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90_HB0228enr
820 ILCS 305/8 from Ch. 48, par. 138.8
Amends the Workers' Compensation Act. Provides that a
provider of medical services or related services or items to
an injured employee agrees to be bound by charges or payment
levels allowed by the Industrial Commission. Provides that
disputes regarding reasonableness of fees or charges shall be
resolved in accordance with the Act or the Workers'
Occupational Diseases Act. Prohibits a provider, employer,
or insurance carrier from seeking payment for services or
items from an employee.
LRB9001214WHmg
HB0228 Enrolled LRB9001214WHmg
1 AN ACT to amend certain Acts in relation to labor.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5 Section 5.449 as follows:
6 (30 ILCS 105/5.449 new)
7 Sec. 5.449. The Industrial Commission Operations Fund.
8 Section 10. The Workers' Compensation Act is amended by
9 changing Section 4 as follows:
10 (820 ILCS 305/4) (from Ch. 48, par. 138.4)
11 Sec. 4. (a) Any employer who shall come within the
12 provisions of Section 3 of this Act, and any other employer
13 who shall elect to provide and pay the compensation provided
14 for in this Act shall:
15 (1) File with the Commission annually an
16 application for approval as a self-insurer which shall
17 include a current financial statement, and annually,
18 thereafter, an application for renewal of self-insurance,
19 which shall include a current financial statement. Said
20 application and financial statement shall be signed and
21 sworn to by the president or vice president and secretary
22 or assistant secretary of the employer if it be a
23 corporation, or by all of the partners, if it be a
24 copartnership, or by the owner if it be neither a
25 copartnership nor a corporation. All initial applications
26 and all applications for renewal of self-insurance must
27 be submitted at least 60 days prior to the requested
28 effective date of self-insurance.
29 If the sworn application and financial statement of
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1 any such employer does not satisfy the Commission of the
2 financial ability of the employer who has filed it, the
3 Commission shall require such employer to,
4 (2) Furnish security, indemnity or a bond
5 guaranteeing the payment by the employer of the
6 compensation provided for in this Act, provided that any
7 such employer whose application and financial statement
8 shall not have satisfied the commission of his or her
9 financial ability and who shall have secured his
10 liability in part by excess liability insurance shall be
11 required to furnish to the Commission security, indemnity
12 or bond guaranteeing his or her payment up to the
13 effective limits of the excess coverage, or
14 (3) Insure his entire liability to pay such
15 compensation in some insurance carrier authorized,
16 licensed, or permitted to do such insurance business in
17 this State. Every policy of an insurance carrier,
18 insuring the payment of compensation under this Act shall
19 cover all the employees and the entire compensation
20 liability of the insured: Provided, however, that any
21 employer may insure his or her compensation liability
22 with 2 or more insurance carriers or may insure a part
23 and qualify under subsection 1, 2, or 4 for the remainder
24 of his or her liability to pay such compensation, subject
25 to the following two provisions:
26 Firstly, the entire compensation liability of
27 the employer to employees working at or from one
28 location shall be insured in one such insurance
29 carrier or shall be self-insured, and
30 Secondly, the employer shall submit evidence
31 satisfactorily to the Commission that his or her
32 entire liability for the compensation provided for
33 in this Act will be secured. Any provisions in any
34 policy, or in any endorsement attached thereto,
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1 attempting to limit or modify in any way, the
2 liability of the insurance carriers issuing the same
3 except as otherwise provided herein shall be wholly
4 void.
5 Nothing herein contained shall apply to policies of
6 excess liability carriage secured by employers who have
7 been approved by the Commission as self-insurers, or
8 (4) Make some other provision, satisfactory to the
9 Commission, for the securing of the payment of
10 compensation provided for in this Act, and
11 (5) Upon becoming subject to this Act and
12 thereafter as often as the Commission may in writing
13 demand, file with the Commission in form prescribed by it
14 evidence of his or her compliance with the provision of
15 this Section.
16 (a-1) Regardless of its state of domicile or its
17 principal place of business, an employer shall make payments
18 to its insurance carrier or group self-insurance fund, where
19 applicable, based upon the premium rates of the situs where
20 the work or project is located in Illinois if:
21 (A) the employer is engaged primarily in the
22 building and construction industry; and
23 (B) subdivision (a)(3) of this Section applies to
24 the employer or the employer is a member of a group
25 self-insurance plan as defined in subsection (1) of
26 Section 4a.
27 The Industrial Commission shall impose a penalty upon an
28 employer for violation of this subsection (a-1) if:
29 (i) the employer is given an opportunity at a
30 hearing to present evidence of its compliance with this
31 subsection (a-1); and
32 (ii) after the hearing, the Commission finds that
33 the employer failed to make payments upon the premium
34 rates of the situs where the work or project is located
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1 in Illinois.
