Synopsis As Introduced Amends the Illinois Insurance Code. In the provision concerning the Illinois Workers' Compensation Commission Operations Fund surcharge, provides that after the effective date of the amendatory Act, the Director of Insurance shall make one or more loans to the Illinois Employers Mutual Insurance Company (the Company) in an amount not to exceed an aggregate amount of $10,000,000 from the Illinois Workers' Compensation Commission Operations Fund for the start-up funding and initial capitalization of the Company. Creates the Illinois Employers Mutual Insurance Company Article in the Code and establishes the Company as a nonprofit, independent public corporation. Provides that the Company (1) shall be operated as a domestic mutual insurance company, subject to all applicable provisions of the Code, (2) shall issue insurance for workers' compensation and occupational disease and shall not provide any other type of insurance, (3) shall not be considered a State agency or instrumentality of the State for any purpose, and (4) shall not receive any State appropriations or funds, except for an initial loan or loans. Sets forth provisions concerning a board of directors, ratemaking, the Illinois Insurance Guaranty Fund, a chief executive officer, liability, a workplace safety plan, investments, dividends, the sale of policies, auditing requirements, and an annual report. Effective immediately.
Land Conveyance Appraisal Note (Dept. of Transportation)
The Illinois Department of Transportation has determined that no land conveyance is necessary for this bill.
Correctional Note (Dept of Corrections)
This bill has no fiscal or population impact on the Department of Corrections.
This legislation will not impact any public pension fund or retirement system in Illinois.
State Debt Impact Note (Government Forecasting & Accountability)
HB 2622 would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore. would not affect the level of State indebtedness.
Judicial Note (Admin Office of the Illinois Courts)
This legislation would neither increase nor decrease the number of judges needed in the State.
Housing Affordability Impact Note (Housing Development Authority)
This bill will have no effect on the cost of constructing, purchasing, owning, or selling a single-family residence.
Balanced Budget Note (Office of Management and Budget)
The Balanced Budget Note Act does not apply to this bill as it is not a supplemental appropriation that increases or decreases appropriations. Under the Act, a balanced budget note must be prepared only for bills that change a general funds appropriation for the fiscal year in which the new bill is enacted.
House Floor Amendment No. 1 In provisions concerning the Illinois Workers' Compensation Commission Operations Fund surcharge, provides that after the effective date of the amendatory Act, the Director of Insurance shall make a loan of $10,000,000 (rather than make one or more loans in an amount not to exceed an aggregate amount of $10,000,000) to the Illinois Employers Mutual Insurance Company from the Illinois Workers' Compensation Commission Operations Fund for the start-up funding and initial capitalization of the Company. Makes changes to the term years for members of the Board of directors. Makes changes to the qualifications for the Board director. Provides that the Board shall reflect the ethnic, cultural, and geographical diversity of the State. Removes language prohibiting policies of the Company to be sold by any insurance agent or broker licensed to sell workers' compensation insurance in the State. Makes changes to the dates that reports shall be submitted to the Governor and certain members of the General Assembly.
State Mandates Fiscal Note (Dept. of Commerce & Economic Opportunity)
This bill does not create a State mandate.
Home Rule Note (Dept. of Commerce & Economic Opportunity)
This bill does not pre-empt home rule authority.
Fiscal Note (Dept of Insurance)
The Illinois Department of Insurance (IDOI) collects a 1.01% surcharge annually on workers' compensation insurance premiums from insurance carriers. IDOI collects and deposits this surcharge on behalf of the Industrial Commission Operations Fund, which funds the operations of the Illinois Workers' Compensation Commission. However, the funds collected simply pass through the Illinois Department of Insurance. HB 2622 has no projected fiscal impact upon the Illinois Department of Insurance.