State of Illinois
91st General Assembly
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Public Act 91-0375

HB1587 Enrolled                                LRB9103672WHdv

    AN ACT to amend certain Acts  in  relation  to  workplace
injuries and diseases.

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

    Section 5.  The Workers' Compensation Act is  amended  by
changing Section 4 as follows:

    (820 ILCS 305/4) (from Ch. 48, par. 138.4)
    Sec.  4.  (a)  Any employer, including but not limited to
general contractors and their subcontractors, who shall  come
within the provisions of Section 3 of this Act, and any other
employer  who shall elect to provide and pay the compensation
provided for in this Act shall:
         (1)  File   with   the   Commission   annually    an
    application  for  approval  as a self-insurer which shall
    include a  current  financial  statement,  and  annually,
    thereafter, an application for renewal of self-insurance,
    which  shall include a current financial statement.  Said
    application and financial statement shall be  signed  and
    sworn to by the president or vice president and secretary
    or  assistant  secretary  of  the  employer  if  it  be a
    corporation, or by all  of  the  partners,  if  it  be  a
    copartnership,  or  by  the  owner  if  it  be  neither a
    copartnership nor a corporation. All initial applications
    and all applications for renewal of  self-insurance  must
    be  submitted  at  least  60  days prior to the requested
    effective date of self-insurance.
         If the sworn application and financial statement  of
    any  such employer does not satisfy the Commission of the
    financial ability of the employer who has filed  it,  the
    Commission shall require such employer to,
         (2)  Furnish   security,   indemnity   or   a   bond
    guaranteeing   the   payment   by  the  employer  of  the
    compensation provided for in this Act, provided that  any
    such  employer  whose application and financial statement
    shall not have satisfied the commission  of  his  or  her
    financial   ability   and  who  shall  have  secured  his
    liability in part by excess liability insurance shall  be
    required to furnish to the Commission security, indemnity
    or  bond  guaranteeing  his  or  her  payment  up  to the
    effective limits of the excess coverage, or
         (3)  Insure  his  entire  liability  to   pay   such
    compensation   in   some  insurance  carrier  authorized,
    licensed, or permitted to do such insurance  business  in
    this  State.   Every  policy  of  an  insurance  carrier,
    insuring the payment of compensation under this Act shall
    cover  all  the  employees  and  the  entire compensation
    liability of the insured:  Provided,  however,  that  any
    employer  may  insure  his  or her compensation liability
    with 2 or more insurance carriers or may  insure  a  part
    and qualify under subsection 1, 2, or 4 for the remainder
    of his or her liability to pay such compensation, subject
    to the following two provisions:
              Firstly,  the  entire compensation liability of
         the employer to employees working  at  or  from  one
         location  shall  be  insured  in  one such insurance
         carrier or shall be self-insured, and
              Secondly, the employer  shall  submit  evidence
         satisfactorily  to  the  Commission  that his or her
         entire liability for the compensation  provided  for
         in  this Act will be secured.  Any provisions in any
         policy, or  in  any  endorsement  attached  thereto,
         attempting  to  limit  or  modify  in  any  way, the
         liability of the insurance carriers issuing the same
         except as otherwise provided herein shall be  wholly
         void.
         Nothing  herein contained shall apply to policies of
    excess liability carriage secured by employers  who  have
    been approved by the Commission as self-insurers, or
         (4)  Make  some other provision, satisfactory to the
    Commission,  for  the  securing   of   the   payment   of
    compensation provided for in this Act, and
         (5)  Upon   becoming   subject   to   this  Act  and
    thereafter as often as  the  Commission  may  in  writing
    demand, file with the Commission in form prescribed by it
    evidence  of  his or her compliance with the provision of
    this Section.
