Illinois General Assembly - Illinois Compiled Statutes

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215 ILCS 5/367a

(215 ILCS 5/367a) (from Ch. 73, par. 979a)

Sec. 367a.

Blanket
accident and health insurance.

(1) Blanket accident and health insurance is that form of accident and
health insurance covering special groups of persons as enumerated in one of
the following paragraphs (a) to (g), inclusive:

(a) Under a policy or contract issued to any carrier for hire, which
shall be deemed the policyholder, covering a group defined as all persons
who may become passengers on such carrier.

(b) Under a policy or contract issued to an employer, who shall be
deemed the policyholder, covering all employees or any group of employees
defined by reference to exceptional hazards incident to such employment.

(c) Under a policy or contract issued to a college, school, or other
institution of learning or to the head or principal thereof, who or which
shall be deemed the policyholder, covering students or teachers.

(d) Under a policy or contract issued in the name of any volunteer fire
department, first aid, or other such volunteer group, which shall be deemed
the policyholder, covering all of the members of such department or group.

(e) Under a policy or contract issued to a creditor, who shall be deemed
the policyholder, to insure debtors of the creditors; Provided, however,
that in the case of a loan which is subject to the Small Loans Act, no
insurance premium or other cost shall be directly or indirectly charged or
assessed against, or collected or received from the borrower.

(f) Under a policy or contract issued to a sports team or to a camp,
which team or camp sponsor shall be deemed the policyholder, covering
members or campers.

(g) Under a policy or contract issued to any other substantially similar
group which, in the discretion of the Director, may be subject to the
issuance of a blanket accident and health policy or contract.

(2) Any insurance company authorized to write accident and health
insurance in this state shall have the power to issue blanket accident and
health insurance. No such blanket policy may be issued or delivered in this
State unless a copy of the form thereof shall have been filed in accordance
with Section 355, and it contains in substance such of those provisions
contained in Sections 357.1 through 357.30 as may be applicable to blanket accident and
health insurance and the following provisions:

(a) A provision that the policy and the application shall constitute the
entire contract between the parties, and that all statements made by the
policyholder shall, in absence of fraud, be deemed representations and not
warranties, and that no such statements shall be used in defense to a claim
under the policy, unless it is contained in a written application.

(b) A provision that to the group or class thereof originally insured
shall be added from time to time all new persons or individuals eligible
for coverage.

(3) An individual application shall not be required from a person
covered under a blanket accident or health policy or contract, nor shall it
be necessary for the insurer to furnish each person a certificate.

(4) All benefits under any blanket accident and health policy shall be
payable to the person insured, or to his designated beneficiary or
beneficiaries, or to his or her estate, except that if the person insured be a
minor or person under legal disability, such
benefits may be made payable to his or her
parent, guardian, or other person actually supporting him or her. Provided
further, however, that the policy may provide that all or any portion of
any indemnities provided by any such policy on account of hospital,
nursing, medical or surgical services may, at the insurer's option, be paid
directly to the hospital or person rendering such services; but the policy
may not require that the service be rendered by a particular hospital or
person. Payment so made shall discharge the insurer's obligation with
respect to the amount of insurance so paid.

(5) Nothing contained in this section shall be deemed to affect the
legal liability of policyholders for the death of or injury to, any such
member of such group.

(Source: P.A. 83-1362.)