Full Text of SB1993 102nd General Assembly
SB1993 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB1993 Introduced 2/26/2021, by Sen. Antonio Muñoz SYNOPSIS AS INTRODUCED: |
| 20 ILCS 1405/1405-40 new | | 820 ILCS 305/4 | from Ch. 48, par. 138.4 | 820 ILCS 305/25.5 | | 820 ILCS 305/29.2 | |
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Amends the Department of Insurance Law of the Civil Administrative Code of Illinois by transferring all powers, duties, rights, responsibilities, personnel, books, records, papers, documents, property (real and personal), contracts, causes of action, and pending business of the Insurance Compliance Division within the Illinois Workers' Compensation Commission to the Department of Insurance. Provides that, when reports or notices are to be made or given or papers or documents furnished or served by any person to or upon the Insurance Compliance Division, they shall be made, given, furnished, or served in the same manner to or upon the Department of Insurance. Provides that the amendatory Act does not affect any act done, ratified, or canceled, any right occurring or established, or any action or proceeding had or commenced in an administrative, civil, or criminal cause by the Insurance Compliance Division before the amendatory Act takes effect. Makes other changes. Amends the Workers' Compensation Act. Replaces references to the Insurance Compliance Division with references to the Department of Insurance. In provisions concerning Department of Insurance oversight, changes the date before which insurers licensed to write workers compensation coverage in the State must record and report specified information concerning claims from March 1 to June 1 of each year. Deletes a provision stating that the fraud and insurance non-compliance unit shall procure and implement a system using advanced analytics for the detection and prevention of fraud, waste, and abuse. Effective July 1, 2021.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Insurance Law of the
Civil | 5 | | Administrative Code of Illinois is amended by adding Section | 6 | | 1405-40 as follows: | 7 | | (20 ILCS 1405/1405-40 new) | 8 | | Sec. 1405-40. Transfer of functions. | 9 | | (a) On the effective date of this amendatory Act of the | 10 | | 102nd General Assembly, all powers, duties, rights, and | 11 | | responsibilities of the Insurance Compliance Division within | 12 | | the Illinois Workers' Compensation Commission are transferred | 13 | | to the Department of Insurance. The personnel of the Insurance | 14 | | Compliance Division are transferred to the Department of | 15 | | Insurance. The status and rights of such personnel under the | 16 | | Personnel Code are not affected by the transfer. The rights of | 17 | | the employees and the State of Illinois and its agencies under | 18 | | the Personnel Code and applicable collective bargaining | 19 | | agreements or under any pension, retirement, or annuity plan | 20 | | are not affected by this amendatory Act of the 102nd General | 21 | | Assembly. All books, records, papers, documents, property | 22 | | (real and personal), contracts, causes of action, and pending | 23 | | business pertaining to the powers, duties, rights, and |
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| 1 | | responsibilities transferred by this amendatory Act of the | 2 | | 102nd General Assembly from the Insurance Compliance Division | 3 | | to the Department of Insurance, including, but not limited to, | 4 | | material in electronic or magnetic format and necessary | 5 | | computer hardware and software, are transferred to the | 6 | | Department of Insurance. The powers, duties, rights, and | 7 | | responsibilities relating to the Insurance Compliance Division | 8 | | transferred by this amendatory Act of the 102nd General | 9 | | Assembly are vested in the Department of Insurance. | 10 | | (b) Whenever reports or notices are required to be made or | 11 | | given or papers or documents furnished or served by any person | 12 | | to or upon the Insurance Compliance Division in connection | 13 | | with any of the powers, duties, rights, and responsibilities | 14 | | transferred by this amendatory Act of the 102nd General | 15 | | Assembly, the Department of Insurance shall make, give, | 16 | | furnish, or serve them. | 17 | | (c) This amendatory Act of the 102nd General Assembly does | 18 | | not affect any act done, ratified, or canceled, any right | 19 | | occurring or established, or any action or proceeding had or | 20 | | commenced in an administrative, civil, or criminal cause by | 21 | | the Insurance Compliance Division before the effective date of | 22 | | this amendatory Act of the 102nd General Assembly. Such | 23 | | actions or proceedings may be prosecuted and continued by the | 24 | | Department of Insurance. | 25 | | (d) Any rules that relate to its powers, duties, rights, | 26 | | and responsibilities of the Insurance Compliance Division and |
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| 1 | | are in force on the effective date of this amendatory Act of | 2 | | the 102nd General Assembly become the rules of the Department | 3 | | of Insurance. This amendatory Act of the 102nd General | 4 | | Assembly does not affect the legality of any such rules. | 5 | | (e) Any proposed rules filed with the Secretary of State | 6 | | by the Illinois Workers' Compensation Commission that are | 7 | | pending in the rulemaking process on the effective date of | 8 | | this amendatory Act of the 102nd General Assembly and pertain | 9 | | to the transferred powers, duties, rights, and | 10 | | responsibilities are deemed to have been filed by the | 11 | | Department of Insurance. As soon as practicable, the | 12 | | Department of Insurance shall revise and clarify the rules | 13 | | transferred to it under this amendatory Act of the 102nd | 14 | | General Assembly to reflect the reorganization of powers, | 15 | | duties, rights, and responsibilities affected by this | 16 | | amendatory Act of the 102nd General Assembly, using the | 17 | | procedures for recodification of rules available under the | 18 | | Illinois Administrative Procedure Act, except that existing | 19 | | title, part, and section numbering for the affected rules may | 20 | | be retained. The Department of Insurance may propose and adopt | 21 | | under the Illinois Administrative Procedure Act other rules of | 22 | | the Illinois Workers' Compensation Commission pertaining to | 23 | | this amendatory Act of the 102nd General Assembly that are | 24 | | administered by the Department of Insurance. | 25 | | Section 10. The Workers' Compensation Act is amended by |
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| 1 | | changing Sections 4, 25.5, and 29.2 as follows:
| 2 | | (820 ILCS 305/4) (from Ch. 48, par. 138.4)
| 3 | | (Text of Section from P.A. 101-40) | 4 | | Sec. 4. (a) Any employer, including but not limited to | 5 | | general contractors
and their subcontractors, who shall come | 6 | | within the provisions of
Section 3 of this Act, and any other | 7 | | employer who shall elect to provide
and pay the compensation | 8 | | provided for in this Act shall:
| 9 | | (1) File with the Commission annually an application | 10 | | for approval as a
self-insurer which shall include a | 11 | | current financial statement, and
annually, thereafter, an | 12 | | application for renewal of self-insurance, which
shall | 13 | | include a current financial statement. Said
application | 14 | | and financial statement shall be signed and sworn to by | 15 | | the
president or vice president and secretary or assistant | 16 | | secretary of the
employer if it be a corporation, or by all | 17 | | of the partners, if it be a
copartnership, or by the owner | 18 | | if it be neither a copartnership nor a
corporation. All | 19 | | initial applications and all applications for renewal of
| 20 | | self-insurance must be submitted at least 60 days prior to | 21 | | the requested
effective date of self-insurance. An | 22 | | employer may elect to provide and pay
compensation as | 23 | | provided
for in this Act as a member of a group workers' | 24 | | compensation pool under Article
V 3/4 of the Illinois | 25 | | Insurance Code. If an employer becomes a member of a
group |
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| 1 | | workers' compensation pool, the employer shall not be | 2 | | relieved of any
obligations imposed by this Act.
| 3 | | If the sworn application and financial statement of | 4 | | any such employer
does not satisfy the Commission of the | 5 | | financial ability of the employer
who has filed it, the | 6 | | Commission shall require such employer to,
| 7 | | (2) Furnish security, indemnity or a bond guaranteeing | 8 | | the payment
by the employer of the compensation provided | 9 | | for in this Act, provided
that any such employer whose | 10 | | application and financial statement shall
not have | 11 | | satisfied the commission of his or her financial ability | 12 | | and
who shall have secured his liability in part by excess | 13 | | liability insurance
shall be required to furnish to the | 14 | | Commission security, indemnity or bond
guaranteeing his or | 15 | | her payment up to the effective limits of the excess
| 16 | | coverage, or
| 17 | | (3) Insure his entire liability to pay such | 18 | | compensation in some
insurance carrier authorized, | 19 | | licensed, or permitted to do such
insurance business in | 20 | | this State. Every policy of an insurance carrier,
insuring | 21 | | the payment of compensation under this Act shall cover all | 22 | | the
employees and the entire compensation liability of the | 23 | | insured:
Provided, however, that any employer may insure | 24 | | his or her compensation
liability with 2 or more insurance | 25 | | carriers or may insure a part and
qualify under subsection | 26 | | 1, 2, or 4 for the remainder of his or her
liability to pay |
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| 1 | | such compensation, subject to the following two | 2 | | provisions:
| 3 | | Firstly, the entire compensation liability of the | 4 | | employer to
employees working at or from one location | 5 | | shall be insured in one such
insurance carrier or | 6 | | shall be self-insured, and
| 7 | | Secondly, the employer shall submit evidence | 8 | | satisfactorily to the
Commission that his or her | 9 | | entire liability for the compensation provided
for in | 10 | | this Act will be secured. Any provisions in any | 11 | | policy, or in any
endorsement attached thereto, | 12 | | attempting to limit or modify in any way,
the | 13 | | liability of the insurance carriers issuing the same | 14 | | except as
otherwise provided herein shall be wholly | 15 | | void.
| 16 | | Nothing herein contained shall apply to policies of | 17 | | excess liability
carriage secured by employers who have | 18 | | been approved by the Commission
as self-insurers, or
| 19 | | (4) Make some other provision, satisfactory to the | 20 | | Commission, for
the securing of the payment of | 21 | | compensation provided for in this Act,
and
| 22 | | (5) Upon becoming subject to this Act and thereafter | 23 | | as often as the
Commission may in writing demand, file | 24 | | with the Commission in form prescribed
by it evidence of | 25 | | his or her compliance with the provision of this Section.
| 26 | | (a-1) Regardless of its state of domicile or its principal |
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| 1 | | place of
business, an employer shall make payments to its | 2 | | insurance carrier or group
self-insurance fund, where | 3 | | applicable, based upon the premium rates of the
situs where | 4 | | the work or project is located in Illinois if:
| 5 | | (A) the employer is engaged primarily in the building | 6 | | and
construction industry; and
| 7 | | (B) subdivision (a)(3) of this Section applies to the | 8 | | employer or
the employer is a member of a group | 9 | | self-insurance plan as defined in
subsection (1) of | 10 | | Section 4a.
| 11 | | The Illinois Workers' Compensation Commission shall impose | 12 | | a penalty upon an employer
for violation of this subsection | 13 | | (a-1) if:
| 14 | | (i) the employer is given an opportunity at a hearing | 15 | | to present
evidence of its compliance with this subsection | 16 | | (a-1); and
| 17 | | (ii) after the hearing, the Commission finds that the | 18 | | employer
failed to make payments upon the premium rates of | 19 | | the situs where the work or
project is located in | 20 | | Illinois.
| 21 | | The penalty shall not exceed $1,000 for each day of work | 22 | | for which
the employer failed to make payments upon the | 23 | | premium rates of the situs where
the
work or project is located | 24 | | in Illinois, but the total penalty shall not exceed
$50,000 | 25 | | for each project or each contract under which the work was
| 26 | | performed.
