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91_HB3922
LRB9111527JSks
1 AN ACT to amend the Illinois Insurance Code by changing
2 Section 367h.
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 367h as follows:
7 (215 ILCS 5/367h) (from Ch. 73, par. 979h)
8 Sec. 367h. Deputy's continuance privilege. For purposes
9 of As used in this Section:
10 1. The terms "municipality" and "creditable service"
11 shall have the meaning ascribed to such terms by Sections
12 7-105 and 7-113, respectively, of the Illinois Pension Code,
13 as now or hereafter amended.
14 The term "deferred pensioner" means a deputy who has
15 retired, having accumulated enough creditable service to
16 qualify for a pension, but who has not attained the required
17 age.
18 2. The term "deputy" shall mean a "sheriff's law
19 enforcement employee" as defined in Section 7-109.3 of the
20 Illinois Pension Code, and include only persons under the
21 coverage of Article 7 of that Code, as heretofore or
22 hereafter amended.
23 3. The "retirement or disability period" of a deputy
24 means the period:
25 a. which begins on the day the deputy is removed
26 from a sheriff's police department payroll because of the
27 occurrence of any of the following events, to wit: (i)
28 the deputy retires as a deferred pensioner, (ii) the
29 deputy retires from active service as a deputy with an
30 attained age and accumulated creditable service which
31 together qualify the deputy for immediate receipt of
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1 retirement pension benefits under Section 7-142.1 of the
2 Illinois Pension Code, or (iii) the deputy's disability
3 is established under Article 7 of the Illinois Pension
4 Code; and
5 b. which ends on the first to occur of any of the
6 following events, to wit: (i) the deputy's reinstatement
7 or reentry into active service in the sheriff's police
8 department as provided for under Article 7 of the
9 Illinois Pension Code, (ii) the deputy's exercise of any
10 refund option or acceptance of any separation benefit
11 available under Article 7 of the Illinois Pension Code,
12 (iii) the deputy's loss pursuant to Section 7-219 of the
13 Illinois Pension Code of any benefits provided for in
14 Article 7 of that Code, or (iv) the deputy's death or --
15 if at the time of the deputy's death the deputy is
16 survived by a spouse who, in that capacity, is entitled
17 to receive a surviving spouse's monthly pension pursuant
18 to Article 7 of the Illinois Pension Code -- the death or
19 remarriage of that spouse.
20 No policy of group accident and health insurance under
21 which deputies employed by a municipality are insured for
22 their individual benefit shall be issued or delivered in this
23 State to any municipality unless such group policy provides
24 for the election of continued group insurance coverage for
25 the retirement or disability period of each deputy who is
26 insured under the provisions of the group policy on the day
27 immediately preceding the day on which the retirement or
28 disability period of such deputy begins. So long as any
29 required premiums for continued group insurance coverage are
30 paid in accordance with the provisions of the group policy,
31 an election made pursuant to this Section shall provide
32 continued group insurance coverage for a deputy throughout
33 the retirement or disability period of the deputy and, unless
34 the deputy otherwise elects and subject to any other
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1 provisions of the group policy which relate either to the
2 provision or to the termination of dependents' coverage and
3 which are not inconsistent with this Section, for any
4 dependents of the deputy who are insured under the group
5 policy on the day immediately preceding the day on which the
6 retirement or disability period of the deputy begins;
7 provided, however, that when such continued group insurance
8 coverage is in effect with respect to a deputy on the date of
9 the deputy's death but the retirement or disability period of
10 the deputy does not end with such deputy's death, then the
11 deceased deputy's surviving spouse upon whose death or
12 remarriage such retirement or disability period will end
13 shall be entitled, without further election and upon payment
14 of any required premiums in accordance with the provisions of
15 the group policy, to maintain such continued group insurance
16 coverage in effect until the end of such retirement or
17 disability period. Continued group insurance coverage shall
18 be provided in accordance with this Section at the same
19 premium rate from time to time charged for equivalent
20 coverage provided under the group policy with respect to
21 covered deputies whose retirement or disability period has
22 not begun, and no distinction or discrimination in the amount
23 or rate of premiums or in any waiver of premium or other
24 benefit provision shall be made between continued group
25 insurance coverage elected pursuant to this Section and
26 equivalent coverage provided to deputies under the group
27 policy other than pursuant to the provisions of this Section;
28 provided that no municipality shall be required by reason of
29 any provision of this Section to pay any group insurance
30 premium other than one that may be negotiated in a collective
31 bargaining agreement. If the group policy provides for a
32 reduction in benefits and premium for insureds who become
33 eligible for medicare, such provision shall apply to persons
34 electing continued coverage under this Section.
