 | company for the appropriate filing fees required under Section | ||||||
22 | 408. Any such endorsement or rider
that unilaterally reduces | ||||||
23 | benefits and is to be attached to a
policy subsequent to the |
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1 | date the policy is
issued must be filed with, reviewed, and | ||||||
2 | formally approved by the
Director prior to the date it is | ||||||
3 | attached to a policy issued or
delivered in this State. It | ||||||
4 | shall be the duty of the Director to
withhold approval of any | ||||||
5 | such policy, certificate, endorsement, rider,
bylaw or other | ||||||
6 | matter incorporated by reference or application blank
filed | ||||||
7 | with him if it contains provisions which encourage
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8 | misrepresentation or are unjust, unfair, inequitable, | ||||||
9 | ambiguous,
misleading, inconsistent, deceptive, contrary to | ||||||
10 | law or to the public
policy of this State, or contains | ||||||
11 | exceptions and conditions that
unreasonably or deceptively | ||||||
12 | affect the risk purported to be assumed in
the general coverage | ||||||
13 | of the policy. In all cases the Director shall
approve or | ||||||
14 | disapprove any such form within 60 days after submission
unless | ||||||
15 | the Director extends by not more than an additional 30 days the
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16 | period within which he shall approve or disapprove any such | ||||||
17 | form by
giving written notice to the insurer of such extension | ||||||
18 | before expiration
of the initial 60 days period. The Director | ||||||
19 | shall withdraw his approval
of a policy, certificate, evidence | ||||||
20 | of coverage, endorsement, rider,
bylaw, or other matter | ||||||
21 | incorporated
by reference or application blank if he | ||||||
22 | subsequently determines that such
policy, certificate, | ||||||
23 | evidence of coverage, endorsement, rider, bylaw,
other matter, | ||||||
24 | or application
blank is misrepresentative, unjust, unfair, | ||||||
25 | inequitable, ambiguous, misleading,
inconsistent, deceptive, | ||||||
26 | contrary to law or public policy of this State,
or contains |
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1 | exceptions or conditions which unreasonably or deceptively | ||||||
2 | affect
the risk purported to be assumed in the general coverage | ||||||
3 | of the policy or
evidence of coverage.
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4 | If a previously approved policy, certificate, evidence of
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5 | coverage, endorsement, rider, bylaw
or other matter | ||||||
6 | incorporated by reference or application blank is withdrawn
for | ||||||
7 | use, the Director shall serve upon the company an order of | ||||||
8 | withdrawal
of use, either personally or by mail, and if by | ||||||
9 | mail, such service shall
be completed if such notice be | ||||||
10 | deposited in the post office, postage prepaid,
addressed to the | ||||||
11 | company's last known address specified in the records
of the | ||||||
12 | Department of Insurance. The order of withdrawal of use shall | ||||||
13 | take
effect 30 days from the date of mailing but shall be | ||||||
14 | stayed if within the
30-day period a written request for | ||||||
15 | hearing is filed with the Director.
Such hearing shall be held | ||||||
16 | at such time and place as designated in the order
given by the | ||||||
17 | Director. The hearing may be held either in the City of | ||||||
18 | Springfield,
the City of Chicago or in the county where the | ||||||
19 | principal business address
of the company is located.
The | ||||||
20 | action of the Director in
disapproving or withdrawing such form | ||||||
21 | shall be subject to judicial review under
the
Administrative | ||||||
22 | Review Law.
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23 | This subsection shall not apply to riders or endorsements | ||||||
24 | issued or
made at the request of the individual policyholder | ||||||
25 | relating to the
manner of distribution of benefits or to the | ||||||
26 | reservation of rights and
benefits under his life insurance |
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1 | policy.
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2 | (2) Casualty, fire, and marine. The Director shall require | ||||||
3 | the
filing of all policy forms issued or delivered by any | ||||||
4 | company transacting
the kind or
kinds of business enumerated in | ||||||
5 | Classes 2 (except Class 2 (a)) and 3 of
Section 4 in an | ||||||
6 | electronic format either through the System for Electronic Rate | ||||||
7 | and Form Filing (SERFF) or as otherwise prescribed and approved | ||||||
8 | by the Director. In addition, he may require the filing of any
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9 | generally used riders, endorsements, certificates, application | ||||||
10 | blanks, and
other matter
incorporated by reference in any such | ||||||
11 | policy or contract of insurance. The Department shall mail a | ||||||
12 | quarterly invoice to the company for the appropriate filing | ||||||
13 | fees required under Section 408.
