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91_HB1587ham001
LRB9103672WHdvam01
1 AMENDMENT TO HOUSE BILL 1587
2 AMENDMENT NO. . Amend House Bill 1587 by replacing
3 the title with the following:
4 "AN ACT to amend certain Acts in relation to workplace
5 injuries and diseases."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Workers' Compensation Act is amended by
9 changing Section 4 as follows:
10 (820 ILCS 305/4) (from Ch. 48, par. 138.4)
11 Sec. 4. (a) Any employer, including but not limited to
12 general contractors and their subcontractors, who shall come
13 within the provisions of Section 3 of this Act, and any other
14 employer who shall elect to provide and pay the compensation
15 provided for in this Act shall:
16 (1) File with the Commission annually an
17 application for approval as a self-insurer which shall
18 include a current financial statement, and annually,
19 thereafter, an application for renewal of self-insurance,
20 which shall include a current financial statement. Said
21 application and financial statement shall be signed and
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1 sworn to by the president or vice president and secretary
2 or assistant secretary of the employer if it be a
3 corporation, or by all of the partners, if it be a
4 copartnership, or by the owner if it be neither a
5 copartnership nor a corporation. All initial applications
6 and all applications for renewal of self-insurance must
7 be submitted at least 60 days prior to the requested
8 effective date of self-insurance.
9 If the sworn application and financial statement of
10 any such employer does not satisfy the Commission of the
11 financial ability of the employer who has filed it, the
12 Commission shall require such employer to,
13 (2) Furnish security, indemnity or a bond
14 guaranteeing the payment by the employer of the
15 compensation provided for in this Act, provided that any
16 such employer whose application and financial statement
17 shall not have satisfied the commission of his or her
18 financial ability and who shall have secured his
19 liability in part by excess liability insurance shall be
20 required to furnish to the Commission security, indemnity
21 or bond guaranteeing his or her payment up to the
22 effective limits of the excess coverage, or
23 (3) Insure his entire liability to pay such
24 compensation in some insurance carrier authorized,
25 licensed, or permitted to do such insurance business in
26 this State. Every policy of an insurance carrier,
27 insuring the payment of compensation under this Act shall
28 cover all the employees and the entire compensation
29 liability of the insured: Provided, however, that any
30 employer may insure his or her compensation liability
31 with 2 or more insurance carriers or may insure a part
32 and qualify under subsection 1, 2, or 4 for the remainder
33 of his or her liability to pay such compensation, subject
34 to the following two provisions:
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1 Firstly, the entire compensation liability of
2 the employer to employees working at or from one
3 location shall be insured in one such insurance
4 carrier or shall be self-insured, and
5 Secondly, the employer shall submit evidence
6 satisfactorily to the Commission that his or her
7 entire liability for the compensation provided for
8 in this Act will be secured. Any provisions in any
9 policy, or in any endorsement attached thereto,
10 attempting to limit or modify in any way, the
11 liability of the insurance carriers issuing the same
12 except as otherwise provided herein shall be wholly
13 void.
14 Nothing herein contained shall apply to policies of
15 excess liability carriage secured by employers who have
16 been approved by the Commission as self-insurers, or
17 (4) Make some other provision, satisfactory to the
18 Commission, for the securing of the payment of
19 compensation provided for in this Act, and
20 (5) Upon becoming subject to this Act and
21 thereafter as often as the Commission may in writing
22 demand, file with the Commission in form prescribed by it
23 evidence of his or her compliance with the provision of
24 this Section.
25 (a-1) Regardless of its state of domicile or its
26 principal place of business, an employer shall make payments
27 to its insurance carrier or group self-insurance fund, where
28 applicable, based upon the premium rates of the situs where
29 the work or project is located in Illinois if:
30 (A) the employer is engaged primarily in the
31 building and construction industry; and
32 (B) subdivision (a)(3) of this Section applies to
33 the employer or the employer is a member of a group
34 self-insurance plan as defined in subsection (1) of
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1 Section 4a.
2 The Industrial Commission shall impose a penalty upon an
3 employer for violation of this subsection (a-1) if:
4 (i) the employer is given an opportunity at a
5 hearing to present evidence of its compliance with this
6 subsection (a-1); and
7 (ii) after the hearing, the Commission finds that
8 the employer failed to make payments upon the premium
9 rates of the situs where the work or project is located
10 in Illinois.
