Bill Text: IL SB1873 | 2013-2014 | 98th General Assembly | Amended
Bill Title: Amends the Illinois Insurance Code. Makes changes concerning the provisions of the Code to which group workers' compensation pools are subject. Deletes certain provisions concerning the Group Workers' Compensation Pool Insolvency Fund. Provides that all qualified group workers' compensation pools shall be a member company, as defined in the Code. Provides that beginning in 2013, the maximum amount all qualified group workers' compensation pools may be assessed as a member company shall be 0.5% of that member company's net direct written premium on the kinds of insurance in the account for the calendar year preceding the assessment; thereafter, until 2016, the maximum amount all qualified group workers' compensation pools may be assessed as a member company shall annually increase by 0.5% of that member company's net direct written premium on the kinds of insurance in the account for the calendar year preceding the assessment until the maximum assessment amount is equal to 2% of that member company's net direct written premium. Provides that after 2016, all qualified group workers' compensation pools shall be assessed at the same percentage as any other member company. Provides that on the effective date of the amendatory Act, all moneys in the Group Workers' Compensation Pool Insolvency Fund shall be transferred into the Illinois Insurance Guaranty Fund. Provides that all liabilities whenever occurred of the Group Workers' Compensation Pool Insolvency Fund are to be assumed by the Illinois Insurance Guaranty Fund. Provides that no group workers' compensation pool shall be issued a certificate of authority after the effective date of the amendatory Act. Repeals provisions concerning the standards for issuing and maintaining pool certificates of authority and group workers' compensation pools assessments. Makes other changes. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2015-01-13 - Session Sine Die [SB1873 Detail]
Download: Illinois-2013-SB1873-Amended.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 1873
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 1873 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Illinois Insurance Code is amended by | ||||||
5 | changing Sections 107a.04, 107a.05, and 534.4 and by adding | ||||||
6 | Sections 107a.16 and 107a.17 as follows:
| ||||||
7 | (215 ILCS 5/107a.04)
| ||||||
8 | Sec. 107a.04. Organization under the Illinois Insurance | ||||||
9 | Code.
| ||||||
10 | (a) After December 31, 2015, all 2000, group workers' | ||||||
11 | compensation pools shall be subject to Article III of this Code | ||||||
12 | and for the
purpose of
this Article, and this Article only, be | ||||||
13 | considered as though they were
assessable domestic mutual
| ||||||
14 | insurance companies . and subject to the following:
| ||||||
15 | (1) Article XII 1/2, Article XIII, Article XIII 1/2, | ||||||
16 | Article XXIV;
and
|
| |||||||
| |||||||
1 | (2) Sections 126.2, 126.4, 126.7, 132, 132.1 through | ||||||
2 | 132.7, 133, 134, 137,
139,
140,
141.1, 141.2,
142, 143, | ||||||
3 | 143c, 147, 148, 149, 154.5, 154.6, 154.7, 154.8, 155.01, | ||||||
4 | 155.04,
173.1, 173.2, 173.3,
173.4, 173.5, 174, 174.1, 175, | ||||||
5 | 176, 178, 179b, 378, 379.1, 408, 408.3, 449,
456, 457, and | ||||||
6 | 458,
subsections A, B, C, and E of Section 126.5, | ||||||
7 | subsection A of Section 126.6, and
subsections (1) and (7) | ||||||
8 | of
Section 412 of this Code.
| ||||||
9 | (b) (Blank). If there is a conflict between any Section of | ||||||
10 | this Article and any
other Section of this
Code, then the | ||||||
11 | provisions of this Article shall apply.
| ||||||
12 | (c) (Blank). No other provision of this Code shall be | ||||||
13 | applicable to any qualified
workers'
compensation group | ||||||
14 | workers' compensation pool except as provided in this
Article.
