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215 ILCS 5/416
(215 ILCS 5/416)
Illinois Workers' Compensation
Commission Operations Fund Surcharge.
(a) As of July 30, 2004 (the effective date of Public Act 93-840), every company licensed or
authorized by the Illinois Department of Insurance and insuring employers'
liabilities arising under the Workers' Compensation Act or the Workers'
Occupational Diseases Act shall remit to the Director a surcharge based upon
the annual direct written premium, as reported under Section 136 of this Act,
of the company in the manner provided in this
be deposited into the Illinois Workers' Compensation
Commission Operations Fund as
the Workers' Compensation Act. If a company
was formed by a merger, consolidation, reorganization, or reincorporation, the
written premiums of all companies party to the merger, consolidation,
reincorporation shall, for purposes of determining the amount of the fee
imposed by this
Section, be regarded as those of the surviving or new company.
(b)(1) Except as provided in subsection (b)(2) of this Section, beginning on
July 30, 2004 (the effective date of Public Act 93-840) and on July 1 of each year thereafter,
charge an annual Illinois Workers' Compensation Commission Operations Fund Surcharge from every
company subject to subsection (a) of this Section equal to 1.01% of its direct
premium for insuring employers' liabilities arising under the Workers'
Compensation Act or Workers' Occupational Diseases Act as reported in each
statement filed for the previous year as required by Section 136. The
Illinois Workers' Compensation Commission Operations Fund Surcharge shall be collected by companies
subject to subsection (a) of this Section as a separately stated surcharge on
insured employers at the rate of 1.01% of direct written premium. The
Illinois Workers' Compensation Commission Operations Fund Surcharge shall not be collected by companies
subject to subsection (a) of this Section from any employer that self-insures its liabilities arising under the Workers' Compensation Act or Workers' Occupational Diseases Act, provided that the employer has paid the Illinois Workers' Compensation Commission Operations Fund Fee pursuant to Section 4d of the Workers' Compensation Act. All sums
the Department of Insurance under the provisions of this Section shall be paid
after the receipt of the same, accompanied by a detailed statement thereof,
Illinois Workers' Compensation Commission Operations Fund in the State treasury.
(b)(2) The surcharge due pursuant to Public Act 93-840 shall be collected instead of the surcharge due on July 1, 2004 under Public Act 93-32. Payment of the surcharge due under Public Act 93-840 shall discharge the employer's obligations due on July 1, 2004.
(c) In addition to the authority specifically granted under Article XXV of
Code, the Director shall have such authority to adopt rules or establish forms
as may be
reasonably necessary for purposes of enforcing this Section. The Director shall
authority to defer, waive, or abate the surcharge or any penalties imposed by
Section if in
the Director's opinion the company's solvency and ability to meet its insured
would be immediately threatened by payment of the surcharge due.
(d) When a company fails to pay the full amount of any annual
Illinois Workers' Compensation
Commission Operations Fund Surcharge of $100 or more due under this Section,
added to the amount due as a penalty an amount equal
to 10% of
the deficiency for each month or part of a month that the deficiency remains
(e) The Department of Insurance may enforce the collection of any delinquent
payment, penalty, or portion thereof by legal action or in any other manner by
collection of debts due the State of Illinois may be enforced under the laws of
(f) Whenever it appears to the satisfaction of the Director that a company
pursuant to this Act an Illinois Workers' Compensation Commission Operations Fund Surcharge in
in excess of the amount legally collectable from the company, the Director
shall issue a
credit memorandum for an amount equal to the amount of such overpayment. A
memorandum may be applied for the 2-year period from the date of issuance,
payment of any amount due during that period under the surcharge imposed by
subject to reasonable rule of the Department of Insurance including requirement
notification, may be assigned to any other company subject to regulation under
Any application of credit memoranda after the period provided for in this
Section is void.
(g) Annually, the Governor may direct a transfer of up to 2% of all moneys
collected under this Section to the Insurance Financial Regulation Fund.
(Source: P.A. 102-775, eff. 5-13-22.)