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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 Illinois Insurance Code is amended by
5changing Section 511.101 as follows:
 
6    (215 ILCS 5/511.101)  (from Ch. 73, par. 1065.58-101)
7    (Section scheduled to be repealed on January 1, 2027)
8    Sec. 511.101. Definitions. For the purpose of this Article:
9    (a) "Administrator" means any person who on behalf of a
10plan sponsor or insurer receives or collects charges,
11contributions or premiums for, or adjusts or settles claims on
12residents of this State in connection with any type of life or
13accident or health benefit provided through or as an
14alternative to insurance within the scope of Class 1(a), 1(b)
15or 2(a) of Section 4 of this the Illinois Insurance Code, other
16than any of the following:
17        (1) A corporation, association, trust or partnership
18    which is administering a plan (i) on behalf of the
19    employees of such corporation, association, trust or
20    partnership or (ii) for the employees of one or more
21    subsidiaries or affiliated corporations or affiliated
22    associations, trusts or partnerships;
23        (2) A union administering a plan for its members;

 

 

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1        (3) A plan sponsor administering its own plan;
2        (4) An insurer or dental service plan to the extent
3    regulated by this the Illinois Insurance Code;
4        (5) A producer licensed in this State whose insurance
5    activities are limited to the scope of such license;
6        (6) A trust and its trustees and employees acting
7    pursuant to its trust agreement established in conformity
8    with 29 U.S.C. 186;
9        (7) A person who adjusts or settles claims in the
10    normal course of such person's practice or employment as an
11    attorney-at-law, and who does not collect contributions or
12    premiums in connection with life or accident or health
13    coverage;
14        (8) A person who administers only self-insured
15    workers' compensation plans, or single employer self
16    insured life or accident or health benefit plans;
17        (9) A credit card issuing company which advances for
18    and collects premiums or charges from its credit card
19    holders who have authorized such collection, if such
20    company does not adjust or settle claims;
21        (10) A creditor on behalf of its debtors with respect
22    to insurance covering a debt between the creditor and its
23    debtors.
24    (b) "Covered Individual" means any individual eligible for
25life or accident or health benefits under a plan.
26    (c) "Contributions" means any money charged a covered

 

 

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1individual, plan sponsor or other entity to fund the
2self-insured portion of any plan in accordance with written
3provisions of the plan or contracts of insurance. Contributions
4shall include administrative fees charged to a covered
5individual. Administrative fee means any compensation paid by a
6covered individual for services performed by the
7administrator.
8    (d) "Premiums" means any money charged a covered
9individual, plan sponsor or other entity to provide life or
10accident or health insurance under a plan. The term premium
11shall include amounts paid by or charged to a covered
12individual plan sponsor or other entity for stop loss or excess
13insurance.
14    (e) "Charges" means any compensation paid by a plan sponsor
15or insurer for services performed by the administrator.
16    (f) "Administrator Trust Fund", hereinafter referred to as
17"ATF", means a special fiduciary account established and
18maintained by an administrator pursuant to Section 511.112 in
19which contributions and premiums are deposited.
20    (g) "Claims Administration Services Account", hereinafter
21referred to as "CASA", means a special fiduciary account
22established and maintained by an administrator pursuant to
23Section 511.112 of this Code from which claims and claims
24adjustment expenses are disbursed.
25    (h) "Plan Sponsor" means any person other than an insurer,
26who establishes or maintains a plan covering residents of this

 

 

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1State, including but not limited to plans established or
2maintained by 2 or more employers or jointly by one or more
3employers and one or more employee organizations, the
4association, committee, joint board of trustees, or other
5similar group of representatives of the parties who establish
6or maintain the plan.
7    Provided, however, that "Plan Sponsor" shall not include:
8        (1) The employer in the case of a plan established or
9    maintained by a single employer; or
10        (2) The employee organization in the case of a plan
11    established or maintained by an employee organization.
12    No plan sponsor covered in whole by provisions of the
13Employee Retirement Income Security Act of 1974 (ERISA) shall
14be covered by any of the provisions of this Act to the extent
15that such provisions are inconsistent with or in conflict with
16any provisions of ERISA as now or hereafter amended.
17    (i) "Financial Institution" means any federal or state
18chartered bank or savings and loan institution which is insured
19by the Federal Deposit Insurance Corporation (FDIC) or the
20Federal Savings and Loan Insurance Corporation (FSLIC).
21    (j) "Plan" means any plan, fund or program established or
22maintained by a plan sponsor or insurer to the extent that such
23plan, fund or program was established or is maintained to
24provide through insurance or alternatives to insurance any type
25of life or accident or health benefit within the scope of Class
261(a), 1(b) or 2(a) of Section 4 of the Illinois Insurance Code.

 

 

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1    (k) "Insurer" means any person who transacts insurance or
2health care service business authorized under the laws of this
3State.
4    (l) "Quasi-resident" means a nonresident licensee who
5produces 50% or more of his contributions and premium volume
6during a calendar year from residents of this State.
7(Source: P.A. 84-1431.)