11 The penalty shall not exceed $1,000 for each day of work
12 for which the employer failed to make payments upon the
13 premium rates of the situs where the work or project is
14 located in Illinois, but the total penalty shall not exceed
15 $50,000 for each project or each contract under which the
16 work was performed.
17 Any penalty under this subsection (a-1) must be imposed
18 not later than one year after the expiration of the
19 applicable limitation period specified in subsection (d) of
20 Section 6 of this Act. Penalties imposed under this
21 subsection (a-1) shall be deposited into the Industrial
22 Commission Operations Fund, a special fund that is created
23 in the State treasury. Subject to appropriation, moneys in
24 the Fund shall be used solely for the operations of the
25 Industrial Commission.
26 (b) The sworn application and financial statement, or
27 security, indemnity or bond, or amount of insurance, or other
28 provisions, filed, furnished, carried, or made by the
29 employer, as the case may be, shall be subject to the
30 approval of the Commission.
31 Deposits under escrow agreements shall be cash,
32 negotiable United States government bonds or negotiable
33 general obligation bonds of the State of Illinois. Such cash
34 or bonds shall be deposited in escrow with any State or
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1 National Bank or Trust Company having trust authority in the
2 State of Illinois.
3 Upon the approval of the sworn application and financial
4 statement, security, indemnity or bond or amount of
5 insurance, filed, furnished or carried, as the case may be,
6 the Commission shall send to the employer written notice of
7 its approval thereof. The certificate of compliance by the
8 employer with the provisions of subparagraphs (2) and (3) of
9 paragraph (a) of this Section shall be delivered by the
10 insurance carrier to the Industrial Commission within five
11 days after the effective date of the policy so certified.
12 The insurance so certified shall cover all compensation
13 liability occurring during the time that the insurance is in
14 effect and no further certificate need be filed in case such
15 insurance is renewed, extended or otherwise continued by such
16 carrier. The insurance so certified shall not be cancelled
17 or in the event that such insurance is not renewed, extended
18 or otherwise continued, such insurance shall not be
19 terminated until at least 10 days after receipt by the
20 Industrial Commission of notice of the cancellation or
21 termination of said insurance; provided, however, that if the
22 employer has secured insurance from another insurance
23 carrier, or has otherwise secured the payment of compensation
24 in accordance with this Section, and such insurance or other
25 security becomes effective prior to the expiration of the 10
26 days, cancellation or termination may, at the option of the
27 insurance carrier indicated in such notice, be effective as
28 of the effective date of such other insurance or security.
29 (c) Whenever the Commission shall find that any
30 corporation, company, association, aggregation of
31 individuals, reciprocal or interinsurers exchange, or other
32 insurer effecting workers' compensation insurance in this
33 State shall be insolvent, financially unsound, or unable to
34 fully meet all payments and liabilities assumed or to be
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1 assumed for compensation insurance in this State, or shall
2 practice a policy of delay or unfairness toward employees in
3 the adjustment, settlement, or payment of benefits due such
4 employees, the Commission may after reasonable notice and
5 hearing order and direct that such corporation, company,
6 association, aggregation of individuals, reciprocal or
7 interinsurers exchange, or insurer, shall from and after a
8 date fixed in such order discontinue the writing of any such
9 workers' compensation insurance in this State. Subject to
10 such modification of the order as the Commission may later
11 make on review of the order, as herein provided, it shall
12 thereupon be unlawful for any such corporation, company,
13 association, aggregation of individuals, reciprocal or
14 interinsurers exchange, or insurer to effect any workers'
15 compensation insurance in this State. A copy of the order
16 shall be served upon the Director of Insurance by registered
17 mail. Whenever the Commission finds that any service or
18 adjustment company used or employed by a self-insured
19 employer or by an insurance carrier to process, adjust,
20 investigate, compromise or otherwise handle claims under this
21 Act, has practiced or is practicing a policy of delay or
22 unfairness toward employees in the adjustment, settlement or
23 payment of benefits due such employees, the Commission may
24 after reasonable notice and hearing order and direct that
25 such service or adjustment company shall from and after a
26 date fixed in such order be prohibited from processing,
27 adjusting, investigating, compromising or otherwise handling
28 claims under this Act.
