State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]


[ Engrossed ][ Enrolled ][ House Amendment 001 ]

90_SB1901

      215 ILCS 5/4              from Ch. 73, par. 616
          Amends the Illinois  Insurance  Code.   Provides  that  a
      policy that allows payment of a percentage of the face amount
      of  benefits in advance upon a diagnosis that the insured has
      incurred a medical condition listed in the policy may pay  up
      to  75%,  rather  than  25%,  of  the  benefits  in  advance.
      Provides that total and permanent disability or any condition
      approved  by  the  Department  of  Insurance  may qualify for
      advance payments.  Effective immediately.
                                                     LRB9011659JSgc
                                               LRB9011659JSgc
 1        AN ACT to amend the Illinois Insurance Code  by  changing
 2    Section 4.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Illinois Insurance  Code  is  amended  by
 6    changing Section 4 as follows:
 7        (215 ILCS 5/4) (from Ch. 73, par. 616)
 8        Sec.  4.   Classes  of insurance. Insurance and insurance
 9    business shall be classified as follows:
10        Class 1. Life, Accident and Health.
11        (a)  Life. Insurance on the lives of  persons  and  every
12    insurance  appertaining  thereto  or  connected therewith and
13    granting, purchasing or disposing of annuities.  Policies  of
14    life or endowment insurance or annuity contracts or contracts
15    supplemental  thereto which contain provisions for additional
16    benefits in case of death by accidental means and  provisions
17    operating  to  safeguard  such  policies or contracts against
18    lapse, to give a special surrender value, or special benefit,
19    or an annuity, in the event, that the  insured  or  annuitant
20    shall  become  totally and permanently disabled as defined by
21    the policy or contract, or which contain  benefits  providing
22    acceleration  of  life  or  endowment  or annuity benefits in
23    advance of the time they would otherwise be  payable,  as  an
24    indemnity for long term care which is certified or ordered by
25    a  physician,  including  but  not  limited  to, professional
26    nursing care, medical care expenses, custodial nursing  care,
27    non-nursing custodial care provided in a nursing home or at a
28    residence of the insured, or which contain benefits providing
29    acceleration  of  life  or  endowment  or annuity benefits in
30    advance of the time they would otherwise be payable,  at  any
31    time  during  the  insured's  lifetime, as an indemnity for a
                            -2-                LRB9011659JSgc
 1    terminal illness shall be deemed to be policies  of  life  or
 2    endowment insurance or annuity contracts within the intent of
 3    this clause.
 4        Also  to  be  deemed  as  policies  of  life or endowment
 5    insurance or annuity contracts  within  the  intent  of  this
 6    clause shall be those policies or riders that provide for the
 7    payment  of  up  to 75% 25% of the face amount of benefits in
 8    advance of the time they would otherwise be  payable  upon  a
 9    diagnosis by a physician licensed to practice medicine in all
10    of  its  branches  that the insured has incurred a one of the
11    covered condition conditions listed in the policy or rider.
12        Every such policy or rider shall contain  a  majority  of
13    the  following  "Covered  condition", as used in this clause,
14    means conditions: heart  attack,;  stroke,;  coronary  artery
15    surgery,;   life   threatening   cancer,;   renal   failure,;
16    alzheimer's     disease,;     paraplegia,;     major    organ
17    transplantation, total  and  permanent  disability,  and  any
18    other  medical  condition that the Department may approve for
19    any particular filing.
20        The Director may  issue  rules  that  specify  prohibited
21    policy  provisions,  not otherwise specifically prohibited by
22    law, which in the opinion of the Director are unjust, unfair,
23    or unfairly discriminatory to the  policyholder,  any  person
24    insured under the policy, or beneficiary.
25        (b)  Accident   and   health.  Insurance  against  bodily
26    injury,  disablement  or  death  by  accident   and   against
27    disablement  resulting  from  sickness  or  old age and every
28    insurance   appertaining   thereto,    including    stop-loss
29    insurance.  Stop-loss insurance is insurance against the risk
30    of  economic  loss  issued  to  a single employer self-funded
31    employee disability  benefit  plan  or  an  employee  welfare
32    benefit plan as described in 29 U.S.C. 100 et seq.
