Full Text of SB1873 98th General Assembly
SB1873sam001 98TH GENERAL ASSEMBLY | Sen. John G. Mulroe Filed: 4/12/2013
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| 1 | | AMENDMENT TO SENATE BILL 1873
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1873 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing Sections 107a.04, 107a.05, and 534.4 and by adding | 6 | | Sections 107a.16 and 107a.17 as follows:
| 7 | | (215 ILCS 5/107a.04)
| 8 | | Sec. 107a.04. Organization under the Illinois Insurance | 9 | | Code.
| 10 | | (a) After December 31, 2015, all 2000, group workers' | 11 | | compensation pools shall be subject to Article III of this Code | 12 | | and for the
purpose of
this Article, and this Article only, be | 13 | | considered as though they were
assessable domestic mutual
| 14 | | insurance companies . and subject to the following:
| 15 | | (1) Article XII 1/2, Article XIII, Article XIII 1/2, | 16 | | Article XXIV;
and
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| 1 | | (2) Sections 126.2, 126.4, 126.7, 132, 132.1 through | 2 | | 132.7, 133, 134, 137,
139,
140,
141.1, 141.2,
142, 143, | 3 | | 143c, 147, 148, 149, 154.5, 154.6, 154.7, 154.8, 155.01, | 4 | | 155.04,
173.1, 173.2, 173.3,
173.4, 173.5, 174, 174.1, 175, | 5 | | 176, 178, 179b, 378, 379.1, 408, 408.3, 449,
456, 457, and | 6 | | 458,
subsections A, B, C, and E of Section 126.5, | 7 | | subsection A of Section 126.6, and
subsections (1) and (7) | 8 | | of
Section 412 of this Code.
| 9 | | (b) (Blank). If there is a conflict between any Section of | 10 | | this Article and any
other Section of this
Code, then the | 11 | | provisions of this Article shall apply.
| 12 | | (c) (Blank). No other provision of this Code shall be | 13 | | applicable to any qualified
workers'
compensation group | 14 | | workers' compensation pool except as provided in this
Article.
| 15 | | (d) A certificate of authority that is in effect on the | 16 | | effective date of
this amendatory Act of the 91st General | 17 | | Assembly and that was issued pursuant
to Section 4a of the | 18 | | Workers' Compensation Act or Section 4a of the Workers'
| 19 | | Occupational Diseases Act to a group self-insurer
shall be | 20 | | converted to a certificate issued pursuant to Section 51 of | 21 | | this Code, provided that the group self-insurer or remain in | 22 | | effect under this Article. Such group self-insurer
shall then | 23 | | be deemed to be a qualified group workers' compensation pool | 24 | | has met the requirements of Article III of this Code. If any | 25 | | group self-insurer or the qualified group workers' | 26 | | compensation pool has not met the requirements of Article III |
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| 1 | | of this Code, then the Director may deem the group self-insurer | 2 | | or the qualified group workers' compensation pool to be in a | 3 | | hazardous financial condition and the Director may take one or | 4 | | more of the actions authorized by law that are applicable to a | 5 | | company, as defined by Section 2 of this Code, that is in a | 6 | | hazardous financial condition, including, but not limited to, | 7 | | Article XIII of this Code and
shall be
subject to this Article .
| 8 | | (Source: P.A. 91-757, eff. 1-1-01.)
| 9 | | (215 ILCS 5/107a.05)
| 10 | | Sec. 107a.05. Definitions and interchangeable terms.
| 11 | | (a) Unless otherwise provided, the following definitions | 12 | | shall apply:
| 13 | | "Authorized insurer" means an insurer licensed in this | 14 | | State to
transact business as described
in Clauses (c) and (d) | 15 | | of Class 2 of Section 4 of this Code.
| 16 | | "Calendar Quarter" means the 3-month periods ending March | 17 | | 31, June 30,
September 30,
and December 31.
| 18 | | "Director" means the Director of Insurance.
| 19 | | "Engaged actively in the business" means a bona fide | 20 | | business concern having
conducted
commerce, trade, or industry | 21 | | in this State for a specified period of time. Any
and all | 22 | | records relating
to this requirement shall be open to | 23 | | inspection by the Director or his designee
during normal
| 24 | | business hours.
| 25 | | "Gross annual payroll" means payroll for the preceding |
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| 1 | | fiscal year.
| 2 | | "Independent actuarial opinion" means an opinion expressed | 3 | | by a member of the
American
Academy of Actuaries or Casualty | 4 | | Actuarial Society.
| 5 | | "Independent CPA" means an independent certified public | 6 | | accountant or
independent
certified public accounting firm in | 7 | | good standing and licensed to practice by
the Department of
| 8 | | Professional
Regulation.