29 Whenever the Commission finds that any self-insured
30 employer has practiced or is practicing delay or unfairness
31 toward employees in the adjustment, settlement or payment of
32 benefits due such employees, the Commission may, after
33 reasonable notice and hearing, order and direct that after a
34 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
3 in some insurance carrier authorized, licensed and permitted
4 to 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
7 shall be subject to review by the courts, said review to be
8 taken in the same manner and within the same time as provided
9 by Section 19 of this Act for review of awards and decisions
10 of the Commission, upon the party seeking the review filing
11 with the clerk of the court to which said review is taken a
12 bond in an amount to be fixed and approved by the court to
13 which the review is taken, conditioned upon the payment of
14 all compensation awarded against the person taking said
15 review pending a decision thereof and further conditioned
16 upon such other obligations as the court may impose. Upon
17 the review the Circuit Court shall have power to review all
18 questions of fact as well as of law. The penalty hereinafter
19 provided for in this paragraph shall not attach and shall not
20 begin to run until the final determination of the order of
21 the Commission.
22 (d) Upon a finding by the Commission, after reasonable
23 notice and hearing, of the knowing and wilful failure of an
24 employer to comply with any of the provisions of paragraph
25 (a) of this Section or the failure or refusal of an employer,
26 service or adjustment company, or an insurance carrier to
27 comply with any order of the Industrial Commission pursuant
28 to paragraph (c) of this Section disqualifying him or her to
29 operate as a self insurer and requiring him or her to insure
30 his or her liability, the Commission may assess a civil
31 penalty of up to $500 per day for each day of such failure or
32 refusal after the effective date of this amendatory Act of
33 1989. Each day of such failure or refusal shall constitute a
34 separate offense.
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1 Upon the failure or refusal of any employer, service or
2 adjustment company or insurance carrier to comply with the
3 provisions of this Section and with the orders of the
4 Commission under this Section, or the order of the court on
5 review after final adjudication, the Commission may bring a
6 civil action to recover the amount of the penalty in Cook
7 County or in Sangamon County in which litigation the
8 Commission shall be represented by the Attorney General. The
9 Commission shall send notice of its finding of non-compliance
10 and assessment of the civil penalty to the Attorney General.
11 It shall be the duty of the Attorney General within 30 days
12 after receipt of the notice, to institute prosecutions and
13 promptly prosecute all reported violations of this Section.
14 (e) This Act shall not affect or disturb the continuance
15 of any existing insurance, mutual aid, benefit, or relief
16 association or department, whether maintained in whole or in
17 part by the employer or whether maintained by the employees,
18 the payment of benefits of such association or department
19 being guaranteed by the employer or by some person, firm or
20 corporation for him or her: Provided, the employer
21 contributes to such association or department an amount not
22 less than the full compensation herein provided, exclusive of
23 the cost of the maintenance of such association or department
24 and without any expense to the employee. This Act shall not
25 prevent the organization and maintaining under the insurance
26 laws of this State of any benefit or insurance company for
27 the purpose of insuring against the compensation provided for
28 in this Act, the expense of which is maintained by the
29 employer. This Act shall not prevent the organization or
30 maintaining under the insurance laws of this State of any
31 voluntary mutual aid, benefit or relief association among
32 employees for the payment of additional accident or sick
33 benefits.
34 (f) No existing insurance, mutual aid, benefit or relief
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1 association or department shall, by reason of anything herein
2 contained, be authorized to discontinue its operation without
3 first discharging its obligations to any and all persons
4 carrying insurance in the same or entitled to relief or
5 benefits therein.
6 (g) Any contract, oral, written or implied, of
7 employment providing for relief benefit, or insurance or any
8 other device whereby the employee is required to pay any
9 premium or premiums for insurance against the compensation
10 provided for in this Act shall be null and void. Any
11 employer withholding from the wages of any employee any
12 amount for the purpose of paying any such premium shall be
13 guilty of a Class B misdemeanor.
