Full Text of SB2375 94th General Assembly
SB2375eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning insurance.
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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 Illinois Insurance Code is amended by | 5 |
| changing Section 367f as follows:
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| (215 ILCS 5/367f) (from Ch. 73, par. 979f)
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| Sec. 367f. Firemen's continuance privilege. As used in this | 8 |
| Section:
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| 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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| 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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| 3. The "retirement or disability period" of a fireman means | 19 |
| the period:
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| 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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| 4-105a of the Illinois Pension Code, (ii) the fireman | 25 |
| retires from active
service as a fireman with an attained | 26 |
| age and accumulated creditable service
which together | 27 |
| qualify the fireman for immediate receipt of retirement | 28 |
| pension
benefits under Section 4-109 of the Illinois | 29 |
| Pension Code, or (iii) the
fireman's disability is | 30 |
| established under Section 4-112 of the Illinois
Pension | 31 |
| Code; and
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| b. which ends on the first to occur of any of the |
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| following events,
to wit: (i) the fireman's reinstatement | 2 |
| or reentry into active service
on the municipality's fire | 3 |
| department as provided for under Article 4 of
the Illinois | 4 |
| Pension Code, (ii) the fireman's exercise of any refund | 5 |
| option
available under Section 4-116 of the Illinois | 6 |
| Pension Code, (iii) the fireman's
loss pursuant to Section | 7 |
| 4-138 of the Illinois Pension Code of any benefits
provided | 8 |
| for in Article 4 of that Code, or (iv) the fireman's death | 9 |
| or --
if at the time of the fireman's death the fireman is | 10 |
| survived by a spouse
who, in that capacity, is entitled to | 11 |
| receive a surviving spouse's monthly
pension pursuant to | 12 |
| Article 4 of the Illinois Pension Code -- then the death
or | 13 |
| remarriage of that spouse.
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| No policy of group accident and health insurance under | 15 |
| which firemen
employed by a municipality are insured for their | 16 |
| individual benefit shall
be issued or delivered in this State | 17 |
| to any municipality unless such group
policy provides for the | 18 |
| election of continued group insurance coverage for
the | 19 |
| retirement or disability period of each fireman who is insured | 20 |
| under the
provisions of the group policy on the day immediately | 21 |
| preceding the day
on which the retirement or disability period | 22 |
| of such fireman begins. So
long as any required premiums for | 23 |
| continued group insurance coverage are
paid in accordance with | 24 |
| the provisions of the group policy, an election
made pursuant | 25 |
| to this Section shall provide continued group insurance
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| coverage for a fireman throughout the retirement or disability | 27 |
| period of
the fireman and, unless the fireman otherwise elects | 28 |
| and subject to any
other provisions of the group policy which | 29 |
| relate either to the provision
or to the termination of | 30 |
| dependents' coverage and which are not
inconsistent with this | 31 |
| Section, for any dependents of the fireman who are
insured | 32 |
| under the group policy on the day immediately preceding the day | 33 |
| on
which the retirement or disability period of the fireman | 34 |
| begins; provided,
however, that when such continued group | 35 |
| insurance coverage is in effect
with respect to a fireman on | 36 |
| the date
of the fireman's death but the retirement or |
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| disability period of the fireman
does not end with such | 2 |
| fireman's death, then the deceased fireman's surviving
spouse | 3 |
| upon whose death or remarriage such retirement or disability | 4 |
| period
will end shall be entitled, without further election and | 5 |
| upon payment of
any required premiums in accordance with the | 6 |
| provisions of the group policy,
to maintain such continued | 7 |
| group
insurance coverage in effect until the end of such | 8 |
| retirement or disability
period. Continued group insurance | 9 |
| coverage shall be provided in accordance
with this Section at | 10 |
| the same premium rate from time to time charged for
equivalent | 11 |
| coverage provided under the group policy with respect to | 12 |
| covered
firemen whose retirement or disability period has not | 13 |
| begun, and no distinction
or discrimination in the amount or | 14 |
| rate of premiums or in any waiver of premium
or other benefit | 15 |
| provision shall be made between continued group insurance
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| coverage elected pursuant to this Section and equivalent | 17 |
| coverage provided
to firemen under the group policy other than | 18 |
| pursuant to the provisions
of this Section; provided that no | 19 |
| municipality shall be required by reason
of any provision of | 20 |
| this Section to pay any group insurance premium other
than one | 21 |
| that may be negotiated in a collective bargaining agreement.
If | 22 |
| a person electing continued coverage under this Section becomes
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| eligible for medicare coverage, benefits under the group policy | 24 |
| may
continue as a supplement to the medicare coverage upon | 25 |
| payment of any
required premiums to maintain the benefits of | 26 |
| the group policy as
supplemental coverage.
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| Within 15 days of the beginning of the retirement or | 28 |
| disability period
of any fireman entitled to elect continued | 29 |
| group insurance coverage under any
group policy affected by | 30 |
| this Section, the municipality last employing such
fireman | 31 |
| shall give written notice of such beginning by certified mail, | 32 |
| return
receipt requested to the insurance company issuing such | 33 |
| policy. The notice
shall include the fireman's name and last | 34 |
| known place of residence and the
beginning date of the | 35 |
| fireman's retirement or disability period.
