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90_SB1065
SEE INDEX
Amends the Workers' Compensation Act and the Workers'
Occupational Diseases Act. Creates the State Compensation
Insurance Fund as an independent public corporation to insure
employers against liabilities for certain injuries and
occupational diseases for which their employees may be
entitled to benefits. Provides full coverage under the
Workers' Compensation Act for Chicago firefighters. Adds
provisions regarding: limits on charges by health care
providers; resolution of disputes concerning those charges;
disclosure of provider self-referral; limits on collection
efforts by providers; and fees for medical records. Makes
numerous changes in relation to compensation levels,
limitations on claims, liability of parties, penalties for
failure to comply with the Acts, presumptions relating to
certain injuries and diseases, obligations of workers'
compensation insurers, and other matters. Amends the
Business Corporation Act to require corporations to submit
proof of workers' compensation coverage to the Secretary of
State.
LRB9002213DJcd
LRB9002213DJcd
1 AN ACT to amend certain Acts in relation to compensation
2 for workplace injuries and diseases.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Business Corporation Act of 1983 is
6 amended by changing Sections 2.10 and 2.15 as follows:
7 (805 ILCS 5/2.10) (from Ch. 32, par. 2.10)
8 Sec. 2.10. Articles of Incorporation. The articles of
9 incorporation shall be executed and filed in duplicate in
10 accordance with Section 1.10 of this Act. The executed
11 articles of incorporation shall in all instances be
12 accompanied by certified proof of insurance or a certificate
13 of compliance issued by the Industrial Commission to the
14 proposed corporation in accordance with Section 4 of the
15 Workers' Compensation Act, or both.
16 (a) The articles of incorporation must set forth:
17 (1) a corporate name for the corporation that satisfies
18 the requirements of this Act;
19 (2) the purpose or purposes for which the corporation is
20 organized, which may be stated to be, or to include, the
21 transaction of any or all lawful businesses for which
22 corporations may be incorporated under this Act;
23 (3) the address of the corporation's initial registered
24 office and the name of its initial registered agent at that
25 office;
26 (4) the name and address of each incorporator;
27 (5) the number of shares of each class the corporation
28 is authorized to issue;
29 (6) the number and class of shares which the corporation
30 proposes to issue without further report to the Secretary of
31 State, and the consideration to be received, less expenses,
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1 including commissions, paid or incurred in connection with
2 the issuance of shares, by the corporation therefor. If
3 shares of more than one class are to be issued, the
4 consideration for shares of each class shall be separately
5 stated;
6 (7) if the shares are divided into classes, the
7 designation of each class and a statement of the
8 designations, preferences, qualifications, limitations,
9 restrictions, and special or relative rights with respect to
10 the shares of each class; and
11 (8) if the corporation may issue the shares of any
12 preferred or special class in series, then the designation of
13 each series and a statement of the variations in the relative
14 rights and preferences of the different series, if the same
15 are fixed in the articles of incorporation, or a statement of
16 the authority vested in the board of directors to establish
17 series and determine the variations in the relative rights
18 and preferences of the different series.
19 (b) The articles of incorporation may set forth:
20 (1) the names and residential addresses of the
21 individuals who are to serve as the initial directors;
22 (2) provisions not inconsistent with law with respect
23 to:
24 (i) managing the business and regulating the affairs of
25 the corporation;
26 (ii) defining, limiting, and regulating the rights,
27 powers and duties of the corporation, its officers, directors
28 and shareholders;
29 (iii) authorizing and limiting the preemptive right of a
30 shareholder to acquire shares, whether then or thereafter
31 authorized;
32 (iv) an estimate, expressed in dollars, of the value of
33 all the property to be owned by the corporation for the
34 following year, wherever located, and an estimate of the
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1 value of the property to be located within this State during
2 such year, and an estimate, expressed in dollars, of the
3 gross amount of business which will be transacted by it
4 during such year and an estimate of the gross amount thereof
5 which will be transacted by it at or from places of business
6 in this State during such year; or
7 (v) superseding any provision of this Act that requires
8 for approval of corporate action a two-thirds vote of the
9 shareholders by specifying any smaller or larger vote
10 requirement not less than a majority of the outstanding
11 shares entitled to vote on the matter and not less than a
12 majority of the outstanding shares of each class of shares
13 entitled to vote as a class on the matter.
14 (3) a provision eliminating or limiting the personal
15 liability of a director to the corporation or its
16 shareholders for monetary damages for breach of fiduciary
17 duty as a director, provided that the provision does not
18 eliminate or limit the liability of a director (i) for any
19 breach of the director's duty of loyalty to the corporation
20 or its shareholders, (ii) for acts or omissions not in good
21 faith or that involve intentional misconduct or a knowing
22 violation of law, (iii) under Section 8.65 of this Act, or
23 (iv) for any transaction from which the director derived an
24 improper personal benefit. No such provision shall eliminate
25 or limit the liability of a director for any act or omission
26 occurring before the date when the provision becomes
27 effective.
28 (4) any provision that under this Act is required or
29 permitted to be set forth in the articles of incorporation or
30 by-laws.
31 (c) The articles of incorporation need not set forth any
32 of the corporate powers enumerated in this Act.
33 (d) The duration of a corporation is perpetual unless
34 otherwise specified in the articles of incorporation.
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1 (e) If the data to which reference is made in
2 subparagraph (iv) of paragraph (2) of subsection (b) of this
3 Section is not included in the articles of incorporation, the
4 franchise tax provided for in this Act shall be computed on
5 the basis of the entire paid-in capital as set forth pursuant
6 to paragraph (6) of subsection (a) of this Section, until
7 such time as the data to which reference is made in
8 subparagraph (iv) of paragraph (2) of subsection (b) is
9 provided in accordance with either Section 14.05 or Section
10 14.25 of this Act.
11 When the provisions of this Section have been complied
12 with, the Secretary of State shall issue a certificate of
13 incorporation; however, the Secretary of State may not issue
14 a certificate of incorporation unless and until the proposed
15 corporation has filed certified proof of insurance of its
16 workers' compensation risk or a certificate of compliance
17 issued by the Industrial Commission in accordance with
18 Section 4 of the Workers' Compensation Act.
19 (Source: P.A. 88-43; 88-151; 88-670, eff. 12-2-94.)
20 (805 ILCS 5/2.15) (from Ch. 32, par. 2.15)
21 Sec. 2.15. Effect of issuance of certificate of
22 incorporation. Upon the issuance of the certificate of
23 incorporation by the Secretary of State, the corporate
24 existence shall begin, and such certificate of incorporation
25 shall be conclusive evidence, except as against the State,
26 that all conditions precedent required to be performed by the
27 incorporators have been complied with and that the
28 corporation has been incorporated under this Act; however,
29 the corporation shall file with the Secretary of State,
30 within 60 days of the issuance of the certificate of
31 incorporation, proof of satisfaction of the corporation's
32 obligations under Section 4 of the Workers' Compensation Act
33 in the form of either a certified proof that insurance has
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1 been secured or a certified certificate of compliance issued
2 by the Industrial Commission establishing that the
3 corporation's workers' compensation obligations have been met
4 pursuant to Section 4 of the Workers' Compensation Act.
5 Failure to file this proof within 60 days shall result in the
6 dissolution of the corporation pursuant to Section 12.4 of
7 this Act.
8 (Source: P.A. 83-1025.)
9 Section 10. The Workers' Compensation Act is amended by
10 changing Sections 1, 4, 5, 6, 7, 8, 10, 16, and 19 and adding
11 Sections 3a, 4a-10, 8a, 8b, 8c, 8d, 16b, 16c, 16d, 16e, and
12 16f as follows:
13 (820 ILCS 305/1) (from Ch. 48, par. 138.1)
14 Sec. 1. This Act may be cited as the Workers'
15 Compensation Act.
16 (a) The term "employer" as used in this Act means:
17 1. The State and each county, city, town, township,
18 incorporated village, school district, body politic, or
19 municipal corporation therein.
20 2. Every person, firm, public or private corporation,
21 including hospitals, public service, eleemosynary, religious
22 or charitable corporations or associations who has any person
23 in service or under any contract for hire, express or
24 implied, oral or written, and who is engaged in any of the
25 enterprises or businesses enumerated in Section 3 of this
26 Act, or who at or prior to the time of the accident to the
27 employee for which compensation under this Act may be
28 claimed, has in the manner provided in this Act elected to
29 become subject to the provisions of this Act, and who has
30 not, prior to such accident, effected a withdrawal of such
31 election in the manner provided in this Act.
32 3. Any one engaging in any business or enterprise
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1 referred to in subsections 1 and 2 of Section 3 of this Act
2 who undertakes to do any work enumerated therein, is liable
3 to pay compensation to his own immediate employees in
4 accordance with the provisions of this Act, and in addition
5 thereto if he directly or indirectly engages any contractor
6 whether principal or sub-contractor to do any such work, he
7 is liable to pay compensation to the employees of any such
8 contractor or sub-contractor unless such contractor or
9 sub-contractor has insured, in any company or association
10 authorized under the laws of this State to insure the
11 liability to pay compensation under this Act, or guaranteed
12 his liability to pay such compensation. With respect to any
13 time limitation on the filing of claims provided by this Act,
14 the timely filing of a claim against a contractor or
15 subcontractor, as the case may be, shall be deemed to be a
16 timely filing with respect to all persons upon whom liability
17 is imposed by this paragraph.
18 In the event any such person pays compensation under this
19 subsection he may recover the amount thereof from the
20 contractor or sub-contractor, if any, and in the event the
21 contractor pays compensation under this subsection he may
22 recover the amount thereof from the sub-contractor, if any.
23 This subsection does not apply in any case where the
24 accident occurs elsewhere than on, in or about the immediate
25 premises on which the principal has contracted that the work
26 be done.
27 4. Where an employer operating under and subject to the
28 provisions of this Act loans an employee to another such
29 employer and such loaned employee sustains a compensable
30 accidental injury in the employment of such borrowing
31 employer and where such borrowing employer does not provide
32 or pay the benefits or payments due such injured employee,
33 such loaning employer is liable to provide or pay all
34 benefits or payments due such employee under this Act and as
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1 to such employee the liability of such loaning and borrowing
2 employers is joint and several, provided that such loaning
3 employer is in the absence of agreement to the contrary
4 entitled to receive from such borrowing employer full
5 reimbursement for all sums paid or incurred pursuant to this
6 paragraph together with reasonable attorneys' fees and
7 expenses in any hearings before the Industrial Commission or
8 in any action to secure such reimbursement. Where any
9 benefit is provided or paid by such loaning employer the
10 employee has the duty of rendering reasonable cooperation in
11 any hearings, trials or proceedings in the case, including
12 such proceedings for reimbursement.
13 Where an employee files an Application for Adjustment of
14 Claim with the Industrial Commission alleging that his claim
15 is covered by the provisions of the preceding paragraph, and
16 joining both the alleged loaning and borrowing employers,
17 they and each of them, upon written demand by the employee
18 and within 7 days after receipt of such demand, shall have
19 the duty of filing with the Industrial Commission a written
20 admission or denial of the allegation that the claim is
21 covered by the provisions of the preceding paragraph and in
22 default of such filing or if any such denial be ultimately
23 determined not to have been bona fide then the provisions of
24 Paragraph K of Section 19 of this Act shall apply.
25 An employer whose business or enterprise or a substantial
26 part thereof consists of hiring, procuring or furnishing
27 employees to or for other employers operating under and
28 subject to the provisions of this Act for the performance of
29 the work of such other employers and who pays such employees
30 their salary or wages notwithstanding that they are doing the
31 work of such other employers shall be deemed a loaning
32 employer within the meaning and provisions of this Section.
