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91_SB1182
LRB9106164WHdv
1 AN ACT to amend the Workers' Compensation Act and the
2 Workers' Occupational Diseases Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Workers' Compensation Act is amended by
6 changing Section 4 as follows:
7 (820 ILCS 305/4) (from Ch. 48, par. 138.4)
8 Sec. 4. (a) Any employer who shall come within the
9 provisions of Section 3 of this Act, and any other employer
10 who elects shall elect to provide and pay the compensation
11 provided for in this Act shall:
12 (1) File with the Commission annually an
13 application for approval as a self-insurer which shall
14 include a current financial statement, and annually,
15 thereafter, an application for renewal of self-insurance,
16 which shall include a current financial statement. Said
17 application and financial statement shall be signed and
18 sworn to by the president or vice president and secretary
19 or assistant secretary of the employer if it be a
20 corporation, or by all of the partners, if it be a
21 copartnership, or by the owner if it be neither a
22 copartnership nor a corporation. All initial applications
23 and all applications for renewal of self-insurance must
24 be submitted at least 60 days prior to the requested
25 effective date of self-insurance.
26 If the sworn application and financial statement of
27 any such employer does not satisfy the Commission of the
28 financial ability of the employer who has filed it, the
29 Commission shall require such employer to,
30 (2) Furnish security, indemnity or a bond
31 guaranteeing the payment by the employer of the
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1 compensation provided for in this Act, provided that any
2 such employer whose application and financial statement
3 shall not have satisfied the commission of his or her
4 financial ability and who shall have secured his
5 liability in part by excess liability insurance shall be
6 required to furnish to the Commission security, indemnity
7 or bond guaranteeing his or her payment up to the
8 effective limits of the excess coverage, or
9 (3) Insure his entire liability to pay such
10 compensation in some insurance carrier authorized,
11 licensed, or permitted to do such insurance business in
12 this State. Every policy of an insurance carrier,
13 insuring the payment of compensation under this Act shall
14 cover all the employees and the entire compensation
15 liability of the insured: Provided, however, that any
16 employer may insure his or her compensation liability
17 with 2 or more insurance carriers or may insure a part
18 and qualify under subsection 1, 2, or 4 for the remainder
19 of his or her liability to pay such compensation, subject
20 to the following two provisions:
21 Firstly, the entire compensation liability of
22 the employer to employees working at or from one
23 location shall be insured in one such insurance
24 carrier or shall be self-insured, and
25 Secondly, the employer shall submit evidence
26 satisfactorily to the Commission that his or her
27 entire liability for the compensation provided for
28 in this Act will be secured. Any provisions in any
29 policy, or in any endorsement attached thereto,
30 attempting to limit or modify in any way, the
31 liability of the insurance carriers issuing the same
32 except as otherwise provided herein shall be wholly
33 void.
34 Nothing herein contained shall apply to policies of
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1 excess liability carriage secured by employers who have
2 been approved by the Commission as self-insurers, or
3 (4) Make some other provision, satisfactory to the
4 Commission, for the securing of the payment of
5 compensation provided for in this Act, and
6 (5) Upon becoming subject to this Act and
7 thereafter as often as the Commission may in writing
8 demand, file with the Commission in form prescribed by it
9 evidence of his or her compliance with the provision of
10 this Section.
11 (a-1) Regardless of its state of domicile or its
12 principal place of business, an employer shall make payments
13 to its insurance carrier or group self-insurance fund, where
14 applicable, based upon the premium rates of the situs where
15 the work or project is located in Illinois if:
16 (A) the employer is engaged primarily in the
17 building and construction industry; and
18 (B) subdivision (a)(3) of this Section applies to
19 the employer or the employer is a member of a group
20 self-insurance plan as defined in subsection (1) of
21 Section 4a.
22 The Industrial Commission shall impose a penalty upon an
23 employer for violation of this subsection (a-1) if:
24 (i) the employer is given an opportunity at a
25 hearing to present evidence of its compliance with this
26 subsection (a-1); and
27 (ii) after the hearing, the Commission finds that
28 the employer failed to make payments upon the premium
29 rates of the situs where the work or project is located
30 in Illinois.
