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Public Act 91-0757
SB1658 Enrolled LRB9111673JSpcA
AN ACT in relation to workers' compensation.
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 changing
Section 5.138 as follows:
(30 ILCS 105/5.138) (from Ch. 127, par. 141.138)
Sec. 5.138. The Group Workers' Compensation Pool
Self-Insurers' Insolvency Fund.
(Source: P.A. 83-1362.)
Section 10. The Illinois Insurance Code is amended by
adding Article V 3/4 as follows:
(215 ILCS 5/Art. V 3/4 heading new)
Article V 3/4 Group Workers' Compensation Pools; pooling;
insolvency fund.
(215 ILCS 5/107a.01 new)
Sec. 107a.01. Short title. This Article may be cited as
the Workers' Compensation Pool Law.
(215 ILCS 5/107a.02 new)
Sec. 107a.02. Scope. This Article applies to all
qualified group workers' compensation pools.
(215 ILCS 5/107a.03 new)
Sec. 107a.03. Purpose. The purpose of this Article is
to permit 2 or more employers with homogeneous risk
characteristics or that are members of a bona fide
professional, commercial, industrial, or trade association,
with homogenous risk characteristics to pool their workers'
compensation and employer's liability exposures under this
Article.
The State of Illinois, a unit of local government or
school district, or association or instrumentality thereof,
or an intergovernmental risk management association,
self-insurance pool or self-administered health and accident
cooperative or pool shall not be deemed an "employer" or
"pool" for the purpose of this Article.
(215 ILCS 5/107a.04 new)
Sec. 107a.04. Organization under the Illinois Insurance
Code.
(a) After December 31, 2000, group workers' compensation
pools shall for the purpose of this Article, and this Article
only, be considered as though they were assessable domestic
mutual insurance companies and subject to the following:
(1) Article XII 1/2, Article XIII, Article XIII
1/2, Article XXIV; and
(2) Sections 126.2, 126.4, 126.7, 132, 132.1
through 132.7, 133, 134, 137, 139, 140, 141.1, 141.2,
142, 143, 143c, 147, 148, 149, 154.5, 154.6, 154.7,
154.8, 155.01, 155.04, 173.1, 173.2, 173.3, 173.4, 173.5,
174, 174.1, 175, 176, 178, 179b, 378, 379.1, 408, 408.3,
449, 456, 457, and 458, subsections A, B, C, and E of
Section 126.5, subsection A of Section 126.6, and
subsections (1) and (7) of Section 412 of this Code.
(b) If there is a conflict between any Section of this
Article and any other Section of this Code, then the
provisions of this Article shall apply.
(c) No other provision of this Code shall be applicable
to any qualified workers' compensation group workers'
compensation pool except as provided in this Article.
(d) A certificate of authority that is in effect on the
effective date of this amendatory Act of the 91st General
Assembly and that was issued pursuant to Section 4a of the
Workers' Compensation Act or Section 4a of the Workers'
Occupational Diseases Act to a group self-insurer shall
remain in effect under this Article. Such group self-insurer
shall then be deemed to be a qualified group workers'
compensation pool and shall be subject to this Article.
(215 ILCS 5/107a.05 new)
Sec. 107a.05. Definitions and interchangeable terms.
(a) Unless otherwise provided, the following definitions
shall apply:
"Authorized insurer" means an insurer licensed in this
State to transact business as described in Clauses (c) and
(d) of Class 2 of Section 4 of this Code.
"Calendar Quarter" means the 3-month periods ending March
31, June 30, September 30, and December 31.
"Director" means the Director of Insurance.
"Engaged actively in the business" means a bona fide
business concern having conducted commerce, trade, or
industry in this State for a specified period of time. Any
and all records relating to this requirement shall be open to
inspection by the Director or his designee during normal
business hours.
"Gross annual payroll" means payroll for the preceding
fiscal year.
"Independent actuarial opinion" means an opinion
expressed by a member of the American Academy of Actuaries or
Casualty Actuarial Society.
"Independent CPA" means an independent certified public
accountant or independent certified public accounting firm in
good standing and licensed to practice by the Department of
Professional Regulation.
"Pool" means a qualified group workers' compensation
pool as authorized by this Article.
"Qualified group workers' compensation pool" means a
group workers' compensation pool that has received a
certificate of authority pursuant to this Article.
(b) For purposes of incorporating the provisions of this
Code designated in paragraphs (1) and (2) of subsection (a)
of Section 107a.04 into this Article, the following terms
shall be interchangeable:
"Contribution" shall be considered premium.
