103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3769

 

Introduced 2/17/2023, by Rep. Katie Stuart

 

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

    Amends the Illinois Insurance Code. In provisions concerning firemen's continuance privilege, changes the definition of "fireman" and "firemen" to include any person who is not eligible to participate in a pension fund established under the Downstate Firefighter Article of the Illinois Pension Code and is employed on a full-time basis by a participating municipality or fire protection district to perform duties as a firefighter, paramedic, emergency medical technician, emergency medical technician-basic, emergency medical technician-intermediate, or advanced emergency medical technician.


LRB103 28960 BMS 55346 b

 

 

A BILL FOR

 

HB3769LRB103 28960 BMS 55346 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 meaning ascribed to such
11terms by Sections 4-103, 4-105a and 4-108, respectively, of
12the 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, and any person who is not
17eligible to participate in a pension fund established under
18Article 4 of the Illinois Pension Code and is employed on a
19full-time basis by a participating municipality or fire
20protection district to perform duties as a firefighter,
21paramedic, emergency medical technician, emergency medical
22technician-basic, emergency medical technician-intermediate,
23or advanced emergency medical technician, as heretofore or

 

 

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1hereafter amended.
2    3. The "retirement or disability period" of a fireman
3means the period:
4        a. which begins on the day the fireman is removed from
5    a municipality's fire department payroll because of the
6    occurrence of any of the following events, to wit: (i) the
7    fireman retires as a deferred pensioner under Section
8    4-105a of the Illinois Pension Code, (ii) the fireman
9    retires from active service as a fireman with an attained
10    age and accumulated creditable service which together
11    qualify the fireman for immediate receipt of retirement
12    pension benefits under Section 4-109 of the Illinois
13    Pension Code, or (iii) the fireman's disability is
14    established under Section 4-112 of the Illinois Pension
15    Code; and
16        b. which ends on the first to occur of any of the
17    following events, to wit: (i) the fireman's reinstatement
18    or reentry into active service on the municipality's fire
19    department as provided for under Article 4 of the Illinois
20    Pension Code, (ii) the fireman's exercise of any refund
21    option available under Section 4-116 of the Illinois
22    Pension Code, (iii) the fireman's loss pursuant to Section
23    4-138 of the Illinois Pension Code of any benefits
24    provided for in Article 4 of that Code, or (iv) the
25    fireman's death or -- if at the time of the fireman's death
26    the fireman is survived by a spouse who, in that capacity,

 

 

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1    is entitled to receive a surviving spouse's monthly
2    pension pursuant to Article 4 of the Illinois Pension Code -
3    - then the death or remarriage of that spouse.
4    No policy of group accident and health insurance under
5which firemen employed by a municipality are insured for their
6individual benefit shall be issued or delivered in this State
7to any municipality unless such group policy provides for the
8election of continued group insurance coverage for the
9retirement or disability period of each fireman who is insured
10under the provisions of the group policy on the day
11immediately preceding the day on which the retirement or
12disability period of such fireman begins. So long as any
13required premiums for continued group insurance coverage are
14paid in accordance with the provisions of the group policy, an
15election made pursuant to this Section shall provide continued
16group insurance coverage for a fireman throughout the
17retirement or disability period of the fireman and, unless the
18fireman otherwise elects and subject to any other provisions
19of the group policy which relate either to the provision or to
20the termination of dependents' coverage and which are not
21inconsistent with this Section, for any dependents of the
22fireman who are insured under the group policy on the day
23immediately preceding the day on which the retirement or
24disability period of the fireman begins; provided, however,
25that when such continued group insurance coverage is in effect
26with respect to a fireman on the date of the fireman's death

 

 

