102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0810

 

Introduced 2/10/2021, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/367f  from Ch. 73, par. 979f

    Amends the Illinois Insurance Code. Makes a technical change in a Section concerning firemen's continuance privilege.


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A BILL FOR

 

HB0810LRB102 10585 BMS 15914 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 Illinois Insurance Code is amended by
5changing Section 367f as follows:
 
6    (215 ILCS 5/367f)  (from Ch. 73, par. 979f)
7    Sec. 367f. Firemen's continuance privilege. As used in
8this Section:
9    1. The terms "municipality", "deferred pensioner" and
10"creditable service" shall have the the meaning ascribed to
11such terms by Sections 4-103, 4-105a and 4-108, respectively,
12of the Illinois Pension Code, as now or hereafter amended.
13    2. The terms "fireman" and "firemen" shall have the
14meaning ascribed to the term "firefighter" by Section 4-106 of
15the Illinois Pension Code, and include those persons under the
16coverage of Article 4 of that Code, as heretofore or hereafter
17amended.
18    3. The "retirement or disability period" of a fireman
19means the period:
20        a. which begins on the day the fireman is removed from
21    a municipality's fire department payroll because of the
22    occurrence of any of the following events, to wit: (i) the
23    fireman retires as a deferred pensioner under Section

 

 

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1    4-105a of the Illinois Pension Code, (ii) the fireman
2    retires from active service as a fireman with an attained
3    age and accumulated creditable service which together
4    qualify the fireman for immediate receipt of retirement
5    pension benefits under Section 4-109 of the Illinois
6    Pension Code, or (iii) the fireman's disability is
7    established under Section 4-112 of the Illinois Pension
8    Code; and
9        b. which ends on the first to occur of any of the
10    following events, to wit: (i) the fireman's reinstatement
11    or reentry into active service on the municipality's fire
12    department as provided for under Article 4 of the Illinois
13    Pension Code, (ii) the fireman's exercise of any refund
14    option available under Section 4-116 of the Illinois
15    Pension Code, (iii) the fireman's loss pursuant to Section
16    4-138 of the Illinois Pension Code of any benefits
17    provided for in Article 4 of that Code, or (iv) the
18    fireman's death or -- if at the time of the fireman's death
19    the fireman is survived by a spouse who, in that capacity,
20    is entitled to receive a surviving spouse's monthly
21    pension pursuant to Article 4 of the Illinois Pension Code -
22    - then the death or remarriage of that spouse.
23    No policy of group accident and health insurance under
24which firemen employed by a municipality are insured for their
25individual benefit shall be issued or delivered in this State
26to any municipality unless such group policy provides for the

 

 

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1election of continued group insurance coverage for the
2retirement or disability period of each fireman who is insured
3under the provisions of the group policy on the day
4immediately preceding the day on which the retirement or
5disability period of such fireman begins. So long as any
6required premiums for continued group insurance coverage are
7paid in accordance with the provisions of the group policy, an
8election made pursuant to this Section shall provide continued
9group insurance coverage for a fireman throughout the
10retirement or disability period of the fireman and, unless the
11fireman otherwise elects and subject to any other provisions
12of the group policy which relate either to the provision or to
13the termination of dependents' coverage and which are not
14inconsistent with this Section, for any dependents of the
15fireman who are insured under the group policy on the day
16immediately preceding the day on which the retirement or
17disability period of the fireman begins; provided, however,
18that when such continued group insurance coverage is in effect
19with respect to a fireman on the date of the fireman's death
20but the retirement or disability period of the fireman does
21not end with such fireman's death, then the deceased fireman's
22surviving spouse upon whose death or remarriage such
23retirement or disability period will end shall be entitled,
24without further election and upon payment of any required
25premiums in accordance with the provisions of the group
26policy, to maintain such continued group insurance coverage in

 

 

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1effect until the end of such retirement or disability period.
2Continued group insurance coverage shall be provided in
3accordance with this Section at the same premium rate from
4time to time charged for equivalent coverage provided under
5the group policy with respect to covered firemen whose
6retirement or disability period has not begun, and no
7distinction or discrimination in the amount or rate of
8premiums or in any waiver of premium or other benefit
9provision shall be made between continued group insurance
10coverage elected pursuant to this Section and equivalent
11coverage provided to firemen under the group policy other than
12pursuant to the provisions of this Section; provided that no
13municipality shall be required by reason of any provision of
14this Section to pay any group insurance premium other than one
15that may be negotiated in a collective bargaining agreement.
16If a person electing continued coverage under this Section
17becomes eligible for medicare coverage, benefits under the
18group policy may continue as a supplement to the medicare
19coverage upon payment of any required premiums to maintain the
20benefits of the group policy as supplemental coverage.
21    Within 15 days of the beginning of the retirement or
22disability period of any fireman entitled to elect continued
23group insurance coverage under any group policy affected by
24this Section, the municipality last employing such fireman
25shall give written notice of such beginning by certified mail,
26return receipt requested to the insurance company issuing such

