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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The State Employees Group Insurance Act of 1971 | ||||||
5 | is amended by changing Section 6.11 as follows:
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6 | (5 ILCS 375/6.11)
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7 | Sec. 6.11. Required health benefits; Illinois Insurance | ||||||
8 | Code
requirements. The program of health
benefits shall provide | ||||||
9 | the post-mastectomy care benefits required to be covered
by a | ||||||
10 | policy of accident and health insurance under Section 356t of | ||||||
11 | the Illinois
Insurance Code. The program of health benefits | ||||||
12 | shall provide the coverage
required under Sections 356g.5,
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13 | 356u, 356w, 356x, 356z.2, 356z.4, 356z.6, and 356z.9, 356z.10, | ||||||
14 | 356z.11, and 356z.12 and
356z.9 of the
Illinois Insurance Code.
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15 | The program of health benefits must comply with Section 155.37 | ||||||
16 | of the
Illinois Insurance Code.
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17 | (Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07; | ||||||
18 | 95-520, eff. 8-28-07; revised 12-4-07.)
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19 | Section 10. The Counties Code is amended by changing | ||||||
20 | Section 5-1069.3 as follows: | ||||||
21 | (55 ILCS 5/5-1069.3)
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1 | Sec. 5-1069.3. Required health benefits. If a county, | ||||||
2 | including a home
rule
county, is a self-insurer for purposes of | ||||||
3 | providing health insurance coverage
for its employees, the | ||||||
4 | coverage shall include coverage for the post-mastectomy
care | ||||||
5 | benefits required to be covered by a policy of accident and | ||||||
6 | health
insurance under Section 356t and the coverage required | ||||||
7 | under Sections 356g.5, 356u,
356w, 356x, 356z.6, and 356z.9, | ||||||
8 | 356z.10, 356z.11, and 356z.12 and
356z.9 of
the Illinois | ||||||
9 | Insurance Code. The requirement that health benefits be covered
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10 | as provided in this Section is an
exclusive power and function | ||||||
11 | of the State and is a denial and limitation under
Article VII, | ||||||
12 | Section 6, subsection (h) of the Illinois Constitution. A home
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13 | rule county to which this Section applies must comply with | ||||||
14 | every provision of
this Section.
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15 | (Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07; | ||||||
16 | 95-520, eff. 8-28-07; revised 12-4-07.)
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17 | Section 15. The Illinois Municipal Code is amended by | ||||||
18 | changing Section 10-4-2.3 as follows: | ||||||
19 | (65 ILCS 5/10-4-2.3)
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20 | Sec. 10-4-2.3. Required health benefits. If a | ||||||
21 | municipality, including a
home rule municipality, is a | ||||||
22 | self-insurer for purposes of providing health
insurance | ||||||
23 | coverage for its employees, the coverage shall include coverage | ||||||
24 | for
the post-mastectomy care benefits required to be covered by |
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1 | a policy of
accident and health insurance under Section 356t | ||||||
2 | and the coverage required
under Sections 356g.5, 356u, 356w, | ||||||
3 | 356x, 356z.6, and 356z.9, 356z.10, 356z.11, and 356z.12 and
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4 | 356z.9 of the Illinois
Insurance
Code. The requirement that | ||||||
5 | health
benefits be covered as provided in this is an exclusive | ||||||
6 | power and function of
the State and is a denial and limitation | ||||||
7 | under Article VII, Section 6,
subsection (h) of the Illinois | ||||||
8 | Constitution. A home rule municipality to which
this Section | ||||||
9 | applies must comply with every provision of this Section.
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10 | (Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07; | ||||||
11 | 95-520, eff. 8-28-07; revised 12-4-07.)
