093_HB1694eng

 
HB1694 Engrossed                     LRB093 04833 JLS 04889 b

 1        AN ACT concerning insurance.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Limited Health Service  Organization  Act
 5    is amended by changing Section 2005 as follows:

 6        (215 ILCS 130/2005) (from Ch. 73, par. 1502-5)
 7        Sec. 2005.  Claims Liabilities.
 8        (a)  A  Every  limited health service organization shall,
 9    at all times, maintain liabilities in an amount estimated  in
10    the  aggregate  to  provide  for  the  payment  of all claims
11    incurred and any due and unpaid provider capitation,  whether
12    reported  or  unreported, which are unpaid and for which such
13    organization is or may be liable,  and  to  provide  for  the
14    expense  of  adjustment  or  settlement of such claims.  Such
15    liabilities shall be computed in accordance with  regulations
16    promulgated  by the Director upon reasonable consideration of
17    the ascertained experience and character of such business for
18    the purpose of adequately protecting enrollees  and  securing
19    the solvency of such organizations.
20        (b)  Whenever  the  claim and claim expense experience of
21    any such organization shows  the  liabilities  calculated  in
22    accordance  with  such  regulations  to  be  inadequate,  the
23    Director may require such organization to maintain additional
24    liabilities.
25    (Source: P.A. 86-600.)