Companies that are members of | ||||||
14 | an organization, bureau, or association may
have the same filed | ||||||
15 | for them by the organization, bureau, or association. If
the | ||||||
16 | Director shall find from an examination of any such policy | ||||||
17 | form,
rider, endorsement, certificate, application blank, or | ||||||
18 | other matter
incorporated by
reference in any such policy so | ||||||
19 | filed that it (i) violates any provision of
this Code, (ii) | ||||||
20 | contains inconsistent, ambiguous, or misleading clauses, or
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21 | (iii) contains exceptions and conditions that will | ||||||
22 | unreasonably or deceptively
affect the risks that are purported | ||||||
23 | to be assumed by the policy, he
shall order the company or | ||||||
24 | companies issuing these forms to discontinue
their use. Nothing | ||||||
25 | in this subsection shall require a company
transacting the kind | ||||||
26 | or kinds of business enumerated in Classes 2
(except Class 2 |
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1 | (a)) and 3 of Section 4 to obtain approval of these forms
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2 | before they are issued nor in any way affect the legality of | ||||||
3 | any
policy that has been issued and found to be in conflict | ||||||
4 | with this
subsection, but such policies shall be subject to the | ||||||
5 | provisions of
Section 442.
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6 | (3) This Section shall not apply (i) to surety contracts or | ||||||
7 | fidelity
bonds, (ii) to policies issued to an industrial | ||||||
8 | insured as defined in Section
121-2.08 except for workers' | ||||||
9 | compensation policies, nor (iii) to riders
or
endorsements | ||||||
10 | prepared to meet special, unusual,
peculiar, or extraordinary | ||||||
11 | conditions applying to an individual risk.
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12 | (Source: P.A. 97-486, eff. 1-1-12.)
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13 | (215 ILCS 5/356z.12) | ||||||
14 | Sec. 356z.12. Dependent coverage. | ||||||
15 | (a) A group or individual policy of accident and health | ||||||
16 | insurance or managed care plan that provides coverage for | ||||||
17 | dependents and that is amended, delivered, issued, or renewed | ||||||
18 | after the effective date of this amendatory Act of the 95th | ||||||
19 | General Assembly shall not terminate coverage or deny the | ||||||
20 | election of coverage for an unmarried dependent by reason of | ||||||
21 | the dependent's age before the dependent's 26th birthday. | ||||||
22 | (b) A policy or plan subject to this Section shall, upon | ||||||
23 | amendment, delivery, issuance, or renewal, establish an | ||||||
24 | initial enrollment period of not less than 90 days during which | ||||||
25 | an insured may make a written election for coverage of an |
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1 | unmarried person as a dependent under this Section. After the | ||||||
2 | initial enrollment period, enrollment by a dependent pursuant | ||||||
3 | to this Section shall be consistent with the enrollment terms | ||||||
4 | of the plan or policy. | ||||||
5 | (c) A policy or plan subject to this Section shall allow | ||||||
6 | for dependent coverage during the annual open enrollment date | ||||||
7 | or the annual renewal date if the dependent, as of the date on | ||||||
8 | which the insured elects dependent coverage under this | ||||||
9 | subsection, has: | ||||||
10 | (1) a period of continuous creditable coverage of 90 | ||||||
11 | days or more; and | ||||||
12 | (2) not been without creditable coverage for more than | ||||||
13 | 63 days. | ||||||
14 | An insured may elect coverage for a dependent who does not meet | ||||||
15 | the continuous creditable coverage requirements of this | ||||||
16 | subsection (c) and that dependent shall not be denied coverage | ||||||
17 | due to age. | ||||||
18 | For purposes of this subsection (c), "creditable coverage" | ||||||
19 | shall have the meaning provided under subsection (C)(1) of | ||||||
20 | Section 20 of the Illinois Health Insurance Portability and | ||||||
21 | Accountability Act. | ||||||
22 | (d) Military personnel. A group or individual policy of | ||||||
23 | accident and health insurance or managed care plan that | ||||||
24 | provides coverage for dependents and that is amended, | ||||||
25 | delivered, issued, or renewed after the effective date of this | ||||||