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| Within 15 days of the date of receipt of such notice from |
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| the municipality,
the insurance company by certified mail, | 2 |
| return receipt requested, shall
give written notice to the | 3 |
| fireman at the fireman's last known place of
residence that | 4 |
| coverage under the group policy may be continued for the
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| retirement or disability period of the fireman as provided in | 6 |
| this Section.
Such notice shall set forth: (i) a statement of | 7 |
| election to be filed by
the fireman if the fireman wishes to | 8 |
| continue such group insurance coverage,
(ii) the amount of | 9 |
| monthly premium, including a statement of the portion
of such | 10 |
| monthly premium attributable to any dependents' coverage which | 11 |
| the
fireman may elect, and (iii) instructions as to the return | 12 |
| of the election
form to the insurance company issuing such | 13 |
| policy. Election shall be made,
if at all, by returning the | 14 |
| statement of election to the insurance company by
certified | 15 |
| mail, return receipt requested within 15 days after having | 16 |
| received it.
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| If the fireman elects to continue coverage, it shall be the | 18 |
| obligation
of the fireman to pay the monthly premium directly | 19 |
| to the municipality which
shall forward it to the insurance | 20 |
| company
issuing the group insurance policy, or as otherwise | 21 |
| directed by the insurance
company; provided, however, that the | 22 |
| fireman shall be entitled to designate
on the statement of | 23 |
| election required to be filed with the insurance company
that | 24 |
| the total monthly premium, or such portion thereof as is not
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| contributed by a municipality, be deducted by a Firefighter's | 26 |
| Pension
Fund from any monthly pension payment otherwise payable
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| to or on behalf of the fireman pursuant to Article 4 of the | 28 |
| Illinois Pension
Code, and be remitted by such Pension Fund to | 29 |
| the insurance company. The
portion, if any, of the monthly | 30 |
| premium contributed by a
municipality for such continued group | 31 |
| insurance coverage shall be paid by
the municipality directly | 32 |
| to the insurance company issuing the group insurance
policy, or | 33 |
| as otherwise directed by the insurance company. Such continued
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| group insurance coverage shall relate back to the beginning of | 35 |
| the fireman's
retirement or disability period.
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| The amendment, renewal or extension of any group insurance |
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| policy affected
by this Section shall be deemed to be the | 2 |
| issuance of a new policy of insurance
for purposes of this | 3 |
| Section.
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| In the event that a municipality makes a program of | 5 |
| accident, health,
hospital or medical benefits available to its | 6 |
| firemen through
self-insurance, or by participation in a pool | 7 |
| or reciprocal insurer, or by
contract in a form other than a | 8 |
| policy of group insurance with one or more
medical service | 9 |
| plans, health care service corporations, health maintenance
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| organizations, or any other professional corporations or plans | 11 |
| under which
health care or reimbursement for the costs thereof | 12 |
| is
provided, whether the cost of such benefits is borne by the | 13 |
| municipality or
the firemen or both, such firemen and their | 14 |
| surviving spouses shall have
the same right to elect continued | 15 |
| coverage under such program of benefits
as they would have if | 16 |
| such benefits were provided by a policy of group
accident and | 17 |
| health insurance. In such cases, the notice of right to elect
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| continued coverage shall be sent by the municipality; the | 19 |
| statement of
election shall be sent to the municipality; and | 20 |
| references to the required
premium shall refer to that portion | 21 |
| of the cost of such benefits which is not
borne by the | 22 |
| municipality, either voluntarily or pursuant to the provisions
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| of a collective bargaining agreement. In the case of a | 24 |
| municipality
providing such benefits through self-insurance or | 25 |
| participation in a pool or
reciprocal insurer, the right to | 26 |
| elect continued coverage which is provided
by this paragraph | 27 |
| shall be implemented and made available to the firemen of
the | 28 |
| municipality and qualifying surviving spouses not later than | 29 |
| July 1, 1985.
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| The amendment, renewal or extension of any such contract in | 31 |
| a form other
than a policy of group insurance policy shall be | 32 |
| deemed the formation of a
new contract for the purposes of this | 33 |
| Section.
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| This Section shall not limit the exercise of any conversion | 35 |
| privileges
available under Section 367e.
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| Pursuant to paragraphs (h) and (i) of Section 6 of Article |
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| VII of the
Illinois Constitution, this Section specifically | 2 |
| denies and limits the
exercise by a home rule unit of any power | 3 |
| which is inconsistent with this
Section and all existing laws | 4 |
| and ordinances which are inconsistent with
this Section are | 5 |
| hereby superseded. This Section does not preempt the
concurrent | 6 |
| exercise by home rule units of powers consistent herewith. | 7 |
| The Division of Insurance of the Department of Financial | 8 |
| and Professional Regulation shall enforce the provisions of | 9 |
| this Section, including provisions relating to municipality | 10 |
| self-insured benefit plans.
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| (Source: P.A. 86-1444.)
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.
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