Bill Text: IL SB2746 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Insurance Code. Prohibits mandatory arbitration clauses in fully insured life, health, or disability insurance policies. Prohibits clauses in life, health, or disability insurance policies that reserve discretion to the insurer to interpret the terms of the contract or that provide standards of interpretation or review that are inconsistent with the laws of this State. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB2746 Detail]
Download: Illinois-2019-SB2746-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by adding | |||||||||||||||||||||
5 | Sections 155.47 and 155.48 as follows:
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6 | (215 ILCS 5/155.47 new) | |||||||||||||||||||||
7 | Sec. 155.47. Prohibition on discretionary clauses. No | |||||||||||||||||||||
8 | policy, contract, certificate, endorsement, rider application, | |||||||||||||||||||||
9 | or agreement amended, delivered, issued, or renewed in this | |||||||||||||||||||||
10 | State on or after January 1, 2021 to provide, deliver, arrange | |||||||||||||||||||||
11 | for, pay for, or reimburse any of the costs of life and | |||||||||||||||||||||
12 | accidental death and dismemberment insurance, health care | |||||||||||||||||||||
13 | services, or disability income may contain a provision that | |||||||||||||||||||||
14 | purports to reserve discretion to the insurer to interpret the | |||||||||||||||||||||
15 | terms of the contract or to provide standards of interpretation | |||||||||||||||||||||
16 | or review that are inconsistent with the laws of this State.
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17 | (215 ILCS 5/155.48 new) | |||||||||||||||||||||
18 | Sec. 155.48. Prohibition on mandatory arbitration clauses. | |||||||||||||||||||||
19 | No fully insured health, life, and disability income insurance | |||||||||||||||||||||
20 | policy amended, delivered, issued, or renewed in this State on | |||||||||||||||||||||
21 | or after January 1, 2021 shall require any dispute with respect | |||||||||||||||||||||
22 | to coverage or the amount of reimbursement be submitted for |
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1 | arbitration.
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
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