14 In the event the employer does not pay the compensation
15 for which he or she is liable, then an insurance company,
16 association or insurer which may have insured such employer
17 against such liability shall become primarily liable to pay
18 to the employee, his or her personal representative or
19 beneficiary the compensation required by the provisions of
20 this Act to be paid by such employer. The insurance carrier
21 may be made a party to the proceedings in which the employer
22 is a party and an award may be entered jointly against the
23 employer and the insurance carrier.
24 (h) It shall be unlawful for any employer, insurance
25 company or service or adjustment company to interfere with,
26 restrain or coerce an employee in any manner whatsoever in
27 the exercise of the rights or remedies granted to him or her
28 by this Act or to discriminate, attempt to discriminate, or
29 threaten to discriminate against an employee in any way
30 because of his or her exercise of the rights or remedies
31 granted to him or her by this Act.
32 It shall be unlawful for any employer, individually or
33 through any insurance company or service or adjustment
34 company, to discharge or to threaten to discharge, or to
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1 refuse to rehire or recall to active service in a suitable
2 capacity an employee because of the exercise of his or her
3 rights or remedies granted to him or her by this Act.
4 (i) If an employer elects to obtain a life insurance
5 policy on his employees, he may also elect to apply such
6 benefits in satisfaction of all or a portion of the death
7 benefits payable under this Act, in which case, the
8 employer's compensation premium shall be reduced accordingly.
9 (j) Within 45 days of receipt of an initial application
10 or application to renew self-insurance privileges the
11 Self-Insurers Advisory Board shall review and submit for
12 approval by the Chairman of the Commission recommendations of
13 disposition of all initial applications to self-insure and
14 all applications to renew self-insurance privileges filed by
15 private self-insurers pursuant to the provisions of this
16 Section and Section 4a-9 of this Act. Each private
17 self-insurer shall submit with its initial and renewal
18 applications the application fee required by Section 4a-4 of
19 this Act.
20 The Chairman of the Commission shall promptly act upon
21 all initial applications and applications for renewal in full
22 accordance with the recommendations of the Board or, should
23 the Chairman disagree with any recommendation of disposition
24 of the Self-Insurer's Advisory Board, he shall within 30 days
25 of receipt of such recommendation provide to the Board in
26 writing the reasons supporting his decision. The Chairman
27 shall also promptly notify the employer of his decision
28 within 15 days of receipt of the recommendation of the Board.
29 If an employer is denied a renewal of self-insurance
30 privileges pursuant to application it shall retain said
31 privilege for 120 days after receipt of a notice of
32 cancellation of the privilege from the Chairman of the
33 Commission.
34 All orders made by the Chairman under this Section shall
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1 be subject to review by the courts, such review to be taken
2 in the same manner and within the same time as provided by
3 subsection (f) of Section 19 of this Act for review of awards
4 and decisions of the Commission, upon the party seeking the
5 review filing with the clerk of the court to which such
6 review is taken a bond in an amount to be fixed and approved
7 by the court to which the review is taken, conditioned upon
8 the payment of all compensation awarded against the person
9 taking such review pending a decision thereof and further
10 conditioned upon such other obligations as the court may
11 impose. Upon the review the Circuit Court shall have power
12 to review all questions of fact as well as of law.
13 (Source: P.A. 90-109, eff. 1-1-98.)
14 Section 10. The Workers' Occupational Diseases Act is
15 amended by changing Section 4 as follows:
16 (820 ILCS 310/4) (from Ch. 48, par. 172.39)
17 Sec. 4. (a) Any employer, including but not limited to
18 general contractors and their subcontractors, required by the
19 terms of this Act or by election to pay the compensation
20 provided for in this Act shall:
21 (1) File with the Commission an application for
22 approval as a self-insurer which shall include a current
23 financial statement. The application and financial
24 statement shall be signed and sworn to by the president
25 or vice-president and secretary or assistant secretary of
26 the employer if it be a corporation, or by all of the
27 partners if it be a copartnership, or by the owner if it
28 be neither a copartnership nor a corporation.
