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91_HB1587enr
HB1587 Enrolled LRB9103672WHdv
1 AN ACT to amend certain Acts in relation to workplace
2 injuries and diseases.
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, including but not limited to
9 general contractors and their subcontractors, who shall come
10 within the provisions of Section 3 of this Act, and any other
11 employer who shall elect to provide and pay the compensation
12 provided for in this Act shall:
13 (1) File with the Commission annually an
14 application for approval as a self-insurer which shall
15 include a current financial statement, and annually,
16 thereafter, an application for renewal of self-insurance,
17 which shall include a current financial statement. Said
18 application and financial statement shall be signed and
19 sworn to by the president or vice president and secretary
20 or assistant secretary of the employer if it be a
21 corporation, or by all of the partners, if it be a
22 copartnership, or by the owner if it be neither a
23 copartnership nor a corporation. All initial applications
24 and all applications for renewal of self-insurance must
25 be submitted at least 60 days prior to the requested
26 effective date of self-insurance.
27 If the sworn application and financial statement of
28 any such employer does not satisfy the Commission of the
29 financial ability of the employer who has filed it, the
30 Commission shall require such employer to,
31 (2) Furnish security, indemnity or a bond
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1 guaranteeing the payment by the employer of the
2 compensation provided for in this Act, provided that any
3 such employer whose application and financial statement
4 shall not have satisfied the commission of his or her
5 financial ability and who shall have secured his
6 liability in part by excess liability insurance shall be
7 required to furnish to the Commission security, indemnity
8 or bond guaranteeing his or her payment up to the
9 effective limits of the excess coverage, or
10 (3) Insure his entire liability to pay such
11 compensation in some insurance carrier authorized,
12 licensed, or permitted to do such insurance business in
13 this State. Every policy of an insurance carrier,
14 insuring the payment of compensation under this Act shall
15 cover all the employees and the entire compensation
16 liability of the insured: Provided, however, that any
17 employer may insure his or her compensation liability
18 with 2 or more insurance carriers or may insure a part
19 and qualify under subsection 1, 2, or 4 for the remainder
20 of his or her liability to pay such compensation, subject
21 to the following two provisions:
22 Firstly, the entire compensation liability of
23 the employer to employees working at or from one
24 location shall be insured in one such insurance
25 carrier or shall be self-insured, and
26 Secondly, the employer shall submit evidence
27 satisfactorily to the Commission that his or her
28 entire liability for the compensation provided for
29 in this Act will be secured. Any provisions in any
30 policy, or in any endorsement attached thereto,
31 attempting to limit or modify in any way, the
32 liability of the insurance carriers issuing the same
33 except as otherwise provided herein shall be wholly
34 void.
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1 Nothing herein contained shall apply to policies of
2 excess liability carriage secured by employers who have
3 been approved by the Commission as self-insurers, or
4 (4) Make some other provision, satisfactory to the
5 Commission, for the securing of the payment of
6 compensation provided for in this Act, and
7 (5) Upon becoming subject to this Act and
8 thereafter as often as the Commission may in writing
9 demand, file with the Commission in form prescribed by it
10 evidence of his or her compliance with the provision of
11 this Section.
12 (a-1) Regardless of its state of domicile or its
13 principal place of business, an employer shall make payments
14 to its insurance carrier or group self-insurance fund, where
15 applicable, based upon the premium rates of the situs where
16 the work or project is located in Illinois if:
17 (A) the employer is engaged primarily in the
18 building and construction industry; and
19 (B) subdivision (a)(3) of this Section applies to
20 the employer or the employer is a member of a group
21 self-insurance plan as defined in subsection (1) of
22 Section 4a.
23 The Industrial Commission shall impose a penalty upon an
24 employer for violation of this subsection (a-1) if:
25 (i) the employer is given an opportunity at a
26 hearing to present evidence of its compliance with this
27 subsection (a-1); and
28 (ii) after the hearing, the Commission finds that
29 the employer failed to make payments upon the premium
30 rates of the situs where the work or project is located
31 in Illinois.
32 The penalty shall not exceed $1,000 for each day of work
33 for which the employer failed to make payments upon the
34 premium rates of the situs where the work or project is
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1 located in Illinois, but the total penalty shall not exceed
2 $50,000 for each project or each contract under which the
3 work was performed.
