(215 ILCS 5/107a.06)
(a) An application for Certificate of Authority to establish a pool must
documentation and information regarding its administrator, pooling agreement,
plan of operation,
and membership required by this Section.
(b) Administrators must disclose all of the following:
(1) Biography of the risk manager on forms prescribed
(2) If a corporation, biographies of all officers and
(3) The size of staff and other information, such as
the kinds of staff positions, location of administrative offices and the nature of any electronic data processing equipment, if any, available for servicing the pool, to demonstrate that the administrator has the resources to administer the program disclosed pursuant to subsection (d).
(4) The most recent financial statement of the
administrator. If a publicly held company, a copy of the last 10-K filed with the Securities and Exchange Commission.
(5) The compensation contract of the administrator.
(6) The bylaws of the pool and articles of
(7) Any agreement that subcontracts any of the
administrator's duties or responsibilities.
(c) A pooling agreement must contain all of the following:
(1) A description of the services to be provided by
(2) The manner in which costs are to be apportioned
(3) The initial premium deposit.
(4) The assessment provision.
(5) The termination provisions and minimum term of
membership, which minimum term of membership shall not be less than one year.
(6) The duration of liability for additional
assessments following termination of membership, which shall be for a period of not less than 3 years.
(7) The prerequisites for membership.
(8) A provision stating that a claim shall be paid by
the pool, regardless of the size of the claim, and that the pool shall be reimbursed by the employer for any amounts required to be paid by the employer under the agreement.
(9) A provision stating that the terms of termination
after the first year of pool membership shall be dictated by the pooling agreement.
(10) If a pooling agreement requires a member to
submit written notice in order for the member to withdraw from a qualified pool, then the period in which the member must provide the written notice cannot be greater than 90 days.
(d) Plans of operation must disclose all of the following:
(1) A listing of initial members.
(2) The aggregate loss history of initial members for
each of the last 3 years.
(3) The amount of the net retention of the pool and a
(4) The names of all entities that will provide
services for the pool and copies of proposed contracts in connection those services.
(5) The safety and loss control programs to be
(e) The application must contain information about initial members specified
prescribed by the Director.
(f) The application must contain the combined loss experience for the group
the last 3 years and
any other financial data required by the Director.
(g) A pool administrator's original books and records relating to the
operations of the pool
shall at all times be located within the State of Illinois.
(h) Any change of the pooling agreement, bylaws, plan of operation,
agreements, or membership shall be delivered to the Director within 30 days
after the amendment
(i) A pool trustee must be an employee, officer, director, or owner of a
(Source: P.A. 91-757, eff. 1-1-01.)