97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2247
 
Introduced , by Rep. Tom Cross
 
SYNOPSIS AS INTRODUCED:
 


215 ILCS 125/2-6  from Ch. 111 1/2, par. 1406.2

    Amends the Health Maintenance Organization Act.  Makes a technical change in
a
Section concerning deposits with the Director of Insurance.



LRB097 08146 RPM 48269 b

 
 
A BILL FOR
 


HB2247LRB097 08146 RPM 48269 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 Health Maintenance Organization Act is 
5amended by changing Section 2-6 as follows:
 



6    (215 ILCS 125/2-6)  (from Ch. 111 1/2, par. 1406.2)



7    Sec. 2-6. Statutory deposits. 

8    (a) An organization subject to the
the provisions
of this 
9Act shall make and maintain with the Director through December 
1030,
1993, for the protection of enrollees of the organization, 
11a deposit of
securities which are authorized investments under 
12paragraphs (1)
and (2) of subsection (h) of Section 3-1 having 
13a fair market value equal to
at least $100,000.  Effective 
14December 31, 1993 and through December 30,
1994, the deposit 
15shall have a fair market value at least equal to $200,000.

16Effective December 31, 1994 and thereafter, the deposit shall 
17have a fair
market value at least equal to $300,000.  An 
18organization issued a certificate
of authority on or after the 
19effective date of this Amendatory Act of 1993,
shall make and 
20maintain with the Director; for the protection of enrollees of

21the organization, a deposit of securities which are authorized 
22investments
under paragraphs (1) and (2) of subsection (h) of 
23Section 3-1 having a fair
market value equal to at least 
 
 
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1$300,000.  The amount on deposit shall remain
as an admitted 
2asset of the organization in the determination of its net

3worth.  The Director may release the required deposit of 
4securities
upon receipt of
an order of a court having proper 
5jurisdiction or
upon: (i)
certification by the organization 
6that it has no outstanding
enrollee creditors, enrollees, 
7certificate holders, or enrollee obligations
in effect and no 
8plans to engage in the
business of insurance as a health 
9maintenance organization; (ii)
receipt of
a lawful resolution 
10of the
organization's governing body effecting the surrender of

11its certificate of authority, articles of incorporation, or 
12other
organizational documents to their issuing governmental 
13officer for voluntary or
administrative dissolution; and (iii) 
14receipt of the name and
forwarding address for each of the 
15final officers and directors of the
organization,
together with 
16a plan of dissolution approved by the Director.
17    (b) An organization that offers a point-of-service 
18product, as permitted
by Article 4.5, must maintain an 
19additional deposit in an amount that is not
less than the 
20greater of 125% of the organization's annual projected

21point-of-service claims or $300,000.

22(Source: P.A. 92-75, eff. 7-12-01; 92-135, eff. 1-1-02; 92-651, 
23eff.
7-11-02.)