Bill Text: IL HB2616 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Clarifies certain provisions defining "blanket accident and health insurance" coverage and expands the definition of the term to include certain kinds of coverage in other types of businesses and organizations.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2015-04-24 - Rule 19(a) / Re-referred to Rules Committee [HB2616 Detail]

Download: Illinois-2015-HB2616-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB2616 Introduced , by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED:
215 ILCS 5/367a from Ch. 73, par. 979a
Amends the Illinois Insurance Code. Clarifies certain provisions defining "blanket accident and health insurance" coverage and expands the definition of the term to include certain kinds of coverage in other types of businesses and organizations.
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A BILL FOR
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AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 367a as follows:
(215 ILCS 5/367a) (from Ch. 73, par. 979a)
Sec. 367a. Blanket accident and health insurance.
(1) Blanket accident and health insurance is that form of
accident and health insurance covering special groups of
persons as enumerated in one of the following paragraphs (a) to
(n) (g), inclusive:
(a) Under a policy or contract issued to any carrier for
hire or to any owner, operator, or lessee of a means of
transportation, which shall be deemed the policyholder,
covering a group defined as all persons who may become
passengers on such carrier or means of transportation.
(b) Under a policy or contract issued to an employer, which
who shall be deemed the policyholder, covering all workers
employees or any group of workers, dependents, or guests
employees defined by reference to exceptional hazards incident
to an activity or activities or operations of the policy holder
such employment.
(c) Under a policy or contract issued to a college, school,

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or other institution of learning or to the head or principal
thereof, who or which shall be deemed the policyholder,
covering students or teachers, or employees, and may include
dependents.
(d) Under a policy or contract issued in the name of any
volunteer fire department, first aid, civil defense, or other
such volunteer group, or an agency having jurisdiction over
these groups, which shall be deemed the policyholder, covering
all or any group of the members of such department, or group,
or any group of participants defined by reference to activities
or operations sponsored or supervised by the policyholder.
(e) Under a policy or contract issued to a creditor, who
shall be deemed the policyholder, to insure debtors of the
creditors; Provided, however, that in the case of a loan which
is subject to the Small Loans Act, no insurance premium or
other cost shall be directly or indirectly charged or assessed
against, or collected or received from the borrower.
(f) Under a policy or contract issued to a sports team or
to a camp, or to a sponsor of either, which team or camp
sponsor shall be deemed the policyholder, covering members, or
campers, employees, officials, supervisors, or volunteers.
(g) Under a policy or contract issued to any religious,
charitable, recreational, educational, or civic organization,
or branch thereof, which organization shall be deemed the
policyholder, covering any group of persons while engaged in
any activity, activities, or operations sponsored or

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supervised by or on the premises of the policyholder.
(h) Under a policy or contract issued to a newspaper or
other publisher, which shall be deemed the policyholder,
covering its carriers.
(i) Under a policy or contract issued to a restaurant,
hotel, motel, innkeeper, or other group with a high degree of
customer liability, which shall be deemed the policyholder,
covering patrons or guests.
(j) Under a policy or contract issued to a health
maintenance organization, health care provider, or other
arranger of health services, which shall be deemed the
policyholder, covering subscribers, patients, donors, or
surrogates, provided that this coverage is not made a condition
of receiving care.
(k) Under a policy or contract issued to a bank, savings
and loan association, credit union, or other similar financial
institution or vendor, to a parent holding company, or to the
trustee, trustees, or agents designated by one or more banks,
savings and loan associations, credit unions, or other similar
financial institutions or vendors, which shall be deemed the
policyholder, covering account holders, depositors, members,
debtors, or guarantors.
(l) Under a policy or contract issued to an incorporated or
unincorporated association of persons having a common interest
or calling, which association shall be deemed the policyholder,
formed for purposes other than obtaining insurance, covering

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members of the association.
(m) Under a policy or contract issued to a travel agency or
other organization that provides travel-related services,
which agency or organization shall be deemed the policyholder,
to cover all persons for which travel-related services are
provided.
(n) (g) Under a policy or contract issued to any other
individual risk or class of risk that substantially similar
group which, in the discretion of the Director, may be subject
to the issuance of a blanket accident and health policy or
contract.
(2) Any insurance company authorized to write accident and
health insurance in this state shall have the power to issue
blanket accident and health insurance. No such blanket policy
may be issued or delivered in this State unless a copy of the
form thereof shall have been filed in accordance with Section
355, and it contains in substance such of those provisions
contained in Sections 357.1 through 357.30 as may be applicable
to blanket accident and health insurance and the following
provisions:
(a) A provision that the policy and the application shall
constitute the entire contract between the parties, and that
all statements made by the policyholder shall, in absence of
fraud, be deemed representations and not warranties, and that
no such statements shall be used in defense to a claim under
the policy, unless it is contained in a written application.

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(b) A provision that to the group or class thereof
originally insured shall be added from time to time all new
persons or individuals eligible for coverage.
(3) An individual application shall not be required from a
person covered under a blanket accident or health policy or
contract, nor shall it be necessary for the insurer to furnish
each person a certificate.
(4) All benefits under any blanket accident and health
policy shall be payable to the person insured, or to his
designated beneficiary or beneficiaries, or to his or her
estate, except that if the person insured be a minor or person
under legal disability, such benefits may be made payable to
his or her parent, guardian, or other person actually
supporting him or her. Provided further, however, that the
policy may provide that all or any portion of any indemnities
provided by any such policy on account of hospital, nursing,
medical or surgical services may, at the insurer's option, be
paid directly to the hospital or person rendering such
services; but the policy may not require that the service be
rendered by a particular hospital or person. Payment so made
shall discharge the insurer's obligation with respect to the
amount of insurance so paid.
(5) Nothing contained in this section shall be deemed to
affect the legal liability of policyholders for the death of or
injury to, any such member of such group.
(Source: P.A. 83-1362.)