    (a-1)  Regardless  of  its  state  of  domicile  or   its
principal  place of business, an employer shall make payments
to its insurance carrier or group self-insurance fund,  where
applicable,  based  upon the premium rates of the situs where
the work or project is located in Illinois if:
         (A)  the  employer  is  engaged  primarily  in   the
    building and construction industry; and
         (B)  subdivision  (a)(3)  of this Section applies to
    the employer or the employer  is  a  member  of  a  group
    self-insurance  plan  as  defined  in  subsection  (1) of
    Section 4a.
    The Industrial Commission shall impose a penalty upon  an
employer for violation of this subsection (a-1) if:
         (i)  the  employer  is  given  an  opportunity  at a
    hearing to present  evidence of its compliance with  this
    subsection (a-1); and
         (ii)  after  the  hearing, the Commission finds that
    the employer failed to make  payments  upon  the  premium
    rates  of the situs where the work or  project is located
    in Illinois.
    The penalty shall not exceed $1,000 for each day of  work
for  which    the  employer  failed to make payments upon the
premium rates of the situs where the    work  or  project  is
located  in  Illinois, but the total penalty shall not exceed
$50,000 for each project or each  contract  under  which  the
work was  performed.
    Any  penalty  under this subsection (a-1) must be imposed
not later    than  one  year  after  the  expiration  of  the
applicable  limitation period  specified in subsection (d) of
Section 6  of  this  Act.   Penalties  imposed  under    this
subsection  (a-1)  shall  be  deposited  into  the Industrial
Commission  Operations Fund, a special fund that  is  created
in  the  State treasury.  Subject to appropriation, moneys in
the Fund shall be used solely for  the  operations    of  the
Industrial Commission.
    (b)  The  sworn  application  and financial statement, or
security, indemnity or bond, or amount of insurance, or other
provisions,  filed,  furnished,  carried,  or  made  by   the
employer,  as  the  case  may  be,  shall  be  subject to the
approval of the Commission.
    Deposits  under  escrow   agreements   shall   be   cash,
negotiable  United  States  government  bonds  or  negotiable
general obligation bonds of the State of Illinois.  Such cash
or  bonds  shall  be  deposited  in  escrow with any State or
National Bank or Trust Company having trust authority in  the
State of Illinois.
    Upon  the approval of the sworn application and financial
statement,  security,  indemnity  or  bond   or   amount   of
insurance,  filed,  furnished or carried, as the case may be,
the Commission shall send to the employer written  notice  of
its  approval  thereof.  The certificate of compliance by the
employer with the provisions of subparagraphs (2) and (3)  of
paragraph  (a)  of  this  Section  shall  be delivered by the
insurance carrier to the Industrial  Commission  within  five
days  after  the  effective  date of the policy so certified.
The insurance  so  certified  shall  cover  all  compensation
liability  occurring during the time that the insurance is in
effect and no further certificate need be filed in case  such
insurance is renewed, extended or otherwise continued by such
carrier.   The  insurance so certified shall not be cancelled
or in the event that such insurance is not renewed,  extended
or   otherwise   continued,   such  insurance  shall  not  be
terminated until at  least  10  days  after  receipt  by  the
Industrial  Commission  of  notice  of  the  cancellation  or
termination of said insurance; provided, however, that if the
employer   has   secured  insurance  from  another  insurance
carrier, or has otherwise secured the payment of compensation
in accordance with this Section, and such insurance or  other
security  becomes effective prior to the expiration of the 10
days, cancellation or termination may, at the option  of  the
insurance  carrier  indicated in such notice, be effective as
of the effective date of such other insurance or security.
