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91_SB0440
LRB9100479JSgc
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
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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
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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.