26 | amendatory Act of the 95th General Assembly shall not terminate |
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1 | coverage or deny the election of coverage for an unmarried | ||||||
2 | dependent by reason of the dependent's age before the | ||||||
3 | dependent's 30th birthday if the dependent (i) is an Illinois | ||||||
4 | resident, (ii) served as a member of the active or reserve | ||||||
5 | components of any of the branches of the Armed Forces of the | ||||||
6 | United States, and (iii) has received a release or discharge | ||||||
7 | other than a dishonorable discharge. To be eligible for | ||||||
8 | coverage under this subsection (d), the eligible dependent | ||||||
9 | shall submit to the insurer a form approved by the Illinois | ||||||
10 | Department of Veterans' Affairs stating the date on which the | ||||||
11 | dependent was released from service. | ||||||
12 | (e) Calculation of the cost of coverage provided to an | ||||||
13 | unmarried dependent under this Section shall be identical. | ||||||
14 | (f) Nothing in this Section shall prohibit an employer from | ||||||
15 | requiring an employee to pay all or part of the cost of | ||||||
16 | coverage provided under this Section. | ||||||
17 | (g) No exclusions or limitations may be applied to coverage | ||||||
18 | elected pursuant to this Section that do not apply to all | ||||||
19 | dependents covered under the policy. | ||||||
20 | (h) A policy or plan subject to this Section shall not | ||||||
21 | condition eligibility for dependent coverage provided pursuant | ||||||
22 | to this Section on enrollment in any educational institution. | ||||||
23 | (i) Notice regarding coverage for a dependent as provided | ||||||
24 | pursuant to this Section shall be provided to an insured by the | ||||||
25 | insurer: | ||||||
26 | (1) upon application or enrollment; |
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1 | (2) in the certificate of coverage or equivalent | ||||||
2 | document prepared for an insured and delivered on or about | ||||||
3 | the date on which the coverage commences; and | ||||||
4 | (3) (blank) in a notice delivered to an insured on a | ||||||
5 | semi-annual basis .
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6 | (Source: P.A. 95-958, eff. 6-1-09 .)
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7 | (215 ILCS 5/1202) (from Ch. 73, par. 1065.902)
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8 | Sec. 1202. Duties. The Director shall:
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9 | (a) determine the relationship of insurance premiums and | ||||||
10 | related income
as compared to insurance costs and expenses and | ||||||
11 | provide such information to
the General Assembly and the | ||||||
12 | general public;
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13 | (b) study the insurance system in the State of Illinois, | ||||||
14 | and recommend
to the General Assembly what it deems to be the | ||||||
15 | most appropriate and
comprehensive cost containment system for | ||||||
16 | the State;
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17 | (c) respond to the requests by agencies of government and | ||||||
18 | the General
Assembly for special studies and analysis of data | ||||||
19 | collected pursuant to
this Article. Such reports shall be made | ||||||
20 | available in a form prescribed by
the Director. The Director | ||||||
21 | may also determine a fee to be charged to the
requesting agency | ||||||
22 | to cover the direct and indirect costs for producing such
a | ||||||
23 | report, and shall permit affected insurers the right to review | ||||||
24 | the
accuracy of the report before it is released. The fees | ||||||
25 | shall
be deposited
into the Statistical Services Revolving Fund |
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1 | and credited to the account
of the Department of Insurance;
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2 | (d) make an interim report to the General Assembly no later | ||||||
3 | than August
15, 1987, and a annual report to the General | ||||||
4 | Assembly no later than July 1 April 15
every year thereafter | ||||||
5 | which shall include the Director's findings and
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6 | recommendations regarding its duties as provided under | ||||||
7 | subsections (a),
(b), and (c) of this Section.
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8 | (Source: P.A. 91-357, eff. 7-29-99.)
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