"Pooling agreement" shall be considered a policy of
insurance.
"Trustees of a group workers' compensation pool" shall be
considered as though they were directors of a domestic mutual
insurance company.
(215 ILCS 5/107a.06 new)
Sec. 107a.06. Pool administration.
(a) An application for Certificate of Authority to
establish a pool must include the documentation and
information regarding its administrator, pooling agreement,
plan of operation, and membership required by this Section.
(b) Administrators must disclose all of the following:
(1) Biography of the risk manager on forms
prescribed by the Director.
(2) If a corporation, biographies of all officers
and directors.
(3) The size of staff and other information, such
as the kinds of staff positions, location of
administrative offices and the nature of any electronic
data processing equipment, if any, available for
servicing the pool, to demonstrate that the administrator
has the resources to administer the program disclosed
pursuant to subsection (d).
(4) The most recent financial statement of the
administrator. If a publicly held company, a copy of the
last 10-K filed with the Securities and Exchange
Commission.
(5) The compensation contract of the administrator.
(6) The bylaws of the pool and articles of
incorporation, if any.
(7) Any agreement that subcontracts any of the
administrator's duties or responsibilities.
(c) A pooling agreement must contain all of the
following:
(1) A description of the services to be provided by
the administrator.
(2) The manner in which costs are to be apportioned
by the administrator.
(3) The initial premium deposit.
(4) The assessment provision.
(5) The termination provisions and minimum term of
membership, which minimum term of membership shall not be
less than one year.
(6) The duration of liability for additional
assessments following termination of membership, which
shall be for a period of not less than 3 years.
(7) The prerequisites for membership.
(8) A provision stating that a claim shall be paid
by the pool, regardless of the size of the claim, and
that the pool shall be reimbursed by the employer for any
amounts required to be paid by the employer under the
agreement.
(9) A provision stating that the terms of
termination after the first year of pool membership shall
be dictated by the pooling agreement.
(10) If a pooling agreement requires a member to
submit written notice in order for the member to withdraw
from a qualified pool, then the period in which the
member must provide the written notice cannot be greater
than 90 days.
(d) Plans of operation must disclose all of the
following:
(1) A listing of initial members.
(2) The aggregate loss history of initial members
for each of the last 3 years.
(3) The amount of the net retention of the pool and
a list of reinsurers.
(4) The names of all entities that will provide
services for the pool and copies of proposed contracts in
connection those services.
(5) The safety and loss control programs to be
provided or required.
(e) The application must contain information about
initial members specified on forms prescribed by the
Director.
(f) The application must contain the combined loss
experience for the group for the last 3 years and any other
financial data required by the Director.
(g) A pool administrator's original books and records
relating to the operations of the pool shall at all times be
located within the State of Illinois.
(h) Any change of the pooling agreement, bylaws, plan of
operation, reinsurance agreements, or membership shall be
delivered to the Director within 30 days after the amendment
or change.
(i) A pool trustee must be an employee, officer,
director, or owner of a pool member.
(215 ILCS 5/107a.07 new)
Sec. 107a.07. Standards for issuing and maintaining pool
certificates of authority.
(a) The Department shall consider the following in
evaluating the financial strength of the pool:
(1) The number of employees covered by the pool.
(2) The particular industries in which the
participants are engaged.
(3) The combined net worth of pool participants.
(4) Any excess insurance purchased from authorized
insurers.
(5) The gross annual payroll of members, which must
be at least $10,000,000.
(b) The pool administrator must either contract with a
licensed service company or have sufficient resources, such
as those set forth in item (3) of subsection (b) of Section
107a.06, to administer the proposed pool.
(c) The Department must determine whether the pool can
ensure that individual pool members are in compliance with
Section 107a.08.
(215 ILCS 5/107a.08 new)
Sec. 107a.08. Provisions applicable to members of a
group workers' compensation pool.
(a) All members of a group workers' compensation pool
must have homogeneous risk characteristics as provided in
Section 107a.03.
(b) In determining whether members exhibit homogeneous
risk characteristics, the Director shall consider any or all
of the following characteristics:
(1) The loss frequency inherent in the occupational
framework of group members.
(2) The loss severity inherent in the occupational
framework of group members.
(3) The occupational disease potential inherent in
the occupational framework of group members.
(4) The occupational tasks of member employees.
(5) Any other relevant fact the group members
present to the Director that has reference to the
classification of similar risks (e.g. SIC codes).
