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| Public Act 098-0504 | ||||
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AN ACT concerning government.
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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 Intergovernmental Cooperation Act is | ||||
amended by changing Section 6 as follows:
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(5 ILCS 220/6) (from Ch. 127, par. 746)
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Sec. 6. Joint self-insurance. An intergovernmental | ||||
contract may, among
other undertakings,
authorize public | ||||
agencies to jointly self-insure and authorize each public
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agency member of the contract to utilize its funds to pay to a | ||||
joint
insurance pool its costs and reserves to protect, wholly | ||||
or partially,
itself or any public agency member of the | ||||
contract against liability or
loss in the designated insurable | ||||
area. | ||||
A joint insurance pool shall have an
annual audit performed | ||||
by an independent certified public accountant and shall
file an | ||||
annual audited financial report with the Director of Insurance | ||||
no later
than 150 days after the end of the pool's immediately | ||||
preceding fiscal year.
The
Director of Insurance shall issue | ||||
rules necessary to implement this audit and
report requirement. | ||||
The rule shall establish the due date for filing the
initial | ||||
annual audited financial report. Within 30 days after January | ||||
1,
1991, and within 30 days after each January 1 thereafter, | ||||
public agencies
that are jointly self-insured to protect | ||
against liability under the
Workers' Compensation Act and the | ||
Workers' Occupational Diseases Act shall
file with the Illinois | ||
Workers' Compensation Commission a report indicating an | ||
election to
self-insure. | ||
The joint insurance pool shall also annually file with the | ||
Director a statement of actuarial opinion by an independent | ||
actuary who is an associate or fellow in a casualty actuarial | ||
society that the pool's reserves are in accordance with sound | ||
loss-reserving standards and adequate for the payment of | ||
claims. This opinion shall be filed no later than 150 days | ||
after the end of each fiscal year. The joint insurance pool | ||
shall be exempt from filing a statement of actuarial opinion by | ||
an independent actuary who is an associate or fellow in a | ||
casualty actuarial society that the joint insurance pool's | ||
reserves are in accordance with sound loss-reserving standards | ||
and payment of claims for the primary level of coverage if the | ||
joint insurance pool files with the Director, by the reporting | ||
deadline, a statement of actuarial opinion from the provider of | ||
the joint pool's aggregate coverage, reinsurance, or other | ||
similar excess insurance coverage.
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The Director may assess penalties against a joint insurance | ||
pool that fails to comply with the auditing, statement of | ||
actuarial opinion, and examination requirements of this | ||
Section in an amount equal to $500 per day for each violation, | ||
up to a maximum of $10,000 for each violation. The Director (or | ||
his or her staff) or a Director-selected independent auditor | ||
(or actuarial firm) that is not owned or affiliated with an | ||
insurance brokerage firm, insurance company, or other | ||
insurance industry affiliated entity may examine, as often as | ||
the Director deems advisable, the affairs, transactions, | ||
accounts, records, and assets and liabilities of each joint | ||
insurance pool that fails to comply with this Section. The | ||
joint insurance pool shall cooperate fully with the Director's | ||
representatives in all evaluations and audits of the joint | ||
insurance pool and resolve issues raised in those evaluations | ||
and audits. The failure to resolve those issues may constitute | ||
a violation of this Section, and may, after notice and an | ||
opportunity to be heard, result in the imposition of penalties | ||
pursuant to this Section. No sanctions under this Section may | ||
become effective until 30 days after the date that a notice of | ||
sanctions is delivered by registered or certified mail to the | ||
joint insurance pool. The Director shall have the authority to | ||
extend the time for filing any statement by any joint insurance | ||
pool for reasons that he or she considers good and sufficient. | ||
If a joint insurance pool requires a member to submit | ||
written notice in order for the member to withdraw from a | ||
qualified pool, then the period in which the member must | ||
provide the written notice cannot be greater than 120 days, | ||
except that this requirement applies only to joint insurance | ||
pool agreements entered into, modified, or renewed on or after | ||
the effective date of this amendatory Act of the 98th General | ||
Assembly. | ||
For purposes of this Section, "public agency member" means | ||
any public
agency
defined or created under this Act, any local | ||
public entity as defined in
Section 1-206 of
the Local | ||
Governmental and Governmental Employees Tort Immunity Act, and | ||
any
public agency, authority, instrumentality, council, board, | ||
service region,
district,
unit, bureau,
or, commission, or any | ||
municipal corporation, college, or university, whether
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corporate or
otherwise,
and any other local governmental body | ||
or similar entity that is presently
existing or
created after | ||
the effective date of this amendatory Act of the 92nd General
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Assembly,
whether or not specified in this Section.
Only public | ||
agency members with tax receipts, tax revenues, taxing
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authority, or other
resources sufficient to pay costs and to | ||
service debt related to
intergovernmental activities
described | ||
in this Section, or public agency members created by or as part | ||
of a
public
agency with these powers, may enter into contracts | ||
or otherwise associate among
themselves as permitted in this | ||
Section.
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No joint insurance pool or other intergovernmental | ||
cooperative offering health insurance shall interfere with the | ||
statutory obligation of any public agency member to bargain | ||
over or to reach agreement with a labor organization over a | ||
mandatory subject of collective bargaining as those terms are | ||
used in the Illinois Public Labor Relations Act. No | ||
intergovernmental contract of insurance offering health | ||
insurance shall limit the rights or obligations of public | ||
agency members to engage in collective bargaining, and it shall | ||
be unlawful for a joint insurance pool or other | ||
intergovernmental cooperative offering health insurance to | ||
discriminate against public agency members or otherwise | ||
retaliate against such members for limiting their | ||
participation in a joint insurance pool as a result of a | ||
collective bargaining agreement.
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It shall not be considered a violation of this Section for | ||
an intergovernmental contract of insurance relating to health | ||
insurance coverage, life insurance coverage, or both to permit | ||
the pool or cooperative, if a member withdraws employees or | ||
officers into a union-sponsored program, to re-price the costs | ||
of benefits provided to the continuing employees or officers | ||
based upon the same underwriting criteria used by that pool or | ||
cooperative in the normal course of its business, but no member | ||
shall be expelled from a pool or cooperative if the continuing | ||
employees or officers meet the general criteria required of | ||
other members.
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(Source: P.A. 93-721, eff. 1-1-05; 94-685, eff. 11-2-05.)
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