33        (c)  Legal  Expense  Insurance.  Insurance which involves
34    the assumption of a contractual obligation to  reimburse  the
                            -3-                LRB9011659JSgc
 1    beneficiary  against or pay on behalf of the beneficiary, all
 2    or a portion of his fees, costs, or expenses  related  to  or
 3    arising out of services performed by or under the supervision
 4    of  an  attorney  licensed  to  practice  in the jurisdiction
 5    wherein the services are performed, regardless of whether the
 6    payment is made by the beneficiaries  individually  or  by  a
 7    third  person for them, but does not include the provision of
 8    or reimbursement  for  legal  services  incidental  to  other
 9    insurance  coverages.   The  insurance  laws  of  this State,
10    including this Act do not apply to:
11             (i)  Retainer contracts made  by  attorneys  at  law
12        with  individual  clients with fees based on estimates of
13        the nature and amount of services to be provided  to  the
14        specific  client, and similar contracts made with a group
15        of clients involved in the same or closely related  legal
16        matters;
17             (ii)  Plans  owned  or operated by attorneys who are
18        the providers of legal services to the plan;
19             (iii)  Plans providing  legal  service  benefits  to
20        groups   where  such  plans  are  owned  or  operated  by
21        authority  of  a  state,  county,  local  or  other   bar
22        association;
23             (iv)  Any  lawyer  referral  service  authorized  or
24        operated   by   a  state,  county,  local  or  other  bar
25        association;
26             (v)  The furnishing of  legal  assistance  by  labor
27        unions  and other employee organizations to their members
28        in matters relating to employment or occupation;
29             (vi)  The furnishing of legal assistance to  members
30        or   dependents,  by  churches,  consumer  organizations,
31        cooperatives, educational institutions, credit unions, or
32        organizations  of  employees,  where  such  organizations
33        contract directly with  lawyers  or  law  firms  for  the
34        provision  of  legal services, and the administration and
                            -4-                LRB9011659JSgc
 1        marketing of such legal services is wholly  conducted  by
 2        the organization or its subsidiary;
 3             (vii)  Legal   services   provided  by  an  employee
 4        welfare benefit plan defined by the  Employee  Retirement
 5        Income Security Act of 1974;
 6             (viii)  Any  collectively  bargained  plan for legal
 7        services between a labor union and an employer negotiated
 8        pursuant to Section 302 of the Labor Management Relations
 9        Act as now or hereafter amended, under which  plan  legal
10        services  will  be provided for employees of the employer
11        whether or not payments for such services are  funded  to
12        or through an insurance company.
13        Class 2. Casualty, Fidelity and Surety.
14        (a)  Accident   and   health.  Insurance  against  bodily
15    injury,  disablement  or  death  by  accident   and   against
16    disablement  resulting  from  sickness  or  old age and every
17    insurance   appertaining   thereto,    including    stop-loss
18    insurance.  Stop-loss insurance is insurance against the risk
19    of  economic  loss  issued  to  a single employer self-funded
20    employee disability  benefit  plan  or  an  employee  welfare
21    benefit plan as described in 29 U.S.C. 1001 et seq.
22        (b)  Vehicle.  Insurance  against  any  loss or liability
23    resulting from or incident to the ownership,  maintenance  or
24    use  of  any  vehicle  (motor  or otherwise), draft animal or
25    aircraft. Any policy insuring against any loss  or  liability
26    on  account  of  the bodily injury or death of any person may
27    contain a provision for payment  of  disability  benefits  to
28    injured   persons   and   death   benefits   to   dependents,
29    beneficiaries  or personal representatives of persons who are
30    killed, including the named insured,  irrespective  of  legal
31    liability  of  the  insured, if the injury or death for which
32    benefits are provided is caused  by  accident  and  sustained
33    while  in or upon or while entering into or alighting from or
34    through being struck by a vehicle (motor or otherwise), draft
                            -5-                LRB9011659JSgc
 1    animal or aircraft, and such provision shall not be deemed to
 2    be accident insurance.
 3        (c)  Liability. Insurance against the  liability  of  the
 4    insured for the death, injury or disability of an employee or
 5    other  person,  and  insurance  against  the liability of the
 6    insured for damage to  or  destruction  of  another  person's
 7    property.
 8        (d)  Workers'  compensation. Insurance of the obligations
 9    accepted by or imposed upon employers under laws for workers'
10    compensation.
11        (e)  Burglary and  forgery.  Insurance  against  loss  or
12    damage  by  burglary, theft, larceny, robbery, forgery, fraud
13    or otherwise; including all householders'  personal  property
14    floater risks.
