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91_SB1039
LRB9105522WHdv
1 AN ACT to amend certain Acts in relation to injured and
2 disabled workers.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Workers' Compensation Act is amended by
6 changing Section 4 as follows:
7 (820 ILCS 305/4) (from Ch. 48, par. 138.4)
8 Sec. 4. (a) Any employer who shall come within the
9 provisions of Section 3 of this Act, and any other employer
10 who shall elect to provide and pay the compensation provided
11 for in this Act shall:
12 (1) File with the Commission annually an
13 application for approval as a self-insurer which shall
14 include a current financial statement, and annually,
15 thereafter, an application for renewal of self-insurance,
16 which shall include a current financial statement. Said
17 application and financial statement shall be signed and
18 sworn to by the president or vice president and secretary
19 or assistant secretary of the employer if it be a
20 corporation, or by all of the partners, if it be a
21 copartnership, or by the owner if it be neither a
22 copartnership nor a corporation. All initial applications
23 and all applications for renewal of self-insurance must
24 be submitted at least 60 days prior to the requested
25 effective date of self-insurance.
26 If the sworn application and financial statement of
27 any such employer does not satisfy the Commission of the
28 financial ability of the employer who has filed it, the
29 Commission shall require such employer to,
30 (2) Furnish security, indemnity or a bond
31 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
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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, and
6 (5) Upon becoming subject to this Act and
7 thereafter as often as the Commission may in writing
8 demand, file with the Commission in form prescribed by it
9 evidence of his or her compliance with the provision of
10 this Section.
11 As an alternative to the other requirements of this
12 subsection (a), an employer, other than a unit of local
13 government, may elect coverage under this Act and retain the
14 benefit of the exclusiveness of liability provided in Section
15 5 by obtaining a 24-hour health insurance policy from an
16 authorized insurance carrier, or by participating in a fully
17 or partially self-insured 24-hour health plan that is
18 established or maintained by or for 2 or more employers, so
19 long as the law of this State is not preempted by the
20 Employee Retirement Income Security Act of 1974, Pub. L. No.
21 93-406, or any amendment to that law. The policy or plan
22 must provide, for at least occupational injuries and
23 illnesses, medical benefits that are comparable to those
24 required by this Act. A unit of local government, as a
25 single employer, may participate in the 24-hour health
26 insurance coverage plan. Notice of election of the policy or
27 plan must be given to current employees 90 days before the
28 policy or plan takes effect, and pre-employment notice of
29 election of the policy or plan must be given to all new
30 employees. Disputes and remedies arising under 24-hour health
31 insurance policies are governed by the terms and conditions
32 of the policies and under the applicable provisions of the
33 Illinois Insurance Code and rules adopted under that Code and
34 other applicable laws of this State; however, notwithstanding
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1 any other provision of law, disputes shall be heard and
2 remedies shall be granted or denied by the circuit court
3 rather than the Industrial Commission. The 24-hour health
4 insurance policy may provide for health care by a health
5 maintenance organization or a preferred provider
6 organization. The premium for the 24-hour health insurance
7 policy shall be paid entirely by the employer. The 24-hour
8 health insurance policy may use deductibles and coinsurance
9 provisions that require the employee to pay a portion of the
10 actual medical care received by the employee. If an employer
11 obtains a 24-hour health insurance policy or self-insured
12 plan to secure payment of compensation as to medical
13 benefits, the employer must also obtain an insurance policy
14 or policies that provide indemnity benefits as follows:
15 (i) If indemnity benefits are provided only
16 for occupational-related disability, the benefits
17 must be comparable to those required by this Act.
18 (ii) If indemnity benefits are provided for
19 both occupational-related and
20 nonoccupational-related disability, the benefits
21 must be comparable to those required by this Act.
22 (iii) The employer shall provide for each of
23 its employees life insurance with a death benefit of
24 $100,000 and with dismemberment benefits that are
25 comparable to those provided under this Act.
