|
||||||||||||||||||||
|
||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
1 | AN ACT concerning insurance.
| |||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||
4 | Section 5. The Illinois Insurance Code is amended by | |||||||||||||||||||
5 | changing Section 4 as follows:
| |||||||||||||||||||
6 | (215 ILCS 5/4) (from Ch. 73, par. 616)
| |||||||||||||||||||
7 | Sec. 4. Classes of insurance. Insurance and insurance | |||||||||||||||||||
8 | business shall
be classified as follows:
| |||||||||||||||||||
9 | Class 1. Life, Accident and Health.
| |||||||||||||||||||
10 | (a) Life. Insurance on the lives of persons and every | |||||||||||||||||||
11 | insurance
appertaining thereto or connected therewith and | |||||||||||||||||||
12 | granting, purchasing or
disposing of annuities. Policies of | |||||||||||||||||||
13 | life or endowment insurance or
annuity contracts or contracts | |||||||||||||||||||
14 | supplemental thereto which contain
provisions for additional | |||||||||||||||||||
15 | benefits in case of death by accidental means
and provisions | |||||||||||||||||||
16 | operating to safeguard such policies or contracts against
| |||||||||||||||||||
17 | lapse, to give a special surrender value, or special benefit, | |||||||||||||||||||
18 | or an
annuity, in the event, that the insured or annuitant | |||||||||||||||||||
19 | shall become
totally and permanently disabled as defined by the | |||||||||||||||||||
20 | policy or contract,
or which contain benefits providing | |||||||||||||||||||
21 | acceleration of life or endowment or
annuity benefits in | |||||||||||||||||||
22 | advance of the time they would otherwise be
payable, as an | |||||||||||||||||||
23 | indemnity for long term care which is certified or
ordered by a |
| |||||||
| |||||||
1 | physician, including but not limited to, professional nursing
| ||||||
2 | care, medical care expenses, custodial nursing care, | ||||||
3 | non-nursing custodial
care provided in a nursing home or at a | ||||||
4 | residence of the insured, or
which contain benefits providing | ||||||
5 | acceleration of life or endowment or
annuity benefits in | ||||||
6 | advance of the time they would otherwise be payable, at
any | ||||||
7 | time during the insured's
lifetime, as an indemnity for a | ||||||
8 | terminal illness shall be deemed to be
policies of life or | ||||||
9 | endowment insurance or annuity contracts within the
intent of | ||||||
10 | this clause.
| ||||||
11 | Also to be deemed as policies of life or endowment | ||||||
12 | insurance or annuity
contracts within the intent of this clause | ||||||
13 | shall be those policies or
riders that provide for the payment | ||||||
14 | of up to 75% of the face amount
of
benefits in advance of the | ||||||
15 | time they would otherwise be payable upon a
diagnosis by a | ||||||
16 | physician licensed to practice medicine in all of its
branches | ||||||
17 | that the insured has incurred a covered
condition listed
in the | ||||||
18 | policy or rider.
| ||||||
19 | "Covered condition", as used in this clause, means:
heart | ||||||
20 | attack, stroke, coronary artery surgery,
life threatening | ||||||
21 | cancer, renal failure,
alzheimer's disease,
paraplegia, major | ||||||
22 | organ transplantation, total and permanent
disability, and any | ||||||
23 | other medical condition that the Department may approve for
any | ||||||
24 | particular filing.
| ||||||
25 | The Director may issue rules that specify prohibited policy | ||||||
26 | provisions,
not otherwise specifically prohibited by law, |
| |||||||
| |||||||
1 | which in the opinion of the
Director are unjust, unfair, or | ||||||
2 | unfairly discriminatory to the
policyholder,
any person | ||||||
3 | insured under the policy, or beneficiary.
