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Insurance Related Public Acts enacted in 2001

Insurance Related Public Acts enacted in 2001

PA 91-0939
(SB 851)

Amends Pension Code Article 3 (suburban & downstate police). Permits eligible employees to elect to participate in a self-managed plan as long as prescribed guidelines are followed. Increases the pension fund formula from 2% to 2.5% of an employee's salary for the 21st through the 30th year of service. Provides that, beginning on January 1, 2001, a surviving spouse receives an annuity of 100% of the monthly salary on the last day of service as a result of sickness, accident, or injury incurred in or resulting from the performance of an act of duty. Adds stroke to the list of diseases that qualify a policy officer for an occupational disease disability annuity, and states that cancer must arise as a result of service in order for a police officer to be eligible for the occupational disease disability annuity. Effective 2-1-01.

PA 92-0002
(SB 962)

Amends the Comprehensive Health Insurance Plan Act. Waives the 6-month pre-existing condition limitation under the "traditional" CHIP, when an individual previously covered under an individual accident and health insurance policy loses coverage as a result of the insurer's insolvency. Specifically, grants a waiver of the preexisting condition exclusions for an eligible person who has satisfied similar exclusions under prior coverage under an individual policy of health insurance that was terminated due to the insolvency of the insurer and who has applied for coverage with CHIP within 63 days following the termination. Effective 5-1-01.

PA 92-0005
(SB 333)

Establishes a new section under Article XXXI of the Illinois Insurance Code to define "expirations" to be mutually and exclusively owned by the insured and the registered firm, with a few exceptions. Effective 6-1-01.

PA 92-0048
(SB 866)

Amends Insurance Code and HMO Act to incorporate requirements of the federal Women's Health and Cancer Rights Act of 1998. Establishes coverage requirements regarding reconstruction, symmetry, and prostheses for policies and plans which provide medical and surgical benefits for mastectomies. This IDOI initiative is effective 7-3-01.

PA 92-0065
(SB 463)

Clarifies the treatment and priority of claims that are subject to separate accounts in a receivership proceeding. Provides that in receivership, the Director as Receiver, is obligated to consider an insurer's separate account assets as being subject only to those liabilities incurred as a result of the insurer's separate account business. Effective 7-12-01.

PA 92-0074
(SB 865)

Amends the Protected Cell Companies article in the Insurance Code to adopt revisions that were made subsequent to the enactment of the NAIC model act. Effective 7-12-01.

PA 92-0075
(SB 870)

Amends Insurance Code to provide the Department with statutory standards to release security deposits when insurance companies wish to voluntarily dissolve and cease to engage in the business of insurance in Illinois. The Department may release deposits upon
(1) order of the court or upon certification by the insurance company that it has no outstanding creditors or policyholders/enrollees or policy obligations prior to the Department releasing the security deposit;
(2) receipt of lawful resolution from the board of directors surrendering articles of incorporation for administrative dissolution by the Director; and
(3) receipt of addresses of the final officers and directors of the company and a plan of dissolution approved by the Director. Effective 7-12-01.

PA 92-0077
(SB 941)

Amends the Insurance Code to increase from 1% to 2% (beginning 1-1-02) the amount a member property and casualty company may be assessed on the company's net direct written premium for payment of the obligations of the Illinois Property & Casualty Insurance Guaranty Fund. The 2% maximum applies regardless of the date of any insolvency that gives rise to the need for the assessment. Provides that the Illinois Property & Casualty Insurance Guaranty Fund is not liable for interest on judgments entered against an insured or insolvent company. The Fund shall be liable only for interest at the statutory rate on money judgments entered against the Fund until the judgment is satisfied. Effective 7-12-01.

PA 92-0099
(HB 153)

Amends Religious and Charitable Risk Pooling and Trust Act to authorize organizations exempt from taxation under paragraph (2) of subsection (c) of Section 501 of the Internal Revenue Code to be a beneficiary under a risk pooling trust. Effective 7-20-01.

PA 92-0106
(HB 1901)

Creates the Uniform Health Care Service Benefits Information Card Act. Requires health benefit plans which provide coverage for health care services including prescription drugs or devices to issue uniform health care benefit information cards (or other technology). Mandates that the health benefit plan includes the following information on the card:
  • the processor control number (if required),
  • group number,
  • card issuer identifier,
  • cardholder ID number, and
  • cardholder name.
The requirements of this Act would be applicable to both individual and group health benefit plans written by insurers, health maintenance organizations, voluntary health services plans and multiple employer welfare arrangements, as well as administrators of these plans. Effective 1-1-02.