26 (iv) Policies providing coverage must use
27 prescribed and acceptable underwriting standards,
28 forms, and policies approved by the Department of
29 Insurance. Disability benefits must be certified by
30 the Department of Insurance as being actuarially
31 equivalent to the benefits that would otherwise be
32 available under this Act. The Department of
33 Insurance shall require proof of solvency or
34 adequate bonding for all coverage. If any insurance
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1 policy that provides coverage is canceled,
2 terminated, or nonrenewed for any reason, the
3 cancellation, termination, or nonrenewal is
4 ineffective until the self-insured employer or
5 insurance carrier or carriers notify the Commission
6 and the Department of Insurance of the cancellation,
7 termination, or nonrenewal, and until the Commission
8 has actually received the notification. The
9 Commission must be notified of replacement coverage
10 under a workers' compensation and employer's
11 liability insurance policy or plan by the employer
12 before the effective date of the cancellation,
13 termination, or nonrenewal.
14 (a-1) Regardless of its state of domicile or its
15 principal place of business, an employer shall make payments
16 to its insurance carrier or group self-insurance fund, where
17 applicable, based upon the premium rates of the situs where
18 the work or project is located in Illinois if:
19 (A) the employer is engaged primarily in the
20 building and construction industry; and
21 (B) subdivision (a)(3) of this Section applies to
22 the employer or the employer is a member of a group
23 self-insurance plan as defined in subsection (1) of
24 Section 4a.
25 The Industrial Commission shall impose a penalty upon an
26 employer for violation of this subsection (a-1) if:
27 (i) the employer is given an opportunity at a
28 hearing to present evidence of its compliance with this
29 subsection (a-1); and
30 (ii) after the hearing, the Commission finds that
31 the employer failed to make payments upon the premium
32 rates of the situs where the work or project is located
33 in Illinois.
34 The penalty shall not exceed $1,000 for each day of work
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1 for which the employer failed to make payments upon the
2 premium rates of the situs where the work or project is
3 located in Illinois, but the total penalty shall not exceed
4 $50,000 for each project or each contract under which the
5 work was performed.
6 Any penalty under this subsection (a-1) must be imposed
7 not later than one year after the expiration of the
8 applicable limitation period specified in subsection (d) of
9 Section 6 of this Act. Penalties imposed under this
10 subsection (a-1) shall be deposited into the Industrial
11 Commission Operations Fund, a special fund that is created
12 in the State treasury. Subject to appropriation, moneys in
13 the Fund shall be used solely for the operations of the
14 Industrial Commission.
15 (b) The sworn application and financial statement, or
16 security, indemnity or bond, or amount of insurance, or other
17 provisions, filed, furnished, carried, or made by the
18 employer, as the case may be, shall be subject to the
19 approval of the Commission.
20 Deposits under escrow agreements shall be cash,
21 negotiable United States government bonds or negotiable
22 general obligation bonds of the State of Illinois. Such cash
23 or bonds shall be deposited in escrow with any State or
24 National Bank or Trust Company having trust authority in the
25 State of Illinois.
26 Upon the approval of the sworn application and financial
27 statement, security, indemnity or bond or amount of
28 insurance, filed, furnished or carried, as the case may be,
29 the Commission shall send to the employer written notice of
30 its approval thereof. The certificate of compliance by the
31 employer with the provisions of subparagraphs (2) and (3) of
32 paragraph (a) of this Section shall be delivered by the
33 insurance carrier to the Industrial Commission within five
34 days after the effective date of the policy so certified.
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1 The insurance so certified shall cover all compensation
2 liability occurring during the time that the insurance is in
3 effect and no further certificate need be filed in case such
4 insurance is renewed, extended or otherwise continued by such
5 carrier. The insurance so certified shall not be cancelled
6 or in the event that such insurance is not renewed, extended
7 or otherwise continued, such insurance shall not be
8 terminated until at least 10 days after receipt by the
9 Industrial Commission of notice of the cancellation or
10 termination of said insurance; provided, however, that if the
11 employer has secured insurance from another insurance
12 carrier, or has otherwise secured the payment of compensation
13 in accordance with this Section, and such insurance or other
14 security becomes effective prior to the expiration of the 10
15 days, cancellation or termination may, at the option of the
16 insurance carrier indicated in such notice, be effective as
17 of the effective date of such other insurance or security.
