99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2478
 
Introduced , by Rep. Lou Lang
 
SYNOPSIS AS INTRODUCED:






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

 Amends the Illinois Insurance Code. Makes a technical change in a Section concerning the firemen's continuance privilege.



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A BILL FOR
 


HB2478LRB099 07609 JLS 27739 b



1 AN ACT concerning insurance.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Insurance Code is amended by 
5changing Section 367f as follows:




6 (215 ILCS 5/367f) (from Ch. 73, par. 979f)



7 Sec. 367f. Firemen's continuance privilege. As used in this 
8Section:

9 1. The The terms "municipality", "deferred pensioner" and 
10"creditable service"
shall have the meaning ascribed to such 
11terms by Sections 4-103, 4-105a and
4-108, respectively, of the 
12Illinois Pension Code, as now or hereafter amended.

13 2. The terms "fireman" and "firemen" shall have the meaning 
14ascribed
to the term "firefighter" by Section 4-106 of the 
15Illinois
Pension Code, and include those persons under the 
16coverage of Article 4 of
that Code, as heretofore or hereafter 
17amended.

18 3. The "retirement or disability period" of a fireman means 
19the period:


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

 
 
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1 4-105a of the Illinois Pension Code, (ii) the fireman 
2 retires from active
service as a fireman with an attained 
3 age and accumulated creditable service
which together 
4 qualify the fireman for immediate receipt of retirement 
5 pension
benefits under Section 4-109 of the Illinois 
6 Pension Code, or (iii) the
fireman's disability is 
7 established under Section 4-112 of the Illinois
Pension 
8 Code; and


9  b. which ends on the first to occur of any of the 
10 following events,
to wit: (i) the fireman's reinstatement 
11 or reentry into active service
on the municipality's fire 
12 department as provided for under Article 4 of
the Illinois 
13 Pension Code, (ii) the fireman's exercise of any refund 
14 option
available under Section 4-116 of the Illinois 
15 Pension Code, (iii) the fireman's
loss pursuant to Section 
16 4-138 of the Illinois Pension Code of any benefits
provided 
17 for in Article 4 of that Code, or (iv) the fireman's death 
18 or --
if at the time of the fireman's death the fireman is 
19 survived by a spouse
who, in that capacity, is entitled to 
20 receive a surviving spouse's monthly
pension pursuant to 
21 Article 4 of the Illinois Pension Code -- then the death
or 
22 remarriage of that spouse.

23 No policy of group accident and health insurance under 
24which firemen
employed by a municipality are insured for their 
25individual benefit shall
be issued or delivered in this State 
26to any municipality unless such group
policy provides for the 
 
 
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1election of continued group insurance coverage for
the 
2retirement or disability period of each fireman who is insured 
3under the
provisions of the group policy on the day immediately 
4preceding the day
on which the retirement or disability period 
5of such fireman begins. So
long as any required premiums for 
6continued group insurance coverage are
paid in accordance with 
7the provisions of the group policy, an election
made pursuant 
8to this Section shall provide continued group insurance

9coverage for a fireman throughout the retirement or disability 
10period of
the fireman and, unless the fireman otherwise elects 
11and subject to any
other provisions of the group policy which 
12relate either to the provision
or to the termination of 
13dependents' coverage and which are not
inconsistent with this 
14Section, for any dependents of the fireman who are
insured 
15under the group policy on the day immediately preceding the day 
16on
which the retirement or disability period of the fireman 
17begins; provided,
however, that when such continued group 
18insurance coverage is in effect
with respect to a fireman on 
19the date
of the fireman's death but the retirement or 
20disability period of the fireman
does not end with such 
21fireman's death, then the deceased fireman's surviving
spouse 
22upon whose death or remarriage such retirement or disability 
23period
will end shall be entitled, without further election and 
24upon payment of
any required premiums in accordance with the 
25provisions of the group policy,
to maintain such continued 
26group
insurance coverage in effect until the end of such 
 
 
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1retirement or disability
period. Continued group insurance 
2coverage shall be provided in accordance
with this Section at 
3the same premium rate from time to time charged for
equivalent 
4coverage provided under the group policy with respect to 
5covered
firemen whose retirement or disability period has not 
6begun, and no distinction
or discrimination in the amount or 
7rate of premiums or in any waiver of premium
or other benefit 
8provision shall be made between continued group insurance

9coverage elected pursuant to this Section and equivalent 
10coverage provided
to firemen under the group policy other than 
11pursuant to the provisions
of this Section; provided that no 
12municipality shall be required by reason
of any provision of 
13this Section to pay any group insurance premium other
than one 
14that may be negotiated in a collective bargaining agreement.
If 
15a person electing continued coverage under this Section becomes

16eligible for medicare coverage, benefits under the group policy 
17may
continue as a supplement to the medicare coverage upon 
18payment of any
required premiums to maintain the benefits of 
19the group policy as
supplemental coverage.

