94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0032


 
Introduced 1/26/2005, by Sen. Susan Garrett
 
SYNOPSIS AS INTRODUCED:
 		














215 ILCS 5/351A-8
  from Ch. 73, par. 963A-8







    Amends the Illinois Insurance Code.  Requires long-term care insurers to include a statement in an outline of coverage that premiums may be subject to monetary increases during the time that the policy is in force and that directs the applicant to read and understand any reservation in the policy that may cause the premium to change. Effective immediately.
















LRB094 04163 LJB 34185 b

















 


 


A BILL FOR









 











SB0032

LRB094 04163 LJB 34185 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 351A-8 as follows:
 



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    (215 ILCS 5/351A-8)  (from Ch. 73, par. 963A-8)



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    Sec. 351A-8. Outline of coverage. 

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    (a) An outline of coverage shall be delivered to a 
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prospective applicant
for long-term care insurance at the time 
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of initial solicitation through
means which prominently direct 
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the attention of the recipient to the
document and its purpose.


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        (1) The Director shall prescribe a standard format  
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    including style,
arrangement and overall appearance and 
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    the content of an outline of coverage.


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        (2) In the case of agent solicitations, an agent must 
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    deliver the
outline of coverage prior to the presentation 
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    of an application or enrollment form.


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        (3) In the case of direct response solicitations, the 
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    outline of
coverage must be presented in conjunction with 
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    any application or enrollment form.

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    (b) The outline of coverage shall include:


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        (1) A description of the principal benefits and 
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    coverage provided in the policy.


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        (2) A statement of the principal exclusions, 
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    reductions and limitations
contained in the policy.


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        (3) A statement of the terms under which the policy or 
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    certificate, or
both, may be continued in force or 
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    discontinued, including any reservation
in the policy of a 
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    right to change premium.  Continuation or conversion

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    provisions of group coverage shall be specifically 
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    described.


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        (4) A statement that the outline of coverage is a 
 


 






SB0032
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LRB094 04163 LJB 34185 b




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    summary only, not a
contract of insurance, and that the 
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    policy or group master policy contain
governing 
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    contractual provisions.


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        (5) A description of the terms under which the policy 
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    or certificate may
be returned and premium refunded.


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        (6) A brief description of the relationship of cost of 
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    care and benefits.


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        (7) A statement that discloses to the policyholder or 
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    certificate
holder whether the policy is intended to be a 
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    federally tax-qualified long-term
care insurance contract 
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    under 7702B(b) of the Internal Revenue Code of 1986, as

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    amended.
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        (8) A statement that informs the applicant that 
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    premiums may be subject to monetary increases during the 
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    time  the policy is in force. The statement shall be 
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    displayed in not less than 12-point bold face type and 
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    shall direct the applicant to read and understand any 
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    reservation in the policy that may cause the premium to 
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    change.


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(Source: P.A. 92-148, eff. 7-24-01.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.