2 The penalty shall not exceed $1,000 for each day of work
3 for which the employer failed to make payments upon the
4 premium rates of the situs where the work or project is
5 located in Illinois, but the total penalty shall not exceed
6 $50,000 for each project or each contract under which the
7 work was performed.
8 Any penalty under this subsection (a-1) must be imposed
9 not later than one year after the expiration of the
10 applicable limitation period specified in subsection (d) of
11 Section 6 of this Act. Penalties imposed under this
12 subsection (a-1) shall be deposited into the Industrial
13 Commission Operations Fund, a special fund that is created
14 in the State treasury. Subject to appropriation, moneys in
15 the Fund shall be used solely for the operations of the
16 Industrial Commission.
17 (b) The sworn application and financial statement, or
18 security, indemnity or bond, or amount of insurance, or other
19 provisions, filed, furnished, carried, or made by the
20 employer, as the case may be, shall be subject to the
21 approval of the Commission.
22 Deposits under escrow agreements shall be cash,
23 negotiable United States government bonds or negotiable
24 general obligation bonds of the State of Illinois. Such cash
25 or bonds shall be deposited in escrow with any State or
26 National Bank or Trust Company having trust authority in the
27 State of Illinois.
28 Upon the approval of the sworn application and financial
29 statement, security, indemnity or bond or amount of
30 insurance, filed, furnished or carried, as the case may be,
31 the Commission shall send to the employer written notice of
32 its approval thereof. The certificate of compliance by the
33 employer with the provisions of subparagraphs (2) and (3) of
34 paragraph (a) of this Section shall be delivered by the
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1 insurance carrier to the Industrial Commission within five
2 days after the effective date of the policy so certified.
3 The insurance so certified shall cover all compensation
4 liability occurring during the time that the insurance is in
5 effect and no further certificate need be filed in case such
6 insurance is renewed, extended or otherwise continued by such
7 carrier. The insurance so certified shall not be cancelled
8 or in the event that such insurance is not renewed, extended
9 or otherwise continued, such insurance shall not be
10 terminated until at least 10 days after receipt by the
11 Industrial Commission of notice of the cancellation or
12 termination of said insurance; provided, however, that if the
13 employer has secured insurance from another insurance
14 carrier, or has otherwise secured the payment of compensation
15 in accordance with this Section, and such insurance or other
16 security becomes effective prior to the expiration of the 10
17 days, cancellation or termination may, at the option of the
18 insurance carrier indicated in such notice, be effective as
19 of the effective date of such other insurance or security.
20 (c) Whenever the Commission shall find that any
21 corporation, company, association, aggregation of
22 individuals, reciprocal or interinsurers exchange, or other
23 insurer effecting workers' compensation insurance in this
24 State shall be insolvent, financially unsound, or unable to
25 fully meet all payments and liabilities assumed or to be
26 assumed for compensation insurance in this State, or shall
27 practice a policy of delay or unfairness toward employees in
28 the adjustment, settlement, or payment of benefits due such
29 employees, the Commission may after reasonable notice and
30 hearing order and direct that such corporation, company,
31 association, aggregation of individuals, reciprocal or
32 interinsurers exchange, or insurer, shall from and after a
33 date fixed in such order discontinue the writing of any such
34 workers' compensation insurance in this State. Subject to
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1 such modification of the order as the Commission may later
2 make on review of the order, as herein provided, it shall
3 thereupon be unlawful for any such corporation, company,
4 association, aggregation of individuals, reciprocal or
5 interinsurers exchange, or insurer to effect any workers'
6 compensation insurance in this State. A copy of the order
7 shall be served upon the Director of Insurance by registered
8 mail. Whenever the Commission finds that any service or
9 adjustment company used or employed by a self-insured
10 employer or by an insurance carrier to process, adjust,
11 investigate, compromise or otherwise handle claims under this
12 Act, has practiced or is practicing a policy of delay or
13 unfairness toward employees in the adjustment, settlement or
14 payment of benefits due such employees, the Commission may
15 after reasonable notice and hearing order and direct that
16 such service or adjustment company shall from and after a
17 date fixed in such order be prohibited from processing,
18 adjusting, investigating, compromising or otherwise handling
19 claims under this Act.
