HB0269 EnrolledLRB101 04059 TAE 49067 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Workers' Compensation Act is amended by
5changing Sections 4 and 4a-5 as follows:
 
6    (820 ILCS 305/4)  (from Ch. 48, par. 138.4)
7    Sec. 4. (a) Any employer, including but not limited to
8general contractors and their subcontractors, who shall come
9within the provisions of Section 3 of this Act, and any other
10employer who shall elect to provide and pay the compensation
11provided for in this Act shall:
12        (1) File with the Commission annually an application
13    for approval as a self-insurer which shall include a
14    current financial statement, and annually, thereafter, an
15    application for renewal of self-insurance, which shall
16    include a current financial statement. Said application
17    and financial statement shall be signed and sworn to by the
18    president or vice president and secretary or assistant
19    secretary of the employer if it be a corporation, or by all
20    of the partners, if it be a copartnership, or by the owner
21    if it be neither a copartnership nor a corporation. All
22    initial applications and all applications for renewal of
23    self-insurance must be submitted at least 60 days prior to

 

 

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1    the requested effective date of self-insurance. An
2    employer may elect to provide and pay compensation as
3    provided for in this Act as a member of a group workers'
4    compensation pool under Article V 3/4 of the Illinois
5    Insurance Code. If an employer becomes a member of a group
6    workers' compensation pool, the employer shall not be
7    relieved of any obligations imposed by this Act.
8        If the sworn application and financial statement of any
9    such employer does not satisfy the Commission of the
10    financial ability of the employer who has filed it, the
11    Commission shall require such employer to,
12        (2) Furnish security, indemnity or a bond guaranteeing
13    the payment by the employer of the compensation provided
14    for in this Act, provided that any such employer whose
15    application and financial statement shall not have
16    satisfied the commission of his or her financial ability
17    and who shall have secured his liability in part by excess
18    liability insurance shall be required to furnish to the
19    Commission security, indemnity or bond guaranteeing his or
20    her payment up to the effective limits of the excess
21    coverage, or
22        (3) Insure his entire liability to pay such
23    compensation in some insurance carrier authorized,
24    licensed, or permitted to do such insurance business in
25    this State. Every policy of an insurance carrier, insuring
26    the payment of compensation under this Act shall cover all

 

 

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1    the employees and the entire compensation liability of the
2    insured: Provided, however, that any employer may insure
3    his or her compensation liability with 2 or more insurance
4    carriers or may insure a part and qualify under subsection
5    1, 2, or 4 for the remainder of his or her liability to pay
6    such compensation, subject to the following two
7    provisions:
8            Firstly, the entire compensation liability of the
9        employer to employees working at or from one location
10        shall be insured in one such insurance carrier or shall
11        be self-insured, and
12            Secondly, the employer shall submit evidence
13        satisfactorily to the Commission that his or her entire
14        liability for the compensation provided for in this Act
15        will be secured. Any provisions in any policy, or in
16        any endorsement attached thereto, attempting to limit
17        or modify in any way, the liability of the insurance
18        carriers issuing the same except as otherwise provided
19        herein shall be wholly void.
20        Nothing herein contained shall apply to policies of
21    excess liability carriage secured by employers who have
22    been approved by the Commission as self-insurers, or
23        (4) Make some other provision, satisfactory to the
24    Commission, for the securing of the payment of compensation
25    provided for in this Act, and
26        (5) Upon becoming subject to this Act and thereafter as

 

 

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1    often as the Commission may in writing demand, file with
2    the Commission in form prescribed by it evidence of his or
3    her compliance with the provision of this Section.
4    (a-1) Regardless of its state of domicile or its principal
5place of business, an employer shall make payments to its
6insurance carrier or group self-insurance fund, where
7applicable, based upon the premium rates of the situs where the
8work or project is located in Illinois if:
9        (A) the employer is engaged primarily in the building
10    and construction industry; and
11        (B) subdivision (a)(3) of this Section applies to the
12    employer or the employer is a member of a group
13    self-insurance plan as defined in subsection (1) of Section
14    4a.
15    The Illinois Workers' Compensation Commission shall impose
16a penalty upon an employer for violation of this subsection
17(a-1) if:
18        (i) the employer is given an opportunity at a hearing
19    to present evidence of its compliance with this subsection
20    (a-1); and
21        (ii) after the hearing, the Commission finds that the
22    employer failed to make payments upon the premium rates of
23    the situs where the work or project is located in Illinois.
24    The penalty shall not exceed $1,000 for each day of work
25for which the employer failed to make payments upon the premium
26rates of the situs where the work or project is located in