33 (b) The term "employee" as used in this Act means:
34 1. Every person in the service of the State, including
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1 members of the General Assembly, members of the Commerce
2 Commission, members of the Industrial Commission, and all
3 persons in the service of the University of Illinois, county,
4 including deputy sheriffs and assistant state's attorneys,
5 city, town, township, incorporated village or school
6 district, body politic, or municipal corporation therein,
7 whether by election, under appointment or contract of hire,
8 express or implied, oral or written, including all members of
9 the Illinois National Guard while on active duty in the
10 service of the State, and all probation personnel of the
11 Juvenile Court appointed pursuant to Article VI of the
12 Juvenile Court Act of 1987, and including any official of the
13 State, any county, city, town, township, incorporated
14 village, school district, body politic or municipal
15 corporation therein except any duly appointed member of a
16 police department in any city whose population exceeds
17 200,000 according to the last Federal or State census, and
18 except any member of a fire insurance patrol maintained by a
19 board of underwriters in this State. A duly appointed member
20 of a fire department in any city, the population of which
21 exceeds 200,000 according to the last federal or State
22 census, is an employee under this Act only with respect to
23 claims brought under paragraph (c) of Section 8.
24 One employed by a contractor who has contracted with the
25 State, or a county, city, town, township, incorporated
26 village, school district, body politic or municipal
27 corporation therein, through its representatives, is not
28 considered as an employee of the State, county, city, town,
29 township, incorporated village, school district, body politic
30 or municipal corporation which made the contract.
31 2. Every person in the service of another under any
32 contract of hire, express or implied, oral or written,
33 including persons whose employment is outside of the State of
34 Illinois where the contract of hire is made within the State
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1 of Illinois, persons whose employment results in fatal or
2 non-fatal injuries within the State of Illinois where the
3 contract of hire is made outside of the State of Illinois,
4 and persons whose employment is principally localized within
5 the State of Illinois, regardless of the place of the
6 accident or the place where the contract of hire was made,
7 and including aliens, and minors who, for the purpose of this
8 Act are considered the same and have the same power to
9 contract, receive payments and give quittances therefor, as
10 adult employees.
11 3. Every sole proprietor and every partner of a business
12 may elect to be covered by this Act.
13 An employee or his dependents under this Act who shall
14 have a cause of action by reason of any injury, disablement
15 or death arising out of and in the course of his employment
16 may elect to pursue his remedy in the State where injured or
17 disabled, or in the State where the contract of hire is made,
18 or in the State where the employment is principally
19 localized.
20 However, any employer may elect to provide and pay
21 compensation to any employee other than those engaged in the
22 usual course of the trade, business, profession or occupation
23 of the employer by complying with Sections 2 and 4 of this
24 Act. Employees are not included within the provisions of
25 this Act when excluded by the laws of the United States
26 relating to liability of employers to their employees for
27 personal injuries where such laws are held to be exclusive.
28 The term "employee" does not include persons performing
29 services as real estate broker, broker-salesman, or salesman
30 when such persons are paid by commission only.
31 (c) "Commission" means the Industrial Commission created
32 by Section 5 of "The Civil Administrative Code of Illinois",
33 approved March 7, 1917, as amended, or the Industrial
34 Commission created by Section 13 of this Act.
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1 (Source: P.A. 85-1209.)
2 (820 ILCS 305/3a new)
3 Sec. 3a. State Compensation Insurance Fund.
4 (a) As used in this Section:
5 (1) "Manager" means the manager of the State
6 Compensation Insurance Fund.
7 (2) "Fund" means the State Compensation Insurance
8 Fund.
9 (3) "Board" means the board of directors of the
10 State Compensation Insurance Fund.
11 (b) The State Compensation Insurance Fund is created as
12 an independent public corporation and the purpose of the
13 State Compensation Insurance Fund is to insure employers
14 against liability for injuries and occupational diseases for
15 which their employees may be entitled to benefits under the
16 Workers' Compensation Act, the Workers' Occupational Diseases
17 Act, the federal Employers' Liability Act, and the federal
18 Longshoremen's and Harbor Workers' Compensation Act.
19 (c) (1) The State Compensation Insurance Fund shall be
20 under the direct supervision of a board of directors which
21 shall consist of 5 members to be appointed by the Governor.
22 After the Fund has operated for a period of one year, each
23 member appointed shall be a policyholder or an employee of a
24 policyholder of the Fund and at least one of the members of
25 the board of directors shall be an employee of a policyholder
26 of the Fund.
27 (2) One member of the board of the directors shall be
28 appointed for a term ending December 31, 1998, and each other
29 director for a term expiring one, 2, 3 and 4 years
30 thereafter. Upon expiration of any of the terms, the
31 appointee or his or her successor shall be appointed for a
32 term of 4 years. Appointment to fill a vacancy caused by
33 other than expiration of the term shall be for the unexpired
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1 portion of the term.
2 (3) Each appointed member of the board shall receive as
3 compensation $100 per day while in actual attendance at
4 meetings of the board and shall be reimbursed for mileage and
5 expenses.
6 (4) The chairman shall be elected annually by the
7 members of the board. The board may adopt rules and
8 regulations as it deems proper for the conduct of its
9 business. The board may from time to time amend or change the
10 rules and regulations and may cause them to be published and
11 distributed.
12 (5) The board shall meet at least once every 3 months.
13 Board meetings may be called at any time by the chairman of
14 the board or the manager of the Fund.
15 (6) The board shall be responsible for setting forth the
16 general policy for the operation of the Fund.
17 (7) There shall not be any liability in a private
18 capacity on the part of the board of directors or any member
19 thereof or any officer or employee of the Fund for or on
20 account of any act performed or obligation entered into in
21 any official capacity in connection with the administration,
22 management or conduct of the Fund or affairs relating
23 thereto.
24 (8) The board of directors is hereby vested with full
25 power, authority and jurisdiction over the Fund. The board of
26 directors may perform all acts necessary or convenient in the
27 exercise of any power, authority or jurisdiction over the
28 Fund, either in the administration thereof or in connection
29 with the insurance business to be carried on by it under the
30 provisions of this Section, as fully and completely as the
31 governing body of a private insurance carrier to fulfill the
32 objectives and intent of this Section.
33 (d)(1) The board of directors of the Fund shall appoint
34 a manager of the Fund who shall be in charge of the
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1 day-to-day operation of the Fund. The manager shall have
2 proven successful experience as an executive at the general
3 management level. The manager shall be appointed for a term
4 of 6 years. The manager shall receive compensation as set by
5 the board, and may be removed only for cause by the board.
6 (2) Before entering on the duties of the office, the
7 manager shall qualify by giving an official bond in an amount
8 and with sureties approved by the Board. The manager shall
9 file the bond with the State Treasurer. The premium for the
10 bond shall be paid by the Fund.
11 (e) The manager, subject to the authority of the board
12 of directors, has full power, authority, and jurisdiction
13 over the Fund. The manager may perform all acts necessary or
14 convenient in the exercise of any power, authority or
15 jurisdiction over the Fund, either in the administration of
16 the Fund or in connection with the insurance business to be
17 carried on by the Fund under the provisions of this Section,
18 including the establishment of premium rates.
19 (f) The manager, subject to the approval of the board of
20 directors, may adopt rules and regulations relating to the
21 conduct of the business of the Fund.
22 (g) In conducting the business of the Fund, the manager
23 may:
24 (1) contract with physicians, surgeons, hospitals,
25 and rehabilitation facilities for medical, surgical, and
26 rehabilitation evaluation and treatment and the care and
27 nursing of injured persons entitled to benefits from the
28 Fund;
29 (2) make safety inspections with risks and furnish
30 advisory service to employers on safety and health
31 measures;
32 (3) act for the Fund in collecting and disbursing
33 money necessary to administer the Fund and conduct the
34 business of the Fund.
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1 (h) Annually the board shall report to the Governor and
2 the General Assembly the business done by the Fund during the
3 previous year and shall submit to the Governor a statement of
4 the resources and liabilities of the Fund.
5 (i) The Fund may:
6 (1) insure an employer against any workers'
7 compensation and employer's liability such employer may
8 have on account of bodily injury or occupational diseases
9 to his or her workers arising out of and in the course of
10 employment, as fully as any other insurer;
11 (2) insure employers against their liability for
12 compensation or damages under the federal Longshoremen's
13 and Harbor Workers' Compensation Act or any extension of
14 that Act, as fully as any other insurer;
15 (3) furnish advice, services and excess workers'
16 compensation and employer liability insurance to any
17 employer qualified as a self-insured employer; and
18 (4) reinsure any risk or any part thereof.
19 (j) The monies and assets belonging to the Fund are:
20 (1) all premiums and other monies paid to the Fund;
21 (2) all property and securities acquired through
22 the use of money belonging to the Fund; and
23 (3) all interest and dividends earned upon money
24 belonging to the Fund and deposited or invested as
25 provided in this Section.
26 (k) (1) The State Treasurer is the ex-officio custodian
27 of the Fund and shall keep all monies and assets belonging to
28 the Fund in a separate account outside of the State Treasury
29 and all interest earnings shall be credited to the Fund.
30 This separate account shall be known as the Workers'
31 Compensation Insurance Fund. The State Treasurer shall be
32 liable under his or her bond for the safe keeping of such
33 monies and assets.
34 (2) The manager shall deliver all receipts collected or
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1 received under this Section to the State Treasurer.
2 (3) The moneys and assets of the Fund shall not be
3 moneys and assets of the State but shall be used exclusively
4 for the operations and obligations of the Fund.
5 (4)(A) Except as provided in subparagraph (B) of this
6 paragraph, no money may be expended from the separate account
7 except by a warrant drawn by the State Comptroller and
8 presented by him or her to the State Treasurer to be
9 countersigned. No warrant for the payment of money from the
10 separate account by the State Treasurer may be drawn by the
11 State Comptroller without the presentation of itemized
12 vouchers by the manager indicating that the expenditure is
13 pursuant to law and is authorized.
14 (B) Money may be expended from the separate account from
15 a checking account maintained by the Fund, by checks signed
16 by the manager, but only for the payment of obligations for:
17 (i) first-aid, medical, hospital and surgical
18 services required under subsection (a) of Section 8
19 of this Act; and
20 (ii) weekly compensation payments for
21 temporary total incapacity provided under subsection
22 (b) of Section 8 of this Act; and
23 (iii) the operations of the State Compensation
24 Insurance Fund.
25 The Comptroller shall provide in his or her rules and
26 regulations for periodic transfers, with the State
27 Treasurer's approval, to the checking account of the State
28 Compensation Insurance Fund for use in accordance with the
29 imprest system.
30 (5) For any obligations in connection therewith the
31 liability of the State shall at no time exceed the amount of
32 the assets of the State Compensation Insurance Fund.