    (c)  Whenever  the  Commission  shall   find   that   any
corporation,    company,    association,    aggregation    of
individuals,  reciprocal  or interinsurers exchange, or other
insurer effecting workers'  compensation  insurance  in  this
State  shall  be insolvent, financially unsound, or unable to
fully meet all payments and  liabilities  assumed  or  to  be
assumed  for  compensation  insurance in this State, or shall
practice a policy of delay or unfairness toward employees  in
the  adjustment,  settlement, or payment of benefits due such
employees, the Commission may  after  reasonable  notice  and
hearing  order  and  direct  that  such corporation, company,
association,  aggregation  of  individuals,   reciprocal   or
interinsurers  exchange,  or  insurer, shall from and after a
date fixed in such order discontinue the writing of any  such
workers'  compensation  insurance  in this State.  Subject to
such modification of the order as the  Commission  may  later
make  on  review  of  the order, as herein provided, it shall
thereupon be unlawful  for  any  such  corporation,  company,
association,   aggregation   of  individuals,  reciprocal  or
interinsurers exchange, or insurer  to  effect  any  workers'
compensation  insurance  in  this State.  A copy of the order
shall be served upon the Director of Insurance by  registered
mail.   Whenever  the  Commission  finds  that any service or
adjustment  company  used  or  employed  by  a   self-insured
employer  or  by  an  insurance  carrier  to process, adjust,
investigate, compromise or otherwise handle claims under this
Act, has practiced or is practicing  a  policy  of  delay  or
unfairness  toward employees in the adjustment, settlement or
payment of benefits due such employees,  the  Commission  may
after  reasonable  notice  and  hearing order and direct that
such service or adjustment company shall  from  and  after  a
date  fixed  in  such  order  be  prohibited from processing,
adjusting, investigating, compromising or otherwise  handling
claims under this Act.
    Whenever  the  Commission  finds  that  any  self-insured
employer  has  practiced or is practicing delay or unfairness
toward employees in the adjustment, settlement or payment  of
benefits  due  such  employees,  the  Commission  may,  after
reasonable  notice and hearing, order and direct that after a
date fixed in the order such self-insured employer  shall  be
disqualified  to  operate  as  a  self-insurer  and  shall be
required to insure his entire liability to  pay  compensation
in  some insurance carrier authorized, licensed and permitted
to do such insurance business in this State, as  provided  in
subparagraph 3 of paragraph (a) of this Section.
    All  orders  made  by  the  Commission under this Section
shall be subject to review by the courts, said review  to  be
taken in the same manner and within the same time as provided
by  Section 19 of this Act for review of awards and decisions
of the Commission, upon the party seeking the  review  filing
with  the  clerk of the court to which said review is taken a
bond in an amount to be fixed and approved by  the  court  to
which  the  review  is taken, conditioned upon the payment of
all compensation  awarded  against  the  person  taking  said
review  pending  a  decision  thereof and further conditioned
upon such other obligations as the court may  impose.    Upon
the  review  the Circuit Court shall have power to review all
questions of fact as well as of law.  The penalty hereinafter
provided for in this paragraph shall not attach and shall not
begin to run until the final determination of  the  order  of
the Commission.
    (d)  Upon  a  finding by the Commission, after reasonable
notice and hearing, of the knowing and wilful failure  of  an
employer  to  comply  with any of the provisions of paragraph
(a) of this Section or the failure or refusal of an employer,
service or adjustment company, or  an  insurance  carrier  to
comply  with  any order of the Industrial Commission pursuant
to paragraph (c) of this Section disqualifying him or her  to
operate  as a self insurer and requiring him or her to insure
his or her liability,  the  Commission  may  assess  a  civil
penalty of up to $500 per day for each day of such failure or
refusal  after  the  effective date of this amendatory Act of
1989. Each day of such failure or refusal shall constitute  a
separate offense.
    Upon  the  failure or refusal of any employer, service or
adjustment company or insurance carrier to  comply  with  the
provisions  of  this  Section  and  with  the  orders  of the
Commission under this Section, or the order of the  court  on
review  after  final adjudication, the Commission may bring a
civil action to recover the amount of  the  penalty  in  Cook
County   or  in  Sangamon  County  in  which  litigation  the
Commission shall be represented by the Attorney General.  The
Commission shall send notice of its finding of non-compliance
and assessment of the civil penalty to the Attorney  General.
It  shall  be the duty of the Attorney General within 30 days
after receipt of the notice, to  institute  prosecutions  and
promptly prosecute all reported violations of this Section.
