IL HB2042

Increases maximum duration of short-term, limited-duration health insurance coverage policies from 181 days to less than 366 days after the effective date.

Allows short-term, limited-duration health insurance policies to be renewed or extended, removing the previous prohibition on renewals within 365 days after coverage ends.

Maintains prohibitions against policy rescission before expiration except for nonpayment of premiums, fraud, or as otherwise provided in the Act.

Requires all short-term, limited-duration health insurance policies to include an option for individuals to cancel coverage after any 30-day interval during the plan term.

Takes effect immediately upon becoming law.