103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5575

 

Introduced 2/9/2024, by Rep. Bob Morgan

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 305/4  from Ch. 48, par. 138.4
820 ILCS 305/19  from Ch. 48, par. 138.19
820 ILCS 305/25.5

    Amends the Workers' Compensation Act. Makes changes in provisions concerning the collection of civil penalties or reimbursements for amounts paid by the Injured Workers' Benefit Fund due under an order of the Illinois Workers' Compensation Commission. Makes changes to penalties for any person, company, corporation, insurance carrier, healthcare provider, or other entity that intentionally prepares or provides an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance or intentionally assists, abets, solicits, or conspires with any person, company, or other entity to intentionally prepare or provide an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance. Makes other changes.


LRB103 36543 SPS 66650 b

 

 

A BILL FOR

 

HB5575LRB103 36543 SPS 66650 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Workers' Compensation Act is amended by
5changing Sections 4, 19, and 25.5 as follows:
 
6    (820 ILCS 305/4)  (from Ch. 48, par. 138.4)
7    (Text of Section from P.A. 101-40 and 102-37)
8    Sec. 4. (a) Any employer, including but not limited to
9general contractors and their subcontractors, who shall come
10within the provisions of Section 3 of this Act, and any other
11employer who shall elect to provide and pay the compensation
12provided for in this Act shall:
13        (1) File with the Commission annually an application
14    for approval as a self-insurer which shall include a
15    current financial statement, and annually, thereafter, an
16    application for renewal of self-insurance, which shall
17    include a current financial statement. Said application
18    and financial statement shall be signed and sworn to by
19    the president or vice president and secretary or assistant
20    secretary of the employer if it be a corporation, or by all
21    of the partners, if it be a copartnership, or by the owner
22    if it be neither a copartnership nor a corporation. All
23    initial applications and all applications for renewal of

 

 

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1    self-insurance must be submitted at least 60 days prior to
2    the requested effective date of self-insurance. An
3    employer may elect to provide and pay compensation as
4    provided for in this Act as a member of a group workers'
5    compensation pool under Article V 3/4 of the Illinois
6    Insurance Code. If an employer becomes a member of a group
7    workers' compensation pool, the employer shall not be
8    relieved of any obligations imposed by this Act.
9        If the sworn application and financial statement of
10    any such employer does not satisfy the Commission of the
11    financial ability of the employer who has filed it, the
12    Commission shall require such employer to,
13        (2) Furnish security, indemnity or a bond guaranteeing
14    the payment by the employer of the compensation provided
15    for in this Act, provided that any such employer whose
16    application and financial statement shall not have
17    satisfied the commission of his or her financial ability
18    and who shall have secured his liability in part by excess
19    liability insurance shall be required to furnish to the
20    Commission security, indemnity or bond guaranteeing his or
21    her payment up to the effective limits of the excess
22    coverage, or
23        (3) Insure his entire liability to pay such
24    compensation in some insurance carrier authorized,
25    licensed, or permitted to do such insurance business in
26    this State. Every policy of an insurance carrier, insuring

 

 

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1    the payment of compensation under this Act shall cover all
2    the employees and the entire compensation liability of the
3    insured: Provided, however, that any employer may insure
4    his or her compensation liability with 2 or more insurance
5    carriers or may insure a part and qualify under subsection
6    1, 2, or 4 for the remainder of his or her liability to pay
7    such compensation, subject to the following two
8    provisions:
9            Firstly, the entire compensation liability of the
10        employer to employees working at or from one location
11        shall be insured in one such insurance carrier or
12        shall be self-insured, and
13            Secondly, the employer shall submit evidence
14        satisfactorily to the Commission that his or her
15        entire liability for the compensation provided for in
16        this Act will be secured. Any provisions in any
17        policy, or in any endorsement attached thereto,
18        attempting to limit or modify in any way, the
19        liability of the insurance carriers issuing the same
20        except as otherwise provided herein shall be wholly
21        void.
22        Nothing herein contained shall apply to policies of
23    excess liability carriage secured by employers who have
24    been approved by the Commission as self-insurers, or
25        (4) Make some other provision, satisfactory to the
26    Commission, for the securing of the payment of

 

 

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1    compensation provided for in this Act, and
2        (5) Upon becoming subject to this Act and thereafter
3    as often as the Commission may in writing demand, file
4    with the Commission in form prescribed by it evidence of
5    his or her compliance with the provision of this Section.
6    (a-1) Regardless of its state of domicile or its principal
7place of business, an employer shall make payments to its
8insurance carrier or group self-insurance fund, where
9applicable, based upon the premium rates of the situs where
10the work or project is located in Illinois if:
11        (A) the employer is engaged primarily in the building
12    and construction industry; and
13        (B) subdivision (a)(3) of this Section applies to the
14    employer or the employer is a member of a group
15    self-insurance plan as defined in subsection (1) of
16    Section 4a.
17    The Illinois Workers' Compensation Commission shall impose
18a penalty upon an employer for violation of this subsection
19(a-1) if:
20        (i) the employer is given an opportunity at a hearing
21    to present evidence of its compliance with this subsection
22    (a-1); and
23        (ii) after the hearing, the Commission finds that the
24    employer failed to make payments upon the premium rates of
25    the situs where the work or project is located in
26    Illinois.

 

 

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1    The penalty shall not exceed $1,000 for each day of work
2for which the employer failed to make payments upon the
3premium rates of the situs where the work or project is located
4in Illinois, but the total penalty shall not exceed $50,000
5for each project or each contract under which the work was
6performed.
7    Any penalty under this subsection (a-1) must be imposed
8not later than one year after the expiration of the applicable
9limitation period specified in subsection (d) of Section 6 of
10this Act. Penalties imposed under this subsection (a-1) shall
11be deposited into the Illinois Workers' Compensation
12Commission Operations Fund, a special fund that is created in
13the State treasury. Subject to appropriation, moneys in the
14Fund shall be used solely for the operations of the Illinois
15Workers' Compensation Commission, the salaries and benefits of
16the Self-Insurers Advisory Board employees, the operating
17costs of the Self-Insurers Advisory Board, and by the
18Department of Insurance for the purposes authorized in
19subsection (c) of Section 25.5 of this Act.
20    (a-2) Every Employee Leasing Company (ELC), as defined in
21Section 15 of the Employee Leasing Company Act, shall at a
22minimum provide the following information to the Commission or
23any entity designated by the Commission regarding each
24workers' compensation insurance policy issued to the ELC:
25        (1) Any client company of the ELC listed as an
26    additional named insured.

 

 

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1        (2) Any informational schedule attached to the master
2    policy that identifies any individual client company's
3    name, FEIN, and job location.
4        (3) Any certificate of insurance coverage document
5    issued to a client company specifying its rights and
6    obligations under the master policy that establishes both
7    the identity and status of the client, as well as the dates
8    of inception and termination of coverage, if applicable.
9    (b) The sworn application and financial statement, or
10security, indemnity or bond, or amount of insurance, or other
11provisions, filed, furnished, carried, or made by the
12employer, as the case may be, shall be subject to the approval
13of the Commission.
14    Deposits under escrow agreements shall be cash, negotiable
15United States government bonds or negotiable general
16obligation bonds of the State of Illinois. Such cash or bonds
17shall be deposited in escrow with any State or National Bank or
18Trust Company having trust authority in the State of Illinois.
19    Upon the approval of the sworn application and financial
20statement, security, indemnity or bond or amount of insurance,
21filed, furnished or carried, as the case may be, the
22Commission shall send to the employer written notice of its
23approval thereof. The certificate of compliance by the
24employer with the provisions of subparagraphs (2) and (3) of
25paragraph (a) of this Section shall be delivered by the
26insurance carrier to the Illinois Workers' Compensation

 

 

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1Commission within five days after the effective date of the
2policy so certified. The insurance so certified shall cover
3all compensation liability occurring during the time that the
4insurance is in effect and no further certificate need be
5filed in case such insurance is renewed, extended or otherwise
6continued by such carrier. The insurance so certified shall
7not be cancelled or in the event that such insurance is not
8renewed, extended or otherwise continued, such insurance shall
9not be terminated until at least 10 days after receipt by the
10Illinois Workers' Compensation Commission of notice of the
11cancellation or termination of said insurance; provided,
12however, that if the employer has secured insurance from
13another insurance carrier, or has otherwise secured the
14payment of compensation in accordance with this Section, and
15such insurance or other security becomes effective prior to
16the expiration of the 10 days, cancellation or termination
17may, at the option of the insurance carrier indicated in such
18notice, be effective as of the effective date of such other
19insurance or security.
20    (c) Whenever the Commission shall find that any
21corporation, company, association, aggregation of individuals,
22reciprocal or interinsurers exchange, or other insurer
23effecting workers' compensation insurance in this State shall
24be insolvent, financially unsound, or unable to fully meet all
25payments and liabilities assumed or to be assumed for
26compensation insurance in this State, or shall practice a

 

 

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1policy of delay or unfairness toward employees in the
2adjustment, settlement, or payment of benefits due such
3employees, the Commission may after reasonable notice and
4hearing order and direct that such corporation, company,
5association, aggregation of individuals, reciprocal or
6interinsurers exchange, or insurer, shall from and after a
7date fixed in such order discontinue the writing of any such
8workers' compensation insurance in this State. Subject to such
9modification of the order as the Commission may later make on
10review of the order, as herein provided, it shall thereupon be
11unlawful for any such corporation, company, association,
12aggregation of individuals, reciprocal or interinsurers
13exchange, or insurer to effect any workers' compensation
14insurance in this State. A copy of the order shall be served
15upon the Director of Insurance by registered mail. Whenever
16the Commission finds that any service or adjustment company
17used or employed by a self-insured employer or by an insurance
18carrier to process, adjust, investigate, compromise or
19otherwise handle claims under this Act, has practiced or is
20practicing a policy of delay or unfairness toward employees in
21the adjustment, settlement or payment of benefits due such
22employees, the Commission may after reasonable notice and
23hearing order and direct that such service or adjustment
24company shall from and after a date fixed in such order be
25prohibited from processing, adjusting, investigating,
26compromising or otherwise handling claims under this Act.

 

 

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1    Whenever the Commission finds that any self-insured
2employer has practiced or is practicing delay or unfairness
3toward employees in the adjustment, settlement or payment of
4benefits due such employees, the Commission may, after
5reasonable notice and hearing, order and direct that after a
6date fixed in the order such self-insured employer shall be
7disqualified to operate as a self-insurer and shall be
8required to insure his entire liability to pay compensation in
9some insurance carrier authorized, licensed and permitted to
10do such insurance business in this State, as provided in
11subparagraph 3 of paragraph (a) of this Section.
12    All orders made by the Commission under this Section shall
13be subject to review by the courts, said review to be taken in
14the same manner and within the same time as provided by Section
1519 of this Act for review of awards and decisions of the
16Commission, upon the party seeking the review filing with the
17clerk of the court to which said review is taken a bond in an
18amount to be fixed and approved by the court to which the
19review is taken, conditioned upon the payment of all
20compensation awarded against the person taking said review
21pending a decision thereof and further conditioned upon such
22other obligations as the court may impose. Upon the review the
23Circuit Court shall have power to review all questions of fact
24as well as of law. The penalty hereinafter provided for in this
25paragraph shall not attach and shall not begin to run until the
26final determination of the order of the Commission.

 

 

HB5575- 10 -LRB103 36543 SPS 66650 b

1    (d) Whenever a Commissioner, with due process and after a
2hearing, determines an employer has knowingly failed to
3provide coverage as required by paragraph (a) of this Section,
4the failure shall be deemed an immediate serious danger to
5public health, safety, and welfare sufficient to justify
6service by the Commission of a work-stop order on such
7employer, requiring the cessation of all business operations
8of such employer at the place of employment or job site. If a
9business is declared to be extra hazardous, as defined in
10Section 3, a Commissioner may issue an emergency work-stop
11order on such an employer ex parte, prior to holding a hearing,
12requiring the cessation of all business operations of such
13employer at the place of employment or job site while awaiting
14the ruling of the Commission. Whenever a Commissioner issues
15an emergency work-stop order, the Commission shall issue a
16notice of emergency work-stop hearing to be posted at the
17employer's places of employment and job sites. Any law
18enforcement agency in the State shall, at the request of the
19Commission, render any assistance necessary to carry out the
20provisions of this Section, including, but not limited to,
21preventing any employee of such employer from remaining at a
22place of employment or job site after a work-stop order has
23taken effect. Any work-stop order shall be lifted upon proof
24of insurance as required by this Act. Any orders under this
25Section are appealable under Section 19(f) to the Circuit
26Court.