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| 1 | | Any penalty under this subsection (a-1) must be imposed | 2 | | not later
than one year after the expiration of the applicable | 3 | | limitation period
specified in subsection (d) of Section 6 of | 4 | | this Act. Penalties imposed under
this subsection (a-1) shall | 5 | | be deposited into the Illinois Workers' Compensation | 6 | | Commission
Operations Fund, a special fund that is created in | 7 | | the State treasury. Subject
to appropriation, moneys in the | 8 | | Fund shall be used solely for the operations
of the Illinois | 9 | | Workers' Compensation Commission, the salaries and benefits of | 10 | | the Self-Insurers Advisory Board employees, the operating | 11 | | costs of the Self-Insurers Advisory Board, and by the | 12 | | Department of Insurance for the purposes authorized in | 13 | | subsection (c) of Section 25.5 of this Act.
| 14 | | (a-2) Every Employee Leasing Company (ELC), as defined in | 15 | | Section 15 of the Employee Leasing Company Act, shall at a | 16 | | minimum provide the following information to the Commission or | 17 | | any entity designated by the Commission regarding each | 18 | | workers' compensation insurance policy issued to the ELC: | 19 | | (1) Any client company of the ELC listed as an | 20 | | additional named insured. | 21 | | (2) Any informational schedule attached to the master | 22 | | policy that identifies any individual client company's | 23 | | name, FEIN, and job location. | 24 | | (3) Any certificate of insurance coverage document | 25 | | issued to a client company specifying its rights and | 26 | | obligations under the master policy that establishes both |
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| 1 | | the identity and status of the client, as well as the dates | 2 | | of inception and termination of coverage, if applicable. | 3 | | (b) The sworn application and financial statement, or | 4 | | security,
indemnity or bond, or amount of insurance, or other | 5 | | provisions, filed,
furnished, carried, or made by the | 6 | | employer, as the case may be, shall
be subject to the approval | 7 | | of the Commission.
| 8 | | Deposits under escrow agreements shall be cash, negotiable | 9 | | United
States government bonds or negotiable general | 10 | | obligation bonds of the
State of Illinois. Such cash or bonds | 11 | | shall be deposited in
escrow with any State or National Bank or | 12 | | Trust Company having trust
authority in the State of Illinois.
| 13 | | Upon the approval of the sworn application and financial | 14 | | statement,
security, indemnity or bond or amount of insurance, | 15 | | filed, furnished or
carried, as the case may be, the | 16 | | Commission shall send to the employer
written notice of its | 17 | | approval thereof. The certificate of compliance
by the | 18 | | employer with the provisions of subparagraphs (2) and (3) of
| 19 | | paragraph (a) of this Section shall be delivered by the | 20 | | insurance
carrier to the Illinois Workers' Compensation | 21 | | Commission within five days after the
effective date of the | 22 | | policy so certified. The insurance so certified
shall cover | 23 | | all compensation liability occurring during the time that
the | 24 | | insurance is in effect and no further certificate need be | 25 | | filed in case
such insurance is renewed, extended or otherwise | 26 | | continued by such
carrier. The insurance so certified shall |
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| 1 | | not be cancelled or in the
event that such insurance is not | 2 | | renewed, extended or otherwise
continued, such insurance shall | 3 | | not be terminated until at least 10
days after receipt by the | 4 | | Illinois Workers' Compensation Commission of notice of the
| 5 | | cancellation or termination of said insurance; provided, | 6 | | however, that
if the employer has secured insurance from | 7 | | another insurance carrier, or
has otherwise secured the | 8 | | payment of compensation in accordance with
this Section, and | 9 | | such insurance or other security becomes effective
prior to | 10 | | the expiration of the 10 days, cancellation or termination | 11 | | may, at
the option of the insurance carrier indicated in such | 12 | | notice, be effective
as of the effective date of such other | 13 | | insurance or security.
| 14 | | (c) Whenever the Commission shall find that any | 15 | | corporation,
company, association, aggregation of individuals, | 16 | | reciprocal or
interinsurers exchange, or other insurer | 17 | | effecting workers' compensation
insurance in this State shall | 18 | | be insolvent, financially unsound, or
unable to fully meet all | 19 | | payments and liabilities assumed or to be
assumed for | 20 | | compensation insurance in this State, or shall practice a
| 21 | | policy of delay or unfairness toward employees in the | 22 | | adjustment,
settlement, or payment of benefits due such | 23 | | employees, the Commission
may after reasonable notice and | 24 | | hearing order and direct that such
corporation, company, | 25 | | association, aggregation of individuals,
reciprocal or | 26 | | interinsurers exchange, or insurer, shall from and after a
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| 1 | | date fixed in such order discontinue the writing of any such | 2 | | workers'
compensation insurance in this State. Subject to such | 3 | | modification of
the order as the Commission may later make on | 4 | | review of the order,
as herein provided, it shall thereupon be | 5 | | unlawful for any such
corporation, company, association, | 6 | | aggregation of individuals,
reciprocal or interinsurers | 7 | | exchange, or insurer to effect any workers'
compensation | 8 | | insurance in this State. A copy of the order shall be served
| 9 | | upon the Director of Insurance by registered mail. Whenever | 10 | | the Commission
finds that any service or adjustment company | 11 | | used or employed
by a self-insured employer or by an insurance | 12 | | carrier to process,
adjust, investigate, compromise or | 13 | | otherwise handle claims under this
Act, has practiced or is | 14 | | practicing a policy of delay or unfairness
toward employees in | 15 | | the adjustment, settlement or payment of benefits
due such | 16 | | employees, the Commission may after reasonable notice and
| 17 | | hearing order and direct that such service or adjustment | 18 | | company shall
from and after a date fixed in such order be | 19 | | prohibited from processing,
adjusting, investigating, | 20 | | compromising or otherwise handling claims
under this Act.
| 21 | | Whenever the Commission finds that any self-insured | 22 | | employer has
practiced or is practicing delay or unfairness | 23 | | toward employees in the
adjustment, settlement or payment of | 24 | | benefits due such employees, the
Commission may, after | 25 | | reasonable notice and hearing, order and direct
that after a | 26 | | date fixed in the order such self-insured employer shall be
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| 1 | | disqualified to operate as a self-insurer and shall be | 2 | | required to
insure his entire liability to pay compensation in | 3 | | some insurance
carrier authorized, licensed and permitted to | 4 | | do such insurance business
in this State, as provided in | 5 | | subparagraph 3 of paragraph (a) of this
Section.
| 6 | | All orders made by the Commission under this Section shall | 7 | | be subject
to review by the courts, said review to be taken in | 8 | | the same manner and
within the same time as provided by Section | 9 | | 19 of this Act for review of
awards and decisions of the | 10 | | Commission, upon the party seeking the
review filing with the | 11 | | clerk of the court to which said review is taken
a bond in an | 12 | | amount to be fixed and approved by the court to which the
| 13 | | review is taken, conditioned upon the payment of all | 14 | | compensation awarded
against the person taking said review | 15 | | pending a decision thereof and
further conditioned upon such | 16 | | other obligations as the court may impose.
Upon the review the | 17 | | Circuit Court shall have power to review all questions
of fact | 18 | | as well as of law. The penalty hereinafter provided for in this
| 19 | | paragraph shall not attach and shall not begin to run until the | 20 | | final
determination of the order of the Commission.
| 21 | | (d) Whenever a Commissioner, with due process and after a | 22 | | hearing, determines an employer has knowingly failed to | 23 | | provide coverage as required by paragraph (a) of this Section, | 24 | | the failure shall be deemed an immediate serious danger to | 25 | | public health, safety, and welfare sufficient to justify | 26 | | service by the Commission of a work-stop order on such |
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| 1 | | employer, requiring the cessation of all business operations | 2 | | of such employer at the place of employment or job site. If a | 3 | | business is declared to be extra hazardous, as defined in | 4 | | Section 3, a Commissioner may issue an emergency work-stop | 5 | | order on such an employer ex parte, prior to holding a hearing, | 6 | | requiring the cessation of all business operations of such | 7 | | employer at the place of employment or job site while awaiting | 8 | | the ruling of the Commission. Whenever a Commissioner issues | 9 | | an emergency work-stop order, the Commission shall issue a | 10 | | notice of emergency work-stop hearing to be posted at the | 11 | | employer's places of employment and job sites. Any law | 12 | | enforcement agency in the State shall, at the request of the | 13 | | Commission, render any assistance necessary to carry out the | 14 | | provisions of this Section, including, but not limited to, | 15 | | preventing any employee of such employer from remaining at a | 16 | | place of employment or job site after a work-stop order has | 17 | | taken effect. Any work-stop order shall be lifted upon proof | 18 | | of insurance as required by this Act. Any orders under this | 19 | | Section are appealable under Section 19(f) to the Circuit | 20 | | Court.
| 21 | | Any individual employer, corporate officer or director of | 22 | | a corporate employer, partner of an employer partnership, or | 23 | | member of an employer limited liability company who knowingly | 24 | | fails to provide coverage as required by paragraph (a) of this | 25 | | Section is guilty of a Class 4 felony. This provision shall not | 26 | | apply to any corporate officer or director of any |
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| 1 | | publicly-owned corporation. Each day's violation constitutes a | 2 | | separate offense. The State's Attorney of the county in which | 3 | | the violation occurred, or the Attorney General, shall bring | 4 | | such actions in the name of the People of the State of | 5 | | Illinois, or may, in addition to other remedies provided in | 6 | | this Section, bring an action for an injunction to restrain | 7 | | the violation or to enjoin the operation of any such employer.
| 8 | | Any individual employer, corporate officer or director of | 9 | | a corporate employer, partner of an employer partnership, or | 10 | | member of an employer limited liability company who | 11 | | negligently fails to provide coverage as required by paragraph | 12 | | (a) of this Section is guilty of a Class A misdemeanor. This | 13 | | provision shall not apply to any corporate officer or director | 14 | | of any publicly-owned corporation. Each day's violation | 15 | | constitutes a separate offense. The State's Attorney of the | 16 | | county in which the violation occurred, or the Attorney | 17 | | General, shall bring such actions in the name of the People of | 18 | | the State of Illinois.
