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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1555 Introduced 2/9/2011, by Sen. William R. Haine SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/4 | from Ch. 73, par. 616 |
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Amends the Illinois Insurance Code in the provision concerning classes of insurance to provides that the insurance laws of this State, including the Illinois Insurance Code, do not apply to a religious organization or members of the organization when the organization meets certain criteria.
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| | A BILL FOR |
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1 | | AN ACT concerning insurance.
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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 Illinois Insurance Code is amended by |
5 | | changing Section 4 as follows:
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6 | | (215 ILCS 5/4) (from Ch. 73, par. 616)
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7 | | Sec. 4. Classes of insurance. Insurance and insurance |
8 | | business shall
be classified as follows:
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9 | | Class 1. Life, Accident and Health.
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10 | | (a) Life. Insurance on the lives of persons and every |
11 | | insurance
appertaining thereto or connected therewith and |
12 | | granting, purchasing or
disposing of annuities. Policies of |
13 | | life or endowment insurance or
annuity contracts or contracts |
14 | | supplemental thereto which contain
provisions for additional |
15 | | benefits in case of death by accidental means
and provisions |
16 | | operating to safeguard such policies or contracts against
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17 | | lapse, to give a special surrender value, or special benefit, |
18 | | or an
annuity, in the event, that the insured or annuitant |
19 | | shall become
totally and permanently disabled as defined by the |
20 | | policy or contract,
or which contain benefits providing |
21 | | acceleration of life or endowment or
annuity benefits in |
22 | | advance of the time they would otherwise be
payable, as an |
23 | | indemnity for long term care which is certified or
ordered by a |
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1 | | physician, including but not limited to, professional nursing
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2 | | care, medical care expenses, custodial nursing care, |
3 | | non-nursing custodial
care provided in a nursing home or at a |
4 | | residence of the insured, or
which contain benefits providing |
5 | | acceleration of life or endowment or
annuity benefits in |
6 | | advance of the time they would otherwise be payable, at
any |
7 | | time during the insured's
lifetime, as an indemnity for a |
8 | | terminal illness shall be deemed to be
policies of life or |
9 | | endowment insurance or annuity contracts within the
intent of |
10 | | this clause.
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11 | | Also to be deemed as policies of life or endowment |
12 | | insurance or annuity
contracts within the intent of this clause |
13 | | shall be those policies or
riders that provide for the payment |
14 | | of up to 75% of the face amount
of
benefits in advance of the |
15 | | time they would otherwise be payable upon a
diagnosis by a |
16 | | physician licensed to practice medicine in all of its
branches |
17 | | that the insured has incurred a covered
condition listed
in the |
18 | | policy or rider.
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19 | | "Covered condition", as used in this clause, means:
heart |
20 | | attack, stroke, coronary artery surgery,
life threatening |
21 | | cancer, renal failure,
alzheimer's disease,
paraplegia, major |
22 | | organ transplantation, total and permanent
disability, and any |
23 | | other medical condition that the Department may approve for
any |
24 | | particular filing.
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25 | | The Director may issue rules that specify prohibited policy |
26 | | provisions,
not otherwise specifically prohibited by law, |
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1 | | which in the opinion of the
Director are unjust, unfair, or |
2 | | unfairly discriminatory to the
policyholder,
any person |
3 | | insured under the policy, or beneficiary.
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4 | | (b) Accident and health. Insurance against bodily injury,
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5 | | disablement or death by accident and against disablement |
6 | | resulting from
sickness or old age and every insurance |
7 | | appertaining thereto, including
stop-loss insurance. Stop-loss |
8 | | insurance is insurance against the risk of
economic loss issued |
9 | | to a single employer self-funded employee disability
benefit |
10 | | plan or an employee welfare benefit plan as described in 29 |
11 | | U.S.C. 100
et seq. The insurance laws of this State, including |
12 | | this Code, do not apply to a religious organization or members |
13 | | of the organization when the organization meets all of the |
14 | | following criteria:
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15 | | (i) the organization is described in section 501(c)(3) |
16 | | of the Internal Revenue Code and is exempt from taxation |
17 | | under Section 501(a) of the Internal Revenue Code; |
18 | | (ii) members of the organization share a common set of |
19 | | ethical or religious beliefs and share medical expenses |
20 | | among members in accordance with those beliefs and without |
21 | | regard to the state in which a member resides or is |
22 | | employed; |
23 | | (iii) members of the organization retain membership |
24 | | even after they develop a medical condition; |
25 | | (iv) the organization or a predecessor organization |
