Sec. 20. Establishment of Class of Business.

144 words·~1 min read·/il/chapter-215/act-93/20

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A small employer carrier may establish a separate class of business only to reflect substantial differences in expected claims experience or administrative costs related to the following reasons:

(1)the small employer carrier uses more than one type of system for the marketing and

sale of health benefit plans to small employers;

(2)the small employer carrier has acquired a class of business from another small

employer carrier; or

(3)the small employer carrier provides coverage to one or more association groups.

(b)A small employer carrier may establish up to 4 separate classes of business under subsection (a).

(c)The Director may approve the establishment of additional classes of business upon application to the Director and a finding by the Director that such action would enhance the efficiency and fairness of the small employer marketplace.