33 (l) The Fund may:
34 (1) use its assets to pay medical expenses,
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1 rehabilitation expenses, compensation due claimants of
2 insured employers, and to pay salaries, administrative
3 and other expenses;
4 (2) declare a dividend when there is an excess of
5 assets over liabilities, necessary reserves, and a
6 reasonable surplus for catastrophic hazards;
7 (3) rent, lease, buy and sell property in its own
8 name, construct and repair buildings as necessary to
9 provide office space for its operations;
10 (4) sue and be sued in its own name;
11 (5) enter into contracts relating to the
12 administration of the Fund;
13 (6) perform all the functions which are necessary
14 or appropriate to carry out the administration of the
15 Fund; and
16 (7) hire personnel, subject to the provisions of
17 the Personnel Code, and set salaries and compensation to
18 accomplish the purposes of its existence and operations.
19 (m) The premium rates established by the manager shall
20 be that percentage of the payroll of any employer which, on
21 the average, shall produce a sufficient sum to:
22 (1) carry all claims to maturity such that rates
23 shall be based upon the reserve and not upon the
24 assessment plan; and
25 (2) produce a reasonable surplus so as to cover
26 catastrophic hazards and to insure the payment to
27 employees and their dependents of the compensation
28 provided in this Act.
29 In determining the amount of reserve to be laid aside to
30 meet deferred payments according to compensation awards, the
31 reserves may be ascertained by finding the present worth of
32 the deferred payments calculated at a rate of interest not
33 higher than 3% per annum and such calculations shall be made
34 according to a table of mortality not lower than the American
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1 Experience Table of Mortality and, in the discretion of the
2 Board, by such other and further methods as will result in
3 the establishment of adequate reserves.
4 (n) (1) The State Compensation Insurance Fund shall be
5 open to visitation by the Director of Insurance at all
6 reasonable times, and the Director of Insurance shall require
7 from the manager reports as to the condition of the Fund and
8 such other reports as may be required by law to be made by
9 other insurance carriers doing business in this State insofar
10 as applicable to the Fund.
11 (2) The manager shall have an annual audit of the books
12 and records of the Fund made by a duly qualified independent
13 certified accountant, and have an abstract summary of this
14 audit prepared for public use.
15 (3) The Auditor General shall conduct a financial audit
16 of the Fund at least once every 2 years. The Auditor General
17 shall conduct a management or program audit when so directed
18 by either house of the General Assembly, in a resolution
19 identifying the subject, parties and scope.
20 (4) At least once every 3 years, the Director of
21 Insurance shall conduct an examination of the Fund. The
22 examination shall be conducted in the same manner as an
23 examination of a private insurance carrier. The Director of
24 Insurance shall transmit a copy of his or her examination to
25 the Governor, the General Assembly, the Auditor General, the
26 manager and the board.
27 (o) (1) Startup costs and beginning balance for the Fund
28 shall be provided by funds appropriated by the General
29 Assembly.
30 (2) In no case may the total amount advanced to the Fund
31 from the State under this Section exceed $10,000,000.
32 (3) State advances to the Fund shall not extend beyond
33 December 31, 2002, and any funds advanced to the Fund shall
34 be repaid, 20% each year for 5 years, beginning with calendar
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1 year 2003 and continuing through calendar year 2007.
2 (p) An employer who intentionally misrepresents any
3 material fact upon which his or her premium under this
4 Section is based is liable to the Fund for 3 times the amount
5 of the difference of the premium paid and the amount the
6 employer should have paid if his or her payroll had been
7 correctly computed. The penalty shall be collected in a
8 civil action.
9 (820 ILCS 305/4) (from Ch. 48, par. 138.4)
10 Sec. 4. (a) Any employer who shall come within the
11 provisions of Section 3 of this Act, and any other employer
12 who shall elect to provide and pay the compensation provided
13 for in this Act shall:
14 (1) File with the Commission annually an
15 application for approval as a self-insurer which shall
16 include a current financial statement, and annually,
17 thereafter, an application for renewal of self-insurance,
18 which shall include a current financial statement. Said
19 application and financial statement shall be signed and
20 sworn to by the president or vice president and secretary
21 or assistant secretary of the employer if it be a
22 corporation, or by all of the partners, if it be a
23 copartnership, or by the owner if it be neither a
24 copartnership nor a corporation. All initial applications
25 and all applications for renewal of self-insurance must
26 be submitted at least 60 days prior to the requested
27 effective date of self-insurance.
28 If the sworn application and financial statement of
29 any such employer does not satisfy the Commission of the
30 financial ability of the employer who has filed it, the
31 Commission shall require such employer to,
32 (2) Furnish security, indemnity or a bond
33 guaranteeing the payment by the employer of the
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1 compensation provided for in this Act, provided that any
2 such employer whose application and financial statement
3 shall not have satisfied the commission of his or her
4 financial ability and who shall have secured his
5 liability in part by excess liability insurance shall be
6 required to furnish to the Commission security, indemnity
7 or bond guaranteeing his or her payment up to the
8 effective limits of the excess coverage, or
9 (3) Insure his entire liability to pay such
10 compensation in some insurance carrier authorized,
11 licensed, or permitted to do such insurance business in
12 this State. Every policy of an insurance carrier,
13 insuring the payment of compensation under this Act shall
14 cover all the employees and the entire compensation
15 liability of the insured: Provided, however, that any
16 employer may insure his or her compensation liability
17 with 2 or more insurance carriers or may insure a part
18 and qualify under subsection 1, 2, or 4 for the remainder
19 of his or her liability to pay such compensation, subject
20 to the following two provisions:
21 Firstly, the entire compensation liability of
22 the employer to employees working at or from one
23 location shall be insured in one such insurance
24 carrier or shall be self-insured, and
25 Secondly, the employer shall submit evidence
26 satisfactorily to the Commission that his or her
27 entire liability for the compensation provided for
28 in this Act will be secured. Any provisions in any
29 policy, or in any endorsement attached thereto,
30 attempting to limit or modify in any way, the
31 liability of the insurance carriers issuing the same
32 except as otherwise provided herein shall be wholly
33 void.
34 Nothing herein contained shall apply to policies of
-19- LRB9002213DJcd
1 excess liability carriage secured by employers who have
2 been approved by the Commission as self-insurers, or
3 (4) Make some other provision, satisfactory to the
4 Commission, for the securing of the payment of
5 compensation provided for in this Act; provided, however,
6 that: , and
7 (A) the State and all departments thereof must
8 insure against their liability to pay that
9 compensation in the State Compensation Insurance
10 Fund; and
11 (B) each county, city, town, township,
12 incorporated village, school district, body politic
13 or municipal corporation must insure against its
14 liability to pay that compensation by either:
15 (i) securing the approval of the
16 Commission to be a self-insurer or a
17 participant in a self-insurance plan; or
18 (ii) insuring its liability to pay that
19 compensation in the State Compensation
20 Insurance Fund; or
21 (iii) insuring its liability to pay that
22 compensation by any other alternative
23 authorized by this Section if the premium which
24 would be required under the alternative is less
25 than can be otherwise provided by the State
26 Compensation Insurance Fund; however, any city,
27 village or incorporated town may by a majority
28 vote of the members of its governing body
29 present and voting remove itself from the
30 requirements of this subdivision (iii) and
31 thereafter such city, village or incorporated
32 town shall not be bound by the provisions of
33 this subdivision (iii) unless its governing
34 body by a majority vote of those present and
-20- LRB9002213DJcd
1 voting elects to avail itself of the provisions
2 hereof; and
3 (5) Upon becoming subject to this Act and
4 thereafter as often as the Commission may in writing
5 demand, file with the Commission in form prescribed by it
6 evidence of his or her compliance with the provision of
7 this Section.
8 (b) The sworn application and financial statement, or
9 security, indemnity or bond, or amount of insurance, or other
10 provisions, filed, furnished, carried, or made by the
11 employer, as the case may be, shall be subject to the
12 approval of the Commission.
13 Deposits under escrow agreements shall be cash,
14 negotiable United States government bonds or negotiable
15 general obligation bonds of the State of Illinois. Such cash
16 or bonds shall be deposited in escrow with any State or
17 National Bank or Trust Company having trust authority in the
18 State of Illinois.
19 Upon the approval of the sworn application and financial
20 statement, security, indemnity or bond or amount of
21 insurance, filed, furnished or carried, as the case may be,
22 the Commission shall send to the employer written notice of
23 its approval thereof. The certificate of compliance by the
24 employer with the provisions of subparagraphs (2) and (3) of
25 paragraph (a) of this Section shall be delivered by the
26 insurance carrier to the Industrial Commission within five
27 days after the effective date of the policy so certified.
28 The insurance so certified shall cover all compensation
29 liability occurring during the time that the insurance is in
30 effect and no further certificate need be filed in case such
31 insurance is renewed, extended or otherwise continued by such
32 carrier. The insurance so certified shall not be cancelled
33 or in the event that such insurance is not renewed, extended
34 or otherwise continued, such insurance shall not be
-21- LRB9002213DJcd
1 terminated until at least 10 days after receipt by the
2 Industrial Commission of notice of the cancellation or
3 termination of said insurance; provided, however, that if the
4 employer has secured insurance from another insurance
5 carrier, or has otherwise secured the payment of compensation
6 in accordance with this Section, and such insurance or other
7 security becomes effective prior to the expiration of the 10
8 days, cancellation or termination may, at the option of the
9 insurance carrier indicated in such notice, be effective as
10 of the effective date of such other insurance or security.
11 (c) Whenever the Commission shall find that any
12 corporation, company, association, aggregation of
13 individuals, reciprocal or interinsurers exchange, or other
14 insurer effecting workers' compensation insurance in this
15 State shall be insolvent, financially unsound, or unable to
16 fully meet all payments and liabilities assumed or to be
17 assumed for compensation insurance in this State, or shall
18 practice a policy of delay or unfairness toward employees in
19 the adjustment, settlement, or payment of benefits due such
20 employees, the Commission may after reasonable notice and
21 hearing order and direct that such corporation, company,
22 association, aggregation of individuals, reciprocal or
23 interinsurers exchange, or insurer, shall from and after a
24 date fixed in such order discontinue the writing of any such
25 workers' compensation insurance in this State. Subject to
26 such modification of the order as the Commission may later
27 make on review of the order, as herein provided, it shall
28 thereupon be unlawful for any such corporation, company,
29 association, aggregation of individuals, reciprocal or
30 interinsurers exchange, or insurer to effect any workers'
31 compensation insurance in this State. A copy of the order
32 shall be served upon the Director of Insurance by registered
33 mail. Whenever the Commission finds that any service or
34 adjustment company used or employed by a self-insured
-22- LRB9002213DJcd
1 employer or by an insurance carrier to process, adjust,
2 investigate, compromise or otherwise handle claims under this
3 Act, has practiced or is practicing a policy of delay or
4 unfairness toward employees in the adjustment, settlement or
5 payment of benefits due such employees, the Commission may
6 after reasonable notice and hearing order and direct that
7 such service or adjustment company shall from and after a
8 date fixed in such order be prohibited from processing,
9 adjusting, investigating, compromising or otherwise handling
10 claims under this Act.