20 Whenever the Commission finds that any self-insured
21 employer has practiced or is practicing delay or unfairness
22 toward employees in the adjustment, settlement or payment of
23 benefits due such employees, the Commission may, after
24 reasonable notice and hearing, order and direct that after a
25 date fixed in the order such self-insured employer shall be
26 disqualified to operate as a self-insurer and shall be
27 required to insure his entire liability to pay compensation
28 in some insurance carrier authorized, licensed and permitted
29 to do such insurance business in this State, as provided in
30 subparagraph 3 of paragraph (a) of this Section.
31 All orders made by the Commission under this Section
32 shall be subject to review by the courts, said review to be
33 taken in the same manner and within the same time as provided
34 by Section 19 of this Act for review of awards and decisions
HB0228 Enrolled -7- LRB9001214WHmg
1 of the Commission, upon the party seeking the review filing
2 with the clerk of the court to which said review is taken a
3 bond in an amount to be fixed and approved by the court to
4 which the review is taken, conditioned upon the payment of
5 all compensation awarded against the person taking said
6 review pending a decision thereof and further conditioned
7 upon such other obligations as the court may impose. Upon
8 the review the Circuit Court shall have power to review all
9 questions of fact as well as of law. The penalty hereinafter
10 provided for in this paragraph shall not attach and shall not
11 begin to run until the final determination of the order of
12 the Commission.
13 (d) Upon a finding by the Commission, after reasonable
14 notice and hearing, of the knowing and wilful failure of an
15 employer to comply with any of the provisions of paragraph
16 (a) of this Section or the failure or refusal of an employer,
17 service or adjustment company, or an insurance carrier to
18 comply with any order of the Industrial Commission pursuant
19 to paragraph (c) of this Section disqualifying him or her to
20 operate as a self insurer and requiring him or her to insure
21 his or her liability, the Commission may assess a civil
22 penalty of up to $500 per day for each day of such failure or
23 refusal after the effective date of this amendatory Act of
24 1989. Each day of such failure or refusal shall constitute a
25 separate offense.
26 Upon the failure or refusal of any employer, service or
27 adjustment company or insurance carrier to comply with the
28 provisions of this Section and with the orders of the
29 Commission under this Section, or the order of the court on
30 review after final adjudication, the Commission may bring a
31 civil action to recover the amount of the penalty in Cook
32 County or in Sangamon County in which litigation the
33 Commission shall be represented by the Attorney General. The
34 Commission shall send notice of its finding of non-compliance
HB0228 Enrolled -8- LRB9001214WHmg
1 and assessment of the civil penalty to the Attorney General.
2 It shall be the duty of the Attorney General within 30 days
3 after receipt of the notice, to institute prosecutions and
4 promptly prosecute all reported violations of this Section.
5 (e) This Act shall not affect or disturb the continuance
6 of any existing insurance, mutual aid, benefit, or relief
7 association or department, whether maintained in whole or in
8 part by the employer or whether maintained by the employees,
9 the payment of benefits of such association or department
10 being guaranteed by the employer or by some person, firm or
11 corporation for him or her: Provided, the employer
12 contributes to such association or department an amount not
13 less than the full compensation herein provided, exclusive of
14 the cost of the maintenance of such association or department
15 and without any expense to the employee. This Act shall not
16 prevent the organization and maintaining under the insurance
17 laws of this State of any benefit or insurance company for
18 the purpose of insuring against the compensation provided for
19 in this Act, the expense of which is maintained by the
20 employer. This Act shall not prevent the organization or
21 maintaining under the insurance laws of this State of any
22 voluntary mutual aid, benefit or relief association among
23 employees for the payment of additional accident or sick
24 benefits.
25 (f) No existing insurance, mutual aid, benefit or relief
26 association or department shall, by reason of anything herein
27 contained, be authorized to discontinue its operation without
28 first discharging its obligations to any and all persons
29 carrying insurance in the same or entitled to relief or
30 benefits therein.