    (e)  This Act shall not affect or disturb the continuance
of  any  existing  insurance,  mutual aid, benefit, or relief
association or department, whether maintained in whole or  in
part  by the employer or whether maintained by the employees,
the payment of benefits of  such  association  or  department
being  guaranteed  by the employer or by some person, firm or
corporation  for  him  or   her:   Provided,   the   employer
contributes  to  such association or department an amount not
less than the full compensation herein provided, exclusive of
the cost of the maintenance of such association or department
and without any expense to the employee.  This Act shall  not
prevent  the organization and maintaining under the insurance
laws of this State of any benefit or  insurance  company  for
the purpose of insuring against the compensation provided for
in  this  Act,  the  expense  of  which  is maintained by the
employer. This Act shall  not  prevent  the  organization  or
maintaining  under  the  insurance  laws of this State of any
voluntary mutual aid, benefit  or  relief  association  among
employees  for  the  payment  of  additional accident or sick
benefits.
    (f)  No existing insurance, mutual aid, benefit or relief
association or department shall, by reason of anything herein
contained, be authorized to discontinue its operation without
first discharging its obligations  to  any  and  all  persons
carrying  insurance  in  the  same  or  entitled to relief or
benefits therein.
    (g)  Any  contract,  oral,   written   or   implied,   of
employment  providing for relief benefit, or insurance or any
other device whereby the employee  is  required  to  pay  any
premium  or  premiums  for insurance against the compensation
provided for in  this  Act  shall  be  null  and  void.   Any
employer  withholding  from  the  wages  of  any employee any
amount for the purpose of paying any such  premium  shall  be
guilty of a Class B misdemeanor.
    In  the  event the employer does not pay the compensation
for which he or she is liable,  then  an  insurance  company,
association  or  insurer which may have insured such employer
against such liability shall become primarily liable  to  pay
to  the  employee,  his  or  her  personal  representative or
beneficiary the compensation required by  the  provisions  of
this  Act to be paid by such employer.  The insurance carrier
may be made a party to the proceedings in which the  employer
is  a  party  and an award may be entered jointly against the
employer and the insurance carrier.
    (h)  It shall be unlawful  for  any  employer,  insurance
company  or  service or adjustment company to interfere with,
restrain or coerce an employee in any  manner  whatsoever  in
the  exercise of the rights or remedies granted to him or her
by this Act or to discriminate, attempt to  discriminate,  or
threaten  to  discriminate  against  an  employee  in any way
because of his or her exercise  of  the  rights  or  remedies
granted to him or her by this Act.
    It  shall  be  unlawful for any employer, individually or
through  any  insurance  company  or  service  or  adjustment
company, to discharge or to  threaten  to  discharge,  or  to
refuse  to  rehire  or recall to active service in a suitable
capacity an employee because of the exercise of  his  or  her
rights or remedies granted to him or her by this Act.
    (i)  If  an  employer  elects  to obtain a life insurance
policy on his employees, he may  also  elect  to  apply  such
benefits  in  satisfaction  of  all or a portion of the death
benefits  payable  under  this  Act,  in  which   case,   the
employer's compensation premium shall be reduced accordingly.
    (j)  Within  45 days of receipt of an initial application
or  application  to  renew  self-insurance   privileges   the
Self-Insurers  Advisory  Board  shall  review  and submit for
approval by the Chairman of the Commission recommendations of
disposition of all initial applications  to  self-insure  and
all  applications to renew self-insurance privileges filed by
private self-insurers pursuant  to  the  provisions  of  this
Section   and   Section  4a-9  of  this  Act.   Each  private
self-insurer  shall  submit  with  its  initial  and  renewal
applications the application fee required by Section 4a-4  of
this Act.
    The  Chairman  of  the Commission shall promptly act upon
all initial applications and applications for renewal in full
accordance with the recommendations of the Board  or,  should
the  Chairman disagree with any recommendation of disposition
of the Self-Insurer's Advisory Board, he shall within 30 days
of receipt of such recommendation provide  to  the  Board  in
writing  the  reasons  supporting his decision.  The Chairman
shall also promptly  notify  the  employer  of  his  decision
within 15 days of receipt of the recommendation of the Board.
