HB2919eng 98TH GENERAL ASSEMBLY

HB2919 Engrossed LRB098 08245 JLS 38343 b

AN ACT concerning workers' compensation insurance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Workers' Compensation Insurance Fund Act.

Section 5. Creation of the Workers' Compensation Insurance State Fund.

(a) There is hereby created an independent body corporate and politic to be known as the Workers' Compensation Insurance State Fund for the purpose of insuring employers against liability for compensation under the Workers' Compensation Act. The Fund shall consist of all premiums and penalties received and paid into the Fund, of property and securities acquired by and through the use of money belonging to the Fund, and of interest earned upon money belonging to the Fund and deposited or invested.

(b) The Fund shall be administered by the Department of Insurance without liability on the part of the State. The Fund shall be applicable to the payment of losses sustained on account of insurance and to the payment of compensation under the Workers' Compensation Act and of expenses of administering the Fund.

(c) The Director of Insurance shall appoint 5 persons to be the board of directors of the Workers' Compensation Insurance State Fund and shall appoint a chairman from the 5 directors. The directors shall be appointed for terms of 4 years, except that all vacancies shall be filled for the unexpired term, provided that the first 2 appointments that the Director makes after the effective date of this Act shall serve a term of 2 years and the other 3 members shall serve a term of 4 years. Thereafter, a member shall serve a term of 4 years. The members of the board of directors shall appoint a manager of the Workers' Compensation Insurance State Fund who shall serve at their pleasure and such other officers and employees as they may require for the performance of their duties and shall prescribe the duties and compensation of each officer and employee.

(d) It shall be the duty of the board of directors to direct the policies and operation of the Workers' Compensation Insurance State Fund to ensure that the Fund is run as an efficient insurance company, remains actuarially sound, and maintains the public purposes for which the Workers' Compensation Insurance State Fund was created.

(e) The Workers' Compensation Insurance State Fund is subject to and shall comply with the provisions of the Illinois Insurance Code. For purposes of regulation, the Workers' Compensation Insurance State Fund shall be deemed to be a mutual insurer.