(215 ILCS 113/20)
(a) A lessor shall register with the Department prior to becoming a
qualified self-insured for workers' compensation or becoming eligible to be
issued a workers' compensation and employers' liability insurance policy. The
(1) identify the name of the lessor;
(2) identify the address of the principal place of
(3) include the lessor's taxpayer or employer
(4) include a list by jurisdiction of each and every
name that the lessor has operated under in the preceding 5 years including any alternative names and names of predecessors;
(5) include a list of the officers and directors of
the lessor and its predecessors, successors, or alter egos in the preceding 5 years; and
(6) include a $1,000 fee for the registration and
each annual renewal thereafter.
Amounts received as registration fees shall be deposited into the Insurance
(c) Lessors registering
this Section shall notify the Department within 30 days as to any changes
in any information
provided pursuant to this Section.
(d) The Department shall maintain a list of those lessors who are registered
with the Department.
(e) The Department may prescribe any forms that are
necessary to promote the efficient administration of this Section.
(f) Any lessor that was doing
business in this
State prior to enactment of this Act shall register with the Department
60 days of the effective date of this Act.
(Source: P.A. 93-32, eff. 7-1-03.)
(215 ILCS 113/30)
Responsibility for policy issuance and continuance.
(a) Either a lessor or lessee may provide workers' compensation insurance coverage for leased employees under an employee leasing arrangement. When a workers' compensation policy written to cover leased
employees is issued to the lessor as the named
insured, the lessee shall be identified thereon by the
an appropriate endorsement indicating that the policy provides coverage for
employees. The endorsement shall, at a
minimum, provide for the following:
(1) Coverage under the endorsement shall be limited
to the named insured's employees leased to the lessees.
(2) The experience of the employees leased to the
particular lessee shall be separately maintained by the lessor as provided in Section 25.
(c) The lessor shall notify the insurer or a licensed rating organization 30
days prior to the effective date of termination or immediately upon
notification of cancellation by the lessor of an employee leasing arrangement
with the lessee in order to allow sufficient time to calculate an experience
modification factor for
(d) The insurer shall provide proof of workers' compensation
the lessor and to each applicable lessee within 30 days of the coverage
being effected or changed.
(e) Calculation of a lessor's or lessee's premium shall be done in
accordance with the insurer's rating manual filed with the
(f) When the lessee provides workers' compensation coverage for leased employees under an employee leasing arrangement, the lessor shall notify the Department in a manner specified by the Department to ensure proper and timely notification of coverage to the Department.
(Source: P.A. 99-726, eff. 1-1-17
(215 ILCS 113/45)
Exclusivity and vicarious liability.
Subject to any contrary
provisions of the contract between the client and the employee leasing company,
the employee leasing arrangement that exists between an employee leasing
company and its clients shall be interpreted for purposes of insurance,
and employers' liability as follows:
(1) The employee leasing company shall be entitled
along with the client to the exclusivity of the remedy under both the workers' compensation and employers' liability provisions of a workers' compensation policy or plan that either party has secured.
(2) An employee leasing company is not liable for the
acts, errors, or omissions of a client or of any leased employee acting under the sole and exclusive direction and control of a client. A client shall not be liable for the acts, errors, or omissions of an employee leasing company or of any employee of an employee leasing company acting under the sole and exclusive direction or control of an employee leasing company. Nothing herein shall limit any contractual liability between an employee leasing company and the client company, nor shall the same limit any liability or responsibility imposed by this Act.
(3) Employees leased to a client by an employee
leasing company shall be considered as the employees of the client for the purposes of general liability insurance, automobile insurance, fidelity bonds, surety bonds, and liquor liability insurance carried by the client. Employees leased to a client by an employee leasing company are not deemed employees of the employee leasing company for purposes of general liability insurance, automobile insurance, fidelity bonds, surety bonds, and liquor liability insurance carried by the employee leasing company unless the employees are included by specific reference in the applicable employment arrangement contract, insurance contract, or bond.
(Source: P.A. 90-499, eff. 1-1-98.)
(215 ILCS 113/50)
Grounds for removal of eligibility; order; hearing; review.
(a) Any registration issued under this Act may be revoked or an
application for registration may be denied if the Director finds that the
lessor or applicant:
(1) has willfully violated any provision of this Act
or any rule promulgated by the Director;
(2) has intentionally made a material misstatement in
the application for a registration;
(3) has obtained or attempted to obtain a
registration through misrepresentation or fraud;
(4) has misappropriated or converted to his own, or
improperly withheld, money required to be held in a fiduciary capacity;
(5) has used fraudulent, coercive, or dishonest
practices, or has demonstrated incompetence, untrustworthiness, or financial irresponsibility;
(6) has been, within the past 3 years, convicted of a
felony, unless the person demonstrates to the Director sufficient rehabilitation to warrant the public trust;
(7) has failed to appear without reasonable cause or
excuse in response to a subpoena lawfully issued by the Director;
(8) has had its registration or license suspended or
revoked or its application denied in any other state, district, territory, or province;
(b) When the Director of Insurance has cause to believe that grounds for the
refusal, denial, or revocation of a registration under this Section exists, the
Director shall issue an order to the lessor stating the grounds upon which the
refusal, denial, or revocation is based. The order shall be sent to the lessor
by certified or registered mail. The lessor may request a hearing in writing
within 30 days of the mailing of the order. If no written request is received
by the Director, the order shall be final upon the expiration of the 30 days.
(c) If the lessor requests a hearing pursuant to this
Section, the Director shall issue a written notice of hearing sent to the
lessor by certified or registered mail stating the following:
(1) a specified time for the hearing, which may not
be less than 20 days nor more than 30 days after the mailing of the notice of hearing; and
(2) a specific place for the hearing, which may be
either in the city of Springfield or Chicago or in the county where the lessor's principal place of business is located.
(d) After the hearing, or upon the failure of the lessor
to appear at the hearing, the Director of Insurance shall take such action as
is deemed advisable on written findings that shall be served on the lessor.
The action of the Director of Insurance shall be subject to
review under and in accordance with the Administrative Review Law.
(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98