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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||||||||||||||||||||
5 | changing Section 416 as follows:
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6 | (215 ILCS 5/416)
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7 | Sec. 416. Industrial Commission Operations Fund Surcharge.
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8 | (a) As of the effective date of this amendatory Act of the | ||||||||||||||||||||||||
9 | 93rd General
Assembly, every company licensed or
authorized by | ||||||||||||||||||||||||
10 | the Illinois Department of Insurance and insuring employers'
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11 | liabilities arising under the Workers' Compensation Act or the | ||||||||||||||||||||||||
12 | Workers'
Occupational Diseases Act shall remit to the Director | ||||||||||||||||||||||||
13 | a surcharge based upon
the annual direct written premium, as | ||||||||||||||||||||||||
14 | reported under Section 136 of this Act,
of the company in the | ||||||||||||||||||||||||
15 | manner provided in this
Section. Such
proceeds shall
be | ||||||||||||||||||||||||
16 | deposited into the Industrial Commission Operations Fund as
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17 | established in
the Workers' Compensation Act. If a company
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18 | survives or
was formed by a merger, consolidation, | ||||||||||||||||||||||||
19 | reorganization, or reincorporation, the
direct
written | ||||||||||||||||||||||||
20 | premiums of all companies party to the merger, consolidation,
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21 | reorganization, or
reincorporation shall, for purposes of | ||||||||||||||||||||||||
22 | determining the amount of the fee
imposed by this
Section, be | ||||||||||||||||||||||||
23 | regarded as those of the surviving or new company.
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24 | (b)(1) (Blank)
Except as provided in subsection (b)(2) of | ||||||||||||||||||||||||
25 | this Section, beginning on
July 1, 2004 and each year | ||||||||||||||||||||||||
26 | thereafter,
the
Director shall
charge an annual Industrial | ||||||||||||||||||||||||
27 | Commission Operations Fund Surcharge from every
company | ||||||||||||||||||||||||
28 | subject to subsection (a) of this Section equal to 1.5% of its | ||||||||||||||||||||||||
29 | direct
written
premium for insuring employers' liabilities | ||||||||||||||||||||||||
30 | arising under the Workers'
Compensation Act or Workers' | ||||||||||||||||||||||||
31 | Occupational Diseases Act as reported in each
company's
annual
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32 | statement filed for the previous year as required by Section |
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1 | 136. The
Industrial Commission Operations Fund Surcharge shall | ||||||
2 | be collected by companies
subject to subsection (a) of this | ||||||
3 | Section as a separately stated surcharge on
insured employers | ||||||
4 | at the rate of 1.5% of direct written premium. All sums
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5 | collected by
the Department of Insurance under the provisions | ||||||
6 | of this Section shall be paid
promptly
after the receipt of the | ||||||
7 | same, accompanied by a detailed statement thereof,
into the
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8 | Industrial Commission Operations Fund in the State treasury .
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9 | (b)(2) Prior to July 1, 2004, the Director shall charge and | ||||||
10 | collect the
surcharge set forth in subparagraph (b)(1) of this | ||||||
11 | Section on or before
September 1, 2003, December 1, 2003, March | ||||||
12 | 1, 2004 and June 1, 2004. For
purposes
of this subsection | ||||||
13 | (b)(2), the company shall remit the amounts to the Director
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14 | based on estimated direct premium for each quarter beginning on | ||||||
15 | July 1, 2003,
together with a sworn statement attesting to the | ||||||
16 | reasonableness of the
estimate, and the estimated amount of | ||||||
17 | direct premium written forming the bases
of the remittance.
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18 | (c) In addition to the authority specifically granted under | ||||||
19 | Article XXV of
this
Code, the Director shall have such | ||||||
20 | authority to adopt rules or establish forms
as may be
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21 | reasonably necessary for purposes of enforcing this Section. | ||||||
22 | The Director shall
also have
authority to defer, waive, or | ||||||
23 | abate the surcharge or any penalties imposed by
this
Section if | ||||||
24 | in
the Director's opinion the company's solvency and ability to | ||||||
25 | meet its insured
obligations
would be immediately threatened by | ||||||
26 | payment of the surcharge due.
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27 | (d) When a company fails to pay the full amount of any | ||||||
28 | annual
Industrial
Commission Operations Fund Surcharge of $100 | ||||||
29 | or more due under this Section,
there
shall be
added to the | ||||||
30 | amount due as a penalty the greater of $1,000 or an amount | ||||||
31 | equal
to 5% of
the deficiency for each month or part of a month | ||||||
32 | that the deficiency remains
unpaid.
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33 | (e) The Department of Insurance may enforce the collection | ||||||
34 | of any delinquent
payment, penalty, or portion thereof by legal | ||||||
35 | action or in any other manner by
which the
collection of debts | ||||||
36 | due the State of Illinois may be enforced under the laws of
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1 | this State.
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2 | (f) Whenever it appears to the satisfaction of the Director | ||||||
3 | that a company
has
paid
pursuant to this Act an Industrial | ||||||
4 | Commission Operations Fund Surcharge in
an amount
in excess of | ||||||
5 | the amount legally collectable from the company, the Director
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6 | shall issue a
credit memorandum for an amount equal to the | ||||||
7 | amount of such overpayment. A
credit
memorandum may be applied | ||||||
8 | for the 2-year period from the date of issuance,
against the
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9 | payment of any amount due during that period under the | ||||||
10 | surcharge imposed by
this
Section or,
subject to reasonable | ||||||
11 | rule of the Department of Insurance including requirement
of
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12 | notification, may be assigned to any other company subject to | ||||||
13 | regulation under
this Act.
Any application of credit memoranda | ||||||
14 | after the period provided for in this
Section is void.
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15 | (g) Annually, the Governor may direct a transfer of up to | ||||||
16 | 2% of all moneys
collected under this Section to the Insurance | ||||||
17 | Financial Regulation Fund.
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18 | (h) Notwithstanding any other provision of this Section, | ||||||
19 | the Industrial Commission Operations Fund Surcharge shall not | ||||||
20 | be imposed on and after July 1, 2004. This subsection (h) does | ||||||
21 | not affect the powers and duties of the Director under this | ||||||
22 | Section with regard to payments due under subsection (b)(2) and | ||||||
23 | any delinquencies, penalties, and overpayments with respect to | ||||||
24 | payments due under subsection (b)(2).
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25 | (Source: P.A. 93-32, eff. 6-20-03.)
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26 | Section 99. Effective date. This Act takes effect on July | ||||||
27 | 1, 2004.
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