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1 Within 15 days of the beginning of the retirement or
2 disability period of any deputy entitled to elect continued
3 group insurance coverage under any group policy affected by
4 this Section, the municipality last employing such deputy
5 shall give written notice of such beginning by certified
6 mail, return receipt requested, to the insurance company
7 issuing such policy. The notice shall include the deputy's
8 name and last known place of residence and the beginning date
9 of the deputy's retirement or disability period.
10 Within 15 days of the date of receipt of such notice from
11 the municipality, the insurance company by certified mail,
12 return receipt requested, shall give written notice to the
13 deputy at the deputy's last known place of residence that
14 coverage under the group policy may be continued for the
15 retirement or disability period of the deputy as provided in
16 this Section. Such notice shall set forth: (i) a statement
17 of election to be filed by the deputy if the deputy wishes to
18 continue such group insurance coverage, (ii) the amount of
19 monthly premium, including a statement of the portion of such
20 monthly premium attributable to any dependents' coverage
21 which the deputy may elect, and (iii) instructions as to the
22 return of the election form to the insurance company issuing
23 such policy. Election shall be made, if at all, by returning
24 the statement of election to the insurance company by
25 certified mail, return receipt requested, within 15 days
26 after having received it.
27 If the deputy elects to continue coverage, it shall be
28 the obligation of the deputy to pay the monthly premium
29 directly to the municipality which shall forward it to the
30 insurance company issuing the group insurance policy, or as
31 otherwise directed by the insurance company; provided,
32 however, that the deputy shall be entitled to designate on
33 the statement of election required to be filed with the
34 insurance company that the total monthly premium, or such
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1 portion thereof as is not contributed by a municipality, be
2 deducted by the Illinois Municipal Retirement Fund from the
3 monthly pension payment otherwise payable to or on behalf of
4 the deputy pursuant to Article 7 of the Illinois Pension
5 Code, and be remitted by such Fund to the insurance company.
6 The portion, if any, of the monthly premium contributed by a
7 municipality for such continued group insurance coverage
8 shall be paid by the directly to the insurance company
9 issuing the group insurance policy, or as directed by the
10 insurance company. Such continued group insurance coverage
11 shall relate back to the beginning of the deputy's retirement
12 or disability period.
13 The amendment, renewal or extension of any group
14 insurance policy affected by this Section shall be deemed to
15 be the issuance of a new policy of insurance for purposes of
16 this Section.
17 In the event that a municipality makes a program of
18 accident, health, hospital or medical benefits available to
19 its deputies through self-insurance, or by participation in a
20 pool or reciprocal insurer, or by contract in a form other
21 than a policy of group insurance with one or more medical
22 service plans, health care service corporations, health
23 maintenance organizations, or any other professional
24 corporations or plans under which health care or
25 reimbursement for the costs thereof is provided, whether the
26 cost of such benefits is borne by the municipality or the
27 deputies or both, such deputies and their surviving spouses
28 shall have the same right to elect continued coverage under
29 such program of benefits as they would have if such benefits
30 were provided by a policy of group accident and health
31 insurance. In such cases, the notice of right to elect
32 continued coverage shall be sent by the municipality; the
33 statement of election shall be sent to the municipality; and
34 references to the required premium shall refer to that
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1 portion of the cost of such benefits which is not borne by
2 the municipality, either voluntarily or pursuant to the
3 provisions of a collective bargaining agreement. In the case
4 of a municipality providing such benefits through
5 self-insurance or participation in a pool or reciprocal
6 insurer, the right to elect continued coverage which is
7 provided by this paragraph shall be implemented and made
8 available to the deputies of the municipality and qualifying
9 surviving spouses not later than July 1, 1986.
10 The amendment, renewal or extension of any such contract
11 in a form other than a policy of group insurance policy shall
12 be deemed the formation of a new contract for the purposes of
13 this Section.
14 This Section shall not limit the exercise of any
15 conversion privileges available under Section 367e.
16 (Source: P.A. 90-655, eff. 7-30-98.)