Synopsis As Introduced Amends the Legal Reserve Life Insurance Article of the Illinois Insurance Code. Removes a provision concerning continuation of coverage during the insured's total disability. Adds provisions requiring extension of coverage for an individual under a group policy during an authorized absence. Defines "authorized absence" to mean an absence that is administratively approved and does not result in a charge to leave of any kind or in loss of basic salary. Sets forth provisions concerning the conditions of the extension of coverage. Provides that the prior insurer shall be liable only to the extent of its extensions of coverage. Includes provisions related to the liability of the succeeding insurer, including regular coverage, temporary coverage, deductible and waiting periods, and determinations of the prior insurer's coverage. Effective immediately.
House Committee Amendment No. 1 Replaces everything after the enacting clause. Reinserts the introduced bill with the following changes: Removes language concerning a group policy providing benefits for loss of time from work or a specific indemnity during hospital confinement. Removes language concerning a group policy providing hospital, surgical, or medical expense coverages. Makes conforming changes.
House Committee Amendment No. 2 Restores language concerning continuation of coverage during the insurer's total disability, but removes language providing that coverage of life insurance for an insured on total disability shall not go beyond the discontinuance of the group insurance policy. In provisions concerning extension of coverage under an authorized absence, removes a loss of basic salary in the definition of "authorized absence".
Fiscal Note, House Committee Amendment No. 1 (Dept of Insurance)
HB 502 (H-AM 1) has no projected fiscal impact upon the Illinois Department of Insurance.
Fiscal Note, House Committee Amendment No. 2 (Dept of Insurance)
HB 502 (H-AM 2) has no projected fiscal impact upon the Illinois Department of Insurance.