31 The penalty shall not exceed $1,000 for each day of work
32 for which the employer failed to make payments upon the
33 premium rates of the situs where the work or project is
34 located in Illinois, but the total penalty shall not exceed
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1 $50,000 for each project or each contract under which the
2 work was performed.
3 Any penalty under this subsection (a-1) must be imposed
4 not later than one year after the expiration of the
5 applicable limitation period specified in subsection (d) of
6 Section 6 of this Act. Penalties imposed under this
7 subsection (a-1) shall be deposited into the Industrial
8 Commission Operations Fund, a special fund that is created
9 in the State treasury. Subject to appropriation, moneys in
10 the Fund shall be used solely for the operations of the
11 Industrial Commission.
12 (b) The sworn application and financial statement, or
13 security, indemnity or bond, or amount of insurance, or other
14 provisions, filed, furnished, carried, or made by the
15 employer, as the case may be, shall be subject to the
16 approval of the Commission.
17 Deposits under escrow agreements shall be cash,
18 negotiable United States government bonds or negotiable
19 general obligation bonds of the State of Illinois. Such cash
20 or bonds shall be deposited in escrow with any State or
21 National Bank or Trust Company having trust authority in the
22 State of Illinois.
23 Upon the approval of the sworn application and financial
24 statement, security, indemnity or bond or amount of
25 insurance, filed, furnished or carried, as the case may be,
26 the Commission shall send to the employer written notice of
27 its approval thereof. The certificate of compliance by the
28 employer with the provisions of subparagraphs (2) and (3) of
29 paragraph (a) of this Section shall be delivered by the
30 insurance carrier to the Industrial Commission within five
31 days after the effective date of the policy so certified.
32 The insurance so certified shall cover all compensation
33 liability occurring during the time that the insurance is in
34 effect and no further certificate need be filed in case such
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1 insurance is renewed, extended or otherwise continued by such
2 carrier. The insurance so certified shall not be cancelled
3 or in the event that such insurance is not renewed, extended
4 or otherwise continued, such insurance shall not be
5 terminated until at least 10 days after receipt by the
6 Industrial Commission of notice of the cancellation or
7 termination of said insurance; provided, however, that if the
8 employer has secured insurance from another insurance
9 carrier, or has otherwise secured the payment of compensation
10 in accordance with this Section, and such insurance or other
11 security becomes effective prior to the expiration of the 10
12 days, cancellation or termination may, at the option of the
13 insurance carrier indicated in such notice, be effective as
14 of the effective date of such other insurance or security.
15 (c) Whenever the Commission shall find that any
16 corporation, company, association, aggregation of
17 individuals, reciprocal or interinsurers exchange, or other
18 insurer effecting workers' compensation insurance in this
19 State shall be insolvent, financially unsound, or unable to
20 fully meet all payments and liabilities assumed or to be
21 assumed for compensation insurance in this State, or shall
22 practice a policy of delay or unfairness toward employees in
23 the adjustment, settlement, or payment of benefits due such
24 employees, the Commission may after reasonable notice and
25 hearing order and direct that such corporation, company,
26 association, aggregation of individuals, reciprocal or
27 interinsurers exchange, or insurer, shall from and after a
28 date fixed in such order discontinue the writing of any such
29 workers' compensation insurance in this State. Subject to
30 such modification of the order as the Commission may later
31 make on review of the order, as herein provided, it shall
32 thereupon be unlawful for any such corporation, company,
33 association, aggregation of individuals, reciprocal or
34 interinsurers exchange, or insurer to effect any workers'
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1 compensation insurance in this State. A copy of the order
2 shall be served upon the Director of Insurance by registered
3 mail. Whenever the Commission finds that any service or
4 adjustment company used or employed by a self-insured
5 employer or by an insurance carrier to process, adjust,
6 investigate, compromise or otherwise handle claims under this
7 Act, has practiced or is practicing a policy of delay or
8 unfairness toward employees in the adjustment, settlement or
9 payment of benefits due such employees, the Commission may
10 after reasonable notice and hearing order and direct that
11 such service or adjustment company shall from and after a
12 date fixed in such order be prohibited from processing,
13 adjusting, investigating, compromising or otherwise handling
14 claims under this Act.
