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HB0650 Engrossed |
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LRB096 03399 RPM 13422 b |
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| AN ACT concerning insurance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by |
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| changing Section 367f as follows:
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| (215 ILCS 5/367f) (from Ch. 73, par. 979f)
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| Sec. 367f. Firemen's continuance privilege. As used in this |
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| Section:
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| 1. The terms "municipality", "deferred pensioner" and |
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| "creditable service"
shall have the meaning ascribed to such |
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| terms by Sections 4-103, 4-105a and
4-108, respectively, of the |
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| Illinois Pension Code, as now or hereafter amended.
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| 2. The terms "fireman" and "firemen" shall have the meaning |
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| ascribed
to the term "firefighter" by Section 4-106 of the |
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| Illinois
Pension Code, and include those persons under the |
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| coverage of Article 4 of
that Code, as heretofore or hereafter |
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| amended.
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| 3. The "retirement or disability period" of a fireman means |
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| the period:
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| a. which begins on the day the fireman is removed from |
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| a municipality's
fire department payroll because of the |
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| occurrence of any of the following
events, to wit: (i) the |
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| fireman retires as a deferred pensioner under Section
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| 4-105a of the Illinois Pension Code, (ii) the fireman |
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| retires from active
service as a fireman with an attained |
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| age and accumulated creditable service
which together |
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| qualify the fireman for immediate receipt of retirement |
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| pension
benefits under Section 4-109 of the Illinois |
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| Pension Code, or (iii) the
fireman's disability is |
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| established under Section 4-112 of the Illinois
Pension |
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| Code; and
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| b. which ends on the first to occur of any of the |
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| following events,
to wit: (i) the fireman's reinstatement |
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| or reentry into active service
on the municipality's fire |
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| department as provided for under Article 4 of
the Illinois |
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| Pension Code, (ii) the fireman's exercise of any refund |
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| option
available under Section 4-116 of the Illinois |
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| Pension Code, (iii) the fireman's
loss pursuant to Section |
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| 4-138 of the Illinois Pension Code of any benefits
provided |
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| for in Article 4 of that Code, or (iv) the fireman's death |
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| or --
if at the time of the fireman's death the fireman is |
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| survived by a spouse
who, in that capacity, is entitled to |
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| receive a surviving spouse's monthly
pension pursuant to |
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| Article 4 of the Illinois Pension Code -- then the death
or |
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| remarriage of that spouse ; and .
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| c. during which, notwithstanding subsections 3a or 3b |
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| of this Section, the disabled or retired fireman, if not |
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| enrolled in the municipal group insurance plan at the time |
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| of disability or retirement, may elect to enroll in the |
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| municipal group insurance plan during an open enrollment |
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| period; the disabled or retired fireman, if not enrolled
in |
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| the municipal group insurance plan at the time of
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| disability or retirement, may elect to enroll in the |
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| municipal group insurance plan during an open enrollment |
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| period but not after the fireman becomes eligible for |
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| federal Medicare coverage and not more than once; the |
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| fireman must be insurable and must pay the cost of the |
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| insurance premium at a rate set in accordance with this |
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| Code in order to reenter the municipal group insurance |
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| plan. |
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| No policy of group accident and health insurance under |
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| which firemen
employed by a municipality are insured for their |
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| individual benefit shall
be issued or delivered in this State |
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| to any municipality unless such group
policy provides for the |
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| election of continued group insurance coverage for
the |
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| retirement or disability period of each fireman or an election |
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| exercised under subsection 3c of this Section during any open |
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| enrollment period who is insured under the
provisions of the |
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| group policy on the day immediately preceding the day
on which |
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| the retirement or disability period of such fireman begins . So
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| long as any required premiums for continued group insurance |
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| coverage are
paid in accordance with the provisions of the |
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| group policy, an election
made pursuant to this Section shall |
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| provide continued group insurance
coverage for a fireman |
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| throughout the retirement or disability period of
the fireman |
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| and, unless the fireman otherwise elects and subject to any
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| other provisions of the group policy which relate either to the |
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| provision
or to the termination of dependents' coverage and |
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| which are not
inconsistent with this Section, for any |
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| dependents of the fireman who are
insured under the group |
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| policy on the day immediately preceding the day on
which the |
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| retirement or disability period of the fireman begins ; |
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| provided,
however, that when such continued group insurance |
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| coverage is in effect
with respect to a fireman on the date
of |
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| the fireman's death but the retirement or disability period of |
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| the fireman
does not end with such fireman's death, then the |
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| deceased fireman's surviving
spouse upon whose death or |
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| remarriage such retirement or disability period
will end shall |
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| be entitled, without further election and upon payment of
any |
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| required premiums in accordance with the provisions of the |
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| group policy,
to maintain such continued group
insurance |
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| coverage in effect until the end of such retirement or |
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| disability
period. Continued group insurance coverage shall be |
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| provided in accordance
with this Section at the same premium |
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| rate from time to time charged for
equivalent coverage provided |
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| under the group policy with respect to covered
firemen whose |
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| retirement or disability period has not begun, and no |
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| distinction
or discrimination in the amount or rate of premiums |
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| or in any waiver of premium
or other benefit provision shall be |
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| made between continued group insurance
coverage elected |
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| pursuant to this Section and equivalent coverage provided
to |
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| firemen under the group policy other than pursuant to the |
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| provisions
of this Section; provided that no municipality shall |
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| be required by reason
of any provision of this Section to pay |
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| any group insurance premium other
than one that may be |
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| negotiated in a collective bargaining agreement.
