Except as provided by Sections 15 and 25 of this Act, only a corporation authorized by the Secretary of State to transact business in Illinois may sponsor one or more HPGs with no more than 100,000 covered individuals by negotiating, soliciting, or servicing health insurance contracts for HPGs and their members. Such a corporation may assert and maintain authority to act as an HPG sponsor by complying with all of the following requirements:
        (1) The principal officers and directors responsible
    
for the conduct of the HPG sponsor must perform their HPG sponsor related functions in Illinois.
        (2) No insurance risk may be borne or retained by the
    
HPG sponsor; all health insurance contracts issued to HPGs through the HPG sponsor must be delivered in Illinois.
        (3) No HPG sponsor may collect premium in its name or
    
hold or manage premium or claim fund accounts unless duly qualified and licensed as a managing general agent pursuant to § 141a of the Illinois Insurance Code or as a third party administrator pursuant to § 511.105 of the Illinois Insurance Code.
        (4) If the HPG gives an offer, application, notice,
    
or proposal of insurance to an employer, it must disclose the total cost of the insurance. Dues, fees, or charges to be paid to the HPG, HPG sponsor, or any other entity as a condition to purchasing the insurance must be itemized. The HPG shall also disclose to its members the amount of any dividends, experience refunds, or other such payments it receives from the risk-bearer.
        (5) An HPG sponsor must register with the Director
    
before negotiating or soliciting any group or master health insurance contract for any HPG and must renew the registration annually on forms and at times prescribed by the Director in rules specifying, at minimum, (i) the identity of the officers and directors of the HPG sponsor corporation; (ii) a certification that those persons have not been convicted of any felony offense involving a breach of fiduciary duty or improper manipulation of accounts; (iii) the number of employer members then enrolled in each HPG sponsored; (iv) the date on which each HPG was issued a group or master health insurance contract, if any; and (v) the date on which each such contract, if any, was terminated.
        (6) At the time of initial registration and each
    
renewal thereof an HPG sponsor shall pay a fee of $200 to the Director.

Terms Used In Illinois Compiled Statutes 215 ILCS 123/20

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fiduciary: A trustee, executor, or administrator.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
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