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12 | Section 20. The School Code is amended by changing Section | ||||||
13 | 10-22.3f as follows: | ||||||
14 | (105 ILCS 5/10-22.3f)
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15 | Sec. 10-22.3f. Required health benefits. Insurance | ||||||
16 | protection and
benefits
for employees shall provide the | ||||||
17 | post-mastectomy care benefits required to be
covered by a | ||||||
18 | policy of accident and health insurance under Section 356t and | ||||||
19 | the
coverage required under Sections 356g.5, 356u, 356w, 356x,
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20 | 356z.6, and 356z.9 , 356z.11, and 356z.12 of
the
Illinois | ||||||
21 | Insurance Code.
| ||||||
22 | (Source: P.A. 95-189, eff. 8-16-07; 95-422, eff. 8-24-07; | ||||||
23 | revised 12-4-07.)
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1 | Section 25. The Illinois Insurance Code is amended by | ||||||
2 | adding Section 356z.11 and Section 356z.12 as follows: | ||||||
3 | (215 ILCS 5/356z.11 new) | ||||||
4 | Sec. 356z.11. Dependent students; medical leave of | ||||||
5 | absence. A group or individual policy of accident and health | ||||||
6 | insurance or managed care plan amended, delivered, issued, or | ||||||
7 | renewed after the effective date of this amendatory Act of the | ||||||
8 | 95th General Assembly must continue to provide coverage for a | ||||||
9 | dependent college student who takes a medical leave of absence | ||||||
10 | or reduces his or her course load to part-time status because | ||||||
11 | of a catastrophic illness or injury. | ||||||
12 | Continuation of coverage under this Section is subject to | ||||||
13 | all of the policy's terms and
conditions applicable to those | ||||||
14 | forms of insurance. Continuation of insurance under the policy | ||||||
15 | shall terminate 12 months after notice of the illness or injury | ||||||
16 | or until the coverage would have otherwise lapsed pursuant to | ||||||
17 | the terms and conditions of the policy, whichever comes first, | ||||||
18 | provided the need for part-time status or medical leave of | ||||||
19 | absence is supported by a clinical certification of need from a | ||||||
20 | physician licensed to practice medicine in all its branches. | ||||||
21 | The provisions of this Section do not apply to short-term | ||||||
22 | travel, accident-only, limited, or specified disease policies | ||||||
23 | or to policies or contracts designed for issuance to persons | ||||||
24 | eligible for coverage under Title XVIII of the Social Security | ||||||
25 | Act, known as Medicare, or any other similar coverage under |
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1 | State or federal governmental plans. | ||||||
2 | (215 ILCS 5/356z.12 new) | ||||||
3 | Sec. 356z.12. Dependent coverage. | ||||||
4 | (a) A group or individual policy of accident and health | ||||||
5 | insurance or managed care plan that provides coverage for | ||||||
6 | dependents and that is amended, delivered, issued, or renewed | ||||||
7 | after the effective date of this amendatory Act of the 95th | ||||||
8 | General Assembly shall not terminate coverage or deny the | ||||||
9 | election of coverage for an unmarried dependent by reason of | ||||||
10 | the dependent's age before the dependent's 26th birthday. | ||||||
11 | (b) A policy or plan subject to this Section shall, upon | ||||||
12 | amendment, delivery, issuance, or renewal, establish an | ||||||
13 | initial enrollment period of not less than 90 days during which | ||||||
14 | an insured may make a written election for coverage of an | ||||||
15 | unmarried person as a dependent under this Section. After the | ||||||
16 | initial enrollment period, enrollment by a dependent pursuant | ||||||
17 | to this Section shall be consistent with the enrollment terms | ||||||
18 | of the plan or policy. | ||||||
19 | (c) A policy or plan subject to this Section shall allow | ||||||
20 | for dependent coverage during the annual open enrollment date | ||||||
21 | or the annual renewal date if the dependent, as of the date on | ||||||
22 | which the insured elects dependent coverage under this | ||||||
23 | subsection, has: | ||||||
