Public Act 094-1037
 		





SB0916 Enrolled
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: 


 
    Section 5. The Illinois Insurance Code is amended  by adding 
Section 368f as follows:
 
    (215 ILCS 5/368f  new)
    Sec. 368f. Military service member insurance 
reinstatement.
    (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.
 

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