| 19 | | The criminal penalties in this subsection (d) shall not | 20 | | apply where
there exists a good faith dispute as to the | 21 | | existence of an
employment relationship. Evidence of good | 22 | | faith shall
include, but not be limited to, compliance with | 23 | | the definition
of employee as used by the Internal Revenue | 24 | | Service.
| 25 | | All investigative actions must be acted upon within 90 | 26 | | days of the issuance of the complaint. Employers who are |
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| 1 | | subject to and who knowingly fail to comply with this Section | 2 | | shall not be entitled to the benefits of this Act during the | 3 | | period of noncompliance, but shall be liable in an action | 4 | | under any other applicable law of this State. In the action, | 5 | | such employer shall not avail himself or herself of the | 6 | | defenses of assumption of risk or negligence or that the | 7 | | injury was due to a co-employee. In the action, proof of the | 8 | | injury shall constitute prima facie evidence of negligence on | 9 | | the part of such employer and the burden shall be on such | 10 | | employer to show freedom of negligence resulting in the | 11 | | injury. The employer shall not join any other defendant in any | 12 | | such civil action. Nothing in this amendatory Act of the 94th | 13 | | General Assembly shall affect the employee's rights under | 14 | | subdivision (a)3 of Section 1 of this Act. Any employer or | 15 | | carrier who makes payments under subdivision (a)3 of Section 1 | 16 | | of this Act shall have a right of reimbursement from the | 17 | | proceeds of any recovery under this Section.
| 18 | | An employee of an uninsured employer, or the employee's | 19 | | dependents in case death ensued, may, instead of proceeding | 20 | | against the employer in a civil action in court, file an | 21 | | application for adjustment of claim with the Commission in | 22 | | accordance with the provisions of this Act and the Commission | 23 | | shall hear and determine the application for adjustment of | 24 | | claim in the manner in which other claims are heard and | 25 | | determined before the Commission.
| 26 | | All proceedings under this subsection (d) shall be |
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| 1 | | reported on an annual basis to the Workers' Compensation | 2 | | Advisory Board.
| 3 | | An investigator with the Department of Insurance Illinois | 4 | | Workers' Compensation Commission Insurance Compliance Division | 5 | | may issue a citation to any employer that is not in compliance | 6 | | with its obligation to have workers' compensation insurance | 7 | | under this Act. The amount of the fine shall be based on the | 8 | | period of time the employer was in non-compliance, but shall | 9 | | be no less than $500, and shall not exceed $10,000. An employer | 10 | | that has been issued a citation shall pay the fine to the | 11 | | Department of Insurance Commission and provide to the | 12 | | Department of Insurance Commission proof that it obtained the | 13 | | required workers' compensation insurance within 10 days after | 14 | | the citation was issued. This Section does not affect any | 15 | | other obligations this Act imposes on employers. | 16 | | Upon a finding by the Commission, after reasonable notice | 17 | | and
hearing, of the knowing and willful failure or refusal of | 18 | | an employer to
comply with
any of the provisions of paragraph | 19 | | (a) of this Section, the failure or
refusal of an employer, | 20 | | service or adjustment company, or an insurance
carrier to | 21 | | comply with any order of the Illinois Workers' Compensation | 22 | | Commission pursuant to
paragraph (c) of this Section | 23 | | disqualifying him or her to operate as a self
insurer and | 24 | | requiring him or her to insure his or her liability, or the | 25 | | knowing and willful failure of an employer to comply with a | 26 | | citation issued by an investigator with the Department of |
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| 1 | | Insurance Illinois Workers' Compensation Commission Insurance | 2 | | Compliance Division , the
Commission may assess a civil penalty | 3 | | of up to $500 per day for each day of
such failure or refusal | 4 | | after the effective date of this amendatory Act of
1989. The | 5 | | minimum penalty under this Section shall be the sum of | 6 | | $10,000.
Each day of such failure or refusal shall constitute | 7 | | a separate offense.
The Commission may assess the civil | 8 | | penalty personally and individually
against the corporate | 9 | | officers and directors of a corporate employer, the
partners | 10 | | of an employer partnership, and the members of an employer | 11 | | limited
liability company, after a finding of a knowing and | 12 | | willful refusal or failure
of each such named corporate | 13 | | officer, director, partner, or member to comply
with this | 14 | | Section. The liability for the assessed penalty shall be
| 15 | | against the named employer first, and
if the named employer | 16 | | fails or refuses to pay the penalty to the
Commission within 30 | 17 | | days after the final order of the Commission, then the
named
| 18 | | corporate officers, directors, partners, or members who have | 19 | | been found to have
knowingly and willfully refused or failed | 20 | | to comply with this Section shall be
liable for the unpaid | 21 | | penalty or any unpaid portion of the penalty. Upon | 22 | | investigation by the Department of Insurance insurance | 23 | | non-compliance unit of the Commission , the Attorney General | 24 | | shall have the authority to prosecute all proceedings to | 25 | | enforce the civil and administrative provisions of this | 26 | | Section before the Commission. The Commission and the |
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| 1 | | Department of Insurance shall promulgate procedural rules for | 2 | | enforcing this Section relating to their respective duties | 3 | | prescribed herein .
| 4 | | If an employer is found to be in non-compliance with any | 5 | | provisions of paragraph (a) of this Section more than once, | 6 | | all minimum penalties will double. Therefore, upon the failure | 7 | | or refusal of an employer, service or adjustment company, or | 8 | | insurance carrier to comply with any order of the Commission | 9 | | pursuant to paragraph (c) of this Section disqualifying him or | 10 | | her to operate as a self-insurer and requiring him or her to | 11 | | insure his or her liability, or the knowing and willful | 12 | | failure of an employer to comply with a citation issued by an | 13 | | investigator with the Department of Insurance Illinois | 14 | | Workers' Compensation Commission Insurance Compliance | 15 | | Division , the Commission may assess a civil penalty of up to | 16 | | $1,000 per day for each day of such failure or refusal after | 17 | | the effective date of this amendatory Act of the 101st General | 18 | | Assembly. The minimum penalty under this Section shall be the | 19 | | sum of $20,000. In addition, employers with 2 or more | 20 | | violations of any provisions of paragraph (a) of this Section | 21 | | may not self-insure for one year or until all penalties are | 22 | | paid. | 23 | | Upon the failure or refusal of any employer, service or | 24 | | adjustment
company or insurance carrier to comply with the | 25 | | provisions of this Section
and with the orders of the | 26 | | Commission under this Section, or the order of
the court on |
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| 1 | | review after final adjudication, the Commission may bring a
| 2 | | civil action to recover the amount of the penalty in Cook | 3 | | County or in
Sangamon County in which litigation the | 4 | | Commission shall be represented by
the Attorney General. The | 5 | | Commission shall send notice of its finding of
non-compliance | 6 | | and assessment of the civil penalty to the Attorney General.
| 7 | | It shall be the duty of the Attorney General within 30 days | 8 | | after receipt
of the notice, to institute prosecutions and | 9 | | promptly prosecute all
reported violations of this Section.
| 10 | | Any individual employer, corporate officer or director of | 11 | | a corporate employer, partner of an employer partnership, or | 12 | | member of an employer limited liability company who, with the | 13 | | intent to avoid payment of compensation under this Act to an | 14 | | injured employee or the employee's dependents, knowingly | 15 | | transfers, sells, encumbers, assigns, or in any manner | 16 | | disposes of, conceals, secretes, or destroys any property | 17 | | belonging to the employer, officer, director, partner, or | 18 | | member is guilty of a Class 4 felony.
| 19 | | Penalties and fines collected pursuant to this paragraph | 20 | | (d) shall be deposited upon receipt into a special fund which | 21 | | shall be designated the Injured Workers' Benefit Fund, of | 22 | | which the State Treasurer is ex-officio custodian, such | 23 | | special fund to be held and disbursed in accordance with this | 24 | | paragraph (d) for the purposes hereinafter stated in this | 25 | | paragraph (d), upon the final order of the Commission. The | 26 | | Injured Workers' Benefit Fund shall be deposited the same as |
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| 1 | | are State funds and any interest accruing thereon shall be | 2 | | added thereto every 6 months. The Injured Workers' Benefit | 3 | | Fund is subject to audit the same as State funds and accounts | 4 | | and is protected by the general bond given by the State | 5 | | Treasurer. The Injured Workers' Benefit Fund is considered | 6 | | always appropriated for the purposes of disbursements as | 7 | | provided in this paragraph, and shall be paid out and | 8 | | disbursed as herein provided and shall not at any time be | 9 | | appropriated or diverted to any other use or purpose. Moneys | 10 | | in the Injured Workers' Benefit Fund shall be used only for | 11 | | payment of workers' compensation benefits for injured | 12 | | employees when the employer has failed to provide coverage as | 13 | | determined under this paragraph (d) and has failed to pay the | 14 | | benefits due to the injured employee. The Commission shall | 15 | | have the right to obtain reimbursement from the employer for | 16 | | compensation obligations paid by the Injured Workers' Benefit | 17 | | Fund. Any such amounts obtained shall be deposited by the | 18 | | Commission into the Injured Workers' Benefit Fund. If an | 19 | | injured employee or his or her personal representative | 20 | | receives payment from the Injured Workers' Benefit Fund, the | 21 | | State of Illinois has the same rights under paragraph (b) of | 22 | | Section 5 that the employer who failed to pay the benefits due | 23 | | to the injured employee would have had if the employer had paid | 24 | | those benefits, and any moneys recovered by the State as a | 25 | | result of the State's exercise of its rights under paragraph | 26 | | (b) of Section 5 shall be deposited into the Injured Workers' |
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| 1 | | Benefit Fund. The custodian of the Injured Workers' Benefit | 2 | | Fund shall be joined with the employer as a party respondent in | 3 | | the application for adjustment of claim. After July 1, 2006, | 4 | | the Commission shall make disbursements from the Fund once | 5 | | each year to each eligible claimant. An eligible claimant is | 6 | | an injured worker who has within the previous fiscal year | 7 | | obtained a final award for benefits from the Commission | 8 | | against the employer and the Injured Workers' Benefit Fund and | 9 | | has notified the Commission within 90 days of receipt of such | 10 | | award. Within a reasonable time after the end of each fiscal | 11 | | year, the Commission shall make a disbursement to each | 12 | | eligible claimant. At the time of disbursement, if there are | 13 | | insufficient moneys in the Fund to pay all claims, each | 14 | | eligible claimant shall receive a pro-rata share, as | 15 | | determined by the Commission, of the available moneys in the | 16 | | Fund for that year. Payment from the Injured Workers' Benefit | 17 | | Fund to an eligible claimant pursuant to this provision shall | 18 | | discharge the obligations of the Injured Workers' Benefit Fund | 19 | | regarding the award entered by the Commission.
| 20 | | (e) This Act shall not affect or disturb the continuance | 21 | | of any
existing insurance, mutual aid, benefit, or relief | 22 | | association or
department, whether maintained in whole or in | 23 | | part by the employer or
whether maintained by the employees, | 24 | | the payment of benefits of such
association or department | 25 | | being guaranteed by the employer or by some
person, firm or | 26 | | corporation for him or her: Provided, the employer contributes
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| 1 | | to such association or department an amount not less than the | 2 | | full
compensation herein provided, exclusive of the cost of | 3 | | the maintenance
of such association or department and without | 4 | | any expense to the
employee. This Act shall not prevent the | 5 | | organization and maintaining
under the insurance laws of this | 6 | | State of any benefit or insurance
company for the purpose of | 7 | | insuring against the compensation provided
for in this Act, | 8 | | the expense of which is maintained by the employer.