(c) Eligibility as a pool participant shall be based
upon having a minimum of:
(l) 20 employees and $250,000 gross annual payroll;
or
(2) 10 employees and $125,000 gross annual payroll
for participants who have engaged actively in business
for a minimum of 3 years; or
(3) 5 employees and $62,500 gross annual payroll
for participants who have actively engaged in business
for a minimum of 5 years.
(d) Exceptions to the minimum eligibility requirements
of this Section may be allowed by any pool whenever the
following conditions are met:
(1) the participant has been actively engaged in
business for a minimum period of 5 consecutive years in
Illinois; and
(2) the participant agrees to make all of its
financial records available to the Director for
reasonable inspection during the period of membership;
and
(3) the pool administrator certifies to the
Director that he examined the financial records of the
pool participant prior to the participant's admission to
the pool and found the participant to be solvent and
financially stable.
(215 ILCS 5/107a.09 new)
Sec. 107a.09. Service companies for group workers'
compensation pools.
(a) No association, corporation, partnership, sole
proprietorship, trust, or other business entity shall provide
services in the design, establishment, or administration of a
group workers' compensation pool unless it is licensed to do
so by the Department. An applicant for a license shall state
in writing the type of activities it seeks authorization to
engage in and the type of services it seeks authorization to
provide. The license shall be granted only when the Director
is satisfied that the entity possesses the necessary
organization, background, character, expertise, and financial
integrity to supply the services sought to be offered. The
Department may issue a license subject to restrictions or
limitations, including restrictions or limitations on the
type of services that may be supplied or the activities in
which the entity may engage. A license issued under this
Section shall be valid for 2 years.
(b) To assure that administrators are financially
solvent, that pools are administered in a fair and capable
fashion, and that administrators are able to process claims
and pay benefits in a prompt, fair, and equitable manner,
entities licensed to engage in those activities under this
Section are subject to supervision and examination by the
Department.
(c) The Department may adopt rules for the purposes of
this Article. The rules shall (i) establish reporting
requirements for administrators for group workers'
compensation pools, including experience reporting
requirements consistent with those established under this
Code for insurers; (ii) establish bonding requirements or
other provisions assuring the financial integrity of entities
administering group self-insurance; and (iii) establish other
reasonable requirements to further the purposes of this
Article.
(215 ILCS 5/107a.10 new)
Sec. 107a.10. Bond requirements.
(a) An administrator shall obtain and maintain in force
fidelity bonds on employees, officers, or positions in an
amount not less than the amount set forth in the column
"Minimum Amount of Bond", based on the amount of assets
administered on behalf of pools by the administrator (as
determined from year to year) stated in the annual statement
of the pools as filed with the Department. All such bonds
shall be written with at least a one-year discovery period
and, if written with less than a 3-year discovery period,
shall contain a provision that no cancellation or termination
of the bond, whether by or at the request of the insured or
by the underwriter, shall take effect before the expiration
of 90 days after written notice of the cancellation or
termination has been filed with the Department unless an
earlier date of cancellation or termination is approved by
the Department.
(b) The bonds shall include all employees, officers, or
positions for the following perils, which may be covered
under separate policies:
(1) dishonesty of employees and officers;
(2) robbery, burglary, larceny, theft, false
pretense, hold-up, misplacement, mysterious
disappearance, and damage or destruction while property
is in any bank, any recognized place of safe deposit, or
in transit; and
(3) forgery or alteration.
(c) The bond shall be written by an insurer licensed to
transact business in the State of Illinois.
(d) Schedule of assets in relationship to amount of
bond:
TOTAL ASSETS MINIMUM AMOUNT OF BOND
$500,000 or less.............. $20,000 plus 6% of total
assets
more than $ 500,000 and
not more than $1,000,000...... $50,000 plus 4% of assets
over $500,000
more than $1,000,000 and
not more than $3,000,000...... $70,000 plus 3% of assets
over $1,000,000
more than $3,000,000 and
not more than $5,000,000...... $130,000 plus 2% of assets
over $3,000,000
more than $5,000,000 and
not more than $10,000,000..... $170,000 plus 1.5% of assets
over $5,000,000
more than $10,000,000......... $245,000 plus 0.75% of assets
more than $10,000,000
(215 ILCS 5/107a.11 new)
Sec. 107a.11. Admissible assets.
(a) Admitted assets include amounts permitted under
Section 107a.12 as modified by only the following:
(1) Direct obligations of the United States of
America for the payment of money or obligations for the
payment of money that are guaranteed as to the payment of
principal and interest by the United States of America.
