(215 ILCS 5/107a.14)
Sec. 107a.14.
Group workers' compensation pools assessment provisions.
(a) When the Director determines by means of audit, annual certified
statement, actuarial
opinion, or otherwise that the assets possessed by a pool are less than the
reserves required together
with any other unpaid liabilities, he or she shall order the pool trustees
to assess the individual
pool participants in an amount not less than necessary to correct the
deficiency. This Section is not
intended to restrict or preclude the trustees from time to time levying
assessments or increasing
premium deposits in accordance with the pooling agreement.
(b) When the Director determines that the compensation and medical services
provided
pursuant to this Article may be unpaid by reason of the default of an insolvent
qualified group workers'
compensation pool and the penal sum of the fidelity bond and the securities
provided by the qualified group
workers' compensation pool are about to become exhausted, the Director shall
declare the qualified group
workers' compensation pool to be in default and first levy upon and collect
from the individual
employer members of the qualified group workers' compensation pool in default
an
assessment to assure
prompt payment of compensation and medical services. No assessment of any
individual employer
member of the qualified group workers' compensation pool made pursuant to this
subsection
shall exceed
25% of the average annual contribution paid by that employer over the previous
3-year period;
however, if the Group Workers' Compensation Pool Insolvency Fund is then for
any reason
financially unable to assure prompt payment of compensation and medical
services, the employer
member may be assessed without limitation. If and only if (i) the Group
Workers' Compensation
Pool Insolvency Fund has a positive balance of less than $1,000,000, (ii) the
Director has declared
a qualified group workers' compensation pool to be in default, and (iii) the
Group Workers' Compensation
Pool Insolvency Fund is financially unable to pay all employees whose
compensation and medical
services have been approved, the Director shall levy upon and collect from all
qualified group workers'
compensation pools an assessment to provide the balance necessary to assure
prompt payment of
approved compensation and medical services. If an insurance carrier
becomes liable for
workers' compensation and occupational diseases payments under the terms of the
policy covering
the qualified group workers' compensation pool, the carrier shall make
appropriate payments and
payments from the Fund shall cease. Payments from the Fund shall resume only
when the
insurance carrier's liability is exhausted.
(Source: P.A. 91-757, eff. 1-1-01.)
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