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90_HB1552sam004
LRB9004923JSgcam09
1 AMENDMENT TO HOUSE BILL 1552
2 AMENDMENT NO. . Amend House Bill 1552, AS AMENDED,
3 by replacing the introductory clause to Section 30 of the
4 bill with the following:
5 "Section 30 The Illinois Insurance Code is amended by
6 changing Section 4 and adding Sections 356w and 356x as
7 follows:
8 (215 ILCS 5/4) (from Ch. 73, par. 616)
9 Sec. 4. Classes of insurance. Insurance and insurance
10 business shall be classified as follows:
11 Class 1. Life, Accident and Health.
12 (a) Life. Insurance on the lives of persons and every
13 insurance appertaining thereto or connected therewith and
14 granting, purchasing or disposing of annuities. Policies of
15 life or endowment insurance or annuity contracts or contracts
16 supplemental thereto which contain provisions for additional
17 benefits in case of death by accidental means and provisions
18 operating to safeguard such policies or contracts against
19 lapse, to give a special surrender value, or special benefit,
20 or an annuity, in the event, that the insured or annuitant
21 shall become totally and permanently disabled as defined by
22 the policy or contract, or which contain benefits providing
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1 acceleration of life or endowment or annuity benefits in
2 advance of the time they would otherwise be payable, as an
3 indemnity for long term care which is certified or ordered by
4 a physician, including but not limited to, professional
5 nursing care, medical care expenses, custodial nursing care,
6 non-nursing custodial care provided in a nursing home or at a
7 residence of the insured, or which contain benefits providing
8 acceleration of life or endowment or annuity benefits in
9 advance of the time they would otherwise be payable, at any
10 time during the insured's lifetime, as an indemnity for a
11 terminal illness shall be deemed to be policies of life or
12 endowment insurance or annuity contracts within the intent of
13 this clause.
14 Also to be deemed as policies of life or endowment
15 insurance or annuity contracts within the intent of this
16 clause shall be those policies or riders that provide for the
17 payment of up to 75% 25% of the face amount of benefits in
18 advance of the time they would otherwise be payable upon a
19 diagnosis by a physician licensed to practice medicine in all
20 of its branches that the insured has incurred a one of the
21 covered condition conditions listed in the policy or rider.
22 Every such policy or rider shall contain a majority of
23 the following "Covered condition", as used in this clause,
24 means conditions: heart attack,; stroke,; coronary artery
25 surgery,; life threatening cancer,; renal failure,;
26 alzheimer's disease,; paraplegia,; major organ
27 transplantation, total and permanent disability, and any
28 other medical condition that the Department may approve for
29 any particular filing.
30 The Director may issue rules that specify prohibited
31 policy provisions, not otherwise specifically prohibited by
32 law, which in the opinion of the Director are unjust, unfair,
33 or unfairly discriminatory to the policyholder, any person
34 insured under the policy, or beneficiary.
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1 (b) Accident and health. Insurance against bodily
2 injury, disablement or death by accident and against
3 disablement resulting from sickness or old age and every
4 insurance appertaining thereto, including stop-loss
5 insurance. Stop-loss insurance is insurance against the risk
6 of economic loss issued to a single employer self-funded
7 employee disability benefit plan or an employee welfare
8 benefit plan as described in 29 U.S.C. 100 et seq.
9 (c) Legal Expense Insurance. Insurance which involves
10 the assumption of a contractual obligation to reimburse the
11 beneficiary against or pay on behalf of the beneficiary, all
12 or a portion of his fees, costs, or expenses related to or
13 arising out of services performed by or under the supervision
14 of an attorney licensed to practice in the jurisdiction
15 wherein the services are performed, regardless of whether the
16 payment is made by the beneficiaries individually or by a
17 third person for them, but does not include the provision of
18 or reimbursement for legal services incidental to other
19 insurance coverages. The insurance laws of this State,
20 including this Act do not apply to:
21 (i) Retainer contracts made by attorneys at law
22 with individual clients with fees based on estimates of
23 the nature and amount of services to be provided to the
24 specific client, and similar contracts made with a group
25 of clients involved in the same or closely related legal
26 matters;
27 (ii) Plans owned or operated by attorneys who are
28 the providers of legal services to the plan;
29 (iii) Plans providing legal service benefits to
30 groups where such plans are owned or operated by
31 authority of a state, county, local or other bar
32 association;
33 (iv) Any lawyer referral service authorized or
34 operated by a state, county, local or other bar
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1 association;
2 (v) The furnishing of legal assistance by labor
3 unions and other employee organizations to their members
4 in matters relating to employment or occupation;
5 (vi) The furnishing of legal assistance to members
6 or dependents, by churches, consumer organizations,
7 cooperatives, educational institutions, credit unions, or
8 organizations of employees, where such organizations
9 contract directly with lawyers or law firms for the
10 provision of legal services, and the administration and
11 marketing of such legal services is wholly conducted by
12 the organization or its subsidiary;
13 (vii) Legal services provided by an employee
14 welfare benefit plan defined by the Employee Retirement
15 Income Security Act of 1974;
16 (viii) Any collectively bargained plan for legal
17 services between a labor union and an employer negotiated
18 pursuant to Section 302 of the Labor Management Relations
19 Act as now or hereafter amended, under which plan legal
20 services will be provided for employees of the employer
21 whether or not payments for such services are funded to
22 or through an insurance company.