 

 

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1Illinois, but the total penalty shall not exceed $50,000 for
2each project or each contract under which the work was
3performed.
4    Any penalty under this subsection (a-1) must be imposed not
5later than one year after the expiration of the applicable
6limitation period specified in subsection (d) of Section 6 of
7this Act. Penalties imposed under this subsection (a-1) shall
8be deposited into the Illinois Workers' Compensation
9Commission Operations Fund, a special fund that is created in
10the State treasury. Subject to appropriation, moneys in the
11Fund shall be used solely for the operations of the Illinois
12Workers' Compensation Commission, the salaries and benefits of
13the Self-Insurers Advisory Board employees, the operating
14costs of the Self-Insurers Advisory Board, and by the
15Department of Insurance for the purposes authorized in
16subsection (c) of Section 25.5 of this Act.
17    (a-2) Every Employee Leasing Company (ELC), as defined in
18Section 15 of the Employee Leasing Company Act, shall at a
19minimum provide the following information to the Commission or
20any entity designated by the Commission regarding each workers'
21compensation insurance policy issued to the ELC:
22        (1) Any client company of the ELC listed as an
23    additional named insured.
24        (2) Any informational schedule attached to the master
25    policy that identifies any individual client company's
26    name, FEIN, and job location.

 

 

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1        (3) Any certificate of insurance coverage document
2    issued to a client company specifying its rights and
3    obligations under the master policy that establishes both
4    the identity and status of the client, as well as the dates
5    of inception and termination of coverage, if applicable.
6    (b) The sworn application and financial statement, or
7security, indemnity or bond, or amount of insurance, or other
8provisions, filed, furnished, carried, or made by the employer,
9as the case may be, shall be subject to the approval of the
10Commission.
11    Deposits under escrow agreements shall be cash, negotiable
12United States government bonds or negotiable general
13obligation bonds of the State of Illinois. Such cash or bonds
14shall be deposited in escrow with any State or National Bank or
15Trust Company having trust authority in the State of Illinois.
16    Upon the approval of the sworn application and financial
17statement, security, indemnity or bond or amount of insurance,
18filed, furnished or carried, as the case may be, the Commission
19shall send to the employer written notice of its approval
20thereof. The certificate of compliance by the employer with the
21provisions of subparagraphs (2) and (3) of paragraph (a) of
22this Section shall be delivered by the insurance carrier to the
23Illinois Workers' Compensation Commission within five days
24after the effective date of the policy so certified. The
25insurance so certified shall cover all compensation liability
26occurring during the time that the insurance is in effect and

 

 

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1no further certificate need be filed in case such insurance is
2renewed, extended or otherwise continued by such carrier. The
3insurance so certified shall not be cancelled or in the event
4that such insurance is not renewed, extended or otherwise
5continued, such insurance shall not be terminated until at
6least 10 days after receipt by the Illinois Workers'
7Compensation Commission of notice of the cancellation or
8termination of said insurance; provided, however, that if the
9employer has secured insurance from another insurance carrier,
10or has otherwise secured the payment of compensation in
11accordance with this Section, and such insurance or other
12security becomes effective prior to the expiration of the 10
13days, cancellation or termination may, at the option of the
14insurance carrier indicated in such notice, be effective as of
15the effective date of such other insurance or security.
16    (c) Whenever the Commission shall find that any
17corporation, company, association, aggregation of individuals,
18reciprocal or interinsurers exchange, or other insurer
19effecting workers' compensation insurance in this State shall
20be insolvent, financially unsound, or unable to fully meet all
21payments and liabilities assumed or to be assumed for
22compensation insurance in this State, or shall practice a
23policy of delay or unfairness toward employees in the
24adjustment, settlement, or payment of benefits due such
25employees, the Commission may after reasonable notice and
26hearing order and direct that such corporation, company,

