SB2963 Summary

• Amends Section 231.1 of the Illinois Insurance Code to add new standard provisions for group life insurance policies, including provisions (N), (O), and (P) regarding coverage continuation during policy replacement.

• Requires that when a new group life insurance policy replaces a prior policy with another carrier, active employees who are not actively at work on the effective date of the new policy retain coverage if they were insured under the prior carrier's policy and are members of an eligible class.

• Specifies that continued coverage for employees receiving benefits under the replacement provision remains in effect until the earliest of: the employee returns to work, prior coverage would have ended, replacement coverage ends, at least 6 months pass after replacement begins, or the employee becomes eligible under the prior carrier's policy.

• Limits the replacing carrier's obligations to the coverage amount provided under the prior carrier's group life insurance policy and allows reduction by any amounts payable under that prior policy.

• Takes effect upon becoming law.