Illinois General Assembly - Full Text of SB1327

SB1327 Enrolled LRB104 10928 BAB 21010 b

AN ACT concerning regulation.

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 adding Section 370c.5 as follows:

(215 ILCS 5/370c.5 new)

Sec. 370c.5. Disability income insurance mental health and substance use disorder coverage disclosure.

(a) No group or individual policy or contract of long-term disability income insurance in this State that limits the duration of coverage for mental health and substance use disorders shall be offered without a disclosure, provided at the time of application, that includes a notification stating that:

(1) the long-term disability coverage selected by the potential policyholder or plan sponsor limits the duration of coverage for mental health or substance use disorders; and

(2) the potential policyholder or plan sponsor has the right to request more information about the limitation and other coverage options that include an unlimited duration, if available.

(b) Receipt of the disclosure described in subsection (a) must be acknowledged by the potential policyholder or plan sponsor, and evidence of the disclosure and acknowledgment must be retained by the insurance company offering the coverage.

Section 99. Effective date. This Act takes effect January 1, 2028.