This Act | 9 | | shall not prevent the organization or maintaining under the
| 10 | | insurance laws of this State of any voluntary mutual aid, | 11 | | benefit or
relief association among employees for the payment | 12 | | of additional
accident or sick benefits.
| 13 | | (f) No existing insurance, mutual aid, benefit or relief | 14 | | association
or department shall, by reason of anything herein | 15 | | contained, be
authorized to discontinue its operation without | 16 | | first discharging its
obligations to any and all persons | 17 | | carrying insurance in the same or
entitled to relief or | 18 | | benefits therein.
| 19 | | (g) Any contract, oral, written or implied, of employment | 20 | | providing
for relief benefit, or insurance or any other device | 21 | | whereby the
employee is required to pay any premium or | 22 | | premiums for insurance
against the compensation provided for | 23 | | in this Act shall be null and
void. Any employer withholding | 24 | | from the wages of any employee any
amount for the purpose of | 25 | | paying any such premium shall be guilty of a
Class B | 26 | | 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 to | 5 | | 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 may | 8 | | be made a party to
the proceedings in which the employer is a | 9 | | party and an award may be
entered jointly against the employer | 10 | | 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 the | 14 | | exercise of the rights or
remedies granted to him or her by | 15 | | 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 |
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| 1 | | benefits in satisfaction of all
or a portion of the death | 2 | | benefits payable under this Act, in which case,
the employer's | 3 | | compensation premium shall be reduced accordingly.
| 4 | | (j) Within 45 days of receipt of an initial application or | 5 | | application
to renew self-insurance privileges the | 6 | | Self-Insurers Advisory Board shall
review and submit for | 7 | | approval by the Chairman of the Commission
recommendations of | 8 | | disposition of all initial applications to self-insure
and all | 9 | | applications to renew self-insurance privileges filed by | 10 | | private
self-insurers pursuant to the provisions of this | 11 | | Section and Section 4a-9
of this Act. Each private | 12 | | self-insurer shall submit with its initial and
renewal | 13 | | applications the application fee required by Section 4a-4 of | 14 | | this Act.
| 15 | | The Chairman of the Commission shall promptly act upon all | 16 | | initial
applications and applications for renewal in full | 17 | | accordance with the
recommendations of the Board or, should | 18 | | the Chairman disagree with any
recommendation of disposition | 19 | | of the Self-Insurer's Advisory Board, he
shall within 30 days | 20 | | of receipt of such recommendation provide to the Board
in | 21 | | writing the reasons supporting his decision. The Chairman | 22 | | shall also
promptly notify the employer of his decision within | 23 | | 15 days of receipt of
the recommendation of the Board.
| 24 | | If an employer is denied a renewal of self-insurance | 25 | | privileges pursuant
to application it shall retain said | 26 | | privilege for 120 days after receipt of
a notice of |
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| 1 | | cancellation of the privilege from the Chairman of the | 2 | | Commission.
| 3 | | All orders made by the Chairman under this Section shall | 4 | | be subject to
review by the courts, such review to be taken in | 5 | | the same manner and within
the same time as provided by | 6 | | subsection (f) of Section 19 of this Act for
review of awards | 7 | | and decisions of the Commission, upon the party seeking
the | 8 | | review filing with the clerk of the court to which such review | 9 | | is taken
a bond in an amount to be fixed and approved by the | 10 | | court to which the
review is taken, conditioned upon the | 11 | | payment of all compensation awarded
against the person taking | 12 | | such review pending a decision thereof and
further conditioned | 13 | | upon such other obligations as the court may impose.
Upon the | 14 | | review the Circuit Court shall have power to review all | 15 | | questions
of fact as well as of law.
| 16 | | (Source: P.A. 101-40, eff. 1-1-20.)
| 17 | | (Text of Section from P.A. 101-384)
| 18 | | Sec. 4. (a) Any employer, including but not limited to | 19 | | general contractors
and their subcontractors, who shall come | 20 | | within the provisions of
Section 3 of this Act, and any other | 21 | | employer who shall elect to provide
and pay the compensation | 22 | | provided for in this Act shall:
| 23 | | (1) File with the Commission annually an application | 24 | | for approval as a
self-insurer which shall include a | 25 | | current financial statement, and
annually, thereafter, an |
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| 1 | | application for renewal of self-insurance, which
shall | 2 | | include a current financial statement. Said
application | 3 | | and financial statement shall be signed and sworn to by | 4 | | the
president or vice president and secretary or assistant | 5 | | secretary of the
employer if it be a corporation, or by all | 6 | | of the partners, if it be a
copartnership, or by the owner | 7 | | if it be neither a copartnership nor a
corporation. All | 8 | | initial applications and all applications for renewal of
| 9 | | self-insurance must be submitted at least 60 days prior to | 10 | | the requested
effective date of self-insurance. An | 11 | | employer may elect to provide and pay
compensation as | 12 | | provided
for in this Act as a member of a group workers' | 13 | | compensation pool under Article
V 3/4 of the Illinois | 14 | | Insurance Code. If an employer becomes a member of a
group | 15 | | workers' compensation pool, the employer shall not be | 16 | | relieved of any
obligations imposed by this Act.
| 17 | | If the sworn application and financial statement of | 18 | | any such employer
does not satisfy the Commission of the | 19 | | financial ability of the employer
who has filed it, the | 20 | | Commission shall require such employer to,
| 21 | | (2) Furnish security, indemnity or a bond guaranteeing | 22 | | the payment
by the employer of the compensation provided | 23 | | for in this Act, provided
that any such employer whose | 24 | | application and financial statement shall
not have | 25 | | satisfied the commission of his or her financial ability | 26 | | and
who shall have secured his liability in part by excess |
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| 1 | | liability insurance
shall be required to furnish to the | 2 | | Commission security, indemnity or bond
guaranteeing his or | 3 | | her payment up to the effective limits of the excess
| 4 | | coverage, or
| 5 | | (3) Insure his entire liability to pay such | 6 | | compensation in some
insurance carrier authorized, | 7 | | licensed, or permitted to do such
insurance business in | 8 | | this State. Every policy of an insurance carrier,
insuring | 9 | | the payment of compensation under this Act shall cover all | 10 | | the
employees and the entire compensation liability of the | 11 | | insured:
Provided, however, that any employer may insure | 12 | | his or her compensation
liability with 2 or more insurance | 13 | | carriers or may insure a part and
qualify under subsection | 14 | | 1, 2, or 4 for the remainder of his or her
liability to pay | 15 | | such compensation, subject to the following two | 16 | | provisions:
| 17 | | Firstly, the entire compensation liability of the | 18 | | employer to
employees working at or from one location | 19 | | shall be insured in one such
insurance carrier or | 20 | | shall be self-insured, and
| 21 | | Secondly, the employer shall submit evidence | 22 | | satisfactorily to the
Commission that his or her | 23 | | entire liability for the compensation provided
for in | 24 | | this Act will be secured. Any provisions in any | 25 | | policy, or in any
endorsement attached thereto, | 26 | | attempting to limit or modify in any way,
the |
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| 1 | | liability of the insurance carriers issuing the same | 2 | | except as
otherwise provided herein shall be wholly | 3 | | void.
| 4 | | Nothing herein contained shall apply to policies of | 5 | | excess liability
carriage secured by employers who have | 6 | | been approved by the Commission
as self-insurers, or
| 7 | | (4) Make some other provision, satisfactory to the | 8 | | Commission, for
the securing of the payment of | 9 | | compensation provided for in this Act,
and
| 10 | | (5) Upon becoming subject to this Act and thereafter | 11 | | as often as the
Commission may in writing demand, file | 12 | | with the Commission in form prescribed
by it evidence of | 13 | | his or her compliance with the provision of this Section.
| 14 | | (a-1) Regardless of its state of domicile or its principal | 15 | | place of
business, an employer shall make payments to its | 16 | | insurance carrier or group
self-insurance fund, where | 17 | | applicable, based upon the premium rates of the
situs where | 18 | | the work or project is located in Illinois if:
| 19 | | (A) the employer is engaged primarily in the building | 20 | | and
construction industry; and
| 21 | | (B) subdivision (a)(3) of this Section applies to the | 22 | | employer or
the employer is a member of a group | 23 | | self-insurance plan as defined in
subsection (1) of | 24 | | Section 4a.
| 25 | | The Illinois Workers' Compensation Commission shall impose | 26 | | a penalty upon an employer
for violation of this subsection |
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| 1 | | (a-1) if:
| 2 | | (i) the employer is given an opportunity at a hearing | 3 | | to present
evidence of its compliance with this subsection | 4 | | (a-1); and
| 5 | | (ii) after the hearing, the Commission finds that the | 6 | | employer
failed to make payments upon the premium rates of | 7 | | the situs where the work or
project is located in | 8 | | Illinois.
| 9 | | The penalty shall not exceed $1,000 for each day of work | 10 | | for which
the employer failed to make payments upon the | 11 | | premium rates of the situs where
the
work or project is located | 12 | | in Illinois, but the total penalty shall not exceed
$50,000 | 13 | | for each project or each contract under which the work was
| 14 | | performed.
| 15 | | Any penalty under this subsection (a-1) must be imposed | 16 | | not later
than one year after the expiration of the applicable | 17 | | limitation period
specified in subsection (d) of Section 6 of | 18 | | this Act. Penalties imposed under
this subsection (a-1) shall | 19 | | be deposited into the Illinois Workers' Compensation | 20 | | Commission
Operations Fund, a special fund that is created in | 21 | | the State treasury. Subject
to appropriation, moneys in the | 22 | | Fund shall be used solely for the operations
of the Illinois | 23 | | Workers' Compensation Commission and by the Department of | 24 | | Insurance for the purposes authorized in subsection (c) of | 25 | | Section 25.5 of this Act.
