Full Text of HB0984 96th General Assembly
HB0984 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB0984
Introduced 2/10/2009, by Rep. Deborah Mell SYNOPSIS AS INTRODUCED: |
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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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HB0984 |
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LRB096 07832 RPM 17935 b |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Health Maintenance Organization Act is | 5 |
| 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 | 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.
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| 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
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| 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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HB0984 |
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LRB096 07832 RPM 17935 b |
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| $300,000. The amount on deposit shall remain
as an admitted | 2 |
| asset of the organization in the determination of its net
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| 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
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| 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
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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, | 23 |
| eff.
7-11-02.)
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