| ||||||
4 | (b) Accident and health. Insurance against bodily injury,
| ||||||
5 | disablement or death by accident and against disablement | ||||||
6 | resulting from
sickness or old age and every insurance | ||||||
7 | appertaining thereto, including
stop-loss insurance. Stop-loss | ||||||
8 | insurance is insurance against the risk of
economic loss issued | ||||||
9 | to a single employer self-funded employee disability
benefit | ||||||
10 | plan or an employee welfare benefit plan as described in 29 | ||||||
11 | U.S.C. 100
et seq. The insurance laws of this State, including | ||||||
12 | this Act, do not apply to a religious organization or members | ||||||
13 | of the organization when the organization: | ||||||
14 | (i) is a nonprofit religious organization; | ||||||
15 | (ii) is limited to participants who are members of the | ||||||
16 | same religion; | ||||||
17 | (iii) facilitates payments between participants who | ||||||
18 | have financial, physical, or medical needs and | ||||||
19 | participants with the present ability to pay for the | ||||||
20 | benefit of those participants with present financial, | ||||||
21 | physical, or medical needs; nothing in this item (iii) | ||||||
22 | shall prevent the organization from establishing | ||||||
23 | qualifications of participation relating to the health of | ||||||
24 | the prospective participant nor shall it prevent the | ||||||
25 | participants from limiting the financial or medical needs | ||||||
26 | that may be eligible for payment among the participants; |
| |||||||
| |||||||
1 | (iv) facilitates the payments provided for in item | ||||||
2 | (iii) of this subsection (b) through payments made directly | ||||||
3 | from one participant to another; the requirements of this | ||||||
4 | item (iv) can be satisfied by means of payments between | ||||||
5 | members made in person, through the United States postal | ||||||
6 | service, expedited delivery service, or by wire or other | ||||||
7 | form of electronic transfer; | ||||||
8 | (v) specifies amounts that participants may give with | ||||||
9 | no assumption of risk or promise to pay either among the | ||||||
10 | participants or between the participants and the | ||||||
11 | organization; nothing in this item (v) shall prevent the | ||||||
12 | organization from canceling the membership of a | ||||||
13 | participant when that participant indicates their | ||||||
14 | unwillingness to participate by failing to make a payment | ||||||
15 | to another participant for a period in excess of 60 days; | ||||||
16 | and | ||||||
17 | (vi) provides the following verbatim written | ||||||
18 | disclaimer on all applications for membership or | ||||||
19 | participation: | ||||||
20 | "NOTICE: This organization is not insurance or an insurance | ||||||
21 | policy nor is it offered through an insurance company. | ||||||
22 | Whether anyone chooses to assist you with your medical | ||||||
23 | bills will be totally voluntary, as no other member will be | ||||||
24 | compelled by law to contribute toward your medical bills. | ||||||
25 | As such, this organization should never be considered to be | ||||||
26 | insurance. Whether you receive any payments for medical |
| |||||||
| |||||||
1 | expenses and whether or not this organization continues to | ||||||
2 | operate, you are always personally responsible for the | ||||||
3 | payment of your own medical bills. This organization is not | ||||||
4 | subject to the regulatory requirements or consumer | ||||||
5 | protections of your State's Insurance Code or Statutes.".
| ||||||
6 | (c) Legal Expense Insurance. Insurance which involves
the | ||||||
7 | assumption of a contractual obligation to reimburse the | ||||||
8 | beneficiary
against or pay on behalf of the beneficiary, all or | ||||||
9 | a portion of his fees,
costs, or expenses related to or arising | ||||||
10 | out of services performed by or
under the supervision of an | ||||||
11 | attorney licensed to practice in the jurisdiction
wherein the | ||||||
12 | services are performed, regardless of whether the payment is | ||||||
13 | made
by the beneficiaries individually or by a third person for | ||||||
14 | them, but does
not include the provision of or reimbursement | ||||||
15 | for legal services incidental
to other insurance coverages. The | ||||||
16 | insurance laws of this State, including
this Act do not apply | ||||||
17 | to:
| ||||||
18 | (i) Retainer contracts made by attorneys at law with | ||||||
19 | individual clients
with fees based on estimates of the | ||||||
20 | nature and amount of services to be
provided to the | ||||||
21 | specific client, and similar contracts made with a group
of | ||||||
22 | clients involved in the same or closely related legal | ||||||
23 | matters;
| ||||||
24 | (ii) Plans owned or operated by attorneys who are the | ||||||
25 | providers of legal
services to the plan;
| ||||||
26 | (iii) Plans providing legal service benefits to groups |
| |||||||
| |||||||
1 | where such plans
are owned or operated by authority of a | ||||||
2 | state, county, local or other bar
association;
| ||||||
3 | (iv) Any lawyer referral service authorized or | ||||||
4 | operated by a state,
county, local or other bar | ||||||
5 | association;
| ||||||
6 | (v) The furnishing of legal assistance by labor unions | ||||||
7 | and other employee
organizations to their members in | ||||||
8 | matters relating to employment or occupation;
| ||||||
9 | (vi) The furnishing of legal assistance to members or | ||||||
10 | dependents, by
churches, consumer organizations, | ||||||
11 | cooperatives, educational institutions,
credit unions, or | ||||||
12 | organizations of employees, where such organizations | ||||||
13 | contract
directly with lawyers or law firms for the | ||||||
14 | provision of legal services,
and the administration and | ||||||
15 | marketing of such legal services is wholly conducted
by the | ||||||
16 | organization or its subsidiary;
| ||||||
17 | (vii) Legal services provided by an employee welfare | ||||||
18 | benefit plan defined
by the Employee Retirement Income | ||||||
19 | Security Act of 1974;
| ||||||
20 | (viii) Any collectively bargained plan for legal | ||||||
21 | services between a labor
union and an employer negotiated | ||||||
22 | pursuant to Section 302 of the Labor
Management Relations | ||||||
23 | Act as now or hereafter amended, under which plan
legal | ||||||
24 | services will be provided for employees of the employer | ||||||
25 | whether or
not payments for such services are funded to or | ||||||
26 | through an insurance company.