If a person |
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| electing continued coverage under this Section becomes
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| eligible for medicare coverage, benefits under the group policy |
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| may
continue as a supplement to the medicare coverage upon |
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| payment of any
required premiums to maintain the benefits of |
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| the group policy as
supplemental coverage.
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| Within 15 days of the beginning of the retirement or |
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| disability period
of any fireman entitled to elect continued |
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| group insurance coverage under any
group policy affected by |
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| this Section, the municipality last employing such
fireman |
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| shall give written notice of such beginning by certified mail, |
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| return
receipt requested to the insurance company issuing such |
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| policy. The notice
shall include the fireman's name and last |
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| known place of residence and the
beginning date of the |
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| fireman's retirement or disability period.
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| Within 15 days of the date of receipt of such notice from |
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| the municipality,
the insurance company by certified mail, |
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| return receipt requested, shall
give written notice to the |
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| fireman at the fireman's last known place of
residence that |
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| coverage under the group policy may be continued for the
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| retirement or disability period of the fireman as provided in |
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| this Section.
Such notice shall set forth: (i) a statement of |
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LRB096 03399 RPM 13422 b |
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| election to be filed by
the fireman if the fireman wishes to |
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| continue such group insurance coverage,
(ii) the amount of |
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| monthly premium, including a statement of the portion
of such |
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| monthly premium attributable to any dependents' coverage which |
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| the
fireman may elect, and (iii) instructions as to the return |
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| of the election
form to the insurance company issuing such |
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| policy. Election shall be made,
if at all, by returning the |
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| statement of election to the insurance company by
certified |
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| mail, return receipt requested within 15 days after having |
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| received it.
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| If the fireman elects to continue coverage, it shall be the |
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| obligation
of the fireman to pay the monthly premium directly |
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| to the municipality which
shall forward it to the insurance |
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| company
issuing the group insurance policy, or as otherwise |
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| directed by the insurance
company; provided, however, that the |
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| fireman shall be entitled to designate
on the statement of |
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| election required to be filed with the insurance company
that |
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| the total monthly premium, or such portion thereof as is not
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| contributed by a municipality, be deducted by a Firefighter's |
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| Pension
Fund from any monthly pension payment otherwise payable
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| to or on behalf of the fireman pursuant to Article 4 of the |
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| Illinois Pension
Code, and be remitted by such Pension Fund to |
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| the insurance company. The
portion, if any, of the monthly |
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| premium contributed by a
municipality for such continued group |
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| insurance coverage shall be paid by
the municipality directly |
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| to the insurance company issuing the group insurance
policy, or |
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| as otherwise directed by the insurance company. Such continued
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| group insurance coverage shall relate back to the beginning of |
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| the fireman's
retirement or disability period.
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| The amendment, renewal or extension of any group insurance |
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| policy affected
by this Section shall be deemed to be the |
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| issuance of a new policy of insurance
for purposes of this |
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| Section.
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| In the event that a municipality makes a program of |
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| accident, health,
hospital or medical benefits available to its |
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| firemen through
self-insurance, or by participation in a pool |
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| or reciprocal insurer, or by
contract in a form other than a |
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| policy of group insurance with one or more
medical service |
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| plans, health care service corporations, health maintenance
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| organizations, or any other professional corporations or plans |
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| under which
health care or reimbursement for the costs thereof |
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| is
provided, whether the cost of such benefits is borne by the |
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| municipality or
the firemen or both, such firemen and their |
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| surviving spouses shall have
the same right to elect continued |
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| coverage under such program of benefits
as they would have if |
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| such benefits were provided by a policy of group
accident and |
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| health insurance. In such cases, the notice of right to elect
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| continued coverage shall be sent by the municipality; the |
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| statement of
election shall be sent to the municipality; and |
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| references to the required
premium shall refer to that portion |
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| of the cost of such benefits which is not
borne by the |
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| municipality, either voluntarily or pursuant to the provisions
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HB0650 Engrossed |
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LRB096 03399 RPM 13422 b |
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| of a collective bargaining agreement. In the case of a |
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| municipality
providing such benefits through self-insurance or |
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| participation in a pool or
reciprocal insurer, the right to |
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| elect continued coverage which is provided
by this paragraph |
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| shall be implemented and made available to the firemen of
the |
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| municipality and qualifying surviving spouses not later than |
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| July 1, 1985.
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| The amendment, renewal or extension of any such contract in |
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| a form other
than a policy of group insurance policy shall be |
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| deemed the formation of a
new contract for the purposes of this |
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| Section.
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| This Section shall not limit the exercise of any conversion |
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| privileges
available under Section 367e.
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| Pursuant to paragraphs (h) and (i) of Section 6 of Article |
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| VII of the
Illinois Constitution, this Section specifically |
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| denies and limits the
exercise by a home rule unit of any power |
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| which is inconsistent with this
Section and all existing laws |
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| and ordinances which are inconsistent with
this Section are |
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| hereby superseded. This Section does not preempt the
concurrent |
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| exercise by home rule units of powers consistent herewith. |
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| The Division of Insurance of the Department of Financial |
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| and Professional Regulation shall enforce the provisions of |
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| this Section, including provisions relating to municipality |
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| self-insured benefit plans.
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| (Source: P.A. 94-858, eff. 6-15-06.)
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| Section 99. Effective date. This Act takes effect upon |