11 Whenever the Commission finds that any self-insured
12 employer has practiced or is practicing delay or unfairness
13 toward employees in the adjustment, settlement or payment of
14 benefits due such employees, the Commission may, after
15 reasonable notice and hearing, order and direct that after a
16 date fixed in the order such self-insured employer shall be
17 disqualified to operate as a self-insurer and shall be
18 required to insure his entire liability to pay compensation
19 in some insurance carrier authorized, licensed and permitted
20 to do such insurance business in this State, as provided in
21 subparagraph 3 of paragraph (a) of this Section.
22 All orders made by the Commission under this Section
23 shall be subject to review by the courts, said review to be
24 taken in the same manner and within the same time as provided
25 by Section 19 of this Act for review of awards and decisions
26 of the Commission, upon the party seeking the review filing
27 with the clerk of the court to which said review is taken a
28 bond in an amount to be fixed and approved by the court to
29 which the review is taken, conditioned upon the payment of
30 all compensation awarded against the person taking said
31 review pending a decision thereof and further conditioned
32 upon such other obligations as the court may impose. Upon
33 the review the Circuit Court shall have power to review all
34 questions of fact as well as of law. The penalty hereinafter
-23- LRB9002213DJcd
1 provided for in this paragraph shall not attach and shall not
2 begin to run until the final determination of the order of
3 the Commission.
4 (d) Upon a finding by the Commission, after reasonable
5 notice and hearing, of the knowing and wilful failure of an
6 employer to comply with any of the provisions of paragraph
7 (a) of this Section or the failure or refusal of an employer,
8 service or adjustment company, or an insurance carrier to
9 comply with any order of the Industrial Commission pursuant
10 to paragraph (c) of this Section disqualifying him or her to
11 operate as a self-insurer and requiring him or her to insure
12 his or her liability, the Commission may assess a civil
13 penalty of up to $500 per day for each day of such failure or
14 refusal after the effective date of this amendatory Act of
15 1989. Each day of such failure or refusal shall constitute a
16 separate offense. Civil penalties recovered under this
17 subsection (d) shall be deposited into the Second Injury
18 Fund.
19 Upon the failure or refusal of any employer, service or
20 adjustment company or insurance carrier to comply with the
21 provisions of this Section and with the orders of the
22 Commission under this Section, or the order of the court on
23 review after final adjudication, the Commission may bring a
24 civil action to recover the amount of the penalty in Cook
25 County or in Sangamon County in which litigation the
26 Commission shall be represented by the Attorney General. The
27 Commission shall send notice of its finding of non-compliance
28 and assessment of the civil penalty to the Attorney General.
29 It shall be the duty of the Attorney General within 30 days
30 after receipt of the notice, to institute prosecutions and
31 promptly prosecute all reported violations of this Section.
32 (e) This Act shall not affect or disturb the continuance
33 of any existing insurance, mutual aid, benefit, or relief
34 association or department, whether maintained in whole or in
-24- LRB9002213DJcd
1 part by the employer or whether maintained by the employees,
2 the payment of benefits of such association or department
3 being guaranteed by the employer or by some person, firm or
4 corporation for him or her: Provided, the employer
5 contributes to such association or department an amount not
6 less than the full compensation herein provided, exclusive of
7 the cost of the maintenance of such association or department
8 and without any expense to the employee. This Act shall not
9 prevent the organization and maintaining under the insurance
10 laws of this State of any benefit or insurance company for
11 the purpose of insuring against the compensation provided for
12 in this Act, the expense of which is maintained by the
13 employer. This Act shall not prevent the organization or
14 maintaining under the insurance laws of this State of any
15 voluntary mutual aid, benefit or relief association among
16 employees for the payment of additional accident or sick
17 benefits.
18 (f) No existing insurance, mutual aid, benefit or relief
19 association or department shall, by reason of anything herein
20 contained, be authorized to discontinue its operation without
21 first discharging its obligations to any and all persons
22 carrying insurance in the same or entitled to relief or
23 benefits therein.
24 (g) Any contract, oral, written or implied, of
25 employment providing for relief benefit, or insurance or any
26 other device whereby the employee is required to pay any
27 premium or premiums for insurance against the compensation
28 provided for in this Act shall be null and void. Any
29 employer withholding from the wages of any employee any
30 amount for the purpose of paying any such premium shall be
31 guilty of a Class B misdemeanor.
32 In the event the employer does not pay the compensation
33 for which he or she is liable, then an insurance company,
34 association or insurer which may have insured such employer
-25- LRB9002213DJcd
1 against such liability shall become primarily liable to pay
2 to the employee, his or her personal representative or
3 beneficiary the compensation required by the provisions of
4 this Act to be paid by such employer. The insurance carrier
5 may be made a party to the proceedings in which the employer
6 is a party and an award may be entered jointly against the
7 employer and the insurance carrier.
8 (h) It shall be unlawful for any employer, insurance
9 company or service or adjustment company to interfere with,
10 restrain or coerce an employee in any manner whatsoever in
11 the exercise of the rights or remedies granted to him or her
12 by this Act or to discriminate, attempt to discriminate, or
13 threaten to discriminate against an employee in any way
14 because of his or her exercise of the rights or remedies
15 granted to him or her by this Act.
16 The arbitrator and Commission shall hear evidence and
17 make written findings on the employee's petition for
18 sanctions based upon the prohibitions of this Section. If
19 the arbitrator or Commission finds that the employer or its
20 agent has engaged in such proscribed activities, the employee
21 shall be allowed additional compensation in the amount of
22 $5,000. The employee shall retain his or her common law
23 rights against the employer.
24 It shall be unlawful for any employer, individually or
25 through any insurance company or service or adjustment
26 company, to discharge or to threaten to discharge, or to
27 refuse to rehire or recall to active service in a suitable
28 capacity an employee because of the exercise of his or her
29 rights or remedies granted to him or her by this Act.
30 (i) If an employer elects to obtain a life insurance
31 policy on his employees, he may also elect to apply such
32 benefits in satisfaction of all or a portion of the death
33 benefits payable under this Act, in which case, the
34 employer's compensation premium shall be reduced accordingly.
-26- LRB9002213DJcd
1 (j) Within 45 days of receipt of an initial application
2 or application to renew self-insurance privileges the
3 Self-Insurers Advisory Board shall review and submit for
4 approval by the Chairman of the Commission recommendations of
5 disposition of all initial applications to self-insure and
6 all applications to renew self-insurance privileges filed by
7 private self-insurers pursuant to the provisions of this
8 Section and Section 4a-9 of this Act. Each private
9 self-insurer shall submit with its initial and renewal
10 applications the application fee required by Section 4a-4 of
11 this Act.
12 The Chairman of the Commission shall promptly act upon
13 all initial applications and applications for renewal in full
14 accordance with the recommendations of the Board or, should
15 the Chairman disagree with any recommendation of disposition
16 of the Self-Insurer's Advisory Board, he shall within 30 days
17 of receipt of such recommendation provide to the Board in
18 writing the reasons supporting his decision. The Chairman
19 shall also promptly notify the employer of his decision
20 within 15 days of receipt of the recommendation of the Board.
21 If an employer is denied a renewal of self-insurance
22 privileges pursuant to application it shall retain said
23 privilege for 120 days after receipt of a notice of
24 cancellation of the privilege from the Chairman of the
25 Commission.
26 All orders made by the Chairman under this Section shall
27 be subject to review by the courts, such review to be taken
28 in the same manner and within the same time as provided by
29 subsection (f) of Section 19 of this Act for review of awards
30 and decisions of the Commission, upon the party seeking the
31 review filing with the clerk of the court to which such
32 review is taken a bond in an amount to be fixed and approved
33 by the court to which the review is taken, conditioned upon
34 the payment of all compensation awarded against the person
-27- LRB9002213DJcd
1 taking such review pending a decision thereof and further
2 conditioned upon such other obligations as the court may
3 impose. Upon the review the Circuit Court shall have power
4 to review all questions of fact as well as of law.
5 (Source: P.A. 86-998; 86-1405.)
6 (820 ILCS 305/4a-10 new)
7 Sec. 4a-10. Failure to insure or self-insure. If an
8 employer fails to insure or self-insure as required by this
9 Act, the State Treasurer, as ex-officio custodian of the
10 Second Injury Fund, may be joined with the employer as a
11 party respondent in the application for adjustment of claim.
12 Upon a finding by the arbitrator that the employer has failed
13 to insure or self-insure as required by this Act, the State
14 Treasurer, as ex-officio custodian of the Second Injury Fund,
15 shall assume the liability of the employer to pay all
16 benefits as provided by this Act. The State Treasurer shall
17 have the same defenses to such claims as would the insured
18 employer. The office of the Attorney General of the State of
19 Illinois shall bring suit in the circuit court of the county
20 in which the accident occurred against any employer for which
21 payment has been made pursuant to this Section. The penalty
22 under this Section shall be the amount withdrawn from the
23 Second Injury Fund for the employer's employee or his or her
24 dependents, plus a fine of $500 a day from the date of the
25 injury up to a maximum of $25,000, and any amount so
26 collected shall be paid into the Second Injury Fund.
27 (820 ILCS 305/5) (from Ch. 48, par. 138.5)
28 Sec. 5. (a) No common law or statutory right to recover
29 damages from the employer, his insurer, his broker, any
30 service organization retained by the employer, his insurer or
31 his broker, or the union, its agents, employees, or members
32 of its safety committee to provide safety service, advice or
-28- LRB9002213DJcd
1 recommendations for the employer or the agents or employees
2 of any of them for injury or death sustained by any employee
3 while engaged in the line of his duty as such employee, other
4 than the compensation herein provided, is available to any
5 employee who is covered by the provisions of this Act, to any
6 one wholly or partially dependent upon him, the legal
7 representatives of his estate, or any one otherwise entitled
8 to recover damages for such injury.
9 However, in any action now pending or hereafter begun to
10 enforce a common law or statutory right to recover damages
11 for negligently causing the injury or death of any employee
12 it is not necessary to allege in the complaint that either
13 the employee or the employer or both were not governed by the
14 provisions of this Act or of any similar Act in force in this
15 or any other State.
16 Any illegally employed minor or his legal representatives
17 shall, except as hereinafter provided, have the right within
18 6 months after the time of injury or death, or within 6
19 months after the appointment of a legal representative,
20 whichever shall be later, to file with the Commission a
21 rejection of his right to the benefits under this Act, in
22 which case such illegally employed minor or his legal
23 representatives shall have the right to pursue his or their
24 common law or statutory remedies to recover damages for such
25 injury or death.
26 No payment of compensation under this Act shall be made
27 to an illegally employed minor, or his legal representatives,
28 unless such payment and the waiver of his right to reject the
29 benefits of this Act has first been approved by the
30 Commission or any member thereof, and if such payment and the
31 waiver of his right of rejection has been so approved such
32 payment is a bar to a subsequent rejection of the provisions
33 of this Act.