15        (f)  Glass.  Insurance  against  loss  or damage to glass
16    including lettering,  ornamentation  and  fittings  from  any
17    cause.
18        (g)  Fidelity  and surety. Become surety or guarantor for
19    any person, copartnership or corporation in any  position  or
20    place  of  trust or as custodian of money or property, public
21    or private; or,  becoming  a  surety  or  guarantor  for  the
22    performance  of  any  person, copartnership or corporation of
23    any lawful obligation, undertaking, agreement or contract  of
24    any  kind,  except  contracts  or  policies of insurance; and
25    underwriting blanket bonds. Such obligations shall  be  known
26    and treated as suretyship obligations and such business shall
27    be known as surety business.
28        (h)  Miscellaneous.  Insurance  against loss or damage to
29    property and any liability of the insured caused by accidents
30    to  boilers,  pipes,  pressure  containers,   machinery   and
31    apparatus of any kind and any apparatus connected thereto, or
32    used  for  creating,  transmitting  or applying power, light,
33    heat,  steam  or  refrigeration,  making  inspection  of  and
34    issuing certificates of inspection upon  elevators,  boilers,
                            -6-                LRB9011659JSgc
 1    machinery  and  apparatus  of  any  kind  and  all mechanical
 2    apparatus  and  appliances  appertaining  thereto;  insurance
 3    against loss or damage by water  entering  through  leaks  or
 4    openings  in  buildings, or from the breakage or leakage of a
 5    sprinkler,  pumps,  water  pipes,  plumbing  and  all  tanks,
 6    apparatus, conduits and containers designed  to  bring  water
 7    into  buildings or for its storage or utilization therein, or
 8    caused by the falling of a tank, tank platform  or  supports,
 9    or  against  loss or damage from any cause (other than causes
10    specifically enumerated under Class 3  of  this  Section)  to
11    such   sprinkler,   pumps,   water  pipes,  plumbing,  tanks,
12    apparatus, conduits or containers; insurance against loss  or
13    damage  which  may  result from the failure of debtors to pay
14    their obligations  to  the  insured;  and  insurance  of  the
15    payment  of  money  for  personal services under contracts of
16    hiring.
17        (i)  Other casualty risks. Insurance  against  any  other
18    casualty  risk  not otherwise specified under Classes 1 or 3,
19    which may lawfully  be  the  subject  of  insurance  and  may
20    properly be classified under Class 2.
21        (j)  Contingent  losses.  Contingent,  consequential  and
22    indirect coverages wherein the proximate cause of the loss is
23    attributable  to any one of the causes enumerated under Class
24    2. Such coverages shall, for the purpose  of  classification,
25    be  included  in  the  specific  grouping  of  the  kinds  of
26    insurance wherein such cause is specified.
27        (k)  Livestock  and  domestic  animals. Insurance against
28    mortality, accident and  health  of  livestock  and  domestic
29    animals.
30        (l)  Legal  expense  insurance.   Insurance  against risk
31    resulting from the  cost of legal services as  defined  under
32    Class 1(c).
33        Class 3. Fire and Marine, etc.
34        (a)  Fire.  Insurance  against  loss  or  damage by fire,
                            -7-                LRB9011659JSgc
 1    smoke and smudge, lightning or other electrical disturbances.
 2        (b)  Elements.  Insurance  against  loss  or  damage   by
 3    earthquake,  windstorms,  cyclone,  tornado,  tempests, hail,
 4    frost, snow,  ice,  sleet,  flood,  rain,  drought  or  other
 5    weather or climatic conditions including excess or deficiency
 6    of  moisture,  rising  of  the  waters  of  the  ocean or its
 7    tributaries.
 8        (c)  War, riot and explosion. Insurance against  loss  or
 9    damage by bombardment, invasion, insurrection, riot, strikes,
10    civil  war  or  commotion,  military  or  usurped  power,  or
11    explosion  (other  than  explosion  of  steam boilers and the
12    breaking  of  fly  wheels  on  premises  owned,   controlled,
13    managed, or maintained by the insured.)