 

 

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1policy. The notice shall include the fireman's name and last
2known place of residence and the beginning date of the
3fireman's retirement or disability period.
4    Within 15 days of the date of receipt of such notice from
5the municipality, the insurance company by certified mail,
6return receipt requested, shall give written notice to the
7fireman at the fireman's last known place of residence that
8coverage under the group policy may be continued for the
9retirement or disability period of the fireman as provided in
10this Section. Such notice shall set forth: (i) a statement of
11election to be filed by the fireman if the fireman wishes to
12continue such group insurance coverage, (ii) the amount of
13monthly premium, including a statement of the portion of such
14monthly premium attributable to any dependents' coverage which
15the fireman may elect, and (iii) instructions as to the return
16of the election form to the insurance company issuing such
17policy. Election shall be made, if at all, by returning the
18statement of election to the insurance company by certified
19mail, return receipt requested within 15 days after having
20received it.
21    If the fireman elects to continue coverage, it shall be
22the obligation of the fireman to pay the monthly premium
23directly to the municipality which shall forward it to the
24insurance company issuing the group insurance policy, or as
25otherwise directed by the insurance company; provided,
26however, that the fireman shall be entitled to designate on

 

 

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1the statement of election required to be filed with the
2insurance company that the total monthly premium, or such
3portion thereof as is not contributed by a municipality, be
4deducted by a Firefighter's Pension Fund from any monthly
5pension payment otherwise payable to or on behalf of the
6fireman pursuant to Article 4 of the Illinois Pension Code,
7and be remitted by such Pension Fund to the insurance company.
8The portion, if any, of the monthly premium contributed by a
9municipality for such continued group insurance coverage shall
10be paid by the municipality directly to the insurance company
11issuing the group insurance policy, or as otherwise directed
12by the insurance company. Such continued group insurance
13coverage shall relate back to the beginning of the fireman's
14retirement or disability period.
15    The amendment, renewal or extension of any group insurance
16policy affected by this Section shall be deemed to be the
17issuance of a new policy of insurance for purposes of this
18Section.
19    In the event that a municipality makes a program of
20accident, health, hospital or medical benefits available to
21its firemen through self-insurance, or by participation in a
22pool or reciprocal insurer, or by contract in a form other than
23a policy of group insurance with one or more medical service
24plans, health care service corporations, health maintenance
25organizations, or any other professional corporations or plans
26under which health care or reimbursement for the costs thereof

 

 

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1is provided, whether the cost of such benefits is borne by the
2municipality or the firemen or both, such firemen and their
3surviving spouses shall have the same right to elect continued
4coverage under such program of benefits as they would have if
5such benefits were provided by a policy of group accident and
6health insurance. In such cases, the notice of right to elect
7continued coverage shall be sent by the municipality; the
8statement of election shall be sent to the municipality; and
9references to the required premium shall refer to that portion
10of the cost of such benefits which is not borne by the
11municipality, either voluntarily or pursuant to the provisions
12of a collective bargaining agreement. In the case of a
13municipality providing such benefits through self-insurance or
14participation in a pool or reciprocal insurer, the right to
15elect continued coverage which is provided by this paragraph
16shall be implemented and made available to the firemen of the
17municipality and qualifying surviving spouses not later than
18July 1, 1985.
19    The amendment, renewal or extension of any such contract
20in a form other than a policy of group insurance policy shall
21be deemed the formation of a new contract for the purposes of
22this Section.
23    This Section shall not limit the exercise of any
24conversion privileges available under Section 367e.
25    Pursuant to paragraphs (h) and (i) of Section 6 of Article
26VII of the Illinois Constitution, this Section specifically

 

 

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1denies and limits the exercise by a home rule unit of any power
2which is inconsistent with this Section and all existing laws
3and ordinances which are inconsistent with this Section are
4hereby superseded. This Section does not preempt the
5concurrent exercise by home rule units of powers consistent
6herewith.
7    The Division of Insurance of the Department of Financial
8and Professional Regulation shall enforce the provisions of
9this Section, including provisions relating to municipality
10self-insured benefit plans.
11(Source: P.A. 94-858, eff. 6-15-06.)