|
| |||||||
| |||||||
1 | Class 2. Casualty, Fidelity and Surety.
| ||||||
2 | (a) Accident and health. Insurance against bodily injury,
| ||||||
3 | disablement or death by accident and against disablement | ||||||
4 | resulting from
sickness or old age and every insurance | ||||||
5 | appertaining thereto, including
stop-loss insurance. Stop-loss | ||||||
6 | insurance is insurance against the risk of
economic loss issued | ||||||
7 | to a single employer self-funded employee disability
benefit | ||||||
8 | plan or
an employee welfare benefit plan as described in 29 | ||||||
9 | U.S.C. 1001 et seq.
| ||||||
10 | (b) Vehicle. Insurance against any loss or liability | ||||||
11 | resulting from
or incident to the ownership, maintenance or use | ||||||
12 | of any vehicle (motor
or otherwise), draft animal or aircraft. | ||||||
13 | Any policy insuring against any
loss or liability on account of | ||||||
14 | the bodily injury or death of any person
may contain a | ||||||
15 | provision for payment of disability benefits to injured
persons | ||||||
16 | and death benefits to dependents, beneficiaries or personal
| ||||||
17 | representatives of persons who are killed, including the named | ||||||
18 | insured,
irrespective of legal liability of the insured, if the | ||||||
19 | injury or death
for which benefits are provided is caused by | ||||||
20 | accident and sustained
while in or upon or while entering into | ||||||
21 | or alighting from or through
being struck by a vehicle (motor | ||||||
22 | or otherwise), draft animal or
aircraft, and such provision | ||||||
23 | shall not be deemed to be accident
insurance.
| ||||||
24 | (c) Liability. Insurance against the liability of the | ||||||
25 | insured for
the death, injury or disability of an employee or | ||||||
26 | other person, and
insurance against the liability of the |
| |||||||
| |||||||
1 | insured for damage to or
destruction of another person's | ||||||
2 | property.
| ||||||
3 | (d) Workers' compensation. Insurance of the obligations | ||||||
4 | accepted by
or imposed upon employers under laws for workers' | ||||||
5 | compensation.
| ||||||
6 | (e) Burglary and forgery. Insurance against loss or damage | ||||||
7 | by
burglary, theft, larceny, robbery, forgery, fraud or | ||||||
8 | otherwise;
including all householders' personal property | ||||||
9 | floater risks.
| ||||||
10 | (f) Glass. Insurance against loss or damage to glass | ||||||
11 | including
lettering, ornamentation and fittings from any | ||||||
12 | cause.
| ||||||
13 | (g) Fidelity and surety. Become surety or guarantor for any | ||||||
14 | person,
copartnership or corporation in any position or place | ||||||
15 | of trust or as
custodian of money or property, public or | ||||||
16 | private; or, becoming a surety
or guarantor for the performance | ||||||
17 | of any person, copartnership or
corporation of any lawful | ||||||
18 | obligation, undertaking, agreement or contract
of any kind, | ||||||
19 | except contracts or policies of insurance; and underwriting
| ||||||
20 | blanket bonds. Such obligations shall be known and treated as | ||||||
21 | suretyship
obligations and such business shall be known as | ||||||
22 | surety business.
