Senate Sponsors: MADIGAN,R. House Sponsors: FLOWERS-DART-SCOTT-SAVIANO-DEUCHLER Short description: INS CD-PREMIUM REFUND-TECH Synopsis of Bill as introduced: Amends the Illinois Insurance Code. Adds a caption to a Section concerning the refund of unearned premium upon death of the insured. SENATE AMENDMENT NO. 1. Deletes reference to: 215 ILCS 5/357.31 Adds reference to: 215 ILCS 5/35A-5 215 ILCS 5/35A-20 215 ILCS 5/35A-35 215 ILCS 5/107.06a from Ch. 73, par. 719.06a 215 ILCS 5/107.26 from Ch. 73, par. 719.26 215 ILCS 5/111 from Ch. 73, par. 723 215 ILCS 5/121-2.08 from Ch. 73, par. 733-2.08 215 ILCS 5/123C-1 from Ch. 73, par. 735C-1 215 ILCS 5/126.2 215 ILCS 5/143 from Ch. 73, par. 755 215 ILCS 5/191 from Ch. 73, par. 803 215 ILCS 5/445 from Ch. 73, par. 1057 215 ILCS 5/445a new 215 ILCS 5/3.1 rep. 215 ILCS 110/35 from Ch. 32, par. 690.35 215 ILCS 120/4 from Ch. 73, par. 1254 215 ILCS 120/12 from Ch. 73, par. 1262 215 ILCS 165/20 from Ch. 32, par. 614 Replaces the title and everything after the enacting clause. Amends the Illinois Insurance Code in relation to the regulation of company finances. Revises the definition of "qualified business entity" with respect to lending arrangements by domestic captive companies. Invalidates possessory liens held by an attorney as a basis for withholding files or otherwise with respect to a company in rehabilitation or liquidation. Provides for the existence of domestic surplus lines insurers. Requires reports to the Director regarding fire insurance procured only from unauthorized insurers subject to tax under the Fire Investigation Act. Excludes limited syndicates organized as partnerships from certain provisions of the Illinois Insurance Code. Changes the name of the Illinois Insurance Exchange Immediate Access Security Association to the Immediate Access Security Association. Provides that the Association will pay insurance obligations on claims rather than liability based on claims. Amends the Dental Service Plan Act and the Voluntary Health Services Plans Act to limit certain contingent reserves to $1,500,000. Amends the Farm Mutual Insurance Company Act of 1986 to authorize additional investment opportunities. Effective immediately except that provisions amending the Farm Mutual Insurance Company Act take effect January 1, 1999. SENATE AMENDMENT NO. 2. Adds reference to: 215 ILCS 113/10 215 ILCS 113/15 215 ILCS 113/20 215 ILCS 113/25 215 ILCS 113/30 215 ILCS 113/40 215 ILCS 113/50 215 ILCS 113/56 new 215 ILCS 113/35 rep. 215 ILCS 113/55 rep. Amends the Employee Leasing Company Act. Provides that the Act applies to lessors of employees and insurers. Imposes record keeping requirements upon lessors of employees. Changes terminology for "employee leasing company" to "lessor" and "client company" to "lessee". Specifically grants the Department of Insurance rulemaking authority. Establishes specific grounds for revocation or denial of registration. Abolishes all criminal penalties. SENATE AMENDMENT NO. 4. Deletes reference to: 215 ILCS 5/3.1 rep. Deletes provision repealing Section of the Illinois Insurance Code defining the term "admitted assets" with respect to insurance companies. HOUSE AMENDMENT NO. 5. Adds reference to: New Act 5 ILCS 375/6.12 new 20 ILCS 1405/56.3 new 20 ILCS 1405/56.4 new 20 ILCS 1405/56.5 new 20 ILCS 1405/56.6 new 20 ILCS 1405/56.7 new 30 ILCS 105/5.480 new 30 ILCS 805/8.22 new 55 ILCS 5/5-1069.8 new 65 ILCS 5/10-4-2.8 new 105 ILCS 5/10-22.3g new 215 ILCS 125/2-2 from Ch. 111 1/2, par. 1404 215 ILCS 125/6-7 from Ch. 111 1/2, par. 1418.7 Creates the Managed Care Reform Act. Specifies information that must be disclosed by a managed care plan. Establishes a multi-level grievance procedure and also provides for an independent external review. Requires a managed care plan to maintain a grievance register. Requires managed care plans to be certified