29 If the sworn application and financial statement of
30 any such employer does not satisfy the Commission of the
31 financial ability of the employer who has filed it, the
32 Commission shall require such employer to:
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1 (2) Furnish security, indemnity or a bond
2 guaranteeing the payment by the employer of the
3 compensation provided for in this Act, provided that any
4 such employer who shall have secured his or her liability
5 in part by excess liability coverage shall be required to
6 furnish to the Commission security, indemnity or bond
7 guaranteeing his or her payment up to the amount of the
8 effective limits of the excess coverage in accordance
9 with the provisions of this paragraph, or
10 (3) Insure his or her entire liability to pay such
11 compensation in some insurance carrier authorized,
12 licensed or permitted to do such insurance business in
13 this State. All policies of such insurance carriers
14 insuring the payment of compensation under this Act shall
15 cover all the employees and all such employer's
16 compensation liability in all cases in which the last day
17 of the last exposure to the occupational disease involved
18 is within the effective period of the policy, anything to
19 the contrary in the policy notwithstanding. Provided,
20 however, that any employer may insure his or her
21 compensation liability under this Act with 2 or more
22 insurance carriers or may insure a part and qualify under
23 Subsection 1, 2, or 4 for the remainder of his liability
24 to pay such compensation, subject to the following two
25 provisions:
26 Firstly, the entire liability of the employer
27 to employees working at or from one location shall
28 be insured in one such insurance carrier or shall be
29 self-insured.
30 Secondly, the employer shall submit evidence
31 satisfactory to the Commission that his or her
32 entire liability for the compensation provided for
33 in this Act will be secured.
34 Any provision in a policy or in any endorsement
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1 attached thereto attempting to limit or modify in any way
2 the liability of the insurance carrier issuing the same,
3 except as otherwise provided herein, shall be wholly
4 void.
5 The insurance or security in force to cover
6 compensation liability under this Act shall be separate
7 and distinct from the insurance or security under the
8 "Workers' Compensation Act" and any insurance contract
9 covering liability under either Act need not cover any
10 liability under the other. Nothing herein contained
11 shall apply to policies of excess liability carriage
12 secured by employers who have been approved by the
13 Commission as self-insurers, or
14 (4) Make some other provision, satisfactory to the
15 Commission, for the securing of the payment of
16 compensation provided for in this Act, and
17 (5) Upon becoming subject to this Act and
18 thereafter as often as the Commission may in writing
19 demand, file with the Commission in form prescribed by it
20 evidence of his or her compliance with the provision of
21 this Section.
22 (a-1) Regardless of its state of domicile or its
23 principal place of business, an employer shall make payments
24 to its insurance carrier or group self-insurance fund, where
25 applicable, based upon the premium rates of the situs where
26 the work or project is located in Illinois if:
27 (A) the employer is engaged primarily in the
28 building and construction industry; and
29 (B) subdivision (a)(3) of this Section applies to
30 the employer or the employer is a member of a group
31 self-insurance plan as defined in subsection (1) of
32 Section 4a.
33 The Industrial Commission shall impose a penalty upon an
34 employer for violation of this subsection (a-1) if:
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1 (i) the employer is given an opportunity at a
2 hearing to present evidence of its compliance with this
3 subsection (a-1); and
4 (ii) after the hearing, the Commission finds that
5 the employer failed to make payments upon the premium
6 rates of the situs where the work or project is located
7 in Illinois.
8 The penalty shall not exceed $1,000 for each day of work
9 for which the employer failed to make payments upon the
10 premium rates of the situs where the work or project is
11 located in Illinois, but the total penalty shall not exceed
12 $50,000 for each project or each contract under which the
13 work was performed.
14 Any penalty under this subsection (a-1) must be imposed
15 not later than one year after the expiration of the
16 applicable limitation period specified in subsection (c) of
17 Section 6 of this Act. Penalties imposed under this
18 subsection (a-1) shall be deposited into the Industrial
19 Commission Operations Fund created under Section 4 of the
20 Workers' Compensation Act.
21 (b) The sworn application and financial statement, or
22 security, indemnity or bond, or amount of insurance, or other
23 provisions, filed, furnished, carried, or made by the
24 employer, as the case may be, shall be subject to the
25 approval of the Commission.