15 Whenever the Commission finds that any self-insured
16 employer has practiced or is practicing delay or unfairness
17 toward employees in the adjustment, settlement or payment of
18 benefits due such employees, the Commission may, after
19 reasonable notice and hearing, order and direct that after a
20 date fixed in the order such self-insured employer shall be
21 disqualified to operate as a self-insurer and shall be
22 required to insure his entire liability to pay compensation
23 in some insurance carrier authorized, licensed and permitted
24 to do such insurance business in this State, as provided in
25 subparagraph 3 of paragraph (a) of this Section.
26 All orders made by the Commission under this Section
27 shall be subject to review by the courts, said review to be
28 taken in the same manner and within the same time as provided
29 by Section 19 of this Act for review of awards and decisions
30 of the Commission, upon the party seeking the review filing
31 with the clerk of the court to which said review is taken a
32 bond in an amount to be fixed and approved by the court to
33 which the review is taken, conditioned upon the payment of
34 all compensation awarded against the person taking said
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1 review pending a decision thereof and further conditioned
2 upon such other obligations as the court may impose. Upon
3 the review the Circuit Court shall have power to review all
4 questions of fact as well as of law. The penalty hereinafter
5 provided for in this paragraph shall not attach and shall not
6 begin to run until the final determination of the order of
7 the Commission.
8 (d) Upon a finding by the Commission, after reasonable
9 notice and hearing, of the knowing and wilful failure of an
10 employer to comply with any of the provisions of paragraph
11 (a) of this Section or the failure or refusal of an employer,
12 service or adjustment company, or an insurance carrier to
13 comply with any order of the Industrial Commission pursuant
14 to paragraph (c) of this Section disqualifying him or her to
15 operate as a self insurer and requiring him or her to insure
16 his or her liability, the Commission may assess a civil
17 penalty of up to $500 per day for each day of such failure or
18 refusal after the effective date of this amendatory Act of
19 1989. Each day of such failure or refusal shall constitute a
20 separate offense.
21 Upon the failure or refusal of any employer, service or
22 adjustment company or insurance carrier to comply with the
23 provisions of this Section and with the orders of the
24 Commission under this Section, or the order of the court on
25 review after final adjudication, the Commission may bring a
26 civil action to recover the amount of the penalty in Cook
27 County or in Sangamon County in which litigation the
28 Commission shall be represented by the Attorney General. The
29 Commission shall send notice of its finding of non-compliance
30 and assessment of the civil penalty to the Attorney General.
31 It shall be the duty of the Attorney General within 30 days
32 after receipt of the notice, to institute prosecutions and
33 promptly prosecute all reported violations of this Section.
34 (e) This Act shall not affect or disturb the continuance
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1 of any existing insurance, mutual aid, benefit, or relief
2 association or department, whether maintained in whole or in
3 part by the employer or whether maintained by the employees,
4 the payment of benefits of such association or department
5 being guaranteed by the employer or by some person, firm or
6 corporation for him or her: Provided, the employer
7 contributes to such association or department an amount not
8 less than the full compensation herein provided, exclusive of
9 the cost of the maintenance of such association or department
10 and without any expense to the employee. This Act shall not
11 prevent the organization and maintaining under the insurance
12 laws of this State of any benefit or insurance company for
13 the purpose of insuring against the compensation provided for
14 in this Act, the expense of which is maintained by the
15 employer. This Act shall not prevent the organization or
16 maintaining under the insurance laws of this State of any
17 voluntary mutual aid, benefit or relief association among
18 employees for the payment of additional accident or sick
19 benefits.
20 (f) No existing insurance, mutual aid, benefit or relief
21 association or department shall, by reason of anything herein
22 contained, be authorized to discontinue its operation without
23 first discharging its obligations to any and all persons
24 carrying insurance in the same or entitled to relief or
25 benefits therein.
26 (g) Any contract, oral, written or implied, of
27 employment providing for relief benefit, or insurance or any
28 other device whereby the employee is required to pay any
29 premium or premiums for insurance against the compensation
30 provided for in this Act shall be null and void. Any
31 employer withholding from the wages of any employee any
32 amount for the purpose of paying any such premium shall be
33 guilty of a Class B misdemeanor.
