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| 1 | AN ACT concerning regulation.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Employee Leasing Company Act is amended by | ||||||
| 5 | changing Sections 25 and 30 as follows:
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| 6 | (215 ILCS 113/25)
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| 7 | Sec. 25. Record keeping and reporting requirement.
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| 8 | (a) A lessor shall maintain accounting and employment | ||||||
| 9 | records relating to
all employee leasing arrangements for a | ||||||
| 10 | minimum of 4 calendar years. A lessor
shall maintain the | ||||||
| 11 | address of each office it maintains in this State, at its
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| 12 | principal place of business.
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| 13 | (b) A lessor shall maintain sufficient information in a | ||||||
| 14 | manner consistent
with a licensed rating organization's data | ||||||
| 15 | submission requirements to permit
the rating organization | ||||||
| 16 | licensed under Section 459 of the Illinois Insurance
Code to | ||||||
| 17 | calculate an experience modification factor for the lessee.
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| 18 | (c) Upon written request of a lessee with an annual payroll | ||||||
| 19 | attributed to it
in excess of $200,000, the lessor shall | ||||||
| 20 | provide the lessee's experience
modification factor to the | ||||||
| 21 | lessee within 30 days of the request.
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| 22 | (d) Upon request of a lessee with an annual payroll | ||||||
| 23 | attributed to it of less
than $200,000, the lessor shall | ||||||
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| 1 | provide the loss information required to be
maintained
by this | ||||||
| 2 | Section to the lessee within 30 days of the request.
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| 3 | (e) Nothing in this Section shall preclude a licensed | ||||||
| 4 | rating organization
from calculating the experience | ||||||
| 5 | modification factor for each lessee nor an
insurer from | ||||||
| 6 | maintaining and furnishing on behalf of the lessor, such
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| 7 | information as required by this Section.
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| 8 | (f) In the event that a lessee's experience modification | ||||||
| 9 | factor
exceeds the
lessor's experience modification factor by | ||||||
| 10 | 50% at the inception of the employee
leasing arrangement, the | ||||||
| 11 | lessee's experience
modification factor shall be utilized to | ||||||
| 12 | calculate the premium or costs charged
to the lessee for | ||||||
| 13 | workers' compensation coverage for a period of 2 years.
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| 14 | Thereafter, the premium charged by the insurer for
inclusion of | ||||||
| 15 | a
lessee under a lessor's policy may be calculated on the basis | ||||||
| 16 | of the lessor's
experience modification factor.
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| 17 | (g) A lessor that does not provide workers' compensation | ||||||
| 18 | insurance coverage for leased employees of a lessee under an | ||||||
| 19 | employee leasing arrangement shall not be subject to compliance | ||||||
| 20 | with subsections (b) through (f) of this Section. | ||||||
| 21 | (Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)
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| 22 | (215 ILCS 113/30)
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| 23 | Sec. 30. Responsibility for policy issuance and | ||||||
| 24 | continuance.
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| 25 | (a) Either a lessor or lessee may provide workers' | ||||||
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| 1 | compensation insurance coverage for leased employees under an | ||||||
| 2 | employee leasing arrangement. When a workers' compensation | ||||||
| 3 | policy written to cover leased
employees is issued to the | ||||||
| 4 | lessor as the named
insured, the lessee shall be identified | ||||||
| 5 | thereon by the
attachment of
an appropriate endorsement | ||||||
| 6 | indicating that the policy provides coverage for
leased
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| 7 | employees. The endorsement shall, at a
minimum, provide for the | ||||||
| 8 | following:
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| 9 | (1) Coverage under the endorsement shall be limited to | ||||||
| 10 | the
named insured's
employees leased to the lessees.
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| 11 | (2) The experience of the employees leased to the | ||||||
| 12 | particular
lessee shall be separately maintained by the | ||||||
| 13 | lessor as provided in Section
25.
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| 14 | (b) (Blank).
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| 15 | (c) The lessor shall notify the insurer or a licensed | ||||||
| 16 | rating organization 30
days prior to the effective date of | ||||||
| 17 | termination or immediately upon
notification of cancellation | ||||||
| 18 | by the lessor of an employee leasing arrangement
with the | ||||||
| 19 | lessee in order to allow sufficient time to calculate an | ||||||
| 20 | experience
modification factor for
the lessee.
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| 21 | (d) The insurer shall provide proof of workers' | ||||||
| 22 | compensation
insurance to
the lessor and to each applicable | ||||||
| 23 | lessee within 30 days of the coverage
being effected or | ||||||
| 24 | changed.
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| 25 | (e) Calculation of a lessor's or lessee's premium shall be | ||||||
| 26 | done in
accordance with the insurer's rating manual filed with | ||||||
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| 1 | the
Department. | ||||||
| 2 | (f) When the lessee provides workers' compensation | ||||||
| 3 | coverage for leased employees under an employee leasing | ||||||
| 4 | arrangement, the lessor shall notify the Department in a manner | ||||||
| 5 | specified by the Department to ensure proper and timely | ||||||
| 6 | notification of coverage to the Department.
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| 7 | (Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)
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