 

 

HB5575- 11 -LRB103 36543 SPS 66650 b

1    Any individual employer, corporate officer or director of
2a corporate employer, partner of an employer partnership, or
3member of an employer limited liability company who knowingly
4fails to provide coverage as required by paragraph (a) of this
5Section is guilty of a Class 4 felony. This provision shall not
6apply to any corporate officer or director of any
7publicly-owned corporation. Each day's violation constitutes a
8separate offense. The State's Attorney of the county in which
9the violation occurred, or the Attorney General, shall bring
10such actions in the name of the People of the State of
11Illinois, or may, in addition to other remedies provided in
12this Section, bring an action for an injunction to restrain
13the violation or to enjoin the operation of any such employer.
14    Any individual employer, corporate officer or director of
15a corporate employer, partner of an employer partnership, or
16member of an employer limited liability company who
17negligently fails to provide coverage as required by paragraph
18(a) of this Section is guilty of a Class A misdemeanor. This
19provision shall not apply to any corporate officer or director
20of any publicly-owned corporation. Each day's violation
21constitutes a separate offense. The State's Attorney of the
22county in which the violation occurred, or the Attorney
23General, shall bring such actions in the name of the People of
24the State of Illinois.
25    The criminal penalties in this subsection (d) shall not
26apply where there exists a good faith dispute as to the

 

 

HB5575- 12 -LRB103 36543 SPS 66650 b

1existence of an employment relationship. Evidence of good
2faith shall include, but not be limited to, compliance with
3the definition of employee as used by the Internal Revenue
4Service.
5    All investigative actions must be acted upon within 90
6days of the issuance of the complaint. Employers who are
7subject to and who knowingly fail to comply with this Section
8shall not be entitled to the benefits of this Act during the
9period of noncompliance, but shall be liable in an action
10under any other applicable law of this State. In the action,
11such employer shall not avail himself or herself of the
12defenses of assumption of risk or negligence or that the
13injury was due to a co-employee. In the action, proof of the
14injury shall constitute prima facie evidence of negligence on
15the part of such employer and the burden shall be on such
16employer to show freedom of negligence resulting in the
17injury. The employer shall not join any other defendant in any
18such civil action. Nothing in this amendatory Act of the 94th
19General Assembly shall affect the employee's rights under
20subdivision (a)3 of Section 1 of this Act. Any employer or
21carrier who makes payments under subdivision (a)3 of Section 1
22of this Act shall have a right of reimbursement from the
23proceeds of any recovery under this Section.
24    An employee of an uninsured employer, or the employee's
25dependents in case death ensued, may, instead of proceeding
26against the employer in a civil action in court, file an

 

 

HB5575- 13 -LRB103 36543 SPS 66650 b

1application for adjustment of claim with the Commission in
2accordance with the provisions of this Act and the Commission
3shall hear and determine the application for adjustment of
4claim in the manner in which other claims are heard and
5determined before the Commission.
6    All proceedings under this subsection (d) shall be
7reported on an annual basis to the Workers' Compensation
8Advisory Board.
9    An investigator with the Department of Insurance may issue
10a citation to any employer that is not in compliance with its
11obligation to have workers' compensation insurance under this
12Act. The amount of the fine shall be based on the period of
13time the employer was in non-compliance, but shall be no less
14than $500, and shall not exceed $10,000. An employer that has
15been issued a citation shall pay the fine to the Department of
16Insurance and provide to the Department of Insurance proof
17that it obtained the required workers' compensation insurance
18within 10 days after the citation was issued. This Section
19does not affect any other obligations this Act imposes on
20employers.
21    Upon a finding by the Commission, after reasonable notice
22and hearing, of the knowing and willful failure or refusal of
23an employer to comply with any of the provisions of paragraph
24(a) of this Section, the failure or refusal of an employer,
25service or adjustment company, or an insurance carrier to
26comply with any order of the Illinois Workers' Compensation

 

 

HB5575- 14 -LRB103 36543 SPS 66650 b

1Commission pursuant to paragraph (c) of this Section
2disqualifying him or her to operate as a self insurer and
3requiring him or her to insure his or her liability, or the
4knowing and willful failure of an employer to comply with a
5citation issued by an investigator with the Department of
6Insurance, the Commission may assess a civil penalty of up to
7$500 per day for each day of such failure or refusal after the
8effective date of this amendatory Act of 1989. The minimum
9penalty under this Section shall be the sum of $10,000. Each
10day of such failure or refusal shall constitute a separate
11offense. The Commission may assess the civil penalty
12personally and individually against the corporate officers and
13directors of a corporate employer, the partners of an employer
14partnership, and the members of an employer limited liability
15company, after a finding of a knowing and willful refusal or
16failure of each such named corporate officer, director,
17partner, or member to comply with this Section. The liability
18for the assessed penalty shall be against the named employer
19first, and if the named employer fails or refuses to pay the
20penalty to the Commission within 30 days after the final order
21of the Commission, then the named corporate officers,
22directors, partners, or members who have been found to have
23knowingly and willfully refused or failed to comply with this
24Section shall be liable for the unpaid penalty or any unpaid
25portion of the penalty. Upon investigation by the Department
26of Insurance, the Attorney General shall have the authority to

 

 

HB5575- 15 -LRB103 36543 SPS 66650 b

1prosecute all proceedings to enforce the civil and
2administrative provisions of this Section before the
3Commission. The Commission and the Department of Insurance
4shall promulgate procedural rules for enforcing this Section
5relating to their respective duties prescribed herein.
6    If an employer is found to be in non-compliance with any
7provisions of paragraph (a) of this Section more than once,
8all minimum penalties will double. Therefore, upon the failure
9or refusal of an employer, service or adjustment company, or
10insurance carrier to comply with any order of the Commission
11pursuant to paragraph (c) of this Section disqualifying him or
12her to operate as a self-insurer and requiring him or her to
13insure his or her liability, or the knowing and willful
14failure of an employer to comply with a citation issued by an
15investigator with the Department of Insurance, the Commission
16may assess a civil penalty of up to $1,000 per day for each day
17of such failure or refusal after the effective date of this
18amendatory Act of the 101st General Assembly. The minimum
19penalty under this Section shall be the sum of $20,000. In
20addition, employers with 2 or more violations of any
21provisions of paragraph (a) of this Section may not
22self-insure for one year or until all penalties are paid.
23    Any final order of the Commission imposing penalties under
24this Section may be reviewed as described in subsection (f) of
25Section 19. It shall be the duty of the Attorney General to
26represent the Commission in any review proceeding. After all

 

 

HB5575- 16 -LRB103 36543 SPS 66650 b

1reviews have been exhausted or waived, the Commission's order
2imposing penalties is a debt due and owing the State and may be
3enforced in the same manner as a judgment entered by a court of
4competent jurisdiction as described in subsection (g) of
5Section 19. It shall be the duty of the Attorney General to
6make all reasonable efforts to collect the amounts due under
7the Commission's order.
8    Upon the failure or refusal of any employer, service or
9adjustment company or insurance carrier to comply with the
10provisions of this Section and with the orders of the
11Commission under this Section, or the order of the court on
12review after final adjudication, the Commission may bring a
13civil action to recover the amount of the penalty in Cook
14County or in Sangamon County in which litigation the
15Commission shall be represented by the Attorney General. The
16Commission shall send notice of its finding of non-compliance
17and assessment of the civil penalty to the Attorney General.
18It shall be the duty of the Attorney General within 30 days
19after receipt of the notice, to institute prosecutions and
20promptly prosecute all reported violations of this Section.
21    Any individual employer, corporate officer or director of
22a corporate employer, partner of an employer partnership, or
23member of an employer limited liability company who, with the
24intent to avoid payment of compensation under this Act to an
25injured employee or the employee's dependents, knowingly
26transfers, sells, encumbers, assigns, or in any manner

 

 

HB5575- 17 -LRB103 36543 SPS 66650 b

1disposes of, conceals, secretes, or destroys any property
2belonging to the employer, officer, director, partner, or
3member is guilty of a Class 4 felony.
4    Penalties and fines collected pursuant to this paragraph
5(d) shall be deposited upon receipt into a special fund which
6shall be designated the Injured Workers' Benefit Fund, of
7which the State Treasurer is ex-officio custodian, such
8special fund to be held and disbursed in accordance with this
9paragraph (d) for the purposes hereinafter stated in this
10paragraph (d), upon the final order of the Commission. The
11Injured Workers' Benefit Fund shall be deposited the same as
12are State funds and any interest accruing thereon shall be
13added thereto every 6 months. The Injured Workers' Benefit
14Fund is subject to audit the same as State funds and accounts
15and is protected by the general bond given by the State
16Treasurer. The Injured Workers' Benefit Fund is considered
17always appropriated for the purposes of disbursements as
18provided in this paragraph, and shall be paid out and
19disbursed as herein provided and shall not at any time be
20appropriated or diverted to any other use or purpose. Moneys
21in the Injured Workers' Benefit Fund shall be used only for
22payment of workers' compensation benefits for injured
23employees when the employer has failed to provide coverage as
24determined under this paragraph (d) and has failed to pay the
25benefits due to the injured employee.
26    The Commission shall have the right to order any employer

 

 

HB5575- 18 -LRB103 36543 SPS 66650 b

1who has failed to properly secure its workers' compensation
2obligations to reimburse obtain reimbursement from the
3employer for compensation obligations paid by the Injured
4Workers' Benefit Fund for amounts paid by the Injured Workers'
5Benefit Fund to the employer's employees. The Commission shall
6reserve jurisdiction in any matter in which an award is made
7against the Injured Workers' Benefit Fund for the purpose of
8issuing an order requiring reimbursement of the Injured
9Workers' Benefit Fund once the amount paid is known. Within 30
10days after payment by the Injured Workers' Benefit Fund to the
11employee, the Commission shall enter an order requiring the
12employer to reimburse the Injured Workers' Benefit Fund. Any
13final order may be reviewed as described in subsection (f) of
14Section 19. It shall be the duty of the Attorney General to
15represent the Commission in any review proceeding. After all
16reviews have been exhausted or waived, the Commission's order
17requiring reimbursement is a debt due and owing this State and
18may be enforced in the same manner as a judgment entered by a
19court of competent jurisdiction as described in subsection (g)
20of Section 19. It shall be the duty of the Attorney General to
21make all reasonable efforts to collect the amounts due under
22the Commission's order. Any such amounts obtained shall be
23deposited by the Commission into the Injured Workers' Benefit
24Fund. If an injured employee or his or her personal
25representative receives payment from the Injured Workers'
26Benefit Fund, the State of Illinois has the same rights under

 

 

HB5575- 19 -LRB103 36543 SPS 66650 b

1paragraph (b) of Section 5 that the employer who failed to pay
2the benefits due to the injured employee would have had if the
3employer had paid those benefits, and any moneys recovered by
4the State as a result of the State's exercise of its rights
5under paragraph (b) of Section 5 shall be deposited into the
6Injured Workers' Benefit Fund. The custodian of the Injured
7Workers' Benefit Fund shall be joined with the employer as a
8party respondent in the application for adjustment of claim.
9After July 1, 2006, the Commission shall make disbursements
10from the Fund once each year to each eligible claimant. An
11eligible claimant is an injured worker who has within the
12previous fiscal year obtained a final award for benefits from
13the Commission against the employer and the Injured Workers'
14Benefit Fund and has notified the Commission within 90 days of
15receipt of such award. Within a reasonable time after the end
16of each fiscal year, the Commission shall make a disbursement
17to each eligible claimant. At the time of disbursement, if
18there are insufficient moneys in the Fund to pay all claims,
19each eligible claimant shall receive a pro-rata share, as
20determined by the Commission, of the available moneys in the
21Fund for that year. Payment from the Injured Workers' Benefit
22Fund to an eligible claimant pursuant to this provision shall
23discharge the obligations of the Injured Workers' Benefit Fund
24regarding the award entered by the Commission.
25    (e) This Act shall not affect or disturb the continuance
26of any existing insurance, mutual aid, benefit, or relief

 

 

HB5575- 20 -LRB103 36543 SPS 66650 b

1association or department, whether maintained in whole or in
2part by the employer or whether maintained by the employees,
3the payment of benefits of such association or department
4being guaranteed by the employer or by some person, firm or
5corporation for him or her: Provided, the employer contributes
6to such association or department an amount not less than the
7full compensation herein provided, exclusive of the cost of
8the maintenance of such association or department and without
9any expense to the employee. This Act shall not prevent the
10organization and maintaining under the insurance laws of this
11State of any benefit or insurance company for the purpose of
12insuring against the compensation provided for in this Act,
13the expense of which is maintained by the employer. This Act
14shall not prevent the organization or maintaining under the
15insurance laws of this State of any voluntary mutual aid,
16benefit or relief association among employees for the payment
17of additional accident or sick benefits.
18    (f) No existing insurance, mutual aid, benefit or relief
19association or department shall, by reason of anything herein
20contained, be authorized to discontinue its operation without
21first discharging its obligations to any and all persons
22carrying insurance in the same or entitled to relief or
23benefits therein.
24    (g) Any contract, oral, written or implied, of employment
25providing for relief benefit, or insurance or any other device
26whereby the employee is required to pay any premium or

 

 