26 Deposits under escrow agreements shall be cash,
27 negotiable United States government bonds or negotiable
28 general obligation bonds of the State of Illinois. Such cash
29 or bonds shall be deposited in escrow with any State or
30 National Bank or Trust Company having trust authority in the
31 State of Illinois.
32 Upon the approval of the sworn application and financial
33 statement, security, indemnity or bond or amount of
34 insurance, filed, furnished, or carried, as the case may be,
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1 the Commission shall send to the employer written notice of
2 its approval thereof. Said certificate of compliance by the
3 employer with the provisions of subparagraphs (2) and (3) of
4 paragraph (a) of this Section shall be delivered by the
5 insurance carrier to the Industrial Commission within 5 days
6 after the effective date of the policy so certified. The
7 insurance so certified shall cover all compensation liability
8 occurring during the time that the insurance is in effect and
9 no further certificate need be filed in case such insurance
10 is renewed, extended or otherwise continued by such carrier.
11 The insurance so certified shall not be cancelled or in the
12 event that such insurance is not renewed, extended or
13 otherwise continued, such insurance shall not be terminated
14 until at least 10 days after receipt by the Industrial
15 Commission of notice of the cancellation or termination of
16 said insurance; provided, however, that if the employer has
17 secured insurance from another insurance carrier, or has
18 otherwise secured the payment of compensation in accordance
19 with this Section, and such insurance or other security
20 becomes effective prior to the expiration of said 10 days,
21 cancellation or termination may, at the option of the
22 insurance carrier indicated in such notice, be effective as
23 of the effective date of such other insurance or security.
24 (c) Whenever the Commission shall find that any
25 corporation, company, association, aggregation of
26 individuals, reciprocal or interinsurers exchange, or other
27 insurer effecting workers' occupational disease compensation
28 insurance in this State shall be insolvent, financially
29 unsound, or unable to fully meet all payments and liabilities
30 assumed or to be assumed for compensation insurance in this
31 State, or shall practice a policy of delay or unfairness
32 toward employees in the adjustment, settlement, or payment of
33 benefits due such employees, the Commission may after
34 reasonable notice and hearing order and direct that such
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1 corporation, company, association, aggregation of
2 individuals, reciprocal or interinsurers exchange, or
3 insurer, shall from and after a date fixed in such order
4 discontinue the writing of any such workers' occupational
5 disease compensation insurance in this State. It shall
6 thereupon be unlawful for any such corporation, company,
7 association, aggregation of individuals, reciprocal or
8 interinsurers exchange, or insurer to effect any workers'
9 occupational disease compensation insurance in this State. A
10 copy of the order shall be served upon the Director of
11 Insurance by registered mail. Whenever the Commission finds
12 that any service or adjustment company used or employed by a
13 self-insured employer or by an insurance carrier to process,
14 adjust, investigate, compromise or otherwise handle claims
15 under this Act, has practiced or is practicing a policy of
16 delay or unfairness toward employees in the adjustment,
17 settlement or payment of benefits due such employees, the
18 Commission may after reasonable notice and hearing order and
19 direct that such service or adjustment company shall from and
20 after a date fixed in such order be prohibited from
21 processing, adjusting, investigating, compromising or
22 otherwise handling claims under this Act.
23 Whenever the Commission finds that any self-insured
24 employer has practiced or is practicing delay or unfairness
25 toward employees in the adjustment, settlement or payment of
26 benefits due such employees, the Commission may after
27 reasonable notice and hearing order and direct that after a
28 date fixed in the order such self-insured employer shall be
29 disqualified to operate as a self-insurer and shall be
30 required to insure his entire liability to pay compensation
31 in some insurance carrier authorized, licensed and permitted
32 to do such insurance business in this State as provided in
33 subparagraph (3) of paragraph (a) of this Section.
34 All orders made by the Commission under this Section
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1 shall be subject to review by the courts, the review to be
2 taken in the same manner and within the same time as provided
3 by Section 19 of this Act for review of awards and decisions
4 of the Commission, upon the party seeking the review filing
5 with the clerk of the court to which said review is taken a
6 bond in an amount to be fixed and approved by the court to
7 which said review is taken, conditioned upon the payment of
8 all compensation awarded against the person taking the review
9 pending a decision thereof and further conditioned upon such
10 other obligations as the court may impose. Upon the review
11 the Circuit Court shall have power to review all questions of
12 fact as well as of law. The penalty hereinafter provided for
13 in this paragraph shall not attach and shall not begin to run
14 until the final determination of the order of the Commission.