18 (c) Whenever the Commission shall find that any
19 corporation, company, association, aggregation of
20 individuals, reciprocal or interinsurers exchange, or other
21 insurer effecting workers' compensation insurance in this
22 State shall be insolvent, financially unsound, or unable to
23 fully meet all payments and liabilities assumed or to be
24 assumed for compensation insurance in this State, or shall
25 practice a policy of delay or unfairness toward employees in
26 the adjustment, settlement, or payment of benefits due such
27 employees, the Commission may after reasonable notice and
28 hearing order and direct that such corporation, company,
29 association, aggregation of individuals, reciprocal or
30 interinsurers exchange, or insurer, shall from and after a
31 date fixed in such order discontinue the writing of any such
32 workers' compensation insurance in this State. Subject to
33 such modification of the order as the Commission may later
34 make on review of the order, as herein provided, it shall
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1 thereupon be unlawful for any such corporation, company,
2 association, aggregation of individuals, reciprocal or
3 interinsurers exchange, or insurer to effect any workers'
4 compensation insurance in this State. A copy of the order
5 shall be served upon the Director of Insurance by registered
6 mail. Whenever the Commission finds that any service or
7 adjustment company used or employed by a self-insured
8 employer or by an insurance carrier to process, adjust,
9 investigate, compromise or otherwise handle claims under this
10 Act, has practiced or is practicing a policy of delay or
11 unfairness toward employees in the adjustment, settlement or
12 payment of benefits due such employees, the Commission may
13 after reasonable notice and hearing order and direct that
14 such service or adjustment company shall from and after a
15 date fixed in such order be prohibited from processing,
16 adjusting, investigating, compromising or otherwise handling
17 claims under this Act.
18 Whenever the Commission finds that any self-insured
19 employer has practiced or is practicing delay or unfairness
20 toward employees in the adjustment, settlement or payment of
21 benefits due such employees, the Commission may, after
22 reasonable notice and hearing, order and direct that after a
23 date fixed in the order such self-insured employer shall be
24 disqualified to operate as a self-insurer and shall be
25 required to insure his entire liability to pay compensation
26 in some insurance carrier authorized, licensed and permitted
27 to do such insurance business in this State, as provided in
28 subparagraph 3 of paragraph (a) of this Section.
29 All orders made by the Commission under this Section
30 shall be subject to review by the courts, said review to be
31 taken in the same manner and within the same time as provided
32 by Section 19 of this Act for review of awards and decisions
33 of the Commission, upon the party seeking the review filing
34 with the clerk of the court to which said review is taken a
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1 bond in an amount to be fixed and approved by the court to
2 which the review is taken, conditioned upon the payment of
3 all compensation awarded against the person taking said
4 review pending a decision thereof and further conditioned
5 upon such other obligations as the court may impose. Upon
6 the review the Circuit Court shall have power to review all
7 questions of fact as well as of law. The penalty hereinafter
8 provided for in this paragraph shall not attach and shall not
9 begin to run until the final determination of the order of
10 the Commission.
11 (d) Upon a finding by the Commission, after reasonable
12 notice and hearing, of the knowing and wilful failure of an
13 employer to comply with any of the provisions of paragraph
14 (a) of this Section or the failure or refusal of an employer,
15 service or adjustment company, or an insurance carrier to
16 comply with any order of the Industrial Commission pursuant
17 to paragraph (c) of this Section disqualifying him or her to
18 operate as a self insurer and requiring him or her to insure
19 his or her liability, the Commission may assess a civil
20 penalty of up to $500 per day for each day of such failure or
21 refusal after the effective date of this amendatory Act of
22 1989. Each day of such failure or refusal shall constitute a
23 separate offense.
24 Upon the failure or refusal of any employer, service or
25 adjustment company or insurance carrier to comply with the
26 provisions of this Section and with the orders of the
27 Commission under this Section, or the order of the court on
28 review after final adjudication, the Commission may bring a
29 civil action to recover the amount of the penalty in Cook
30 County or in Sangamon County in which litigation the
31 Commission shall be represented by the Attorney General. The
32 Commission shall send notice of its finding of non-compliance
33 and assessment of the civil penalty to the Attorney General.
34 It shall be the duty of the Attorney General within 30 days
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1 after receipt of the notice, to institute prosecutions and
2 promptly prosecute all reported violations of this Section.
