State of Illinois
2007 and 2008


Introduced 2/26/2007, by Rep. Tom Cross


215 ILCS 130/2005   from Ch. 73, par. 1502-5

    Amends the Limited Health Service Organization Act. Makes a technical change in a Section concerning claims liability.

LRB095 09183 KBJ 29376 b





HB3180 LRB095 09183 KBJ 29376 b

1     AN ACT concerning regulation.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 5. The Limited Health Service Organization Act is
5 amended by changing Section 2005 as follows:
6     (215 ILCS 130/2005)  (from Ch. 73, par. 1502-5)
7     Sec. 2005. Claims Liabilities.
8     (a) Every limited health service organization shall, at all
9 times, maintain liabilities in an amount estimated in the the
10 aggregate to provide for the payment of all claims incurred and
11 any due and unpaid provider capitation, whether reported or
12 unreported, which are unpaid and for which such organization is
13 or may be liable, and to provide for the expense of adjustment
14 or settlement of such claims. Such liabilities shall be
15 computed in accordance with regulations promulgated by the
16 Director upon reasonable consideration of the ascertained
17 experience and character of such business for the purpose of
18 adequately protecting enrollees and securing the solvency of
19 such organizations.
20     (b) Whenever the claim and claim expense experience of any
21 such organization shows the liabilities calculated in
22 accordance with such regulations to be inadequate, the Director
23 may require such organization to maintain additional



HB3180 - 2 - LRB095 09183 KBJ 29376 b

1 liabilities.
2 (Source: P.A. 86-600.)