| 26 | | (a-2) Every Employee Leasing Company (ELC), as defined in |
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| 1 | | Section 15 of the Employee Leasing Company Act, shall at a | 2 | | minimum provide the following information to the Commission or | 3 | | any entity designated by the Commission regarding each | 4 | | workers' compensation insurance policy issued to the ELC: | 5 | | (1) Any client company of the ELC listed as an | 6 | | additional named insured. | 7 | | (2) Any informational schedule attached to the master | 8 | | policy that identifies any individual client company's | 9 | | name, FEIN, and job location. | 10 | | (3) Any certificate of insurance coverage document | 11 | | issued to a client company specifying its rights and | 12 | | obligations under the master policy that establishes both | 13 | | the identity and status of the client, as well as the dates | 14 | | of inception and termination of coverage, if applicable. | 15 | | (b) The sworn application and financial statement, or | 16 | | security,
indemnity or bond, or amount of insurance, or other | 17 | | provisions, filed,
furnished, carried, or made by the | 18 | | employer, as the case may be, shall
be subject to the approval | 19 | | of the Commission.
| 20 | | Deposits under escrow agreements shall be cash, negotiable | 21 | | United
States government bonds or negotiable general | 22 | | obligation bonds of the
State of Illinois. Such cash or bonds | 23 | | shall be deposited in
escrow with any State or National Bank or | 24 | | Trust Company having trust
authority in the State of Illinois.
| 25 | | Upon the approval of the sworn application and financial | 26 | | statement,
security, indemnity or bond or amount of insurance, |
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| 1 | | filed, furnished or
carried, as the case may be, the | 2 | | Commission shall send to the employer
written notice of its | 3 | | approval thereof. The certificate of compliance
by the | 4 | | employer with the provisions of subparagraphs (2) and (3) of
| 5 | | paragraph (a) of this Section shall be delivered by the | 6 | | insurance
carrier to the Illinois Workers' Compensation | 7 | | Commission within five days after the
effective date of the | 8 | | policy so certified. The insurance so certified
shall cover | 9 | | all compensation liability occurring during the time that
the | 10 | | insurance is in effect and no further certificate need be | 11 | | filed in case
such insurance is renewed, extended or otherwise | 12 | | continued by such
carrier. The insurance so certified shall | 13 | | not be cancelled or in the
event that such insurance is not | 14 | | renewed, extended or otherwise
continued, such insurance shall | 15 | | not be terminated until at least 10
days after receipt by the | 16 | | Illinois Workers' Compensation Commission of notice of the
| 17 | | cancellation or termination of said insurance; provided, | 18 | | however, that
if the employer has secured insurance from | 19 | | another insurance carrier, or
has otherwise secured the | 20 | | payment of compensation in accordance with
this Section, and | 21 | | such insurance or other security becomes effective
prior to | 22 | | the expiration of the 10 days, cancellation or termination | 23 | | may, at
the option of the insurance carrier indicated in such | 24 | | notice, be effective
as of the effective date of such other | 25 | | insurance or security.
| 26 | | (c) Whenever the Commission shall find that any |
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| 1 | | corporation,
company, association, aggregation of individuals, | 2 | | reciprocal or
interinsurers exchange, or other insurer | 3 | | effecting workers' compensation
insurance in this State shall | 4 | | be insolvent, financially unsound, or
unable to fully meet all | 5 | | payments and liabilities assumed or to be
assumed for | 6 | | compensation insurance in this State, or shall practice a
| 7 | | policy of delay or unfairness toward employees in the | 8 | | adjustment,
settlement, or payment of benefits due such | 9 | | employees, the Commission
may after reasonable notice and | 10 | | hearing order and direct that such
corporation, company, | 11 | | association, aggregation of individuals,
reciprocal or | 12 | | interinsurers exchange, or insurer, shall from and after a
| 13 | | date fixed in such order discontinue the writing of any such | 14 | | workers'
compensation insurance in this State. Subject to such | 15 | | modification of
the order as the Commission may later make on | 16 | | review of the order,
as herein provided, it shall thereupon be | 17 | | unlawful for any such
corporation, company, association, | 18 | | aggregation of individuals,
reciprocal or interinsurers | 19 | | exchange, or insurer to effect any workers'
compensation | 20 | | insurance in this State. A copy of the order shall be served
| 21 | | upon the Director of Insurance by registered mail. Whenever | 22 | | the Commission
finds that any service or adjustment company | 23 | | used or employed
by a self-insured employer or by an insurance | 24 | | carrier to process,
adjust, investigate, compromise or | 25 | | otherwise handle claims under this
Act, has practiced or is | 26 | | practicing a policy of delay or unfairness
toward employees in |
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| 1 | | the adjustment, settlement or payment of benefits
due such | 2 | | employees, the Commission may after reasonable notice and
| 3 | | hearing order and direct that such service or adjustment | 4 | | company shall
from and after a date fixed in such order be | 5 | | prohibited from processing,
adjusting, investigating, | 6 | | compromising or otherwise handling claims
under this Act.
| 7 | | Whenever the Commission finds that any self-insured | 8 | | employer has
practiced or is practicing delay or unfairness | 9 | | toward employees in the
adjustment, settlement or payment of | 10 | | benefits due such employees, the
Commission may, after | 11 | | reasonable notice and hearing, order and direct
that after a | 12 | | date fixed in the order such self-insured employer shall be
| 13 | | disqualified to operate as a self-insurer and shall be | 14 | | required to
insure his entire liability to pay compensation in | 15 | | some insurance
carrier authorized, licensed and permitted to | 16 | | do such insurance business
in this State, as provided in | 17 | | subparagraph 3 of paragraph (a) of this
Section.
| 18 | | All orders made by the Commission under this Section shall | 19 | | be subject
to review by the courts, said review to be taken in | 20 | | the same manner and
within the same time as provided by Section | 21 | | 19 of this Act for review of
awards and decisions of the | 22 | | Commission, upon the party seeking the
review filing with the | 23 | | clerk of the court to which said review is taken
a bond in an | 24 | | amount to be fixed and approved by the court to which the
| 25 | | review is taken, conditioned upon the payment of all | 26 | | compensation awarded
against the person taking said review |
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| 1 | | pending a decision thereof and
further conditioned upon such | 2 | | other obligations as the court may impose.
Upon the review the | 3 | | Circuit Court shall have power to review all questions
of fact | 4 | | as well as of law. The penalty hereinafter provided for in this
| 5 | | paragraph shall not attach and shall not begin to run until the | 6 | | final
determination of the order of the Commission.
| 7 | | (d) Whenever a panel of 3 Commissioners comprised of one | 8 | | member of the employing class, one representative of a labor | 9 | | organization recognized under the National Labor Relations Act | 10 | | or an attorney who has represented labor organizations or has | 11 | | represented employees in workers' compensation cases, and one | 12 | | member not identified with either the employing class or a | 13 | | labor organization, with due process and after a hearing, | 14 | | determines an employer has knowingly failed to provide | 15 | | coverage as required by paragraph (a) of this Section, the | 16 | | failure shall be deemed an immediate serious danger to public | 17 | | health, safety, and welfare sufficient to justify service by | 18 | | the Commission of a work-stop order on such employer, | 19 | | requiring the cessation of all business operations of such | 20 | | employer at the place of employment or job site. Any law | 21 | | enforcement agency in the State shall, at the request of the | 22 | | Commission, render any assistance necessary to carry out the | 23 | | provisions of this Section, including, but not limited to, | 24 | | preventing any employee of such employer from remaining at a | 25 | | place of employment or job site after a work-stop order has | 26 | | taken effect. Any work-stop order shall be lifted upon proof |
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| 1 | | of insurance as required by this Act. Any orders under this | 2 | | Section are appealable under Section 19(f) to the Circuit | 3 | | Court.
| 4 | | Any individual employer, corporate officer or director of | 5 | | a corporate employer, partner of an employer partnership, or | 6 | | member of an employer limited liability company who knowingly | 7 | | fails to provide coverage as required by paragraph (a) of this | 8 | | Section is guilty of a Class 4 felony. This provision shall not | 9 | | apply to any corporate officer or director of any | 10 | | publicly-owned corporation. Each day's violation constitutes a | 11 | | separate offense. The State's Attorney of the county in which | 12 | | the violation occurred, or the Attorney General, shall bring | 13 | | such actions in the name of the People of the State of | 14 | | Illinois, or may, in addition to other remedies provided in | 15 | | this Section, bring an action for an injunction to restrain | 16 | | the violation or to enjoin the operation of any such employer.
| 17 | | Any individual employer, corporate officer or director of | 18 | | a corporate employer, partner of an employer partnership, or | 19 | | member of an employer limited liability company who | 20 | | negligently fails to provide coverage as required by paragraph | 21 | | (a) of this Section is guilty of a Class A misdemeanor. This | 22 | | provision shall not apply to any corporate officer or director | 23 | | of any publicly-owned corporation. Each day's violation | 24 | | constitutes a separate offense. The State's Attorney of the | 25 | | county in which the violation occurred, or the Attorney | 26 | | General, shall bring such actions in the name of the People of |
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| 1 | | the State of Illinois.
| 2 | | The criminal penalties in this subsection (d) shall not | 3 | | apply where
there exists a good faith dispute as to the | 4 | | existence of an
employment relationship. Evidence of good | 5 | | faith shall
include, but not be limited to, compliance with | 6 | | the definition
of employee as used by the Internal Revenue | 7 | | Service.
| 8 | | Employers who are subject to and who knowingly fail to | 9 | | comply with this Section shall not be entitled to the benefits | 10 | | of this Act during the period of noncompliance, but shall be | 11 | | liable in an action under any other applicable law of this | 12 | | State. In the action, such employer shall not avail himself or | 13 | | herself of the defenses of assumption of risk or negligence or | 14 | | that the injury was due to a co-employee. In the action, proof | 15 | | of the injury shall constitute prima facie evidence of | 16 | | negligence on the part of such employer and the burden shall be | 17 | | on such employer to show freedom of negligence resulting in | 18 | | the injury. The employer shall not join any other defendant in | 19 | | any such civil action. Nothing in this amendatory Act of the | 20 | | 94th General Assembly shall affect the employee's rights under | 21 | | subdivision (a)3 of Section 1 of this Act. Any employer or | 22 | | carrier who makes payments under subdivision (a)3 of Section 1 | 23 | | of this Act shall have a right of reimbursement from the | 24 | | proceeds of any recovery under this Section.