14        (d)  Marine and transportation. Insurance against loss or
15    damage  to  vessels, craft, aircraft, vehicles of every kind,
16    (excluding vehicles operating under their own power or  while
17    in  storage  not incidental to transportation) as well as all
18    goods,    freights,    cargoes,     merchandise,     effects,
19    disbursements,  profits,  moneys,  bullion,  precious stones,
20    securities, chooses in action, evidences  of  debt,  valuable
21    papers,  bottomry  and  respondentia  interests and all other
22    kinds of property  and  interests  therein,  in  respect  to,
23    appertaining  to  or  in  connection with any or all risks or
24    perils of navigation, transit, or  transportation,  including
25    war  risks,  on or under any seas or other waters, on land or
26    in the air, or while being assembled, packed, crated,  baled,
27    compressed  or  similarly  prepared  for  shipment  or  while
28    awaiting   the   same   or   during   any   delays,  storage,
29    transshipment,  or  reshipment  incident  thereto,  including
30    marine builder's risks  and  all  personal  property  floater
31    risks;  and  for  loss  or  damage  to persons or property in
32    connection with or appertaining  to  marine,  inland  marine,
33    transit  or transportation insurance, including liability for
34    loss of or damage to either arising out of or  in  connection
                            -8-                LRB9011659JSgc
 1    with the construction, repair, operation, maintenance, or use
 2    of  the  subject matter of such insurance, (but not including
 3    life insurance  or  surety  bonds);  but,  except  as  herein
 4    specified,  shall  not mean insurances against loss by reason
 5    of bodily injury to the person; and insurance against loss or
 6    damage to precious stones, jewels, jewelry, gold, silver  and
 7    other  precious  metals  whether used in business or trade or
 8    otherwise and whether the same be in course of transportation
 9    or otherwise, which shall include jewelers' block  insurance;
10    and  insurance against loss or damage to bridges, tunnels and
11    other instrumentalities of transportation  and  communication
12    (excluding  buildings, their furniture and furnishings, fixed
13    contents and supplies held in storage) unless fire,  tornado,
14    sprinkler  leakage,  hail,  explosion,  earthquake,  riot and
15    civil commotion are the only hazards to be  covered;  and  to
16    piers, wharves, docks and slips, excluding the risks of fire,
17    tornado, sprinkler leakage, hail, explosion, earthquake, riot
18    and  civil  commotion;  and  to  other aids to navigation and
19    transportation, including  dry  docks  and  marine  railways,
20    against all risk.
21        (e)  Vehicle.   Insurance   against   loss  or  liability
22    resulting from or incident to the ownership,  maintenance  or
23    use  of  any  vehicle  (motor  or otherwise), draft animal or
24    aircraft, excluding the liability  of  the  insured  for  the
25    death, injury or disability of another person.
26        (f)  Property   damage,   sprinkler   leakage  and  crop.
27    Insurance against the liability of the insured  for  loss  or
28    damage  to  another  person's  property or property interests
29    from any cause enumerated in this  class;  insurance  against
30    loss or damage by water entering through leaks or openings in
31    buildings,  or  from  the breakage or leakage of a sprinkler,
32    pumps,  water  pipes,  plumbing  and  all  tanks,  apparatus,
33    conduits  and  containers  designed  to  bring   water   into
34    buildings  or  for  its  storage  or  utilization therein, or
                            -9-                LRB9011659JSgc
 1    caused by the falling of a tank, tank platform or supports or
 2    against loss or damage from any  cause  to  such  sprinklers,
 3    pumps,  water  pipes, plumbing, tanks, apparatus, conduits or
 4    containers; insurance against loss or  damage  from  insects,
 5    diseases or other causes to trees, crops or other products of
 6    the soil.
 7        (g)  Other  fire  and marine risks. Insurance against any
 8    other property risk not otherwise specified under  Classes  1
 9    or  2, which may lawfully be the subject of insurance and may
10    properly be classified under Class 3.
11        (h)  Contingent  losses.  Contingent,  consequential  and
12    indirect coverages wherein the proximate cause of the loss is
13    attributable to any of the causes enumerated under  Class  3.
14    Such  coverages  shall, for the purpose of classification, be
15    included in the specific grouping of the kinds  of  insurance
16    wherein such cause is specified.
17        (i)  Legal  expense  insurance.   Insurance  against risk
18    resulting from the cost of legal services  as  defined  under
19    Class 1(c).
20    (Source: P.A. 88-364.)
21        Section  99.  Effective date.  This Act takes effect upon
22    becoming law.

[ Top ]