 

 

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1association, aggregation of individuals, reciprocal or
2interinsurers exchange, or insurer, shall from and after a date
3fixed in such order discontinue the writing of any such
4workers' compensation insurance in this State. Subject to such
5modification of the order as the Commission may later make on
6review of the order, as herein provided, it shall thereupon be
7unlawful for any such corporation, company, association,
8aggregation of individuals, reciprocal or interinsurers
9exchange, or insurer to effect any workers' compensation
10insurance in this State. A copy of the order shall be served
11upon the Director of Insurance by registered mail. Whenever the
12Commission finds that any service or adjustment company used or
13employed by a self-insured employer or by an insurance carrier
14to process, adjust, investigate, compromise or otherwise
15handle claims under this Act, has practiced or is practicing a
16policy of delay or unfairness toward employees in the
17adjustment, settlement or payment of benefits due such
18employees, the Commission may after reasonable notice and
19hearing order and direct that such service or adjustment
20company shall from and after a date fixed in such order be
21prohibited from processing, adjusting, investigating,
22compromising or otherwise handling claims under this Act.
23    Whenever the Commission finds that any self-insured
24employer has practiced or is practicing delay or unfairness
25toward employees in the adjustment, settlement or payment of
26benefits due such employees, the Commission may, after

 

 

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1reasonable notice and hearing, order and direct that after a
2date fixed in the order such self-insured employer shall be
3disqualified to operate as a self-insurer and shall be required
4to insure his entire liability to pay compensation in some
5insurance carrier authorized, licensed and permitted to do such
6insurance business in this State, as provided in subparagraph 3
7of paragraph (a) of this Section.
8    All orders made by the Commission under this Section shall
9be subject to review by the courts, said review to be taken in
10the same manner and within the same time as provided by Section
1119 of this Act for review of awards and decisions of the
12Commission, upon the party seeking the review filing with the
13clerk of the court to which said review is taken a bond in an
14amount to be fixed and approved by the court to which the
15review is taken, conditioned upon the payment of all
16compensation awarded against the person taking said review
17pending a decision thereof and further conditioned upon such
18other obligations as the court may impose. Upon the review the
19Circuit Court shall have power to review all questions of fact
20as well as of law. The penalty hereinafter provided for in this
21paragraph shall not attach and shall not begin to run until the
22final determination of the order of the Commission.
23    (d) Whenever a Commissioner, with due process and after a
24hearing, determines an employer has knowingly failed to provide
25coverage as required by paragraph (a) of this Section, the
26failure shall be deemed an immediate serious danger to public

 

 

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1health, safety, and welfare sufficient to justify service by
2the Commission of a work-stop order on such employer, requiring
3the cessation of all business operations of such employer at
4the place of employment or job site. If a business is declared
5to be extra hazardous, as defined in Section 3, a Commissioner
6may issue an emergency work-stop order on such an employer ex
7parte, prior to holding a hearing, requiring the cessation of
8all business operations of such employer at the place of
9employment or job site while awaiting the ruling of the
10Commission. Whenever a Commissioner issues an emergency
11work-stop order, the Commission shall issue a notice of
12emergency work-stop hearing to be posted at the employer's
13places of employment and job sites. Whenever a panel of 3
14Commissioners comprised of one member of the employing class,
15one member of the employee class, and one member not identified
16with either the employing or employee class, with due process
17and after a hearing, determines an employer has knowingly
18failed to provide coverage as required by paragraph (a) of this
19Section, the failure shall be deemed an immediate serious
20danger to public health, safety, and welfare sufficient to
21justify service by the Commission of a work-stop order on such
22employer, requiring the cessation of all business operations of
23such employer at the place of employment or job site. Any law
24enforcement agency in the State shall, at the request of the
25Commission, render any assistance necessary to carry out the
26provisions of this Section, including, but not limited to,

 

 

