INS CD-CONTINUING COVERAGE

Amends the Illinois Insurance Code. Provides that an employee or member is eligible for continuing coverage under a group insurance policy for up to 18 months (instead of 9 months) after the date the employee's or member's insurance under the policy would have terminated because of termination of employment or membership or reduction in employment hours. Provides that the employer must give written notice of the employee's option to elect continuation coverage to the employee within 10 days after the employee's termination or reduction in hours and to the insurer. Provides that an employee or member who wishes continuation of coverage must make the request in writing within a 30-day (instead of ten-day) period. Provides that in the event the employer fails or refuses to provide notice of continuation rights to the employee or member, the insurer is required to mail notice of the continuation rights to the employee or member at the employee's last known address. Provides that any employer who fails to provide the notice required by the Act is guilty of a petty offense and shall be fined $500. Amends the Health Maintenance Organization Act to incorporate the written notice, penalty, and condition of termination provisions as they relate to continuation of group HMO coverage after termination of employment or membership. Effective immediately.