4 Any penalty under this subsection (a-1) must be imposed
5 not later than one year after the expiration of the
6 applicable limitation period specified in subsection (d) of
7 Section 6 of this Act. Penalties imposed under this
8 subsection (a-1) shall be deposited into the Industrial
9 Commission Operations Fund, a special fund that is created
10 in the State treasury. Subject to appropriation, moneys in
11 the Fund shall be used solely for the operations of the
12 Industrial Commission.
13 (b) The sworn application and financial statement, or
14 security, indemnity or bond, or amount of insurance, or other
15 provisions, filed, furnished, carried, or made by the
16 employer, as the case may be, shall be subject to the
17 approval of the Commission.
18 Deposits under escrow agreements shall be cash,
19 negotiable United States government bonds or negotiable
20 general obligation bonds of the State of Illinois. Such cash
21 or bonds shall be deposited in escrow with any State or
22 National Bank or Trust Company having trust authority in the
23 State of Illinois.
24 Upon the approval of the sworn application and financial
25 statement, security, indemnity or bond or amount of
26 insurance, filed, furnished or carried, as the case may be,
27 the Commission shall send to the employer written notice of
28 its approval thereof. The certificate of compliance by the
29 employer with the provisions of subparagraphs (2) and (3) of
30 paragraph (a) of this Section shall be delivered by the
31 insurance carrier to the Industrial Commission within five
32 days after the effective date of the policy so certified.
33 The insurance so certified shall cover all compensation
34 liability occurring during the time that the insurance is in
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1 effect and no further certificate need be filed in case such
2 insurance is renewed, extended or otherwise continued by such
3 carrier. The insurance so certified shall not be cancelled
4 or in the event that such insurance is not renewed, extended
5 or otherwise continued, such insurance shall not be
6 terminated until at least 10 days after receipt by the
7 Industrial Commission of notice of the cancellation or
8 termination of said insurance; provided, however, that if the
9 employer has secured insurance from another insurance
10 carrier, or has otherwise secured the payment of compensation
11 in accordance with this Section, and such insurance or other
12 security becomes effective prior to the expiration of the 10
13 days, cancellation or termination may, at the option of the
14 insurance carrier indicated in such notice, be effective as
15 of the effective date of such other insurance or security.
16 (c) Whenever the Commission shall find that any
17 corporation, company, association, aggregation of
18 individuals, reciprocal or interinsurers exchange, or other
19 insurer effecting workers' compensation insurance in this
20 State shall be insolvent, financially unsound, or unable to
21 fully meet all payments and liabilities assumed or to be
22 assumed for compensation insurance in this State, or shall
23 practice a policy of delay or unfairness toward employees in
24 the adjustment, settlement, or payment of benefits due such
25 employees, the Commission may after reasonable notice and
26 hearing order and direct that such corporation, company,
27 association, aggregation of individuals, reciprocal or
28 interinsurers exchange, or insurer, shall from and after a
29 date fixed in such order discontinue the writing of any such
30 workers' compensation insurance in this State. Subject to
31 such modification of the order as the Commission may later
32 make on review of the order, as herein provided, it shall
33 thereupon be unlawful for any such corporation, company,
34 association, aggregation of individuals, reciprocal or
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1 interinsurers exchange, or insurer to effect any workers'
2 compensation insurance in this State. A copy of the order
3 shall be served upon the Director of Insurance by registered
4 mail. Whenever the Commission finds that any service or
5 adjustment company used or employed by a self-insured
6 employer or by an insurance carrier to process, adjust,
7 investigate, compromise or otherwise handle claims under this
8 Act, has practiced or is practicing a policy of delay or
9 unfairness toward employees in the adjustment, settlement or
10 payment of benefits due such employees, the Commission may
11 after reasonable notice and hearing order and direct that
12 such service or adjustment company shall from and after a
13 date fixed in such order be prohibited from processing,
14 adjusting, investigating, compromising or otherwise handling
15 claims under this Act.
