Bill Text: IL HB3320 | 2019-2020 | 101st General Assembly | Chaptered

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Bill Title: Amends the Third Party Administrators Article of the Illinois Insurance Code. Excludes a dental service plan regulated by the Code from the definition of "administrator".

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2019-07-19 - Public Act . . . . . . . . . 101-0108 [HB3320 Detail]

Download: Illinois-2019-HB3320-Chaptered.html

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Public Act 101-0108
HB3320 Enrolled LRB101 08699 RAB 53784 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 511.101 as follows:
(215 ILCS 5/511.101) (from Ch. 73, par. 1065.58-101)
(Section scheduled to be repealed on January 1, 2027)
Sec. 511.101. Definitions. For the purpose of this Article:
(a) "Administrator" means any person who on behalf of a
plan sponsor or insurer receives or collects charges,
contributions or premiums for, or adjusts or settles claims on
residents of this State in connection with any type of life or
accident or health benefit provided through or as an
alternative to insurance within the scope of Class 1(a), 1(b)
or 2(a) of Section 4 of this the Illinois Insurance Code, other
than any of the following:
(1) A corporation, association, trust or partnership
which is administering a plan (i) on behalf of the
employees of such corporation, association, trust or
partnership or (ii) for the employees of one or more
subsidiaries or affiliated corporations or affiliated
associations, trusts or partnerships;
(2) A union administering a plan for its members;

(3) A plan sponsor administering its own plan;
(4) An insurer or dental service plan to the extent
regulated by this the Illinois Insurance Code;
(5) A producer licensed in this State whose insurance
activities are limited to the scope of such license;
(6) A trust and its trustees and employees acting
pursuant to its trust agreement established in conformity
with 29 U.S.C. 186;
(7) A person who adjusts or settles claims in the
normal course of such person's practice or employment as an
attorney-at-law, and who does not collect contributions or
premiums in connection with life or accident or health
coverage;
(8) A person who administers only self-insured
workers' compensation plans, or single employer self
insured life or accident or health benefit plans;
(9) A credit card issuing company which advances for
and collects premiums or charges from its credit card
holders who have authorized such collection, if such
company does not adjust or settle claims;
(10) A creditor on behalf of its debtors with respect
to insurance covering a debt between the creditor and its
debtors.
(b) "Covered Individual" means any individual eligible for
life or accident or health benefits under a plan.
(c) "Contributions" means any money charged a covered

individual, plan sponsor or other entity to fund the
self-insured portion of any plan in accordance with written
provisions of the plan or contracts of insurance. Contributions
shall include administrative fees charged to a covered
individual. Administrative fee means any compensation paid by a
covered individual for services performed by the
administrator.
(d) "Premiums" means any money charged a covered
individual, plan sponsor or other entity to provide life or
accident or health insurance under a plan. The term premium
shall include amounts paid by or charged to a covered
individual plan sponsor or other entity for stop loss or excess
insurance.
(e) "Charges" means any compensation paid by a plan sponsor
or insurer for services performed by the administrator.
(f) "Administrator Trust Fund", hereinafter referred to as
"ATF", means a special fiduciary account established and
maintained by an administrator pursuant to Section 511.112 in
which contributions and premiums are deposited.
(g) "Claims Administration Services Account", hereinafter
referred to as "CASA", means a special fiduciary account
established and maintained by an administrator pursuant to
Section 511.112 of this Code from which claims and claims
adjustment expenses are disbursed.
(h) "Plan Sponsor" means any person other than an insurer,
who establishes or maintains a plan covering residents of this

State, including but not limited to plans established or
maintained by 2 or more employers or jointly by one or more
employers and one or more employee organizations, the
association, committee, joint board of trustees, or other
similar group of representatives of the parties who establish
or maintain the plan.
Provided, however, that "Plan Sponsor" shall not include:
(1) The employer in the case of a plan established or
maintained by a single employer; or
(2) The employee organization in the case of a plan
established or maintained by an employee organization.
No plan sponsor covered in whole by provisions of the
Employee Retirement Income Security Act of 1974 (ERISA) shall
be covered by any of the provisions of this Act to the extent
that such provisions are inconsistent with or in conflict with
any provisions of ERISA as now or hereafter amended.
(i) "Financial Institution" means any federal or state
chartered bank or savings and loan institution which is insured
by the Federal Deposit Insurance Corporation (FDIC) or the
Federal Savings and Loan Insurance Corporation (FSLIC).
(j) "Plan" means any plan, fund or program established or
maintained by a plan sponsor or insurer to the extent that such
plan, fund or program was established or is maintained to
provide through insurance or alternatives to insurance any type
of life or accident or health benefit within the scope of Class
1(a), 1(b) or 2(a) of Section 4 of the Illinois Insurance Code.

(k) "Insurer" means any person who transacts insurance or
health care service business authorized under the laws of this
State.
(l) "Quasi-resident" means a nonresident licensee who
produces 50% or more of his contributions and premium volume
during a calendar year from residents of this State.
(Source: P.A. 84-1431.)