HB5575- 21 -LRB103 36543 SPS 66650 b

1premiums for insurance against the compensation provided for
2in this Act shall be null and void. Any employer withholding
3from the wages of any employee any amount for the purpose of
4paying any such premium shall be guilty of a Class B
5misdemeanor.
6    In the event the employer does not pay the compensation
7for which he or she is liable, then an insurance company,
8association or insurer which may have insured such employer
9against such liability shall become primarily liable to pay to
10the employee, his or her personal representative or
11beneficiary the compensation required by the provisions of
12this Act to be paid by such employer. The insurance carrier may
13be made a party to the proceedings in which the employer is a
14party and an award may be entered jointly against the employer
15and the insurance carrier.
16    (h) It shall be unlawful for any employer, insurance
17company or service or adjustment company to interfere with,
18restrain or coerce an employee in any manner whatsoever in the
19exercise of the rights or remedies granted to him or her by
20this Act or to discriminate, attempt to discriminate, or
21threaten to discriminate against an employee in any way
22because of his or her exercise of the rights or remedies
23granted to him or her by this Act.
24    It shall be unlawful for any employer, individually or
25through any insurance company or service or adjustment
26company, to discharge or to threaten to discharge, or to

 

 

HB5575- 22 -LRB103 36543 SPS 66650 b

1refuse to rehire or recall to active service in a suitable
2capacity an employee because of the exercise of his or her
3rights or remedies granted to him or her by this Act.
4    (i) If an employer elects to obtain a life insurance
5policy on his employees, he may also elect to apply such
6benefits in satisfaction of all or a portion of the death
7benefits payable under this Act, in which case, the employer's
8compensation premium shall be reduced accordingly.
9    (j) Within 45 days of receipt of an initial application or
10application to renew self-insurance privileges the
11Self-Insurers Advisory Board shall review and submit for
12approval by the Chairman of the Commission recommendations of
13disposition of all initial applications to self-insure and all
14applications to renew self-insurance privileges filed by
15private self-insurers pursuant to the provisions of this
16Section and Section 4a-9 of this Act. Each private
17self-insurer shall submit with its initial and renewal
18applications the application fee required by Section 4a-4 of
19this Act.
20    The Chairman of the Commission shall promptly act upon all
21initial applications and applications for renewal in full
22accordance with the recommendations of the Board or, should
23the Chairman disagree with any recommendation of disposition
24of the Self-Insurer's Advisory Board, he shall within 30 days
25of receipt of such recommendation provide to the Board in
26writing the reasons supporting his decision. The Chairman

 

 

HB5575- 23 -LRB103 36543 SPS 66650 b

1shall also promptly notify the employer of his decision within
215 days of receipt of the recommendation of the Board.
3    If an employer is denied a renewal of self-insurance
4privileges pursuant to application it shall retain said
5privilege for 120 days after receipt of a notice of
6cancellation of the privilege from the Chairman of the
7Commission.
8    All orders made by the Chairman under this Section shall
9be subject to review by the courts, such review to be taken in
10the same manner and within the same time as provided by
11subsection (f) of Section 19 of this Act for review of awards
12and decisions of the Commission, upon the party seeking the
13review filing with the clerk of the court to which such review
14is taken a bond in an amount to be fixed and approved by the
15court to which the review is taken, conditioned upon the
16payment of all compensation awarded against the person taking
17such review pending a decision thereof and further conditioned
18upon such other obligations as the court may impose. Upon the
19review the Circuit Court shall have power to review all
20questions of fact as well as of law.
21(Source: P.A. 101-40, eff. 1-1-20; 102-37, eff. 7-1-21.)
 
22    (Text of Section from P.A. 101-384 and 102-37)
23    Sec. 4. (a) Any employer, including but not limited to
24general contractors and their subcontractors, who shall come
25within the provisions of Section 3 of this Act, and any other

 

 

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1employer who shall elect to provide and pay the compensation
2provided for in this Act shall:
3        (1) File with the Commission annually an application
4    for approval as a self-insurer which shall include a
5    current financial statement, and annually, thereafter, an
6    application for renewal of self-insurance, which shall
7    include a current financial statement. Said application
8    and financial statement shall be signed and sworn to by
9    the president or vice president and secretary or assistant
10    secretary of the employer if it be a corporation, or by all
11    of the partners, if it be a copartnership, or by the owner
12    if it be neither a copartnership nor a corporation. All
13    initial applications and all applications for renewal of
14    self-insurance must be submitted at least 60 days prior to
15    the requested effective date of self-insurance. An
16    employer may elect to provide and pay compensation as
17    provided for in this Act as a member of a group workers'
18    compensation pool under Article V 3/4 of the Illinois
19    Insurance Code. If an employer becomes a member of a group
20    workers' compensation pool, the employer shall not be
21    relieved of any obligations imposed by this Act.
22        If the sworn application and financial statement of
23    any such employer does not satisfy the Commission of the
24    financial ability of the employer who has filed it, the
25    Commission shall require such employer to,
26        (2) Furnish security, indemnity or a bond guaranteeing

 

 

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1    the payment by the employer of the compensation provided
2    for in this Act, provided that any such employer whose
3    application and financial statement shall not have
4    satisfied the commission of his or her financial ability
5    and who shall have secured his liability in part by excess
6    liability insurance shall be required to furnish to the
7    Commission security, indemnity or bond guaranteeing his or
8    her payment up to the effective limits of the excess
9    coverage, or
10        (3) Insure his entire liability to pay such
11    compensation in some insurance carrier authorized,
12    licensed, or permitted to do such insurance business in
13    this State. Every policy of an insurance carrier, insuring
14    the payment of compensation under this Act shall cover all
15    the employees and the entire compensation liability of the
16    insured: Provided, however, that any employer may insure
17    his or her compensation liability with 2 or more insurance
18    carriers or may insure a part and qualify under subsection
19    1, 2, or 4 for the remainder of his or her liability to pay
20    such compensation, subject to the following two
21    provisions:
22            Firstly, the entire compensation liability of the
23        employer to employees working at or from one location
24        shall be insured in one such insurance carrier or
25        shall be self-insured, and
26            Secondly, the employer shall submit evidence

 

 

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1        satisfactorily to the Commission that his or her
2        entire liability for the compensation provided for in
3        this Act will be secured. Any provisions in any
4        policy, or in any endorsement attached thereto,
5        attempting to limit or modify in any way, the
6        liability of the insurance carriers issuing the same
7        except as otherwise provided herein shall be wholly
8        void.
9        Nothing herein contained shall apply to policies of
10    excess liability carriage secured by employers who have
11    been approved by the Commission as self-insurers, or
12        (4) Make some other provision, satisfactory to the
13    Commission, for the securing of the payment of
14    compensation provided for in this Act, and
15        (5) Upon becoming subject to this Act and thereafter
16    as often as the Commission may in writing demand, file
17    with the Commission in form prescribed by it evidence of
18    his or her compliance with the provision of this Section.
19    (a-1) Regardless of its state of domicile or its principal
20place of business, an employer shall make payments to its
21insurance carrier or group self-insurance fund, where
22applicable, based upon the premium rates of the situs where
23the work or project is located in Illinois if:
24        (A) the employer is engaged primarily in the building
25    and construction industry; and
26        (B) subdivision (a)(3) of this Section applies to the

 

 

HB5575- 27 -LRB103 36543 SPS 66650 b

1    employer or the employer is a member of a group
2    self-insurance plan as defined in subsection (1) of
3    Section 4a.
4    The Illinois Workers' Compensation Commission shall impose
5a penalty upon an employer for violation of this subsection
6(a-1) if:
7        (i) the employer is given an opportunity at a hearing
8    to present evidence of its compliance with this subsection
9    (a-1); and
10        (ii) after the hearing, the Commission finds that the
11    employer failed to make payments upon the premium rates of
12    the situs where the work or project is located in
13    Illinois.
14    The penalty shall not exceed $1,000 for each day of work
15for which the employer failed to make payments upon the
16premium rates of the situs where the work or project is located
17in Illinois, but the total penalty shall not exceed $50,000
18for each project or each contract under which the work was
19performed.
20    Any penalty under this subsection (a-1) must be imposed
21not later than one year after the expiration of the applicable
22limitation period specified in subsection (d) of Section 6 of
23this Act. Penalties imposed under this subsection (a-1) shall
24be deposited into the Illinois Workers' Compensation
25Commission Operations Fund, a special fund that is created in
26the State treasury. Subject to appropriation, moneys in the

 

 

HB5575- 28 -LRB103 36543 SPS 66650 b

1Fund shall be used solely for the operations of the Illinois
2Workers' Compensation Commission and by the Department of
3Insurance for the purposes authorized in subsection (c) of
4Section 25.5 of this Act.
5    (a-2) Every Employee Leasing Company (ELC), as defined in
6Section 15 of the Employee Leasing Company Act, shall at a
7minimum provide the following information to the Commission or
8any entity designated by the Commission regarding each
9workers' compensation insurance policy issued to the ELC:
10        (1) Any client company of the ELC listed as an
11    additional named insured.
12        (2) Any informational schedule attached to the master
13    policy that identifies any individual client company's
14    name, FEIN, and job location.
15        (3) Any certificate of insurance coverage document
16    issued to a client company specifying its rights and
17    obligations under the master policy that establishes both
18    the identity and status of the client, as well as the dates
19    of inception and termination of coverage, if applicable.
20    (b) The sworn application and financial statement, or
21security, indemnity or bond, or amount of insurance, or other
22provisions, filed, furnished, carried, or made by the
23employer, as the case may be, shall be subject to the approval
24of the Commission.
25    Deposits under escrow agreements shall be cash, negotiable
26United States government bonds or negotiable general

 

 

HB5575- 29 -LRB103 36543 SPS 66650 b

1obligation bonds of the State of Illinois. Such cash or bonds
2shall be deposited in escrow with any State or National Bank or
3Trust Company having trust authority in the State of Illinois.
4    Upon the approval of the sworn application and financial
5statement, security, indemnity or bond or amount of insurance,
6filed, furnished or carried, as the case may be, the
7Commission shall send to the employer written notice of its
8approval thereof. The certificate of compliance by the
9employer with the provisions of subparagraphs (2) and (3) of
10paragraph (a) of this Section shall be delivered by the
11insurance carrier to the Illinois Workers' Compensation
12Commission within five days after the effective date of the
13policy so certified. The insurance so certified shall cover
14all compensation liability occurring during the time that the
15insurance is in effect and no further certificate need be
16filed in case such insurance is renewed, extended or otherwise
17continued by such carrier. The insurance so certified shall
18not be cancelled or in the event that such insurance is not
19renewed, extended or otherwise continued, such insurance shall
20not be terminated until at least 10 days after receipt by the
21Illinois Workers' Compensation Commission of notice of the
22cancellation or termination of said insurance; provided,
23however, that if the employer has secured insurance from
24another insurance carrier, or has otherwise secured the
25payment of compensation in accordance with this Section, and
26such insurance or other security becomes effective prior to

 

 

HB5575- 30 -LRB103 36543 SPS 66650 b

1the expiration of the 10 days, cancellation or termination
2may, at the option of the insurance carrier indicated in such
3notice, be effective as of the effective date of such other
4insurance or security.
5    (c) Whenever the Commission shall find that any
6corporation, company, association, aggregation of individuals,
7reciprocal or interinsurers exchange, or other insurer
8effecting workers' compensation insurance in this State shall
9be insolvent, financially unsound, or unable to fully meet all
10payments and liabilities assumed or to be assumed for
11compensation insurance in this State, or shall practice a
12policy of delay or unfairness toward employees in the
13adjustment, settlement, or payment of benefits due such
14employees, the Commission may after reasonable notice and
15hearing order and direct that such corporation, company,
16association, aggregation of individuals, reciprocal or
17interinsurers exchange, or insurer, shall from and after a
18date fixed in such order discontinue the writing of any such
19workers' compensation insurance in this State. Subject to such
20modification of the order as the Commission may later make on
21review of the order, as herein provided, it shall thereupon be
22unlawful for any such corporation, company, association,
23aggregation of individuals, reciprocal or interinsurers
24exchange, or insurer to effect any workers' compensation
25insurance in this State. A copy of the order shall be served
26upon the Director of Insurance by registered mail. Whenever

 

 

HB5575- 31 -LRB103 36543 SPS 66650 b

1the Commission finds that any service or adjustment company
2used or employed by a self-insured employer or by an insurance
3carrier to process, adjust, investigate, compromise or
4otherwise handle claims under this Act, has practiced or is
5practicing a policy of delay or unfairness toward employees in
6the adjustment, settlement or payment of benefits due such
7employees, the Commission may after reasonable notice and
8hearing order and direct that such service or adjustment
9company shall from and after a date fixed in such order be
10prohibited from processing, adjusting, investigating,
11compromising or otherwise handling claims under this Act.
12    Whenever the Commission finds that any self-insured
13employer has practiced or is practicing delay or unfairness
14toward employees in the adjustment, settlement or payment of
15benefits due such employees, the Commission may, after
16reasonable notice and hearing, order and direct that after a
17date fixed in the order such self-insured employer shall be
18disqualified to operate as a self-insurer and shall be
19required to insure his entire liability to pay compensation in
20some insurance carrier authorized, licensed and permitted to
21do such insurance business in this State, as provided in
22subparagraph 3 of paragraph (a) of this Section.
23    All orders made by the Commission under this Section shall
24be subject to review by the courts, said review to be taken in
25the same manner and within the same time as provided by Section
2619 of this Act for review of awards and decisions of the

 

 