16 Whenever the Commission finds that any self-insured
17 employer has practiced or is practicing delay or unfairness
18 toward employees in the adjustment, settlement or payment of
19 benefits due such employees, the Commission may, after
20 reasonable notice and hearing, order and direct that after a
21 date fixed in the order such self-insured employer shall be
22 disqualified to operate as a self-insurer and shall be
23 required to insure his entire liability to pay compensation
24 in some insurance carrier authorized, licensed and permitted
25 to do such insurance business in this State, as provided in
26 subparagraph 3 of paragraph (a) of this Section.
27 All orders made by the Commission under this Section
28 shall be subject to review by the courts, said review to be
29 taken in the same manner and within the same time as provided
30 by Section 19 of this Act for review of awards and decisions
31 of the Commission, upon the party seeking the review filing
32 with the clerk of the court to which said review is taken a
33 bond in an amount to be fixed and approved by the court to
34 which the review is taken, conditioned upon the payment of
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1 all compensation awarded against the person taking said
2 review pending a decision thereof and further conditioned
3 upon such other obligations as the court may impose. Upon
4 the review the Circuit Court shall have power to review all
5 questions of fact as well as of law. The penalty hereinafter
6 provided for in this paragraph shall not attach and shall not
7 begin to run until the final determination of the order of
8 the Commission.
9 (d) Upon a finding by the Commission, after reasonable
10 notice and hearing, of the knowing and wilful failure of an
11 employer to comply with any of the provisions of paragraph
12 (a) of this Section or the failure or refusal of an employer,
13 service or adjustment company, or an insurance carrier to
14 comply with any order of the Industrial Commission pursuant
15 to paragraph (c) of this Section disqualifying him or her to
16 operate as a self insurer and requiring him or her to insure
17 his or her liability, the Commission may assess a civil
18 penalty of up to $500 per day for each day of such failure or
19 refusal after the effective date of this amendatory Act of
20 1989. Each day of such failure or refusal shall constitute a
21 separate offense.
22 Upon the failure or refusal of any employer, service or
23 adjustment company or insurance carrier to comply with the
24 provisions of this Section and with the orders of the
25 Commission under this Section, or the order of the court on
26 review after final adjudication, the Commission may bring a
27 civil action to recover the amount of the penalty in Cook
28 County or in Sangamon County in which litigation the
29 Commission shall be represented by the Attorney General. The
30 Commission shall send notice of its finding of non-compliance
31 and assessment of the civil penalty to the Attorney General.
32 It shall be the duty of the Attorney General within 30 days
33 after receipt of the notice, to institute prosecutions and
34 promptly prosecute all reported violations of this Section.
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1 (e) This Act shall not affect or disturb the continuance
2 of any existing insurance, mutual aid, benefit, or relief
3 association or department, whether maintained in whole or in
4 part by the employer or whether maintained by the employees,
5 the payment of benefits of such association or department
6 being guaranteed by the employer or by some person, firm or
7 corporation for him or her: Provided, the employer
8 contributes to such association or department an amount not
9 less than the full compensation herein provided, exclusive of
10 the cost of the maintenance of such association or department
11 and without any expense to the employee. This Act shall not
12 prevent the organization and maintaining under the insurance
13 laws of this State of any benefit or insurance company for
14 the purpose of insuring against the compensation provided for
15 in this Act, the expense of which is maintained by the
16 employer. This Act shall not prevent the organization or
17 maintaining under the insurance laws of this State of any
18 voluntary mutual aid, benefit or relief association among
19 employees for the payment of additional accident or sick
20 benefits.
21 (f) No existing insurance, mutual aid, benefit or relief
22 association or department shall, by reason of anything herein
23 contained, be authorized to discontinue its operation without
24 first discharging its obligations to any and all persons
25 carrying insurance in the same or entitled to relief or
26 benefits therein.
27 (g) Any contract, oral, written or implied, of
28 employment providing for relief benefit, or insurance or any
29 other device whereby the employee is required to pay any
30 premium or premiums for insurance against the compensation
31 provided for in this Act shall be null and void. Any
32 employer withholding from the wages of any employee any
33 amount for the purpose of paying any such premium shall be
34 guilty of a Class B misdemeanor.
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1 In the event the employer does not pay the compensation
2 for which he or she is liable, then an insurance company,
3 association or insurer which may have insured such employer
4 against such liability shall become primarily liable to pay
5 to the employee, his or her personal representative or
6 beneficiary the compensation required by the provisions of
7 this Act to be paid by such employer. The insurance carrier
8 may be made a party to the proceedings in which the employer
9 is a party and an award may be entered jointly against the
10 employer and the insurance carrier.
