HB2425 EngrossedLRB104 11854 BAB 21944 b HB2425 Engrossed LRB104 11854 BAB 21944 b
HB2425 Engrossed LRB104 11854 BAB 21944 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5 changing 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
9 make or permit any distinction or discrimination in favor of
10 individuals among insured persons of the same class and equal
11 expectation of life in the issuance of its policies, in the
12 amount of payment of premiums or rates charged for policies of
13 insurance, in the amount of any dividends or other benefits
14 payable thereon, or in any other of the terms and conditions of
15 the contracts it makes.
16 (b) No life company shall make or permit any distinction
17 or discrimination against individuals with disabilities in the
18 amount of payment of premiums or rates charged for policies of
19 life insurance, in the amount of any dividends or death
20 benefits payable thereon, or in any other terms and conditions
21 of the contract it makes unless the rate differential is based
22 on sound actuarial principles and a reasonable system of
23 classification and is related to actual or reasonably
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1 anticipated experience directly associated with the
2 disability.
3 (c) No life company shall refuse to insure, or refuse to
4 continue to insure, or limit the amount or extent or kind of
5 coverage available to an individual, or charge an individual a
6 different rate for the same coverage solely because of
7 blindness or partial blindness. With respect to all other
8 conditions, including the underlying cause of the blindness or
9 partial blindness, persons who are blind or partially blind
10 shall be subject to the same standards of sound actuarial
11 principles or actual or reasonably anticipated experience as
12 are sighted persons. Refusal to insure includes denial by an
13 insurer of disability insurance coverage on the grounds that
14 the policy defines "disability" as being presumed in the event
15 that the insured loses his or her eyesight. However, an
16 insurer may exclude from coverage disabilities consisting
17 solely of blindness or partial blindness when such condition
18 existed at the time the policy was issued.
19 (d) No life company shall refuse to insure or to continue
20 to insure an individual solely because of the individual's
21 status as a member of the United States Air Force, Army, Coast
22 Guard, Marines, or Navy or solely because of the individual's
23 status as a member of the National Guard or Armed Forces
24 Reserve.
25 (e) An insurer or producer authorized to issue policies of
26 insurance in this State may not make a distinction or
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1 otherwise discriminate between persons, reject an applicant,
2 cancel a policy, or demand or require a higher rate of premium
3 for reasons based solely upon an applicant's or insured's past
4 lawful travel experiences or future lawful travel plans. This
5 subsection (e) does not prohibit an insurer or producer from
6 excluding or limiting coverage under a policy or refusing to
7 offer the policy based upon past lawful travel or future
8 lawful travel plans or from charging a different rate for that
9 coverage when that action is based upon sound actuarial
10 principles or is related to actual or reasonably expected
11 experience and is not based solely on the destination's
12 inclusion on the United States Department of State's travel
13 warning list.
14 (f) With respect to life insurance final expense policies,
15 no life company authorized to issue these policies in this
16 State shall refuse to insure an individual; refuse to continue
17 to insure an indiviudal; limit the amount, extent, or kind of
18 coverage available to an individual; or charge an individual a
19 different rate for the same coverage solely on the basis that
20 an insured or applicant has been convicted of a felony.
21 Nothing in this subsection shall be construed to require a
22 life company to issue or otherwise provide coverage for a life
23 insurance policy to a person who is actively incarcerated
24 pursuant to a felony conviction. As used in this subsection,
25 "final expense policy" means a policy marketed and sold
26 exclusively to cover costs associated with funeral and burial
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1 expenses.
2 (Source: P.A. 99-143, eff. 7-27-15.)
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