(2) Direct obligations for the payment of money
issued by an agency or instrumentality of the United
States of America or obligations for the payment of money
that are guaranteed as to payment of principal and
interest by an agency or instrumentality of the United
States of America.
(3) Bonds or securities that are issued by any
state of the United States and that are secured by the
full faith and credit of that state.
(4) Certificates of deposit, time deposits, or
demand deposits in a bank in the State of Illinois that
has deposits insured by the Federal Deposit Insurance
Corporation.
(5) Saving certificates issued by any savings and
loan association in the State of Illinois that has
deposits insured by the Federal Deposit Insurance
Corporation.
(6) Direct, unconditional obligations of a solvent
business corporation for the payment of money on the
following conditions:
(A) the corporation is incorporated under the
laws of the United States of America or any state of
the United States of America;
(B) the corporation has a tangible net worth
of not less than $500,000 and the obligations have
been awarded a "1" or "2" rating by the Securities
Valuation Office of the National Association of
Insurance Commissioners;
(C) the corporation is not affiliated with any
member of the pool;
(D) no such obligation of the corporation has
been in default as to principal or interest during
the 5 years preceding the date of investment,
however, the corporation need not have had
obligations outstanding during that period and need
not have been in existence for that period, and
obligations acquired under this Section may be newly
issued;
(E) a pool may not invest more than 33 1/3% of
its assets under this item (6); and
(F) a pool may not invest under this Section
more than 5% of its assets in the obligations of any
one corporation.
(7) Obligations of any political subdivision of any
state of the United States of America for the payment of
money on the following conditions:
(A) the obligations are payable from ad
valorem taxes;
(B) the political subdivision is not in
default in the payment of principal or interest on
any of its direct, general obligations;
(C) no investment may be made under this
Section in obligations that are secured only by
special assessments for local improvements;
(D) a pool may not invest under this Section
more than 4% of its assets in direct, general
obligations issued by any one political subdivision;
and
(E) a pool may not invest more than 50% of its
assets under this item (7).
(8) Mutual funds:
(A) government money market mutual funds that
meet the conditions of paragraphs (c)(2), (c)(3),
and (c)(4) of 17 C.F.R. 270.2a-7, revised as of
April l, 1992, that have been rated in one of the 2
highest rating categories by an independent rating
agency recognized by the National Association of
Insurance Commissioners, and that invest in
obligations issued, guaranteed, or insured by the
United States or Canada or any agency or
instrumentality of the United States or Canada.
(B) fixed income bond mutual funds that meet
the conditions of paragraphs (c)(2), (c)(3), and
(c)(4) of 17 C.F.R. 270.2a-7, revised as of April 1,
1992, and that have been rated in one of the 2
highest rating categories by an independent rating
agency recognized by the National Association of
Insurance Commissioners, however, a pool may not
invest in fixed income bond mutual funds more than
the greater of $100,000 or 10% of its total assets
in any one fund.
(9) Not more than 5% of a pool's admitted assets
may be assessment receivables. In order to be an admitted
asset, an assessment receivable cannot be more than 60
days past due.
(10) Not more than 10% of a pool's admitted assets
may be reinsurance receivables. In order to be an
admitted asset, a reinsurance receivable cannot be more
than 90 days past due.
(b) Amounts recoverable from authorized reinsurers on
unpaid losses may be deducted from the reserves required by
Section 4 of the Workers' Compensation Act.
(c) All securities eligible for registration shall be
registered in the name of the pool and all securities shall
be maintained in a State or National Bank having trust powers
and located within this State.
(215 ILCS 5/107a.12 new)
Sec. 107a.12. Annual statement.
(a) A pool authorized to do business in this State shall
file with the Director by March 1st in each year 2 copies of
its financial statement for the year ending December 31st
immediately preceding on forms prescribed by the Director,
which shall conform substantially to the form of statement
adopted by the National Association of Insurance
Commissioners. Unless the Director provides otherwise, the
annual statement is to be prepared in accordance with the
annual statement instructions and the Accounting Practices
and Procedures Manual adopted by the National Association of
Insurance Commissioners. The Director may promulgate rules
for determining which portions of the annual statement
instructions and Accounting Practices and Procedures Manual
adopted by the National Association of Insurance
Commissioners are germane for the purpose of ascertaining
the condition and affairs of a pool.