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1preventing any employee of such employer from remaining at a
2place of employment or job site after a work-stop order has
3taken effect. Any work-stop order shall be lifted upon proof of
4insurance as required by this Act. Any orders under this
5Section are appealable under Section 19(f) to the Circuit
6Court.
7    Any individual employer, corporate officer or director of a
8corporate employer, partner of an employer partnership, or
9member of an employer limited liability company who knowingly
10fails to provide coverage as required by paragraph (a) of this
11Section is guilty of a Class 4 felony. This provision shall not
12apply to any corporate officer or director of any
13publicly-owned corporation. Each day's violation constitutes a
14separate offense. The State's Attorney of the county in which
15the violation occurred, or the Attorney General, shall bring
16such actions in the name of the People of the State of
17Illinois, or may, in addition to other remedies provided in
18this Section, bring an action for an injunction to restrain the
19violation or to enjoin the operation of any such employer.
20    Any individual employer, corporate officer or director of a
21corporate employer, partner of an employer partnership, or
22member of an employer limited liability company who negligently
23fails to provide coverage as required by paragraph (a) of this
24Section is guilty of a Class A misdemeanor. This provision
25shall not apply to any corporate officer or director of any
26publicly-owned corporation. Each day's violation constitutes a

 

 

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1separate offense. The State's Attorney of the county in which
2the violation occurred, or the Attorney General, shall bring
3such actions in the name of the People of the State of
4Illinois.
5    The criminal penalties in this subsection (d) shall not
6apply where there exists a good faith dispute as to the
7existence of an employment relationship. Evidence of good faith
8shall include, but not be limited to, compliance with the
9definition of employee as used by the Internal Revenue Service.
10    All investigative actions must be acted upon within 90 days
11of the issuance of the complaint. Employers who are subject to
12and who knowingly fail to comply with this Section shall not be
13entitled to the benefits of this Act during the period of
14noncompliance, but shall be liable in an action under any other
15applicable law of this State. In the action, such employer
16shall not avail himself or herself of the defenses of
17assumption of risk or negligence or that the injury was due to
18a co-employee. In the action, proof of the injury shall
19constitute prima facie evidence of negligence on the part of
20such employer and the burden shall be on such employer to show
21freedom of negligence resulting in the injury. The employer
22shall not join any other defendant in any such civil action.
23Nothing in this amendatory Act of the 94th General Assembly
24shall affect the employee's rights under subdivision (a)3 of
25Section 1 of this Act. Any employer or carrier who makes
26payments under subdivision (a)3 of Section 1 of this Act shall

 

 

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1have a right of reimbursement from the proceeds of any recovery
2under this Section.
3    An employee of an uninsured employer, or the employee's
4dependents in case death ensued, may, instead of proceeding
5against the employer in a civil action in court, file an
6application for adjustment of claim with the Commission in
7accordance with the provisions of this Act and the Commission
8shall hear and determine the application for adjustment of
9claim in the manner in which other claims are heard and
10determined before the Commission.
11    All proceedings under this subsection (d) shall be reported
12on an annual basis to the Workers' Compensation Advisory Board.
13    An investigator with the Illinois Workers' Compensation
14Commission Insurance Compliance Division may issue a citation
15to any employer that is not in compliance with its obligation
16to have workers' compensation insurance under this Act. The
17amount of the fine shall be based on the period of time the
18employer was in non-compliance, but shall be no less than $500,
19and shall not exceed $10,000 $2,500. An employer that has been
20issued a citation shall pay the fine to the Commission and
21provide to the Commission proof that it obtained the required
22workers' compensation insurance within 10 days after the
23citation was issued. This Section does not affect any other
24obligations this Act imposes on employers.
25    Upon a finding by the Commission, after reasonable notice
26and hearing, of the knowing and willful wilful failure or

 

 