3 (e) This Act shall not affect or disturb the continuance
4 of any existing insurance, mutual aid, benefit, or relief
5 association or department, whether maintained in whole or in
6 part by the employer or whether maintained by the employees,
7 the payment of benefits of such association or department
8 being guaranteed by the employer or by some person, firm or
9 corporation for him or her: Provided, the employer
10 contributes to such association or department an amount not
11 less than the full compensation herein provided, exclusive of
12 the cost of the maintenance of such association or department
13 and without any expense to the employee. This Act shall not
14 prevent the organization and maintaining under the insurance
15 laws of this State of any benefit or insurance company for
16 the purpose of insuring against the compensation provided for
17 in this Act, the expense of which is maintained by the
18 employer. This Act shall not prevent the organization or
19 maintaining under the insurance laws of this State of any
20 voluntary mutual aid, benefit or relief association among
21 employees for the payment of additional accident or sick
22 benefits.
23 (f) No existing insurance, mutual aid, benefit or relief
24 association or department shall, by reason of anything herein
25 contained, be authorized to discontinue its operation without
26 first discharging its obligations to any and all persons
27 carrying insurance in the same or entitled to relief or
28 benefits therein.
29 (g) Any contract, oral, written or implied, of
30 employment providing for relief benefit, or insurance or any
31 other device whereby the employee is required to pay any
32 premium or premiums for insurance against the compensation
33 provided for in this Act shall be null and void. Any
34 employer withholding from the wages of any employee any
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1 amount for the purpose of paying any such premium shall be
2 guilty of a Class B misdemeanor.
3 In the event the employer does not pay the compensation
4 for which he or she is liable, then an insurance company,
5 association or insurer which may have insured such employer
6 against such liability shall become primarily liable to pay
7 to the employee, his or her personal representative or
8 beneficiary the compensation required by the provisions of
9 this Act to be paid by such employer. The insurance carrier
10 may be made a party to the proceedings in which the employer
11 is a party and an award may be entered jointly against the
12 employer and the insurance carrier.
13 (h) It shall be unlawful for any employer, insurance
14 company or service or adjustment company to interfere with,
15 restrain or coerce an employee in any manner whatsoever in
16 the exercise of the rights or remedies granted to him or her
17 by this Act or to discriminate, attempt to discriminate, or
18 threaten to discriminate against an employee in any way
19 because of his or her exercise of the rights or remedies
20 granted to him or her by this Act.
21 It shall be unlawful for any employer, individually or
22 through any insurance company or service or adjustment
23 company, to discharge or to threaten to discharge, or to
24 refuse to rehire or recall to active service in a suitable
25 capacity an employee because of the exercise of his or her
26 rights or remedies granted to him or her by this Act.
27 (i) If an employer elects to obtain a life insurance
28 policy on his employees, he may also elect to apply such
29 benefits in satisfaction of all or a portion of the death
30 benefits payable under this Act, in which case, the
31 employer's compensation premium shall be reduced accordingly.
32 (j) Within 45 days of receipt of an initial application
33 or application to renew self-insurance privileges the
34 Self-Insurers Advisory Board shall review and submit for
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1 approval by the Chairman of the Commission recommendations of
2 disposition of all initial applications to self-insure and
3 all applications to renew self-insurance privileges filed by
4 private self-insurers pursuant to the provisions of this
5 Section and Section 4a-9 of this Act. Each private
6 self-insurer shall submit with its initial and renewal
7 applications the application fee required by Section 4a-4 of
8 this Act.
9 The Chairman of the Commission shall promptly act upon
10 all initial applications and applications for renewal in full
11 accordance with the recommendations of the Board or, should
12 the Chairman disagree with any recommendation of disposition
13 of the Self-Insurer's Advisory Board, he shall within 30 days
14 of receipt of such recommendation provide to the Board in
15 writing the reasons supporting his decision. The Chairman
16 shall also promptly notify the employer of his decision
17 within 15 days of receipt of the recommendation of the Board.
18 If an employer is denied a renewal of self-insurance
19 privileges pursuant to application it shall retain said
20 privilege for 120 days after receipt of a notice of
21 cancellation of the privilege from the Chairman of the
22 Commission.
23 All orders made by the Chairman under this Section shall
24 be subject to review by the courts, such review to be taken
25 in the same manner and within the same time as provided by
26 subsection (f) of Section 19 of this Act for review of awards
27 and decisions of the Commission, upon the party seeking the
28 review filing with the clerk of the court to which such
29 review is taken a bond in an amount to be fixed and approved
30 by the court to which the review is taken, conditioned upon
31 the payment of all compensation awarded against the person
32 taking such review pending a decision thereof and further
33 conditioned upon such other obligations as the court may
34 impose. Upon the review the Circuit Court shall have power
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1 to review all questions of fact as well as of law.
