Full Text of SB0309 100th General Assembly
SB0309 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB0309 Introduced 1/24/2017, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: | | 215 ILCS 125/2-6 | from Ch. 111 1/2, par. 1406.2 |
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Amends the Health Maintenance Organization Act. Makes a technical change in
a
Section concerning deposits with the Director of Insurance.
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| | A BILL FOR |
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| 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 |
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| 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.)
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