24 | (1) a period of continuous creditable coverage of 90 | ||||||
25 | days or more; and |
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1 | (2) not been without creditable coverage for more than | ||||||
2 | 63 days. | ||||||
3 | An insured may elect coverage for a dependent who does not meet | ||||||
4 | the continuous creditable coverage requirements of this | ||||||
5 | subsection (c) and that dependent shall not be denied coverage | ||||||
6 | due to age. | ||||||
7 | For purposes of this subsection (c), "creditable coverage" | ||||||
8 | shall have the meaning provided under subsection (C)(1) of | ||||||
9 | Section 20 of the Illinois Health Insurance Portability and | ||||||
10 | Accountability Act. | ||||||
11 | (d) Military personnel. A group or individual policy of | ||||||
12 | accident and health insurance or managed care plan that | ||||||
13 | provides coverage for dependents and that is amended, | ||||||
14 | delivered, issued, or renewed after the effective date of this | ||||||
15 | amendatory Act of the 95th General Assembly shall not terminate | ||||||
16 | coverage or deny the election of coverage for an unmarried | ||||||
17 | dependent by reason of the dependent's age before the | ||||||
18 | dependent's 30th birthday if the dependent (i) is an Illinois | ||||||
19 | resident, (ii) served as a member of the active or reserve | ||||||
20 | components of any of the branches of the Armed Forces of the | ||||||
21 | United States, and (iii) has received a release or discharge | ||||||
22 | other than a dishonorable discharge. To be eligible for | ||||||
23 | coverage under this subsection (d), the eligible dependent | ||||||
24 | shall submit to the insurer a form approved by the Illinois | ||||||
25 | Department of Veterans' Affairs stating the date on which the | ||||||
26 | dependent was released from service. |
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1 | (e) Calculation of the cost of coverage provided to an | ||||||
2 | unmarried dependent under this Section shall be identical. | ||||||
3 | (f) Nothing in this Section shall prohibit an employer from | ||||||
4 | requiring an employee to pay all or part of the cost of | ||||||
5 | coverage provided under this Section. | ||||||
6 | (g) No exclusions or limitations may be applied to coverage | ||||||
7 | elected pursuant to this Section that do not apply to all | ||||||
8 | dependents covered under the policy. | ||||||
9 | (h) A policy or plan subject to this Section shall not | ||||||
10 | condition eligibility for dependent coverage provided pursuant | ||||||
11 | to this Section on enrollment in any educational institution. | ||||||
12 | (i) Notice regarding coverage for a dependent as provided | ||||||
13 | pursuant to this Section shall be provided to an insured by the | ||||||
14 | insurer: | ||||||
15 | (1) upon application or enrollment; | ||||||
16 | (2) in the certificate of coverage or equivalent | ||||||
17 | document prepared for an insured and delivered on or about | ||||||
18 | the date on which the coverage commences; and | ||||||
19 | (3) in a notice delivered to an insured on a | ||||||
20 | semi-annual basis. | ||||||
21 | Section 30. The Health Maintenance Organization Act is | ||||||
22 | amended by changing Section 5-3 as follows:
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23 | (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
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24 | Sec. 5-3. Insurance Code provisions.
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1 | (a) Health Maintenance Organizations
shall be subject to | ||||||
2 | the provisions of Sections 133, 134, 137, 140, 141.1,
141.2, | ||||||
3 | 141.3, 143, 143c, 147, 148, 149, 151,
152, 153, 154, 154.5, | ||||||
4 | 154.6,
154.7, 154.8, 155.04, 355.2, 356m, 356v, 356w, 356x, | ||||||
5 | 356y,
356z.2, 356z.4, 356z.5, 356z.6, 356z.8, 356z.9, 356z.10, | ||||||
6 | 356z.11, 356z.12
356z.9 , 364.01, 367.2, 367.2-5, 367i, 368a, | ||||||
7 | 368b, 368c, 368d, 368e, 370c,
401, 401.1, 402, 403, 403A,
408, | ||||||
8 | 408.2, 409, 412, 444,
and
444.1,
paragraph (c) of subsection | ||||||
9 | (2) of Section 367, and Articles IIA, VIII 1/2,
XII,
XII 1/2, | ||||||
10 | XIII, XIII 1/2, XXV, and XXVI of the Illinois Insurance Code.