26 | | has been in existence at all times since December 31, 1999, |
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1 | | and medical expenses of its members have been shared |
2 | | continuously and without interruption since at least |
3 | | December 31, 1999; |
4 | | (v) the organization conducts an annual audit that is |
5 | | performed by an independent certified public accounting |
6 | | firm in accordance with generally accepted accounting |
7 | | principles and is made available to the public upon |
8 | | request; |
9 | | (vi) the organization includes the following |
10 | | statement, in writing, on or accompanying all applications |
11 | | and guideline materials: |
12 | | "Notice: The organization facilitating the sharing of |
13 | | medical expenses is not an insurance company, and |
14 | | neither its guidelines nor plan of operation |
15 | | constitute or create an insurance policy. Any |
16 | | assistance you receive with your medical bills will be |
17 | | totally voluntary. Neither the organization nor any |
18 | | other participant can be compelled by law to contribute |
19 | | toward your medical bills. As such, participation in |
20 | | the organization or a subscription to any of its |
21 | | documents should never be considered to be insurance. |
22 | | Whether or not you receive any payments for medical |
23 | | expenses and whether or not this organization |
24 | | continues to operate, you are always personally |
25 | | responsible for the payment of your own medical |
26 | | bills."; and |
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1 | | (vii) any membership card or similar document issued by |
2 | | the organization and any written communication sent by the |
3 | | organization to a hospital, physician, or other health care |
4 | | provider shall include a statement that the organization |
5 | | does not issue health insurance and that the member or |
6 | | participant is personally liable for payment of his or her |
7 | | medical bills. |
8 | | (c) Legal Expense Insurance. Insurance which involves
the |
9 | | assumption of a contractual obligation to reimburse the |
10 | | beneficiary
against or pay on behalf of the beneficiary, all or |
11 | | a portion of his fees,
costs, or expenses related to or arising |
12 | | out of services performed by or
under the supervision of an |
13 | | attorney licensed to practice in the jurisdiction
wherein the |
14 | | services are performed, regardless of whether the payment is |
15 | | made
by the beneficiaries individually or by a third person for |
16 | | them, but does
not include the provision of or reimbursement |
17 | | for legal services incidental
to other insurance coverages. The |
18 | | insurance laws of this State, including
this Act do not apply |
19 | | to:
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20 | | (i) Retainer contracts made by attorneys at law with |
21 | | individual clients
with fees based on estimates of the |
22 | | nature and amount of services to be
provided to the |
23 | | specific client, and similar contracts made with a group
of |
24 | | clients involved in the same or closely related legal |
25 | | matters;
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26 | | (ii) Plans owned or operated by attorneys who are the |
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1 | | providers of legal
services to the plan;
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2 | | (iii) Plans providing legal service benefits to groups |
3 | | where such plans
are owned or operated by authority of a |
4 | | state, county, local or other bar
association;
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5 | | (iv) Any lawyer referral service authorized or |
6 | | operated by a state,
county, local or other bar |
7 | | association;
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8 | | (v) The furnishing of legal assistance by labor unions |
9 | | and other employee
organizations to their members in |
10 | | matters relating to employment or occupation;
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11 | | (vi) The furnishing of legal assistance to members or |
12 | | dependents, by
churches, consumer organizations, |
13 | | cooperatives, educational institutions,
credit unions, or |
14 | | organizations of employees, where such organizations |
15 | | contract
directly with lawyers or law firms for the |
16 | | provision of legal services,
and the administration and |
17 | | marketing of such legal services is wholly conducted
by the |
18 | | organization or its subsidiary;
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19 | | (vii) Legal services provided by an employee welfare |
20 | | benefit plan defined
by the Employee Retirement Income |
21 | | Security Act of 1974;
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22 | | (viii) Any collectively bargained plan for legal |
23 | | services between a labor
union and an employer negotiated |
24 | | pursuant to Section 302 of the Labor
Management Relations |
25 | | Act as now or hereafter amended, under which plan
legal |
26 | | services will be provided for employees of the employer |
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1 | | whether or
not payments for such services are funded to or |
2 | | through an insurance company.
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3 | | Class 2. Casualty, Fidelity and Surety.
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4 | | (a) Accident and health. Insurance against bodily injury,
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5 | | disablement or death by accident and against disablement |
6 | | resulting from
sickness or old age and every insurance |
7 | | appertaining thereto, including
stop-loss insurance. Stop-loss |
8 | | insurance is insurance against the risk of
economic loss issued |
9 | | to a single employer self-funded employee disability
benefit |
10 | | plan or
an employee welfare benefit plan as described in 29 |
11 | | U.S.C. 1001 et seq.