| ||||||
23 | (h) Miscellaneous. Insurance against loss or damage to | ||||||
24 | property and
any liability of the insured caused by accidents | ||||||
25 | to boilers, pipes,
pressure containers, machinery and | ||||||
26 | apparatus of any kind and any
apparatus connected thereto, or |
| |||||||
| |||||||
1 | used for creating, transmitting or
applying power, light, heat, | ||||||
2 | steam or refrigeration, making inspection
of and issuing | ||||||
3 | certificates of inspection upon elevators, boilers,
machinery | ||||||
4 | and apparatus of any kind and all mechanical apparatus and
| ||||||
5 | appliances appertaining thereto; insurance against loss or | ||||||
6 | damage by
water entering through leaks or openings in | ||||||
7 | buildings, or from the
breakage or leakage of a sprinkler, | ||||||
8 | pumps, water pipes, plumbing and all
tanks, apparatus, conduits | ||||||
9 | and containers designed to bring water into
buildings or for | ||||||
10 | its storage or utilization therein, or caused by the
falling of | ||||||
11 | a tank, tank platform or supports, or against loss or damage
| ||||||
12 | from any cause (other than causes specifically enumerated under | ||||||
13 | Class 3
of this Section) to such sprinkler, pumps, water pipes, | ||||||
14 | plumbing, tanks,
apparatus, conduits or containers; insurance | ||||||
15 | against loss or damage
which may result from the failure of | ||||||
16 | debtors to pay their obligations to
the insured; and insurance | ||||||
17 | of the payment of money for personal services
under contracts | ||||||
18 | of hiring.
| ||||||
19 | (i) Other casualty risks. Insurance against any other | ||||||
20 | casualty risk
not otherwise specified under Classes 1 or 3, | ||||||
21 | which may lawfully be the
subject of insurance and may properly | ||||||
22 | be classified under Class 2.
| ||||||
23 | (j) Contingent losses. Contingent, consequential and | ||||||
24 | indirect
coverages wherein the proximate cause of the loss is | ||||||
25 | attributable to any
one of the causes enumerated under Class 2. | ||||||
26 | Such coverages shall, for
the purpose of classification, be |
| |||||||
| |||||||
1 | included in the specific grouping of
the kinds of insurance | ||||||
2 | wherein such cause is specified.
| ||||||
3 | (k) Livestock and domestic animals. Insurance against | ||||||
4 | mortality,
accident and health of livestock and domestic | ||||||
5 | animals.
| ||||||
6 | (l) Legal expense insurance. Insurance against risk | ||||||
7 | resulting from the
cost of legal services as defined under | ||||||
8 | Class 1(c).
| ||||||
9 | Class 3. Fire and Marine, etc.
| ||||||
10 | (a) Fire. Insurance against loss or damage by fire, smoke | ||||||
11 | and
smudge, lightning or other electrical disturbances.
| ||||||
12 | (b) Elements. Insurance against loss or damage by | ||||||
13 | earthquake,
windstorms, cyclone, tornado, tempests, hail, | ||||||
14 | frost, snow, ice, sleet,
flood, rain, drought or other weather | ||||||
15 | or climatic conditions including
excess or deficiency of | ||||||
16 | moisture, rising of the waters of the ocean or
its tributaries.
| ||||||
17 | (c) War, riot and explosion. Insurance against loss or | ||||||
18 | damage by
bombardment, invasion, insurrection, riot, strikes, | ||||||
19 | civil war or
commotion, military or usurped power, or explosion | ||||||
20 | (other than explosion
of steam boilers and the breaking of fly | ||||||
21 | wheels on premises owned,
controlled, managed, or maintained by | ||||||
22 | the insured.)
