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Public Act 095-0163


 

Public Act 0163 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0163
 
HB2786 Enrolled LRB095 09637 KBJ 29837 b

    AN ACT concerning insurance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Insurance Code is amended by
changing Section 236 as follows:
 
    (215 ILCS 5/236)  (from Ch. 73, par. 848)
    Sec. 236. Discrimination prohibited.
    (a) No life company doing business in this State shall make
or permit any distinction or discrimination in favor of
individuals among insured persons of the same class and equal
expectation of life in the issuance of its policies, in the
amount of payment of premiums or rates charged for policies of
insurance, in the amount of any dividends or other benefits
payable thereon, or in any other of the terms and conditions of
the contracts it makes.
    (b) No life company shall make or permit any distinction or
discrimination against individuals with handicaps or
disabilities in the amount of payment of premiums or rates
charged for policies of life insurance, in the amount of any
dividends or death benefits payable thereon, or in any other
terms and conditions of the contract it makes unless the rate
differential is based on sound actuarial principles and a
reasonable system of classification and is related to actual or
reasonably anticipated experience directly associated with the
handicap or disability.
    (c) No life company shall refuse to insure, or refuse to
continue to insure, or limit the amount or extent or kind of
coverage available to an individual, or charge an individual a
different rate for the same coverage solely because of
blindness or partial blindness. With respect to all other
conditions, including the underlying cause of the blindness or
partial blindness, persons who are blind or partially blind
shall be subject to the same standards of sound actuarial
principles or actual or reasonably anticipated experience as
are sighted persons. Refusal to insure includes denial by an
insurer of disability insurance coverage on the grounds that
the policy defines "disability" as being presumed in the event
that the insured loses his or her eyesight. However, an insurer
may exclude from coverage disabilities consisting solely of
blindness or partial blindness when such condition existed at
the time the policy was issued.
    (d) No life company shall refuse to insure or to continue
to insure an individual solely because of the individual's
status as a member of the United States Air Force, Army, Coast
Guard, Marines, or Navy or solely because of the individual's
status as a member of the National Guard or Armed Forces
Reserve.
    (e) An insurer or producer authorized to issue policies of
insurance in this State may not make a distinction or otherwise
discriminate between persons, reject an applicant, cancel a
policy, or demand or require a higher rate of premium for
reasons based solely upon an applicant's or insured's past
lawful travel experiences or future lawful travel plans. This
subsection (e) does not prohibit an insurer or producer from
excluding or limiting coverage under a policy or refusing to
offer the policy based upon past lawful travel or future lawful
travel plans or from charging a different rate for that
coverage when that action is based upon sound actuarial
principles or is related to actual or reasonably expected
experience and is not based solely on the destination's
inclusion on the United States Department of State's travel
warning list. No life company may refuse to insure, refuse to
continue to insure, limit the amount or extent or kind of
coverage available to an individual, or charge an individual a
different rate for the same coverage solely for reasons
associated with an applicant's or insured's past lawful travel
experiences.
(Source: P.A. 93-850, eff. 7-30-04.)

Effective Date: 1/1/2008