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12 | | (b) Vehicle. Insurance against any loss or liability |
13 | | resulting from
or incident to the ownership, maintenance or use |
14 | | of any vehicle (motor
or otherwise), draft animal or aircraft. |
15 | | Any policy insuring against any
loss or liability on account of |
16 | | the bodily injury or death of any person
may contain a |
17 | | provision for payment of disability benefits to injured
persons |
18 | | and death benefits to dependents, beneficiaries or personal
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19 | | representatives of persons who are killed, including the named |
20 | | insured,
irrespective of legal liability of the insured, if the |
21 | | injury or death
for which benefits are provided is caused by |
22 | | accident and sustained
while in or upon or while entering into |
23 | | or alighting from or through
being struck by a vehicle (motor |
24 | | or otherwise), draft animal or
aircraft, and such provision |
25 | | shall not be deemed to be accident
insurance.
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26 | | (c) Liability. Insurance against the liability of the |
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1 | | insured for
the death, injury or disability of an employee or |
2 | | other person, and
insurance against the liability of the |
3 | | insured for damage to or
destruction of another person's |
4 | | property.
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5 | | (d) Workers' compensation. Insurance of the obligations |
6 | | accepted by
or imposed upon employers under laws for workers' |
7 | | compensation.
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8 | | (e) Burglary and forgery. Insurance against loss or damage |
9 | | by
burglary, theft, larceny, robbery, forgery, fraud or |
10 | | otherwise;
including all householders' personal property |
11 | | floater risks.
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12 | | (f) Glass. Insurance against loss or damage to glass |
13 | | including
lettering, ornamentation and fittings from any |
14 | | cause.
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15 | | (g) Fidelity and surety. Become surety or guarantor for any |
16 | | person,
copartnership or corporation in any position or place |
17 | | of trust or as
custodian of money or property, public or |
18 | | private; or, becoming a surety
or guarantor for the performance |
19 | | of any person, copartnership or
corporation of any lawful |
20 | | obligation, undertaking, agreement or contract
of any kind, |
21 | | except contracts or policies of insurance; and underwriting
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22 | | blanket bonds. Such obligations shall be known and treated as |
23 | | suretyship
obligations and such business shall be known as |
24 | | surety business.
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25 | | (h) Miscellaneous. Insurance against loss or damage to |
26 | | property and
any liability of the insured caused by accidents |
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1 | | to boilers, pipes,
pressure containers, machinery and |
2 | | apparatus of any kind and any
apparatus connected thereto, or |
3 | | used for creating, transmitting or
applying power, light, heat, |
4 | | steam or refrigeration, making inspection
of and issuing |
5 | | certificates of inspection upon elevators, boilers,
machinery |
6 | | and apparatus of any kind and all mechanical apparatus and
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7 | | appliances appertaining thereto; insurance against loss or |
8 | | damage by
water entering through leaks or openings in |
9 | | buildings, or from the
breakage or leakage of a sprinkler, |
10 | | pumps, water pipes, plumbing and all
tanks, apparatus, conduits |
11 | | and containers designed to bring water into
buildings or for |
12 | | its storage or utilization therein, or caused by the
falling of |
13 | | a tank, tank platform or supports, or against loss or damage
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14 | | from any cause (other than causes specifically enumerated under |
15 | | Class 3
of this Section) to such sprinkler, pumps, water pipes, |
16 | | plumbing, tanks,
apparatus, conduits or containers; insurance |
17 | | against loss or damage
which may result from the failure of |
18 | | debtors to pay their obligations to
the insured; and insurance |
19 | | of the payment of money for personal services
under contracts |
20 | | of hiring.
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21 | | (i) Other casualty risks. Insurance against any other |
22 | | casualty risk
not otherwise specified under Classes 1 or 3, |
23 | | which may lawfully be the
subject of insurance and may properly |
24 | | be classified under Class 2.
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25 | | (j) Contingent losses. Contingent, consequential and |
26 | | indirect
coverages wherein the proximate cause of the loss is |
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1 | | attributable to any
one of the causes enumerated under Class 2. |
2 | | Such coverages shall, for
the purpose of classification, be |
3 | | included in the specific grouping of
the kinds of insurance |
4 | | wherein such cause is specified.
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5 | | (k) Livestock and domestic animals. Insurance against |
6 | | mortality,
accident and health of livestock and domestic |
7 | | animals.
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8 | | (l) Legal expense insurance. Insurance against risk |
9 | | resulting from the
cost of legal services as defined under |
10 | | Class 1(c).
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11 | | Class 3. Fire and Marine, etc.
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12 | | (a) Fire. Insurance against loss or damage by fire, smoke |
13 | | and
smudge, lightning or other electrical disturbances.
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14 | | (b) Elements. Insurance against loss or damage by |
15 | | earthquake,
windstorms, cyclone, tornado, tempests, hail, |
16 | | frost, snow, ice, sleet,
flood, rain, drought or other weather |
17 | | or climatic conditions including
excess or deficiency of |
18 | | moisture, rising of the waters of the ocean or
its tributaries.