2 (Source: P.A. 90-109, eff. 1-1-98.)
3 Section 10. The Workers' Occupational Diseases Act is
4 amended by changing Section 4 as follows:
5 (820 ILCS 310/4) (from Ch. 48, par. 172.39)
6 Sec. 4. (a) Any employer required by the terms of this
7 Act or by election to pay the compensation provided for in
8 this Act shall:
9 (1) File with the Commission an application for
10 approval as a self-insurer which shall include a current
11 financial statement. The application and financial
12 statement shall be signed and sworn to by the president
13 or vice-president and secretary or assistant secretary of
14 the employer if it be a corporation, or by all of the
15 partners if it be a copartnership, or by the owner if it
16 be neither a copartnership nor a corporation.
17 If the sworn application and financial statement of
18 any such employer does not satisfy the Commission of the
19 financial ability of the employer who has filed it, the
20 Commission shall require such employer to:
21 (2) Furnish security, indemnity or a bond
22 guaranteeing the payment by the employer of the
23 compensation provided for in this Act, provided that any
24 such employer who shall have secured his or her liability
25 in part by excess liability coverage shall be required to
26 furnish to the Commission security, indemnity or bond
27 guaranteeing his or her payment up to the amount of the
28 effective limits of the excess coverage in accordance
29 with the provisions of this paragraph, or
30 (3) Insure his or her entire liability to pay such
31 compensation in some insurance carrier authorized,
32 licensed or permitted to do such insurance business in
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1 this State. All policies of such insurance carriers
2 insuring the payment of compensation under this Act shall
3 cover all the employees and all such employer's
4 compensation liability in all cases in which the last day
5 of the last exposure to the occupational disease involved
6 is within the effective period of the policy, anything to
7 the contrary in the policy notwithstanding. Provided,
8 however, that any employer may insure his or her
9 compensation liability under this Act with 2 or more
10 insurance carriers or may insure a part and qualify under
11 Subsection 1, 2, or 4 for the remainder of his liability
12 to pay such compensation, subject to the following two
13 provisions:
14 Firstly, the entire liability of the employer
15 to employees working at or from one location shall
16 be insured in one such insurance carrier or shall be
17 self-insured.
18 Secondly, the employer shall submit evidence
19 satisfactory to the Commission that his or her
20 entire liability for the compensation provided for
21 in this Act will be secured.
22 Any provision in a policy or in any endorsement
23 attached thereto attempting to limit or modify in any way
24 the liability of the insurance carrier issuing the same,
25 except as otherwise provided herein, shall be wholly
26 void.
27 The insurance or security in force to cover
28 compensation liability under this Act shall be separate
29 and distinct from the insurance or security under the
30 "Workers' Compensation Act" and any insurance contract
31 covering liability under either Act need not cover any
32 liability under the other. Nothing herein contained
33 shall apply to policies of excess liability carriage
34 secured by employers who have been approved by the
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1 Commission as self-insurers, or
2 (4) Make some other provision, satisfactory to the
3 Commission, for the securing of the payment of
4 compensation provided for in this Act, and
5 (5) Upon becoming subject to this Act and
6 thereafter as often as the Commission may in writing
7 demand, file with the Commission in form prescribed by it
8 evidence of his or her compliance with the provision of
9 this Section.
