Public Act 094-0858
 
SB2375 Enrolled LRB094 17360 LJB 52655 b

    AN ACT concerning insurance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Insurance Code is amended by
changing Section 367f as follows:
 
    (215 ILCS 5/367f)  (from Ch. 73, par. 979f)
    Sec. 367f. Firemen's continuance privilege. As used in this
Section:
    1. The terms "municipality", "deferred pensioner" and
"creditable service" shall have the meaning ascribed to such
terms by Sections 4-103, 4-105a and 4-108, respectively, of the
Illinois Pension Code, as now or hereafter amended.
    2. The terms "fireman" and "firemen" shall have the meaning
ascribed to the term "firefighter" by Section 4-106 of the
Illinois Pension Code, and include those persons under the
coverage of Article 4 of that Code, as heretofore or hereafter
amended.
    3. The "retirement or disability period" of a fireman means
the period:
        a. which begins on the day the fireman is removed from
    a municipality's fire department payroll because of the
    occurrence of any of the following events, to wit: (i) the
    fireman retires as a deferred pensioner under Section
    4-105a of the Illinois Pension Code, (ii) the fireman
    retires from active service as a fireman with an attained
    age and accumulated creditable service which together
    qualify the fireman for immediate receipt of retirement
    pension benefits under Section 4-109 of the Illinois
    Pension Code, or (iii) the fireman's disability is
    established under Section 4-112 of the Illinois Pension
    Code; and
        b. which ends on the first to occur of any of the
    following events, to wit: (i) the fireman's reinstatement
    or reentry into active service on the municipality's fire
    department as provided for under Article 4 of the Illinois
    Pension Code, (ii) the fireman's exercise of any refund
    option available under Section 4-116 of the Illinois
    Pension Code, (iii) the fireman's loss pursuant to Section
    4-138 of the Illinois Pension Code of any benefits provided
    for in Article 4 of that Code, or (iv) the fireman's death
    or -- if at the time of the fireman's death the fireman is
    survived by a spouse who, in that capacity, is entitled to
    receive a surviving spouse's monthly pension pursuant to
    Article 4 of the Illinois Pension Code -- then the death or
    remarriage of that spouse.
    No policy of group accident and health insurance under
which firemen employed by a municipality are insured for their
individual benefit shall be issued or delivered in this State
to any municipality unless such group policy provides for the
election of continued group insurance coverage for the
retirement or disability period of each fireman who is insured
under the provisions of the group policy on the day immediately
preceding the day on which the retirement or disability period
of such fireman begins. So long as any required premiums for
continued group insurance coverage are paid in accordance with
the provisions of the group policy, an election made pursuant
to this Section shall provide continued group insurance
coverage for a fireman throughout the retirement or disability
period of the fireman and, unless the fireman otherwise elects
and subject to any other provisions of the group policy which
relate either to the provision or to the termination of
dependents' coverage and which are not inconsistent with this
Section, for any dependents of the fireman who are insured
under the group policy on the day immediately preceding the day
on which the retirement or disability period of the fireman
begins; provided, however, that when such continued group
insurance coverage is in effect with respect to a fireman on
the date of the fireman's death but the retirement or
disability period of the fireman does not end with such
fireman's death, then the deceased fireman's surviving spouse
upon whose death or remarriage such retirement or disability
period will end shall be entitled, without further election and
upon payment of any required premiums in accordance with the
provisions of the group policy, to maintain such continued
group insurance coverage in effect until the end of such
retirement or disability period. Continued group insurance
coverage shall be provided in accordance with this Section at
the same premium rate from time to time charged for equivalent
coverage provided under the group policy with respect to
covered firemen whose retirement or disability period has not
begun, and no distinction or discrimination in the amount or
rate of premiums or in any waiver of premium or other benefit
provision shall be made between continued group insurance
coverage elected pursuant to this Section and equivalent
coverage provided to firemen under the group policy other than
pursuant to the provisions of this Section; provided that no
municipality shall be required by reason of any provision of
this Section to pay any group insurance premium other than one
that may be negotiated in a collective bargaining agreement. If
a person electing continued coverage under this Section becomes
eligible for medicare coverage, benefits under the group policy
may continue as a supplement to the medicare coverage upon
payment of any required premiums to maintain the benefits of
the group policy as supplemental coverage.