31 (g) Any contract, oral, written or implied, of
32 employment providing for relief benefit, or insurance or any
33 other device whereby the employee is required to pay any
34 premium or premiums for insurance against the compensation
HB0228 Enrolled -9- LRB9001214WHmg
1 provided for in this Act shall be null and void. Any
2 employer withholding from the wages of any employee any
3 amount for the purpose of paying any such premium shall be
4 guilty of a Class B misdemeanor.
5 In the event the employer does not pay the compensation
6 for which he or she is liable, then an insurance company,
7 association or insurer which may have insured such employer
8 against such liability shall become primarily liable to pay
9 to the employee, his or her personal representative or
10 beneficiary the compensation required by the provisions of
11 this Act to be paid by such employer. The insurance carrier
12 may be made a party to the proceedings in which the employer
13 is a party and an award may be entered jointly against the
14 employer and the insurance carrier.
15 (h) It shall be unlawful for any employer, insurance
16 company or service or adjustment company to interfere with,
17 restrain or coerce an employee in any manner whatsoever in
18 the exercise of the rights or remedies granted to him or her
19 by this Act or to discriminate, attempt to discriminate, or
20 threaten to discriminate against an employee in any way
21 because of his or her exercise of the rights or remedies
22 granted to him or her by this Act.
23 It shall be unlawful for any employer, individually or
24 through any insurance company or service or adjustment
25 company, to discharge or to threaten to discharge, or to
26 refuse to rehire or recall to active service in a suitable
27 capacity an employee because of the exercise of his or her
28 rights or remedies granted to him or her by this Act.
29 (i) If an employer elects to obtain a life insurance
30 policy on his employees, he may also elect to apply such
31 benefits in satisfaction of all or a portion of the death
32 benefits payable under this Act, in which case, the
33 employer's compensation premium shall be reduced accordingly.
34 (j) Within 45 days of receipt of an initial application
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1 or application to renew self-insurance privileges the
2 Self-Insurers Advisory Board shall review and submit for
3 approval by the Chairman of the Commission recommendations of
4 disposition of all initial applications to self-insure and
5 all applications to renew self-insurance privileges filed by
6 private self-insurers pursuant to the provisions of this
7 Section and Section 4a-9 of this Act. Each private
8 self-insurer shall submit with its initial and renewal
9 applications the application fee required by Section 4a-4 of
10 this Act.
11 The Chairman of the Commission shall promptly act upon
12 all initial applications and applications for renewal in full
13 accordance with the recommendations of the Board or, should
14 the Chairman disagree with any recommendation of disposition
15 of the Self-Insurer's Advisory Board, he shall within 30 days
16 of receipt of such recommendation provide to the Board in
17 writing the reasons supporting his decision. The Chairman
18 shall also promptly notify the employer of his decision
19 within 15 days of receipt of the recommendation of the Board.
20 If an employer is denied a renewal of self-insurance
21 privileges pursuant to application it shall retain said
22 privilege for 120 days after receipt of a notice of
23 cancellation of the privilege from the Chairman of the
24 Commission.
25 All orders made by the Chairman under this Section shall
26 be subject to review by the courts, such review to be taken
27 in the same manner and within the same time as provided by
28 subsection (f) of Section 19 of this Act for review of awards
29 and decisions of the Commission, upon the party seeking the
30 review filing with the clerk of the court to which such
31 review is taken a bond in an amount to be fixed and approved
32 by the court to which the review is taken, conditioned upon
33 the payment of all compensation awarded against the person
34 taking such review pending a decision thereof and further
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1 conditioned upon such other obligations as the court may
2 impose. Upon the review the Circuit Court shall have power
3 to review all questions of fact as well as of law.
4 (Source: P.A. 86-998; 86-1405.)
5 Section 15. The Workers' Occupational Diseases Act is
6 amended by changing Section 4 as follows:
7 (820 ILCS 310/4) (from Ch. 48, par. 172.39)
8 Sec. 4. (a) Any employer required by the terms of this
9 Act or by election to pay the compensation provided for in
10 this Act shall:
11 (1) File with the Commission an application for
12 approval as a self-insurer which shall include a current
13 financial statement. The application and financial
14 statement shall be signed and sworn to by the president
15 or vice-president and secretary or assistant secretary of
16 the employer if it be a corporation, or by all of the
17 partners if it be a copartnership, or by the owner if it
18 be neither a copartnership nor a corporation.
