Full Text of SB2339 98th General Assembly
SB2339eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Intergovernmental Cooperation Act is | 5 | | amended by changing Section 6 as follows:
| 6 | | (5 ILCS 220/6) (from Ch. 127, par. 746)
| 7 | | Sec. 6. Joint self-insurance. An intergovernmental | 8 | | contract may, among
other undertakings,
authorize public | 9 | | agencies to jointly self-insure and authorize each public
| 10 | | agency member of the contract to utilize its funds to pay to a | 11 | | joint
insurance pool its costs and reserves to protect, wholly | 12 | | or partially,
itself or any public agency member of the | 13 | | contract against liability or
loss in the designated insurable | 14 | | area. | 15 | | A joint insurance pool shall have an
annual audit performed | 16 | | by an independent certified public accountant and shall
file an | 17 | | annual audited financial report with the Director of Insurance | 18 | | no later
than 150 days after the end of the pool's immediately | 19 | | preceding fiscal year.
The
Director of Insurance shall issue | 20 | | rules necessary to implement this audit and
report requirement. | 21 | | The rule shall establish the due date for filing the
initial | 22 | | annual audited financial report. Within 30 days after January | 23 | | 1,
1991, and within 30 days after each January 1 thereafter, |
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| 1 | | public agencies
that are jointly self-insured to protect | 2 | | against liability under the
Workers' Compensation Act and the | 3 | | Workers' Occupational Diseases Act shall
file with the Illinois | 4 | | Workers' Compensation Commission a report indicating an | 5 | | election to
self-insure. | 6 | | The joint insurance pool shall also annually file with the | 7 | | Director a statement of actuarial opinion by an independent | 8 | | actuary who is an associate or fellow in a casualty actuarial | 9 | | society that the pool's reserves are in accordance with sound | 10 | | loss-reserving standards and adequate for the payment of | 11 | | claims. This opinion shall be filed no later than 150 days | 12 | | after the end of each fiscal year. The joint insurance pool | 13 | | shall be exempt from filing a statement of actuarial opinion by | 14 | | an independent actuary who is an associate or fellow in a | 15 | | casualty actuarial society that the joint insurance pool's | 16 | | reserves are in accordance with sound loss-reserving standards | 17 | | and payment of claims for the primary level of coverage if the | 18 | | joint insurance pool files with the Director, by the reporting | 19 | | deadline, a statement of actuarial opinion from the provider of | 20 | | the joint pool's aggregate coverage, reinsurance, or other | 21 | | similar excess insurance coverage.
| 22 | | The Director may assess penalties against a joint insurance | 23 | | pool that fails to comply with the auditing, statement of | 24 | | actuarial opinion, and examination requirements of this | 25 | | Section in an amount equal to $500 per day for each violation, | 26 | | up to a maximum of $10,000 for each violation. The Director (or |
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| 1 | | his or her staff) or a Director-selected independent auditor | 2 | | (or actuarial firm) that is not owned or affiliated with an | 3 | | insurance brokerage firm, insurance company, or other | 4 | | insurance industry affiliated entity may examine, as often as | 5 | | the Director deems advisable, the affairs, transactions, | 6 | | accounts, records, and assets and liabilities of each joint | 7 | | insurance pool that fails to comply with this Section. The | 8 | | joint insurance pool shall cooperate fully with the Director's | 9 | | representatives in all evaluations and audits of the joint | 10 | | insurance pool and resolve issues raised in those evaluations | 11 | | and audits. The failure to resolve those issues may constitute | 12 | | a violation of this Section, and may, after notice and an | 13 | | opportunity to be heard, result in the imposition of penalties | 14 | | pursuant to this Section. No sanctions under this Section may | 15 | | become effective until 30 days after the date that a notice of | 16 | | sanctions is delivered by registered or certified mail to the | 17 | | joint insurance pool. The Director shall have the authority to | 18 | | extend the time for filing any statement by any joint insurance | 19 | | pool for reasons that he or she considers good and sufficient. | 20 | | If a joint insurance pool requires a member to submit | 21 | | written notice in order for the member to withdraw from a | 22 | | qualified pool, then the period in which the member must | 23 | | provide the written notice cannot be greater than 120 days, | 24 | | except that this requirement applies only to joint insurance | 25 | | pool agreements entered into, modified, or renewed on or after | 26 | | the effective date of this amendatory Act of the 98th General |
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| 1 | | Assembly. | 2 | | For purposes of this Section, "public agency member" means | 3 | | any public
agency
defined or created under this Act, any local | 4 | | public entity as defined in
Section 1-206 of
the Local | 5 | | Governmental and Governmental Employees Tort Immunity Act, and | 6 | | any
public agency, authority, instrumentality, council, board, | 7 | | service region,
district,
unit, bureau,
or, commission, or any | 8 | | municipal corporation, college, or university, whether
| 9 | | corporate or
otherwise,
and any other local governmental body | 10 | | or similar entity that is presently
existing or
created after | 11 | | the effective date of this amendatory Act of the 92nd General
| 12 | | Assembly,
whether or not specified in this Section.
Only public | 13 | | agency members with tax receipts, tax revenues, taxing
| 14 | | authority, or other
resources sufficient to pay costs and to | 15 | | service debt related to
intergovernmental activities
described | 16 | | in this Section, or public agency members created by or as part | 17 | | of a
public
agency with these powers, may enter into contracts | 18 | | or otherwise associate among
themselves as permitted in this | 19 | | Section.
| 20 | | No joint insurance pool or other intergovernmental | 21 | | cooperative offering health insurance shall interfere with the | 22 | | statutory obligation of any public agency member to bargain | 23 | | over or to reach agreement with a labor organization over a | 24 | | mandatory subject of collective bargaining as those terms are | 25 | | used in the Illinois Public Labor Relations Act. No | 26 | | intergovernmental contract of insurance offering health |
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| 1 | | insurance shall limit the rights or obligations of public | 2 | | agency members to engage in collective bargaining, and it shall | 3 | | be unlawful for a joint insurance pool or other | 4 | | intergovernmental cooperative offering health insurance to | 5 | | discriminate against public agency members or otherwise | 6 | | retaliate against such members for limiting their | 7 | | participation in a joint insurance pool as a result of a | 8 | | collective bargaining agreement.
| 9 | | It shall not be considered a violation of this Section for | 10 | | an intergovernmental contract of insurance relating to health | 11 | | insurance coverage, life insurance coverage, or both to permit | 12 | | the pool or cooperative, if a member withdraws employees or | 13 | | officers into a union-sponsored program, to re-price the costs | 14 | | of benefits provided to the continuing employees or officers | 15 | | based upon the same underwriting criteria used by that pool or | 16 | | cooperative in the normal course of its business, but no member | 17 | | shall be expelled from a pool or cooperative if the continuing | 18 | | employees or officers meet the general criteria required of | 19 | | other members.
| 20 | | (Source: P.A. 93-721, eff. 1-1-05; 94-685, eff. 11-2-05.)
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