99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
Introduced 2/20/2015, by Sen. William R. Haine
SYNOPSIS AS INTRODUCED:
Amends the Illinois Insurance Code. Provides that any insurer with
less than $100,000,000 in group surplus authorized to issue workers'
compensation policies with a per-occurrence deductible of $100,000 or
greater shall report the outstanding obligations owed under the deductible
as liabilities of the insurer, unless the obligation is fully
collateralized, and limit per-occurrence deductible obligations. Effective
July 1, 2015.
A BILL FOR
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AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Illinois Insurance Code is amended by adding
Section 155.44 as follows:
(215 ILCS 5/155.44 new)
Financial requirements; large deductible
workers' compensation policies and programs.
Any insurer with
less than $100,000,000 in group surplus authorized to issue
workers' compensation policies with a per-occurrence
deductible of $100,000 or greater shall:
(1) report the outstanding obligations owed under the
deductible as liabilities of the insurer, unless the
obligation is fully collateralized using one of the
(A) a surety bond issued by a surety insurer
authorized to transact business by the Department, and
whose financial strength and size ratings from A.M.
Best Company are not less than "A" and "V",
(B) an irrevocable letter of credit issued by a
financial institution, with an office physically
located within the State, and the deposits of which are