19 If the sworn application and financial statement of
20 any such employer does not satisfy the Commission of the
21 financial ability of the employer who has filed it, the
22 Commission shall require such employer to:
23 (2) Furnish security, indemnity or a bond
24 guaranteeing the payment by the employer of the
25 compensation provided for in this Act, provided that any
26 such employer who shall have secured his or her liability
27 in part by excess liability coverage shall be required to
28 furnish to the Commission security, indemnity or bond
29 guaranteeing his or her payment up to the amount of the
30 effective limits of the excess coverage in accordance
31 with the provisions of this paragraph, or
32 (3) Insure his or her entire liability to pay such
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1 compensation in some insurance carrier authorized,
2 licensed or permitted to do such insurance business in
3 this State. All policies of such insurance carriers
4 insuring the payment of compensation under this Act shall
5 cover all the employees and all such employer's
6 compensation liability in all cases in which the last day
7 of the last exposure to the occupational disease involved
8 is within the effective period of the policy, anything to
9 the contrary in the policy notwithstanding. Provided,
10 however, that any employer may insure his or her
11 compensation liability under this Act with 2 or more
12 insurance carriers or may insure a part and qualify under
13 Subsection 1, 2, or 4 for the remainder of his liability
14 to pay such compensation, subject to the following two
15 provisions:
16 Firstly, the entire liability of the employer
17 to employees working at or from one location shall
18 be insured in one such insurance carrier or shall be
19 self-insured.
20 Secondly, the employer shall submit evidence
21 satisfactory to the Commission that his or her
22 entire liability for the compensation provided for
23 in this Act will be secured.
24 Any provision in a policy or in any endorsement
25 attached thereto attempting to limit or modify in any way
26 the liability of the insurance carrier issuing the same,
27 except as otherwise provided herein, shall be wholly
28 void.
29 The insurance or security in force to cover
30 compensation liability under this Act shall be separate
31 and distinct from the insurance or security under the
32 "Workers' Compensation Act" and any insurance contract
33 covering liability under either Act need not cover any
34 liability under the other. Nothing herein contained
HB0228 Enrolled -13- LRB9001214WHmg
1 shall apply to policies of excess liability carriage
2 secured by employers who have been approved by the
3 Commission as self-insurers, or
4 (4) Make some other provision, satisfactory to the
5 Commission, for the securing of the payment of
6 compensation provided for in this Act, and
7 (5) Upon becoming subject to this Act and
8 thereafter as often as the Commission may in writing
9 demand, file with the Commission in form prescribed by it
10 evidence of his or her compliance with the provision of
11 this Section.
12 (a-1) Regardless of its state of domicile or its
13 principal place of business, an employer shall make payments
14 to its insurance carrier or group self-insurance fund, where
15 applicable, based upon the premium rates of the situs where
16 the work or project is located in Illinois if:
17 (A) the employer is engaged primarily in the
18 building and construction industry; and
19 (B) subdivision (a)(3) of this Section applies to
20 the employer or the employer is a member of a group
21 self-insurance plan as defined in subsection (1) of
22 Section 4a.
23 The Industrial Commission shall impose a penalty upon an
24 employer for violation of this subsection (a-1) if:
25 (i) the employer is given an opportunity at a
26 hearing to present evidence of its compliance with this
27 subsection (a-1); and
28 (ii) after the hearing, the Commission finds that
29 the employer failed to make payments upon the premium
30 rates of the situs where the work or project is located
31 in Illinois.
32 The penalty shall not exceed $1,000 for each day of work
33 for which the employer failed to make payments upon the
34 premium rates of the situs where the work or project is
HB0228 Enrolled -14- LRB9001214WHmg
1 located in Illinois, but the total penalty shall not exceed
2 $50,000 for each project or each contract under which the
3 work was performed.
4 Any penalty under this subsection (a-1) must be imposed
5 not later than one year after the expiration of the
6 applicable limitation period specified in subsection (c) of
7 Section 6 of this Act. Penalties imposed under this
8 subsection (a-1) shall be deposited into the Industrial
9 Commission Operations Fund created under Section 4 of the
10 Workers' Compensation Act.
11 (b) The sworn application and financial statement, or
12 security, indemnity or bond, or amount of insurance, or other
13 provisions, filed, furnished, carried, or made by the
14 employer, as the case may be, shall be subject to the
15 approval of the Commission.
