101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2746

 

Introduced 2/4/2020___________, by

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/155.47 new
215 ILCS 5/155.48 new

    Amends the Illinois Insurance Code. Prohibits mandatory arbitration clauses in fully insured life, health, or disability insurance policies. Prohibits clauses in life, health, or disability insurance policies that reserve discretion to the insurer to interpret the terms of the contract or that provide standards of interpretation or review that are inconsistent with the laws of this State. Effective immediately.


LRB101 16113 BMS 65476 b

 

 

A BILL FOR

 

SB2746LRB101 16113 BMS 65476 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by adding
5Sections 155.47 and 155.48 as follows:
 
6    (215 ILCS 5/155.47 new)
7    Sec. 155.47. Prohibition on discretionary clauses. No
8policy, contract, certificate, endorsement, rider application,
9or agreement amended, delivered, issued, or renewed in this
10State on or after January 1, 2021 to provide, deliver, arrange
11for, pay for, or reimburse any of the costs of life and
12accidental death and dismemberment insurance, health care
13services, or disability income may contain a provision that
14purports to reserve discretion to the insurer to interpret the
15terms of the contract or to provide standards of interpretation
16or review that are inconsistent with the laws of this State.
 
17    (215 ILCS 5/155.48 new)
18    Sec. 155.48. Prohibition on mandatory arbitration clauses.
19No fully insured health, life, and disability income insurance
20policy amended, delivered, issued, or renewed in this State on
21or after January 1, 2021 shall require any dispute with respect
22to coverage or the amount of reimbursement be submitted for

 

 

SB2746- 2 -LRB101 16113 BMS 65476 b

1arbitration.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.