by the Director of Public Health with respect to adequacy of provider networks. Authorizes the Department of Public Health to impose civil penalties. Establishes a process, including hearing, for termination of a health care provider. Requires managed care plans to report to professional disciplinary agencies. Provides for the registration of utilization service agents. Establishes utilization review program standards. Provides that health insurance carriers, health care plans, and other managed care entities for health care plans have the duty to exercise ordinary care when making health care treatment decisions and are liable for damages for harm to an insured or enrollee proximately caused by the failure to exercise ordinary care. Authorizes a private right of action. Defines terms. Applies only to causes of action that accrue on or after the effective date of the Act. Provides that the Section of the bill establishing health care entity liability does not apply to actions seeking review of adverse utilization review determinations. Amends the Civil Administrative Code of Illinois to establish the Office of Health Care Consumer Assistance, Advocacy, and Information. Removes provisions in the Health Maintenance Organization Act concerning that Office. Establishes a Managed Care Ombudsman Program to be a part of the Office of Health Care Consumer Assistance, Advocacy, and Information. Amends the State Finance Act to create the Managed Care Entity Responsibility and Patients Rights Fund. Amends the State Mandates Act to require implementation without reimbursement. Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, and the School Code to impose the requirements of the Managed Care Reform Act upon the provision of health care under those Acts. Amends the Health Maintenance Organization Act to provide for 2 public members to be appointed to the Health Maintenance Organization Guaranty Association Board. The Sections of the bill relating to risk-based capital, insurance syndicates, surplus lines insurance, and authorized investments take effect upon becoming law; provisions relating to farm mutual companies take effect January 1, 1999; and provisions relating to managed care reform take effect July 1, 1999. CORRECTIONAL NOTE, H-AM 5 No corrections population or fiscal impact on DOC. FISCAL NOTE, H-AM 5 (Dpt. Public Health) An estimated $700,000 to $1 million would be needed. JUDICIAL NOTE, H-AM 5 No decrease or increase in the need for the number of judges. FISCAL NOTE (Dpt. Insurance) No fiscal impact on the Department. FISCAL NOTE, H-AM 5 (Dpt. Insurance) Costs for the Office of Health Care Consumer Assistance, Advo- cacy and Information and the Managed Care Ombudsman Program could easily exceed $250,000 annually. STATE MANDATES ACT FISCAL NOTE, H-AM 5 Creates a "personnel mandate" which normally requires 100% reimbursement. The bill contains an exemption from the State Mandates Act. HOME RULE NOTE, H-AM 5 Preempts home rule authority. HOUSE AMENDMENT NO. 6. Removes authority of the Department of Insurance to make assessments to fund the Managed Care Ombudsman Program. STATE MANDATES ACT FISCAL NOTE, H-AM 6 No change from mandates note, H-am 5. HOME RULE NOTE, H-AM 6 No change from home rule note, H-am 5. FISCAL NOTE, H-AM 6 (Dpt. of Insurance) No change from previous fiscal note. CORRECTIONAL NOTE, H-AM 6 No change from previous correctional note. JUDICIAL NOTE, H-AM 6 No change from previous judicial note. BALANCED BUDGET NOTE, H-AMS 5 & 6 SB 1904 does not authorize, increase, decrease or reallocate any general funds appropriation for fiscal year 1998. HOUSING AFFORDABILITY NOTE, H-AM 6 No direct fiscal effect on a single-family residence. Last action on Bill: SESSION SINE DIE Last action date: 99-01-12 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 3 END OF INQUIRY Full Text Bill Status