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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1521 Introduced 2/13/2013, by Sen. Heather A. Steans SYNOPSIS AS INTRODUCED:
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| 215 ILCS 5/462b | from Ch. 73, par. 1065.9b |
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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.
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| | A BILL FOR |
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| | SB1521 | | LRB098 07567 RPM 37638 b |
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| 1 | | AN ACT concerning insurance.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Insurance Code is amended by |
| 5 | | changing Section 462b as follows:
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| 6 | | (215 ILCS 5/462b) (from Ch. 73, par. 1065.9b)
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| 7 | | Sec. 462b. Premiums. |
| 8 | | (a) Insurance companies shall apply correct |
| 9 | | classifications,
payrolls and other factors of a rating system |
| 10 | | to compute premiums. If the
application of incorrect |
| 11 | | classifications, payrolls or any other factors
of a rating |
| 12 | | system results in the payment by an insured of premiums in |
| 13 | | excess
of the premiums that would have been paid utilizing the |
| 14 | | correct applications
of classifications, payrolls or other |
| 15 | | factors of a rating system, the insurer
shall refund to the |
| 16 | | insured the excessive premium paid for the period during
which |
| 17 | | the incorrect application of classifications, payrolls or |
| 18 | | other factors
of a rating system were applied. This subsection |
| 19 | | Section is intended to codify existing
law and practice. |
| 20 | | (b) In addition to the refund under subsection (a), the |
| 21 | | insurer shall pay 5% interest on the excessive premium paid |
| 22 | | from the date of inception of the workers' compensation policy |
| 23 | | on which the excessive premium was paid through the date on |