Rep. Karen May
Filed: 3/12/2009
 
 

 




 

 		












09600HB3639ham001

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AMENDMENT TO HOUSE BILL 3639 




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    AMENDMENT NO. ______. Amend House Bill 3639  by replacing 
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everything after the enacting clause with the following:


 
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    "Section 5. The Illinois Insurance Code is amended  by 
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changing Sections 357.9 and 357.9a as follows:
 



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    (215 ILCS 5/357.9)  (from Ch. 73, par. 969.9)



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    Sec. 357.9. "TIME OF PAYMENT OF CLAIMS: Indemnities
payable 
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under
this policy for any loss other than loss for which this 
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policy provides
any periodic payment will be paid immediately 
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upon receipt of due
written proof of such loss.
Subject
to due 
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written proof of loss, all
accrued indemnities for loss for 
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which this policy provides periodic
payment will be paid ....

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(insert period for payment which must not be
less frequently 
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than monthly) and any balance remaining unpaid upon the

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termination of liability, will be paid immediately upon receipt 
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of due
written proof."

 


 






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    All claims and indemnities payable under the terms of
a 
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policy of accident and health insurance shall be paid within 30 
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days
following receipt by the insurer of due proof of loss.

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Failure to pay
within such period shall entitle the insured
to 
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interest at the rate of 9
per cent per annum from the 30th day 
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after receipt of such proof of loss to
the date of late 
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payment, provided that interest amounting to less than one

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dollar need not be paid.
An insured or an insured's assignee 
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shall be
notified by the insurer, health maintenance 
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organization, managed care plan,
health care plan, preferred 
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provider organization, or third party administrator
of any 
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known failure to provide sufficient documentation for a
due 
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proof of
loss within 30 days after receipt of the claim.
Any

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required interest payments shall be made within 30 days after 
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the payment.

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    The requirements of this Section shall apply to any group 
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or individual policy of accident
and health insurance, 
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including insurance against disablement, delivered, issued for 
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delivery, renewed or amended on
or after 180 days following the 
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effective date of this amendatory Act of 1985.
The requirements 
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of this Section also shall specifically apply to
any group 
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policy of dental insurance only, delivered, issued for

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delivery, renewed or amended on or after 180 days following the 
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effective
date of this amendatory Act of 1987. The changes to 
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this Section made by this amendatory Act of the 96th General 
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Assembly shall apply to any policy of group or individual 
 


 






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accident and health insurance delivered, issued for delivery, 
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renewed, or amended on or after 180 days following the 
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effective date of this amendatory Act of the 96th General 
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Assembly. 

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(Source: P.A. 91-605, eff. 12-14-99.)

 



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    (215 ILCS 5/357.9a)  (from Ch. 73, par. 969.9a)



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    Sec. 357.9a. Delay in payment of claims. Periodic payments

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of accrued indemnities for disablement or for loss-of-time 
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coverage under group and individual accident
and health 
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policies shall commence not later than 30 days after
the 
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receipt by the company of the required written proofs of loss.

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An insurer which violates this Section if liable under said 
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policy, shall
pay to the insured, in addition to any other 
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penalty provided for in this Code,
interest at the rate of 9% 
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per annum from the 30th day after
receipt of such proofs of 
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loss to the date of late payment of the
accrued indemnities, 
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provided that interest amounting to less than
one dollar need 
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not be paid.

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(Source: P.A. 92-139, eff. 7-24-01.)".