96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB0681


 
Introduced 2/6/2009, by Sen. John J. Cullerton
 
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 06745 RPM 16829 b

















 


 


A BILL FOR









 











SB0681

LRB096 06745 RPM 16829 b






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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 Health Maintenance Organization Act is 
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amended by changing Section 2-6 as follows:
 



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



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    Sec. 2-6. Statutory deposits. 

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

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

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


 






SB0681
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LRB096 06745 RPM 16829 b




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

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

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

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

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