Public Act 094-0858
 		





SB2375 Enrolled
LRB094 17360 LJB 52655 b






    AN ACT concerning insurance.

 
    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 367f as follows:
 



    (215 ILCS 5/367f)  (from Ch. 73, par. 979f)



    Sec. 367f. Firemen's continuance privilege. As used in this 
Section:

    1.  The terms "municipality", "deferred pensioner" and 
"creditable service"
shall have the meaning ascribed to such 
terms by Sections 4-103, 4-105a and
4-108, respectively, of the 
Illinois Pension Code, as now or hereafter amended.

    2.  The terms "fireman" and "firemen" shall have the meaning 
ascribed
to the term "firefighter" by Section 4-106 of the 
Illinois
Pension Code, and include those persons under the 
coverage of Article 4 of
that Code, as heretofore or hereafter 
amended.

    3.  The "retirement or disability period" of a fireman means 
the period:


        a.  which begins on the day the fireman is removed from 
    a municipality's
fire department payroll because of the 
    occurrence of any of the following
events, to wit:  (i) the 
    fireman retires as a deferred pensioner under Section

    4-105a of the Illinois Pension Code, (ii) the fireman 
    retires from active
service as a fireman with an attained 
    age and accumulated creditable service
which together 
    qualify the fireman for immediate receipt of retirement 
    pension
benefits under Section 4-109 of the Illinois 
    Pension Code, or (iii) the
fireman's disability is 
    established under Section 4-112 of the Illinois
Pension 
    Code; and


        b. which ends on the first to occur of any of the 
    following events,
to wit:  (i) the fireman's reinstatement 
    or reentry into active service
on the municipality's fire 
    department as provided for under Article 4 of
the Illinois 
    Pension Code, (ii) the fireman's exercise of any refund 
    option
available under Section 4-116 of the Illinois 
    Pension Code, (iii) the fireman's
loss pursuant to Section 
    4-138 of the Illinois Pension Code of any benefits
provided 
    for in Article 4 of that Code, or (iv) the fireman's death 
    or --
if at the time of the fireman's death the fireman is 
    survived by a spouse
who, in that capacity, is entitled to 
    receive a surviving spouse's monthly
pension pursuant to 
    Article 4 of the Illinois Pension Code -- then the death
or 
    remarriage of that spouse.

    No policy of group accident and health insurance under 
which firemen
employed by a municipality are insured for their 
individual benefit shall
be issued or delivered in this State 
to any municipality unless such group
policy provides for the 
election of continued group insurance coverage for
the 
retirement or disability period of each fireman who is insured 
under the
provisions of the group policy on the day immediately 
preceding the day
on which the retirement or disability period 
of such fireman begins.  So
long as any required premiums for 
continued group insurance coverage are
paid in accordance with 
the provisions of the group policy, an election
made pursuant 
to this Section shall provide continued group insurance

coverage for a fireman throughout the retirement or disability 
period of
the fireman and, unless the fireman otherwise elects 
and subject to any
other provisions of the group policy which 
relate either to the provision
or to the termination of 
dependents' coverage and which are not
inconsistent with this 
Section, for any dependents of the fireman who are
insured 
under the group policy on the day immediately preceding the day 
on
which the retirement or disability period of the fireman 
begins; provided,
however, that when such continued group 
insurance coverage is in effect
with respect to a fireman on 
the date
of the fireman's death but the retirement or 
disability period of the fireman
does not end with such 
fireman's death, then the deceased fireman's surviving
spouse 
upon whose death or remarriage such retirement or disability 
period
will end shall be entitled, without further election and 
upon payment of
any required premiums in accordance with the 
provisions of the group policy,
to maintain such continued 
group
insurance coverage in effect until the end of such 
retirement or disability
period.  Continued group insurance 
coverage shall be provided in accordance
with this Section at 
the same premium rate from time to time charged for
equivalent 
coverage provided under the group policy with respect to 
covered
firemen whose retirement or disability period has not 
begun, and no distinction
or discrimination in the amount or 
rate of premiums or in any waiver of premium
or other benefit 
provision shall be made between continued group insurance

coverage elected pursuant to this Section and equivalent 
coverage provided
to firemen under the group policy other than 
pursuant to the provisions
of this Section; provided that no 
municipality shall be required by reason
of any provision of 
this Section to pay any group insurance premium other
than one 
that may be negotiated in a collective bargaining agreement.
If 
a person electing continued coverage under this Section becomes

eligible for medicare coverage, benefits under the group policy 
may
continue as a supplement to the medicare coverage upon 
payment of any
required premiums to maintain the benefits of 
the group policy as
supplemental coverage.