15 (d) Upon a finding by the Commission, after reasonable
16 notice and hearing, of the knowing and wilful failure of an
17 employer to comply with any of the provisions of paragraph
18 (a) of this Section or the failure or refusal of an employer,
19 service or adjustment company, or insurance carrier to comply
20 with any order of the Industrial Commission pursuant to
21 paragraph (c) of this Section the Commission may assess a
22 civil penalty of up to $500 per day for each day of such
23 failure or refusal after the effective date of this
24 amendatory Act of 1989. Each day of such failure or refusal
25 shall constitute a separate offense.
26 Upon the failure or refusal of any employer, service or
27 adjustment company or insurance carrier to comply with the
28 provisions of this Section and orders of the Commission under
29 this Section, or the order of the court on review after final
30 adjudication, the Commission may bring a civil action to
31 recover the amount of the penalty in Cook County or in
32 Sangamon County in which litigation the Commission shall be
33 represented by the Attorney General. The Commission shall
34 send notice of its finding of non-compliance and assessment
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1 of the civil penalty to the Attorney General. It shall be
2 the duty of the Attorney General within 30 days after receipt
3 of the notice, to institute prosecutions and promptly
4 prosecute all reported violations of this Section.
5 (e) This Act shall not affect or disturb the continuance
6 of any existing insurance, mutual aid, benefit, or relief
7 association or department, whether maintained in whole or in
8 part by the employer or whether maintained by the employees,
9 the payment of benefits of such association or department
10 being guaranteed by the employer or by some person, firm or
11 corporation for him or her: Provided, the employer
12 contributes to such association or department an amount not
13 less than the full compensation herein provided, exclusive of
14 the cost of the maintenance of such association or department
15 and without any expense to the employee. This Act shall not
16 prevent the organization and maintaining under the insurance
17 laws of this State of any benefit or insurance company for
18 the purpose of insuring against the compensation provided for
19 in this Act, the expense of which is maintained by the
20 employer. This Act shall not prevent the organization or
21 maintaining under the insurance laws of this State of any
22 voluntary mutual aid, benefit or relief association among
23 employees for the payment of additional accident or sick
24 benefits.
25 (f) No existing insurance, mutual aid, benefit or relief
26 association or department shall, by reason of anything herein
27 contained, be authorized to discontinue its operation without
28 first discharging its obligations to any and all persons
29 carrying insurance in the same or entitled to relief or
30 benefits therein.
31 (g) Any contract, oral, written or implied, of
32 employment providing for relief benefit, or insurance or any
33 other device whereby the employee is required to pay any
34 premium or premiums for insurance against the compensation
-19- LRB9103672WHdvam01
1 provided for in this Act shall be null and void. Any
2 employer withholding from the wages of any employee any
3 amount for the purpose of paying any such premium shall be
4 guilty of a Class B misdemeanor.
5 In the event the employer does not pay the compensation
6 for which he or she is liable, then an insurance company,
7 association or insurer which may have insured such employer
8 against such liability shall become primarily liable to pay
9 to the employee, his personal representative or beneficiary
10 the compensation required by the provisions of this Act to be
11 paid by such employer. The insurance carrier may be made a
12 party to the proceedings in which the employer is a party and
13 an award may be entered jointly against the employer and the
14 insurance carrier.
15 (h) It shall be unlawful for any employer, insurance
16 company or service or adjustment company to interfere with,
17 restrain or coerce an employee in any manner whatsoever in
18 the exercise of the rights or remedies granted to him or her
19 by this Act or to discriminate, attempt to discriminate, or
20 threaten to discriminate against an employee in any way
21 because of his exercise of the rights or remedies granted to
22 him by this Act.
23 It shall be unlawful for any employer, individually or
24 through any insurance company or service or adjustment
25 company, to discharge or to threaten to discharge, or to
26 refuse to rehire or recall to active service in a suitable
27 capacity an employee because of the exercise of his or her
28 rights or remedies granted to him or her by this Act.
29 (i) If an employer elects to obtain a life insurance
30 policy on his employees, he may also elect to apply such
31 benefits in satisfaction of all or a portion of the death
32 benefits payable under this Act, in which case, the
33 employer's premium for coverage for benefits under this Act
34 shall be reduced accordingly.
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1 (Source: P.A. 90-109, eff. 1-1-98.)".