10 As an alternative to the other requirements of this
11 subsection (a), an employer, other than a unit of local
12 government, may elect coverage under this Act and retain the
13 benefit of the exclusiveness of liability provided in Section
14 5 by obtaining a 24-hour health insurance policy from an
15 authorized insurance carrier, or by participating in a fully
16 or partially self-insured 24-hour health plan that is
17 established or maintained by or for 2 or more employers, so
18 long as the law of this State is not preempted by the
19 Employee Retirement Income Security Act of 1974, Pub. L. No.
20 93-406, or any amendment to that law. The policy or plan
21 must provide, for at least occupational injuries and
22 illnesses, medical benefits that are comparable to those
23 required by this Act. A unit of local government, as a
24 single employer, may participate in the 24-hour health
25 insurance coverage plan. Notice of election of the policy or
26 plan must be given to current employees 90 days before the
27 policy or plan takes effect, and pre-employment notice of
28 election of the policy or plan must be given to all new
29 employees. Disputes and remedies arising under 24-hour health
30 insurance policies are governed by the terms and conditions
31 of the policies and under the applicable provisions of the
32 Illinois Insurance Code and rules adopted under that Code and
33 other applicable laws of this State; however, notwithstanding
34 any other provision of law, disputes shall be heard and
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1 remedies shall be granted or denied by the circuit court
2 rather than the Industrial Commission. The 24-hour health
3 insurance policy may provide for health care by a health
4 maintenance organization or a preferred provider
5 organization. The premium for the 24-hour health insurance
6 policy shall be paid entirely by the employer. The 24-hour
7 health insurance policy may use deductibles and coinsurance
8 provisions that require the employee to pay a portion of the
9 actual medical care received by the employee. If an employer
10 obtains a 24-hour health insurance policy or self-insured
11 plan to secure payment of compensation as to medical
12 benefits, the employer must also obtain an insurance policy
13 or policies that provide indemnity benefits as follows:
14 (i) If indemnity benefits are provided only
15 for occupational-related disability, the benefits
16 must be comparable to those required by this Act.
17 (ii) If indemnity benefits are provided for
18 both occupational-related and
19 nonoccupational-related disability, the benefits
20 must be comparable to those required by this Act.
21 (iii) The employer shall provide for each of
22 its employees life insurance with a death benefit of
23 $100,000 and with dismemberment benefits that are
24 comparable to those provided under this Act.
25 (iv) Policies providing coverage must use
26 prescribed and acceptable underwriting standards,
27 forms, and policies approved by the Department of
28 Insurance. Disability benefits must be certified by
29 the Department of Insurance as being actuarially
30 equivalent to the benefits that would otherwise be
31 available under this Act. The Department of
32 Insurance shall require proof of solvency or
33 adequate bonding for all coverage. If any insurance
34 policy that provides coverage is canceled,
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1 terminated, or nonrenewed for any reason, the
2 cancellation, termination, or nonrenewal is
3 ineffective until the self-insured employer or
4 insurance carrier or carriers notify the Commission
5 and the Department of Insurance of the cancellation,
6 termination, or nonrenewal, and until the Commission
7 has actually received the notification. The
8 Commission must be notified of replacement coverage
9 under a workers' compensation and employer's
10 liability insurance policy or plan by the employer
11 before the effective date of the cancellation,
12 termination, or nonrenewal.
13 (a-1) Regardless of its state of domicile or its
14 principal place of business, an employer shall make payments
15 to its insurance carrier or group self-insurance fund, where
16 applicable, based upon the premium rates of the situs where
17 the work or project is located in Illinois if:
18 (A) the employer is engaged primarily in the
19 building and construction industry; and
20 (B) subdivision (a)(3) of this Section applies to
21 the employer or the employer is a member of a group
22 self-insurance plan as defined in subsection (1) of
23 Section 4a.
24 The Industrial Commission shall impose a penalty upon an
25 employer for violation of this subsection (a-1) if:
26 (i) the employer is given an opportunity at a
27 hearing to present evidence of its compliance with this
28 subsection (a-1); and
29 (ii) after the hearing, the Commission finds that
30 the employer failed to make payments upon the premium
31 rates of the situs where the work or project is located
32 in Illinois.
33 The penalty shall not exceed $1,000 for each day of work
34 for which the employer failed to make payments upon the
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1 premium rates of the situs where the work or project is
2 located in Illinois, but the total penalty shall not exceed
3 $50,000 for each project or each contract under which the
4 work was performed.
5 Any penalty under this subsection (a-1) must be imposed
6 not later than one year after the expiration of the
7 applicable limitation period specified in subsection (c) of
8 Section 6 of this Act. Penalties imposed under this
9 subsection (a-1) shall be deposited into the Industrial
10 Commission Operations Fund created under Section 4 of the
11 Workers' Compensation Act.
12 (b) The sworn application and financial statement, or
13 security, indemnity or bond, or amount of insurance, or other
14 provisions, filed, furnished, carried, or made by the
15 employer, as the case may be, shall be subject to the
16 approval of the Commission.