(b) The Director shall have authority to extend the time
for filing any statement by any pool for reasons that he
considers good and sufficient. The admitted assets shall be
shown in the statement at the actual values as of the last
day of the preceding year, in accordance with Section 126.7
of this Code. The statement shall be verified by oaths of a
majority of the trustees or directors of the pool. In
addition, when the Director considers it to be necessary and
appropriate for the protection of policyholders, creditors,
shareholders, or claimants, the Director may require the pool
to file, within 60 days after mailing to the pool a notice
that a supplemental summary statement is required, a
supplemental summary statement, as of the last day of any
calendar month occurring during the 100 days next preceding
the mailing of the notice, designated by him or her on forms
prescribed and furnished by the Director. The Director may
require supplemental summary statements to be certified by an
independent actuary deemed competent by the Director or by an
independent certified public accountant.
(c) On or before June 1 of each year, a pool shall file
with the Director an audited financial statement reporting
the financial condition of the pool as of the end of the most
recent calendar year and changes in the surplus funds for the
year then ending. The annual audited financial report shall
include the following:
(1) a report of an independent certified public
accountant;
(2) a balance sheet reporting assets, as defined in
this Article, liabilities, and surplus funds;
(3) a statement of gain and loss from operations;
(4) a statement of changes in financial position;
(5) a statement of changes in surplus funds; and
(6) the notes to financial statements.
(d) The Director shall require a pool to file an
independent actuarial opinion as to the sufficiency of the
loss and loss adjustment expense reserves. This opinion shall
be due on June 1 of each year.
(215 ILCS 5/107a.13 new)
Sec. 107a.13. Group Workers' Compensation Pool
Insolvency Fund.
(a) All qualified group workers' compensation pools
shall pay a sum equal to 0.5% of all compensation and medical
service payments made under either the Workers' Compensation
Act or the Workers' Occupational Diseases Act during the 6
months immediately preceding the date of payment, into the
Group Workers' Compensation Pool Insolvency Fund, the
successor fund to the Group Self-Insurers' Insolvency Fund.
On the effective date of this amendatory Act of the 91st
General Assembly, all moneys in the Group Self-Insurers'
Insolvency Fund shall be transferred into the Group Workers'
Compensation Pool Insolvency Fund.
(b) The State Treasurer is ex-officio custodian of the
Group Workers' Compensation Pool Insolvency Fund. Moneys in
the Fund shall be deposited the same as are State funds and
any interest accruing on moneys in the Fund shall be added to
the Fund every 6 months. The Fund shall be subject to audit
the same as State funds and accounts and shall be protected
by the general bond given by the State Treasurer. The Fund
shall be considered always appropriated for the purposes of
compensating employees who are eligible to receive benefits
from their employers pursuant to the provisions of the
Workers' Compensation Act or Workers' Occupational Diseases
Act when their employer is a member of a qualified group
workers' compensation pool and the qualified group workers'
compensation pool has become unable to pay compensation and
medical service payments due to financial insolvency either
prior to or following the date of award. Moneys in the Fund
may be used to compensate any type of injury or occupational
disease that is compensable under either the Workers'
Compensation Act or the Workers' Occupational Diseases Act.
The State Treasurer shall be joined with the qualified group
workers' compensation pool as party respondent in any claim
or application for adjustment of claim filed against a
qualified group workers' compensation pool whenever the
compensation and medical services provided pursuant to this
Article may be unpaid by reason of default of an insolvent
qualified group workers' compensation pool.
(c) Payment shall be made out of the Group Workers'
Compensation Pool Insolvency Fund only upon order of the
Director and only after the penal sum of the fidelity bond
and securities, if any, has been exhausted. It shall be the
obligation of a qualified group workers' compensation pool or
its successor to make arrangements to repay the Group
Workers' Compensation Pool Insolvency Fund for all moneys
paid out in its behalf. The Director is authorized to make
arrangements with the qualified group workers' compensation
pool as to terms of repayment. The obligations of qualified
group workers' compensation pools to make contributions to
the Group Workers' Compensation Pool Insolvency Fund shall be
waived on any January 1 or July 1, if the Fund has a positive
balance of at least $2,000,000 on the date one month prior to
the date of payment.
(215 ILCS 5/107a.14 new)
Sec. 107a.14. Group workers' compensation pools
assessment provisions.
(a) When the Director determines by means of audit,
annual certified statement, actuarial opinion, or otherwise
that the assets possessed by a pool are less than the
reserves required together with any other unpaid liabilities,
he or she shall order the pool trustees to assess the
individual pool participants in an amount not less than
necessary to correct the deficiency. This Section is not
intended to restrict or preclude the trustees from time to
time levying assessments or increasing premium deposits in
accordance with the pooling agreement.
