HB 6156

Abstract

Amends the Illinois Insurance Code. Provides that with the exception of a policy of accident and health insurance, no misrepresentation or false warranty shall defeat or avoid a policy unless it shall have been made with actual intent to deceive or materially affects either the acceptance of the risk or the hazard assumed. Provides that no insurer shall rescind or cancel any policy of insurance, contract, evidence of coverage, or certificate that provides accident and health coverage on the basis of written information by the insured if the insurer failed to complete medical underwriting and resolve all reasonable medical questions. Provides that an insurer shall apply for approval of a policy rescission or cancellation by submitting written information to the Director of Insurance. Sets forth provisions concerning the approval of a rescission or cancellation. Amends the Illinois Health Insurance Portability and Accountability Act. Provides that a health insurance issuer may rescind health insurance coverage offered in connection with a group health plan or coverage of an individual in the individual market only upon evidence of fraud. Amends the Health Maintenance Organization Act to provide that Health Maintenance Organizations shall be subject to the provisions of the Illinois Insurance Code concerning the prior approval of health insurance rescissions. Contains a nonacceleration clause. Makes other changes. Effective July 1, 2010.