| 25 | | An employee of an uninsured employer, or the employee's | 26 | | dependents in case death ensued, may, instead of proceeding |
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| 1 | | against the employer in a civil action in court, file an | 2 | | application for adjustment of claim with the Commission in | 3 | | accordance with the provisions of this Act and the Commission | 4 | | shall hear and determine the application for adjustment of | 5 | | claim in the manner in which other claims are heard and | 6 | | determined before the Commission.
| 7 | | All proceedings under this subsection (d) shall be | 8 | | reported on an annual basis to the Workers' Compensation | 9 | | Advisory Board.
| 10 | | An investigator with the Department of Insurance Illinois | 11 | | Workers' Compensation Commission Insurance Compliance Division | 12 | | may issue a citation to any employer that is not in compliance | 13 | | with its obligation to have workers' compensation insurance | 14 | | under this Act. The amount of the fine shall be based on the | 15 | | period of time the employer was in non-compliance, but shall | 16 | | be no less than $500, and shall not exceed $2,500. An employer | 17 | | that has been issued a citation shall pay the fine to the | 18 | | Department of Insurance Commission and provide to the | 19 | | Department of Insurance Commission proof that it obtained the | 20 | | required workers' compensation insurance within 10 days after | 21 | | the citation was issued. This Section does not affect any | 22 | | other obligations this Act imposes on employers. | 23 | | Upon a finding by the Commission, after reasonable notice | 24 | | and
hearing, of the knowing and wilful failure or refusal of an | 25 | | employer to
comply with
any of the provisions of paragraph (a) | 26 | | of this Section, the failure or
refusal of an employer, |
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| 1 | | service or adjustment company, or an insurance
carrier to | 2 | | comply with any order of the Illinois Workers' Compensation | 3 | | Commission pursuant to
paragraph (c) of this Section | 4 | | disqualifying him or her to operate as a self
insurer and | 5 | | requiring him or her to insure his or her liability, or the | 6 | | knowing and willful failure of an employer to comply with a | 7 | | citation issued by an investigator with the Department of | 8 | | Insurance Illinois Workers' Compensation Commission Insurance | 9 | | Compliance Division , the
Commission may assess a civil penalty | 10 | | of up to $500 per day for each day of
such failure or refusal | 11 | | after the effective date of this amendatory Act of
1989. The | 12 | | minimum penalty under this Section shall be the sum of | 13 | | $10,000.
Each day of such failure or refusal shall constitute | 14 | | a separate offense.
The Commission may assess the civil | 15 | | penalty personally and individually
against the corporate | 16 | | officers and directors of a corporate employer, the
partners | 17 | | of an employer partnership, and the members of an employer | 18 | | limited
liability company, after a finding of a knowing and | 19 | | willful refusal or failure
of each such named corporate | 20 | | officer, director, partner, or member to comply
with this | 21 | | Section. The liability for the assessed penalty shall be
| 22 | | against the named employer first, and
if the named employer | 23 | | fails or refuses to pay the penalty to the
Commission within 30 | 24 | | days after the final order of the Commission, then the
named
| 25 | | corporate officers, directors, partners, or members who have | 26 | | been found to have
knowingly and willfully refused or failed |
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| 1 | | to comply with this Section shall be
liable for the unpaid | 2 | | penalty or any unpaid portion of the penalty. Upon | 3 | | investigation by the Department of Insurance insurance | 4 | | non-compliance unit of the Commission , the Attorney General | 5 | | shall have the authority to prosecute all proceedings to | 6 | | enforce the civil and administrative provisions of this | 7 | | Section before the Commission. The Commission and the | 8 | | Department of Insurance shall promulgate procedural rules for | 9 | | enforcing this Section relating to their respective duties | 10 | | prescribed herein .
| 11 | | Upon the failure or refusal of any employer, service or | 12 | | adjustment
company or insurance carrier to comply with the | 13 | | provisions of this Section
and with the orders of the | 14 | | Commission under this Section, or the order of
the court on | 15 | | review after final adjudication, the Commission may bring a
| 16 | | civil action to recover the amount of the penalty in Cook | 17 | | County or in
Sangamon County in which litigation the | 18 | | Commission shall be represented by
the Attorney General. The | 19 | | Commission shall send notice of its finding of
non-compliance | 20 | | and assessment of the civil penalty to the Attorney General.
| 21 | | It shall be the duty of the Attorney General within 30 days | 22 | | after receipt
of the notice, to institute prosecutions and | 23 | | promptly prosecute all
reported violations of this Section.
| 24 | | Any individual employer, corporate officer or director of | 25 | | a corporate employer, partner of an employer partnership, or | 26 | | member of an employer limited liability company who, with the |
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| 1 | | intent to avoid payment of compensation under this Act to an | 2 | | injured employee or the employee's dependents, knowingly | 3 | | transfers, sells, encumbers, assigns, or in any manner | 4 | | disposes of, conceals, secretes, or destroys any property | 5 | | belonging to the employer, officer, director, partner, or | 6 | | member is guilty of a Class 4 felony.
| 7 | | Penalties and fines collected pursuant to this paragraph | 8 | | (d) shall be deposited upon receipt into a special fund which | 9 | | shall be designated the Injured Workers' Benefit Fund, of | 10 | | which the State Treasurer is ex-officio custodian, such | 11 | | special fund to be held and disbursed in accordance with this | 12 | | paragraph (d) for the purposes hereinafter stated in this | 13 | | paragraph (d), upon the final order of the Commission. The | 14 | | Injured Workers' Benefit Fund shall be deposited the same as | 15 | | are State funds and any interest accruing thereon shall be | 16 | | added thereto every 6 months. The Injured Workers' Benefit | 17 | | Fund is subject to audit the same as State funds and accounts | 18 | | and is protected by the general bond given by the State | 19 | | Treasurer. The Injured Workers' Benefit Fund is considered | 20 | | always appropriated for the purposes of disbursements as | 21 | | provided in this paragraph, and shall be paid out and | 22 | | disbursed as herein provided and shall not at any time be | 23 | | appropriated or diverted to any other use or purpose. Moneys | 24 | | in the Injured Workers' Benefit Fund shall be used only for | 25 | | payment of workers' compensation benefits for injured | 26 | | employees when the employer has failed to provide coverage as |
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| 1 | | determined under this paragraph (d) and has failed to pay the | 2 | | benefits due to the injured employee. The Commission shall | 3 | | have the right to obtain reimbursement from the employer for | 4 | | compensation obligations paid by the Injured Workers' Benefit | 5 | | Fund. Any such amounts obtained shall be deposited by the | 6 | | Commission into the Injured Workers' Benefit Fund. If an | 7 | | injured employee or his or her personal representative | 8 | | receives payment from the Injured Workers' Benefit Fund, the | 9 | | State of Illinois has the same rights under paragraph (b) of | 10 | | Section 5 that the employer who failed to pay the benefits due | 11 | | to the injured employee would have had if the employer had paid | 12 | | those benefits, and any moneys recovered by the State as a | 13 | | result of the State's exercise of its rights under paragraph | 14 | | (b) of Section 5 shall be deposited into the Injured Workers' | 15 | | Benefit Fund. The custodian of the Injured Workers' Benefit | 16 | | Fund shall be joined with the employer as a party respondent in | 17 | | the application for adjustment of claim. After July 1, 2006, | 18 | | the Commission shall make disbursements from the Fund once | 19 | | each year to each eligible claimant. An eligible claimant is | 20 | | an injured worker who has within the previous fiscal year | 21 | | obtained a final award for benefits from the Commission | 22 | | against the employer and the Injured Workers' Benefit Fund and | 23 | | has notified the Commission within 90 days of receipt of such | 24 | | award. Within a reasonable time after the end of each fiscal | 25 | | year, the Commission shall make a disbursement to each | 26 | | eligible claimant. At the time of disbursement, if there are |
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| 1 | | insufficient moneys in the Fund to pay all claims, each | 2 | | eligible claimant shall receive a pro-rata share, as | 3 | | determined by the Commission, of the available moneys in the | 4 | | Fund for that year. Payment from the Injured Workers' Benefit | 5 | | Fund to an eligible claimant pursuant to this provision shall | 6 | | discharge the obligations of the Injured Workers' Benefit Fund | 7 | | regarding the award entered by the Commission.
| 8 | | (e) This Act shall not affect or disturb the continuance | 9 | | of any
existing insurance, mutual aid, benefit, or relief | 10 | | association or
department, whether maintained in whole or in | 11 | | part by the employer or
whether maintained by the employees, | 12 | | the payment of benefits of such
association or department | 13 | | being guaranteed by the employer or by some
person, firm or | 14 | | corporation for him or her: Provided, the employer contributes
| 15 | | to such association or department an amount not less than the | 16 | | full
compensation herein provided, exclusive of the cost of | 17 | | the maintenance
of such association or department and without | 18 | | any expense to the
employee. This Act shall not prevent the | 19 | | organization and maintaining
under the insurance laws of this | 20 | | State of any benefit or insurance
company for the purpose of | 21 | | insuring against the compensation provided
for in this Act, | 22 | | the expense of which is maintained by the employer.
This Act | 23 | | shall not prevent the organization or maintaining under the
| 24 | | insurance laws of this State of any voluntary mutual aid, | 25 | | benefit or
relief association among employees for the payment | 26 | | of additional
accident or sick benefits.