    If  an  employer  is  denied  a renewal of self-insurance
privileges pursuant  to  application  it  shall  retain  said
privilege   for  120  days  after  receipt  of  a  notice  of
cancellation of  the  privilege  from  the  Chairman  of  the
Commission.
    All  orders made by the Chairman under this Section shall
be subject to review by the courts, such review to  be  taken
in  the  same  manner and within the same time as provided by
subsection (f) of Section 19 of this Act for review of awards
and decisions of the Commission, upon the party  seeking  the
review  filing  with  the  clerk  of  the court to which such
review is taken a bond in an amount to be fixed and  approved
by  the  court to which the review is taken, conditioned upon
the payment of all compensation awarded  against  the  person
taking  such  review  pending  a decision thereof and further
conditioned upon such other  obligations  as  the  court  may
impose.    Upon the review the Circuit Court shall have power
to review all questions of fact as well as of law.
(Source: P.A. 90-109, eff. 1-1-98.)
    Section 10.  The Workers' Occupational  Diseases  Act  is
amended by changing Section 4 as follows:

    (820 ILCS 310/4) (from Ch. 48, par. 172.39)
    Sec.  4.   (a) Any employer, including but not limited to
general contractors and their subcontractors, required by the
terms of this Act or by  election  to  pay  the  compensation
provided for in this Act shall:
         (1)  File  with  the  Commission  an application for
    approval as a self-insurer which shall include a  current
    financial   statement.   The  application  and  financial
    statement shall be signed and sworn to by  the  president
    or vice-president and secretary or assistant secretary of
    the  employer  if  it  be a corporation, or by all of the
    partners if it be a copartnership, or by the owner if  it
    be neither a copartnership nor a corporation.
         If  the sworn application and financial statement of
    any such employer does not satisfy the Commission of  the
    financial  ability  of the employer who has filed it, the
    Commission shall require such employer to:
         (2)  Furnish   security,   indemnity   or   a   bond
    guaranteeing  the  payment  by  the   employer   of   the
    compensation provided for in this Act,  provided that any
    such employer who shall have secured his or her liability
    in part by excess liability coverage shall be required to
    furnish  to  the  Commission  security, indemnity or bond
    guaranteeing his or her payment up to the amount  of  the
    effective  limits  of  the  excess coverage in accordance
    with the provisions of this paragraph, or
         (3)  Insure his or her entire liability to pay  such
    compensation   in   some  insurance  carrier  authorized,
    licensed or permitted to do such  insurance  business  in
    this  State.   All  policies  of  such insurance carriers
    insuring the payment of compensation under this Act shall
    cover  all  the  employees  and   all   such   employer's
    compensation liability in all cases in which the last day
    of the last exposure to the occupational disease involved
    is within the effective period of the policy, anything to
    the  contrary  in  the policy notwithstanding.  Provided,
    however,  that  any  employer  may  insure  his  or   her
    compensation  liability  under  this  Act  with 2 or more
    insurance carriers or may insure a part and qualify under
    Subsection 1, 2, or 4 for the remainder of his  liability
    to  pay  such  compensation, subject to the following two
    provisions:
              Firstly, the entire liability of  the  employer
         to  employees  working at or from one location shall
         be insured in one such insurance carrier or shall be
         self-insured.
              Secondly, the employer  shall  submit  evidence
         satisfactory  to  the  Commission  that  his  or her
         entire liability for the compensation  provided  for
         in this Act will be secured.
         Any  provision  in  a  policy  or in any endorsement
    attached thereto attempting to limit or modify in any way
    the liability of the insurance carrier issuing the  same,
    except  as  otherwise  provided  herein,  shall be wholly
    void.