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19 | | (c) War, riot and explosion. Insurance against loss or |
20 | | damage by
bombardment, invasion, insurrection, riot, strikes, |
21 | | civil war or
commotion, military or usurped power, or explosion |
22 | | (other than explosion
of steam boilers and the breaking of fly |
23 | | wheels on premises owned,
controlled, managed, or maintained by |
24 | | the insured.)
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25 | | (d) Marine and transportation. Insurance against loss or |
26 | | damage to
vessels, craft, aircraft, vehicles of every kind, |
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1 | | (excluding vehicles
operating under their own power or while in |
2 | | storage not incidental to
transportation) as well as all goods, |
3 | | freights, cargoes, merchandise,
effects, disbursements, |
4 | | profits, moneys, bullion, precious stones,
securities, chooses |
5 | | in action, evidences of debt, valuable papers,
bottomry and |
6 | | respondentia interests and all other kinds of property and
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7 | | interests therein, in respect to, appertaining to or in |
8 | | connection with
any or all risks or perils of navigation, |
9 | | transit, or transportation,
including war risks, on or under |
10 | | any seas or other waters, on land or in
the air, or while being |
11 | | assembled, packed, crated, baled, compressed or
similarly |
12 | | prepared for shipment or while awaiting the same or during any
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13 | | delays, storage, transshipment, or reshipment incident |
14 | | thereto,
including marine builder's risks and all personal |
15 | | property floater
risks; and for loss or damage to persons or |
16 | | property in connection with
or appertaining to marine, inland |
17 | | marine, transit or transportation
insurance, including |
18 | | liability for loss of or damage to either arising
out of or in |
19 | | connection with the construction, repair, operation,
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20 | | maintenance, or use of the subject matter of such insurance, |
21 | | (but not
including life insurance or surety bonds); but, except |
22 | | as herein
specified, shall not mean insurances against loss by |
23 | | reason of bodily
injury to the person; and insurance against |
24 | | loss or damage to precious
stones, jewels, jewelry, gold, |
25 | | silver and other precious metals whether
used in business or |
26 | | trade or otherwise and whether the same be in course
of |
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1 | | transportation or otherwise, which shall include jewelers' |
2 | | block
insurance; and insurance against loss or damage to |
3 | | bridges, tunnels and
other instrumentalities of transportation |
4 | | and communication (excluding
buildings, their furniture and |
5 | | furnishings, fixed contents and supplies
held in storage) |
6 | | unless fire, tornado, sprinkler leakage, hail,
explosion, |
7 | | earthquake, riot and civil commotion are the only hazards to
be |
8 | | covered; and to piers, wharves, docks and slips, excluding the |
9 | | risks
of fire, tornado, sprinkler leakage, hail, explosion, |
10 | | earthquake, riot
and civil commotion; and to other aids to |
11 | | navigation and transportation,
including dry docks and marine |
12 | | railways, against all risk.
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13 | | (e) Vehicle. Insurance against loss or liability resulting |
14 | | from or
incident to the ownership, maintenance or use of any |
15 | | vehicle (motor or
otherwise), draft animal or aircraft, |
16 | | excluding the liability of the
insured for the death, injury or |
17 | | disability of another person.
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18 | | (f) Property damage, sprinkler leakage and crop. Insurance |
19 | | against
the liability of the insured for loss or damage to |
20 | | another person's
property or property interests from any cause |
21 | | enumerated in this class;
insurance against loss or damage by |
22 | | water entering through leaks or
openings in buildings, or from |
23 | | the breakage or leakage of a sprinkler,
pumps, water pipes, |
24 | | plumbing and all tanks, apparatus, conduits and
containers |
25 | | designed to bring water into buildings or for its storage or
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26 | | utilization therein, or caused by the falling of a tank, tank |
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1 | | platform
or supports or against loss or damage from any cause |
2 | | to such sprinklers,
pumps, water pipes, plumbing, tanks, |
3 | | apparatus, conduits or containers;
insurance against loss or |
4 | | damage from insects, diseases or other causes to
trees, crops |
5 | | or other products of the soil.
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6 | | (g) Other fire and marine risks. Insurance against any |
7 | | other
property risk not otherwise specified under Classes 1 or |
8 | | 2, which may
lawfully be the subject of insurance and may |
9 | | properly be classified
under Class 3.
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10 | | (h) Contingent losses. Contingent, consequential and |
11 | | indirect
coverages wherein the proximate cause of the loss is |
12 | | attributable to any
of the causes enumerated under Class 3. |
13 | | Such coverages shall, for the
purpose of classification, be |
14 | | included in the specific grouping of the
kinds of insurance |
15 | | wherein such cause is specified.
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16 | | (i) Legal expense insurance. Insurance against risk |
17 | | resulting from the
cost of legal services as defined under |
18 | | Class 1(c).
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19 | | (Source: P.A. 90-741, eff. 8-13-98; 90-810, eff. 1-6-99.)
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