(b) When the Director determines that the compensation
and medical services provided pursuant to this Article may be
unpaid by reason of the default of an insolvent qualified
group workers' compensation pool and the penal sum of the
fidelity bond and the securities provided by the qualified
group workers' compensation pool are about to become
exhausted, the Director shall declare the qualified group
workers' compensation pool to be in default and first levy
upon and collect from the individual employer members of the
qualified group workers' compensation pool in default an
assessment to assure prompt payment of compensation and
medical services. No assessment of any individual employer
member of the qualified group workers' compensation pool made
pursuant to this subsection shall exceed 25% of the average
annual contribution paid by that employer over the previous
3-year period; however, if the Group Workers' Compensation
Pool Insolvency Fund is then for any reason financially
unable to assure prompt payment of compensation and medical
services, the employer member may be assessed without
limitation. If and only if (i) the Group Workers'
Compensation Pool Insolvency Fund has a positive balance of
less than $1,000,000, (ii) the Director has declared a
qualified group workers' compensation pool to be in default,
and (iii) the Group Workers' Compensation Pool Insolvency
Fund is financially unable to pay all employees whose
compensation and medical services have been approved, the
Director shall levy upon and collect from all qualified
group workers' compensation pools an assessment to provide
the balance necessary to assure prompt payment of approved
compensation and medical services. If an insurance carrier
becomes liable for workers' compensation and occupational
diseases payments under the terms of the policy covering the
qualified group workers' compensation pool, the carrier shall
make appropriate payments and payments from the Fund shall
cease. Payments from the Fund shall resume only when the
insurance carrier's liability is exhausted.
(215 ILCS 5/107a.15 new)
Sec. 107a.15. Authority of Director.
(a) If the Director determines that a group workers'
compensation pool is not in compliance with this Article, the
Director shall require the pool to eliminate the condition
causing the noncompliance within a specified time from the
date the notice of the Director's requirement is mailed or
delivered to the pool.
(b) If a pool fails to comply with the Director's
requirement, the pool shall be deemed to be in a hazardous
financial condition, and the Director may take one or more of
the actions authorized by law as to pools in hazardous
financial condition.
(215 ILCS 5/464a rep.)
Section 15. The Illinois Insurance Code is amended by
repealing Section 464a.
Section 20. The Workers' Compensation Act is amended by
changing Section 4 and adding Section 10.1 as follows:
(820 ILCS 305/4) (from Ch. 48, par. 138.4)
Sec. 4. (a) Any employer, including but not limited to
general contractors and their subcontractors, 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. An employer may elect
to provide and pay compensation as provided for in this
Act as a member of a group workers' compensation pool
under Article V 3/4 of the Illinois Insurance Code. If
an employer becomes a member of a group workers'
compensation pool, the employer shall not be relieved of
any obligations imposed by this Act.
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. 90-109, eff. 1-1-98; 91-375, eff. 1-1-00.)
(820 ILCS 305/10.1 new)
Sec. 10.1. Compromise lump sum settlement. The parties,
by agreement and with approval of an arbitrator or the
Commission, may enter into a compromise lump sum settlement
in either permanent total or permanent partial disability
cases which prorates the lump sum settlement over the life
expectancy of the injured worker. When such an agreement has
been approved, neither the weekly compensation rate paid
throughout the case nor the maximum statutory weekly rate
applicable to the injury shall apply. No compensation rate
shall exceed the maximum statutory weekly rate as of the date
of the injury. Instead, the prorated rate set forth in the
approved settlement documents shall control and become the
rate for that case.
(820 ILCS 305/4a rep.)
Section 25. The Workers' Compensation Act is amended by
repealing Section 4a.
Section 30. 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, including but not limited to
general contractors and their subcontractors, 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. An
employer may elect to provide and pay compensation as
provided for in this Act as a member of a group workers'
compensation pool under Article V 3/4 of the Illinois
Insurance Code. If an employer becomes a member of a
group workers' compensation pool, the employer shall not
be relieved of any obligations imposed by this Act.
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. 90-109, eff. 1-1-98; 91-375, eff. 1-1-00.)
(820 ILCS 310/4a rep.)
Section 35. The Workers' Occupational Diseases Act is
amended by repealing Section 4a.
Section 99. Effective date. This Act takes effect
January 1, 2001.
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