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| 1 | | (f) No existing insurance, mutual aid, benefit or relief | 2 | | association
or department shall, by reason of anything herein | 3 | | contained, be
authorized to discontinue its operation without | 4 | | first discharging its
obligations to any and all persons | 5 | | carrying insurance in the same or
entitled to relief or | 6 | | benefits therein.
| 7 | | (g) Any contract, oral, written or implied, of employment | 8 | | providing
for relief benefit, or insurance or any other device | 9 | | whereby the
employee is required to pay any premium or | 10 | | premiums for insurance
against the compensation provided for | 11 | | in this Act shall be null and
void. Any employer withholding | 12 | | from the wages of any employee any
amount for the purpose of | 13 | | paying any such premium shall be guilty of a
Class B | 14 | | misdemeanor.
| 15 | | In the event the employer does not pay the compensation | 16 | | for which he or
she is liable, then an insurance company, | 17 | | association or insurer which may
have insured such employer | 18 | | against such liability shall become primarily
liable to pay to | 19 | | the employee, his or her personal representative or
| 20 | | beneficiary the compensation required by the provisions of | 21 | | this Act to
be paid by such employer. The insurance carrier may | 22 | | be made a party to
the proceedings in which the employer is a | 23 | | party and an award may be
entered jointly against the employer | 24 | | and the insurance carrier.
| 25 | | (h) It shall be unlawful for any employer, insurance | 26 | | company or
service or adjustment company to interfere with, |
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| 1 | | restrain or coerce an
employee in any manner whatsoever in the | 2 | | exercise of the rights or
remedies granted to him or her by | 3 | | this Act or to discriminate, attempt to
discriminate, or | 4 | | threaten to discriminate against an employee in any way
| 5 | | because of his or her exercise of the rights or remedies | 6 | | granted to
him or her by this Act.
| 7 | | It shall be unlawful for any employer, individually or | 8 | | through any
insurance company or service or adjustment | 9 | | company, to discharge or to
threaten to discharge, or to | 10 | | refuse to rehire or recall to active
service in a suitable | 11 | | capacity an employee because of the exercise of
his or her | 12 | | rights or remedies granted to him or her by this Act.
| 13 | | (i) If an employer elects to obtain a life insurance | 14 | | policy on his
employees, he may also elect to apply such | 15 | | benefits in satisfaction of all
or a portion of the death | 16 | | benefits payable under this Act, in which case,
the employer's | 17 | | compensation premium shall be reduced accordingly.
| 18 | | (j) Within 45 days of receipt of an initial application or | 19 | | application
to renew self-insurance privileges the | 20 | | Self-Insurers Advisory Board shall
review and submit for | 21 | | approval by the Chairman of the Commission
recommendations of | 22 | | disposition of all initial applications to self-insure
and all | 23 | | applications to renew self-insurance privileges filed by | 24 | | private
self-insurers pursuant to the provisions of this | 25 | | Section and Section 4a-9
of this Act. Each private | 26 | | self-insurer shall submit with its initial and
renewal |
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| 1 | | applications the application fee required by Section 4a-4 of | 2 | | this Act.
| 3 | | The Chairman of the Commission shall promptly act upon all | 4 | | initial
applications and applications for renewal in full | 5 | | accordance with the
recommendations of the Board or, should | 6 | | the Chairman disagree with any
recommendation of disposition | 7 | | of the Self-Insurer's Advisory Board, he
shall within 30 days | 8 | | of receipt of such recommendation provide to the Board
in | 9 | | writing the reasons supporting his decision. The Chairman | 10 | | shall also
promptly notify the employer of his decision within | 11 | | 15 days of receipt of
the recommendation of the Board.
| 12 | | If an employer is denied a renewal of self-insurance | 13 | | privileges pursuant
to application it shall retain said | 14 | | privilege for 120 days after receipt of
a notice of | 15 | | cancellation of the privilege from the Chairman of the | 16 | | Commission.
| 17 | | All orders made by the Chairman under this Section shall | 18 | | be subject to
review by the courts, such review to be taken in | 19 | | the same manner and within
the same time as provided by | 20 | | subsection (f) of Section 19 of this Act for
review of awards | 21 | | and decisions of the Commission, upon the party seeking
the | 22 | | review filing with the clerk of the court to which such review | 23 | | is taken
a bond in an amount to be fixed and approved by the | 24 | | court to which the
review is taken, conditioned upon the | 25 | | payment of all compensation awarded
against the person taking | 26 | | such review pending a decision thereof and
further conditioned |
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| 1 | | upon such other obligations as the court may impose.
Upon the | 2 | | review the Circuit Court shall have power to review all | 3 | | questions
of fact as well as of law.
| 4 | | (Source: P.A. 101-384, eff. 1-1-20 .)
| 5 | | (820 ILCS 305/25.5)
| 6 | | Sec. 25.5. Unlawful acts; penalties. | 7 | | (a) It is unlawful for any person, company, corporation, | 8 | | insurance carrier, healthcare provider, or other entity to: | 9 | | (1) Intentionally present or cause to be presented any | 10 | | false or
fraudulent claim for the payment of any workers' | 11 | | compensation
benefit.
| 12 | | (2) Intentionally make or cause to be made any false | 13 | | or
fraudulent material statement or material | 14 | | representation for the
purpose of obtaining or denying any | 15 | | workers' compensation
benefit.
| 16 | | (3) Intentionally make or cause to be made any false | 17 | | or
fraudulent statements with regard to entitlement to | 18 | | workers'
compensation benefits with the intent to prevent | 19 | | an injured
worker from making a legitimate claim for any | 20 | | workers'
compensation benefits.
| 21 | | (4) Intentionally prepare or provide an invalid, | 22 | | false, or
counterfeit certificate of insurance as proof of | 23 | | workers'
compensation insurance.
| 24 | | (5) Intentionally make or cause to be made any false | 25 | | or
fraudulent material statement or material |
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| 1 | | representation for the
purpose of obtaining workers' | 2 | | compensation insurance at less
than the proper amount rate | 3 | | for that insurance.
| 4 | | (6) Intentionally make or cause to be made any false | 5 | | or
fraudulent material statement or material | 6 | | representation on an
initial or renewal self-insurance | 7 | | application or accompanying
financial statement for the | 8 | | purpose of obtaining self-insurance
status or reducing the | 9 | | amount of security that may be required
to be furnished | 10 | | pursuant to Section 4 of this Act.
| 11 | | (7) Intentionally make or cause to be made any false | 12 | | or
fraudulent material statement to the Department of | 13 | | Insurance's
fraud and insurance non-compliance unit in the | 14 | | course of an
investigation of fraud or insurance | 15 | | non-compliance.
| 16 | | (8) Intentionally assist, abet, solicit, or conspire | 17 | | with any
person, company, or other entity to commit any of | 18 | | the acts in
paragraph (1), (2), (3), (4), (5), (6), or (7) | 19 | | of this subsection (a).
| 20 | | (9) Intentionally present a bill or statement for the | 21 | | payment for medical services that were not provided. | 22 | | For the purposes of paragraphs (2), (3), (5), (6), (7), | 23 | | and (9), the term "statement" includes any writing, notice, | 24 | | proof of injury, bill for services, hospital or doctor records | 25 | | and reports, or X-ray and test results.
| 26 | | (b) Sentences for violations of subsection (a) are as |
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| 1 | | follows:
| 2 | | (1) A violation in which the value of the property | 3 | | obtained or attempted to be obtained is $300 or less is a | 4 | | Class A misdemeanor. | 5 | | (2) A violation in which the value of the property | 6 | | obtained or attempted to be obtained is more than $300 but | 7 | | not more than $10,000 is a Class 3 felony. | 8 | | (3) A violation in which the value of the property | 9 | | obtained or attempted to be obtained is more than $10,000 | 10 | | but not more than $100,000 is a Class 2 felony. | 11 | | (4) A violation in which the value of the property | 12 | | obtained or attempted to be obtained is more than $100,000 | 13 | | is a Class 1 felony. | 14 | | (5) A person convicted under this Section shall be | 15 | | ordered to pay monetary restitution to the insurance | 16 | | company or self-insured entity or any other person for any | 17 | | financial loss sustained as a result of a violation of | 18 | | this Section, including any court costs and attorney fees. | 19 | | An order of restitution also includes expenses incurred | 20 | | and paid by the State of Illinois or an insurance company | 21 | | or self-insured entity in connection with any medical | 22 | | evaluation or treatment services. | 23 | | For the purposes of this Section, where the exact value of | 24 | | property obtained or attempted to be obtained is either not | 25 | | alleged or is not specifically set by the terms of a policy of | 26 | | insurance, the value of the property shall be the fair market |
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| 1 | | replacement value of the property claimed to be lost, the | 2 | | reasonable costs of reimbursing a vendor or other claimant for | 3 | | services to be rendered, or both. Notwithstanding the | 4 | | foregoing, an insurance company, self-insured entity, or any | 5 | | other person suffering financial loss sustained as a result of | 6 | | violation of this Section may seek restitution, including | 7 | | court costs and attorney's fees in a civil action in a court of | 8 | | competent jurisdiction. | 9 | | (c) The Department of Insurance shall establish a fraud | 10 | | and insurance non-compliance unit responsible for | 11 | | investigating incidences of fraud and insurance non-compliance | 12 | | pursuant to this Section. The size of the staff of the unit | 13 | | shall be subject to appropriation by the General Assembly. It | 14 | | shall be the duty of the fraud and insurance non-compliance | 15 | | unit to determine the identity of insurance carriers, | 16 | | employers, employees, or other persons or entities who have | 17 | | violated the fraud and insurance non-compliance provisions of | 18 | | this Section. The fraud and insurance non-compliance unit | 19 | | shall report violations of the fraud and insurance | 20 | | non-compliance provisions of this Section to the Special | 21 | | Prosecutions Bureau of the Criminal Division of the Office of | 22 | | the Attorney General or to the State's Attorney of the county | 23 | | in which the offense allegedly occurred, either of whom has | 24 | | the authority to prosecute violations under this Section.
| 25 | | With respect to the subject of any investigation being | 26 | | conducted, the fraud and insurance non-compliance unit shall |
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| 1 | | have the general power of subpoena of the Department of | 2 | | Insurance, including the authority to issue a subpoena to a | 3 | | medical provider, pursuant to Section 8-802 of the Code of | 4 | | Civil Procedure.
| 5 | | (d) Any person may report allegations of insurance | 6 | | non-compliance and fraud pursuant to this Section to the | 7 | | Department of Insurance's fraud and insurance non-compliance | 8 | | unit whose duty it shall be to investigate the report. The unit | 9 | | shall notify the Commission of reports of insurance | 10 | | non-compliance. Any person reporting an allegation of | 11 | | insurance non-compliance or fraud against either an employee | 12 | | or employer under this Section must identify himself. Except | 13 | | as provided in this subsection and in subsection (e), all | 14 | | reports shall remain confidential except to refer an | 15 | | investigation to the Attorney General or State's Attorney for | 16 | | prosecution or if the fraud and insurance non-compliance | 17 | | unit's investigation reveals that the conduct reported may be | 18 | | in violation of other laws or regulations of the State of | 19 | | Illinois, the unit may report such conduct to the appropriate | 20 | | governmental agency charged with administering such laws and | 21 | | regulations. Any person who intentionally makes a false report | 22 | | under this Section to the fraud and insurance non-compliance | 23 | | unit is guilty of a Class A misdemeanor.
