Illinois General Assembly - Illinois Compiled Statutes

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215 ILCS 5/367i

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

Sec. 367i. Discontinuance and replacement of coverage.

Group health
insurance policies issued, amended, delivered or renewed on and after the
effective date of this amendatory Act of 1989, shall provide a reasonable
extension of benefits in the event of total disability on the date the
policy is discontinued for any reason.

Any applicable extension of benefits or accrued liability shall be
described in the policy and group certificate.  Benefits payable during any
extension of benefits may be subject to the policy's regular benefit limits.

Any insurer discontinuing a group health insurance policy shall provide
to the policyholder for delivery to covered employees or members a notice
as to the date such discontinuation is to be effective and urging them to
refer to their group certificates to determine what contract rights, if
any, are available to them.

In the event a discontinued policy is replaced by another group policy,
the prior insurer or plan shall be liable only to the extent of its accrued
liabilities and extension of benefits.  Persons eligible for coverage
under the succeeding insurer's plan shall include all
employees and dependents covered under the prior insurer's plan, including
individuals with disabilities covered under the prior plan but absent from work on the
effective date and thereafter.  The prior insurer shall provide extension of
benefits for an insured's disabling condition when no coverage is available
under the succeeding insurer's plan whether due to the absence of coverage in
the contract or lack of required creditable coverage for a preexisting
condition.

The Director shall promulgate reasonable rules as necessary to carry
out this Section.

(Source: P.A. 99-143, eff. 7-27-15.)