Ill. Admin. Code tit. 50, § 2025.80 – Rescission in the Small Group Market | Midpage
§ 2025.80
Ill. Admin. Code tit. 50, § 2025.80
Rescission in the Small Group Market
AUTHORITY: Implementing the Illinois Health Insurance Portability and Accountability Act [215 ILCS 97] and authorized by Section 401 of the Illinois Insurance Code [215 ILCS 5].DEPARTMENT OF INSURANCE
a) A health insurance issuer in the small group market may not rescind an individual's health insurance coverage based on health conditions. The health insurance issuer may adjust the premium if a lower than appropriate premium resulted from the misrepresentation of health conditions, by either the employer or employee. The premium may be adjusted to reflect the current rating for the group.
b) The health insurance issuer may rescind a small employer policy or employee certificate if fraud is proven in a court of law.