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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||||||||||||||||||||
5 | changing Section 367f as follows:
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6 | (215 ILCS 5/367f) (from Ch. 73, par. 979f)
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7 | Sec. 367f. Firemen's continuance privilege. As used in this | ||||||||||||||||||||||||
8 | Section:
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9 | 1. The terms "municipality", "deferred pensioner" and | ||||||||||||||||||||||||
10 | "creditable service"
shall have the meaning ascribed to such | ||||||||||||||||||||||||
11 | terms by Sections 4-103, 4-105a and
4-108, respectively, of the | ||||||||||||||||||||||||
12 | Illinois Pension Code, as now or hereafter amended.
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13 | 2. The terms "fireman" and "firemen" shall have the meaning | ||||||||||||||||||||||||
14 | ascribed
to the term "firefighter" by Section 4-106 of the | ||||||||||||||||||||||||
15 | Illinois
Pension Code, and include those persons under the | ||||||||||||||||||||||||
16 | coverage of Article 4 of
that Code, as heretofore or hereafter | ||||||||||||||||||||||||
17 | amended.
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18 | 3. The "retirement or disability period" of a fireman means | ||||||||||||||||||||||||
19 | the period:
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20 | a. which begins on the day the fireman is removed from | ||||||||||||||||||||||||
21 | a municipality's
fire department payroll because of the | ||||||||||||||||||||||||
22 | occurrence of any of the following
events, to wit: (i) the | ||||||||||||||||||||||||
23 | fireman retires as a deferred pensioner under Section
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1 | 4-105a of the Illinois Pension Code, (ii) the fireman | ||||||
2 | retires from active
service as a fireman with an attained | ||||||
3 | age and accumulated creditable service
which together | ||||||
4 | qualify the fireman for immediate receipt of retirement | ||||||
5 | pension
benefits under Section 4-109 of the Illinois | ||||||
6 | Pension Code, or (iii) the
fireman's disability is | ||||||
7 | established under Section 4-112 of the Illinois
Pension | ||||||
8 | Code; and
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9 | b. which ends on the first to occur of any of the | ||||||
10 | following events,
to wit: (i) the fireman's reinstatement | ||||||
11 | or reentry into active service
on the municipality's fire | ||||||
12 | department as provided for under Article 4 of
the Illinois | ||||||
13 | Pension Code, (ii) the fireman's exercise of any refund | ||||||
14 | option
available under Section 4-116 of the Illinois | ||||||
15 | Pension Code, (iii) the fireman's
loss pursuant to Section | ||||||
16 | 4-138 of the Illinois Pension Code of any benefits
provided | ||||||
17 | for in Article 4 of that Code, or (iv) the fireman's death | ||||||
18 | or --
if at the time of the fireman's death the fireman is | ||||||
19 | survived by a spouse
who, in that capacity, is entitled to | ||||||
20 | receive a surviving spouse's monthly
pension pursuant to | ||||||
21 | Article 4 of the Illinois Pension Code -- then the death
or | ||||||
22 | remarriage of that spouse ; and .