34 In the event the employer does not pay the compensation
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1 for which he or she is liable, then an insurance company,
2 association or insurer which may have insured such employer
3 against such liability shall become primarily liable to pay
4 to the employee, his or her personal representative or
5 beneficiary the compensation required by the provisions of
6 this Act to be paid by such employer. The insurance carrier
7 may be made a party to the proceedings in which the employer
8 is a party and an award may be entered jointly against the
9 employer and the insurance carrier.
10 (h) It shall be unlawful for any employer, insurance
11 company or service or adjustment company to interfere with,
12 restrain or coerce an employee in any manner whatsoever in
13 the exercise of the rights or remedies granted to him or her
14 by this Act or to discriminate, attempt to discriminate, or
15 threaten to discriminate against an employee in any way
16 because of his or her exercise of the rights or remedies
17 granted to him or her by this Act.
18 It shall be unlawful for any employer, individually or
19 through any insurance company or service or adjustment
20 company, to discharge or to threaten to discharge, or to
21 refuse to rehire or recall to active service in a suitable
22 capacity an employee because of the exercise of his or her
23 rights or remedies granted to him or her by this Act.
24 (i) If an employer elects to obtain a life insurance
25 policy on his employees, he may also elect to apply such
26 benefits in satisfaction of all or a portion of the death
27 benefits payable under this Act, in which case, the
28 employer's compensation premium shall be reduced accordingly.
29 (j) Within 45 days of receipt of an initial application
30 or application to renew self-insurance privileges the
31 Self-Insurers Advisory Board shall review and submit for
32 approval by the Chairman of the Commission recommendations of
33 disposition of all initial applications to self-insure and
34 all applications to renew self-insurance privileges filed by
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1 private self-insurers pursuant to the provisions of this
2 Section and Section 4a-9 of this Act. Each private
3 self-insurer shall submit with its initial and renewal
4 applications the application fee required by Section 4a-4 of
5 this Act.
6 The Chairman of the Commission shall promptly act upon
7 all initial applications and applications for renewal in full
8 accordance with the recommendations of the Board or, should
9 the Chairman disagree with any recommendation of disposition
10 of the Self-Insurer's Advisory Board, he shall within 30 days
11 of receipt of such recommendation provide to the Board in
12 writing the reasons supporting his decision. The Chairman
13 shall also promptly notify the employer of his decision
14 within 15 days of receipt of the recommendation of the Board.
15 If an employer is denied a renewal of self-insurance
16 privileges pursuant to application it shall retain said
17 privilege for 120 days after receipt of a notice of
18 cancellation of the privilege from the Chairman of the
19 Commission.
20 All orders made by the Chairman under this Section shall
21 be subject to review by the courts, such review to be taken
22 in the same manner and within the same time as provided by
23 subsection (f) of Section 19 of this Act for review of awards
24 and decisions of the Commission, upon the party seeking the
25 review filing with the clerk of the court to which such
26 review is taken a bond in an amount to be fixed and approved
27 by the court to which the review is taken, conditioned upon
28 the payment of all compensation awarded against the person
29 taking such review pending a decision thereof and further
30 conditioned upon such other obligations as the court may
31 impose. Upon the review the Circuit Court shall have power
32 to review all questions of fact as well as of law.
33 (Source: P.A. 90-109, eff. 1-1-98.)
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1 Section 10. The Workers' Occupational Diseases Act is
2 amended by changing Section 4 as follows:
3 (820 ILCS 310/4) (from Ch. 48, par. 172.39)
4 Sec. 4. (a) Any employer required by the terms of this
5 Act or by election to pay the compensation provided for in
6 this Act shall:
7 (1) File with the Commission an application for
8 approval as a self-insurer which shall include a current
9 financial statement. The application and financial
10 statement shall be signed and sworn to by the president
11 or vice-president and secretary or assistant secretary of
12 the employer if it be a corporation, or by all of the
13 partners if it be a copartnership, or by the owner if it
14 be neither a copartnership nor a corporation.