| ||||||
23 | (d) Marine and transportation. Insurance against loss or | ||||||
24 | damage to
vessels, craft, aircraft, vehicles of every kind, | ||||||
25 | (excluding vehicles
operating under their own power or while in | ||||||
26 | storage not incidental to
transportation) as well as all goods, |
| |||||||
| |||||||
1 | freights, cargoes, merchandise,
effects, disbursements, | ||||||
2 | profits, moneys, bullion, precious stones,
securities, chooses | ||||||
3 | in action, evidences of debt, valuable papers,
bottomry and | ||||||
4 | respondentia interests and all other kinds of property and
| ||||||
5 | interests therein, in respect to, appertaining to or in | ||||||
6 | connection with
any or all risks or perils of navigation, | ||||||
7 | transit, or transportation,
including war risks, on or under | ||||||
8 | any seas or other waters, on land or in
the air, or while being | ||||||
9 | assembled, packed, crated, baled, compressed or
similarly | ||||||
10 | prepared for shipment or while awaiting the same or during any
| ||||||
11 | delays, storage, transshipment, or reshipment incident | ||||||
12 | thereto,
including marine builder's risks and all personal | ||||||
13 | property floater
risks; and for loss or damage to persons or | ||||||
14 | property in connection with
or appertaining to marine, inland | ||||||
15 | marine, transit or transportation
insurance, including | ||||||
16 | liability for loss of or damage to either arising
out of or in | ||||||
17 | connection with the construction, repair, operation,
| ||||||
18 | maintenance, or use of the subject matter of such insurance, | ||||||
19 | (but not
including life insurance or surety bonds); but, except | ||||||
20 | as herein
specified, shall not mean insurances against loss by | ||||||
21 | reason of bodily
injury to the person; and insurance against | ||||||
22 | loss or damage to precious
stones, jewels, jewelry, gold, | ||||||
23 | silver and other precious metals whether
used in business or | ||||||
24 | trade or otherwise and whether the same be in course
of | ||||||
25 | transportation or otherwise, which shall include jewelers' | ||||||
26 | block
insurance; and insurance against loss or damage to |
| |||||||
| |||||||
1 | bridges, tunnels and
other instrumentalities of transportation | ||||||
2 | and communication (excluding
buildings, their furniture and | ||||||
3 | furnishings, fixed contents and supplies
held in storage) | ||||||
4 | unless fire, tornado, sprinkler leakage, hail,
explosion, | ||||||
5 | earthquake, riot and civil commotion are the only hazards to
be | ||||||
6 | covered; and to piers, wharves, docks and slips, excluding the | ||||||
7 | risks
of fire, tornado, sprinkler leakage, hail, explosion, | ||||||
8 | earthquake, riot
and civil commotion; and to other aids to | ||||||
9 | navigation and transportation,
including dry docks and marine | ||||||
10 | railways, against all risk.
| ||||||
11 | (e) Vehicle. Insurance against loss or liability resulting | ||||||
12 | from or
incident to the ownership, maintenance or use of any | ||||||
13 | vehicle (motor or
otherwise), draft animal or aircraft, | ||||||
14 | excluding the liability of the
insured for the death, injury or | ||||||
15 | disability of another person.
| ||||||
16 | (f) Property damage, sprinkler leakage and crop. Insurance | ||||||
17 | against
the liability of the insured for loss or damage to | ||||||
18 | another person's
property or property interests from any cause | ||||||
19 | enumerated in this class;
insurance against loss or damage by | ||||||
20 | water entering through leaks or
openings in buildings, or from | ||||||
21 | the breakage or leakage of a sprinkler,
pumps, water pipes, | ||||||
22 | plumbing and all tanks, apparatus, conduits and
containers | ||||||
23 | designed to bring water into buildings or for its storage or
| ||||||
24 | utilization therein, or caused by the falling of a tank, tank | ||||||
25 | platform
or supports or against loss or damage from any cause | ||||||
26 | to such sprinklers,
pumps, water pipes, plumbing, tanks, |
| |||||||
| |||||||
1 | apparatus, conduits or containers;
insurance against loss or | ||||||
2 | damage from insects, diseases or other causes to
trees, crops | ||||||
3 | or other products of the soil.
| ||||||
4 | (g) Other fire and marine risks. Insurance against any | ||||||
5 | other
property risk not otherwise specified under Classes 1 or | ||||||
6 | 2, which may
lawfully be the subject of insurance and may | ||||||
7 | properly be classified
under Class 3.
| ||||||
8 | (h) Contingent losses. Contingent, consequential and | ||||||
9 | indirect
coverages wherein the proximate cause of the loss is | ||||||
10 | attributable to any
of the causes enumerated under Class 3. | ||||||
11 | Such coverages shall, for the
purpose of classification, be | ||||||
12 | included in the specific grouping of the
kinds of insurance | ||||||
13 | wherein such cause is specified.
| ||||||
14 | (i) Legal expense insurance. Insurance against risk | ||||||
15 | resulting from the
cost of legal services as defined under | ||||||
16 | Class 1(c).
| ||||||
17 | (Source: P.A. 90-741, eff. 8-13-98; 90-810, eff. 1-6-99.)
| ||||||
18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.
|