98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1521

 

Introduced 2/13/2013, by Sen. Heather A. Steans

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/462b  from Ch. 73, par. 1065.9b

    Amends the Illinois Insurance Code in the Article concerning workers' compensation and employer's liability rates. Provides that if the application of incorrect classifications, payrolls, or any other factors of a rating system results in the payment by an insured of premiums in excess of the premiums that would have been paid utilizing the correct applications of classifications, payrolls, or other factors of a rating system, the insurer shall pay 5% interest on the excessive premium paid from the date of inception of the workers' compensation policy on which the excessive premium was paid through the date on which the insurer refunds the excessive premium paid. Provides that the Director of Insurance shall have the authority to award the interest. Effective immediately.


LRB098 07567 RPM 37638 b

 

 

A BILL FOR

 

SB1521LRB098 07567 RPM 37638 b

1    AN ACT concerning insurance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 462b as follows:
 
6    (215 ILCS 5/462b)  (from Ch. 73, par. 1065.9b)
7    Sec. 462b. Premiums.
8    (a) Insurance companies shall apply correct
9classifications, payrolls and other factors of a rating system
10to compute premiums. If the application of incorrect
11classifications, payrolls or any other factors of a rating
12system results in the payment by an insured of premiums in
13excess of the premiums that would have been paid utilizing the
14correct applications of classifications, payrolls or other
15factors of a rating system, the insurer shall refund to the
16insured the excessive premium paid for the period during which
17the incorrect application of classifications, payrolls or
18other factors of a rating system were applied. This subsection
19Section is intended to codify existing law and practice.
20    (b) In addition to the refund under subsection (a), the
21insurer shall pay 5% interest on the excessive premium paid
22from the date of inception of the workers' compensation policy
23on which the excessive premium was paid through the date on

 

 

SB1521- 2 -LRB098 07567 RPM 37638 b

1which the insurer refunds the excessive premium paid. The
2Director shall have the authority to award the interest.
3(Source: P.A. 83-1002.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.