11 (h) It shall be unlawful for any employer, insurance
12 company or service or adjustment company to interfere with,
13 restrain or coerce an employee in any manner whatsoever in
14 the exercise of the rights or remedies granted to him or her
15 by this Act or to discriminate, attempt to discriminate, or
16 threaten to discriminate against an employee in any way
17 because of his or her exercise of the rights or remedies
18 granted to him or her by this Act.
19 It shall be unlawful for any employer, individually or
20 through any insurance company or service or adjustment
21 company, to discharge or to threaten to discharge, or to
22 refuse to rehire or recall to active service in a suitable
23 capacity an employee because of the exercise of his or her
24 rights or remedies granted to him or her by this Act.
25 (i) If an employer elects to obtain a life insurance
26 policy on his employees, he may also elect to apply such
27 benefits in satisfaction of all or a portion of the death
28 benefits payable under this Act, in which case, the
29 employer's compensation premium shall be reduced accordingly.
30 (j) Within 45 days of receipt of an initial application
31 or application to renew self-insurance privileges the
32 Self-Insurers Advisory Board shall review and submit for
33 approval by the Chairman of the Commission recommendations of
34 disposition of all initial applications to self-insure and
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1 all applications to renew self-insurance privileges filed by
2 private self-insurers pursuant to the provisions of this
3 Section and Section 4a-9 of this Act. Each private
4 self-insurer shall submit with its initial and renewal
5 applications the application fee required by Section 4a-4 of
6 this Act.
7 The Chairman of the Commission shall promptly act upon
8 all initial applications and applications for renewal in full
9 accordance with the recommendations of the Board or, should
10 the Chairman disagree with any recommendation of disposition
11 of the Self-Insurer's Advisory Board, he shall within 30 days
12 of receipt of such recommendation provide to the Board in
13 writing the reasons supporting his decision. The Chairman
14 shall also promptly notify the employer of his decision
15 within 15 days of receipt of the recommendation of the Board.
16 If an employer is denied a renewal of self-insurance
17 privileges pursuant to application it shall retain said
18 privilege for 120 days after receipt of a notice of
19 cancellation of the privilege from the Chairman of the
20 Commission.
21 All orders made by the Chairman under this Section shall
22 be subject to review by the courts, such review to be taken
23 in the same manner and within the same time as provided by
24 subsection (f) of Section 19 of this Act for review of awards
25 and decisions of the Commission, upon the party seeking the
26 review filing with the clerk of the court to which such
27 review is taken a bond in an amount to be fixed and approved
28 by the court to which the review is taken, conditioned upon
29 the payment of all compensation awarded against the person
30 taking such review pending a decision thereof and further
31 conditioned upon such other obligations as the court may
32 impose. Upon the review the Circuit Court shall have power
33 to review all questions of fact as well as of law.
34 (Source: P.A. 90-109, eff. 1-1-98.)
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1 Section 10. The Workers' Occupational Diseases Act is
2 amended by changing Section 4 as follows:
3 (820 ILCS 310/4) (from Ch. 48, par. 172.39)
4 Sec. 4. (a) Any employer, including but not limited to
5 general contractors and their subcontractors, required by the
6 terms of this Act or by election to pay the compensation
7 provided for in this Act shall:
8 (1) File with the Commission an application for
9 approval as a self-insurer which shall include a current
10 financial statement. The application and financial
11 statement shall be signed and sworn to by the president
12 or vice-president and secretary or assistant secretary of
13 the employer if it be a corporation, or by all of the
14 partners if it be a copartnership, or by the owner if it
15 be neither a copartnership nor a corporation.