| 24 | | (e) In order for the fraud and insurance non-compliance | 25 | | unit to investigate a report of fraud related to an employee's | 26 | | claim, (i) the employee must have filed with the Commission an |
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| 1 | | Application for Adjustment of Claim and the employee must have | 2 | | either received or attempted to receive benefits under this | 3 | | Act that are related to the reported fraud or (ii) the employee | 4 | | must have made a written demand for the payment of benefits | 5 | | that are related to the reported fraud. There shall be no | 6 | | immunity, under this Act or otherwise, for any person who | 7 | | files a false report or who files a report without good and | 8 | | just cause. Confidentiality of medical information shall be | 9 | | strictly maintained. Investigations that are not referred for | 10 | | prosecution shall be destroyed upon the expiration of the | 11 | | statute of limitations for the acts under investigation and | 12 | | shall not be disclosed except that the person making the | 13 | | report shall be notified that the investigation is being | 14 | | closed. It is unlawful for any employer, insurance carrier, | 15 | | service adjustment company, third party administrator, | 16 | | self-insured, or similar entity to file or threaten to file a | 17 | | report of fraud against an employee because of the exercise by | 18 | | the employee of the rights and remedies granted to the | 19 | | employee by this Act.
| 20 | | (e-5) (Blank). The fraud and insurance non-compliance unit | 21 | | shall procure and implement a system utilizing advanced | 22 | | analytics inclusive of predictive modeling, data mining, | 23 | | social network analysis, and scoring algorithms for the | 24 | | detection and prevention of fraud, waste, and abuse on or | 25 | | before January 1, 2012. The fraud and insurance non-compliance | 26 | | unit shall procure this system using a request for proposals |
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| 1 | | process governed by the Illinois Procurement Code and rules | 2 | | adopted under that Code. The fraud and insurance | 3 | | non-compliance unit shall provide a report to the President of | 4 | | the Senate, Speaker of the House of Representatives, Minority | 5 | | Leader of the House of Representatives, Minority Leader of the | 6 | | Senate, Governor, Chairman of the Commission, and Director of | 7 | | Insurance on or before July 1, 2012 and annually thereafter | 8 | | detailing its activities and providing recommendations | 9 | | regarding opportunities for additional fraud waste and abuse | 10 | | detection and prevention. | 11 | | (f) Any person convicted of fraud related to workers' | 12 | | compensation pursuant to this Section shall be subject to the | 13 | | penalties prescribed in the Criminal Code of 2012 and shall be | 14 | | ineligible to receive or retain any compensation, disability, | 15 | | or medical benefits as defined in this Act if the | 16 | | compensation, disability, or medical benefits were owed or | 17 | | received as a result of fraud for which the recipient of the | 18 | | compensation, disability, or medical benefit was convicted. | 19 | | This subsection applies to accidental injuries or diseases | 20 | | that occur on or after the effective date of this amendatory | 21 | | Act of the 94th General Assembly.
| 22 | | (g) Civil liability. Any person convicted of fraud who | 23 | | knowingly obtains, attempts to obtain, or causes to be | 24 | | obtained any benefits under this Act by the making of a false | 25 | | claim or who knowingly misrepresents any material fact shall | 26 | | be civilly liable to the payor of benefits or the insurer or |
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| 1 | | the payor's or insurer's subrogee or assignee in an amount | 2 | | equal to 3 times the value of the benefits or insurance | 3 | | coverage wrongfully obtained or twice the value of the | 4 | | benefits or insurance coverage attempted to be obtained, plus | 5 | | reasonable attorney's fees and expenses incurred by the payor | 6 | | or the payor's subrogee or assignee who successfully brings a | 7 | | claim under this subsection. This subsection applies to | 8 | | accidental injuries or diseases that occur on or after the | 9 | | effective date of this amendatory Act of the 94th General | 10 | | Assembly.
| 11 | | (h) The fraud and insurance non-compliance unit shall | 12 | | submit a written report on an annual basis to the Chairman of | 13 | | the Commission, the Workers' Compensation Advisory Board, the | 14 | | General Assembly, the Governor, and the Attorney General by | 15 | | January 1 and July 1 of each year. This report shall include, | 16 | | at the minimum, the following information: | 17 | | (1) The number of allegations of insurance | 18 | | non-compliance and fraud reported to the fraud and | 19 | | insurance non-compliance unit. | 20 | | (2) The source of the reported allegations | 21 | | (individual, employer, or other). | 22 | | (3) The number of allegations investigated by the | 23 | | fraud and insurance non-compliance unit. | 24 | | (4) The number of criminal referrals made in | 25 | | accordance with this Section and the entity to which the | 26 | | referral was made. |
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| 1 | | (5) All proceedings under this Section.
| 2 | | (6) Recommendations regarding opportunities for | 3 | | additional fraud detection. | 4 | | (Source: P.A. 97-18, eff. 6-28-11; 97-1150, eff. 1-25-13.) | 5 | | (820 ILCS 305/29.2) | 6 | | Sec. 29.2. Insurance oversight. | 7 | | (a) The Department of Insurance shall annually submit to | 8 | | the Governor, the Chairman of the Commission, the President of | 9 | | the Senate, the Speaker of the House of Representatives, the | 10 | | Minority Leader of the Senate, and the Minority Leader of the | 11 | | House of Representatives a written report that details the | 12 | | state of the workers' compensation insurance market in | 13 | | Illinois. The report shall be completed by April 1 of each | 14 | | year, beginning in 2012, or later if necessary data or | 15 | | analyses are only available to the Department at a later date. | 16 | | The report shall be posted on the Department of Insurance's | 17 | | Internet website. Information to be included in the report | 18 | | shall be for the preceding calendar year. The report shall | 19 | | include, at a minimum, the following: | 20 | | (1) Gross premiums collected by workers' compensation | 21 | | carriers in Illinois and the national rank of Illinois | 22 | | based on premium volume. | 23 | | (2) The number of insurance companies actively engaged | 24 | | in Illinois in the workers' compensation insurance market, | 25 | | including both holding companies and subsidiaries or |
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| 1 | | affiliates, and the national rank of Illinois based on | 2 | | number of competing insurers. | 3 | | (3) The total number of insured participants in the | 4 | | Illinois workers' compensation assigned risk insurance | 5 | | pool, and the size of the assigned risk pool as a | 6 | | proportion of the total Illinois workers' compensation | 7 | | insurance market. | 8 | | (4) The advisory organization premium rate for | 9 | | workers' compensation insurance in Illinois for the | 10 | | previous year. | 11 | | (5) The advisory organization prescribed assigned risk | 12 | | pool premium rate. | 13 | | (6) The total amount of indemnity payments made by | 14 | | workers' compensation insurers in Illinois. | 15 | | (7) The total amount of medical payments made by | 16 | | workers' compensation insurers in Illinois, and the | 17 | | national rank of Illinois based on average cost of medical | 18 | | claims per injured worker. | 19 | | (8) The gross profitability of workers' compensation | 20 | | insurers in Illinois, and the national rank of Illinois | 21 | | based on profitability of workers' compensation insurers. | 22 | | (9) The loss ratio of workers' compensation insurers | 23 | | in Illinois and the national rank of Illinois based on the | 24 | | loss ratio of workers' compensation insurers. For purposes | 25 | | of this loss ratio calculation, the denominator shall | 26 | | include all premiums and other fees collected by workers' |
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| 1 | | compensation insurers and the numerator shall include the | 2 | | total amount paid by the insurer for care or compensation | 3 | | to injured workers. | 4 | | (10) The growth of total paid indemnity benefits by | 5 | | temporary total disability, scheduled and non-scheduled | 6 | | permanent partial disability, and total disability. | 7 | | (11) The number of injured workers receiving wage loss | 8 | | differential awards and the average wage loss differential | 9 | | award payout. | 10 | | (12) Illinois' rank, relative to other states, for: | 11 | | (i) the maximum and minimum temporary total | 12 | | disability benefit level; | 13 | | (ii) the maximum and minimum scheduled and | 14 | | non-scheduled permanent partial disability benefit | 15 | | level; | 16 | | (iii) the maximum and minimum total disability | 17 | | benefit level; and | 18 | | (iv) the maximum and minimum death benefit level. | 19 | | (13) The aggregate growth of medical benefit payout by | 20 | | non-hospital providers and hospitals. | 21 | | (14) The aggregate growth of medical utilization for | 22 | | the top 10 most common injuries to specific body parts by | 23 | | non-hospital providers and hospitals. | 24 | | (15) The percentage of injured workers filing claims | 25 | | at the Commission that are represented by an attorney. | 26 | | (16) The total amount paid by injured workers for |
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| 1 | | attorney representation. | 2 | | (b) The Director of Insurance shall promulgate rules | 3 | | requiring each insurer licensed to write workers' compensation | 4 | | coverage in the State to record and report the following | 5 | | information on an aggregate basis to the Department of | 6 | | Insurance before June 1 March 1 of each year, relating to | 7 | | claims in the State opened within the prior calendar year: | 8 | | (1) The number of claims opened. | 9 | | (2) The number of reported medical only claims. | 10 | | (3) The number of contested claims. | 11 | | (4) The number of claims for which the employee has | 12 | | attorney representation. | 13 | | (5) The number of claims with lost time and the number | 14 | | of claims for which temporary total disability was paid. | 15 | | (6) The number of claim adjusters employed to adjust | 16 | | workers' compensation claims. | 17 | | (7) The number of claims for which temporary total | 18 | | disability was not paid within 14 days from the first full | 19 | | day off, regardless of reason. | 20 | | (8) The number of medical bills paid 60 days or later | 21 | | from date of service and the average days paid on those | 22 | | paid after 60 days for the previous calendar year. | 23 | | (9) The number of claims in which in-house defense | 24 | | counsel participated, and the total amount spent on | 25 | | in-house legal services. | 26 | | (10) The number of claims in which outside defense |
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| 1 | | counsel participated, and the total amount paid to outside | 2 | | defense counsel. | 3 | | (11) The total amount billed to employers for bill | 4 | | review. | 5 | | (12) The total amount billed to employers for fee | 6 | | schedule savings. | 7 | | (13) The total amount charged to employers for any and | 8 | | all managed care fees. | 9 | | (14) The number of claims involving in-house medical | 10 | | nurse case management, and the total amount spent on | 11 | | in-house medical nurse case management. | 12 | | (15) The number of claims involving outside medical | 13 | | nurse case management, and the total amount paid for | 14 | | outside medical nurse case management. | 15 | | (16) The total amount paid for Independent Medical | 16 | | exams. | 17 | | (17) The total amount spent on in-house Utilization | 18 | | Review for the previous calendar year. | 19 | | (18) The total amount paid for outside Utilization | 20 | | Review for the previous calendar year. | 21 | | The Department shall make the submitted information | 22 | | publicly available on the Department's Internet website or | 23 | | such other media as appropriate in a form useful for | 24 | | consumers.
| 25 | | (Source: P.A. 97-18, eff. 6-28-11.)
| 26 | | Section 99. Effective date. This Act takes effect July 1, |
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| 1 | | 2021.
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