SB 3244 — INS CD-LIFE HEALTH GUARANTY

Summary

Amends the of the Illinois Insurance Code. Merges the Health Maintenance Organization Guaranty Association Article of the Health Maintenance Organization Act into the Illinois Life and Health Insurance Guaranty Association Law. Makes conforming changes. Provides that the rights, powers, privileges, assets, property, duties, debts, obligations, and liabilities of each association prior to merger shall remain with the members of the respective association. Provides the rights, powers, privileges, assets, property, debts, obligations, and liabilities of each association after the merger. Repeals the Health Maintenance Organization Guaranty Association Article of the Health Maintenance Organization Act. Makes other changes. Effective immediately.

Bill Text

• Introduced View text Current html

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The bill merges the Health Maintenance Organization Guaranty Association Article into the Illinois Life and Health Insurance Guaranty Association Law and makes conforming amendments.

• 215 ILCS 125/Art. VI

  (Section repealed)

  This section is repealed, removing the Health Maintenance Organization Guaranty Association Article from law.

• 215 ILCS 5/531.02

  to protect, subject to certain limitations, the persons specified in paragraph (1) of Section 531.03 against failure in the performance of contractual obligations, under life, or health insurance policies, and annuity policies, plans, or contracts and health or medical care service contracts specified in paragraph (2) of Section 531.03, due to the impairment or insolvency of the member insurer issuing such policies, plans, or contracts. To provide this protection, (1) an association of member insurers is created to enable the guaranty of payment of benefits and of continuation of coverages, (2) members of the Association are subject to assessment to provide funds to carry out the purpose of this Article, and (3) the Association is authorized to assist the Director, in the prescribed manner, in the detection and prevention of member insurer impairments or insolvencies. → to provide this protection, an association of member insurers is created to enable the guaranty of payment of benefits and of continuation of coverages, members of the Association are subject to assessment to provide funds to carry out the purpose of this Article, and the Association is authorized to assist the Director, in the prescribed manner, in the detection and prevention of member insurer impairments or insolvencies.

  This change clarifies the purpose of the article regarding the protection provided to individuals against insurer insolvencies.

• 215 ILCS 5/531.03

  This Article shall provide coverage for the policies and contracts specified in subsection paragraph (2) of this Section: → This Article shall provide coverage for the policies and contracts specified in subsection (2) of this Section:

  This change adjusts the wording for clarity regarding the policies covered.

• 215 ILCS 5/531.03

  (a) to persons who, regardless of where they reside (except for non-resident certificate holders under group policies or contracts), are the beneficiaries, assignees or payees, including health care providers rendering services covered under a health insurance policy or certificate, of the persons covered under paragraph (b) of this subsection subparagraph (1)(b), and → (a) to persons who are the beneficiaries, assignees or payees, including health care providers rendering services covered under a health insurance policy or certificate, of the persons covered under paragraph (b) of this subsection, regardless of where they reside (except for non-resident certificate holders under group policies or contracts), and

  This change clarifies the order of the clauses related to coverage provisions.

• 215 ILCS 5/531.14

  benefits, and obligations, as appropriate, of the respective associations shall be governed by the provisions of this Article. → benefits and liabilities, as appropriate, of the respective associations shall be governed by the provisions of this Article, and liabilities, as appropriate, shall remain with the members of the respective association after the merger.

  This change makes it clear that the obligations of the associations persist after the merger.

• 215 ILCS 5/531.20

  Sec. 531.20. Rights and obligations after merger. The rights, powers, privileges, assets, property, duties, debts, obligations, and liabilities of each association prior to merger shall remain with the members of the respective association after the merger.

  This new section establishes clear guidelines on how rights and obligations will be handled after the merger.

Action History

1. January 09, 2019

   Session Sine Die

2. April 27, 2018

   Rule 3-9(a) / Re-referred to Assignments

3. April 19, 2018

   Placed on Calendar Order of 3rd Reading April 23, 2018

4. April 19, 2018

   Second Reading

5. April 12, 2018

   Placed on Calendar Order of 2nd Reading April 17, 2018

6. April 12, 2018

   Do Pass as Amended Insurance; 014-000-000

7. April 11, 2018

   Senate Committee Amendment No. 1 Adopted

8. March 14, 2018

   Senate Committee Amendment No. 1 Assignments Refers to Insurance

9. March 13, 2018

   Added as Co-Sponsor Sen. Emil Jones, III

10. March 09, 2018

    Senate Committee Amendment No. 1 Referred to Assignments

11. March 09, 2018

    Senate Committee Amendment No. 1 Filed with Secretary by Sen. John G. Mulroe

12. February 27, 2018

    Assigned to Insurance

13. February 23, 2018

    Added as Chief Co-Sponsor Sen. Linda Holmes

14. February 22, 2018

    Added as Chief Co-Sponsor Sen. Michael Connelly

15. February 16, 2018

    Referred to Assignments

16. February 16, 2018

    First Reading

17. February 16, 2018

    Filed with Secretary by Sen. John G. Mulroe

Sponsors

• John G. Mulroe · Cosponsor

Votes

Subjects