         The  insurance  or  security  in  force   to   cover
    compensation  liability  under this Act shall be separate
    and distinct from the insurance  or  security  under  the
    "Workers'  Compensation  Act"  and any insurance contract
    covering liability under either Act need  not  cover  any
    liability  under  the  other.   Nothing  herein contained
    shall apply to  policies  of  excess  liability  carriage
    secured  by  employers  who  have  been  approved  by the
    Commission as self-insurers, or
         (4)  Make some other provision, satisfactory to  the
    Commission,   for   the   securing   of  the  payment  of
    compensation provided for in this Act, and
         (5)  Upon  becoming  subject   to   this   Act   and
    thereafter  as  often  as  the  Commission may in writing
    demand, file with the Commission in form prescribed by it
    evidence of his or her compliance with the  provision  of
    this Section.
    (a-1)  Regardless   of  its  state  of  domicile  or  its
principal place of business, an employer shall make  payments
to  its insurance carrier or group self-insurance fund, where
applicable, based upon the premium rates of the  situs  where
the work or project is located in Illinois if:
         (A)  the   employer  is  engaged  primarily  in  the
    building and construction industry; and
         (B)  subdivision (a)(3) of this Section  applies  to
    the  employer  or  the  employer  is  a member of a group
    self-insurance plan  as  defined  in  subsection  (1)  of
    Section 4a.
    The  Industrial Commission shall impose a penalty upon an
employer for violation of this subsection (a-1) if:
         (i)  the employer  is  given  an  opportunity  at  a
    hearing  to present  evidence of its compliance with this
    subsection (a-1); and
         (ii)  after the hearing, the Commission  finds  that
    the  employer    failed to make payments upon the premium
    rates of the situs where the work or  project is  located
    in Illinois.
    The  penalty shall not exceed $1,000 for each day of work
for which  the employer failed  to  make  payments  upon  the
premium  rates  of  the  situs  where the  work or project is
located in Illinois, but the total penalty shall  not  exceed
$50,000  for  each  project  or each contract under which the
work was  performed.
    Any penalty under this subsection (a-1) must  be  imposed
not   later  than  one  year  after  the  expiration  of  the
applicable limitation period specified in subsection  (c)  of
Section   6  of  this  Act.   Penalties  imposed  under  this
subsection (a-1)  shall  be  deposited  into  the  Industrial
Commission  Operations  Fund  created  under Section 4 of the
Workers' Compensation Act.
    (b)  The sworn application and  financial  statement,  or
security, indemnity or bond, or amount of insurance, or other
provisions,   filed,  furnished,  carried,  or  made  by  the
employer, as the  case  may  be,  shall  be  subject  to  the
approval of the Commission.
    Deposits   under   escrow   agreements   shall  be  cash,
negotiable  United  States  government  bonds  or  negotiable
general obligation bonds of the State of Illinois.  Such cash
or bonds shall be deposited  in  escrow  with  any  State  or
National  Bank or Trust Company having trust authority in the
State of Illinois.
    Upon the approval of the sworn application and  financial
statement,   security,   indemnity   or  bond  or  amount  of
insurance, filed, furnished, or carried, as the case may  be,
the  Commission  shall send to the employer written notice of
its approval thereof.  Said certificate of compliance by  the
employer  with the provisions of subparagraphs (2) and (3) of
paragraph (a) of this  Section  shall  be  delivered  by  the
insurance  carrier to the Industrial Commission within 5 days
after the effective date of the  policy  so  certified.   The
insurance so certified shall cover all compensation liability
occurring during the time that the insurance is in effect and
no  further  certificate need be filed in case such insurance
is renewed, extended or otherwise continued by such  carrier.
The  insurance  so certified shall not be cancelled or in the
event  that  such  insurance  is  not  renewed,  extended  or
otherwise continued, such insurance shall not  be  terminated
until  at  least  10  days  after  receipt  by the Industrial
Commission of notice of the cancellation  or  termination  of
said  insurance;  provided, however, that if the employer has
secured insurance from  another  insurance  carrier,  or  has
otherwise  secured  the payment of compensation in accordance
with this Section,  and  such  insurance  or  other  security
becomes  effective  prior  to the expiration of said 10 days,
cancellation  or  termination  may,  at  the  option  of  the
insurance carrier indicated in such notice, be  effective  as
of the effective date of such other insurance or security.