| ||||||
15 | (d) A certificate of authority that is in effect on the | ||||||
16 | effective date of
this amendatory Act of the 91st General | ||||||
17 | Assembly and that was issued pursuant
to Section 4a of the | ||||||
18 | Workers' Compensation Act or Section 4a of the Workers'
| ||||||
19 | Occupational Diseases Act to a group self-insurer
shall be | ||||||
20 | converted to a certificate issued pursuant to Section 51 of | ||||||
21 | this Code, provided that the group self-insurer or remain in | ||||||
22 | effect under this Article. Such group self-insurer
shall then | ||||||
23 | be deemed to be a qualified group workers' compensation pool | ||||||
24 | has met the requirements of Article III of this Code. If any | ||||||
25 | group self-insurer or the qualified group workers' | ||||||
26 | compensation pool has not met the requirements of Article III |
| |||||||
| |||||||
1 | of this Code, then the Director may deem the group self-insurer | ||||||
2 | or the qualified group workers' compensation pool to be in a | ||||||
3 | hazardous financial condition and the Director may take one or | ||||||
4 | more of the actions authorized by law that are applicable to a | ||||||
5 | company, as defined by Section 2 of this Code, that is in a | ||||||
6 | hazardous financial condition, including, but not limited to, | ||||||
7 | Article XIII of this Code and
shall be
subject to this Article .
| ||||||
8 | (Source: P.A. 91-757, eff. 1-1-01.)
| ||||||
9 | (215 ILCS 5/107a.05)
| ||||||
10 | Sec. 107a.05. Definitions and interchangeable terms.
| ||||||
11 | (a) Unless otherwise provided, the following definitions | ||||||
12 | shall apply:
| ||||||
13 | "Authorized insurer" means an insurer licensed in this | ||||||
14 | State to
transact business as described
in Clauses (c) and (d) | ||||||
15 | of Class 2 of Section 4 of this Code.
| ||||||
16 | "Calendar Quarter" means the 3-month periods ending March | ||||||
17 | 31, June 30,
September 30,
and December 31.
| ||||||
18 | "Director" means the Director of Insurance.
| ||||||
19 | "Engaged actively in the business" means a bona fide | ||||||
20 | business concern having
conducted
commerce, trade, or industry | ||||||
21 | in this State for a specified period of time. Any
and all | ||||||
22 | records relating
to this requirement shall be open to | ||||||
23 | inspection by the Director or his designee
during normal
| ||||||
24 | business hours.
| ||||||
25 | "Gross annual payroll" means payroll for the preceding |
| |||||||
| |||||||
1 | fiscal year.
| ||||||
2 | "Independent actuarial opinion" means an opinion expressed | ||||||
3 | by a member of the
American
Academy of Actuaries or Casualty | ||||||
4 | Actuarial Society.
| ||||||
5 | "Independent CPA" means an independent certified public | ||||||
6 | accountant or
independent
certified public accounting firm in | ||||||
7 | good standing and licensed to practice by
the Department of
| ||||||
8 | Professional
Regulation.
| ||||||
9 | "Net direct written premium" means direct gross premium or | ||||||
10 | contribution, without regard to how it is labeled, written in | ||||||
11 | this State on pooling agreements to which Article XXXIV of this | ||||||
12 | Code applies, less return premiums thereon and dividends paid | ||||||
13 | or credited to members of a group workers' compensation pool on | ||||||
14 | such direct business. | ||||||
15 | "Pool" means a qualified group workers' compensation pool | ||||||
16 | as authorized by
this Article.
| ||||||
17 | "Qualified group workers' compensation pool" means a group | ||||||
18 | workers'
compensation pool
that has received a certificate of | ||||||
19 | authority pursuant to this Article.
| ||||||
20 | (b) For purposes of incorporating the provisions of this | ||||||
21 | Code designated in
paragraphs (1)
and (2) of subsection (a) of | ||||||
22 | Section 107a.04 into this Article, the following
terms shall be
| ||||||
23 | interchangeable:
| ||||||
24 | "Contribution" shall be considered premium.
| ||||||
25 | "Pooling agreement" shall be considered a policy of | ||||||
26 | insurance.
|
| |||||||
| |||||||
1 | "Trustees of a group workers' compensation pool" shall be | ||||||
2 | considered as
though they were
directors of a domestic mutual | ||||||
3 | insurance company.
| ||||||
4 | (Source: P.A. 91-757, eff. 1-1-01.)
| ||||||
5 | (215 ILCS 5/107a.16 new) | ||||||
6 | Sec. 107a.16. New group workers' compensation pool | ||||||
7 | prohibited. No group workers' compensation pool shall be issued | ||||||
8 | a certificate of authority by the Director after the effective | ||||||
9 | date of this amendatory Act of the 98th General Assembly.