HB5575- 32 -LRB103 36543 SPS 66650 b

1Commission, upon the party seeking the review filing with the
2clerk of the court to which said review is taken a bond in an
3amount to be fixed and approved by the court to which the
4review is taken, conditioned upon the payment of all
5compensation awarded against the person taking said review
6pending a decision thereof and further conditioned upon such
7other obligations as the court may impose. Upon the review the
8Circuit Court shall have power to review all questions of fact
9as well as of law. The penalty hereinafter provided for in this
10paragraph shall not attach and shall not begin to run until the
11final determination of the order of the Commission.
12    (d) Whenever a panel of 3 Commissioners comprised of one
13member of the employing class, one representative of a labor
14organization recognized under the National Labor Relations Act
15or an attorney who has represented labor organizations or has
16represented employees in workers' compensation cases, and one
17member not identified with either the employing class or a
18labor organization, with due process and after a hearing,
19determines an employer has knowingly failed to provide
20coverage as required by paragraph (a) of this Section, the
21failure shall be deemed an immediate serious danger to public
22health, safety, and welfare sufficient to justify service by
23the Commission of a work-stop order on such employer,
24requiring the cessation of all business operations of such
25employer at the place of employment or job site. Any law
26enforcement agency in the State shall, at the request of the

 

 

HB5575- 33 -LRB103 36543 SPS 66650 b

1Commission, render any assistance necessary to carry out the
2provisions of this Section, including, but not limited to,
3preventing any employee of such employer from remaining at a
4place of employment or job site after a work-stop order has
5taken effect. Any work-stop order shall be lifted upon proof
6of insurance as required by this Act. Any orders under this
7Section are appealable under Section 19(f) to the Circuit
8Court.
9    Any individual employer, corporate officer or director of
10a corporate employer, partner of an employer partnership, or
11member of an employer limited liability company who knowingly
12fails to provide coverage as required by paragraph (a) of this
13Section is guilty of a Class 4 felony. This provision shall not
14apply to any corporate officer or director of any
15publicly-owned corporation. Each day's violation constitutes a
16separate offense. The State's Attorney of the county in which
17the violation occurred, or the Attorney General, shall bring
18such actions in the name of the People of the State of
19Illinois, or may, in addition to other remedies provided in
20this Section, bring an action for an injunction to restrain
21the violation or to enjoin the operation of any such employer.
22    Any individual employer, corporate officer or director of
23a corporate employer, partner of an employer partnership, or
24member of an employer limited liability company who
25negligently fails to provide coverage as required by paragraph
26(a) of this Section is guilty of a Class A misdemeanor. This

 

 

HB5575- 34 -LRB103 36543 SPS 66650 b

1provision shall not apply to any corporate officer or director
2of any publicly-owned corporation. Each day's violation
3constitutes a separate offense. The State's Attorney of the
4county in which the violation occurred, or the Attorney
5General, shall bring such actions in the name of the People of
6the State of Illinois.
7    The criminal penalties in this subsection (d) shall not
8apply where there exists a good faith dispute as to the
9existence of an employment relationship. Evidence of good
10faith shall include, but not be limited to, compliance with
11the definition of employee as used by the Internal Revenue
12Service.
13    Employers who are subject to and who knowingly fail to
14comply with this Section shall not be entitled to the benefits
15of this Act during the period of noncompliance, but shall be
16liable in an action under any other applicable law of this
17State. In the action, such employer shall not avail himself or
18herself of the defenses of assumption of risk or negligence or
19that the injury was due to a co-employee. In the action, proof
20of the injury shall constitute prima facie evidence of
21negligence on the part of such employer and the burden shall be
22on such employer to show freedom of negligence resulting in
23the injury. The employer shall not join any other defendant in
24any such civil action. Nothing in this amendatory Act of the
2594th General Assembly shall affect the employee's rights under
26subdivision (a)3 of Section 1 of this Act. Any employer or

 

 

HB5575- 35 -LRB103 36543 SPS 66650 b

1carrier who makes payments under subdivision (a)3 of Section 1
2of this Act shall have a right of reimbursement from the
3proceeds of any recovery under this Section.
4    An employee of an uninsured employer, or the employee's
5dependents in case death ensued, may, instead of proceeding
6against the employer in a civil action in court, file an
7application for adjustment of claim with the Commission in
8accordance with the provisions of this Act and the Commission
9shall hear and determine the application for adjustment of
10claim in the manner in which other claims are heard and
11determined before the Commission.
12    All proceedings under this subsection (d) shall be
13reported on an annual basis to the Workers' Compensation
14Advisory Board.
15    An investigator with the Department of Insurance may issue
16a citation to any employer that is not in compliance with its
17obligation to have workers' compensation insurance under this
18Act. The amount of the fine shall be based on the period of
19time the employer was in non-compliance, but shall be no less
20than $500, and shall not exceed $2,500. An employer that has
21been issued a citation shall pay the fine to the Department of
22Insurance and provide to the Department of Insurance proof
23that it obtained the required workers' compensation insurance
24within 10 days after the citation was issued. This Section
25does not affect any other obligations this Act imposes on
26employers.

 

 

HB5575- 36 -LRB103 36543 SPS 66650 b

1    Upon a finding by the Commission, after reasonable notice
2and hearing, of the knowing and wilful failure or refusal of an
3employer to comply with any of the provisions of paragraph (a)
4of this Section, the failure or refusal of an employer,
5service or adjustment company, or an insurance carrier to
6comply with any order of the Illinois Workers' Compensation
7Commission pursuant to paragraph (c) of this Section
8disqualifying him or her to operate as a self insurer and
9requiring him or her to insure his or her liability, or the
10knowing and willful failure of an employer to comply with a
11citation issued by an investigator with the Department of
12Insurance, the Commission may assess a civil penalty of up to
13$500 per day for each day of such failure or refusal after the
14effective date of this amendatory Act of 1989. The minimum
15penalty under this Section shall be the sum of $10,000. Each
16day of such failure or refusal shall constitute a separate
17offense. The Commission may assess the civil penalty
18personally and individually against the corporate officers and
19directors of a corporate employer, the partners of an employer
20partnership, and the members of an employer limited liability
21company, after a finding of a knowing and willful refusal or
22failure of each such named corporate officer, director,
23partner, or member to comply with this Section. The liability
24for the assessed penalty shall be against the named employer
25first, and if the named employer fails or refuses to pay the
26penalty to the Commission within 30 days after the final order

 

 

HB5575- 37 -LRB103 36543 SPS 66650 b

1of the Commission, then the named corporate officers,
2directors, partners, or members who have been found to have
3knowingly and willfully refused or failed to comply with this
4Section shall be liable for the unpaid penalty or any unpaid
5portion of the penalty. Upon investigation by the Department
6of Insurance, the Attorney General shall have the authority to
7prosecute all proceedings to enforce the civil and
8administrative provisions of this Section before the
9Commission. The Commission and the Department of Insurance
10shall promulgate procedural rules for enforcing this Section
11relating to their respective duties prescribed herein.
12    Any final order of the Commission imposing penalties under
13this Section may be reviewed as described in subsection (f) of
14Section 19. It shall be the duty of the Attorney General to
15represent the Commission in any review proceeding. After all
16reviews have been exhausted or waived, the Commission's order
17imposing penalties is a debt due and owing the State and may be
18enforced in the same manner as a judgment entered by a court of
19competent jurisdiction as described in subsection (g) of
20Section 19. It shall be the duty of the Attorney General to
21make all reasonable efforts to collect the amounts due under
22the Commission's order.
23    Upon the failure or refusal of any employer, service or
24adjustment company or insurance carrier to comply with the
25provisions of this Section and with the orders of the
26Commission under this Section, or the order of the court on

 

 

HB5575- 38 -LRB103 36543 SPS 66650 b

1review after final adjudication, the Commission may bring a
2civil action to recover the amount of the penalty in Cook
3County or in Sangamon County in which litigation the
4Commission shall be represented by the Attorney General. The
5Commission shall send notice of its finding of non-compliance
6and assessment of the civil penalty to the Attorney General.
7It shall be the duty of the Attorney General within 30 days
8after receipt of the notice, to institute prosecutions and
9promptly prosecute all reported violations of this Section.
10    Any individual employer, corporate officer or director of
11a corporate employer, partner of an employer partnership, or
12member of an employer limited liability company who, with the
13intent to avoid payment of compensation under this Act to an
14injured employee or the employee's dependents, knowingly
15transfers, sells, encumbers, assigns, or in any manner
16disposes of, conceals, secretes, or destroys any property
17belonging to the employer, officer, director, partner, or
18member is guilty of a Class 4 felony.
19    Penalties and fines collected pursuant to this paragraph
20(d) shall be deposited upon receipt into a special fund which
21shall be designated the Injured Workers' Benefit Fund, of
22which the State Treasurer is ex-officio custodian, such
23special fund to be held and disbursed in accordance with this
24paragraph (d) for the purposes hereinafter stated in this
25paragraph (d), upon the final order of the Commission. The
26Injured Workers' Benefit Fund shall be deposited the same as

 

 

HB5575- 39 -LRB103 36543 SPS 66650 b

1are State funds and any interest accruing thereon shall be
2added thereto every 6 months. The Injured Workers' Benefit
3Fund is subject to audit the same as State funds and accounts
4and is protected by the general bond given by the State
5Treasurer. The Injured Workers' Benefit Fund is considered
6always appropriated for the purposes of disbursements as
7provided in this paragraph, and shall be paid out and
8disbursed as herein provided and shall not at any time be
9appropriated or diverted to any other use or purpose. Moneys
10in the Injured Workers' Benefit Fund shall be used only for
11payment of workers' compensation benefits for injured
12employees when the employer has failed to provide coverage as
13determined under this paragraph (d) and has failed to pay the
14benefits due to the injured employee.
15    The Commission shall have the right to order any employer
16who has failed to properly secure their workers' compensation
17obligations to reimburse obtain reimbursement from the
18employer for compensation obligations paid by the Injured
19Workers' Benefit Fund for amounts paid by the Injured Workers'
20Benefit Fund to the employer's employees. The Commission shall
21reserve jurisdiction in any matter in which an award is made
22against the Injured Workers' Benefit Fund for the purpose of
23issuing an order requiring reimbursement of the Injured
24Workers' Benefit Fund once the amount paid is known. Within 30
25days after payment by the Injured Workers' Benefit Fund to the
26employee, the Commission shall enter an order requiring the

 

 

HB5575- 40 -LRB103 36543 SPS 66650 b

1employer to reimburse the Injured Workers' Benefit Fund. Any
2final order may be reviewed as described in subsection (f) of
3Section 19. It shall be the duty of the Attorney General to
4represent the Commission in any review proceeding. After all
5reviews have been exhausted or waived, the Commission's order
6requiring reimbursement is a debt due and owing this State and
7may be enforced in the same manner as a judgment entered by a
8court of competent jurisdiction as described in subsection (g)
9of Section 19. It shall be the duty of the Attorney General to
10make all reasonable efforts to collect the amounts due under
11the Commission's order. Any such amounts obtained shall be
12deposited by the Commission into the Injured Workers' Benefit
13Fund. If an injured employee or his or her personal
14representative receives payment from the Injured Workers'
15Benefit Fund, the State of Illinois has the same rights under
16paragraph (b) of Section 5 that the employer who failed to pay
17the benefits due to the injured employee would have had if the
18employer had paid those benefits, and any moneys recovered by
19the State as a result of the State's exercise of its rights
20under paragraph (b) of Section 5 shall be deposited into the
21Injured Workers' Benefit Fund. The custodian of the Injured
22Workers' Benefit Fund shall be joined with the employer as a
23party respondent in the application for adjustment of claim.
24After July 1, 2006, the Commission shall make disbursements
25from the Fund once each year to each eligible claimant. An
26eligible claimant is an injured worker who has within the

 

 

HB5575- 41 -LRB103 36543 SPS 66650 b

1previous fiscal year obtained a final award for benefits from
2the Commission against the employer and the Injured Workers'
3Benefit Fund and has notified the Commission within 90 days of
4receipt of such award. Within a reasonable time after the end
5of each fiscal year, the Commission shall make a disbursement
6to each eligible claimant. At the time of disbursement, if
7there are insufficient moneys in the Fund to pay all claims,
8each eligible claimant shall receive a pro-rata share, as
9determined by the Commission, of the available moneys in the
10Fund for that year. Payment from the Injured Workers' Benefit
11Fund to an eligible claimant pursuant to this provision shall
12discharge the obligations of the Injured Workers' Benefit Fund
13regarding the award entered by the Commission.
14    (e) This Act shall not affect or disturb the continuance
15of any existing insurance, mutual aid, benefit, or relief
16association or department, whether maintained in whole or in
17part by the employer or whether maintained by the employees,
18the payment of benefits of such association or department
19being guaranteed by the employer or by some person, firm or
20corporation for him or her: Provided, the employer contributes
21to such association or department an amount not less than the
22full compensation herein provided, exclusive of the cost of
23the maintenance of such association or department and without
24any expense to the employee. This Act shall not prevent the
25organization and maintaining under the insurance laws of this
26State of any benefit or insurance company for the purpose of

 

 

