State of Illinois
91st General Assembly
Legislation

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91_HB1265

 
                                               LRB9101916JSpc

 1        AN  ACT  concerning  unfair  methods  of competition with
 2    respect to the insurance business, amending named Acts.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The  Illinois  Insurance Code is amended by
 6    changing Section 424 as follows:

 7        (215 ILCS 5/424) (from Ch. 73, par. 1031)
 8        Sec. 424.  Unfair methods of competition  and  unfair  or
 9    deceptive acts or practices defined. The following are hereby
10    defined  as  unfair  methods  of  competition  and unfair and
11    deceptive acts or practices in the business of insurance:
12        (1)  The commission by any person of any one or  more  of
13    the  acts  defined  or  prohibited by Sections 134, 147, 148,
14    149, 151, 155.22, 155.22a, 236, 237,  364  and  469  of  this
15    Code.
16        (2)  Entering  into  any  agreement  to commit, or by any
17    concerted action committing, any act of boycott, coercion  or
18    intimidation   resulting   in   or   tending   to  result  in
19    unreasonable restraint of, or monopoly in,  the  business  of
20    insurance.  "Unreasonable  restraint"  includes,  but  is not
21    limited to, any formal or informal policy  that  requires  or
22    results by coercion or intimidation in a licensed health care
23    professional  agreeing  to  participate in all health care or
24    managed care plans or accident and health  policies  operated
25    by  the  insurance  company in order to participate in one or
26    more plans or policies operated  by  the  insurance  company.
27    Licensed  health  care  professionals shall be free to choose
28    the plans or policies in which to participate, and the choice
29    shall not be the ground  for  denying  participation  in  any
30    chosen  plan  or  policy.   A licensed insurance company that
31    violates this subsection engages in unlawful tying  practices
 
                            -2-                LRB9101916JSpc
 1    that  are  unfair  methods  of  competition  and  unfair  and
 2    deceptive acts or practices.
 3        (3)  Making  or  permitting,  in the case of insurance of
 4    the types enumerated in Classes 2 and 3  of  Section  4,  any
 5    unfair  discrimination  between  individuals  or risks of the
 6    same class or of essentially  the  same  hazard  and  expense
 7    element  because  of  the  race,  color, religion or national
 8    origin of such insurance risks or applicants.
 9        (4)  Engaging in any of the acts or practices defined  in
10    or  prohibited  by  Sections  154.5 through 154.8 of the this
11    Insurance Code.
12        (5)  Making or charging any rate  for  insurance  against
13    losses  arising  from the use or ownership of a motor vehicle
14    which requires a higher premium of any person  by  reason  of
15    his  physical  handicap,  race,  color,  religion or national
16    origin.
17    (Source: P.A. 90-245, eff. 1-1-98.)

18        Section 10.  The Consumer Fraud  and  Deceptive  Business
19    Practices Act is amended by adding Section 2JJ as follows:

20        (815 ILCS 505/2JJ new)
21        Sec.    2JJ.  Managed   care   provider   network   tying
22    arrangement.   A  licensed  insurance  company  that   issues
23    individual or group policies of accident and health insurance
24    or  a  managed care entity, as defined in Section 356r of the
25    Illinois Insurance Code, shall not as a matter of  formal  or
26    informal  policy  require  or  by  coercion  or  intimidation
27    persuade  a  licensed  health  care  professional to agree to
28    participate in all health  care  or  managed  care  plans  or
29    accident  and  health  policies  operated  by  the  insurance
30    company or managed care entity in order to participate in one
31    or more plans operated by the company or managed care entity.
32    Licensed  health  care  professionals shall be free to choose
 
                            -3-                LRB9101916JSpc
 1    the plans or policies in which to participate, and the choice
 2    shall not be the grounds for  denying  participation  in  any
 3    chosen  plan  or  policy.   A  licensed  insurance company or
 4    managed care entity that violates  this  Section  commits  an
 5    unlawful practice within the meaning of this Act.

 6        Section  99.  Effective date.  This Act takes effect July
 7    1, 1999.

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