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11 | (b) For purposes of the Illinois Insurance Code, except for | ||||||
12 | Sections 444
and 444.1 and Articles XIII and XIII 1/2, Health | ||||||
13 | Maintenance Organizations in
the following categories are | ||||||
14 | deemed to be "domestic companies":
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15 | (1) a corporation authorized under the
Dental Service | ||||||
16 | Plan Act or the Voluntary Health Services Plans Act;
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17 | (2) a corporation organized under the laws of this | ||||||
18 | State; or
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19 | (3) a corporation organized under the laws of another | ||||||
20 | state, 30% or more
of the enrollees of which are residents | ||||||
21 | of this State, except a
corporation subject to | ||||||
22 | substantially the same requirements in its state of
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23 | organization as is a "domestic company" under Article VIII | ||||||
24 | 1/2 of the
Illinois Insurance Code.
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25 | (c) In considering the merger, consolidation, or other | ||||||
26 | acquisition of
control of a Health Maintenance Organization |
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1 | pursuant to Article VIII 1/2
of the Illinois Insurance Code,
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2 | (1) the Director shall give primary consideration to | ||||||
3 | the continuation of
benefits to enrollees and the financial | ||||||
4 | conditions of the acquired Health
Maintenance Organization | ||||||
5 | after the merger, consolidation, or other
acquisition of | ||||||
6 | control takes effect;
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7 | (2)(i) the criteria specified in subsection (1)(b) of | ||||||
8 | Section 131.8 of
the Illinois Insurance Code shall not | ||||||
9 | apply and (ii) the Director, in making
his determination | ||||||
10 | with respect to the merger, consolidation, or other
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11 | acquisition of control, need not take into account the | ||||||
12 | effect on
competition of the merger, consolidation, or | ||||||
13 | other acquisition of control;
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14 | (3) the Director shall have the power to require the | ||||||
15 | following
information:
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16 | (A) certification by an independent actuary of the | ||||||
17 | adequacy
of the reserves of the Health Maintenance | ||||||
18 | Organization sought to be acquired;
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19 | (B) pro forma financial statements reflecting the | ||||||
20 | combined balance
sheets of the acquiring company and | ||||||
21 | the Health Maintenance Organization sought
to be | ||||||
22 | acquired as of the end of the preceding year and as of | ||||||
23 | a date 90 days
prior to the acquisition, as well as pro | ||||||
24 | forma financial statements
reflecting projected | ||||||
25 | combined operation for a period of 2 years;
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26 | (C) a pro forma business plan detailing an |
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1 | acquiring party's plans with
respect to the operation | ||||||
2 | of the Health Maintenance Organization sought to
be | ||||||
3 | acquired for a period of not less than 3 years; and
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4 | (D) such other information as the Director shall | ||||||
5 | require.
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6 | (d) The provisions of Article VIII 1/2 of the Illinois | ||||||
7 | Insurance Code
and this Section 5-3 shall apply to the sale by | ||||||
8 | any health maintenance
organization of greater than 10% of its
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9 | enrollee population (including without limitation the health | ||||||
10 | maintenance
organization's right, title, and interest in and to | ||||||
11 | its health care
certificates).
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12 | (e) In considering any management contract or service | ||||||
13 | agreement subject
to Section 141.1 of the Illinois Insurance | ||||||
14 | Code, the Director (i) shall, in
addition to the criteria | ||||||
15 | specified in Section 141.2 of the Illinois
Insurance Code, take | ||||||
16 | into account the effect of the management contract or
service | ||||||
17 | agreement on the continuation of benefits to enrollees and the
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18 | financial condition of the health maintenance organization to | ||||||
19 | be managed or
serviced, and (ii) need not take into account the | ||||||
20 | effect of the management
contract or service agreement on | ||||||
21 | competition.
