96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0984


 
Introduced 2/10/2009, by Rep. Deborah Mell
 
SYNOPSIS AS INTRODUCED:
 		













215 ILCS 125/2-6
  from Ch. 111 1/2, par. 1406.2







    Amends the Health Maintenance Organization Act.  Makes a technical change in
a
Section concerning deposits with the Director of Insurance.
















LRB096 07832 RPM 17935 b

















 


 


A BILL FOR









 











HB0984

LRB096 07832 RPM 17935 b






1
    AN ACT concerning regulation.

 
2
    Be it enacted by the People of the State of Illinois, 
3
represented in the General Assembly: 

 
4
    Section 5. The Health Maintenance Organization Act is 
5
amended by changing Section 2-6 as follows:
 



6
    (215 ILCS 125/2-6)  (from Ch. 111 1/2, par. 1406.2)



7
    Sec. 2-6. Statutory deposits. 

8
    (a) An organization subject to the
the provisions
of this 
9
Act shall make and maintain with the Director through December 
10
30,
1993, for the protection of enrollees of the organization, 
11
a deposit of
securities which are authorized investments under 
12
paragraphs (1)
and (2) of subsection (h) of Section 3-1 having 
13
a fair market value equal to
at least $100,000.  Effective 
14
December 31, 1993 and through December 30,
1994, the deposit 
15
shall have a fair market value at least equal to $200,000.

16
Effective December 31, 1994 and thereafter, the deposit shall 
17
have a fair
market value at least equal to $300,000.  An 
18
organization issued a certificate
of authority on or after the 
19
effective date of this Amendatory Act of 1993,
shall make and 
20
maintain with the Director; for the protection of enrollees of

21
the organization, a deposit of securities which are authorized 
22
investments
under paragraphs (1) and (2) of subsection (h) of 
23
Section 3-1 having a fair
market value equal to at least 
 


 






HB0984
- 2 -
LRB096 07832 RPM 17935 b




1
$300,000.  The amount on deposit shall remain
as an admitted 
2
asset of the organization in the determination of its net

3
worth.  The Director may release the required deposit of 
4
securities
upon receipt of
an order of a court having proper 
5
jurisdiction or
upon: (i)
certification by the organization 
6
that it has no outstanding
enrollee creditors, enrollees, 
7
certificate holders, or enrollee obligations
in effect and no 
8
plans to engage in the
business of insurance as a health 
9
maintenance organization; (ii)
receipt of
a lawful resolution 
10
of the
organization's governing body effecting the surrender of

11
its certificate of authority, articles of incorporation, or 
12
other
organizational documents to their issuing governmental 
13
officer for voluntary or
administrative dissolution; and (iii) 
14
receipt of the name and
forwarding address for each of the 
15
final officers and directors of the
organization,
together with 
16
a plan of dissolution approved by the Director.
17
    (b) An organization that offers a point-of-service 
18
product, as permitted
by Article 4.5, must maintain an 
19
additional deposit in an amount that is not
less than the 
20
greater of 125% of the organization's annual projected

21
point-of-service claims or $300,000.

22
(Source: P.A. 92-75, eff. 7-12-01; 92-135, eff. 1-1-02; 92-651, 
23
eff.
7-11-02.)