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1refusal of an employer to comply with any of the provisions of
2paragraph (a) of this Section, the failure or refusal of an
3employer, service or adjustment company, or an insurance
4carrier to comply with any order of the Illinois Workers'
5Compensation Commission pursuant to paragraph (c) of this
6Section disqualifying him or her to operate as a self insurer
7and requiring him or her to insure his or her liability, or the
8knowing and willful failure of an employer to comply with a
9citation issued by an investigator with the Illinois Workers'
10Compensation Commission Insurance Compliance Division, the
11Commission may assess a civil penalty of up to $500 per day for
12each day of such failure or refusal after the effective date of
13this amendatory Act of 1989. The minimum penalty under this
14Section shall be the sum of $10,000. Each day of such failure
15or refusal shall constitute a separate offense. The Commission
16may assess the civil penalty personally and individually
17against the corporate officers and directors of a corporate
18employer, the partners of an employer partnership, and the
19members of an employer limited liability company, after a
20finding of a knowing and willful refusal or failure of each
21such named corporate officer, director, partner, or member to
22comply with this Section. The liability for the assessed
23penalty shall be against the named employer first, and if the
24named employer fails or refuses to pay the penalty to the
25Commission within 30 days after the final order of the
26Commission, then the named corporate officers, directors,

 

 

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1partners, or members who have been found to have knowingly and
2willfully refused or failed to comply with this Section shall
3be liable for the unpaid penalty or any unpaid portion of the
4penalty. Upon investigation by the insurance non-compliance
5unit of the Commission, the Attorney General shall have the
6authority to prosecute all proceedings to enforce the civil and
7administrative provisions of this Section before the
8Commission. The Commission shall promulgate procedural rules
9for enforcing this Section.
10    If an employer is found to be in non-compliance with any
11provisions of paragraph (a) of this Section more than once, all
12minimum penalties will double. Therefore, upon the failure or
13refusal of an employer, service or adjustment company, or
14insurance carrier to comply with any order of the Commission
15pursuant to paragraph (c) of this Section disqualifying him or
16her to operate as a self-insurer and requiring him or her to
17insure his or her liability, or the knowing and willful failure
18of an employer to comply with a citation issued by an
19investigator with the Illinois Workers' Compensation
20Commission Insurance Compliance Division, the Commission may
21assess a civil penalty of up to $1,000 per day for each day of
22such failure or refusal after the effective date of this
23amendatory Act of the 101st General Assembly. The minimum
24penalty under this Section shall be the sum of $20,000. In
25addition, employers with 2 or more violations of any provisions
26of paragraph (a) of this Section may not self-insure for one

 

 

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1year or until all penalties are paid.
2    Upon the failure or refusal of any employer, service or
3adjustment company or insurance carrier to comply with the
4provisions of this Section and with the orders of the
5Commission under this Section, or the order of the court on
6review after final adjudication, the Commission may bring a
7civil action to recover the amount of the penalty in Cook
8County or in Sangamon County in which litigation the Commission
9shall be represented by the Attorney General. The Commission
10shall send notice of its finding of non-compliance and
11assessment of the civil penalty to the Attorney General. It
12shall be the duty of the Attorney General within 30 days after
13receipt of the notice, to institute prosecutions and promptly
14prosecute all reported violations of this Section.
15    Any individual employer, corporate officer or director of a
16corporate employer, partner of an employer partnership, or
17member of an employer limited liability company who, with the
18intent to avoid payment of compensation under this Act to an
19injured employee or the employee's dependents, knowingly
20transfers, sells, encumbers, assigns, or in any manner disposes
21of, conceals, secretes, or destroys any property belonging to
22the employer, officer, director, partner, or member is guilty
23of a Class 4 felony.
24    Penalties and fines collected pursuant to this paragraph
25(d) shall be deposited upon receipt into a special fund which
26shall be designated the Injured Workers' Benefit Fund, of which

 

 

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1the State Treasurer is ex-officio custodian, such special fund
2to be held and disbursed in accordance with this paragraph (d)
3for the purposes hereinafter stated in this paragraph (d), upon
4the final order of the Commission. The Injured Workers' Benefit
5Fund shall be deposited the same as are State funds and any
6interest accruing thereon shall be added thereto every 6
7months. The Injured Workers' Benefit Fund is subject to audit
8the same as State funds and accounts and is protected by the
9general bond given by the State Treasurer. The Injured Workers'
10Benefit Fund is considered always appropriated for the purposes
11of disbursements as provided in this paragraph, and shall be
12paid out and disbursed as herein provided and shall not at any
13time be appropriated or diverted to any other use or purpose.
14Moneys in the Injured Workers' Benefit Fund shall be used only
15for payment of workers' compensation benefits for injured
16employees when the employer has failed to provide coverage as
17determined under this paragraph (d) and has failed to pay the
18benefits due to the injured employee. The Commission shall have
19the right to obtain reimbursement from the employer for
20compensation obligations paid by the Injured Workers' Benefit
21Fund. Any such amounts obtained shall be deposited by the
22Commission into the Injured Workers' Benefit Fund. If an
23injured employee or his or her personal representative receives
24payment from the Injured Workers' Benefit Fund, the State of
25Illinois has the same rights under paragraph (b) of Section 5
26that the employer who failed to pay the benefits due to the