16 If the sworn application and financial statement of
17 any such employer does not satisfy the Commission of the
18 financial ability of the employer who has filed it, the
19 Commission shall require such employer to:
20 (2) Furnish security, indemnity or a bond
21 guaranteeing the payment by the employer of the
22 compensation provided for in this Act, provided that any
23 such employer who shall have secured his or her liability
24 in part by excess liability coverage shall be required to
25 furnish to the Commission security, indemnity or bond
26 guaranteeing his or her payment up to the amount of the
27 effective limits of the excess coverage in accordance
28 with the provisions of this paragraph, or
29 (3) Insure his or her entire liability to pay such
30 compensation in some insurance carrier authorized,
31 licensed or permitted to do such insurance business in
32 this State. All policies of such insurance carriers
33 insuring the payment of compensation under this Act shall
HB1587 Enrolled -12- LRB9103672WHdv
1 cover all the employees and all such employer's
2 compensation liability in all cases in which the last day
3 of the last exposure to the occupational disease involved
4 is within the effective period of the policy, anything to
5 the contrary in the policy notwithstanding. Provided,
6 however, that any employer may insure his or her
7 compensation liability under this Act with 2 or more
8 insurance carriers or may insure a part and qualify under
9 Subsection 1, 2, or 4 for the remainder of his liability
10 to pay such compensation, subject to the following two
11 provisions:
12 Firstly, the entire liability of the employer
13 to employees working at or from one location shall
14 be insured in one such insurance carrier or shall be
15 self-insured.
16 Secondly, the employer shall submit evidence
17 satisfactory to the Commission that his or her
18 entire liability for the compensation provided for
19 in this Act will be secured.
20 Any provision in a policy or in any endorsement
21 attached thereto attempting to limit or modify in any way
22 the liability of the insurance carrier issuing the same,
23 except as otherwise provided herein, shall be wholly
24 void.
25 The insurance or security in force to cover
26 compensation liability under this Act shall be separate
27 and distinct from the insurance or security under the
28 "Workers' Compensation Act" and any insurance contract
29 covering liability under either Act need not cover any
30 liability under the other. Nothing herein contained
31 shall apply to policies of excess liability carriage
32 secured by employers who have been approved by the
33 Commission as self-insurers, or
34 (4) Make some other provision, satisfactory to the
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1 Commission, for the securing of the payment of
2 compensation provided for in this Act, and
3 (5) Upon becoming subject to this Act and
4 thereafter as often as the Commission may in writing
5 demand, file with the Commission in form prescribed by it
6 evidence of his or her compliance with the provision of
7 this Section.
8 (a-1) Regardless of its state of domicile or its
9 principal place of business, an employer shall make payments
10 to its insurance carrier or group self-insurance fund, where
11 applicable, based upon the premium rates of the situs where
12 the work or project is located in Illinois if:
13 (A) the employer is engaged primarily in the
14 building and construction industry; and
15 (B) subdivision (a)(3) of this Section applies to
16 the employer or the employer is a member of a group
17 self-insurance plan as defined in subsection (1) of
18 Section 4a.
19 The Industrial Commission shall impose a penalty upon an
20 employer for violation of this subsection (a-1) if:
21 (i) the employer is given an opportunity at a
22 hearing to present evidence of its compliance with this
23 subsection (a-1); and
24 (ii) after the hearing, the Commission finds that
25 the employer failed to make payments upon the premium
26 rates of the situs where the work or project is located
27 in Illinois.
28 The penalty shall not exceed $1,000 for each day of work
29 for which the employer failed to make payments upon the
30 premium rates of the situs where the work or project is
31 located in Illinois, but the total penalty shall not exceed
32 $50,000 for each project or each contract under which the
33 work was performed.
34 Any penalty under this subsection (a-1) must be imposed
HB1587 Enrolled -14- LRB9103672WHdv
1 not later than one year after the expiration of the
2 applicable limitation period specified in subsection (c) of
3 Section 6 of this Act. Penalties imposed under this
4 subsection (a-1) shall be deposited into the Industrial
5 Commission Operations Fund created under Section 4 of the
6 Workers' Compensation Act.
7 (b) The sworn application and financial statement, or
8 security, indemnity or bond, or amount of insurance, or other
9 provisions, filed, furnished, carried, or made by the
10 employer, as the case may be, shall be subject to the
11 approval of the Commission.
