HB0502 Summary

• Removes provision (M) from Illinois Insurance Code Section 231.1 concerning continuation of group life insurance coverage during an insured's total disability.

• Adds new Section 231.2 requiring group policies to extend coverage for employees and dependents on "authorized absence" (administratively approved absence without charge to leave or loss of basic salary) through the period of that absence.

• Extends disability benefit extensions (premium waiver, extended death benefits, income payments) under group policies beyond policy termination date if the insured is on authorized absence.

• Requires extension of hospital, surgical, and medical expense coverage for at least 12 months under major medical plans and at least 90 days under other plans for individuals on authorized absence at policy termination.

• Establishes liability framework where prior insurer is liable only for its extended coverage obligations, and succeeding insurer must provide temporary coverage to individuals not eligible under its regular policy while respecting deductible credits and pre-existing condition limitations from the prior policy.