| ||||||
10 | (215 ILCS 5/107a.17 new) | ||||||
11 | Sec. 107a.17. Group Workers' Compensation Pool Insolvency | ||||||
12 | Fund. On the effective date of this amendatory Act of the 98th | ||||||
13 | General Assembly, all moneys in the Group Workers' Compensation | ||||||
14 | Pool Insolvency Fund shall be transferred into the Illinois | ||||||
15 | Insurance Guaranty Fund. All liabilities whenever occurred | ||||||
16 | prior to December 31, 2015 of the Group Workers' Compensation | ||||||
17 | Pool Insolvency Fund are to be assumed by the Self-Insurers | ||||||
18 | Security Fund. All qualified group workers' compensation pools | ||||||
19 | shall pay the assessments contained in Section 4a-7 of the | ||||||
20 | Workers' Compensation Act.
| ||||||
21 | Section 10. The Workers' Compensation Act is amended by | ||||||
22 | changing Section 4a-2 as follows:
|
| |||||||
| |||||||
1 | (820 ILCS 305/4a-2) (from Ch. 48, par. 138.4a-2)
| ||||||
2 | Sec. 4a-2. As used in Sections 4a-1 through 4a-9:
| ||||||
3 | (a) "Board" means the Self-Insurers Advisory Board created | ||||||
4 | by Section 4a-1.
| ||||||
5 | (b) "Chairman" means the Chairman of the Illinois Workers' | ||||||
6 | Compensation Commission.
| ||||||
7 | (c) "Private self-insurer" means a private employer that | ||||||
8 | has been
authorized to self-insure its payment of workers' | ||||||
9 | compensation benefits
pursuant to subsection (a) of Section 4 | ||||||
10 | of this Act or to self-insure its
payment of occupational | ||||||
11 | disease benefits pursuant to subsection (a) of
Section 4 of the | ||||||
12 | Workers' Occupational Diseases Act , including group | ||||||
13 | self-insured employers and qualified group workers' | ||||||
14 | compensation pools under Article V 3/4 of the Illinois | ||||||
15 | Insurance Code, but does not include
group self-insured | ||||||
16 | employers under Section 4a of this Act or Section 4a of
the | ||||||
17 | Workers' Occupational Diseases Act or the State of Illinois, | ||||||
18 | any
political subdivision of the State, unit of local | ||||||
19 | government or school
district, or any other public authorities | ||||||
20 | or quasi-governmental bodies
including any subunits of the | ||||||
21 | foregoing entities.
| ||||||
22 | (d) "Insolvent self-insurer" means a private self-insurer | ||||||
23 | financially
unable to pay compensation due under this Act, | ||||||
24 | which (i) has filed either prior
to or after the effective date | ||||||
25 | of this Section or (ii) is the subject party
in any proceeding | ||||||
26 | under the Federal Bankruptcy Reform Act of 1978, or is
the |
| |||||||
| |||||||
1 | subject party in any proceeding in which a receiver, custodian,
| ||||||
2 | liquidator, rehabilitator, sequestrator, trustee or similar | ||||||
3 | officer has
been appointed by any Court to act in lieu of or on | ||||||
4 | behalf of that self-insurer.
| ||||||
5 | (e) "Fund" means the Self-Insurers Security Fund | ||||||
6 | established by Section 4a-5.
| ||||||
7 | (f) "Trustee" means a member of the Self-Insurers Advisory | ||||||
8 | Board.
| ||||||
9 | (g) "Self-Insurers Administration Fund" means the Fund | ||||||
10 | established by Section 4a-6.1.
| ||||||
11 | (h) "Application fee" means the application fee provided | ||||||
12 | for in Section 4a-4.
| ||||||
13 | (Source: P.A. 93-721, eff. 1-1-05.)
| ||||||
14 | (215 ILCS 5/107a.07 rep.)
| ||||||
15 | (215 ILCS 5/107a.13 rep.) | ||||||
16 | Section 15. The Illinois Insurance Code is amended by | ||||||
17 | repealing Sections 107a.07 and 107a.13.
| ||||||
18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.".
|