(820 ILCS 305/4a-7)
(from Ch. 48, par. 138.4a-7)
(a) The Commission may upon direction of the Board from time
to time assess each of the private self-insurers a pro rata share of the
funding reasonably necessary to carry out its activities under this
Section. The prorations shall be made on the basis of each self-insured's
most recent payment into the rate adjustment fund under Section 7(f) of
this Act. In no event shall a private self-insurer be assessed at one time
in excess of .6% of the compensation paid by that private self-insurer
during the previous calendar year for claims incurred as a self-insurer.
Total assessments against it in any calendar year shall not exceed 1.2% of
the compensation it has paid during the previous calendar year as a
self-insurer for claims incurred. Funds obtained by such assessments shall
be used only for the purposes set forth in this Section, and shall be
deposited upon receipt by the Commission into the Self-Insurers Security
Fund. If payment of any assessment made under this subsection is not made
within 30 days of the sending of the notice to the private self-insurer,
the Commission at the direction of the Board shall proceed in circuit court for
judgment against that private self-insurer which judgment shall include the
amount of the assessment, the costs of suit, interest and reasonable attorneys' fees.
(b) A private self-insurer which ceases to be a self-insurer shall be
liable for any and all assessments made pursuant to this Section during
the period following the date its certificate of authority to
self-insure is withdrawn, revoked or surrendered until such time as it
has discharged all obligations to pay compensation which arose during the
period of time said former self-insurer was self-insured. Assessments of
such a former private self-insurer shall be based on the compensation paid
by the former private self-insurer during the preceding calendar year on
claims that arose during the period of time said former private
self-insurer was self-insured.
(c) The Board on behalf of the Commission shall annually contract for an
independent certified audit of the financial activities of the Fund, and an
annual report as of June 30 shall be submitted promptly by the Board to
the Chairman of the Illinois Workers' Compensation Commission and to each Trustee. Written
reports of all activities shall be submitted to the Commission by the Board
on a monthly basis.
(d) If there are monies remaining in the Fund after all outstanding
obligations of all insolvent self-insurers have been satisfied and the
costs of administration and defense have been paid, such amounts shall be
returned by the Commission from the Fund as directed by the Board to the
then private self-insurers in that proportion which each said private
self-insurer has contributed to the Fund one year thereafter, provided no
outstanding liabilities remain against the Fund.
(e) Each private self-insurer shall be subject to the direction of the
Commission as provided in this Section as a condition of obtaining and
maintaining its certificate of authority to self-insure.
(Source: P.A. 93-721, eff. 1-1-05.)