101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2042

 

Introduced , by Rep. Grant Wehrli

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 190/10

    Amends the Short-Term, Limited-Duration Health Insurance Coverage Act. Provides that a short-term, limited-duration health insurance coverage policy must have an expiration date that is less than 366 days (rather than 181 days) and may be renewed or extended (rather than prohibiting a policy to be renewable or extendable within a period of 365 days after the individual's coverage under the policy ends). Effective immediately.


LRB101 04557 SMS 49565 b

 

 

A BILL FOR

 

HB2042LRB101 04557 SMS 49565 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Short-Term, Limited-Duration Health
5Insurance Coverage Act is amended by changing Section 10 as
6follows:
 
7    (215 ILCS 190/10)
8    Sec. 10. Application; scope; duration of coverage.
9    (a) This Act applies to health insurance issuers that offer
10short-term, limited-duration health insurance coverage to
11individuals in this State and to short-term, limited-duration
12health insurance coverage that is delivered or issued for
13delivery in this State, including coverage issued outside of
14this State that covers individuals in this State.
15    (b) A short-term, limited-duration health insurance
16coverage policy may not be issued or delivered to any person
17residing in this State unless the policy, when delivered or
18issued for delivery in this State, complies with the provisions
19of this Act.
20    (c) Any short-term, limited-duration health insurance
21coverage policy that is delivered or issued for delivery in
22this State must have an expiration date in the policy that is
23less than 366 181 days after the effective date and may be

 

 

HB2042- 2 -LRB101 04557 SMS 49565 b

1renewed or extended shall not be renewable or extendable within
2a period of 365 days after the individual's coverage under the
3policy ends, either at the option of the issuer or the
4individual. Renewal of a short-term, limited-duration health
5insurance coverage policy includes the issuance of a new
6short-term, limited-duration health insurance policy by an
7issuer to a policyholder within 60 days after the expiration of
8a policy previously issued by the issuer to the policyholder.
9    (d) Any short-term, limited-duration health insurance
10coverage policy that is delivered or issued for delivery in
11this State may not be rescinded before the expiration date in
12the policy, except in cases of nonpayment of premiums, fraud,
13or as provided in subsection (e).
14    (e) Any short-term, limited-duration health insurance
15coverage policy that is delivered or issued for delivery in
16this State shall contain an option for an individual to cancel
17coverage after any 30-day interval during the term of the plan.
18(Source: P.A. 100-1118, eff. 11-27-18.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.