PA 92-0124
(SB 864)

Creates new Insurance Code article to create Special Purpose Reinsurance Vehicles (SPRVs) in order to facilitate the securitization of risk in Illinois under the regulatory oversight of the Department of Insurance. Effective 7-20-01.

PA 92-0125
(SB 943)

Amends Insurance Code section which provides premium reductions for autos equipped with anti-theft mechanisms or devices. Deletes provision that the rules promulgated shall include procedures for affidavit certification to insurers that anti-theft mechanisms and devices have been installed in insured vehicles. Effective 7-20-01.

PA 92-0126
(SB 1019)

Amends the Employee Benefit Contribution Act to require an employer who has agreed to make payment to an employee health insurance plan to provide written notification directly to its employees of any failure to make payments if such failure may result in the loss of insurance coverage. Previously, such notice was required to be posted in a conspicuous location at the place of employment. Removes the Department of Insurance as the agency required to monitor the places of employment for compliance. Effective 1-1-02.

PA 92-0130
(SB 1254)

Amends Insurance Code, Health Maintenance Organization Act, and Voluntary Services Act to require individual and group policies with maternity coverage to provide coverage for prenatal HIV testing ordered by an attending physician, physician assistant, or an advance practice registered nurse. Effective 7-20-01.

PA 92-0135
(HB 1040)

Amends Health Maintenance Organization Act to authorize an HMO to offer point-of-service (POS) benefits. Imposes reinsurance and capital requirements, and authorizes HMOs to establish annual maximum benefit allowances for point-of-service products. Effective 1-1-02.

PA 92-0139
(HB 2554)

Amends Insurance Code to increase from 6% to 9% annual interest on the total amount payable or face amount that accrues on proceeds payable because of the death of the insured, unless payment is made within 15 days from the date of receipt by the company of due proof of loss. Also increases from 8% to 9% the interest payable from the 30th day after receipt of proof of loss to the date of late payment for loss-of-time (disability) coverage under accident and health insurance. Effective 7-24-01.

PA 92-0140
(HB 2556)

Amends Insurance Code and HMO Act to strengthen the corporate governance of insurance companies and health maintenance organizations, including requiring a certain number of outside board of directors. Stipulates rules for the handling of cash and assets between companies. Effective 7-24-01.

PA 92-0148
(SB 867)

Amends Insurance Code Long Term Care Article to define "qualified long-term care insurance contracts" or "federally tax qualified long term care insurance contracts" to mean an individual or group insurance contract that meets the requirements of Section 7702(b) of the Internal Revenue Code of 1986. Effective 7-24-01.

PA 92-0153
(HB 3004)

Extends from 63 to 90 the number of days in which an individual may apply for HIPAA CHIP. Provides that a federally eligible individual is not deemed ineligible simply because the individual is eligible for coverage under part A or part B of Medicare if the eligibility is not due to age. Legislation initiated by CHIP. Effective 7-25-01.

PA 92-0182
(SB 319)

Amends Insurance Code to require reimbursement by insurance companies for services performed by licensed clinical professional counselors. (Current law provides that each insured covered for mental, emotional, or nervous disorders or conditions shall be free to select a physician licensed to practice medicine in all its branches, a licensed clinical psychologist, or a licensed clinical social worker of their choice for treatment of these disorders; and the insurer is required to pay the coverage for these services if the condition is covered under the policy.) Effective 7-27-01.

PA 92-0185
(SB 1341)

Amends Insurance Code to require insurers to provide coverage on a group basis for serious mental illness on the same basis as other illnesses and diseases. The coverage must provide the same durational limits, amount limits, deductible and co-insurance amounts as is provided for other illnesses and diseases. The definition of serious mental illness specifically limits the conditions covered under the Act. Effective 1-1-02. The public act is preceded by a message from the Governor.

PA 92-0233
(SB 879)

Expands reporting of P&C fraud by including additional lines of insurance to fraud relating to claims and by allowing the reporting of application and premium fraud. Also creates the Illinois Insurance Claims Fraud Prevention Act, which protects whistleblowers. Provides monetary incentives for the reporting and prosecution of fraud. This IDOI initiative is effective 1-1-02.