    (c)  Whenever   the   Commission   shall  find  that  any
corporation,    company,    association,    aggregation    of
individuals, reciprocal or interinsurers exchange,  or  other
insurer  effecting workers' occupational disease compensation
insurance in  this  State  shall  be  insolvent,  financially
unsound, or unable to fully meet all payments and liabilities
assumed  or  to be assumed for compensation insurance in this
State, or shall practice a  policy  of  delay  or  unfairness
toward employees in the adjustment, settlement, or payment of
benefits   due  such  employees,  the  Commission  may  after
reasonable notice and hearing  order  and  direct  that  such
corporation,    company,    association,    aggregation    of
individuals,   reciprocal   or   interinsurers  exchange,  or
insurer, shall from and after a  date  fixed  in  such  order
discontinue  the  writing  of  any such workers' occupational
disease  compensation  insurance  in  this  State.  It  shall
thereupon be unlawful  for  any  such  corporation,  company,
association,   aggregation   of  individuals,  reciprocal  or
interinsurers exchange, or insurer  to  effect  any  workers'
occupational disease compensation insurance in this State.  A
copy  of  the  order  shall  be  served  upon the Director of
Insurance by registered mail.  Whenever the Commission  finds
that  any service or adjustment company used or employed by a
self-insured employer or by an insurance carrier to  process,
adjust,  investigate,  compromise  or otherwise handle claims
under this Act, has practiced or is practicing  a  policy  of
delay  or  unfairness  toward  employees  in  the adjustment,
settlement or payment of benefits  due  such  employees,  the
Commission  may after reasonable notice and hearing order and
direct that such service or adjustment company shall from and
after  a  date  fixed  in  such  order  be  prohibited   from
processing,   adjusting,   investigating,   compromising   or
otherwise handling claims under this Act.
    Whenever  the  Commission  finds  that  any  self-insured
employer  has  practiced or is practicing delay or unfairness
toward employees in the adjustment, settlement or payment  of
benefits   due  such  employees,  the  Commission  may  after
reasonable notice and hearing order and direct that  after  a
date  fixed  in the order such self-insured employer shall be
disqualified to  operate  as  a  self-insurer  and  shall  be
required  to  insure his entire liability to pay compensation
in some insurance carrier authorized, licensed and  permitted
to  do  such  insurance business in this State as provided in
subparagraph (3) of paragraph (a) of this Section.
    All orders made by  the  Commission  under  this  Section
shall  be  subject  to review by the courts, the review to be
taken in the same manner and within the same time as provided
by Section 19 of this Act for review of awards and  decisions
of  the  Commission, upon the party seeking the review filing
with the clerk of the court to which said review is  taken  a
bond  in  an  amount to be fixed and approved by the court to
which said review is taken, conditioned upon the  payment  of
all compensation awarded against the person taking the review
pending  a decision thereof and further conditioned upon such
other obligations as the court may impose.  Upon  the  review
the Circuit Court shall have power to review all questions of
fact as well as of law.  The penalty hereinafter provided for
in this paragraph shall not attach and shall not begin to run
until the final determination of the order of the Commission.
    (d)  Upon  a  finding by the Commission, after reasonable
notice and hearing, of the knowing and wilful failure  of  an
employer  to  comply  with any of the provisions of paragraph
(a) of this Section or the failure or refusal of an employer,
service or adjustment company, or insurance carrier to comply
with any order  of  the  Industrial  Commission  pursuant  to
paragraph  (c)  of  this  Section the Commission may assess a
civil penalty of up to $500 per day  for  each  day  of  such
failure   or   refusal  after  the  effective  date  of  this
amendatory Act of 1989.   Each day of such failure or refusal
shall constitute a separate offense.