15 If the sworn application and financial statement of
16 any such employer does not satisfy the Commission of the
17 financial ability of the employer who has filed it, the
18 Commission shall require such employer to:
19 (2) Furnish security, indemnity or a bond
20 guaranteeing the payment by the employer of the
21 compensation provided for in this Act, provided that any
22 such employer who shall have secured his or her liability
23 in part by excess liability coverage shall be required to
24 furnish to the Commission security, indemnity or bond
25 guaranteeing his or her payment up to the amount of the
26 effective limits of the excess coverage in accordance
27 with the provisions of this paragraph, or
28 (3) Insure his or her entire liability to pay such
29 compensation in some insurance carrier authorized,
30 licensed or permitted to do such insurance business in
31 this State. All policies of such insurance carriers
32 insuring the payment of compensation under this Act shall
33 cover all the employees and all such employer's
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1 compensation liability in all cases in which the last day
2 of the last exposure to the occupational disease involved
3 is within the effective period of the policy, anything to
4 the contrary in the policy notwithstanding. Provided,
5 however, that any employer may insure his or her
6 compensation liability under this Act with 2 or more
7 insurance carriers or may insure a part and qualify under
8 Subsection 1, 2, or 4 for the remainder of his liability
9 to pay such compensation, subject to the following two
10 provisions:
11 Firstly, the entire liability of the employer
12 to employees working at or from one location shall
13 be insured in one such insurance carrier or shall be
14 self-insured.
15 Secondly, the employer shall submit evidence
16 satisfactory to the Commission that his or her
17 entire liability for the compensation provided for
18 in this Act will be secured.
19 Any provision in a policy or in any endorsement
20 attached thereto attempting to limit or modify in any way
21 the liability of the insurance carrier issuing the same,
22 except as otherwise provided herein, shall be wholly
23 void.
24 The insurance or security in force to cover
25 compensation liability under this Act shall be separate
26 and distinct from the insurance or security under the
27 "Workers' Compensation Act" and any insurance contract
28 covering liability under either Act need not cover any
29 liability under the other. Nothing herein contained
30 shall apply to policies of excess liability carriage
31 secured by employers who have been approved by the
32 Commission as self-insurers, or
33 (4) Make some other provision, satisfactory to the
34 Commission, for the securing of the payment of
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1 compensation provided for in this Act, and
2 (5) Upon becoming subject to this Act and
3 thereafter as often as the Commission may in writing
4 demand, file with the Commission in form prescribed by it
5 evidence of his or her compliance with the provision of
6 this Section.
7 (a-1) Regardless of its state of domicile or its
8 principal place of business, an employer shall make payments
9 to its insurance carrier or group self-insurance fund, where
10 applicable, based upon the premium rates of the situs where
11 the work or project is located in Illinois if:
12 (A) the employer is engaged primarily in the
13 building and construction industry; and
14 (B) subdivision (a)(3) of this Section applies to
15 the employer or the employer is a member of a group
16 self-insurance plan as defined in subsection (1) of
17 Section 4a.
18 The Industrial Commission shall impose a penalty upon an
19 employer for violation of this subsection (a-1) if:
20 (i) the employer is given an opportunity at a
21 hearing to present evidence of its compliance with this
22 subsection (a-1); and
23 (ii) after the hearing, the Commission finds that
24 the employer failed to make payments upon the premium
25 rates of the situs where the work or project is located
26 in Illinois.
27 The penalty shall not exceed $1,000 for each day of work
28 for which the employer failed to make payments upon the
29 premium rates of the situs where the work or project is
30 located in Illinois, but the total penalty shall not exceed
31 $50,000 for each project or each contract under which the
32 work was performed.
33 Any penalty under this subsection (a-1) must be imposed
34 not later than one year after the expiration of the
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1 applicable limitation period specified in subsection (c) of
2 Section 6 of this Act. Penalties imposed under this
3 subsection (a-1) shall be deposited into the Industrial
4 Commission Operations Fund created under Section 4 of the
5 Workers' Compensation Act.
6 (b) The sworn application and financial statement, or
7 security, indemnity or bond, or amount of insurance, or other
8 provisions, filed, furnished, carried, or made by the
9 employer, as the case may be, shall be subject to the
10 approval of the Commission.