| 9 | | "Net direct written premium" means direct gross premium or | 10 | | contribution, without regard to how it is labeled, written in | 11 | | this State on pooling agreements to which Article XXXIV of this | 12 | | Code applies, less return premiums thereon and dividends paid | 13 | | or credited to members of a group workers' compensation pool on | 14 | | such direct business. | 15 | | "Pool" means a qualified group workers' compensation pool | 16 | | as authorized by
this Article.
| 17 | | "Qualified group workers' compensation pool" means a group | 18 | | workers'
compensation pool
that has received a certificate of | 19 | | authority pursuant to this Article.
| 20 | | (b) For purposes of incorporating the provisions of this | 21 | | Code designated in
paragraphs (1)
and (2) of subsection (a) of | 22 | | Section 107a.04 into this Article, the following
terms shall be
| 23 | | interchangeable:
| 24 | | "Contribution" shall be considered premium.
| 25 | | "Pooling agreement" shall be considered a policy of | 26 | | insurance.
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| 1 | | "Trustees of a group workers' compensation pool" shall be | 2 | | considered as
though they were
directors of a domestic mutual | 3 | | insurance company.
| 4 | | (Source: P.A. 91-757, eff. 1-1-01.)
| 5 | | (215 ILCS 5/107a.16 new) | 6 | | Sec. 107a.16. New group workers' compensation pool | 7 | | prohibited. No group workers' compensation pool shall be issued | 8 | | a certificate of authority by the Director after the effective | 9 | | date of this amendatory Act of the 98th General Assembly. | 10 | | (215 ILCS 5/107a.17 new) | 11 | | Sec. 107a.17. Group Workers' Compensation Pool Insolvency | 12 | | Fund. On the effective date of this amendatory Act of the 98th | 13 | | General Assembly, all moneys in the Group Workers' Compensation | 14 | | Pool Insolvency Fund shall be transferred into the Illinois | 15 | | Insurance Guaranty Fund. All liabilities whenever occurred | 16 | | prior to December 31, 2015 of the Group Workers' Compensation | 17 | | Pool Insolvency Fund are to be assumed by the Self-Insurers | 18 | | Security Fund. All qualified group workers' compensation pools | 19 | | shall pay the assessments contained in Section 4a-7 of the | 20 | | Workers' Compensation Act. | 21 | | Section 10. The Workers' Compensation Act is amended by | 22 | | changing Section 4a-2 as follows:
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| 1 | | (820 ILCS 305/4a-2) (from Ch. 48, par. 138.4a-2)
| 2 | | Sec. 4a-2. As used in Sections 4a-1 through 4a-9:
| 3 | | (a) "Board" means the Self-Insurers Advisory Board created | 4 | | by Section 4a-1.
| 5 | | (b) "Chairman" means the Chairman of the Illinois Workers' | 6 | | Compensation Commission.
| 7 | | (c) "Private self-insurer" means a private employer that | 8 | | has been
authorized to self-insure its payment of workers' | 9 | | compensation benefits
pursuant to subsection (a) of Section 4 | 10 | | of this Act or to self-insure its
payment of occupational | 11 | | disease benefits pursuant to subsection (a) of
Section 4 of the | 12 | | Workers' Occupational Diseases Act , including group | 13 | | self-insured employers and qualified group workers' | 14 | | compensation pools under Article V 3/4 of the Illinois | 15 | | Insurance Code, but does not include
group self-insured | 16 | | employers under Section 4a of this Act or Section 4a of
the | 17 | | Workers' Occupational Diseases Act or the State of Illinois, | 18 | | any
political subdivision of the State, unit of local | 19 | | government or school
district, or any other public authorities | 20 | | or quasi-governmental bodies
including any subunits of the | 21 | | foregoing entities.
| 22 | | (d) "Insolvent self-insurer" means a private self-insurer | 23 | | financially
unable to pay compensation due under this Act, | 24 | | which (i) has filed either prior
to or after the effective date | 25 | | of this Section or (ii) is the subject party
in any proceeding | 26 | | under the Federal Bankruptcy Reform Act of 1978, or is
the |
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| 1 | | subject party in any proceeding in which a receiver, custodian,
| 2 | | liquidator, rehabilitator, sequestrator, trustee or similar | 3 | | officer has
been appointed by any Court to act in lieu of or on | 4 | | behalf of that self-insurer.
| 5 | | (e) "Fund" means the Self-Insurers Security Fund | 6 | | established by Section 4a-5.
| 7 | | (f) "Trustee" means a member of the Self-Insurers Advisory | 8 | | Board.
| 9 | | (g) "Self-Insurers Administration Fund" means the Fund | 10 | | established by Section 4a-6.1.
| 11 | | (h) "Application fee" means the application fee provided | 12 | | for in Section 4a-4.
| 13 | | (Source: P.A. 93-721, eff. 1-1-05.)
| 14 | | (215 ILCS 5/107a.07 rep.)
| 15 | | (215 ILCS 5/107a.13 rep.) | 16 | | Section 15. The Illinois Insurance Code is amended by | 17 | | repealing Sections 107a.07 and 107a.13.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.".
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