12 Deposits under escrow agreements shall be cash,
13 negotiable United States government bonds or negotiable
14 general obligation bonds of the State of Illinois. Such cash
15 or bonds shall be deposited in escrow with any State or
16 National Bank or Trust Company having trust authority in the
17 State of Illinois.
18 Upon the approval of the sworn application and financial
19 statement, security, indemnity or bond or amount of
20 insurance, filed, furnished, or carried, as the case may be,
21 the Commission shall send to the employer written notice of
22 its approval thereof. Said certificate of compliance by the
23 employer with the provisions of subparagraphs (2) and (3) of
24 paragraph (a) of this Section shall be delivered by the
25 insurance carrier to the Industrial Commission within 5 days
26 after the effective date of the policy so certified. The
27 insurance so certified shall cover all compensation liability
28 occurring during the time that the insurance is in effect and
29 no further certificate need be filed in case such insurance
30 is renewed, extended or otherwise continued by such carrier.
31 The insurance so certified shall not be cancelled or in the
32 event that such insurance is not renewed, extended or
33 otherwise continued, such insurance shall not be terminated
34 until at least 10 days after receipt by the Industrial
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1 Commission of notice of the cancellation or termination of
2 said insurance; provided, however, that if the employer has
3 secured insurance from another insurance carrier, or has
4 otherwise secured the payment of compensation in accordance
5 with this Section, and such insurance or other security
6 becomes effective prior to the expiration of said 10 days,
7 cancellation or termination may, at the option of the
8 insurance carrier indicated in such notice, be effective as
9 of the effective date of such other insurance or security.
10 (c) Whenever the Commission shall find that any
11 corporation, company, association, aggregation of
12 individuals, reciprocal or interinsurers exchange, or other
13 insurer effecting workers' occupational disease compensation
14 insurance in this State shall be insolvent, financially
15 unsound, or unable to fully meet all payments and liabilities
16 assumed or to be assumed for compensation insurance in this
17 State, or shall practice a policy of delay or unfairness
18 toward employees in the adjustment, settlement, or payment of
19 benefits due such employees, the Commission may after
20 reasonable notice and hearing order and direct that such
21 corporation, company, association, aggregation of
22 individuals, reciprocal or interinsurers exchange, or
23 insurer, shall from and after a date fixed in such order
24 discontinue the writing of any such workers' occupational
25 disease compensation insurance in this State. It shall
26 thereupon be unlawful for any such corporation, company,
27 association, aggregation of individuals, reciprocal or
28 interinsurers exchange, or insurer to effect any workers'
29 occupational disease compensation insurance in this State. A
30 copy of the order shall be served upon the Director of
31 Insurance by registered mail. Whenever the Commission finds
32 that any service or adjustment company used or employed by a
33 self-insured employer or by an insurance carrier to process,
34 adjust, investigate, compromise or otherwise handle claims
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1 under this Act, has practiced or is practicing a policy of
2 delay or unfairness toward employees in the adjustment,
3 settlement or payment of benefits due such employees, the
4 Commission may after reasonable notice and hearing order and
5 direct that such service or adjustment company shall from and
6 after a date fixed in such order be prohibited from
7 processing, adjusting, investigating, compromising or
8 otherwise handling claims under this Act.
9 Whenever the Commission finds that any self-insured
10 employer has practiced or is practicing delay or unfairness
11 toward employees in the adjustment, settlement or payment of
12 benefits due such employees, the Commission may after
13 reasonable notice and hearing order and direct that after a
14 date fixed in the order such self-insured employer shall be
15 disqualified to operate as a self-insurer and shall be
16 required to insure his entire liability to pay compensation
17 in some insurance carrier authorized, licensed and permitted
18 to do such insurance business in this State as provided in
19 subparagraph (3) of paragraph (a) of this Section.
20 All orders made by the Commission under this Section
21 shall be subject to review by the courts, the review to be
22 taken in the same manner and within the same time as provided
23 by Section 19 of this Act for review of awards and decisions
24 of the Commission, upon the party seeking the review filing
25 with the clerk of the court to which said review is taken a
26 bond in an amount to be fixed and approved by the court to
27 which said review is taken, conditioned upon the payment of
28 all compensation awarded against the person taking the review
29 pending a decision thereof and further conditioned upon such
30 other obligations as the court may impose. Upon the review
31 the Circuit Court shall have power to review all questions of
32 fact as well as of law. The penalty hereinafter provided for
33 in this paragraph shall not attach and shall not begin to run
34 until the final determination of the order of the Commission.