    Upon the failure or refusal of any employer,  service  or
adjustment  company   or insurance carrier to comply with the
provisions of this Section and orders of the Commission under
this Section, or the order of the court on review after final
adjudication, the Commission may  bring  a  civil  action  to
recover  the  amount  of  the  penalty  in  Cook County or in
Sangamon County in which litigation the Commission  shall  be
represented  by  the  Attorney  General. The Commission shall
send notice of its finding of non-compliance  and  assessment
of  the  civil  penalty to the Attorney General.  It shall be
the duty of the Attorney General within 30 days after receipt
of  the  notice,  to  institute  prosecutions  and   promptly
prosecute all reported violations of this Section.
    (e)  This Act shall not affect or disturb the continuance
of  any  existing  insurance,  mutual aid, benefit, or relief
association or department, whether maintained in whole or  in
part  by the employer or whether maintained by the employees,
the payment of benefits of  such  association  or  department
being  guaranteed  by the employer or by some person, firm or
corporation  for  him  or   her:   Provided,   the   employer
contributes  to  such association or department an amount not
less than the full compensation herein provided, exclusive of
the cost of the maintenance of such association or department
and without any expense to the employee.  This Act shall  not
prevent  the organization and maintaining under the insurance
laws of this State of any benefit or  insurance  company  for
the purpose of insuring against the compensation provided for
in  this  Act,  the  expense  of  which  is maintained by the
employer. This Act shall  not  prevent  the  organization  or
maintaining  under  the  insurance  laws of this State of any
voluntary mutual aid, benefit  or  relief  association  among
employees  for  the  payment  of  additional accident or sick
benefits.
    (f)  No existing insurance, mutual aid, benefit or relief
association or department shall, by reason of anything herein
contained, be authorized to discontinue its operation without
first discharging its obligations  to  any  and  all  persons
carrying  insurance  in  the  same  or  entitled to relief or
benefits therein.
    (g)  Any  contract,  oral,   written   or   implied,   of
employment  providing for relief benefit, or insurance or any
other device whereby the employee  is  required  to  pay  any
premium  or  premiums  for insurance against the compensation
provided for in  this  Act  shall  be  null  and  void.   Any
employer  withholding  from  the  wages  of  any employee any
amount for the purpose of paying any such  premium  shall  be
guilty of a Class B misdemeanor.
    In  the  event the employer does not pay the compensation
for which he or she is liable,  then  an  insurance  company,
association  or  insurer which may have insured such employer
against such liability shall become primarily liable  to  pay
to  the  employee, his personal representative or beneficiary
the compensation required by the provisions of this Act to be
paid by such employer.  The insurance carrier may be  made  a
party to the proceedings in which the employer is a party and
an  award may be entered jointly against the employer and the
insurance carrier.
    (h)  It shall be unlawful  for  any  employer,  insurance
company  or  service or adjustment company to interfere with,
restrain or coerce an employee in any  manner  whatsoever  in
the  exercise of the rights or remedies granted to him or her
by this Act or to discriminate, attempt to  discriminate,  or
threaten  to  discriminate  against  an  employee  in any way
because of his exercise of the rights or remedies granted  to
him by this Act.
    It  shall  be  unlawful for any employer, individually or
through  any  insurance  company  or  service  or  adjustment
company, to discharge or to  threaten  to  discharge,  or  to
refuse  to  rehire  or recall to active service in a suitable
capacity an employee because of the exercise of  his  or  her
rights or remedies granted to him or her by this Act.
    (i)  If  an  employer  elects  to obtain a life insurance
policy on his employees, he may  also  elect  to  apply  such
benefits  in  satisfaction  of  all or a portion of the death
benefits  payable  under  this  Act,  in  which   case,   the
employer's  premium  for coverage for benefits under this Act
shall be reduced accordingly.
(Source: P.A. 90-109, eff. 1-1-98.)

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