11 Deposits under escrow agreements shall be cash,
12 negotiable United States government bonds or negotiable
13 general obligation bonds of the State of Illinois. Such cash
14 or bonds shall be deposited in escrow with any State or
15 National Bank or Trust Company having trust authority in the
16 State of Illinois.
17 Upon the approval of the sworn application and financial
18 statement, security, indemnity or bond or amount of
19 insurance, filed, furnished, or carried, as the case may be,
20 the Commission shall send to the employer written notice of
21 its approval thereof. Said certificate of compliance by the
22 employer with the provisions of subparagraphs (2) and (3) of
23 paragraph (a) of this Section shall be delivered by the
24 insurance carrier to the Industrial Commission within 5 days
25 after the effective date of the policy so certified. The
26 insurance so certified shall cover all compensation liability
27 occurring during the time that the insurance is in effect and
28 no further certificate need be filed in case such insurance
29 is renewed, extended or otherwise continued by such carrier.
30 The insurance so certified shall not be cancelled or in the
31 event that such insurance is not renewed, extended or
32 otherwise continued, such insurance shall not be terminated
33 until at least 10 days after receipt by the Industrial
34 Commission of notice of the cancellation or termination of
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1 said insurance; provided, however, that if the employer has
2 secured insurance from another insurance carrier, or has
3 otherwise secured the payment of compensation in accordance
4 with this Section, and such insurance or other security
5 becomes effective prior to the expiration of said 10 days,
6 cancellation or termination may, at the option of the
7 insurance carrier indicated in such notice, be effective as
8 of the effective date of such other insurance or security.
9 (c) Whenever the Commission shall find that any
10 corporation, company, association, aggregation of
11 individuals, reciprocal or interinsurers exchange, or other
12 insurer effecting workers' occupational disease compensation
13 insurance in this State shall be insolvent, financially
14 unsound, or unable to fully meet all payments and liabilities
15 assumed or to be assumed for compensation insurance in this
16 State, or shall practice a policy of delay or unfairness
17 toward employees in the adjustment, settlement, or payment of
18 benefits due such employees, the Commission may after
19 reasonable notice and hearing order and direct that such
20 corporation, company, association, aggregation of
21 individuals, reciprocal or interinsurers exchange, or
22 insurer, shall from and after a date fixed in such order
23 discontinue the writing of any such workers' occupational
24 disease compensation insurance in this State. It shall
25 thereupon be unlawful for any such corporation, company,
26 association, aggregation of individuals, reciprocal or
27 interinsurers exchange, or insurer to effect any workers'
28 occupational disease compensation insurance in this State. A
29 copy of the order shall be served upon the Director of
30 Insurance by registered mail. Whenever the Commission finds
31 that any service or adjustment company used or employed by a
32 self-insured employer or by an insurance carrier to process,
33 adjust, investigate, compromise or otherwise handle claims
34 under this Act, has practiced or is practicing a policy of
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1 delay or unfairness toward employees in the adjustment,
2 settlement or payment of benefits due such employees, the
3 Commission may after reasonable notice and hearing order and
4 direct that such service or adjustment company shall from and
5 after a date fixed in such order be prohibited from
6 processing, adjusting, investigating, compromising or
7 otherwise handling claims under this Act.
8 Whenever the Commission finds that any self-insured
9 employer has practiced or is practicing delay or unfairness
10 toward employees in the adjustment, settlement or payment of
11 benefits due such employees, the Commission may after
12 reasonable notice and hearing order and direct that after a
13 date fixed in the order such self-insured employer shall be
14 disqualified to operate as a self-insurer and shall be
15 required to insure his entire liability to pay compensation
16 in some insurance carrier authorized, licensed and permitted
17 to do such insurance business in this State as provided in
18 subparagraph (3) of paragraph (a) of this Section.
19 All orders made by the Commission under this Section
20 shall be subject to review by the courts, the review to be
21 taken in the same manner and within the same time as provided
22 by Section 19 of this Act for review of awards and decisions
23 of the Commission, upon the party seeking the review filing
24 with the clerk of the court to which said review is taken a
25 bond in an amount to be fixed and approved by the court to
26 which said review is taken, conditioned upon the payment of
27 all compensation awarded against the person taking the review
28 pending a decision thereof and further conditioned upon such
29 other obligations as the court may impose. Upon the review
30 the Circuit Court shall have power to review all questions of
31 fact as well as of law. The penalty hereinafter provided for
32 in this paragraph shall not attach and shall not begin to run
33 until the final determination of the order of the Commission.