23 Class 2. Casualty, Fidelity and Surety.
24 (a) Accident and health. Insurance against bodily
25 injury, disablement or death by accident and against
26 disablement resulting from sickness or old age and every
27 insurance appertaining thereto, including stop-loss
28 insurance. Stop-loss insurance is insurance against the risk
29 of economic loss issued to a single employer self-funded
30 employee disability benefit plan or an employee welfare
31 benefit plan as described in 29 U.S.C. 1001 et seq.
32 (b) Vehicle. Insurance against any loss or liability
33 resulting from or incident to the ownership, maintenance or
34 use of any vehicle (motor or otherwise), draft animal or
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1 aircraft. Any policy insuring against any loss or liability
2 on account of the bodily injury or death of any person may
3 contain a provision for payment of disability benefits to
4 injured persons and death benefits to dependents,
5 beneficiaries or personal representatives of persons who are
6 killed, including the named insured, irrespective of legal
7 liability of the insured, if the injury or death for which
8 benefits are provided is caused by accident and sustained
9 while in or upon or while entering into or alighting from or
10 through being struck by a vehicle (motor or otherwise), draft
11 animal or aircraft, and such provision shall not be deemed to
12 be accident insurance.
13 (c) Liability. Insurance against the liability of the
14 insured for the death, injury or disability of an employee or
15 other person, and insurance against the liability of the
16 insured for damage to or destruction of another person's
17 property.
18 (d) Workers' compensation. Insurance of the obligations
19 accepted by or imposed upon employers under laws for workers'
20 compensation.
21 (e) Burglary and forgery. Insurance against loss or
22 damage by burglary, theft, larceny, robbery, forgery, fraud
23 or otherwise; including all householders' personal property
24 floater risks.
25 (f) Glass. Insurance against loss or damage to glass
26 including lettering, ornamentation and fittings from any
27 cause.
28 (g) Fidelity and surety. Become surety or guarantor for
29 any person, copartnership or corporation in any position or
30 place of trust or as custodian of money or property, public
31 or private; or, becoming a surety or guarantor for the
32 performance of any person, copartnership or corporation of
33 any lawful obligation, undertaking, agreement or contract of
34 any kind, except contracts or policies of insurance; and
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1 underwriting blanket bonds. Such obligations shall be known
2 and treated as suretyship obligations and such business shall
3 be known as surety business.
4 (h) Miscellaneous. Insurance against loss or damage to
5 property and any liability of the insured caused by accidents
6 to boilers, pipes, pressure containers, machinery and
7 apparatus of any kind and any apparatus connected thereto, or
8 used for creating, transmitting or applying power, light,
9 heat, steam or refrigeration, making inspection of and
10 issuing certificates of inspection upon elevators, boilers,
11 machinery and apparatus of any kind and all mechanical
12 apparatus and appliances appertaining thereto; insurance
13 against loss or damage by water entering through leaks or
14 openings in buildings, or from the breakage or leakage of a
15 sprinkler, pumps, water pipes, plumbing and all tanks,
16 apparatus, conduits and containers designed to bring water
17 into buildings or for its storage or utilization therein, or
18 caused by the falling of a tank, tank platform or supports,
19 or against loss or damage from any cause (other than causes
20 specifically enumerated under Class 3 of this Section) to
21 such sprinkler, pumps, water pipes, plumbing, tanks,
22 apparatus, conduits or containers; insurance against loss or
23 damage which may result from the failure of debtors to pay
24 their obligations to the insured; and insurance of the
25 payment of money for personal services under contracts of
26 hiring.
27 (i) Other casualty risks. Insurance against any other
28 casualty risk not otherwise specified under Classes 1 or 3,
29 which may lawfully be the subject of insurance and may
30 properly be classified under Class 2.
31 (j) Contingent losses. Contingent, consequential and
32 indirect coverages wherein the proximate cause of the loss is
33 attributable to any one of the causes enumerated under Class
34 2. Such coverages shall, for the purpose of classification,
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1 be included in the specific grouping of the kinds of
2 insurance wherein such cause is specified.
3 (k) Livestock and domestic animals. Insurance against
4 mortality, accident and health of livestock and domestic
5 animals.
6 (l) Legal expense insurance. Insurance against risk
7 resulting from the cost of legal services as defined under
8 Class 1(c).
9 Class 3. Fire and Marine, etc.
10 (a) Fire. Insurance against loss or damage by fire,
11 smoke and smudge, lightning or other electrical disturbances.
