95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5670


 
Introduced , by Rep. JoAnn D. Osmond
 
SYNOPSIS AS INTRODUCED:
 		














215 ILCS 5/370a
  from Ch. 73, par. 982a







    Amends the Illinois Insurance Code.  Provides that subject to
the terms of a policy of accident or health insurance  or any contract relating thereto that may expressly prohibit either pre-loss or post-loss assignments or both, an assignment by
an insured or by any other owner of rights under the policy is valid for the
purpose of vesting in the assignee, in accordance with any provisions
included therein as to the time at which it is effective, all rights and
privileges so assigned. Effective immediately.
















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A BILL FOR









 











HB5670

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    AN ACT concerning regulation.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Insurance Code is amended  by 
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changing Section 370a as follows:
 



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    (215 ILCS 5/370a)  (from Ch. 73, par. 982a)



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    Sec. 370a. Assignability of Accident and Health Insurance. 

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    No provision of the Illinois Insurance Code, or any other 
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law, prohibits
an insured under any policy of accident and 
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health insurance or any other
person who may be the owner of 
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any rights under such policy from making an
assignment of all 
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or any part of his rights and privileges under the policy

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including but not limited to the right to designate a 
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beneficiary and to
have an individual policy issued in 
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accordance with its terms. Subject to
the terms of the policy 
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or any contract relating thereto that may expressly prohibit 
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either pre-loss or post-loss assignments or both, an assignment 
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by
an insured or by any other owner of rights under the policy, 
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made before or
after the effective date of this amendatory Act 
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of 1969 is valid for the
purpose of vesting in the assignee, in 
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accordance with any provisions
included therein as to the time 
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at which it is effective, all rights and
privileges so 
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assigned. However, such assignment is without prejudice to
the 
 


 






HB5670
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company on account of any payment it makes or individual policy 
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it
issues before receipt of notice of the assignment. This 
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amendatory Act of
1969 acknowledges, declares and codifies the 
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existing right of assignment
of interests under accident and 
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health insurance policies.
If an enrollee or insured of an 
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insurer, health maintenance organization,
managed care plan, 
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health care plan, preferred provider organization, or third

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party administrator assigns a claim to a health care 
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professional or health
care facility, then payment
shall be 
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made directly to the health care professional or health care 
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facility
including any interest
required under Section 368a, of 
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this Code for failure to pay
claims
within 30
days after 
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receipt by the insurer of due proof of loss.  Nothing in this

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Section shall be construed to prevent any parties from 
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reconciling duplicate
payments.

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(Source: P.A. 91-605, eff. 12-14-99; 91-788, eff. 6-9-00.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.