HB5575- 42 -LRB103 36543 SPS 66650 b

1insuring against the compensation provided for in this Act,
2the expense of which is maintained by the employer. This Act
3shall not prevent the organization or maintaining under the
4insurance laws of this State of any voluntary mutual aid,
5benefit or relief association among employees for the payment
6of additional accident or sick benefits.
7    (f) No existing insurance, mutual aid, benefit or relief
8association or department shall, by reason of anything herein
9contained, be authorized to discontinue its operation without
10first discharging its obligations to any and all persons
11carrying insurance in the same or entitled to relief or
12benefits therein.
13    (g) Any contract, oral, written or implied, of employment
14providing for relief benefit, or insurance or any other device
15whereby the employee is required to pay any premium or
16premiums for insurance against the compensation provided for
17in this Act shall be null and void. Any employer withholding
18from the wages of any employee any amount for the purpose of
19paying any such premium shall be guilty of a Class B
20misdemeanor.
21    In the event the employer does not pay the compensation
22for which he or she is liable, then an insurance company,
23association or insurer which may have insured such employer
24against such liability shall become primarily liable to pay to
25the employee, his or her personal representative or
26beneficiary the compensation required by the provisions of

 

 

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1this Act to be paid by such employer. The insurance carrier may
2be made a party to the proceedings in which the employer is a
3party and an award may be entered jointly against the employer
4and the insurance carrier.
5    (h) It shall be unlawful for any employer, insurance
6company or service or adjustment company to interfere with,
7restrain or coerce an employee in any manner whatsoever in the
8exercise of the rights or remedies granted to him or her by
9this Act or to discriminate, attempt to discriminate, or
10threaten to discriminate against an employee in any way
11because of his or her exercise of the rights or remedies
12granted to him or her by this Act.
13    It shall be unlawful for any employer, individually or
14through any insurance company or service or adjustment
15company, to discharge or to threaten to discharge, or to
16refuse to rehire or recall to active service in a suitable
17capacity an employee because of the exercise of his or her
18rights or remedies granted to him or her by this Act.
19    (i) If an employer elects to obtain a life insurance
20policy on his employees, he may also elect to apply such
21benefits in satisfaction of all or a portion of the death
22benefits payable under this Act, in which case, the employer's
23compensation premium shall be reduced accordingly.
24    (j) Within 45 days of receipt of an initial application or
25application to renew self-insurance privileges the
26Self-Insurers Advisory Board shall review and submit for

 

 

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1approval by the Chairman of the Commission recommendations of
2disposition of all initial applications to self-insure and all
3applications to renew self-insurance privileges filed by
4private self-insurers pursuant to the provisions of this
5Section and Section 4a-9 of this Act. Each private
6self-insurer shall submit with its initial and renewal
7applications the application fee required by Section 4a-4 of
8this Act.
9    The Chairman of the Commission shall promptly act upon all
10initial applications and applications for renewal in full
11accordance with the recommendations of the Board or, should
12the Chairman disagree with any recommendation of disposition
13of the Self-Insurer's Advisory Board, he shall within 30 days
14of receipt of such recommendation provide to the Board in
15writing the reasons supporting his decision. The Chairman
16shall also promptly notify the employer of his decision within
1715 days of receipt of the recommendation of the Board.
18    If an employer is denied a renewal of self-insurance
19privileges pursuant to application it shall retain said
20privilege for 120 days after receipt of a notice of
21cancellation of the privilege from the Chairman of the
22Commission.
23    All orders made by the Chairman under this Section shall
24be subject to review by the courts, such review to be taken in
25the same manner and within the same time as provided by
26subsection (f) of Section 19 of this Act for review of awards

 

 

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1and decisions of the Commission, upon the party seeking the
2review filing with the clerk of the court to which such review
3is taken a bond in an amount to be fixed and approved by the
4court to which the review is taken, conditioned upon the
5payment of all compensation awarded against the person taking
6such review pending a decision thereof and further conditioned
7upon such other obligations as the court may impose. Upon the
8review the Circuit Court shall have power to review all
9questions of fact as well as of law.
10(Source: P.A. 101-384, eff. 1-1-20; 102-37, eff. 7-1-21.)
 
11    (820 ILCS 305/19)  (from Ch. 48, par. 138.19)
12    Sec. 19. Any disputed questions of law or fact shall be
13determined as herein provided.
14    (a) It shall be the duty of the Commission upon
15notification that the parties have failed to reach an
16agreement, to designate an Arbitrator.
17        1. Whenever any claimant misconceives his remedy and
18    files an application for adjustment of claim under this
19    Act and it is subsequently discovered, at any time before
20    final disposition of such cause, that the claim for
21    disability or death which was the basis for such
22    application should properly have been made under the
23    Workers' Occupational Diseases Act, then the provisions of
24    Section 19, paragraph (a-1) of the Workers' Occupational
25    Diseases Act having reference to such application shall

 

 

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1    apply.
2        2. Whenever any claimant misconceives his remedy and
3    files an application for adjustment of claim under the
4    Workers' Occupational Diseases Act and it is subsequently
5    discovered, at any time before final disposition of such
6    cause that the claim for injury or death which was the
7    basis for such application should properly have been made
8    under this Act, then the application so filed under the
9    Workers' Occupational Diseases Act may be amended in form,
10    substance or both to assert claim for such disability or
11    death under this Act and it shall be deemed to have been so
12    filed as amended on the date of the original filing
13    thereof, and such compensation may be awarded as is
14    warranted by the whole evidence pursuant to this Act. When
15    such amendment is submitted, further or additional
16    evidence may be heard by the Arbitrator or Commission when
17    deemed necessary. Nothing in this Section contained shall
18    be construed to be or permit a waiver of any provisions of
19    this Act with reference to notice but notice if given
20    shall be deemed to be a notice under the provisions of this
21    Act if given within the time required herein.
22    (b) The Arbitrator shall make such inquiries and
23investigations as he or they shall deem necessary and may
24examine and inspect all books, papers, records, places, or
25premises relating to the questions in dispute and hear such
26proper evidence as the parties may submit.

 

 

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1    The hearings before the Arbitrator shall be held in the
2vicinity where the injury occurred after 10 days' notice of
3the time and place of such hearing shall have been given to
4each of the parties or their attorneys of record.
5    The Arbitrator may find that the disabling condition is
6temporary and has not yet reached a permanent condition and
7may order the payment of compensation up to the date of the
8hearing, which award shall be reviewable and enforceable in
9the same manner as other awards, and in no instance be a bar to
10a further hearing and determination of a further amount of
11temporary total compensation or of compensation for permanent
12disability, but shall be conclusive as to all other questions
13except the nature and extent of said disability.
14    The decision of the Arbitrator shall be filed with the
15Commission which Commission shall immediately send to each
16party or his attorney a copy of such decision, together with a
17notification of the time when it was filed. As of the effective
18date of this amendatory Act of the 94th General Assembly, all
19decisions of the Arbitrator shall set forth in writing
20findings of fact and conclusions of law, separately stated, if
21requested by either party. Unless a petition for review is
22filed by either party within 30 days after the receipt by such
23party of the copy of the decision and notification of time when
24filed, and unless such party petitioning for a review shall
25within 35 days after the receipt by him of the copy of the
26decision, file with the Commission either an agreed statement

 

 

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1of the facts appearing upon the hearing before the Arbitrator,
2or if such party shall so elect a correct transcript of
3evidence of the proceedings at such hearings, then the
4decision shall become the decision of the Commission and in
5the absence of fraud shall be conclusive. The Petition for
6Review shall contain a statement of the petitioning party's
7specific exceptions to the decision of the arbitrator. The
8jurisdiction of the Commission to review the decision of the
9arbitrator shall not be limited to the exceptions stated in
10the Petition for Review. The Commission, or any member
11thereof, may grant further time not exceeding 30 days, in
12which to file such agreed statement or transcript of evidence.
13Such agreed statement of facts or correct transcript of
14evidence, as the case may be, shall be authenticated by the
15signatures of the parties or their attorneys, and in the event
16they do not agree as to the correctness of the transcript of
17evidence it shall be authenticated by the signature of the
18Arbitrator designated by the Commission.
19    Whether the employee is working or not, if the employee is
20not receiving or has not received medical, surgical, or
21hospital services or other services or compensation as
22provided in paragraph (a) of Section 8, or compensation as
23provided in paragraph (b) of Section 8, the employee may at any
24time petition for an expedited hearing by an Arbitrator on the
25issue of whether or not he or she is entitled to receive
26payment of the services or compensation. Provided the employer

 

 

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1continues to pay compensation pursuant to paragraph (b) of
2Section 8, the employer may at any time petition for an
3expedited hearing on the issue of whether or not the employee
4is entitled to receive medical, surgical, or hospital services
5or other services or compensation as provided in paragraph (a)
6of Section 8, or compensation as provided in paragraph (b) of
7Section 8. When an employer has petitioned for an expedited
8hearing, the employer shall continue to pay compensation as
9provided in paragraph (b) of Section 8 unless the arbitrator
10renders a decision that the employee is not entitled to the
11benefits that are the subject of the expedited hearing or
12unless the employee's treating physician has released the
13employee to return to work at his or her regular job with the
14employer or the employee actually returns to work at any other
15job. If the arbitrator renders a decision that the employee is
16not entitled to the benefits that are the subject of the
17expedited hearing, a petition for review filed by the employee
18shall receive the same priority as if the employee had filed a
19petition for an expedited hearing by an Arbitrator. Neither
20party shall be entitled to an expedited hearing when the
21employee has returned to work and the sole issue in dispute
22amounts to less than 12 weeks of unpaid compensation pursuant
23to paragraph (b) of Section 8.
24    Expedited hearings shall have priority over all other
25petitions and shall be heard by the Arbitrator and Commission
26with all convenient speed. Any party requesting an expedited

 

 

HB5575- 50 -LRB103 36543 SPS 66650 b

1hearing shall give notice of a request for an expedited
2hearing under this paragraph. A copy of the Application for
3Adjustment of Claim shall be attached to the notice. The
4Commission shall adopt rules and procedures under which the
5final decision of the Commission under this paragraph is filed
6not later than 180 days from the date that the Petition for
7Review is filed with the Commission.
8    Where 2 or more insurance carriers, private self-insureds,
9or a group workers' compensation pool under Article V 3/4 of
10the Illinois Insurance Code dispute coverage for the same
11injury, any such insurance carrier, private self-insured, or
12group workers' compensation pool may request an expedited
13hearing pursuant to this paragraph to determine the issue of
14coverage, provided coverage is the only issue in dispute and
15all other issues are stipulated and agreed to and further
16provided that all compensation benefits including medical
17benefits pursuant to Section 8(a) continue to be paid to or on
18behalf of petitioner. Any insurance carrier, private
19self-insured, or group workers' compensation pool that is
20determined to be liable for coverage for the injury in issue
21shall reimburse any insurance carrier, private self-insured,
22or group workers' compensation pool that has paid benefits to
23or on behalf of petitioner for the injury.
24    (b-1) If the employee is not receiving medical, surgical
25or hospital services as provided in paragraph (a) of Section 8
26or compensation as provided in paragraph (b) of Section 8, the

 

 

HB5575- 51 -LRB103 36543 SPS 66650 b

1employee, in accordance with Commission Rules, may file a
2petition for an emergency hearing by an Arbitrator on the
3issue of whether or not he is entitled to receive payment of
4such compensation or services as provided therein. Such
5petition shall have priority over all other petitions and
6shall be heard by the Arbitrator and Commission with all
7convenient speed.
8    Such petition shall contain the following information and
9shall be served on the employer at least 15 days before it is
10filed:
11        (i) the date and approximate time of accident;
12        (ii) the approximate location of the accident;
13        (iii) a description of the accident;
14        (iv) the nature of the injury incurred by the
15    employee;
16        (v) the identity of the person, if known, to whom the
17    accident was reported and the date on which it was
18    reported;
19        (vi) the name and title of the person, if known,
20    representing the employer with whom the employee conferred
21    in any effort to obtain compensation pursuant to paragraph
22    (b) of Section 8 of this Act or medical, surgical or
23    hospital services pursuant to paragraph (a) of Section 8
24    of this Act and the date of such conference;
25        (vii) a statement that the employer has refused to pay
26    compensation pursuant to paragraph (b) of Section 8 of

 

 

HB5575- 52 -LRB103 36543 SPS 66650 b

1    this Act or for medical, surgical or hospital services
2    pursuant to paragraph (a) of Section 8 of this Act;
3        (viii) the name and address, if known, of each witness
4    to the accident and of each other person upon whom the
5    employee will rely to support his allegations;
6        (ix) the dates of treatment related to the accident by
7    medical practitioners, and the names and addresses of such
8    practitioners, including the dates of treatment related to
9    the accident at any hospitals and the names and addresses
10    of such hospitals, and a signed authorization permitting
11    the employer to examine all medical records of all
12    practitioners and hospitals named pursuant to this
13    paragraph;
14        (x) a copy of a signed report by a medical
15    practitioner, relating to the employee's current inability
16    to return to work because of the injuries incurred as a
17    result of the accident or such other documents or
18    affidavits which show that the employee is entitled to
19    receive compensation pursuant to paragraph (b) of Section
20    8 of this Act or medical, surgical or hospital services
21    pursuant to paragraph (a) of Section 8 of this Act. Such
22    reports, documents or affidavits shall state, if possible,
23    the history of the accident given by the employee, and
24    describe the injury and medical diagnosis, the medical
25    services for such injury which the employee has received
26    and is receiving, the physical activities which the