20 Within 15 days of the beginning of the retirement or 
21disability period
of any fireman entitled to elect continued 
22group insurance coverage under any
group policy affected by 
23this Section, the municipality last employing such
fireman 
24shall give written notice of such beginning by certified mail, 
25return
receipt requested to the insurance company issuing such 
26policy. The notice
shall include the fireman's name and last 
 
 
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1known place of residence and the
beginning date of the 
2fireman's retirement or disability period.

3 Within 15 days of the date of receipt of such notice from 
4the municipality,
the insurance company by certified mail, 
5return receipt requested, shall
give written notice to the 
6fireman at the fireman's last known place of
residence that 
7coverage under the group policy may be continued for the

8retirement or disability period of the fireman as provided in 
9this Section.
Such notice shall set forth: (i) a statement of 
10election to be filed by
the fireman if the fireman wishes to 
11continue such group insurance coverage,
(ii) the amount of 
12monthly premium, including a statement of the portion
of such 
13monthly premium attributable to any dependents' coverage which 
14the
fireman may elect, and (iii) instructions as to the return 
15of the election
form to the insurance company issuing such 
16policy. Election shall be made,
if at all, by returning the 
17statement of election to the insurance company by
certified 
18mail, return receipt requested within 15 days after having 
19received it.

20 If the fireman elects to continue coverage, it shall be the 
21obligation
of the fireman to pay the monthly premium directly 
22to the municipality which
shall forward it to the insurance 
23company
issuing the group insurance policy, or as otherwise 
24directed by the insurance
company; provided, however, that the 
25fireman shall be entitled to designate
on the statement of 
26election required to be filed with the insurance company
that 
 
 
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1the total monthly premium, or such portion thereof as is not

2contributed by a municipality, be deducted by a Firefighter's 
3Pension
Fund from any monthly pension payment otherwise payable

4to or on behalf of the fireman pursuant to Article 4 of the 
5Illinois Pension
Code, and be remitted by such Pension Fund to 
6the insurance company. The
portion, if any, of the monthly 
7premium contributed by a
municipality for such continued group 
8insurance coverage shall be paid by
the municipality directly 
9to the insurance company issuing the group insurance
policy, or 
10as otherwise directed by the insurance company. Such continued

11group insurance coverage shall relate back to the beginning of 
12the fireman's
retirement or disability period.

13 The amendment, renewal or extension of any group insurance 
14policy affected
by this Section shall be deemed to be the 
15issuance of a new policy of insurance
for purposes of this 
16Section.

17 In the event that a municipality makes a program of 
18accident, health,
hospital or medical benefits available to its 
19firemen through
self-insurance, or by participation in a pool 
20or reciprocal insurer, or by
contract in a form other than a 
21policy of group insurance with one or more
medical service 
22plans, health care service corporations, health maintenance

23organizations, or any other professional corporations or plans 
24under which
health care or reimbursement for the costs thereof 
25is
provided, whether the cost of such benefits is borne by the 
26municipality or
the firemen or both, such firemen and their 
 
 
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1surviving spouses shall have
the same right to elect continued 
2coverage under such program of benefits
as they would have if 
3such benefits were provided by a policy of group
accident and 
4health insurance. In such cases, the notice of right to elect

5continued coverage shall be sent by the municipality; the 
6statement of
election shall be sent to the municipality; and 
7references to the required
premium shall refer to that portion 
8of the cost of such benefits which is not
borne by the 
9municipality, either voluntarily or pursuant to the provisions

10of a collective bargaining agreement. In the case of a 
11municipality
providing such benefits through self-insurance or 
12participation in a pool or
reciprocal insurer, the right to 
13elect continued coverage which is provided
by this paragraph 
14shall be implemented and made available to the firemen of
the 
15municipality and qualifying surviving spouses not later than 
16July 1, 1985.

17 The amendment, renewal or extension of any such contract in 
18a form other
than a policy of group insurance policy shall be 
19deemed the formation of a
new contract for the purposes of this 
20Section.

21 This Section shall not limit the exercise of any conversion 
22privileges
available under Section 367e.

23 Pursuant to paragraphs (h) and (i) of Section 6 of Article 
24VII of the
Illinois Constitution, this Section specifically 
25denies and limits the
exercise by a home rule unit of any power 
26which is inconsistent with this
Section and all existing laws 
 
 
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1and ordinances which are inconsistent with
this Section are 
2hereby superseded. This Section does not preempt the
concurrent 
3exercise by home rule units of powers consistent herewith.
4 The Division of Insurance of the Department of Financial 
5and Professional Regulation shall enforce the provisions of 
6this Section, including provisions relating to municipality 
7self-insured benefit plans.


8(Source: P.A. 94-858, eff. 6-15-06.)