34 (b) Where the injury or death for which compensation is
-29- LRB9002213DJcd
1 payable under this Act was caused under circumstances
2 creating a legal liability for damages on the part of some
3 person other than his employer to pay damages, then legal
4 proceedings may be taken against such other person to recover
5 damages notwithstanding such employer's payment of or
6 liability to pay compensation under this Act. In such case,
7 however, if the action against such other person is brought
8 by the injured employee or his personal representative and
9 judgment is obtained and paid, or settlement is made with
10 such other person, either with or without suit, then from the
11 amount received by such employee or personal representative
12 there shall be paid to the employer the amount of
13 compensation paid or to be paid by him to such employee or
14 personal representative including amounts paid or to be paid
15 pursuant to paragraph (a) of Section 8 of this Act. If the
16 employee or personal representative brings an action against
17 another person and the other person then brings an action for
18 contribution against the employer, the amount, if any, that
19 shall be paid to the employer by the employee or personal
20 representative pursuant to this Section shall be reduced by
21 an amount equal to the amount found by the trier of fact to
22 be the employer's pro rata share of the common liability in
23 the action.
24 Out of any reimbursement received by the employer
25 pursuant to this Section the employer shall pay his pro rata
26 share of all costs and reasonably necessary expenses in
27 connection with such third-party claim, action or suit and
28 where the services of an attorney at law of the employee or
29 dependents have resulted in or substantially contributed to
30 the procurement by suit, settlement or otherwise of the
31 proceeds out of which the employer is reimbursed, then, in
32 the absence of other agreement, the employer shall pay such
33 attorney 25% of the gross amount of such reimbursement.
34 If the injured employee or his personal representative
-30- LRB9002213DJcd
1 agrees to receive compensation from the employer or accept
2 from the employer any payment on account of such
3 compensation, or to institute proceedings to recover the
4 same, the employer may have or claim a lien upon any award,
5 judgment or fund out of which such employee might be
6 compensated from such third party.
7 In such actions brought by the employee or his personal
8 representative, he shall forthwith notify his employer by
9 personal service or registered mail, of such fact and of the
10 name of the court in which the suit is brought, filing proof
11 thereof in the action. The employer may, at any time
12 thereafter join in the action upon his motion so that all
13 orders of court after hearing and judgment shall be made for
14 his protection. No release or settlement of claim for
15 damages by reason of such injury or death, and no
16 satisfaction of judgment in such proceedings shall be valid
17 without the written consent of both employer and employee or
18 his personal representative, except in the case of the
19 employers, such consent is not required where the employer
20 has been fully indemnified or protected by Court order.
21 In the event the employee or his personal representative
22 fails to institute a proceeding against such third person at
23 any time prior to 3 months before such action would be
24 barred, the employer may in his own name or in the name of
25 the employee, or his personal representative, commence a
26 proceeding against such other person for the recovery of
27 damages on account of such injury or death to the employee,
28 and out of any amount recovered the employer shall pay over
29 to the injured employee or his personal representatives all
30 sums collected from such other person by judgment or
31 otherwise in excess of the amount of such compensation paid
32 or to be paid under this Act, including amounts paid or to be
33 paid pursuant to paragraph (a) of Section 8 of this Act, and
34 costs, attorney's fees and reasonable expenses as may be
-31- LRB9002213DJcd
1 incurred by such employer in making such collection or in
2 enforcing such liability.
3 This amendatory Act of 1995 applies to causes of action
4 accruing on or after its effective date.
5 (Source: P.A. 89-7, eff. 3-9-95.)
6 (820 ILCS 305/6) (from Ch. 48, par. 138.6)
7 Sec. 6. (a) Every employer within the provisions of this
8 Act, shall, under the rules and regulations prescribed by the
9 Commission, post printed notices in their respective places
10 of employment in such number and at such places as may be
11 determined by the Commission, containing such information
12 relative to this Act as in the judgment of the Commission may
13 be necessary to aid employees to safeguard their rights under
14 this Act in event of injury.
15 In addition thereto, the employer shall post in a
16 conspicuous place on the place of the employment a printed or
17 typewritten notice stating whether he is insured or whether
18 he has qualified and is operating as a self-insured employer.
19 In the event the employer is insured, the notice shall state
20 the name and address of his insurance carrier, the number of
21 the insurance policy, its effective date and the date of
22 termination. In the event of the termination of the policy
23 for any reason prior to the termination date stated, the
24 posted notice shall promptly be corrected accordingly. In
25 the event the employer is operating as a self-insured
26 employer the notice shall state the name and address of the
27 company, if any, servicing the compensation payments of the
28 employer, and the name and address of the person in charge of
29 making compensation payments.
30 (b) Every employer subject to this Act shall maintain
31 accurate records of work-related deaths, injuries and illness
32 other than minor injuries requiring only first aid treatment
33 and which do not involve medical treatment, loss of
-32- LRB9002213DJcd
1 consciousness, restriction of work or motion, or transfer to
2 another job and file with the Commission, in writing, a
3 report of all accidental deaths, injuries and illnesses
4 arising out of and in the course of the employment resulting
5 in the loss of more than 3 scheduled work days. In the case
6 of death such report shall be made no later than 2 working
7 days following the accidental death. In all other cases such
8 report shall be made between the 15th and 25th of each month
9 unless required to be made sooner by rule of the Commission.
10 In case the injury results in permanent disability, a further
11 report shall be made as soon as it is determined that such
12 permanent disability has resulted or will result from the
13 injury. All reports shall state the date of the injury,
14 including the time of day or night, the nature of the
15 employer's business, the name, address, age, sex, conjugal
16 condition of the injured person, the specific occupation of
17 the injured person, the direct cause of the injury and the
18 nature of the accident, the character of the injury, the
19 length of disability, and in case of death the length of
20 disability before death, the wages of the injured person,
21 whether compensation has been paid to the injured person, or
22 to his or her legal representative or his heirs or next of
23 kin, the amount of compensation paid, the amount paid for
24 physicians', surgeons' and hospital bills, and by whom paid,
25 and the amount paid for funeral or burial expenses if known.
26 The reports shall be made on forms and in the manner as
27 prescribed by the Commission and shall contain such further
28 information as the Commission shall deem necessary and
29 require. The making of these reports releases the employer
30 from making such reports to any other officer of the State
31 and shall satisfy the reporting provisions as contained in
32 the "Health and Safety Act" and "An Act in relation to safety
33 inspections and education in industrial and commercial
34 establishments and to repeal an Act therein named", approved
-33- LRB9002213DJcd
1 July 18, 1955, as now or hereafter amended. The reports
2 filed with the Commission pursuant to this Section shall be
3 made available by the Commission to the Director of Labor or
4 his representatives and to all other departments of the State
5 of Illinois which shall require such information for the
6 proper discharge of their official duties. Failure to file
7 with the Commission any of the reports required in this
8 Section is a petty offense.
9 Except as provided in this paragraph, all reports filed
10 hereunder shall be confidential and any person having access
11 to such records filed with the Industrial Commission as
12 herein required, who shall release any information therein
13 contained including the names or otherwise identify any
14 persons sustaining injuries or disabilities, or give access
15 to such information to any unauthorized person, shall be
16 subject to discipline or discharge, and in addition shall be
17 guilty of a Class B misdemeanor. The Commission shall compile
18 and distribute to interested persons aggregate statistics,
19 taken from the reports filed hereunder. The aggregate
20 statistics shall not give the names or otherwise identify
21 persons sustaining injuries or disabilities or the employer
22 of any injured or disabled person.
23 (c) Notice of the accident shall be given to the
24 employer as soon as practicable, but not later than 45 days
25 after the accident. Provided:
26 (1) In case of the legal disability of the employee or
27 any dependent of a deceased employee who may be entitled to
28 compensation under the provisions of this Act, the
29 limitations of time by this Act provided do not begin to run
30 against such person under legal disability until a guardian
31 has been appointed.
32 (2) In cases of injuries sustained by exposure to
33 radiological materials or equipment, notice shall be given to
34 the employer within 90 days subsequent to the time that the
-34- LRB9002213DJcd
1 employee knows or suspects that he has received an excessive
2 dose of radiation.
3 No defect or inaccuracy of such notice shall be a bar to
4 the maintenance of proceedings on arbitration or otherwise by
5 the employee unless the employer proves that he is unduly
6 prejudiced in such proceedings by such defect or inaccuracy.
7 Notice of the accident shall give the approximate date
8 and place of the accident, if known, and may be given orally
9 or in writing.
10 (d) Every employer shall notify each injured employee
11 who has been granted compensation under the provisions of
12 Section 8 of this Act of his rights to rehabilitation
13 services and advise him of the locations of available public
14 rehabilitation centers and any other such services of which
15 the employer has knowledge.
16 In any case, other than one where the injury was caused
17 by exposure to radiological materials or equipment or
18 asbestos or the injury results from repetitive trauma, unless
19 the application for compensation is filed with the Commission
20 within 3 years after the date of the accident, where no
21 compensation has been paid, or within 2 years after the date
22 of the last payment of compensation, where any has been paid,
23 whichever shall be later, the right to file such application
24 shall be barred.
25 In any case of injury caused by exposure to radiological
26 materials or equipment or asbestos, unless application for
27 compensation is filed with the Commission within 25 years
28 after the last day that the employee was employed in an
29 environment of hazardous radiological activity or asbestos,
30 the right to file such application shall be barred.
31 If in any case except one where the injury was caused by
32 exposure to radiological materials or equipment or asbestos,
33 the accidental injury results in death application for
34 compensation for death may be filed with the Commission
-35- LRB9002213DJcd
1 within 3 years after the date of death where no compensation
2 has been paid or within 2 years after the date of the last
3 payment of compensation where any has been paid, whichever
4 shall be later, but not thereafter.
5 In any case of injury caused by repetitive trauma, unless
6 an application for compensation is filed with the Commission
7 within 3 years from the date of reasonable discovery or 2
8 years from the date of disablement, whichever is greater, the
9 right to file the application shall be barred.
10 If an accidental injury caused by exposure to
11 radiological material or equipment or asbestos results in
12 death within 25 years after the last day that the employee
13 was so exposed application for compensation for death may be
14 filed with the Commission within 3 years after the date of
15 death, where no compensation has been paid, or within 2 years
16 after the date of the last payment of compensation where any
17 has been paid, whichever shall be later, but not thereafter.
18 (e) Any contract or agreement made by any employer or
19 his agent or attorney with any employee or any other
20 beneficiary of any claim under the provisions of this Act
21 within 7 days after the injury shall be presumed to be
22 fraudulent.
23 (f) Any condition or impairment of health of an employee
24 employed as a firefighter, emergency medical technician (EMT)
25 or paramedic which results directly or indirectly from any
26 lung or respiratory disease or condition, heart or vascular
27 disease or condition, hypertension, tuberculosis or cancer
28 resulting in any disability (temporary, permanent, total or
29 partial) to the employee shall be conclusively presumed to
30 arise out of and in the course of the employee's
31 firefighting, EMT or paramedic employment and, further, shall
32 be conclusively presumed to be causally connected to the
33 hazards or exposures of such employment. This presumption
34 shall also apply to any hernia or hearing loss suffered by an
-36- LRB9002213DJcd
1 employee employed as a firefighter, EMT or paramedic.
2 However, this presumption shall not apply to any employee who
3 has been employed as a firefighter, EMT or paramedic for less
4 than 5 years at the time the condition or impairment is
5 discovered.
6 (Source: P.A. 84-981.)