17 Deposits under escrow agreements shall be cash,
18 negotiable United States government bonds or negotiable
19 general obligation bonds of the State of Illinois. Such cash
20 or bonds shall be deposited in escrow with any State or
21 National Bank or Trust Company having trust authority in the
22 State of Illinois.
23 Upon the approval of the sworn application and financial
24 statement, security, indemnity or bond or amount of
25 insurance, filed, furnished, or carried, as the case may be,
26 the Commission shall send to the employer written notice of
27 its approval thereof. Said certificate of compliance by the
28 employer with the provisions of subparagraphs (2) and (3) of
29 paragraph (a) of this Section shall be delivered by the
30 insurance carrier to the Industrial Commission within 5 days
31 after the effective date of the policy so certified. The
32 insurance so certified shall cover all compensation liability
33 occurring during the time that the insurance is in effect and
34 no further certificate need be filed in case such insurance
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1 is renewed, extended or otherwise continued by such carrier.
2 The insurance so certified shall not be cancelled or in the
3 event that such insurance is not renewed, extended or
4 otherwise continued, such insurance shall not be terminated
5 until at least 10 days after receipt by the Industrial
6 Commission of notice of the cancellation or termination of
7 said insurance; provided, however, that if the employer has
8 secured insurance from another insurance carrier, or has
9 otherwise secured the payment of compensation in accordance
10 with this Section, and such insurance or other security
11 becomes effective prior to the expiration of said 10 days,
12 cancellation or termination may, at the option of the
13 insurance carrier indicated in such notice, be effective as
14 of the effective date of such other insurance or security.
15 (c) Whenever the Commission shall find that any
16 corporation, company, association, aggregation of
17 individuals, reciprocal or interinsurers exchange, or other
18 insurer effecting workers' occupational disease compensation
19 insurance in this State shall be insolvent, financially
20 unsound, or unable to fully meet all payments and liabilities
21 assumed or to be assumed for compensation insurance in this
22 State, or shall practice a policy of delay or unfairness
23 toward employees in the adjustment, settlement, or payment of
24 benefits due such employees, the Commission may after
25 reasonable notice and hearing order and direct that such
26 corporation, company, association, aggregation of
27 individuals, reciprocal or interinsurers exchange, or
28 insurer, shall from and after a date fixed in such order
29 discontinue the writing of any such workers' occupational
30 disease compensation insurance in this State. It shall
31 thereupon be unlawful for any such corporation, company,
32 association, aggregation of individuals, reciprocal or
33 interinsurers exchange, or insurer to effect any workers'
34 occupational disease compensation insurance in this State. A
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1 copy of the order shall be served upon the Director of
2 Insurance by registered mail. Whenever the Commission finds
3 that any service or adjustment company used or employed by a
4 self-insured employer or by an insurance carrier to process,
5 adjust, investigate, compromise or otherwise handle claims
6 under this Act, has practiced or is practicing a policy of
7 delay or unfairness toward employees in the adjustment,
8 settlement or payment of benefits due such employees, the
9 Commission may after reasonable notice and hearing order and
10 direct that such service or adjustment company shall from and
11 after a date fixed in such order be prohibited from
12 processing, adjusting, investigating, compromising or
13 otherwise handling claims under this Act.
14 Whenever the Commission finds that any self-insured
15 employer has practiced or is practicing delay or unfairness
16 toward employees in the adjustment, settlement or payment of
17 benefits due such employees, the Commission may after
18 reasonable notice and hearing order and direct that after a
19 date fixed in the order such self-insured employer shall be
20 disqualified to operate as a self-insurer and shall be
21 required to insure his entire liability to pay compensation
22 in some insurance carrier authorized, licensed and permitted
23 to do such insurance business in this State as provided in
24 subparagraph (3) of paragraph (a) of this Section.
25 All orders made by the Commission under this Section
26 shall be subject to review by the courts, the review to be
27 taken in the same manner and within the same time as provided
28 by Section 19 of this Act for review of awards and decisions
29 of the Commission, upon the party seeking the review filing
30 with the clerk of the court to which said review is taken a
31 bond in an amount to be fixed and approved by the court to
32 which said review is taken, conditioned upon the payment of
33 all compensation awarded against the person taking the review
34 pending a decision thereof and further conditioned upon such
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1 other obligations as the court may impose. Upon the review
2 the Circuit Court shall have power to review all questions of
3 fact as well as of law. The penalty hereinafter provided for
4 in this paragraph shall not attach and shall not begin to run
5 until the final determination of the order of the Commission.