    Within 15 days of the beginning of the retirement or
disability period of any fireman entitled to elect continued
group insurance coverage under any group policy affected by
this Section, the municipality last employing such fireman
shall give written notice of such beginning by certified mail,
return receipt requested to the insurance company issuing such
policy. The notice shall include the fireman's name and last
known place of residence and the beginning date of the
fireman's retirement or disability period.
    Within 15 days of the date of receipt of such notice from
the municipality, the insurance company by certified mail,
return receipt requested, shall give written notice to the
fireman at the fireman's last known place of residence that
coverage under the group policy may be continued for the
retirement or disability period of the fireman as provided in
this Section. Such notice shall set forth: (i) a statement of
election to be filed by the fireman if the fireman wishes to
continue such group insurance coverage, (ii) the amount of
monthly premium, including a statement of the portion of such
monthly premium attributable to any dependents' coverage which
the fireman may elect, and (iii) instructions as to the return
of the election form to the insurance company issuing such
policy. Election shall be made, if at all, by returning the
statement of election to the insurance company by certified
mail, return receipt requested within 15 days after having
received it.
    If the fireman elects to continue coverage, it shall be the
obligation of the fireman to pay the monthly premium directly
to the municipality which shall forward it to the insurance
company issuing the group insurance policy, or as otherwise
directed by the insurance company; provided, however, that the
fireman shall be entitled to designate on the statement of
election required to be filed with the insurance company that
the total monthly premium, or such portion thereof as is not
contributed by a municipality, be deducted by a Firefighter's
Pension Fund from any monthly pension payment otherwise payable
to or on behalf of the fireman pursuant to Article 4 of the
Illinois Pension Code, and be remitted by such Pension Fund to
the insurance company. The portion, if any, of the monthly
premium contributed by a municipality for such continued group
insurance coverage shall be paid by the municipality directly
to the insurance company issuing the group insurance policy, or
as otherwise directed by the insurance company. Such continued
group insurance coverage shall relate back to the beginning of
the fireman's retirement or disability period.
    The amendment, renewal or extension of any group insurance
policy affected by this Section shall be deemed to be the
issuance of a new policy of insurance for purposes of this
Section.
    In the event that a municipality makes a program of
accident, health, hospital or medical benefits available to its
firemen through self-insurance, or by participation in a pool
or reciprocal insurer, or by contract in a form other than a
policy of group insurance with one or more medical service
plans, health care service corporations, health maintenance
organizations, or any other professional corporations or plans
under which health care or reimbursement for the costs thereof
is provided, whether the cost of such benefits is borne by the
municipality or the firemen or both, such firemen and their
surviving spouses shall have the same right to elect continued
coverage under such program of benefits as they would have if
such benefits were provided by a policy of group accident and
health insurance. In such cases, the notice of right to elect
continued coverage shall be sent by the municipality; the
statement of election shall be sent to the municipality; and
references to the required premium shall refer to that portion
of the cost of such benefits which is not borne by the
municipality, either voluntarily or pursuant to the provisions
of a collective bargaining agreement. In the case of a
municipality providing such benefits through self-insurance or
participation in a pool or reciprocal insurer, the right to
elect continued coverage which is provided by this paragraph
shall be implemented and made available to the firemen of the
municipality and qualifying surviving spouses not later than
July 1, 1985.
    The amendment, renewal or extension of any such contract in
a form other than a policy of group insurance policy shall be
deemed the formation of a new contract for the purposes of this
Section.
    This Section shall not limit the exercise of any conversion
privileges available under Section 367e.
    Pursuant to paragraphs (h) and (i) of Section 6 of Article
VII of the Illinois Constitution, this Section specifically
denies and limits the exercise by a home rule unit of any power
which is inconsistent with this Section and all existing laws
and ordinances which are inconsistent with this Section are
hereby superseded. This Section does not preempt the concurrent
exercise by home rule units of powers consistent herewith.
    The Division of Insurance of the Department of Financial
and Professional Regulation shall enforce the provisions of
this Section, including provisions relating to municipality
self-insured benefit plans.
(Source: P.A. 86-1444.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.