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Public Act 101-0108 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Section 511.101 as follows:
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(215 ILCS 5/511.101) (from Ch. 73, par. 1065.58-101)
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(Section scheduled to be repealed on January 1, 2027)
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Sec. 511.101. Definitions. For the purpose of this Article:
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(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
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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:
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(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;
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(2) A union administering a plan for its members;
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(3) A plan sponsor administering its own plan;
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(4) An insurer or dental service plan to the extent | ||
regulated by this the Illinois Insurance Code;
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(5) A producer licensed in this State whose insurance | ||
activities are limited
to the scope of such license;
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(6) A trust and its trustees and employees acting | ||
pursuant to its trust
agreement established in conformity | ||
with 29 U.S.C. 186;
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(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;
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(8) A person who administers only self-insured | ||
workers' compensation plans,
or single employer self | ||
insured life or accident or health benefit plans;
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(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;
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(10) A creditor on behalf of its debtors with respect | ||
to insurance
covering a debt between the creditor and its | ||
debtors.
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(b) "Covered Individual" means any individual eligible for | ||
life or accident
or health benefits under a plan.
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(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
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individual. Administrative fee means any compensation paid by a | ||
covered
individual for services performed by the | ||
administrator.
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(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
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individual plan sponsor or other entity for stop loss or excess | ||
insurance.
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(e) "Charges" means any compensation paid by a plan sponsor | ||
or insurer
for services performed by the administrator.
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(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.
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(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.
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(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.
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Provided, however, that "Plan Sponsor" shall not include:
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(1) The employer in the case of a plan established or | ||
maintained by a
single employer; or
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(2) The employee organization in the case of a plan | ||
established or
maintained by an employee organization.
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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.
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(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).
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(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.
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(k) "Insurer" means any person who transacts insurance or | ||
health care
service business authorized under the laws of this | ||
State.
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(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.
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(Source: P.A. 84-1431 .)
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