6 (d) Upon a finding by the Commission, after reasonable
7 notice and hearing, of the knowing and wilful failure of an
8 employer to comply with any of the provisions of paragraph
9 (a) of this Section or the failure or refusal of an employer,
10 service or adjustment company, or insurance carrier to comply
11 with any order of the Industrial Commission pursuant to
12 paragraph (c) of this Section the Commission may assess a
13 civil penalty of up to $500 per day for each day of such
14 failure or refusal after the effective date of this
15 amendatory Act of 1989. Each day of such failure or refusal
16 shall constitute a separate offense.
17 Upon the failure or refusal of any employer, service or
18 adjustment company or insurance carrier to comply with the
19 provisions of this Section and orders of the Commission under
20 this Section, or the order of the court on review after final
21 adjudication, the Commission may bring a civil action to
22 recover the amount of the penalty in Cook County or in
23 Sangamon County in which litigation the Commission shall be
24 represented by the Attorney General. The Commission shall
25 send notice of its finding of non-compliance and assessment
26 of the civil penalty to the Attorney General. It shall be
27 the duty of the Attorney General within 30 days after receipt
28 of the notice, to institute prosecutions and promptly
29 prosecute all reported violations of this Section.
30 (e) This Act shall not affect or disturb the continuance
31 of any existing insurance, mutual aid, benefit, or relief
32 association or department, whether maintained in whole or in
33 part by the employer or whether maintained by the employees,
34 the payment of benefits of such association or department
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1 being guaranteed by the employer or by some person, firm or
2 corporation for him or her: Provided, the employer
3 contributes to such association or department an amount not
4 less than the full compensation herein provided, exclusive of
5 the cost of the maintenance of such association or department
6 and without any expense to the employee. This Act shall not
7 prevent the organization and maintaining under the insurance
8 laws of this State of any benefit or insurance company for
9 the purpose of insuring against the compensation provided for
10 in this Act, the expense of which is maintained by the
11 employer. This Act shall not prevent the organization or
12 maintaining under the insurance laws of this State of any
13 voluntary mutual aid, benefit or relief association among
14 employees for the payment of additional accident or sick
15 benefits.
16 (f) No existing insurance, mutual aid, benefit or relief
17 association or department shall, by reason of anything herein
18 contained, be authorized to discontinue its operation without
19 first discharging its obligations to any and all persons
20 carrying insurance in the same or entitled to relief or
21 benefits therein.
22 (g) Any contract, oral, written or implied, of
23 employment providing for relief benefit, or insurance or any
24 other device whereby the employee is required to pay any
25 premium or premiums for insurance against the compensation
26 provided for in this Act shall be null and void. Any
27 employer withholding from the wages of any employee any
28 amount for the purpose of paying any such premium shall be
29 guilty of a Class B misdemeanor.
30 In the event the employer does not pay the compensation
31 for which he or she is liable, then an insurance company,
32 association or insurer which may have insured such employer
33 against such liability shall become primarily liable to pay
34 to the employee, his personal representative or beneficiary
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1 the compensation required by the provisions of this Act to be
2 paid by such employer. The insurance carrier may be made a
3 party to the proceedings in which the employer is a party and
4 an award may be entered jointly against the employer and the
5 insurance carrier.
6 (h) It shall be unlawful for any employer, insurance
7 company or service or adjustment company to interfere with,
8 restrain or coerce an employee in any manner whatsoever in
9 the exercise of the rights or remedies granted to him or her
10 by this Act or to discriminate, attempt to discriminate, or
11 threaten to discriminate against an employee in any way
12 because of his exercise of the rights or remedies granted to
13 him by this Act.
14 It shall be unlawful for any employer, individually or
15 through any insurance company or service or adjustment
16 company, to discharge or to threaten to discharge, or to
17 refuse to rehire or recall to active service in a suitable
18 capacity an employee because of the exercise of his or her
19 rights or remedies granted to him or her by this Act.
20 (i) If an employer elects to obtain a life insurance
21 policy on his employees, he may also elect to apply such
22 benefits in satisfaction of all or a portion of the death
23 benefits payable under this Act, in which case, the
24 employer's premium for coverage for benefits under this Act
25 shall be reduced accordingly.
26 (Source: P.A. 90-109, eff. 1-1-98.)
27 Section 99. Effective date. This Act takes effect upon
28 becoming law.