 

 

HB5575- 53 -LRB103 36543 SPS 66650 b

1    employee cannot currently perform as a result of any
2    impairment or disability due to such injury, and the
3    prognosis for recovery;
4        (xi) complete copies of any reports, records,
5    documents and affidavits in the possession of the employee
6    on which the employee will rely to support his
7    allegations, provided that the employer shall pay the
8    reasonable cost of reproduction thereof;
9        (xii) a list of any reports, records, documents and
10    affidavits which the employee has demanded by subpoena and
11    on which he intends to rely to support his allegations;
12        (xiii) a certification signed by the employee or his
13    representative that the employer has received the petition
14    with the required information 15 days before filing.
15    Fifteen days after receipt by the employer of the petition
16with the required information the employee may file said
17petition and required information and shall serve notice of
18the filing upon the employer. The employer may file a motion
19addressed to the sufficiency of the petition. If an objection
20has been filed to the sufficiency of the petition, the
21arbitrator shall rule on the objection within 2 working days.
22If such an objection is filed, the time for filing the final
23decision of the Commission as provided in this paragraph shall
24be tolled until the arbitrator has determined that the
25petition is sufficient.
26    The employer shall, within 15 days after receipt of the

 

 

HB5575- 54 -LRB103 36543 SPS 66650 b

1notice that such petition is filed, file with the Commission
2and serve on the employee or his representative a written
3response to each claim set forth in the petition, including
4the legal and factual basis for each disputed allegation and
5the following information: (i) complete copies of any reports,
6records, documents and affidavits in the possession of the
7employer on which the employer intends to rely in support of
8his response, (ii) a list of any reports, records, documents
9and affidavits which the employer has demanded by subpoena and
10on which the employer intends to rely in support of his
11response, (iii) the name and address of each witness on whom
12the employer will rely to support his response, and (iv) the
13names and addresses of any medical practitioners selected by
14the employer pursuant to Section 12 of this Act and the time
15and place of any examination scheduled to be made pursuant to
16such Section.
17    Any employer who does not timely file and serve a written
18response without good cause may not introduce any evidence to
19dispute any claim of the employee but may cross examine the
20employee or any witness brought by the employee and otherwise
21be heard.
22    No document or other evidence not previously identified by
23either party with the petition or written response, or by any
24other means before the hearing, may be introduced into
25evidence without good cause. If, at the hearing, material
26information is discovered which was not previously disclosed,

 

 

HB5575- 55 -LRB103 36543 SPS 66650 b

1the Arbitrator may extend the time for closing proof on the
2motion of a party for a reasonable period of time which may be
3more than 30 days. No evidence may be introduced pursuant to
4this paragraph as to permanent disability. No award may be
5entered for permanent disability pursuant to this paragraph.
6Either party may introduce into evidence the testimony taken
7by deposition of any medical practitioner.
8    The Commission shall adopt rules, regulations and
9procedures whereby the final decision of the Commission is
10filed not later than 90 days from the date the petition for
11review is filed but in no event later than 180 days from the
12date the petition for an emergency hearing is filed with the
13Illinois Workers' Compensation Commission.
14    All service required pursuant to this paragraph (b-1) must
15be by personal service or by certified mail and with evidence
16of receipt. In addition for the purposes of this paragraph,
17all service on the employer must be at the premises where the
18accident occurred if the premises are owned or operated by the
19employer. Otherwise service must be at the employee's
20principal place of employment by the employer. If service on
21the employer is not possible at either of the above, then
22service shall be at the employer's principal place of
23business. After initial service in each case, service shall be
24made on the employer's attorney or designated representative.
25    (c)(1) At a reasonable time in advance of and in
26connection with the hearing under Section 19(e) or 19(h), the

 

 

HB5575- 56 -LRB103 36543 SPS 66650 b

1Commission may on its own motion order an impartial physical
2or mental examination of a petitioner whose mental or physical
3condition is in issue, when in the Commission's discretion it
4appears that such an examination will materially aid in the
5just determination of the case. The examination shall be made
6by a member or members of a panel of physicians chosen for
7their special qualifications by the Illinois State Medical
8Society. The Commission shall establish procedures by which a
9physician shall be selected from such list.
10    (2) Should the Commission at any time during the hearing
11find that compelling considerations make it advisable to have
12an examination and report at that time, the commission may in
13its discretion so order.
14    (3) A copy of the report of examination shall be given to
15the Commission and to the attorneys for the parties.
16    (4) Either party or the Commission may call the examining
17physician or physicians to testify. Any physician so called
18shall be subject to cross-examination.
19    (5) The examination shall be made, and the physician or
20physicians, if called, shall testify, without cost to the
21parties. The Commission shall determine the compensation and
22the pay of the physician or physicians. The compensation for
23this service shall not exceed the usual and customary amount
24for such service.
25    (6) The fees and payment thereof of all attorneys and
26physicians for services authorized by the Commission under

 

 

HB5575- 57 -LRB103 36543 SPS 66650 b

1this Act shall, upon request of either the employer or the
2employee or the beneficiary affected, be subject to the review
3and decision of the Commission.
4    (d) If any employee shall persist in insanitary or
5injurious practices which tend to either imperil or retard his
6recovery or shall refuse to submit to such medical, surgical,
7or hospital treatment as is reasonably essential to promote
8his recovery, the Commission may, in its discretion, reduce or
9suspend the compensation of any such injured employee.
10However, when an employer and employee so agree in writing,
11the foregoing provision shall not be construed to authorize
12the reduction or suspension of compensation of an employee who
13is relying in good faith, on treatment by prayer or spiritual
14means alone, in accordance with the tenets and practice of a
15recognized church or religious denomination, by a duly
16accredited practitioner thereof.
17    (e) This paragraph shall apply to all hearings before the
18Commission. Such hearings may be held in its office or
19elsewhere as the Commission may deem advisable. The taking of
20testimony on such hearings may be had before any member of the
21Commission. If a petition for review and agreed statement of
22facts or transcript of evidence is filed, as provided herein,
23the Commission shall promptly review the decision of the
24Arbitrator and all questions of law or fact which appear from
25the statement of facts or transcript of evidence.
26    In all cases in which the hearing before the arbitrator is

 

 

HB5575- 58 -LRB103 36543 SPS 66650 b

1held after December 18, 1989, no additional evidence shall be
2introduced by the parties before the Commission on review of
3the decision of the Arbitrator. In reviewing decisions of an
4arbitrator the Commission shall award such temporary
5compensation, permanent compensation and other payments as are
6due under this Act. The Commission shall file in its office its
7decision thereon, and shall immediately send to each party or
8his attorney a copy of such decision and a notification of the
9time when it was filed. Decisions shall be filed within 60 days
10after the Statement of Exceptions and Supporting Brief and
11Response thereto are required to be filed or oral argument
12whichever is later.
13    In the event either party requests oral argument, such
14argument shall be had before a panel of 3 members of the
15Commission (or before all available members pursuant to the
16determination of 7 members of the Commission that such
17argument be held before all available members of the
18Commission) pursuant to the rules and regulations of the
19Commission. A panel of 3 members, which shall be comprised of
20not more than one representative citizen of the employing
21class and not more than one representative from a labor
22organization recognized under the National Labor Relations Act
23or an attorney who has represented labor organizations or has
24represented employees in workers' compensation cases, shall
25hear the argument; provided that if all the issues in dispute
26are solely the nature and extent of the permanent partial

 

 

HB5575- 59 -LRB103 36543 SPS 66650 b

1disability, if any, a majority of the panel may deny the
2request for such argument and such argument shall not be held;
3and provided further that 7 members of the Commission may
4determine that the argument be held before all available
5members of the Commission. A decision of the Commission shall
6be approved by a majority of Commissioners present at such
7hearing if any; provided, if no such hearing is held, a
8decision of the Commission shall be approved by a majority of a
9panel of 3 members of the Commission as described in this
10Section. The Commission shall give 10 days' notice to the
11parties or their attorneys of the time and place of such taking
12of testimony and of such argument.
13    In any case the Commission in its decision may find
14specially upon any question or questions of law or fact which
15shall be submitted in writing by either party whether ultimate
16or otherwise; provided that on issues other than nature and
17extent of the disability, if any, the Commission in its
18decision shall find specially upon any question or questions
19of law or fact, whether ultimate or otherwise, which are
20submitted in writing by either party; provided further that
21not more than 5 such questions may be submitted by either
22party. Any party may, within 20 days after receipt of notice of
23the Commission's decision, or within such further time, not
24exceeding 30 days, as the Commission may grant, file with the
25Commission either an agreed statement of the facts appearing
26upon the hearing, or, if such party shall so elect, a correct

 

 

HB5575- 60 -LRB103 36543 SPS 66650 b

1transcript of evidence of the additional proceedings presented
2before the Commission, in which report the party may embody a
3correct statement of such other proceedings in the case as
4such party may desire to have reviewed, such statement of
5facts or transcript of evidence to be authenticated by the
6signature of the parties or their attorneys, and in the event
7that they do not agree, then the authentication of such
8transcript of evidence shall be by the signature of any member
9of the Commission.
10    If a reporter does not for any reason furnish a transcript
11of the proceedings before the Arbitrator in any case for use on
12a hearing for review before the Commission, within the
13limitations of time as fixed in this Section, the Commission
14may, in its discretion, order a trial de novo before the
15Commission in such case upon application of either party. The
16applications for adjustment of claim and other documents in
17the nature of pleadings filed by either party, together with
18the decisions of the Arbitrator and of the Commission and the
19statement of facts or transcript of evidence hereinbefore
20provided for in paragraphs (b) and (c) shall be the record of
21the proceedings of the Commission, and shall be subject to
22review as hereinafter provided.
23    At the request of either party or on its own motion, the
24Commission shall set forth in writing the reasons for the
25decision, including findings of fact and conclusions of law
26separately stated. The Commission shall by rule adopt a format

 

 

HB5575- 61 -LRB103 36543 SPS 66650 b

1for written decisions for the Commission and arbitrators. The
2written decisions shall be concise and shall succinctly state
3the facts and reasons for the decision. The Commission may
4adopt in whole or in part, the decision of the arbitrator as
5the decision of the Commission. When the Commission does so
6adopt the decision of the arbitrator, it shall do so by order.
7Whenever the Commission adopts part of the arbitrator's
8decision, but not all, it shall include in the order the
9reasons for not adopting all of the arbitrator's decision.
10When a majority of a panel, after deliberation, has arrived at
11its decision, the decision shall be filed as provided in this
12Section without unnecessary delay, and without regard to the
13fact that a member of the panel has expressed an intention to
14dissent. Any member of the panel may file a dissent. Any
15dissent shall be filed no later than 10 days after the decision
16of the majority has been filed.
17    Decisions rendered by the Commission and dissents, if any,
18shall be published together by the Commission. The conclusions
19of law set out in such decisions shall be regarded as
20precedents by arbitrators for the purpose of achieving a more
21uniform administration of this Act.
22    (f) The decision of the Commission acting within its
23powers, according to the provisions of paragraph (e) of this
24Section shall, in the absence of fraud, be conclusive unless
25reviewed as in this paragraph hereinafter provided. However,
26the Arbitrator or the Commission may on his or its own motion,

 

 

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1or on the motion of either party, correct any clerical error or
2errors in computation within 15 days after the date of receipt
3of any award by such Arbitrator or any decision on review of
4the Commission and shall have the power to recall the original
5award on arbitration or decision on review, and issue in lieu
6thereof such corrected award or decision. Where such
7correction is made the time for review herein specified shall
8begin to run from the date of the receipt of the corrected
9award or decision.
10        (1) Except in cases of claims against the State of
11    Illinois other than those claims under Section 18.1, in
12    which case the decision of the Commission shall not be
13    subject to judicial review, the Circuit Court of the
14    county where any of the parties defendant may be found, or
15    if none of the parties defendant can be found in this State
16    then the Circuit Court of the county where the accident
17    occurred, shall by summons to the Commission have power to
18    review all questions of law and fact presented by such
19    record.
20        A proceeding for review shall be commenced within 20
21    days of the receipt of notice of the decision of the
22    Commission. The summons shall be issued by the clerk of
23    such court upon written request returnable on a designated
24    return day, not less than 10 or more than 60 days from the
25    date of issuance thereof, and the written request shall
26    contain the last known address of other parties in

 

 

