|Public Act 094-1037
||LRB094 04524 LJB 34553 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Illinois Insurance Code is amended by adding
Section 368f as follows:
(215 ILCS 5/368f new)
Military service member insurance
(a) No Illinois resident activated for military service and
no spouse or dependent of the resident who becomes eligible for
a federal government-sponsored health insurance program,
including the TriCare program providing coverage for civilian
dependents of military personnel, as a result of the activation
shall be denied reinstatement into the same individual health
insurance coverage with the health insurer that the resident
lapsed as a result of activation or becoming covered by the
federal government-sponsored health insurance program. The
resident shall have the right to reinstatement in the same
individual health insurance coverage without medical
underwriting, subject to payment of the current premium charged
to other persons of the same age and gender that are covered
under the same individual health coverage. Except in the case
of birth or adoption that occurs during the period of
activation, reinstatement must be into the same coverage type
as the resident held prior to lapsing the individual health
insurance coverage and at the same or, at the option of the
resident, higher deductible level. The reinstatement rights
provided under this subsection (a) are not available to a
resident or dependents if the activated person is discharged
from the military under other than honorable conditions.
(b) The health insurer with which the reinstatement is
being requested must receive a request for reinstatement no
later than 63 days following the later of (i) deactivation or
(ii) loss of coverage under the federal government-sponsored
health insurance program. The health insurer may request proof
of loss of coverage and the timing of the loss of coverage of
the government-sponsored coverage in order to determine
eligibility for reinstatement into the individual coverage.
The effective date of the reinstatement of individual health
coverage shall be the first of the month following receipt of
the notice requesting reinstatement.
(c) All insurers must provide written notice to the
policyholder of individual health coverage of the rights
described in subsection (a) of this Section. In lieu of the
inclusion of the notice in the individual health insurance
policy, an insurance company may satisfy the notification
requirement by providing a single written notice:
(1) in conjunction with the enrollment process for a
policyholder initially enrolling in the individual
coverage on or after the effective date of this amendatory
Act of the 94th General Assembly; or
(2) by mailing written notice to policyholders whose
coverage was effective prior to the effective date of this
amendatory Act of the 94th General Assembly no later than
90 days following the effective date of this amendatory Act
of the 94th General Assembly.
(d) The provisions of subsection (a) of this Section do not
apply to any policy or certificate providing coverage for any
specified disease, specified accident or accident-only
coverage, credit, dental, disability income, hospital
indemnity, long-term care, Medicare supplement, vision care,
or short-term nonrenewable health policy or other
limited-benefit supplemental insurance, or any coverage issued
as a supplement to any liability insurance, workers'
compensation or similar insurance, or any insurance under which
benefits are payable with or without regard to fault, whether
written on a group, blanket, or individual basis.
(e) Nothing in this Section shall require an insurer to
reinstate the resident if the insurer requires residency in an
enrollment area and those residency requirements are not met
after deactivation or loss of coverage under the
government-sponsored health insurance program.
(f) All terms, conditions, and limitations of the
individual coverage into which reinstatement is made apply
equally to all insureds enrolled in the coverage.
(g) The Secretary may adopt rules as may be necessary to
carry out the provisions of this Section.
This Act takes effect upon