Bill Text: IL SB0309 | 2017-2018 | 100th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Health Maintenance Organization Act. Makes a technical change in a Section concerning deposits with the Director of Insurance.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Passed) 2018-12-20 - Public Act . . . . . . . . . 100-1160 [SB0309 Detail]

Download: Illinois-2017-SB0309-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB0309 Introduced 1/24/2017, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED:
215 ILCS 125/2-6 from Ch. 111 1/2, par. 1406.2
Amends the Health Maintenance Organization Act. Makes a technical change in a Section concerning deposits with the Director of Insurance.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Health Maintenance Organization Act is
amended by changing Section 2-6 as follows:
(215 ILCS 125/2-6) (from Ch. 111 1/2, par. 1406.2)
Sec. 2-6. Statutory deposits.
(a) An organization subject to the the provisions of this
Act shall make and maintain with the Director through December
30, 1993, for the protection of enrollees of the organization,
a deposit of securities which are authorized investments under
paragraphs (1) and (2) of subsection (h) of Section 3-1 having
a fair market value equal to at least $100,000. Effective
December 31, 1993 and through December 30, 1994, the deposit
shall have a fair market value at least equal to $200,000.
Effective December 31, 1994 and thereafter, the deposit shall
have a fair market value at least equal to $300,000. An
organization issued a certificate of authority on or after the
effective date of this Amendatory Act of 1993, shall make and
maintain with the Director; for the protection of enrollees of
the organization, a deposit of securities which are authorized
investments under paragraphs (1) and (2) of subsection (h) of
Section 3-1 having a fair market value equal to at least

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$300,000. The amount on deposit shall remain as an admitted
asset of the organization in the determination of its net
worth. The Director may release the required deposit of
securities upon receipt of an order of a court having proper
jurisdiction or upon: (i) certification by the organization
that it has no outstanding enrollee creditors, enrollees,
certificate holders, or enrollee obligations in effect and no
plans to engage in the business of insurance as a health
maintenance organization; (ii) receipt of a lawful resolution
of the organization's governing body effecting the surrender of
its certificate of authority, articles of incorporation, or
other organizational documents to their issuing governmental
officer for voluntary or administrative dissolution; and (iii)
receipt of the name and forwarding address for each of the
final officers and directors of the organization, together with
a plan of dissolution approved by the Director.
(b) An organization that offers a point-of-service
product, as permitted by Article 4.5, must maintain an
additional deposit in an amount that is not less than the
greater of 125% of the organization's annual projected
point-of-service claims or $300,000.
(Source: P.A. 92-75, eff. 7-12-01; 92-135, eff. 1-1-02; 92-651,
eff. 7-11-02.)