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1    interest and their attorneys of record who are to be
2    served by summons. Service upon any member of the
3    Commission or the Secretary or the Assistant Secretary
4    thereof shall be service upon the Commission, and service
5    upon other parties in interest and their attorneys of
6    record shall be by summons, and such service shall be made
7    upon the Commission and other parties in interest by
8    mailing notices of the commencement of the proceedings and
9    the return day of the summons to the office of the
10    Commission and to the last known place of residence of
11    other parties in interest or their attorney or attorneys
12    of record. The clerk of the court issuing the summons
13    shall on the day of issue mail notice of the commencement
14    of the proceedings which shall be done by mailing a copy of
15    the summons to the office of the Commission, and a copy of
16    the summons to the other parties in interest or their
17    attorney or attorneys of record and the clerk of the court
18    shall make certificate that he has so sent said notices in
19    pursuance of this Section, which shall be evidence of
20    service on the Commission and other parties in interest.
21        The Commission shall not be required to certify the
22    record of their proceedings to the Circuit Court, unless
23    the party commencing the proceedings for review in the
24    Circuit Court as above provided, shall file with the
25    Commission notice of intent to file for review in Circuit
26    Court. It shall be the duty of the Commission upon such

 

 

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1    filing of notice of intent to file for review in the
2    Circuit Court to prepare a true and correct copy of such
3    testimony and a true and correct copy of all other matters
4    contained in such record and certified to by the Secretary
5    or Assistant Secretary thereof. The changes made to this
6    subdivision (f)(1) by this amendatory Act of the 98th
7    General Assembly apply to any Commission decision entered
8    after the effective date of this amendatory Act of the
9    98th General Assembly.
10        No request for a summons may be filed and no summons
11    shall issue unless the party seeking to review the
12    decision of the Commission shall exhibit to the clerk of
13    the Circuit Court proof of filing with the Commission of
14    the notice of the intent to file for review in the Circuit
15    Court or an affidavit of the attorney setting forth that
16    notice of intent to file for review in the Circuit Court
17    has been given in writing to the Secretary or Assistant
18    Secretary of the Commission.
19        (2) No such summons shall issue unless the one against
20    whom the Commission shall have rendered an award for the
21    payment of money shall upon the filing of his written
22    request for such summons file with the clerk of the court a
23    bond conditioned that if he shall not successfully
24    prosecute the review, he will pay the award and the costs
25    of the proceedings in the courts. The amount of the bond
26    shall be fixed by any member of the Commission and the

 

 

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1    surety or sureties of the bond shall be approved by the
2    clerk of the court. The acceptance of the bond by the clerk
3    of the court shall constitute evidence of his approval of
4    the bond.
5        The following shall not be required to file a bond to
6    secure the payment of the award and the costs of the
7    proceedings in the court to authorize the court to issue
8    such summons:
9            (1) the State Treasurer, for a fund administered
10        by the State Treasurer ex officio against whom the
11        Commission shall have rendered an award for the
12        payment of money; and
13            (2) a county, city, town, township, incorporated
14        village, school district, body politic, or municipal
15        corporation against whom the Commission shall have
16        rendered an award for the payment of money.
17        The court may confirm or set aside the decision of the
18    Commission. If the decision is set aside and the facts
19    found in the proceedings before the Commission are
20    sufficient, the court may enter such decision as is
21    justified by law, or may remand the cause to the
22    Commission for further proceedings and may state the
23    questions requiring further hearing, and give such other
24    instructions as may be proper. Appeals shall be taken to
25    the Appellate Court in accordance with Supreme Court Rules
26    22(g) and 303. Appeals shall be taken from the Appellate

 

 

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1    Court to the Supreme Court in accordance with Supreme
2    Court Rule 315.
3        It shall be the duty of the clerk of any court
4    rendering a decision affecting or affirming an award of
5    the Commission to promptly furnish the Commission with a
6    copy of such decision, without charge.
7        The decision of a majority of the members of the panel
8    of the Commission, shall be considered the decision of the
9    Commission.
10    (g) Except in the case of a claim against the State of
11Illinois, an order of the Commission assessing a civil penalty
12under subsection (d) of Section 4, or an order of the
13Commission requiring reimbursement by the employer for amounts
14paid by the Injured Workers' Benefit Fund under subsection (d)
15of Section 4, either party may present a certified copy of the
16award of the Arbitrator, or a certified copy of the decision of
17the Commission when the same has become final, when no
18proceedings for review are pending, providing for the payment
19of compensation according to this Act, to the Circuit Court of
20the county in which such accident occurred or either of the
21parties are residents, whereupon the court shall enter a
22judgment in accordance therewith. In a case where the employer
23refuses to pay compensation according to such final award or
24such final decision upon which such judgment is entered the
25court shall in entering judgment thereon, tax as costs against
26him the reasonable costs and attorney fees in the arbitration

 

 

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1proceedings and in the court entering the judgment for the
2person in whose favor the judgment is entered, which judgment
3and costs taxed as therein provided shall, until and unless
4set aside, have the same effect as though duly entered in an
5action duly tried and determined by the court, and shall with
6like effect, be entered and docketed. The Circuit Court shall
7have power at any time upon application to make any such
8judgment conform to any modification required by any
9subsequent decision of the Supreme Court upon appeal, or as
10the result of any subsequent proceedings for review, as
11provided in this Act.
12    Judgment shall not be entered until 15 days' notice of the
13time and place of the application for the entry of judgment
14shall be served upon the employer by filing such notice with
15the Commission, which Commission shall, in case it has on file
16the address of the employer or the name and address of its
17agent upon whom notices may be served, immediately send a copy
18of the notice to the employer or such designated agent.
19    Any order of the Commission assessing a civil penalty or
20requiring reimbursement for amounts paid by the Injured
21Workers' Benefit Fund under subsection (d) of Section 4, that
22has not been fully paid, and after the exhaustion or waiver of
23the judicial review procedures under subsection (f), is a debt
24due and owing the State. The debts may be collected using all
25remedies available under the law. After exhaustion of the
26judicial review procedures or expiration of the period in

 

 

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1which judicial review under subsection (f) may be sought for a
2final decision of the Commission, and unless stayed by a court
3of competent jurisdiction, the order of the Commission may be
4enforced in the same manner as a judgment entered by a court of
5competent jurisdiction.
6    Upon being recorded in the manner required by Article XII
7of the Code of Civil Procedure or by the Uniform Commercial
8Code, a lien shall be imposed on the real estate or personal
9estate, or both, of the individual or entity in the amount of
10any debt due and owing the State under this Section. The lien
11may be enforced in the same manner as a judgment of a court of
12competent jurisdiction. A lien shall attach to all property
13and assets of the person, firm, corporation, association,
14agency, institution, or other legal entity until the judgment
15is satisfied.
16    (h) An agreement or award under this Act providing for
17compensation in installments, may at any time within 18 months
18after such agreement or award be reviewed by the Commission at
19the request of either the employer or the employee, on the
20ground that the disability of the employee has subsequently
21recurred, increased, diminished or ended.
22    However, as to accidents occurring subsequent to July 1,
231955, which are covered by any agreement or award under this
24Act providing for compensation in installments made as a
25result of such accident, such agreement or award may at any
26time within 30 months, or 60 months in the case of an award

 

 

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1under Section 8(d)1, after such agreement or award be reviewed
2by the Commission at the request of either the employer or the
3employee on the ground that the disability of the employee has
4subsequently recurred, increased, diminished or ended.
5    On such review, compensation payments may be
6re-established, increased, diminished or ended. The Commission
7shall give 15 days' notice to the parties of the hearing for
8review. Any employee, upon any petition for such review being
9filed by the employer, shall be entitled to one day's notice
10for each 100 miles necessary to be traveled by him in attending
11the hearing of the Commission upon the petition, and 3 days in
12addition thereto. Such employee shall, at the discretion of
13the Commission, also be entitled to 5 cents per mile
14necessarily traveled by him within the State of Illinois in
15attending such hearing, not to exceed a distance of 300 miles,
16to be taxed by the Commission as costs and deposited with the
17petition of the employer.
18    When compensation which is payable in accordance with an
19award or settlement contract approved by the Commission, is
20ordered paid in a lump sum by the Commission, no review shall
21be had as in this paragraph mentioned.
22    (i) Each party, upon taking any proceedings or steps
23whatsoever before any Arbitrator, Commission or court, shall
24file with the Commission his address, or the name and address
25of any agent upon whom all notices to be given to such party
26shall be served, either personally or by registered mail,

 

 

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1addressed to such party or agent at the last address so filed
2with the Commission. In the event such party has not filed his
3address, or the name and address of an agent as above provided,
4service of any notice may be had by filing such notice with the
5Commission.
6    (j) Whenever in any proceeding testimony has been taken or
7a final decision has been rendered and after the taking of such
8testimony or after such decision has become final, the injured
9employee dies, then in any subsequent proceedings brought by
10the personal representative or beneficiaries of the deceased
11employee, such testimony in the former proceeding may be
12introduced with the same force and effect as though the
13witness having so testified were present in person in such
14subsequent proceedings and such final decision, if any, shall
15be taken as final adjudication of any of the issues which are
16the same in both proceedings.
17    (k) In case where there has been any unreasonable or
18vexatious delay of payment or intentional underpayment of
19compensation, or proceedings have been instituted or carried
20on by the one liable to pay the compensation, which do not
21present a real controversy, but are merely frivolous or for
22delay, then the Commission may award compensation additional
23to that otherwise payable under this Act equal to 50% of the
24amount payable at the time of such award. Failure to pay
25compensation in accordance with the provisions of Section 8,
26paragraph (b) of this Act, shall be considered unreasonable

 

 

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1delay.
2    When determining whether this subsection (k) shall apply,
3the Commission shall consider whether an Arbitrator has
4determined that the claim is not compensable or whether the
5employer has made payments under Section 8(j).
6    (l) If the employee has made written demand for payment of
7benefits under Section 8(a) or Section 8(b), the employer
8shall have 14 days after receipt of the demand to set forth in
9writing the reason for the delay. In the case of demand for
10payment of medical benefits under Section 8(a), the time for
11the employer to respond shall not commence until the
12expiration of the allotted 30 days specified under Section
138.2(d). In case the employer or his or her insurance carrier
14shall without good and just cause fail, neglect, refuse, or
15unreasonably delay the payment of benefits under Section 8(a)
16or Section 8(b), the Arbitrator or the Commission shall allow
17to the employee additional compensation in the sum of $30 per
18day for each day that the benefits under Section 8(a) or
19Section 8(b) have been so withheld or refused, not to exceed
20$10,000. A delay in payment of 14 days or more shall create a
21rebuttable presumption of unreasonable delay.
22    (m) If the commission finds that an accidental injury was
23directly and proximately caused by the employer's wilful
24violation of a health and safety standard under the Health and
25Safety Act or the Occupational Safety and Health Act in force
26at the time of the accident, the arbitrator or the Commission

 

 

HB5575- 72 -LRB103 36543 SPS 66650 b

1shall allow to the injured employee or his dependents, as the
2case may be, additional compensation equal to 25% of the
3amount which otherwise would be payable under the provisions
4of this Act exclusive of this paragraph. The additional
5compensation herein provided shall be allowed by an
6appropriate increase in the applicable weekly compensation
7rate.
8    (n) After June 30, 1984, decisions of the Illinois
9Workers' Compensation Commission reviewing an award of an
10arbitrator of the Commission shall draw interest at a rate
11equal to the yield on indebtedness issued by the United States
12Government with a 26-week maturity next previously auctioned
13on the day on which the decision is filed. Said rate of
14interest shall be set forth in the Arbitrator's Decision.
15Interest shall be drawn from the date of the arbitrator's
16award on all accrued compensation due the employee through the
17day prior to the date of payments. However, when an employee
18appeals an award of an Arbitrator or the Commission, and the
19appeal results in no change or a decrease in the award,
20interest shall not further accrue from the date of such
21appeal.
22    The employer or his insurance carrier may tender the
23payments due under the award to stop the further accrual of
24interest on such award notwithstanding the prosecution by
25either party of review, certiorari, appeal to the Supreme
26Court or other steps to reverse, vacate or modify the award.

