Bill Text: IL SB2877 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Insurance Code in the Article concerning insurance holding company systems. Makes changes to the definitions. Provides that a domestic company, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries, and that the subsidiaries may conduct any kind of business or businesses and their authority to do so shall not be limited by reason of the fact that they are subsidiaries of a domestic company. Makes changes to the provisions concerning a domestic company's permitted investments. Includes certain filing requirements in the provision concerning the acquisition of control of or merger with a domestic company. Makes changes to provisions concerning the statement that is required to be filed with the Director of Insurance. Deletes certain provisions concerning deposits made with the Director, orders entered by the Director, and reports of potential adverse economic impact made to the General Assembly by the Director. Makes changes to the provisions concerning certain violations, judicial jurisdiction, acquisitions, registration statements, reporting materials, termination of registration, disclaimers, prior notification, officers and directors, examination, confidential treatment, voting , sanctions, and judicial review. . Sets forth provisions concerning summary filing, enterprise risk filing, violations, and supervisory colleges. Repeals a provision concerning the delivery of certain filings. Contains a severability provision. Effective on January 1, 2013.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB2877 Detail]

Download: Illinois-2011-SB2877-Amended.html

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Sen. William R. Haine

Filed: 3/1/2012

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AMENDMENT TO SENATE BILL 2877
AMENDMENT NO. ______. Amend Senate Bill 2877 on page 1,
line 8, by replacing "and 131.27" with "131.27, and 356z.12";
and
on page 65, immediately below line 21, by inserting the
following:
"(215 ILCS 5/356z.12)
Sec. 356z.12. Dependent coverage.
(a) A group or individual policy of accident and health
insurance or managed care plan that provides coverage for
dependents and that is amended, delivered, issued, or renewed
after the effective date of this amendatory Act of the 95th
General Assembly shall not terminate coverage or deny the
election of coverage for an unmarried dependent by reason of
the dependent's age before the dependent's 26th birthday.
(b) A policy or plan subject to this Section shall, upon

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amendment, delivery, issuance, or renewal, establish an
initial enrollment period of not less than 90 days during which
an insured may make a written election for coverage of an
unmarried person as a dependent under this Section. After the
initial enrollment period, enrollment by a dependent pursuant
to this Section shall be consistent with the enrollment terms
of the plan or policy.
(c) A policy or plan subject to this Section shall allow
for dependent coverage during the annual open enrollment date
or the annual renewal date if the dependent, as of the date on
which the insured elects dependent coverage under this
subsection, has:
(1) a period of continuous creditable coverage of 90
days or more; and
(2) not been without creditable coverage for more than
63 days.
An insured may elect coverage for a dependent who does not meet
the continuous creditable coverage requirements of this
subsection (c) and that dependent shall not be denied coverage
due to age.
For purposes of this subsection (c), "creditable coverage"
shall have the meaning provided under subsection (C)(1) of
Section 20 of the Illinois Health Insurance Portability and
Accountability Act.
(d) Military personnel. A group or individual policy of
accident and health insurance or managed care plan that

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provides coverage for dependents and that is amended,
delivered, issued, or renewed after the effective date of this
amendatory Act of the 95th General Assembly shall not terminate
coverage or deny the election of coverage for an unmarried
dependent by reason of the dependent's age before the
dependent's 30th birthday if the dependent (i) is an Illinois
resident, (ii) served as a member of the active or reserve
components of any of the branches of the Armed Forces of the
United States, and (iii) has received a release or discharge
other than a dishonorable discharge. To be eligible for
coverage under this subsection (d), the eligible dependent
shall submit to the insurer a form approved by the Illinois
Department of Veterans' Affairs stating the date on which the
dependent was released from service.
(e) Calculation of the cost of coverage provided to an
unmarried dependent under this Section shall be identical.
(f) Nothing in this Section shall prohibit an employer from
requiring an employee to pay all or part of the cost of
coverage provided under this Section.
(g) No exclusions or limitations may be applied to coverage
elected pursuant to this Section that do not apply to all
dependents covered under the policy.
(h) A policy or plan subject to this Section shall not
condition eligibility for dependent coverage provided pursuant
to this Section on enrollment in any educational institution.
(i) Notice regarding coverage for a dependent as provided

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pursuant to this Section shall be provided to an insured by the
insurer:
(1) upon application or enrollment;
(2) in the certificate of coverage or equivalent
document prepared for an insured and delivered on or about
the date on which the coverage commences; and
(3) (blank) in a notice delivered to an insured on a
semi-annual basis.
(Source: P.A. 95-958, eff. 6-1-09.)".