34 (d) Upon a finding by the Commission, after reasonable
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1 notice and hearing, of the knowing and wilful failure of an
2 employer to comply with any of the provisions of paragraph
3 (a) of this Section or the failure or refusal of an employer,
4 service or adjustment company, or insurance carrier to comply
5 with any order of the Industrial Commission pursuant to
6 paragraph (c) of this Section the Commission may assess a
7 civil penalty of up to $500 per day for each day of such
8 failure or refusal after the effective date of this
9 amendatory Act of 1989. Each day of such failure or refusal
10 shall constitute a separate offense.
11 Upon the failure or refusal of any employer, service or
12 adjustment company or insurance carrier to comply with the
13 provisions of this Section and orders of the Commission under
14 this Section, or the order of the court on review after final
15 adjudication, the Commission may bring a civil action to
16 recover the amount of the penalty in Cook County or in
17 Sangamon County in which litigation the Commission shall be
18 represented by the Attorney General. The Commission shall
19 send notice of its finding of non-compliance and assessment
20 of the civil penalty to the Attorney General. It shall be
21 the duty of the Attorney General within 30 days after receipt
22 of the notice, to institute prosecutions and promptly
23 prosecute all reported violations of this Section.
24 (e) This Act shall not affect or disturb the continuance
25 of any existing insurance, mutual aid, benefit, or relief
26 association or department, whether maintained in whole or in
27 part by the employer or whether maintained by the employees,
28 the payment of benefits of such association or department
29 being guaranteed by the employer or by some person, firm or
30 corporation for him or her: Provided, the employer
31 contributes to such association or department an amount not
32 less than the full compensation herein provided, exclusive of
33 the cost of the maintenance of such association or department
34 and without any expense to the employee. This Act shall not
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1 prevent the organization and maintaining under the insurance
2 laws of this State of any benefit or insurance company for
3 the purpose of insuring against the compensation provided for
4 in this Act, the expense of which is maintained by the
5 employer. This Act shall not prevent the organization or
6 maintaining under the insurance laws of this State of any
7 voluntary mutual aid, benefit or relief association among
8 employees for the payment of additional accident or sick
9 benefits.
10 (f) No existing insurance, mutual aid, benefit or relief
11 association or department shall, by reason of anything herein
12 contained, be authorized to discontinue its operation without
13 first discharging its obligations to any and all persons
14 carrying insurance in the same or entitled to relief or
15 benefits therein.
16 (g) Any contract, oral, written or implied, of
17 employment providing for relief benefit, or insurance or any
18 other device whereby the employee is required to pay any
19 premium or premiums for insurance against the compensation
20 provided for in this Act shall be null and void. Any
21 employer withholding from the wages of any employee any
22 amount for the purpose of paying any such premium shall be
23 guilty of a Class B misdemeanor.
24 In the event the employer does not pay the compensation
25 for which he or she is liable, then an insurance company,
26 association or insurer which may have insured such employer
27 against such liability shall become primarily liable to pay
28 to the employee, his personal representative or beneficiary
29 the compensation required by the provisions of this Act to be
30 paid by such employer. The insurance carrier may be made a
31 party to the proceedings in which the employer is a party and
32 an award may be entered jointly against the employer and the
33 insurance carrier.
34 (h) It shall be unlawful for any employer, insurance
-19- LRB9106164WHdv
1 company or service or adjustment company to interfere with,
2 restrain or coerce an employee in any manner whatsoever in
3 the exercise of the rights or remedies granted to him or her
4 by this Act or to discriminate, attempt to discriminate, or
5 threaten to discriminate against an employee in any way
6 because of his exercise of the rights or remedies granted to
7 him by this Act.
8 It shall be unlawful for any employer, individually or
9 through any insurance company or service or adjustment
10 company, to discharge or to threaten to discharge, or to
11 refuse to rehire or recall to active service in a suitable
12 capacity an employee because of the exercise of his or her
13 rights or remedies granted to him or her by this Act.
14 (i) If an employer elects to obtain a life insurance
15 policy on his employees, he may also elect to apply such
16 benefits in satisfaction of all or a portion of the death
17 benefits payable under this Act, in which case, the
18 employer's premium for coverage for benefits under this Act
19 shall be reduced accordingly.
20 (Source: P.A. 90-109, eff. 1-1-98.)
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