7 (820 ILCS 305/7) (from Ch. 48, par. 138.7)
8 Sec. 7. The amount of compensation which shall be paid
9 for an accidental injury to the employee resulting in death
10 is:
11 (a) If the employee leaves surviving a widow, widower,
12 child or children, the applicable weekly compensation rate
13 computed in accordance with subparagraph 2 of paragraph (b)
14 of Section 8, shall be payable during the life of the widow
15 or widower and if any surviving child or children shall not
16 be physically or mentally incapacitated then until the death
17 of the widow or widower or until the youngest child shall
18 reach the age of 18, whichever shall come later; provided
19 that if such child or children shall be enrolled as a full
20 time student in any accredited educational institution, the
21 payments shall continue until such child has attained the age
22 of 25. In the event any surviving child or children shall be
23 physically or mentally incapacitated, the payments shall
24 continue for the duration of such incapacity.
25 The term "child" means a child whom the deceased employee
26 left surviving, including a posthumous child, a child legally
27 adopted, a child whom the deceased employee was legally
28 obligated to support or a child to whom the deceased employee
29 stood in loco parentis. The term "children" means the plural
30 of "child".
31 The term "physically or mentally incapacitated child or
32 children" means a child or children incapable of engaging in
33 regular and substantial gainful employment.
-37- LRB9002213DJcd
1 In the event of the remarriage of a widow or widower,
2 where the decedent did not leave surviving any child or
3 children who, at the time of such remarriage, are entitled to
4 compensation benefits under this Act, the surviving spouse
5 shall be paid a lump sum equal to 2 years compensation
6 benefits and all further rights of such widow or widower
7 shall be extinguished.
8 If the employee leaves surviving any child or children
9 under 18 years of age who at the time of death shall be
10 entitled to compensation under this paragraph (a) of this
11 Section, the weekly compensation payments herein provided for
12 such child or children shall in any event continue for a
13 period of not less than 6 years.
14 Any beneficiary entitled to compensation under this
15 paragraph (a) of this Section shall receive from the special
16 fund provided in paragraph (f) of this Section, in addition
17 to the compensation herein provided, supplemental benefits in
18 accordance with paragraph (g) of Section 8.
19 (b) If no compensation is payable under paragraph (a) of
20 this Section and the employee leaves surviving a parent or
21 parents who at the time of the accident were totally
22 dependent upon the earnings of the employee then weekly
23 payments equal to the compensation rate payable in the case
24 where the employee leaves surviving a widow or widower, shall
25 be paid to such parent or parents for the duration of their
26 lives, and in the event of the death of either, for the life
27 of the survivor.
28 (c) If no compensation is payable under paragraphs (a)
29 or (b) of this Section and the employee leaves surviving any
30 child or children who are not entitled to compensation under
31 the foregoing paragraph (a) but who at the time of the
32 accident were nevertheless in any manner dependent upon the
33 earnings of the employee, or leaves surviving a parent or
34 parents who at the time of the accident were partially
-38- LRB9002213DJcd
1 dependent upon the earnings of the employee, then there shall
2 be paid to such dependent or dependents for a period of 8
3 years weekly compensation payments at such proportion of the
4 applicable rate if the employee had left surviving a widow or
5 widower as such dependency bears to total dependency. In the
6 event of the death of any such beneficiary the share of such
7 beneficiary shall be divided equally among the surviving
8 beneficiaries and in the event of the death of the last such
9 beneficiary all the rights under this paragraph shall be
10 extinguished.
11 (d) If no compensation is payable under paragraphs (a),
12 (b) or (c) of this Section and the employee leaves surviving
13 any grandparent, grandparents, grandchild or grandchildren or
14 collateral heirs dependent upon the employee's earnings to
15 the extent of 50% or more of total dependency, then there
16 shall be paid to such dependent or dependents for a period of
17 5 years weekly compensation payments at such proportion of
18 the applicable rate if the employee had left surviving a
19 widow or widower as such dependency bears to total
20 dependency. In the event of the death of any such
21 beneficiary the share of such beneficiary shall be divided
22 equally among the surviving beneficiaries and in the event of
23 the death of the last such beneficiary all rights hereunder
24 shall be extinguished.
25 (e) The compensation to be paid for accidental injury
26 which results in death, as provided in this Section, shall be
27 paid to the persons who form the basis for determining the
28 amount of compensation to be paid by the employer, the
29 respective shares to be in the proportion of their respective
30 dependency at the time of the accident on the earnings of the
31 deceased. The Commission or an Arbitrator thereof may, in
32 its or his discretion, order or award the payment to the
33 parent or grandparent of a child for the latter's support the
34 amount of compensation which but for such order or award
-39- LRB9002213DJcd
1 would have been paid to such child as its share of the
2 compensation payable, which order or award may be modified
3 from time to time by the Commission in its discretion with
4 respect to the person to whom shall be paid the amount of the
5 order or award remaining unpaid at the time of the
6 modification.
7 The payments of compensation by the employer in
8 accordance with the order or award of the Commission
9 discharges such employer from all further obligation as to
10 such compensation.
11 (f) The sum of $4200 for burial expenses shall be paid
12 by the employer to the widow or widower, other dependent, or
13 to the estate of the employee next of kin or to the person or
14 persons incurring the expense of burial.
15 In the event the employer failed to provide necessary
16 first aid, medical, surgical or hospital service, he shall
17 pay the cost thereof to the person or persons entitled to
18 compensation under paragraphs (a), (b), (c) or (d) of this
19 Section, or to the person or persons incurring the obligation
20 therefore, or providing the same.
21 In no event shall the total amount of compensation to be
22 paid to the persons entitled to compensation under subsection
23 (a), (b), (c), or (d) of this Section be less than $50,000.
24 If there are no persons entitled to compensation under
25 subsections (a), (b), (c), or (d) of this Section, $50,000
26 shall be payable to the estate of the deceased employee in
27 addition to any other compensation under this Act to which he
28 or she may have been entitled at the time of his or her
29 death.
30 On January 15 and July 15, 1981, and on January 15 and
31 July 15 of each year thereafter the employer shall within 60
32 days pay a sum equal to 1/8 of 1% of all compensation
33 payments made by him after July 1, 1980, either under this
34 Act or the Workers' Occupational Diseases Act, whether by
-40- LRB9002213DJcd
1 lump sum settlement or weekly compensation payments, but not
2 including hospital, surgical or rehabilitation payments, made
3 during the first 6 months and during the second 6 months
4 respectively of the fiscal year next preceding the date of
5 the payments, into a special fund which shall be designated
6 the "Second Injury Fund", of which the State Treasurer is
7 ex-officio custodian, such special fund to be held and
8 disbursed for the purposes hereinafter stated in paragraphs
9 (f) and (g) of Section 8, either upon the order of the
10 Commission or of a competent court. Said special fund shall
11 be deposited the same as are State funds and any interest
12 accruing thereon shall be added thereto every 6 months. It
13 is subject to audit the same as State funds and accounts and
14 is protected by the General bond given by the State
15 Treasurer. It is considered always appropriated for the
16 purposes of disbursements as provided in Section 8, paragraph
17 (f), of this Act, and shall be paid out and disbursed as
18 therein provided and shall not at any time be appropriated or
19 diverted to any other use or purpose.
20 On January 15, 1991, the employer shall further pay a sum
21 equal to one half of 1% of all compensation payments made by
22 him from January 1, 1990 through June 30, 1990 either under
23 this Act or under the Workers' Occupational Diseases Act,
24 whether by lump sum settlement or weekly compensation
25 payments, but not including hospital, surgical or
26 rehabilitation payments, into an additional Special Fund
27 which shall be designated as the "Rate Adjustment Fund". On
28 March 15, 1991, the employer shall pay into the Rate
29 Adjustment Fund a sum equal to one half of 1% of all such
30 compensation payments made from July 1, 1990 through December
31 31, 1990. Within 60 days after July 15, 1991, the employer
32 shall pay into the Rate Adjustment Fund a sum equal to one
33 half of 1% of all such compensation payments made from
34 January 1, 1991 through June 30, 1991. Within 60 days after
-41- LRB9002213DJcd
1 January 15 of 1992 and each subsequent year through 1996, the
2 employer shall pay into the Rate Adjustment Fund a sum equal
3 to one half of 1% of all such compensation payments made in
4 the last 6 months of the preceding calendar year. Within 60
5 days after July 15 of 1992 and each subsequent year through
6 1995, the employer shall pay into the Rate Adjustment Fund a
7 sum equal to one half of 1% of all such compensation payments
8 made in the first 6 months of the same calendar year. Within
9 60 days after January 15 of 1997 and each subsequent year,
10 the employer shall pay into the Rate Adjustment Fund a sum
11 equal to three-fourths of 1% of all such compensation
12 payments made in the last 6 months of the preceding calendar
13 year. Within 60 days after July 15 of 1996 and each
14 subsequent year, the employer shall pay into the Rate
15 Adjustment Fund a sum equal to three-fourths of 1% of all
16 such compensation payments made in the first 6 months of the
17 same calendar year. The administrative costs of collecting
18 assessments from employers for the Rate Adjustment Fund shall
19 be paid from the Rate Adjustment Fund. The cost of an
20 actuarial audit of the Fund shall be paid from the Rate
21 Adjustment Fund and the audit shall be completed no later
22 than July 1, 1997. The State Treasurer is ex officio
23 custodian of such Special Fund and the same shall be held and
24 disbursed for the purposes hereinafter stated in paragraphs
25 (f) and (g) of Section 8 upon the order of the Commission or
26 of a competent court. The Rate Adjustment Fund shall be
27 deposited the same as are State funds and any interest
28 accruing thereon shall be added thereto every 6 months. It
29 shall be subject to audit the same as State funds and
30 accounts and shall be protected by the general bond given by
31 the State Treasurer. It is considered always appropriated
32 for the purposes of disbursements as provided in paragraphs
33 (f) and (g) of Section 8 of this Act and shall be paid out
34 and disbursed as therein provided and shall not at any time
-42- LRB9002213DJcd
1 be appropriated or diverted to any other use or purpose.
2 Within 5 days after the effective date of this amendatory Act
3 of 1990, the Comptroller and the State Treasurer shall
4 transfer $1,000,000 from the General Revenue Fund to the Rate
5 Adjustment Fund. By February 15, 1991, the Comptroller and
6 the State Treasurer shall transfer $1,000,000 from the Rate
7 Adjustment Fund to the General Revenue Fund. From the
8 effective date of this amendatory Act of 1993 to October 1,
9 1997, the Comptroller and Treasurer are authorized to make
10 transfers at the request of the Chairman up to a total of
11 $7,000,000 from the Second Injury Fund, the General Revenue
12 Fund, and the Workers' Compensation Benefit Trust Fund to the
13 Rate Adjustment Fund to the extent that there is insufficient
14 money in the Rate Adjustment Fund to pay claims and
15 obligations. Amounts may be transferred from the General
16 Revenue Fund only if the funds in the Second Injury Fund or
17 the Workers' Compensation Benefit Trust Fund are insufficient
18 to pay claims and obligations of the Rate Adjustment Fund.
19 All amounts transferred from the Second Injury Fund, the
20 General Revenue Fund, and the Workers' Compensation Benefit
21 Trust Fund shall be repaid from the Rate Adjustment Fund
22 within 270 days of a transfer, together with interest at the
23 rate earned by moneys on deposit in the Fund or Funds from
24 which the moneys were transferred.