PA 92-0296
(HB 3179)

Amends Consumer Fraud and Deceptive Business Practices Act. Prohibits marketing and sale of discount programs which do not meet the standards of the Act. Requires that cash-discount cards must expressly provide in prominent type that the discounts being offered are not insurance. The discounts offered must be specifically authorized by contracts with the health care providers listed on the cards. Effective 1-1-02.

PA 92-0307
(SB 461)

Amends Early Intervention Services Systems Act, Specialized Care for Children Act, Children's Health Insurance Program Act, and Illinois Public Aid Code.  Provides that an application for early intervention services acts as an application for various services offered under these Acts.  Defines "qualified person" for the purpose of rendering early intervention services and requires the Department of Human Services, as the lead agency, to develop rules for credentialing providers.  Requires families to utilize their insurance coverage for early intervention services for dependents before seeking services from the State supported early intervention system. Effective 8-9-01.

PA 92-0331
(SB 1505)

Amends the Department of Insurance Law of the Civil Administrative Code to establish an ombudsman program for the uninsured within the Department. The purpose is to provide assistance and education for uninsured individuals regarding health insurance benefit options and rights under state and federal law. Allows the Department to recruit and train volunteers to staff the program. Effective 1-1-02.

PA 92-0386
(HB 2994)

This IDOI initiative replaces the current producer licensing law with a new licensing law modeled after the NAIC Model Uniform Producer Law, while maintaining portions of Illinois' current producer law not addressed by the NAIC Model Law. The need for a multistate uniform and reciprocal system in producer licensing originated out of the federal Gramm-Leach-Bliley Act (GLBA) which seeks to enhance competition in the financial services industry by providing a framework for the affiliation of banks, securities firms, insurance companies, and other financial service providers, and for other purposes, including providing state flexibility in multistate insurance licensing reforms. Effective 1-1-02.

PA 92-0399
(SB 869)

This IDOI initiative amends Insurance Code to prohibit discrimination on the basis of race, color, religion or national origin in the conduct of life and health insurance business. Makes such discrimination a violation of the Unfair Methods of Competition and Unfair and Deceptive Acts and Practices Article of the Insurance Code. Effective 8-16-01.

PA 92-0430
(SB 42)

Amends Genetic Information Privacy Act to prohibit insurers and employers from using information derived from genetic tests regardless of the source of the information. Effective 8-17-01.

PA 92-0440
(SB 935)

Amends (1) Insurance Code, (2) State Employees Group Insurance Act, (3) Preferred Provider and Third Party Administrator sections of the Insurance Code, (4) Comprehensive Health Insurance Plan Act, (5) HMO Act, (6) Limited Health Service Organization Act, and (7)Voluntary Health Services Plan Act to require companies to notify their insureds of changes to a drug formulary. Permits companies to post the changes on their websites in order to comply with this notification requirement. Effective 8-17-01.

PA 92-0458
(HB 1041)

Extends from 30 to 45 days the time which an insurance company has to respond to a request by the Secretary of State for information regarding whether a driver is covered by liability insurance. Amends Vehicle Code to remove the requirement that a licensed vehicle dealer that offers, provides, or sells in-house and/or self-insured extended warranties or service contracts, other than those of the vehicle manufacturer, must retain adequate reserves or insurance for the protection of the purchasing consumer. Effective 8-22-01.

PA 92-0479
(HB 2380)

Amends Public Construction Bond Act, Counties Code, and Municipal Code to provide that a builder or developer may not be required by a county or municipality to post an irrevocable letter of credit, surety bond, or letter of commitment by a bank to guarantee a project's completion if the developer or builder already has such a bond on file with a county or municipality. Require a county or municipality to accept surety instruments from any surety insurance company authorized by the Department of Insurance to sell sureties. Preempts home rule units, but exempts municipalities and counties with a population of 1,000,000 or more from the requirement that a municipality must approve and deem sufficient a surety or insurance company authorized by the Department of Insurance. Effective 1-1-02.

PA 92-0480
(HB 2419)

Amends Insurance Code to prohibit the use of credit scores as the sole determinant in the issuance or non-renewal of an insurance policy. Prohibits use of credit scores in an unlawful and discriminatory manner based on income, race, gender, color, religion or nation origin. Requires insurance companies to provide disclosure in accordance with the federal Fair Credit Reporting Act. Effective 10-1-01.