INSURANCE

HB 1305 - Insurance Fraud
Includes in the offenses of fraud on a governmental entity and insurance fraud causing a false claim to be made. Includes in the offense of aggravated fraud causing three or more false claims to be made. P.A. 91-232; effective 1-1-2000.

HB 1348 - HMO and Group Insurance
Amends the Risk-Based Capital Article of the Illinois Insurance Code to provide that the Article applies to HMOs. Limits the use of genetic information in the absence of a diagnosis related to that genetic information. Group accident and health insurance is the kind that covers two rather than 10 employees or members. Replacement group health insurance policies must cover all employees and dependents covered under the coverage being replaced. P.A. 91-549; effective 8-14-99.

HB 1587 - Workers' Compensation -Subcontractors
Amends the Workers' Compensation Act (820 ILCS 305/4) and the Occupational Diseases Act (820 ILCS 310/4/) to include general contractors and their subcontractors among employers who must insure their payment of compensation. P.A. 91-375; effective 1-1-2000.

HB 1622 - Insurance - Cancer Treatments
Amends the Civil Administration Code (20 ILCS 1405/56-3), Illinois Insurance Code (5/356y), Health Maintenance Organization Act (215 ILCS 125/5-3), and Voluntary Health Services Plans Act (215 ILCS 165/10) to require that insurance companies, HMOs and VHSOs offer to the policyholder or applicant the option of coverage for investigational cancer treatments, including routine care in connection with those trials. Such coverages may have an annual benefit limit of $10,000. The Act also requires the Department of Insurance to conduct a study of the costs and benefits of the establishment of coverage for investigational cancer treatments.
The coverage requirement will be repealed on Jan. 1, 2003, and the Department will be required to submit the results of its study to the Governor and General Assembly on or before March 1, 2003. P.A. 91-406; effective 1-1-2000.

HB 1697 - Insurance - Premium Nonpayment
Amends Sections 5/143-.3(a) and 5/143.3(e) of the Insurance Code to void automobile insurance policies, binders, or applications paid for by a check or credit card that is dishonored for payment. Applies to both commercial and personal lines insurance. P.A. 91-552; effective 8-14-99.

SB 338 - CPPRT Fund Reduction
The bill amends the Insurance Code to (1) Set-up procedures for the refund of overpayments of taxes by insurance companies; (2) Revises the procedure for paying refunds of premium tax overpayments; and (3) Reduces the tax rate for foreign insurers. P.A. 91-643; effective 8-20-99.

SB 359 - Insurance Fraud Task Force
Amends the Civil Administrative Code to establish an Insurance Fraud Task Force composed of The Director of Insurance (or designee), the Director of State Police (or designee), nine representatives appointed by the Governor, and seven members representing insurers, and an HMO appointed by the Director of Insurance.
The Act requires that the Task Force investigate the issue of insurance fraud and methods to combat organized insurance fraud. It will also examine ways to unite the resources of the insurance industry and the criminal justice system to recognize and prosecute organized insurance fraud. The Task Force is to report its findings to the Governor and the General Assembly no later than July 1, 2000. P.A. 91-522; effective 8-13-99.

SB 363 - Car Rental Insurance and Insurance Producers
Requires a car rental company that sells insurance on rental cars to have a limited insurance producer's license for that service. Changes the licensing and renewal requirements for regular insurance producers. P.A. 91-234; 1-1-2000.

SB 667 - Workers' Compensation - Corporate Withdrawal
Amends the Workers Compensation Act to provide that the corporate officers of a domestic or foreign corporation (rather than a small business) who are employed by the corporation may elect to withdraw as individuals from the operation of the Act. Provides that the Act does not apply to a member of a limited liability company (LLC) who elects not to provide and pay for his or her accidental injuries. P.A. 91-591; effective 8-14-99.

SB 721 - Dental Patient Protection
Creates the Dental Care Patient Protection Act and grants regulatory authority to the Department of Insurance for the regulation of managed care dental plans. Currently, the Dental Service Plan Act, Limited Health Service Organization Act, and Voluntary Health Service Plans Act establish standards for the licensure and regulation of Dental Service Plans. Authority is also granted under the Health Maintenance Organization Act and Insurance Code.
The bill contains stipulations regarding the establishment of an advisory committee to provide the Department advice and counsel regarding managed care issues; the provision of information upon request about a plan's operation; credentialing of dentists, utilization review procedure and provider input into plan operations; continuity of care; a prohibition on gag clauses; the establishment of grievance procedures; coverage for emergency dental care without prior authorization; the requirement on the plan to offer a point-of-service option when an employer has more than 25 employees and provides at least 25% of the cost for the dental benefit; a limitation on the extension of liability based on the Act; and a complaint review, investigation and record-keeping process to be coordinated between the Departments of Insurance and Public Health. Will appear at 215 ILCS 109/. P.A. 91-355; effective 1-1-2000.

SB 778 - Lloyds Insurance
All foreign and alien insurance carriers transacting insurance business as a "Lloyds" must notify the Department of Insurance and the Secretary of State but are not required to obtain a certificate of authority from the Secretary of State. A LLC or LLP may operate Lloyds-type insurance if the Department of Insurance approves. P.A. 91-593; effective 8-14-99.

SB 1024 - Insurance - Renewal Notice
Amends Sections 5/143.13 and 5/143.17 of the Illinois Insurance Code to specify that a company may renew a policy of insurance containing minor policy changes. Any changes in deductibles or coverage must be mailed to the insured at least 60 days before the renewal or anniversary date. P.A. 91-597; effective 1-1-2000.

SB 1115 - Protected Company Cell Law
Amends the Insurance Code to create the Protected Company Cell Law. Authorizes domestic insurance companies to securitize insurance risk through the establishment of "protected cells" or "protected cell" is defined as an identified pool of assets and liabilities of a domestic company segregated and insulated from the remainder of the company's assets and liabilities. P.A. 91-278; effective 1-1-2000.