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22 | (f) Except for small employer groups as defined in the | ||||||
23 | Small Employer
Rating, Renewability and Portability Health | ||||||
24 | Insurance Act and except for
medicare supplement policies as | ||||||
25 | defined in Section 363 of the Illinois
Insurance Code, a Health | ||||||
26 | Maintenance Organization may by contract agree with a
group or |
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1 | other enrollment unit to effect refunds or charge additional | ||||||
2 | premiums
under the following terms and conditions:
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3 | (i) the amount of, and other terms and conditions with | ||||||
4 | respect to, the
refund or additional premium are set forth | ||||||
5 | in the group or enrollment unit
contract agreed in advance | ||||||
6 | of the period for which a refund is to be paid or
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7 | additional premium is to be charged (which period shall not | ||||||
8 | be less than one
year); and
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9 | (ii) the amount of the refund or additional premium | ||||||
10 | shall not exceed 20%
of the Health Maintenance | ||||||
11 | Organization's profitable or unprofitable experience
with | ||||||
12 | respect to the group or other enrollment unit for the | ||||||
13 | period (and, for
purposes of a refund or additional | ||||||
14 | premium, the profitable or unprofitable
experience shall | ||||||
15 | be calculated taking into account a pro rata share of the
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16 | Health Maintenance Organization's administrative and | ||||||
17 | marketing expenses, but
shall not include any refund to be | ||||||
18 | made or additional premium to be paid
pursuant to this | ||||||
19 | subsection (f)). The Health Maintenance Organization and | ||||||
20 | the
group or enrollment unit may agree that the profitable | ||||||
21 | or unprofitable
experience may be calculated taking into | ||||||
22 | account the refund period and the
immediately preceding 2 | ||||||
23 | plan years.
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24 | The Health Maintenance Organization shall include a | ||||||
25 | statement in the
evidence of coverage issued to each enrollee | ||||||
26 | describing the possibility of a
refund or additional premium, |
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1 | and upon request of any group or enrollment unit,
provide to | ||||||
2 | the group or enrollment unit a description of the method used | ||||||
3 | to
calculate (1) the Health Maintenance Organization's | ||||||
4 | profitable experience with
respect to the group or enrollment | ||||||
5 | unit and the resulting refund to the group
or enrollment unit | ||||||
6 | or (2) the Health Maintenance Organization's unprofitable
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7 | experience with respect to the group or enrollment unit and the | ||||||
8 | resulting
additional premium to be paid by the group or | ||||||
9 | enrollment unit.
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10 | In no event shall the Illinois Health Maintenance | ||||||
11 | Organization
Guaranty Association be liable to pay any | ||||||
12 | contractual obligation of an
insolvent organization to pay any | ||||||
13 | refund authorized under this Section.
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14 | (Source: P.A. 94-906, eff. 1-1-07; 94-1076, eff. 12-29-06; | ||||||
15 | 95-422, eff. 8-24-07; 95-520, eff. 8-28-07; revised 12-4-07.)
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16 | Section 35. The Voluntary Health Services Plans Act is | ||||||
17 | amended by changing Section 10 as follows:
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18 | (215 ILCS 165/10) (from Ch. 32, par. 604)
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19 | Sec. 10. Application of Insurance Code provisions. Health | ||||||
20 | services
plan corporations and all persons interested therein | ||||||
21 | or dealing therewith
shall be subject to the provisions of | ||||||
22 | Articles IIA and XII 1/2 and Sections
3.1, 133, 140, 143, 143c, | ||||||
23 | 149, 155.37, 354, 355.2, 356g.5, 356r, 356t, 356u, 356v,
356w, | ||||||
24 | 356x, 356y, 356z.1, 356z.2, 356z.4, 356z.5, 356z.6, 356z.8, |
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1 | 356z.9,
356z.10, 356z.11, 356z.12
356z.9 , 364.01, 367.2, 368a, | ||||||
2 | 401, 401.1,
402,
403, 403A, 408,
408.2, and 412, and paragraphs | ||||||
3 | (7) and (15) of Section 367 of the Illinois
Insurance Code.
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4 | (Source: P.A. 94-1076, eff. 12-29-06; 95-189, eff. 8-16-07; | ||||||
5 | 95-331, eff. 8-21-07; 95-422, eff. 8-24-07; 95-520, eff. | ||||||
6 | 8-28-07; revised 12-5-07.)
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