    Within 15 days of the beginning of the retirement or 
disability period
of any fireman entitled to elect continued 
group insurance coverage under any
group policy affected by 
this Section, the municipality last employing such
fireman 
shall give written notice of such beginning by certified mail, 
return
receipt requested to the insurance company issuing such 
policy.  The notice
shall include the fireman's name and last 
known place of residence and the
beginning date of the 
fireman's retirement or disability period.

    Within 15 days of the date of receipt of such notice from 
the municipality,
the insurance company by certified mail, 
return receipt requested, shall
give written notice to the 
fireman at the fireman's last known place of
residence that 
coverage under the group policy may be continued for the

retirement or disability period of the fireman as provided in 
this Section.
Such notice shall set forth:  (i) a statement of 
election to be filed by
the fireman if the fireman wishes to 
continue such group insurance coverage,
(ii) the amount of 
monthly premium, including a statement of the portion
of such 
monthly premium attributable to any dependents' coverage which 
the
fireman may elect, and (iii) instructions as to the return 
of the election
form to the insurance company issuing such 
policy.  Election shall be made,
if at all, by returning the 
statement of election to the insurance company by
certified 
mail, return receipt requested within 15 days after having 
received it.

    If the fireman elects to continue coverage, it shall be the 
obligation
of the fireman to pay the monthly premium directly 
to the municipality which
shall forward it to the insurance 
company
issuing the group insurance policy, or as otherwise 
directed by the insurance
company; provided, however, that the 
fireman shall be entitled to designate
on the statement of 
election required to be filed with the insurance company
that 
the total monthly premium, or such portion thereof as is not

contributed by a municipality, be deducted by a Firefighter's 
Pension
Fund from any monthly pension payment otherwise payable

to or on behalf of the fireman pursuant to Article 4 of the 
Illinois Pension
Code, and be remitted by such Pension Fund to 
the insurance company.  The
portion, if any, of the monthly 
premium contributed by a
municipality for such continued group 
insurance coverage shall be paid by
the municipality directly 
to the insurance company issuing the group insurance
policy, or 
as otherwise directed by the insurance company.  Such continued

group insurance coverage shall relate back to the beginning of 
the fireman's
retirement or disability period.

    The amendment, renewal or extension of any group insurance 
policy affected
by this Section shall be deemed to be the 
issuance of a new policy of insurance
for purposes of this 
Section.

    In the event that a municipality makes a program of 
accident, health,
hospital or medical benefits available to its 
firemen through
self-insurance, or by participation in a pool 
or reciprocal insurer, or by
contract in a form other than a 
policy of group insurance with one or more
medical service 
plans, health care service corporations, health maintenance

organizations, or any other professional corporations or plans 
under which
health care or reimbursement for the costs thereof 
is
provided, whether the cost of such benefits is borne by the 
municipality or
the firemen or both, such firemen and their 
surviving spouses shall have
the same right to elect continued 
coverage under such program of benefits
as they would have if 
such benefits were provided by a policy of group
accident and 
health insurance.  In such cases, the notice of right to elect

continued coverage shall be sent by the municipality; the 
statement of
election shall be sent to the municipality; and 
references to the required
premium shall refer to that portion 
of the cost of such benefits which is not
borne by the 
municipality, either voluntarily or pursuant to the provisions

of a collective bargaining agreement.  In the case of a 
municipality
providing such benefits through self-insurance or 
participation in a pool or
reciprocal insurer, the right to 
elect continued coverage which is provided
by this paragraph 
shall be implemented and made available to the firemen of
the 
municipality and qualifying surviving spouses not later than 
July 1, 1985.

    The amendment, renewal or extension of any such contract in 
a form other
than a policy of group insurance policy shall be 
deemed the formation of a
new contract for the purposes of this 
Section.

    This Section shall not limit the exercise of any conversion 
privileges
available under Section 367e.

    Pursuant to paragraphs (h) and (i) of Section 6 of Article 
VII of the
Illinois Constitution, this Section specifically 
denies and limits the
exercise by a home rule unit of any power 
which is inconsistent with this
Section and all existing laws 
and ordinances which are inconsistent with
this Section are 
hereby superseded.  This Section does not preempt the
concurrent 
exercise by home rule units of powers consistent herewith.
    The Division of Insurance of the Department of Financial 
and Professional Regulation shall enforce the provisions of 
this Section, including provisions relating to municipality 
self-insured benefit plans.


(Source: P.A. 86-1444.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.