16 Deposits under escrow agreements shall be cash,
17 negotiable United States government bonds or negotiable
18 general obligation bonds of the State of Illinois. Such cash
19 or bonds shall be deposited in escrow with any State or
20 National Bank or Trust Company having trust authority in the
21 State of Illinois.
22 Upon the approval of the sworn application and financial
23 statement, security, indemnity or bond or amount of
24 insurance, filed, furnished, or carried, as the case may be,
25 the Commission shall send to the employer written notice of
26 its approval thereof. Said certificate of compliance by the
27 employer with the provisions of subparagraphs (2) and (3) of
28 paragraph (a) of this Section shall be delivered by the
29 insurance carrier to the Industrial Commission within 5 days
30 after the effective date of the policy so certified. The
31 insurance so certified shall cover all compensation liability
32 occurring during the time that the insurance is in effect and
33 no further certificate need be filed in case such insurance
34 is renewed, extended or otherwise continued by such carrier.
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1 The insurance so certified shall not be cancelled or in the
2 event that such insurance is not renewed, extended or
3 otherwise continued, such insurance shall not be terminated
4 until at least 10 days after receipt by the Industrial
5 Commission of notice of the cancellation or termination of
6 said insurance; provided, however, that if the employer has
7 secured insurance from another insurance carrier, or has
8 otherwise secured the payment of compensation in accordance
9 with this Section, and such insurance or other security
10 becomes effective prior to the expiration of said 10 days,
11 cancellation or termination may, at the option of the
12 insurance carrier indicated in such notice, be effective as
13 of the effective date of such other insurance or security.
14 (c) Whenever the Commission shall find that any
15 corporation, company, association, aggregation of
16 individuals, reciprocal or interinsurers exchange, or other
17 insurer effecting workers' occupational disease compensation
18 insurance in this State shall be insolvent, financially
19 unsound, or unable to fully meet all payments and liabilities
20 assumed or to be assumed for compensation insurance in this
21 State, or shall practice a policy of delay or unfairness
22 toward employees in the adjustment, settlement, or payment of
23 benefits due such employees, the Commission may after
24 reasonable notice and hearing order and direct that such
25 corporation, company, association, aggregation of
26 individuals, reciprocal or interinsurers exchange, or
27 insurer, shall from and after a date fixed in such order
28 discontinue the writing of any such workers' occupational
29 disease compensation insurance in this State. It shall
30 thereupon be unlawful for any such corporation, company,
31 association, aggregation of individuals, reciprocal or
32 interinsurers exchange, or insurer to effect any workers'
33 occupational disease compensation insurance in this State. A
34 copy of the order shall be served upon the Director of
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1 Insurance by registered mail. Whenever the Commission finds
2 that any service or adjustment company used or employed by a
3 self-insured employer or by an insurance carrier to process,
4 adjust, investigate, compromise or otherwise handle claims
5 under this Act, has practiced or is practicing a policy of
6 delay or unfairness toward employees in the adjustment,
7 settlement or payment of benefits due such employees, the
8 Commission may after reasonable notice and hearing order and
9 direct that such service or adjustment company shall from and
10 after a date fixed in such order be prohibited from
11 processing, adjusting, investigating, compromising or
12 otherwise handling claims under this Act.
13 Whenever the Commission finds that any self-insured
14 employer has practiced or is practicing delay or unfairness
15 toward employees in the adjustment, settlement or payment of
16 benefits due such employees, the Commission may after
17 reasonable notice and hearing order and direct that after a
18 date fixed in the order such self-insured employer shall be
19 disqualified to operate as a self-insurer and shall be
20 required to insure his entire liability to pay compensation
21 in some insurance carrier authorized, licensed and permitted
22 to do such insurance business in this State as provided in
23 subparagraph (3) of paragraph (a) of this Section.
24 All orders made by the Commission under this Section
25 shall be subject to review by the courts, the review to be
26 taken in the same manner and within the same time as provided
27 by Section 19 of this Act for review of awards and decisions
28 of the Commission, upon the party seeking the review filing
29 with the clerk of the court to which said review is taken a
30 bond in an amount to be fixed and approved by the court to
31 which said review is taken, conditioned upon the payment of
32 all compensation awarded against the person taking the review
33 pending a decision thereof and further conditioned upon such
34 other obligations as the court may impose. Upon the review
HB0228 Enrolled -17- LRB9001214WHmg
1 the Circuit Court shall have power to review all questions of
2 fact as well as of law. The penalty hereinafter provided for
3 in this paragraph shall not attach and shall not begin to run
4 until the final determination of the order of the Commission.
