State of Illinois
2017 and 2018


Introduced 1/24/2017, by Sen. John J. Cullerton


215 ILCS 125/2-6  from Ch. 111 1/2, par. 1406.2

    Amends the Health Maintenance Organization Act. Makes a technical change in a Section concerning deposits with the Director of Insurance.

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SB0309LRB100 05111 SMS 15121 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Health Maintenance Organization Act is
5amended by changing Section 2-6 as follows:
6    (215 ILCS 125/2-6)  (from Ch. 111 1/2, par. 1406.2)
7    Sec. 2-6. Statutory deposits.
8    (a) An organization subject to the the provisions of this
9Act shall make and maintain with the Director through December
1030, 1993, for the protection of enrollees of the organization,
11a deposit of securities which are authorized investments under
12paragraphs (1) and (2) of subsection (h) of Section 3-1 having
13a fair market value equal to at least $100,000. Effective
14December 31, 1993 and through December 30, 1994, the deposit
15shall have a fair market value at least equal to $200,000.
16Effective December 31, 1994 and thereafter, the deposit shall
17have a fair market value at least equal to $300,000. An
18organization issued a certificate of authority on or after the
19effective date of this Amendatory Act of 1993, shall make and
20maintain with the Director; for the protection of enrollees of
21the organization, a deposit of securities which are authorized
22investments under paragraphs (1) and (2) of subsection (h) of
23Section 3-1 having a fair market value equal to at least



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1$300,000. The amount on deposit shall remain as an admitted
2asset of the organization in the determination of its net
3worth. The Director may release the required deposit of
4securities upon receipt of an order of a court having proper
5jurisdiction or upon: (i) certification by the organization
6that it has no outstanding enrollee creditors, enrollees,
7certificate holders, or enrollee obligations in effect and no
8plans to engage in the business of insurance as a health
9maintenance organization; (ii) receipt of a lawful resolution
10of the organization's governing body effecting the surrender of
11its certificate of authority, articles of incorporation, or
12other organizational documents to their issuing governmental
13officer for voluntary or administrative dissolution; and (iii)
14receipt of the name and forwarding address for each of the
15final officers and directors of the organization, together with
16a plan of dissolution approved by the Director.
17    (b) An organization that offers a point-of-service
18product, as permitted by Article 4.5, must maintain an
19additional deposit in an amount that is not less than the
20greater of 125% of the organization's annual projected
21point-of-service claims or $300,000.
22(Source: P.A. 92-75, eff. 7-12-01; 92-135, eff. 1-1-02; 92-651,
23eff. 7-11-02.)