12 (b) Elements. Insurance against loss or damage by
13 earthquake, windstorms, cyclone, tornado, tempests, hail,
14 frost, snow, ice, sleet, flood, rain, drought or other
15 weather or climatic conditions including excess or deficiency
16 of moisture, rising of the waters of the ocean or its
17 tributaries.
18 (c) War, riot and explosion. Insurance against loss or
19 damage by bombardment, invasion, insurrection, riot, strikes,
20 civil war or commotion, military or usurped power, or
21 explosion (other than explosion of steam boilers and the
22 breaking of fly wheels on premises owned, controlled,
23 managed, or maintained by the insured.)
24 (d) Marine and transportation. Insurance against loss or
25 damage to vessels, craft, aircraft, vehicles of every kind,
26 (excluding vehicles operating under their own power or while
27 in storage not incidental to transportation) as well as all
28 goods, freights, cargoes, merchandise, effects,
29 disbursements, profits, moneys, bullion, precious stones,
30 securities, chooses in action, evidences of debt, valuable
31 papers, bottomry and respondentia interests and all other
32 kinds of property and interests therein, in respect to,
33 appertaining to or in connection with any or all risks or
34 perils of navigation, transit, or transportation, including
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1 war risks, on or under any seas or other waters, on land or
2 in the air, or while being assembled, packed, crated, baled,
3 compressed or similarly prepared for shipment or while
4 awaiting the same or during any delays, storage,
5 transshipment, or reshipment incident thereto, including
6 marine builder's risks and all personal property floater
7 risks; and for loss or damage to persons or property in
8 connection with or appertaining to marine, inland marine,
9 transit or transportation insurance, including liability for
10 loss of or damage to either arising out of or in connection
11 with the construction, repair, operation, maintenance, or use
12 of the subject matter of such insurance, (but not including
13 life insurance or surety bonds); but, except as herein
14 specified, shall not mean insurances against loss by reason
15 of bodily injury to the person; and insurance against loss or
16 damage to precious stones, jewels, jewelry, gold, silver and
17 other precious metals whether used in business or trade or
18 otherwise and whether the same be in course of transportation
19 or otherwise, which shall include jewelers' block insurance;
20 and insurance against loss or damage to bridges, tunnels and
21 other instrumentalities of transportation and communication
22 (excluding buildings, their furniture and furnishings, fixed
23 contents and supplies held in storage) unless fire, tornado,
24 sprinkler leakage, hail, explosion, earthquake, riot and
25 civil commotion are the only hazards to be covered; and to
26 piers, wharves, docks and slips, excluding the risks of fire,
27 tornado, sprinkler leakage, hail, explosion, earthquake, riot
28 and civil commotion; and to other aids to navigation and
29 transportation, including dry docks and marine railways,
30 against all risk.
31 (e) Vehicle. Insurance against loss or liability
32 resulting from or incident to the ownership, maintenance or
33 use of any vehicle (motor or otherwise), draft animal or
34 aircraft, excluding the liability of the insured for the
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1 death, injury or disability of another person.
2 (f) Property damage, sprinkler leakage and crop.
3 Insurance against the liability of the insured for loss or
4 damage to another person's property or property interests
5 from any cause enumerated in this class; insurance against
6 loss or damage by water entering through leaks or openings in
7 buildings, or from the breakage or leakage of a sprinkler,
8 pumps, water pipes, plumbing and all tanks, apparatus,
9 conduits and containers designed to bring water into
10 buildings or for its storage or utilization therein, or
11 caused by the falling of a tank, tank platform or supports or
12 against loss or damage from any cause to such sprinklers,
13 pumps, water pipes, plumbing, tanks, apparatus, conduits or
14 containers; insurance against loss or damage from insects,
15 diseases or other causes to trees, crops or other products of
16 the soil.
17 (g) Other fire and marine risks. Insurance against any
18 other property risk not otherwise specified under Classes 1
19 or 2, which may lawfully be the subject of insurance and may
20 properly be classified under Class 3.
21 (h) Contingent losses. Contingent, consequential and
22 indirect coverages wherein the proximate cause of the loss is
23 attributable to any of the causes enumerated under Class 3.
24 Such coverages shall, for the purpose of classification, be
25 included in the specific grouping of the kinds of insurance
26 wherein such cause is specified.
27 (i) Legal expense insurance. Insurance against risk
28 resulting from the cost of legal services as defined under
29 Class 1(c).
30 (Source: P.A. 88-364.)"; and
31 by replacing Section 99 of the bill with the following:
32 "Section 99. Effective date. This Section and the
33 provisions of this Act amending Section 4 of the Illinois
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1 Insurance Code take effect upon becoming law; the remaining
2 provisions of this Act take effect January 1, 1999.".