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1 (d) Upon a finding by the Commission, after reasonable
2 notice and hearing, of the knowing and wilful failure of an
3 employer to comply with any of the provisions of paragraph
4 (a) of this Section or the failure or refusal of an employer,
5 service or adjustment company, or insurance carrier to comply
6 with any order of the Industrial Commission pursuant to
7 paragraph (c) of this Section the Commission may assess a
8 civil penalty of up to $500 per day for each day of such
9 failure or refusal after the effective date of this
10 amendatory Act of 1989. Each day of such failure or refusal
11 shall constitute a separate offense.
12 Upon the failure or refusal of any employer, service or
13 adjustment company or insurance carrier to comply with the
14 provisions of this Section and orders of the Commission under
15 this Section, or the order of the court on review after final
16 adjudication, the Commission may bring a civil action to
17 recover the amount of the penalty in Cook County or in
18 Sangamon County in which litigation the Commission shall be
19 represented by the Attorney General. The Commission shall
20 send notice of its finding of non-compliance and assessment
21 of the civil penalty to the Attorney General. It shall be
22 the duty of the Attorney General within 30 days after receipt
23 of the notice, to institute prosecutions and promptly
24 prosecute all reported violations of this Section.
25 (e) This Act shall not affect or disturb the continuance
26 of any existing insurance, mutual aid, benefit, or relief
27 association or department, whether maintained in whole or in
28 part by the employer or whether maintained by the employees,
29 the payment of benefits of such association or department
30 being guaranteed by the employer or by some person, firm or
31 corporation for him or her: Provided, the employer
32 contributes to such association or department an amount not
33 less than the full compensation herein provided, exclusive of
34 the cost of the maintenance of such association or department
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1 and without any expense to the employee. This Act shall not
2 prevent the organization and maintaining under the insurance
3 laws of this State of any benefit or insurance company for
4 the purpose of insuring against the compensation provided for
5 in this Act, the expense of which is maintained by the
6 employer. This Act shall not prevent the organization or
7 maintaining under the insurance laws of this State of any
8 voluntary mutual aid, benefit or relief association among
9 employees for the payment of additional accident or sick
10 benefits.
11 (f) No existing insurance, mutual aid, benefit or relief
12 association or department shall, by reason of anything herein
13 contained, be authorized to discontinue its operation without
14 first discharging its obligations to any and all persons
15 carrying insurance in the same or entitled to relief or
16 benefits therein.
17 (g) Any contract, oral, written or implied, of
18 employment providing for relief benefit, or insurance or any
19 other device whereby the employee is required to pay any
20 premium or premiums for insurance against the compensation
21 provided for in this Act shall be null and void. Any
22 employer withholding from the wages of any employee any
23 amount for the purpose of paying any such premium shall be
24 guilty of a Class B misdemeanor.
25 In the event the employer does not pay the compensation
26 for which he or she is liable, then an insurance company,
27 association or insurer which may have insured such employer
28 against such liability shall become primarily liable to pay
29 to the employee, his personal representative or beneficiary
30 the compensation required by the provisions of this Act to be
31 paid by such employer. The insurance carrier may be made a
32 party to the proceedings in which the employer is a party and
33 an award may be entered jointly against the employer and the
34 insurance carrier.
HB1587 Enrolled -19- LRB9103672WHdv
1 (h) It shall be unlawful for any employer, insurance
2 company or service or adjustment company to interfere with,
3 restrain or coerce an employee in any manner whatsoever in
4 the exercise of the rights or remedies granted to him or her
5 by this Act or to discriminate, attempt to discriminate, or
6 threaten to discriminate against an employee in any way
7 because of his exercise of the rights or remedies granted to
8 him by this Act.
9 It shall be unlawful for any employer, individually or
10 through any insurance company or service or adjustment
11 company, to discharge or to threaten to discharge, or to
12 refuse to rehire or recall to active service in a suitable
13 capacity an employee because of the exercise of his or her
14 rights or remedies granted to him or her by this Act.
15 (i) If an employer elects to obtain a life insurance
16 policy on his employees, he may also elect to apply such
17 benefits in satisfaction of all or a portion of the death
18 benefits payable under this Act, in which case, the
19 employer's premium for coverage for benefits under this Act
20 shall be reduced accordingly.
21 (Source: P.A. 90-109, eff. 1-1-98.)
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