IL SB1876

Amends Section 231.1 of the Illinois Insurance Code to add a new standard provision (N) requiring group life insurance policies that replace prior policies to prevent loss of coverage for active employees not actively at work on the effective date of the new policy, provided they were insured under the prior carrier's policy and are not receiving benefits under it.

Renumbers the existing debtor insurance provision from (N) to (O) to accommodate the new provision.

The continuous coverage requirement applies only to active employees who are members of an eligible class under the new policy and meet all four specified conditions regarding prior coverage and benefit eligibility.

Allows insurers to condition continuous coverage on timely premium payments, providing protection for employees during job transitions or temporary absences.