25 Upon a finding by the Commission, after reasonable notice
26 and hearing, that any employer has willfully and knowingly
27 failed to pay the proper amounts into the Second Injury Fund
28 or the Rate Adjustment Fund required by this Section or if
29 such payments are not made within the time periods prescribed
30 by this Section, the employer shall, in addition to such
31 payments, pay a penalty of 20% of the amount required to be
32 paid or $2,500, whichever is greater, for each year or part
33 thereof of such failure to pay. This penalty shall only
34 apply to obligations of an employer to the Second Injury Fund
-43- LRB9002213DJcd
1 or the Rate Adjustment Fund accruing after the effective date
2 of this amendatory Act of 1989. All or part of such a penalty
3 may be waived by the Commission for good cause shown.
4 Any obligations of an employer to the Second Injury Fund
5 and Rate Adjustment Fund accruing prior to the effective date
6 of this amendatory Act of 1989 shall be paid in full by such
7 employer within 5 years of the effective date of this
8 amendatory Act of 1989, with at least one-fifth of such
9 obligation to be paid during each year following the
10 effective date of this amendatory Act of 1989. If the
11 Commission finds, following reasonable notice and hearing,
12 that an employer has failed to make timely payment of any
13 obligation accruing under the preceding sentence, the
14 employer shall, in addition to all other payments required by
15 this Section, be liable for a penalty equal to 20% of the
16 overdue obligation or $2,500, whichever is greater, for each
17 year or part thereof that obligation is overdue. All or part
18 of such a penalty may be waived by the Commission for good
19 cause shown.
20 The Chairman of the Industrial Commission shall,
21 annually, furnish to the Director of the Department of
22 Insurance a list of the amounts paid into the Second Injury
23 Fund and the Rate Adjustment Fund by each insurance company
24 on behalf of their insured employers. The Director shall
25 verify to the Chairman that the amounts paid by each
26 insurance company are accurate as best as the Director can
27 determine from the records available to the Director. The
28 Chairman shall verify that the amounts paid by each
29 self-insurer are accurate as best as the Chairman can
30 determine from records available to the Chairman. The
31 Chairman may require each self-insurer to provide information
32 concerning the total compensation payments made upon which
33 contributions to the Second Injury Fund and the Rate
34 Adjustment Fund are predicated and any additional information
-44- LRB9002213DJcd
1 establishing that such payments have been made into these
2 funds. Any deficiencies in payments noted by the Director or
3 Chairman shall be subject to the penalty provisions of this
4 Act.
5 The State Treasurer, or his duly authorized
6 representative, shall be named as a party to all proceedings
7 in all cases involving claim for the loss of, or the
8 permanent and complete loss of the use of one eye, one foot,
9 one leg, one arm or one hand.
10 The State Treasurer or his duly authorized agent shall
11 have the same rights as any other party to the proceeding,
12 including the right to petition for review of any award. The
13 reasonable expenses of litigation, such as medical
14 examinations, testimony, and transcript of evidence, incurred
15 by the State Treasurer or his duly authorized representative,
16 shall be borne by the Second Injury Fund.
17 If the award is not paid within 30 days after the date
18 the award has become final, the Commission shall proceed to
19 take judgment thereon in its own name as is provided for
20 other awards by paragraph (g) of Section 19 of this Act and
21 take the necessary steps to collect the award.
22 Any person, corporation or organization who has paid or
23 become liable for the payment of burial expenses of the
24 deceased employee may in his or its own name institute
25 proceedings before the Commission for the collection thereof.
26 For the purpose of administration, receipts and
27 disbursements, the Special Fund provided for in paragraph (f)
28 of this Section shall be administered jointly with the
29 Special Fund provided for in Section 7, paragraph (f) of the
30 Workers' Occupational Diseases Act.
31 (g) All compensation, except for burial expenses
32 provided in this Section to be paid in case accident results
33 in death, shall be paid in installments equal to the
34 percentage of the average earnings as provided for in Section
-45- LRB9002213DJcd
1 8, paragraph (b) of this Act, at the same intervals at which
2 the wages or earnings of the employees were paid. If this is
3 not feasible, then the installments shall be paid weekly.
4 Such compensation may be paid in a lump sum upon petition as
5 provided in Section 9 of this Act. However, in addition to
6 the benefits provided by Section 9 of this Act where
7 compensation for death is payable to the deceased's widow,
8 widower or to the deceased's widow, widower and one or more
9 children, and where a partial lump sum is applied for by such
10 beneficiary or beneficiaries within 18 months after the
11 deceased's death, the Commission may, in its discretion,
12 grant a partial lump sum of not to exceed 100 weeks of the
13 compensation capitalized at their present value upon the
14 basis of interest calculated at 3% per annum with annual
15 rests, upon a showing that such partial lump sum is for the
16 best interest of such beneficiary or beneficiaries.
17 (h) In case the injured employee is under 16 years of
18 age at the time of the accident and is illegally employed,
19 the amount of compensation payable under paragraphs (a), (b),
20 (c), (d) and (f) of this Section shall be increased 50%.
21 Nothing herein contained repeals or amends the provisions
22 of the Child Labor Law relating to the employment of minors
23 under the age of 16 years.
24 However, where an employer has on file an employment
25 certificate issued pursuant to the Child Labor Law or work
26 permit issued pursuant to the Federal Fair Labor Standards
27 Act, as amended, or a birth certificate properly and duly
28 issued, such certificate, permit or birth certificate is
29 conclusive evidence as to the age of the injured minor
30 employee for the purposes of this Section only.
31 (i) Whenever the dependents of a deceased employee are
32 aliens not residing in the United States, Mexico or Canada,
33 the amount of compensation payable is limited to the
34 beneficiaries described in paragraphs (a), (b) and (c) of
-46- LRB9002213DJcd
1 this Section and is 50% of the compensation provided in
2 paragraphs (a), (b) and (c) of this Section, except as
3 otherwise provided by treaty.
4 In a case where any of the persons who would be entitled
5 to compensation is living at any place outside of the United
6 States, then payment shall be made to the personal
7 representative of the deceased employee. The distribution by
8 such personal representative to the persons entitled shall be
9 made to such persons and in such manner as the Commission
10 orders.
11 (Source: P.A. 88-672, eff. 12-14-94; 89-470, eff. 6-13-96.)
12 (820 ILCS 305/8) (from Ch. 48, par. 138.8)
13 Sec. 8. The amount of compensation which shall be paid
14 to the employee for an accidental injury not resulting in
15 death is:
16 (a) The employer shall provide and pay for all the
17 necessary first aid, medical and surgical services, and all
18 necessary medical, surgical and hospital services thereafter
19 incurred, limited, however, to that which is reasonably
20 required to cure or relieve from the effects of the
21 accidental injury. The employer shall also pay for treatment,
22 instruction and training necessary for the physical, mental
23 and vocational rehabilitation of the employee, including all
24 maintenance costs and expenses incidental thereto. The
25 employee shall have the right to choose the providers of
26 treatment, instruction, and training necessary for his or her
27 physical, mental, and vocational rehabilitation, unless the
28 Commission finds the provider selected by the employee is
29 rendering improper or inadequate treatment, instruction or
30 training, in which case the Commission may order the employee
31 to select another provider. If as a result of the injury the
32 employee is unable to be self-sufficient the employer shall
33 further pay for such maintenance or institutional care as
-47- LRB9002213DJcd
1 shall be required. If an employee has sustained an accidental
2 injury and as a result becomes temporarily and totally
3 disabled from pursuing his or her usual and customary line of
4 work, the employer shall maintain such medical insurance as
5 the employee enjoyed when previously working for the
6 employer.
7 The employee may at any time elect to secure his own
8 physician, surgeon and hospital services at the employer's
9 expense, or,
10 Upon agreement between the employer and the employees, or
11 the employees' exclusive representative, and subject to the
12 approval of the Industrial Commission, the employer shall
13 maintain a list of physicians, to be known as a Panel of
14 Physicians, who are accessible to the employees. The employer
15 shall post this list in a place or places easily accessible
16 to his employees. The employee shall have the right to make
17 an alternative choice of physician from such Panel if he is
18 not satisfied with the physician first selected. If, due to
19 the nature of the injury or its occurrence away from the
20 employer's place of business, the employee is unable to make
21 a selection from the Panel, the selection process from the
22 Panel shall not apply. The physician selected from the Panel
23 may arrange for any consultation, referral or other
24 specialized medical services outside the Panel at the
25 employer's expense. Provided that, in the event the
26 Commission shall find that a doctor selected by the employee
27 is rendering improper or inadequate care, the Commission may
28 order the employee to select another doctor certified or
29 qualified in the medical field for which treatment is
30 required. If the employee refuses to make such change the
31 Commission may relieve the employer of his obligation to pay
32 the doctor's charges from the date of refusal to the date of
33 compliance.
34 Every hospital, physician, surgeon or other person
-48- LRB9002213DJcd
1 rendering treatment or services in accordance with the
2 provisions of this Section shall upon written request furnish
3 full and complete reports thereof to, and permit their
4 records to be copied by, the employer, the employee or his
5 dependents, as the case may be, or any other party to any
6 proceeding for compensation before the Commission, or their
7 attorneys.
8 Notwithstanding the foregoing, the employer's liability
9 to pay for such medical services selected by the employee
10 shall be limited to:
11 (1) all first aid and emergency treatment; plus
12 (2) all medical, surgical and hospital services
13 provided by the physician, surgeon or hospital initially
14 chosen by the employee or by any other physician,
15 consultant, expert, institution or other provider of
16 services recommended by said initial service provider or
17 any subsequent provider of medical services in the chain
18 of referrals from said initial service provider; plus
19 (3) all medical, surgical and hospital services
20 provided by any second physician, surgeon or hospital
21 subsequently chosen by the employee or by any other
22 physician, consultant, expert, institution or other
23 provider of services recommended by said second service
24 provider or any subsequent provider of medical services
25 in the chain of referrals from said second service
26 provider. Thereafter the employer shall select and pay
27 for all necessary medical, surgical and hospital
28 treatment and the employee may not select a provider of
29 medical services at the employer's expense unless the
30 employer agrees to such selection. At any time the
31 employee may obtain any medical treatment he desires at
32 his own expense. This paragraph shall not affect the duty
33 to pay for rehabilitation referred to above.
34 When an employer and employee so agree in writing,
-49- LRB9002213DJcd
1 nothing in this Act prevents an employee whose injury or
2 disability has been established under this Act, from relying
3 in good faith, on treatment by prayer or spiritual means
4 alone, in accordance with the tenets and practice of a
5 recognized church or religious denomination, by a duly
6 accredited practitioner thereof, and having nursing services
7 appropriate therewith, without suffering loss or diminution
8 of the compensation benefits under this Act. However, the
9 employee shall submit to all physical examinations required
10 by this Act. The cost of such treatment and nursing care
11 shall be paid by the employee unless the employer agrees to
12 make such payment.