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23 | c. not withstanding subsections 3a or 3b of this | ||||||
24 | Section, the disabled or retired fireman, if not enrolled | ||||||
25 | in the municipal group insurance plan at the time of | ||||||
26 | disability or retirement, may elect to enroll in the |
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1 | municipal group insurance plan during an open enrollment | ||||||
2 | period. | ||||||
3 | No policy of group accident and health insurance under | ||||||
4 | which firemen
employed by a municipality are insured for their | ||||||
5 | individual benefit shall
be issued or delivered in this State | ||||||
6 | to any municipality unless such group
policy provides for the | ||||||
7 | election of continued group insurance coverage for
the | ||||||
8 | retirement or disability period of each fireman or an election | ||||||
9 | exercised under subsection 3c of this Section during any open | ||||||
10 | enrollment period who is insured under the
provisions of the | ||||||
11 | group policy on the day immediately preceding the day
on which | ||||||
12 | the retirement or disability period of such fireman begins . So
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13 | long as any required premiums for continued group insurance | ||||||
14 | coverage are
paid in accordance with the provisions of the | ||||||
15 | group policy, an election
made pursuant to this Section shall | ||||||
16 | provide continued group insurance
coverage for a fireman | ||||||
17 | throughout the retirement or disability period of
the fireman | ||||||
18 | and, unless the fireman otherwise elects and subject to any
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19 | other provisions of the group policy which relate either to the | ||||||
20 | provision
or to the termination of dependents' coverage and | ||||||
21 | which are not
inconsistent with this Section, for any | ||||||
22 | dependents of the fireman who are
insured under the group | ||||||
23 | policy on the day immediately preceding the day on
which the | ||||||
24 | retirement or disability period of the fireman begins ; | ||||||
25 | provided,
however, that when such continued group insurance | ||||||
26 | coverage is in effect
with respect to a fireman on the date
of |
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1 | the fireman's death but the retirement or disability period of | ||||||
2 | the fireman
does not end with such fireman's death, then the | ||||||
3 | deceased fireman's surviving
spouse upon whose death or | ||||||
4 | remarriage such retirement or disability period
will end shall | ||||||
5 | be entitled, without further election and upon payment of
any | ||||||
6 | required premiums in accordance with the provisions of the | ||||||
7 | group policy,
to maintain such continued group
insurance | ||||||
8 | coverage in effect until the end of such retirement or | ||||||
9 | disability
period. Continued group insurance coverage shall be | ||||||
10 | provided in accordance
with this Section at the same premium | ||||||
11 | rate from time to time charged for
equivalent coverage provided | ||||||
12 | under the group policy with respect to covered
firemen whose | ||||||
13 | retirement or disability period has not begun, and no | ||||||
14 | distinction
or discrimination in the amount or rate of premiums | ||||||
15 | or in any waiver of premium
or other benefit provision shall be | ||||||
16 | made between continued group insurance
coverage elected | ||||||
17 | pursuant to this Section and equivalent coverage provided
to | ||||||
18 | firemen under the group policy other than pursuant to the | ||||||
19 | provisions
of this Section; provided that no municipality shall | ||||||
20 | be required by reason
of any provision of this Section to pay | ||||||
21 | any group insurance premium other
than one that may be | ||||||
22 | negotiated in a collective bargaining agreement.
If a person | ||||||
23 | electing continued coverage under this Section becomes
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24 | eligible for medicare coverage, benefits under the group policy | ||||||
25 | may
continue as a supplement to the medicare coverage upon | ||||||
26 | payment of any
required premiums to maintain the benefits of |
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1 | the group policy as
supplemental coverage.
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2 | Within 15 days of the beginning of the retirement or | ||||||
3 | disability period
of any fireman entitled to elect continued | ||||||
4 | group insurance coverage under any
group policy affected by | ||||||
5 | this Section, the municipality last employing such
fireman | ||||||
6 | shall give written notice of such beginning by certified mail, | ||||||
7 | return
receipt requested to the insurance company issuing such | ||||||
8 | policy. The notice
shall include the fireman's name and last | ||||||
9 | known place of residence and the
beginning date of the | ||||||
10 | fireman's retirement or disability period.
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11 | Within 15 days of the date of receipt of such notice from | ||||||
12 | the municipality,
the insurance company by certified mail, | ||||||
13 | return receipt requested, shall
give written notice to the | ||||||
14 | fireman at the fireman's last known place of
residence that | ||||||
15 | coverage under the group policy may be continued for the
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16 | retirement or disability period of the fireman as provided in | ||||||
17 | this Section.
Such notice shall set forth: (i) a statement of | ||||||
18 | election to be filed by
the fireman if the fireman wishes to | ||||||
19 | continue such group insurance coverage,
(ii) the amount of | ||||||
20 | monthly premium, including a statement of the portion
of such | ||||||
21 | monthly premium attributable to any dependents' coverage which | ||||||
22 | the
fireman may elect, and (iii) instructions as to the return | ||||||
23 | of the election
form to the insurance company issuing such | ||||||
24 | policy. Election shall be made,
if at all, by returning the | ||||||
25 | statement of election to the insurance company by
certified | ||||||
26 | mail, return receipt requested within 15 days after having |
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1 | received it.