 

 

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1injured employee would have had if the employer had paid those
2benefits, and any moneys recovered by the State as a result of
3the State's exercise of its rights under paragraph (b) of
4Section 5 shall be deposited into the Injured Workers' Benefit
5Fund. The custodian of the Injured Workers' Benefit Fund shall
6be joined with the employer as a party respondent in the
7application for adjustment of claim. After July 1, 2006, the
8Commission shall make disbursements from the Fund once each
9year to each eligible claimant. An eligible claimant is an
10injured worker who has within the previous fiscal year obtained
11a final award for benefits from the Commission against the
12employer and the Injured Workers' Benefit Fund and has notified
13the Commission within 90 days of receipt of such award. Within
14a reasonable time after the end of each fiscal year, the
15Commission shall make a disbursement to each eligible claimant.
16At the time of disbursement, if there are insufficient moneys
17in the Fund to pay all claims, each eligible claimant shall
18receive a pro-rata share, as determined by the Commission, of
19the available moneys in the Fund for that year. Payment from
20the Injured Workers' Benefit Fund to an eligible claimant
21pursuant to this provision shall discharge the obligations of
22the Injured Workers' Benefit Fund regarding the award entered
23by the Commission.
24    (e) This Act shall not affect or disturb the continuance of
25any existing insurance, mutual aid, benefit, or relief
26association or department, whether maintained in whole or in

 

 

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1part by the employer or whether maintained by the employees,
2the payment of benefits of such association or department being
3guaranteed by the employer or by some person, firm or
4corporation for him or her: Provided, the employer contributes
5to such association or department an amount not less than the
6full compensation herein provided, exclusive of the cost of the
7maintenance of such association or department and without any
8expense to the employee. This Act shall not prevent the
9organization and maintaining under the insurance laws of this
10State of any benefit or insurance company for the purpose of
11insuring against the compensation provided for in this Act, the
12expense of which is maintained by the employer. This Act shall
13not prevent the organization or maintaining under the insurance
14laws of this State of any voluntary mutual aid, benefit or
15relief association among employees for the payment of
16additional accident or sick benefits.
17    (f) No existing insurance, mutual aid, benefit or relief
18association or department shall, by reason of anything herein
19contained, be authorized to discontinue its operation without
20first discharging its obligations to any and all persons
21carrying insurance in the same or entitled to relief or
22benefits therein.
23    (g) Any contract, oral, written or implied, of employment
24providing for relief benefit, or insurance or any other device
25whereby the employee is required to pay any premium or premiums
26for insurance against the compensation provided for in this Act

 

 

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1shall be null and void. Any employer withholding from the wages
2of any employee any amount for the purpose of paying any such
3premium shall be guilty of a Class B misdemeanor.
4    In the event the employer does not pay the compensation for
5which he or she is liable, then an insurance company,
6association or insurer which may have insured such employer
7against such liability shall become primarily liable to pay to
8the employee, his or her personal representative or beneficiary
9the compensation required by the provisions of this Act to be
10paid by such employer. The insurance carrier may be made a
11party to the proceedings in which the employer is a party and
12an award may be entered jointly against the employer and the
13insurance carrier.
14    (h) It shall be unlawful for any employer, insurance
15company or service or adjustment company to interfere with,
16restrain or coerce an employee in any manner whatsoever in the
17exercise of the rights or remedies granted to him or her by
18this Act or to discriminate, attempt to discriminate, or
19threaten to discriminate against an employee in any way because
20of his or her exercise of the rights or remedies granted to him
21or her by this Act.
22    It shall be unlawful for any employer, individually or
23through any insurance company or service or adjustment company,
24to discharge or to threaten to discharge, or to refuse to
25rehire or recall to active service in a suitable capacity an
26employee because of the exercise of his or her rights or

