215 ILCS 5/367.2-5
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XX - Accident And Health Insurance

Sec. 367.2-5.     Dependent child continuation privilege; group contracts.(a) No policy of group accident or health insurance, nor any certificate  thereunder  shall be amended, renewed, delivered, or issued for delivery in this State  after  July 1,  2004, unless the policy provides for a continuation of the existing insurance  benefits for  an employee's dependent child who is insured under the provisions of that group  policy  or certificate in the event of the death of the employee and the child is not  eligible for  coverage as a dependent under the provisions of Section 367.2 or the dependent  child has  attained the limiting age under the policy.(b) In the event of the death of the employee, if continuation coverage is  desired,  the dependent child or a responsible adult acting on behalf of the dependent  child shall  give the employer or the insurer written notice of the death of employee within  30 days of  the date the coverage terminates. The employer, within 15 days of receipt of  the notice,  shall give written notice to the insurance company issuing the policy of the  death of the  employee and the dependent child's residence. The employer shall immediately  send a  copy of the notice to the dependent child or responsible adult at the dependent  child's  residence.(c) In the event of the dependent child attaining the limiting age under the  policy,  if continuation coverage is desired, the dependent child shall give the  employer or the  insurer written notice of the attainment of the limiting age within 30 days of  the date the  coverage terminates. The employer, within 15 days of receipt of the notice,  shall give  written notice to the insurance company issuing the policy of the attainment  of the  limiting age by the dependent child and of the dependent child's residence.(d) Within 30 days after the date of receipt of a notice from the employer,  dependent child, or responsible adult acting on behalf of the dependent child,  or of the  initiation of a new group policy, the insurance company, by certified mail,  return receipt  requested, shall notify the dependent child or responsible adult at the  dependent child's  residence that the policy may be continued for the dependent child.  The  notice shall  include:(1) a form for election to continue the insurance     coverage;(2) the amount of periodic premiums to be charged for     continuation coverage and the method and place of payment; and(3) instructions for returning the election form     within 30 days after the date it is received from the insurance company.Failure of the dependent child or the responsible adult acting on behalf of  the dependent  child to exercise the election to continue insurance coverage by notifying the  insurance  company in writing within such 30 day period shall terminate the continuation  of benefits  and the right to continuation.If the insurance company fails to notify the dependent child or responsible  adult acting on  behalf of the dependent child as provided for in this subsection (d), all  premiums shall  be waived from the date the notice was required until notice was sent, and the  benefits shall  continue under the terms and provisions of the policy, from the date the notice  was  required until the notice was sent, notwithstanding any other provision hereof,  except where  the benefits in existence at the time the company's notice was to be sent  pursuant to  this subsection (d) are terminated as to all employees.(e) The monthly premium for continuation shall be computed as follows:(1) an amount, if any, that would be charged an     employee if the dependent child were a current employee of the employer, plus;(2) an amount, if any, that the employer would     contribute toward the premium if the dependent child were a current employee.Failure to pay the initial monthly premium within 30 days after the date of  receipt of  notice required in subsection (d) of this Section terminates the continuation  benefits and  the right to continuation benefits.Continuation coverage provided under this Act shall terminate upon the  earliest to happen  of the following:(1) the failure to pay premiums when due, including     any grace period allowed by the policy;(2) when coverage would terminate under the terms of     the existing policy if the dependent child was still an eligible dependent of the employee;(3) the date on which the dependent child first     becomes, after the date of election, an insured employee under any other group health plan; or(4) the expiration of 2 years from the date     continuation coverage began.Upon the termination of continuation coverage, the dependent child shall be  entitled to  convert the coverage to an individual policy.(f) The renewal, amendment, or extension of any group policy affected by  this  Section shall be deemed to be delivery or issuance for delivery of a new policy  or  contract of insurance in this State.(g) If (1) the policy is cancelled, and (2) another insurance company  contracts to  provide group health and accident insurance to the employer, and (3)  continuation  coverage is in effect for the dependent child at the time of cancellation, and  (4) the  employee is or would have been included under the new group policy, then the  new  insurer must also offer continuation coverage to the dependent child under the  same  terms and conditions as contained in this Section.(h) This Section shall not limit the right of any dependent child to  exercise the  privilege to convert to an individual policy as contained in this Code.(i) No person who obtains coverage under this Section shall be required to  pay a  rate greater than that applicable to any employee or member covered under that  group.    (Source: P.A. 93-477, eff. 1-1-04.)