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| Public Act 099-0726 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Employee Leasing Company Act is amended by | ||||
changing Sections 25 and 30 as follows:
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(215 ILCS 113/25)
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Sec. 25. Record keeping and reporting requirement.
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(a) A lessor shall maintain accounting and employment | ||||
records relating to
all employee leasing arrangements for a | ||||
minimum of 4 calendar years. A lessor
shall maintain the | ||||
address of each office it maintains in this State, at its
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principal place of business.
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(b) A lessor shall maintain sufficient information in a | ||||
manner consistent
with a licensed rating organization's data | ||||
submission requirements to permit
the rating organization | ||||
licensed under Section 459 of the Illinois Insurance
Code to | ||||
calculate an experience modification factor for the lessee.
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(c) Upon written request of a lessee with an annual payroll | ||||
attributed to it
in excess of $200,000, the lessor shall | ||||
provide the lessee's experience
modification factor to the | ||||
lessee within 30 days of the request.
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(d) Upon request of a lessee with an annual payroll | ||||
attributed to it of less
than $200,000, the lessor shall | ||||
provide the loss information required to be
maintained
by this | ||
Section to the lessee within 30 days of the request.
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(e) Nothing in this Section shall preclude a licensed | ||
rating organization
from calculating the experience | ||
modification factor for each lessee nor an
insurer from | ||
maintaining and furnishing on behalf of the lessor, such
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information as required by this Section.
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(f) In the event that a lessee's experience modification | ||
factor
exceeds the
lessor's experience modification factor by | ||
50% at the inception of the employee
leasing arrangement, the | ||
lessee's experience
modification factor shall be utilized to | ||
calculate the premium or costs charged
to the lessee for | ||
workers' compensation coverage for a period of 2 years.
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Thereafter, the premium charged by the insurer for
inclusion of | ||
a
lessee under a lessor's policy may be calculated on the basis | ||
of the lessor's
experience modification factor.
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(g) A lessor that does not provide workers' compensation | ||
insurance coverage for leased employees of a lessee under an | ||
employee leasing arrangement shall not be subject to compliance | ||
with subsections (b) through (f) of this Section. | ||
(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)
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(215 ILCS 113/30)
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Sec. 30. Responsibility for policy issuance and | ||
continuance.
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(a) Either a lessor or lessee may provide workers' | ||
compensation insurance coverage for leased employees under an | ||
employee leasing arrangement. When a workers' compensation | ||
policy written to cover leased
employees is issued to the | ||
lessor as the named
insured, the lessee shall be identified | ||
thereon by the
attachment of
an appropriate endorsement | ||
indicating that the policy provides coverage for
leased
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employees. The endorsement shall, at a
minimum, provide for the | ||
following:
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(1) Coverage under the endorsement shall be limited to | ||
the
named insured's
employees leased to the lessees.
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(2) The experience of the employees leased to the | ||
particular
lessee shall be separately maintained by the | ||
lessor as provided in Section
25.
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(b) (Blank).
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(c) The lessor shall notify the insurer or a licensed | ||
rating organization 30
days prior to the effective date of | ||
termination or immediately upon
notification of cancellation | ||
by the lessor of an employee leasing arrangement
with the | ||
lessee in order to allow sufficient time to calculate an | ||
experience
modification factor for
the lessee.
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(d) The insurer shall provide proof of workers' | ||
compensation
insurance to
the lessor and to each applicable | ||
lessee within 30 days of the coverage
being effected or | ||
changed.
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(e) Calculation of a lessor's or lessee's premium shall be | ||
done in
accordance with the insurer's rating manual filed with | ||
the
Department. | ||
(f) When the lessee provides workers' compensation | ||
coverage for leased employees under an employee leasing | ||
arrangement, the lessor shall notify the Department in a manner | ||
specified by the Department to ensure proper and timely | ||
notification of coverage to the Department.
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(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)
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