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(215 ILCS 5/224.1) (from Ch. 73, par. 836.1)
Sec. 224.1.
Employer insurable interest.
Notwithstanding any other
Section of this Code, an employer or an employer sponsored trust for the
benefit of its employees has an insurable interest in the lives of the
employer's directors, officers, managers, nonmanagement employees, and
retired employees and may insure those lives on an individual or group
basis with the consent of the insured. The consent requirement will be
satisfied if the insured is provided written notice of the coverage and
does not reject such coverage within 30 days of receipt of such notice. The
extent of the employer's or the trust's insurable interest for nonmanagement
and retired employees shall be limited to an amount commensurate with the
employer's projected unfunded liabilities to nonmanagement and retired
employees for welfare benefit plans, as defined by the Employee Retirement
Income Security Act of 1974, Public Law 93-406, 88 Stat. 829, calculated
according to accepted actuarial principles. An insurable interest must exist
at the time the contract of life or disability insurance becomes effective, but
need not exist at the time the loss occurs. An employer shall not retaliate in
any manner against an employee or a retired employee for refusing consent to be
insured. The proceeds of any policy or certificate issued pursuant to this
Section are exempt from the claims of any creditor or dependent of the insured.
As used herein, "employer" means an individual, sole proprietorship,
partnership, firm, corporation, association, or any other legal entity that has
one or more employees and is legally doing business in this State.
(Source: P.A. 87-936.)
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