(e) Unless allowed by the Director, no health maintenance
organization, officer, director, trustee, producer, or employee of such
organization may renew, issue, or deliver, or cause to be renewed, issued
or delivered, any certificate, agreement, or contract of coverage in this
State, for which a premium is charged or collected, when the organization
writing such coverage is insolvent or impaired, and the fact of such
insolvency or impairment is known to the organization, officer, director,
trustee, producer, or employee of such organization. An organization is
impaired when a deficiency exists in meeting the amounts required in
subsections (a), (b), and (d) of Section 2-4.
However, the existence of an impairment does not prevent the issuance or
renewal of a certificate, agreement or contract when the enrollee exercises
an option granted under the plan to obtain new, renewed or converted coverage.
Any organization, officer, director, trustee, producer, or employee of
such organization violating this subsection shall be guilty of a
Class A misdemeanor.
(Source: P.A. 92-135, eff. 1-1-02.)