5 (d) Upon a finding by the Commission, after reasonable
6 notice and hearing, of the knowing and wilful failure of an
7 employer to comply with any of the provisions of paragraph
8 (a) of this Section or the failure or refusal of an employer,
9 service or adjustment company, or insurance carrier to comply
10 with any order of the Industrial Commission pursuant to
11 paragraph (c) of this Section the Commission may assess a
12 civil penalty of up to $500 per day for each day of such
13 failure or refusal after the effective date of this
14 amendatory Act of 1989. Each day of such failure or refusal
15 shall constitute a separate offense.
16 Upon the failure or refusal of any employer, service or
17 adjustment company or insurance carrier to comply with the
18 provisions of this Section and orders of the Commission under
19 this Section, or the order of the court on review after final
20 adjudication, the Commission may bring a civil action to
21 recover the amount of the penalty in Cook County or in
22 Sangamon County in which litigation the Commission shall be
23 represented by the Attorney General. The Commission shall
24 send notice of its finding of non-compliance and assessment
25 of the civil penalty to the Attorney General. It shall be
26 the duty of the Attorney General within 30 days after receipt
27 of the notice, to institute prosecutions and promptly
28 prosecute all reported violations of this Section.
29 (e) This Act shall not affect or disturb the continuance
30 of any existing insurance, mutual aid, benefit, or relief
31 association or department, whether maintained in whole or in
32 part by the employer or whether maintained by the employees,
33 the payment of benefits of such association or department
34 being guaranteed by the employer or by some person, firm or
HB0228 Enrolled -18- LRB9001214WHmg
1 corporation for him or her: Provided, the employer
2 contributes to such association or department an amount not
3 less than the full compensation herein provided, exclusive of
4 the cost of the maintenance of such association or department
5 and without any expense to the employee. This Act shall not
6 prevent the organization and maintaining under the insurance
7 laws of this State of any benefit or insurance company for
8 the purpose of insuring against the compensation provided for
9 in this Act, the expense of which is maintained by the
10 employer. This Act shall not prevent the organization or
11 maintaining under the insurance laws of this State of any
12 voluntary mutual aid, benefit or relief association among
13 employees for the payment of additional accident or sick
14 benefits.
15 (f) No existing insurance, mutual aid, benefit or relief
16 association or department shall, by reason of anything herein
17 contained, be authorized to discontinue its operation without
18 first discharging its obligations to any and all persons
19 carrying insurance in the same or entitled to relief or
20 benefits therein.
21 (g) Any contract, oral, written or implied, of
22 employment providing for relief benefit, or insurance or any
23 other device whereby the employee is required to pay any
24 premium or premiums for insurance against the compensation
25 provided for in this Act shall be null and void. Any
26 employer withholding from the wages of any employee any
27 amount for the purpose of paying any such premium shall be
28 guilty of a Class B misdemeanor.
29 In the event the employer does not pay the compensation
30 for which he or she is liable, then an insurance company,
31 association or insurer which may have insured such employer
32 against such liability shall become primarily liable to pay
33 to the employee, his personal representative or beneficiary
34 the compensation required by the provisions of this Act to be
HB0228 Enrolled -19- LRB9001214WHmg
1 paid by such employer. The insurance carrier may be made a
2 party to the proceedings in which the employer is a party and
3 an award may be entered jointly against the employer and the
4 insurance carrier.
5 (h) It shall be unlawful for any employer, insurance
6 company or service or adjustment company to interfere with,
7 restrain or coerce an employee in any manner whatsoever in
8 the exercise of the rights or remedies granted to him or her
9 by this Act or to discriminate, attempt to discriminate, or
10 threaten to discriminate against an employee in any way
11 because of his exercise of the rights or remedies granted to
12 him by this Act.
13 It shall be unlawful for any employer, individually or
14 through any insurance company or service or adjustment
15 company, to discharge or to threaten to discharge, or to
16 refuse to rehire or recall to active service in a suitable
17 capacity an employee because of the exercise of his or her
18 rights or remedies granted to him or her by this Act.
19 (i) If an employer elects to obtain a life insurance
20 policy on his employees, he may also elect to apply such
21 benefits in satisfaction of all or a portion of the death
22 benefits payable under this Act, in which case, the
23 employer's premium for coverage for benefits under this Act
24 shall be reduced accordingly.
25 (Source: P.A. 86-998; 86-1405.)