13 Where the accidental injury results in the amputation of
14 an arm, hand, leg or foot, or the enucleation of an eye, or
15 the loss of any of the natural teeth, the employer shall
16 furnish an artificial of any such members lost or damaged in
17 accidental injury arising out of and in the course of
18 employment, and shall also furnish the necessary braces in
19 all proper and necessary cases. In cases of the loss of a
20 member or members by amputation, the employer shall, whenever
21 necessary, maintain in good repair, refit or replace the
22 artificial limbs during the lifetime of the employee. Where
23 the accidental injury accompanied by physical injury results
24 in damage to a denture, eye glasses or contact eye lenses, or
25 where the accidental injury results in damage to an
26 artificial member, the employer shall replace or repair such
27 denture, glasses, lenses, or artificial member.
28 The furnishing by the employer of any such services or
29 appliances is not an admission of liability on the part of
30 the employer to pay compensation.
31 The furnishing of any such services or appliances or the
32 servicing thereof by the employer is not the payment of
33 compensation.
34 (b) If the period of temporary total incapacity for work
-50- LRB9002213DJcd
1 lasts more than 3 working days, weekly compensation as
2 hereinafter provided shall be paid beginning on the 4th day
3 of such temporary total incapacity and continuing as long as
4 the total temporary incapacity lasts. In cases where the
5 temporary total incapacity for work continues for a period of
6 14 days or more from the day of the accident compensation
7 shall commence on the day after the accident.
8 If the employee is receiving benefits awarded for
9 temporary total incapacity, the employer shall not, except in
10 cases where the employee has actually returned to gainful
11 employment, discontinue the payment of those benefits unless
12 so ordered by the Industrial Commission or an arbitrator
13 thereof pursuant to subsection (e) of Section 19. Temporary
14 total disability benefits may be terminated by the arbitrator
15 or the Commission only if the employee refuses to accept
16 suitable work offered to him or her by any employer which the
17 employee has the capacity to perform. Temporary total
18 disability benefits are payable under this Section even after
19 the issuance of an award or decision of permanent disability
20 under this Section. The payment of temporary total
21 disability benefits due to periods of temporary total
22 incapacity for work that occur as a result of a work-related
23 injury after the issuance of an award or decision shall be
24 secured in accordance with subsection (h) of Section 19 of
25 this Act.
26 Capacity to perform work shall be determined in the same
27 manner as for individuals who come under the provisions of
28 subsection (d) of this Section. In determining whether work
29 is suitable for an individual, consideration shall be given
30 to the degree of risk involved to his or her health, safety,
31 and morals, his or her physical fitness and prior training,
32 his or her experience and prior earnings, his or her length
33 of employment and prospects for securing local work in his or
34 her customary occupation, the stability of the local labor
-51- LRB9002213DJcd
1 market for performance of services substantially similar to
2 those to be performed in the work offered, and the distance
3 of available work from his or her residence.
4 1. The compensation rate for temporary total
5 incapacity under this paragraph (b) of this Section shall
6 be equal to 66 2/3% of the employee's average weekly wage
7 computed in accordance with Section 10, provided that it
8 shall be not less than the following amounts in the
9 following cases:
10 $100.90 in case of a single person;
11 $105.50 in case of a married person with no
12 children;
13 $108.30 in case of one child;
14 $113.40 in case of 2 children;
15 $117.40 in case of 3 children;
16 $124.30 in case of 4 or more children;
17 nor exceed the employee's average weekly wage computed in
18 accordance with the provisions of Section 10, whichever
19 is less.
20 2. The compensation rate in all cases other than
21 for temporary total disability under this paragraph (b),
22 and other than for serious and permanent disfigurement
23 under paragraph (c) and other than for permanent partial
24 disability under subparagraph (2) of paragraph (d) or
25 under paragraph (e), of this Section shall be equal to 66
26 2/3% of the employee's average weekly wage computed in
27 accordance with the provisions of Section 10, provided
28 that it shall be not less than the following amounts in
29 the following cases:
30 $80.90 in case of a single person;
31 $83.20 in case of a married person with no
32 children;
33 $86.10 in case of one child;
34 $88.90 in case of 2 children;
-52- LRB9002213DJcd
1 $91.80 in case of 3 children;
2 $96.90 in case of 4 or more children;
3 nor exceed the employee's average weekly wage computed in
4 accordance with the provisions of Section 10, whichever
5 is less.
6 2.1. The compensation rate in all cases of serious
7 and permanent disfigurement under paragraph (c) and of
8 permanent partial disability under subparagraph (2) of
9 paragraph (d) or under paragraph (e) of this Section
10 shall be equal to 60% of the employee's average weekly
11 wage computed in accordance with the provisions of
12 Section 10, provided that it shall be not less than the
13 following amounts in the following cases:
14 $80.90 in case of a single person;
15 $83.20 in case of a married person with no
16 children;
17 $86.10 in case of one child;
18 $88.90 in case of 2 children;
19 $91.80 in case of 3 children;
20 $96.90 in case of 4 or more children;
21 nor exceed the employee's average weekly wage computed in
22 accordance with the provisions of Section 10, whichever
23 is less.
24 3. As used in this Section the term "child" means a
25 child of the employee including any child legally adopted
26 before the accident or whom at the time of the accident
27 the employee was under legal obligation to support or to
28 whom the employee stood in loco parentis, and who at the
29 time of the accident was under 18 years of age and not
30 emancipated. The term "children" means the plural of
31 "child".
32 4. All weekly compensation rates provided under
33 subparagraphs 1, 2 and 2.1 of this paragraph (b) of this
34 Section shall be subject to the following limitations:
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1 The maximum weekly compensation rate from July 1,
2 1975, except as hereinafter provided, shall be 100% of
3 the State's average weekly wage in covered industries
4 under the Unemployment Insurance Act, that being the wage
5 that most closely approximates the State's average weekly
6 wage.
7 The maximum weekly compensation rate, for the period
8 July 1, 1984, through June 30, 1987, except as
9 hereinafter provided, shall be $293.61. Effective July 1,
10 1987 and on July 1 of each year thereafter the maximum
11 weekly compensation rate, except as hereinafter provided,
12 shall be determined as follows: if during the preceding
13 12 month period there shall have been an increase in the
14 State's average weekly wage in covered industries under
15 the Unemployment Insurance Act, the weekly compensation
16 rate shall be proportionately increased by the same
17 percentage as the percentage of increase in the State's
18 average weekly wage in covered industries under the
19 Unemployment Insurance Act during such period.
20 The maximum weekly compensation rate, for the period
21 January 1, 1981 through December 31, 1983, except as
22 hereinafter provided, shall be 100% of the State's
23 average weekly wage in covered industries under the
24 Unemployment Insurance Act in effect on January 1, 1981.
25 Effective January 1, 1984 and on January 1, of each year
26 thereafter the maximum weekly compensation rate, except
27 as hereinafter provided, shall be determined as follows:
28 if during the preceding 12 month period there shall have
29 been an increase in the State's average weekly wage in
30 covered industries under the Unemployment Insurance Act,
31 the weekly compensation rate shall be proportionately
32 increased by the same percentage as the percentage of
33 increase in the State's average weekly wage in covered
34 industries under the Unemployment Insurance Act during
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1 such period.
2 From July 1, 1977 and thereafter such maximum weekly
3 compensation rate in death cases under Section 7, and
4 permanent total disability cases under paragraph (f) or
5 subparagraph 18 of paragraph (3) of this Section and for
6 temporary total disability under paragraph (b) of this
7 Section and for amputation of a member or enucleation of
8 an eye under paragraph (e) of this Section shall be
9 increased to 133-1/3% of the State's average weekly wage
10 in covered industries under the Unemployment Insurance
11 Act.
12 4.1. Any provision herein to the contrary
13 notwithstanding, the weekly compensation rate for
14 compensation payments under subparagraph 18 of paragraph
15 (e) of this Section and under paragraph (f) of this
16 Section and under paragraph (a) of Section 7, shall in no
17 event be less than 50% of the State's average weekly wage
18 in covered industries under the Unemployment Insurance
19 Act.
20 4.2. Any provision to the contrary notwithstanding,
21 the total compensation payable under Section 7 shall not
22 exceed the greater of $250,000 or 20 years.
23 5. For the purpose of this Section this State's
24 average weekly wage in covered industries under the
25 Unemployment Insurance Act on July 1, 1975 is hereby
26 fixed at $228.16 per week and the computation of
27 compensation rates shall be based on the aforesaid
28 average weekly wage until modified as hereinafter
29 provided.
30 6. The Department of Employment Security of the
31 State shall on or before the first day of December, 1977,
32 and on or before the first day of June, 1978, and on the
33 first day of each December and June of each year
34 thereafter, publish the State's average weekly wage in
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1 covered industries under the Unemployment Insurance Act
2 and the Industrial Commission shall on the 15th day of
3 January, 1978 and on the 15th day of July, 1978 and on
4 the 15th day of each January and July of each year
5 thereafter, post and publish the State's average weekly
6 wage in covered industries under the Unemployment
7 Insurance Act as last determined and published by the
8 Department of Employment Security. The amount when so
9 posted and published shall be conclusive and shall be
10 applicable as the basis of computation of compensation
11 rates until the next posting and publication as
12 aforesaid.
13 7. The payment of compensation by an employer or
14 his insurance carrier to an injured employee shall not
15 constitute an admission of the employer's liability to
16 pay compensation.
17 (c) For any serious and permanent disfigurement to the
18 hand, head, face, neck, arm, leg below the knee or the chest
19 above the axillary line, the employee is entitled to
20 compensation for such disfigurement, the amount determined by
21 agreement at any time or by arbitration under this Act, at a
22 hearing not less than 6 months after the date of the
23 accidental injury, which amount shall not exceed 150 weeks at
24 the applicable rate provided in subparagraph 2.1 of paragraph
25 (b) of this Section.
26 No compensation is payable under this paragraph where
27 compensation is payable under paragraphs (d), (e) or (f) of
28 this Section.
29 A duly appointed member of a fire department in a city,
30 the population of which exceeds 200,000 according to the last
31 federal or State census, is eligible for compensation under
32 this paragraph only where such serious and permanent
33 disfigurement results from burns.
34 (d) 1. If, after the accidental injury has been
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1 sustained, the employee as a result thereof becomes partially
2 incapacitated from pursuing his usual and customary line of
3 employment, he shall, until such time as the employee elects
4 to proceed to hearing and makes an election to pursue
5 compensation except in cases compensated under the specific
6 schedule set forth in paragraph (e) of this Section, receive
7 compensation for the duration of his disability, subject to
8 the limitations as to maximum amounts fixed in paragraph (b)
9 of this Section, equal to 66-2/3% of the difference between
10 the average amount which he would be able to earn in the full
11 performance of his duties in the occupation in which he was
12 engaged at the time of the accident and the average amount
13 which he is earning or is able to earn in some suitable
14 employment or business after the accident.
15 2. If, as a result of the accident, the employee
16 sustains serious and permanent injuries not covered by
17 paragraphs (c) and (e) of this Section or having sustained
18 injuries covered by the aforesaid paragraphs (c) and (e), he
19 shall have sustained in addition thereto other injuries which
20 injuries do not incapacitate him from pursuing the duties of
21 his employment but which would disable him from pursuing
22 other suitable occupations, or which have otherwise resulted
23 in physical impairment; or if such injuries partially
24 incapacitate him from pursuing the duties of his usual and
25 customary line of employment but do not result in an
26 impairment of earning capacity, or having resulted in an
27 impairment of earning capacity, the employee elects to waive
28 his right to recover under the foregoing subparagraph