99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2478

 

Introduced 2/18/2015, by Rep. Lou Lang

 

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 the firemen's continuance privilege.


LRB099 07609 JLS 27739 b

 

 

A BILL FOR

 

HB2478LRB099 07609 JLS 27739 b

1    AN ACT concerning insurance.
 
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 this
8Section:
9    1. The 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 the
12Illinois Pension Code, as now or hereafter amended.
13    2. The terms "fireman" and "firemen" shall have the meaning
14ascribed to the term "firefighter" by Section 4-106 of the
15Illinois 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 means
19the 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

 

 

HB2478- 2 -LRB099 07609 JLS 27739 b

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 provided
17    for in Article 4 of that Code, or (iv) the fireman's death
18    or -- if at the time of the fireman's death the fireman is
19    survived by a spouse who, in that capacity, is entitled to
20    receive a surviving spouse's monthly pension pursuant to
21    Article 4 of the Illinois Pension Code -- then the death or
22    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

 

 

HB2478- 3 -LRB099 07609 JLS 27739 b

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

 

 

HB2478- 4 -LRB099 07609 JLS 27739 b

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

 

 

HB2478- 5 -LRB099 07609 JLS 27739 b

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

 

 

HB2478- 6 -LRB099 07609 JLS 27739 b

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

 

 

HB2478- 7 -LRB099 07609 JLS 27739 b

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

 

 

HB2478- 8 -LRB099 07609 JLS 27739 b

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