 

 

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1remedies granted to him or her by this Act.
2    (i) If an employer elects to obtain a life insurance policy
3on his employees, he may also elect to apply such benefits in
4satisfaction of all or a portion of the death benefits payable
5under this Act, in which case, the employer's compensation
6premium shall be reduced accordingly.
7    (j) Within 45 days of receipt of an initial application or
8application to renew self-insurance privileges the
9Self-Insurers Advisory Board shall review and submit for
10approval by the Chairman of the Commission recommendations of
11disposition of all initial applications to self-insure and all
12applications to renew self-insurance privileges filed by
13private self-insurers pursuant to the provisions of this
14Section and Section 4a-9 of this Act. Each private self-insurer
15shall submit with its initial and renewal applications the
16application fee required by Section 4a-4 of this Act.
17    The Chairman of the Commission shall promptly act upon all
18initial applications and applications for renewal in full
19accordance with the recommendations of the Board or, should the
20Chairman disagree with any recommendation of disposition of the
21Self-Insurer's Advisory Board, he shall within 30 days of
22receipt of such recommendation provide to the Board in writing
23the reasons supporting his decision. The Chairman shall also
24promptly notify the employer of his decision within 15 days of
25receipt of the recommendation of the Board.
26    If an employer is denied a renewal of self-insurance

 

 

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1privileges pursuant to application it shall retain said
2privilege for 120 days after receipt of a notice of
3cancellation of the privilege from the Chairman of the
4Commission.
5    All orders made by the Chairman under this Section shall be
6subject to review by the courts, such review to be taken in the
7same manner and within the same time as provided by subsection
8(f) of Section 19 of this Act for review of awards and
9decisions of the Commission, upon the party seeking the review
10filing with the clerk of the court to which such review is
11taken a bond in an amount to be fixed and approved by the court
12to which the review is taken, conditioned upon the payment of
13all compensation awarded against the person taking such review
14pending a decision thereof and further conditioned upon such
15other obligations as the court may impose. Upon the review the
16Circuit Court shall have power to review all questions of fact
17as well as of law.
18(Source: P.A. 97-18, eff. 6-28-11.)
 
19    (820 ILCS 305/4a-5)  (from Ch. 48, par. 138.4a-5)
20    Sec. 4a-5. There is hereby created a Self-Insurers Security
21Fund. The State Treasurer shall be the ex-officio custodian of
22the Self-Insurers Security Fund. Moneys Monies in the Fund
23shall be deposited in a separate account in the same manner as
24are State Funds and any interest accruing thereon shall be
25added thereto every 6 months. It shall be subject to audit the

 

 

HB0269 Enrolled- 23 -LRB101 04059 TAE 49067 b

1same as State funds and accounts and shall be protected by the
2general bond given by the State Treasurer. The funds in the
3Self-Insurers Security Fund shall not be subject to
4appropriation and shall be made available for the purposes of
5compensating employees who are eligible to receive benefits
6from their employers pursuant to the provisions of the Workers'
7Compensation Act or Workers' Occupational Diseases Act, when,
8pursuant to this Section, the Board has determined that a
9private self-insurer has become an insolvent self-insurer and
10is unable to pay compensation benefits due to financial
11insolvency. Moneys Monies in the Fund may be used to compensate
12any type of injury or occupational disease which is compensable
13under either Act, and all claims for related administrative
14fees, operating costs of the Board, attorney's attorneys fees,
15and other costs reasonably incurred by the Board. At the
16discretion of the Chairman, moneys in the Self-Insurers
17Security Fund may also be used for paying the salaries and
18benefits of the Self-Insurers Advisory Board employees and the
19operating costs of the Board. Payment from the Self-Insurers
20Security Fund shall be made by the Comptroller only upon the
21authorization of the Chairman as evidenced by properly
22certified vouchers of the Commission, upon the direction of the
23Board.
24(Source: P.A. 85-1385.)