Public Act 90-0109 of the 90th General Assembly

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90th General Assembly

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Public Act 90-0109

HB0228 Enrolled                                LRB9001214WHmg

    AN ACT to amend certain Acts in relation to labor.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The  State  Finance Act is amended by adding
Section 5.449 as follows:

    (30 ILCS 105/5.449 new)
    Sec. 5.449.  The Industrial Commission  Operations  Fund.

    Section  10.  The Workers' Compensation Act is amended by
changing Section 4 as follows:

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

    Section  15.  The  Workers'  Occupational Diseases Act is
amended by changing Section 4 as follows:

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

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