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2 | If the fireman elects to continue coverage, it shall be the | ||||||
3 | obligation
of the fireman to pay the monthly premium directly | ||||||
4 | to the municipality which
shall forward it to the insurance | ||||||
5 | company
issuing the group insurance policy, or as otherwise | ||||||
6 | directed by the insurance
company; provided, however, that the | ||||||
7 | fireman shall be entitled to designate
on the statement of | ||||||
8 | election required to be filed with the insurance company
that | ||||||
9 | the total monthly premium, or such portion thereof as is not
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10 | contributed by a municipality, be deducted by a Firefighter's | ||||||
11 | Pension
Fund from any monthly pension payment otherwise payable
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12 | to or on behalf of the fireman pursuant to Article 4 of the | ||||||
13 | Illinois Pension
Code, and be remitted by such Pension Fund to | ||||||
14 | the insurance company. The
portion, if any, of the monthly | ||||||
15 | premium contributed by a
municipality for such continued group | ||||||
16 | insurance coverage shall be paid by
the municipality directly | ||||||
17 | to the insurance company issuing the group insurance
policy, or | ||||||
18 | as otherwise directed by the insurance company. Such continued
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19 | group insurance coverage shall relate back to the beginning of | ||||||
20 | the fireman's
retirement or disability period.
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21 | The amendment, renewal or extension of any group insurance | ||||||
22 | policy affected
by this Section shall be deemed to be the | ||||||
23 | issuance of a new policy of insurance
for purposes of this | ||||||
24 | Section.
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25 | In the event that a municipality makes a program of | ||||||
26 | accident, health,
hospital or medical benefits available to its |
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1 | firemen through
self-insurance, or by participation in a pool | ||||||
2 | or reciprocal insurer, or by
contract in a form other than a | ||||||
3 | policy of group insurance with one or more
medical service | ||||||
4 | plans, health care service corporations, health maintenance
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5 | organizations, or any other professional corporations or plans | ||||||
6 | under which
health care or reimbursement for the costs thereof | ||||||
7 | is
provided, whether the cost of such benefits is borne by the | ||||||
8 | municipality or
the firemen or both, such firemen and their | ||||||
9 | surviving spouses shall have
the same right to elect continued | ||||||
10 | coverage under such program of benefits
as they would have if | ||||||
11 | such benefits were provided by a policy of group
accident and | ||||||
12 | health insurance. In such cases, the notice of right to elect
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13 | continued coverage shall be sent by the municipality; the | ||||||
14 | statement of
election shall be sent to the municipality; and | ||||||
15 | references to the required
premium shall refer to that portion | ||||||
16 | of the cost of such benefits which is not
borne by the | ||||||
17 | municipality, either voluntarily or pursuant to the provisions
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18 | of a collective bargaining agreement. In the case of a | ||||||
19 | municipality
providing such benefits through self-insurance or | ||||||
20 | participation in a pool or
reciprocal insurer, the right to | ||||||
21 | elect continued coverage which is provided
by this paragraph | ||||||
22 | shall be implemented and made available to the firemen of
the | ||||||
23 | municipality and qualifying surviving spouses not later than | ||||||
24 | July 1, 1985.
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25 | The amendment, renewal or extension of any such contract in | ||||||
26 | a form other
than a policy of group insurance policy shall be |
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1 | deemed the formation of a
new contract for the purposes of this | ||||||
2 | Section.
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3 | This Section shall not limit the exercise of any conversion | ||||||
4 | privileges
available under Section 367e.
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5 | Pursuant to paragraphs (h) and (i) of Section 6 of Article | ||||||
6 | VII of the
Illinois Constitution, this Section specifically | ||||||
7 | denies and limits the
exercise by a home rule unit of any power | ||||||
8 | which is inconsistent with this
Section and all existing laws | ||||||
9 | and ordinances which are inconsistent with
this Section are | ||||||
10 | hereby superseded. This Section does not preempt the
concurrent | ||||||
11 | exercise by home rule units of powers consistent herewith. | ||||||
12 | The Division of Insurance of the Department of Financial | ||||||
13 | and Professional Regulation shall enforce the provisions of | ||||||
14 | this Section, including provisions relating to municipality | ||||||
15 | self-insured benefit plans.
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16 | (Source: P.A. 94-858, eff. 6-15-06.)
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17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
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