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90_SB0417enr
New Act
Creates the Employee Leasing Company Act to ensure that
an employer that leases its workers obtains workers'
compensation insurance coverage for all of its employees and
that premium is paid commensurate with exposure and
anticipated claim experience. Provides that an employee
leasing company shall obtain a license from the Department of
Insurance. Provides for registration in order to obtain a
license. Provides that it is the employee leasing company's
responsibility to purchase and maintain a separate policy
providing standard worker's compensation and employers'
liability insurance for each client company. Provides that a
violation of the Act is grounds for cancellation or
nonrenewal of a workers' compensation insurance policy.
Provides that insurers shall audit policies issued under this
Act. Contains other provisions. Effective immediately.
LRB9002307NTsb
SB417 Enrolled LRB9002307NTsb
1 AN ACT concerning certain contracts, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5 changing Section 78 as follows:
6 (215 ILCS 5/78) (from Ch. 73, par. 690)
7 Sec. 78. Governmental subscribers accounts; dividends;
8 other returns.
9 (a) The attorney-in-fact of a governmental reciprocal,
10 in addition to the books of account of the reciprocal, shall
11 keep and maintain from and after the effective date of this
12 amendatory Act of 1993, a separate account for each
13 individual subscriber, setting forth therein the date or
14 periods of the subscriber's participation in the reciprocal,
15 the subscriber's deposits, the savings returned to the
16 subscriber and such other information as may be necessary for
17 the determination of the subscriber's proportionate share, if
18 any, of the surplus funds of the reciprocal in case of
19 liquidation. The attorney-in-fact shall not be required to
20 file a list of the subscribers with the Department.
21 (b) The board of directors of the attorney-in-fact of
22 any governmental reciprocal may in its discretion and subject
23 to the prior approval of the advisory committee of the
24 governmental reciprocal and the Director of Insurance:
25 (1) declare dividends to its subscribers in the
26 same manner and upon and subject to the same terms and
27 conditions as are provided in Section 54 for mutual
28 companies, except that the reference to "articles of
29 incorporation" in Section 54 shall mean the declaration
30 of organization or the power of attorney or other
31 authority of the attorney-in-fact under which contracts
SB417 Enrolled -2- LRB9002307NTsb
1 of insurance are to be exchanged pursuant to this article
2 as applied to governmental reciprocals; and
3 (2) return guaranty fund or guaranty capital
4 contributions in the same manner and upon and subject to
5 the same terms and conditions as are provided in Section
6 56 for mutual companies and upon compliance with the
7 provisions of the agreement to subscribe (the agreement
8 to make the contributions), if any.
9 No payment or return of surplus (other than return of
10 guaranty fund or of guaranty capital) shall be made except in
11 accordance with this Section and sound business judgment.
12 (Source: P.A. 88-364.)
13 Section 10. The Service Contract Act is amended by
14 changing Section 10 as follows:
15 (215 ILCS 152/10)
16 Sec. 10. Exemptions. Service contract providers and
17 related service contract sellers and administrators complying
18 with this Act are not required to comply with and are not
19 subject to any provision of the Illinois Insurance Code. A
20 service contract provider who is the manufacturer or a
21 wholly-owned subsidiary of the manufacturer of the product or
22 the builder, seller, or lessor of the product that is the
23 subject of the service contract is required to comply only
24 with Sections 30, 35, 45, and 50 of this Act; except that, a
25 service contract provider who sells a motor vehicle or who
26 leases, but is not the manufacturer of, the motor vehicle
27 that is the subject of the service contract must comply with
28 this Act in its entirety. Contracts for the repair and
29 monitoring of private alarm or private security systems
30 regulated under the Private Detective, Private Alarm, Private
31 Security, and Locksmith Act of 1993 are not required to
32 comply with this Act and are not subject to any provision of
SB417 Enrolled -3- LRB9002307NTsb
1 the Illinois Insurance Code.
2 (Source: P.A. 90-711, eff. 8-7-98.)
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.
5 _________________________________
6 President of the Senate
7 _________________________________
8 Speaker, House of Representatives