Rep. Rita Mayfield

Filed: 3/1/2022

 

 


 

 


 
10200HB0228ham002LRB102 04105 BMS 36754 a

1
AMENDMENT TO HOUSE BILL 228

2    AMENDMENT NO. ______. Amend House Bill 228 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Insurance Code is amended by
5changing Section 236 as follows:
 
6    (215 ILCS 5/236)  (from Ch. 73, par. 848)
7    Sec. 236. Discrimination prohibited.
8    (a) No life company doing business in this State shall
9make or permit any distinction or discrimination in favor of
10individuals among insured persons of the same class and equal
11expectation of life in the issuance of its policies, in the
12amount of payment of premiums or rates charged for policies of
13insurance, in the amount of any dividends or other benefits
14payable thereon, or in any other of the terms and conditions of
15the contracts it makes.
16    (b) No life company shall make or permit any distinction

 

 

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1or discrimination against individuals with disabilities in the
2amount of payment of premiums or rates charged for policies of
3life insurance, in the amount of any dividends or death
4benefits payable thereon, or in any other terms and conditions
5of the contract it makes unless the rate differential is based
6on sound actuarial principles and a reasonable system of
7classification and is related to actual or reasonably
8anticipated experience directly associated with the
9disability.
10    (c) No life company shall refuse to insure, or refuse to
11continue to insure, or limit the amount or extent or kind of
12coverage available to an individual, or charge an individual a
13different rate for the same coverage solely because of
14blindness or partial blindness. With respect to all other
15conditions, including the underlying cause of the blindness or
16partial blindness, persons who are blind or partially blind
17shall be subject to the same standards of sound actuarial
18principles or actual or reasonably anticipated experience as
19are sighted persons. Refusal to insure includes denial by an
20insurer of disability insurance coverage on the grounds that
21the policy defines "disability" as being presumed in the event
22that the insured loses his or her eyesight. However, an
23insurer may exclude from coverage disabilities consisting
24solely of blindness or partial blindness when such condition
25existed at the time the policy was issued.
26    (d) No life company shall refuse to insure or to continue

 

 

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1to insure an individual solely because of the individual's
2status as a member of the United States Air Force, Army, Coast
3Guard, Marines, or Navy or solely because of the individual's
4status as a member of the National Guard or Armed Forces
5Reserve.
6    (e) An insurer or producer authorized to issue policies of
7insurance in this State may not make a distinction or
8otherwise discriminate between persons, reject an applicant,
9cancel a policy, or demand or require a higher rate of premium
10for reasons based solely upon an applicant's or insured's past
11lawful travel experiences or future lawful travel plans. This
12subsection (e) does not prohibit an insurer or producer from
13excluding or limiting coverage under a policy or refusing to
14offer the policy based upon past lawful travel or future
15lawful travel plans or from charging a different rate for that
16coverage when that action is based upon sound actuarial
17principles or is related to actual or reasonably expected
18experience and is not based solely on the destination's
19inclusion on the United States Department of State's travel
20warning list.
21    (f) With respect to life insurance final expense policies,
22no life company authorized to issue these policies in this
23State shall refuse to insure, refuse to continue to insure,
24limit the amount, extent, or kind of coverage available to, or
25charge an individual a different rate for the same coverage
26solely on the basis that an insured or applicant has been

 

 

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1convicted of a felony. Nothing in this subsection shall be
2construed to require a life company to issue or otherwise
3provide coverage for a life insurance policy to a person who is
4actively incarcerated pursuant to a felony conviction. As used
5in this subsection, "final expense policy" means a policy
6marketed and sold exclusively to cover costs associated with
7funeral and burial expenses.
8(Source: P.A. 99-143, eff. 7-27-15.)".