 

 

HB5575- 73 -LRB103 36543 SPS 66650 b

1    (o) By the 15th day of each month each insurer providing
2coverage for losses under this Act shall notify each insured
3employer of any compensable claim incurred during the
4preceding month and the amounts paid or reserved on the claim
5including a summary of the claim and a brief statement of the
6reasons for compensability. A cumulative report of all claims
7incurred during a calendar year or continued from the previous
8year shall be furnished to the insured employer by the insurer
9within 30 days after the end of that calendar year.
10    The insured employer may challenge, in proceeding before
11the Commission, payments made by the insurer without
12arbitration and payments made after a case is determined to be
13noncompensable. If the Commission finds that the case was not
14compensable, the insurer shall purge its records as to that
15employer of any loss or expense associated with the claim,
16reimburse the employer for attorneys' fees arising from the
17challenge and for any payment required of the employer to the
18Rate Adjustment Fund or the Second Injury Fund, and may not
19reflect the loss or expense for rate making purposes. The
20employee shall not be required to refund the challenged
21payment. The decision of the Commission may be reviewed in the
22same manner as in arbitrated cases. No challenge may be
23initiated under this paragraph more than 3 years after the
24payment is made. An employer may waive the right of challenge
25under this paragraph on a case by case basis.
26    (p) After filing an application for adjustment of claim

 

 

HB5575- 74 -LRB103 36543 SPS 66650 b

1but prior to the hearing on arbitration the parties may
2voluntarily agree to submit such application for adjustment of
3claim for decision by an arbitrator under this subsection (p)
4where such application for adjustment of claim raises only a
5dispute over temporary total disability, permanent partial
6disability or medical expenses. Such agreement shall be in
7writing in such form as provided by the Commission.
8Applications for adjustment of claim submitted for decision by
9an arbitrator under this subsection (p) shall proceed
10according to rule as established by the Commission. The
11Commission shall promulgate rules including, but not limited
12to, rules to ensure that the parties are adequately informed
13of their rights under this subsection (p) and of the voluntary
14nature of proceedings under this subsection (p). The findings
15of fact made by an arbitrator acting within his or her powers
16under this subsection (p) in the absence of fraud shall be
17conclusive. However, the arbitrator may on his own motion, or
18the motion of either party, correct any clerical errors or
19errors in computation within 15 days after the date of receipt
20of such award of the arbitrator and shall have the power to
21recall the original award on arbitration, and issue in lieu
22thereof such corrected award. The decision of the arbitrator
23under this subsection (p) shall be considered the decision of
24the Commission and proceedings for review of questions of law
25arising from the decision may be commenced by either party
26pursuant to subsection (f) of Section 19. The Advisory Board

 

 

HB5575- 75 -LRB103 36543 SPS 66650 b

1established under Section 13.1 shall compile a list of
2certified Commission arbitrators, each of whom shall be
3approved by at least 7 members of the Advisory Board. The
4chairman shall select 5 persons from such list to serve as
5arbitrators under this subsection (p). By agreement, the
6parties shall select one arbitrator from among the 5 persons
7selected by the chairman except that if the parties do not
8agree on an arbitrator from among the 5 persons, the parties
9may, by agreement, select an arbitrator of the American
10Arbitration Association, whose fee shall be paid by the State
11in accordance with rules promulgated by the Commission.
12Arbitration under this subsection (p) shall be voluntary.
13(Source: P.A. 101-384, eff. 1-1-20; 102-775, eff. 5-13-22.)
 
14    (820 ILCS 305/25.5)
15    Sec. 25.5. Unlawful acts; penalties.
16    (a) It is unlawful for any person, company, corporation,
17insurance carrier, healthcare provider, or other entity to:
18        (1) Intentionally present or cause to be presented any
19    false or fraudulent claim for the payment of any workers'
20    compensation benefit.
21        (2) Intentionally make or cause to be made any false
22    or fraudulent material statement or material
23    representation for the purpose of obtaining or denying any
24    workers' compensation benefit.
25        (3) Intentionally make or cause to be made any false

 

 

HB5575- 76 -LRB103 36543 SPS 66650 b

1    or fraudulent statements with regard to entitlement to
2    workers' compensation benefits with the intent to prevent
3    an injured worker from making a legitimate claim for any
4    workers' compensation benefits.
5        (4) Intentionally prepare or provide an invalid,
6    false, or counterfeit certificate of insurance as proof of
7    workers' compensation insurance.
8        (5) Intentionally make or cause to be made any false
9    or fraudulent material statement or material
10    representation for the purpose of obtaining workers'
11    compensation insurance at less than the proper amount for
12    that insurance.
13        (6) Intentionally make or cause to be made any false
14    or fraudulent material statement or material
15    representation on an initial or renewal self-insurance
16    application or accompanying financial statement for the
17    purpose of obtaining self-insurance status or reducing the
18    amount of security that may be required to be furnished
19    pursuant to Section 4 of this Act.
20        (7) Intentionally make or cause to be made any false
21    or fraudulent material statement to the Department of
22    Insurance's fraud and insurance non-compliance unit in the
23    course of an investigation of fraud or insurance
24    non-compliance.
25        (8) Intentionally assist, abet, solicit, or conspire
26    with any person, company, or other entity to commit any of

 

 

HB5575- 77 -LRB103 36543 SPS 66650 b

1    the acts in paragraph (1), (2), (3), (4), (5), (6), or (7)
2    of this subsection (a).
3        (8.5) Intentionally assist, abet, solicit, or conspire
4    with any person, company, or other entity to commit any of
5    the acts in paragraph (4) of this subsection (a).
6        (9) Intentionally present a bill or statement for the
7    payment for medical services that were not provided.
8    For the purposes of paragraphs (2), (3), (5), (6), (7),
9and (9), the term "statement" includes any writing, notice,
10proof of injury, bill for services, hospital or doctor records
11and reports, or X-ray and test results.
12    (b) Sentences for violations of paragraphs (1), (2), (3),
13(5), (6), (7), (8), and (9) of subsection (a) are as follows:
14        (1) A violation in which the value of the property
15    obtained or attempted to be obtained is $300 or less is a
16    Class A misdemeanor.
17        (2) A violation in which the value of the property
18    obtained or attempted to be obtained is more than $300 but
19    not more than $10,000 is a Class 3 felony.
20        (3) A violation in which the value of the property
21    obtained or attempted to be obtained is more than $10,000
22    but not more than $100,000 is a Class 2 felony.
23        (4) A violation in which the value of the property
24    obtained or attempted to be obtained is more than $100,000
25    is a Class 1 felony.
26        (5) A person convicted under this subsection Section

 

 

HB5575- 78 -LRB103 36543 SPS 66650 b

1    shall be ordered to pay monetary restitution to the
2    injured worker, insurance company, or self-insured entity
3    or any other person for any financial loss sustained as a
4    result of a violation of this Section, including any court
5    costs and attorney fees. An order of restitution also
6    includes expenses incurred and paid by the State of
7    Illinois or an insurance company or self-insured entity in
8    connection with any medical evaluation or treatment
9    services.
10    For the purposes of this subsection Section, where the
11exact value of property obtained or attempted to be obtained
12is either not alleged or is not specifically set by the terms
13of a policy of insurance, the value of the property shall be
14the fair market replacement value of the property claimed to
15be lost, the reasonable costs of reimbursing a vendor or other
16claimant for services to be rendered, or both. Notwithstanding
17the foregoing, an injured worker, an insurance company,
18self-insured entity, or any other person suffering financial
19loss sustained as a result of violation of this Section may
20seek restitution, including court costs and attorney's fees in
21a civil action in a court of competent jurisdiction.
22    (b-5) Sentences for violations of paragraphs (4) and (8.5)
23of subsection (a) are as follows:
24        (1) A violation in which the value of the property
25    obtained or attempted to be obtained is $10,000 or less,
26    is a Class 3 felony and a civil penalty of at least $10,000

 

 

HB5575- 79 -LRB103 36543 SPS 66650 b

1    per violation, payable to the Injured Workers' Benefit
2    Fund, shall be assessed.
3        (2) A violation in which the value of the property
4    obtained or attempted to be obtained is more than $10,000,
5    but not more than $100,000, is a Class 2 felony and a civil
6    penalty of at least $10,000 per violation, payable to the
7    Injured Workers' Benefit Fund, shall be assessed.
8        (3) A violation in which the value of the property
9    obtained or attempted to be obtained is more than $100,000
10    is a Class 1 felony and a civil penalty of at least $10,000
11    per violation, payable to the Injured Workers' Benefit
12    Fund, shall be assessed.
13        (4) A person convicted under this subsection shall be
14    ordered to pay monetary restitution to the injured worker,
15    insurance company, or self-insured entity or any other
16    person for any financial loss sustained as a result of a
17    violation of this Section, including any court costs and
18    attorney's fees. An order of restitution also includes
19    expenses incurred and paid by the State of Illinois or an
20    insurance company or self-insured entity in connection
21    with any medical evaluation or treatment services.
22    For the purposes of this subsection, the value of the
23property obtained or attempted to be obtained shall be the
24amount of premiums saved by use of the invalid, false, or
25counterfeit certificate of insurance, the value of any
26payments under any contract obtained by reliance on the

 

 

HB5575- 80 -LRB103 36543 SPS 66650 b

1invalid, false, or counterfeit certificate of insurance, or
2both. Notwithstanding the foregoing, an injured worker,
3insurance company, self-insured entity, or any other person
4suffering financial loss sustained as a result of violation of
5this subsection may seek restitution, including court costs
6and attorney's fees in a civil action in a court of competent
7jurisdiction.
8    (c) The Department of Insurance shall establish a fraud
9and insurance non-compliance unit responsible for
10investigating incidences of fraud and insurance non-compliance
11pursuant to this Section. The size of the staff of the unit
12shall be subject to appropriation by the General Assembly. It
13shall be the duty of the fraud and insurance non-compliance
14unit to determine the identity of insurance carriers,
15employers, employees, or other persons or entities who have
16violated the fraud and insurance non-compliance provisions of
17this Section. The fraud and insurance non-compliance unit
18shall report violations of the fraud and insurance
19non-compliance provisions of this Section to the Special
20Prosecutions Bureau of the Criminal Division of the Office of
21the Attorney General or to the State's Attorney of the county
22in which the offense allegedly occurred, either of whom has
23the authority to prosecute violations under this Section.
24    With respect to the subject of any investigation being
25conducted, the fraud and insurance non-compliance unit shall
26have the general power of subpoena of the Department of

 

 

HB5575- 81 -LRB103 36543 SPS 66650 b

1Insurance, including the authority to issue a subpoena to a
2medical provider, pursuant to Section 8-802 of the Code of
3Civil Procedure.
4    (d) Any person may report allegations of insurance
5non-compliance and fraud pursuant to this Section to the
6Department of Insurance's fraud and insurance non-compliance
7unit whose duty it shall be to investigate the report. The unit
8shall notify the Commission of reports of insurance
9non-compliance. Any person reporting an allegation of
10insurance non-compliance or fraud against either an employee
11or employer under this Section must identify himself. Except
12as provided in this subsection and in subsection (e), all
13reports shall remain confidential except to refer an
14investigation to the Attorney General or State's Attorney for
15prosecution or if the fraud and insurance non-compliance
16unit's investigation reveals that the conduct reported may be
17in violation of other laws or regulations of the State of
18Illinois, the unit may report such conduct to the appropriate
19governmental agency charged with administering such laws and
20regulations. Any person who intentionally makes a false report
21under this Section to the fraud and insurance non-compliance
22unit is guilty of a Class A misdemeanor.
23    (e) In order for the fraud and insurance non-compliance
24unit to investigate a report of fraud related to an employee's
25claim, (i) the employee must have filed with the Commission an
26Application for Adjustment of Claim and the employee must have

 

 

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1either received or attempted to receive benefits under this
2Act that are related to the reported fraud or (ii) the employee
3must have made a written demand for the payment of benefits
4that are related to the reported fraud. There shall be no
5immunity, under this Act or otherwise, for any person who
6files a false report or who files a report without good and
7just cause. Confidentiality of medical information shall be
8strictly maintained. Investigations that are not referred for
9prosecution shall be destroyed upon the expiration of the
10statute of limitations for the acts under investigation and
11shall not be disclosed except that the person making the
12report shall be notified that the investigation is being
13closed. It is unlawful for any employer, insurance carrier,
14service adjustment company, third party administrator,
15self-insured, or similar entity to file or threaten to file a
16report of fraud against an employee because of the exercise by
17the employee of the rights and remedies granted to the
18employee by this Act.
19    (e-5) (Blank).
20    (f) Any person convicted of fraud related to workers'
21compensation pursuant to this Section shall be subject to the
22penalties prescribed in the Criminal Code of 2012 and shall be
23ineligible to receive or retain any compensation, disability,
24or medical benefits as defined in this Act if the
25compensation, disability, or medical benefits were owed or
26received as a result of fraud for which the recipient of the

 

 

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1compensation, disability, or medical benefit was convicted.
2This subsection applies to accidental injuries or diseases
3that occur on or after the effective date of this amendatory
4Act of the 94th General Assembly.
5    (g) Civil liability. Any person convicted of fraud who
6knowingly obtains, attempts to obtain, or causes to be
7obtained any benefits under this Act by the making of a false
8claim or who knowingly misrepresents any material fact shall
9be civilly liable to the payor of benefits or the insurer or
10the payor's or insurer's subrogee or assignee in an amount
11equal to 3 times the value of the benefits or insurance
12coverage wrongfully obtained or twice the value of the
13benefits or insurance coverage attempted to be obtained, plus
14reasonable attorney's fees and expenses incurred by the payor
15or the payor's subrogee or assignee who successfully brings a
16claim under this subsection. This subsection applies to
17accidental injuries or diseases that occur on or after the
18effective date of this amendatory Act of the 94th General
19Assembly.
20    (h) The fraud and insurance non-compliance unit shall
21submit a written report on an annual basis to the Chairman of
22the Commission, the Workers' Compensation Advisory Board, the
23General Assembly, the Governor, and the Attorney General by
24January 1 and July 1 of each year. This report shall include,
25at the minimum, the following information:
26        (1) The number of allegations of insurance

 

 

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1    non-compliance and fraud reported to the fraud and
2    insurance non-compliance unit.
3        (2) The source of the reported allegations
4    (individual, employer, or other).
5        (3) The number of allegations investigated by the
6    fraud and insurance non-compliance unit.
7        (4) The number of criminal referrals made in
8    accordance with this Section and the entity to which the
9    referral was made.
10        (5) All proceedings under this Section.
11        (6) Recommendations regarding opportunities for
12    additional fraud detection.
13(Source: P.A. 102-37, eff. 7-1-21.)