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1but the retirement or disability period of the fireman does
2not end with such fireman's death, then the deceased fireman's
3surviving spouse upon whose death or remarriage such
4retirement or disability period will end shall be entitled,
5without further election and upon payment of any required
6premiums in accordance with the provisions of the group
7policy, to maintain such continued group insurance coverage in
8effect until the end of such retirement or disability period.
9Continued group insurance coverage shall be provided in
10accordance with this Section at the same premium rate from
11time to time charged for equivalent coverage provided under
12the group policy with respect to covered firemen whose
13retirement or disability period has not begun, and no
14distinction or discrimination in the amount or rate of
15premiums or in any waiver of premium or other benefit
16provision shall be made between continued group insurance
17coverage elected pursuant to this Section and equivalent
18coverage provided to firemen under the group policy other than
19pursuant to the provisions of this Section; provided that no
20municipality shall be required by reason of any provision of
21this Section to pay any group insurance premium other than one
22that may be negotiated in a collective bargaining agreement.
23If a person electing continued coverage under this Section
24becomes eligible for medicare coverage, benefits under the
25group policy may continue as a supplement to the medicare
26coverage upon payment of any required premiums to maintain the

 

 

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

 

 

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1received it.
2    If the fireman elects to continue coverage, it shall be
3the obligation of the fireman to pay the monthly premium
4directly to the municipality which shall forward it to the
5insurance company issuing the group insurance policy, or as
6otherwise directed by the insurance company; provided,
7however, that the fireman shall be entitled to designate on
8the statement of election required to be filed with the
9insurance company that the total monthly premium, or such
10portion thereof as is not contributed by a municipality, be
11deducted by a Firefighter's Pension Fund from any monthly
12pension payment otherwise payable to or on behalf of the
13fireman pursuant to Article 4 of the Illinois Pension Code,
14and be remitted by such Pension Fund to the insurance company.
15The portion, if any, of the monthly premium contributed by a
16municipality for such continued group insurance coverage shall
17be paid by the municipality directly to the insurance company
18issuing the group insurance policy, or as otherwise directed
19by the insurance company. Such continued group insurance
20coverage shall relate back to the beginning of the fireman's
21retirement or disability period.
22    The amendment, renewal or extension of any group insurance
23policy affected by this Section shall be deemed to be the
24issuance of a new policy of insurance for purposes of this
25Section.
26    In the event that a municipality makes a program of

 

 

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1accident, health, hospital or medical benefits available to
2its firemen through self-insurance, or by participation in a
3pool or reciprocal insurer, or by contract in a form other than
4a policy of group insurance with one or more medical service
5plans, health care service corporations, health maintenance
6organizations, or any other professional corporations or plans
7under which health care or reimbursement for the costs thereof
8is provided, whether the cost of such benefits is borne by the
9municipality or the firemen or both, such firemen and their
10surviving spouses shall have the same right to elect continued
11coverage under such program of benefits as they would have if
12such benefits were provided by a policy of group accident and
13health insurance. In such cases, the notice of right to elect
14continued coverage shall be sent by the municipality; the
15statement of election shall be sent to the municipality; and
16references to the required premium shall refer to that portion
17of the cost of such benefits which is not borne by the
18municipality, either voluntarily or pursuant to the provisions
19of a collective bargaining agreement. In the case of a
20municipality providing such benefits through self-insurance or
21participation in a pool or reciprocal insurer, the right to
22elect continued coverage which is provided by this paragraph
23shall be implemented and made available to the firemen of the
24municipality and qualifying surviving spouses not later than
25July 1, 1985.
26    The amendment, renewal or extension of any such contract

 

 

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1in a form other than a policy of group insurance policy shall
2be deemed the formation of a new contract for the purposes of
3this Section.
4    This Section shall not limit the exercise of any
5conversion privileges available under Section 367e.
6    Pursuant to paragraphs (h) and (i) of Section 6 of Article
7VII of the Illinois Constitution, this Section specifically
8denies and limits the exercise by a home rule unit of any power
9which is inconsistent with this Section and all existing laws
10and ordinances which are inconsistent with this Section are
11hereby superseded. This Section does not preempt the
12concurrent exercise by home rule units of powers consistent
13herewith.
14    The Division of Insurance of the Department of Financial
15and Professional Regulation shall enforce the provisions of
16this Section, including provisions relating to municipality
17self-insured benefit plans.
18(Source: P.A. 94-858, eff. 6-15-06.)