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91_HB1587eng HB1587 Engrossed LRB9103672WHdv 1 AN ACT to amend certain Acts in relation to workplace 2 injuries and diseases. 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, including but not limited to 9 general contractors and their subcontractors, who shall come 10 within the provisions of Section 3 of this Act, and any other 11 employer who shall elect to provide and pay the compensation 12 provided for in this Act shall: 13 (1) File with the Commission annually an 14 application for approval as a self-insurer which shall 15 include a current financial statement, and annually, 16 thereafter, an application for renewal of self-insurance, 17 which shall include a current financial statement. Said 18 application and financial statement shall be signed and 19 sworn to by the president or vice president and secretary 20 or assistant secretary of the employer if it be a 21 corporation, or by all of the partners, if it be a 22 copartnership, or by the owner if it be neither a 23 copartnership nor a corporation. All initial applications 24 and all applications for renewal of self-insurance must 25 be submitted at least 60 days prior to the requested 26 effective date of self-insurance. 27 If the sworn application and financial statement of 28 any such employer does not satisfy the Commission of the 29 financial ability of the employer who has filed it, the 30 Commission shall require such employer to, 31 (2) Furnish security, indemnity or a bond HB1587 Engrossed -2- LRB9103672WHdv 1 guaranteeing the payment by the employer of the 2 compensation provided for in this Act, provided that any 3 such employer whose application and financial statement 4 shall not have satisfied the commission of his or her 5 financial ability and who shall have secured his 6 liability in part by excess liability insurance shall be 7 required to furnish to the Commission security, indemnity 8 or bond guaranteeing his or her payment up to the 9 effective limits of the excess coverage, or 10 (3) Insure his entire liability to pay such 11 compensation in some insurance carrier authorized, 12 licensed, or permitted to do such insurance business in 13 this State. Every policy of an insurance carrier, 14 insuring the payment of compensation under this Act shall 15 cover all the employees and the entire compensation 16 liability of the insured: Provided, however, that any 17 employer may insure his or her compensation liability 18 with 2 or more insurance carriers or may insure a part 19 and qualify under subsection 1, 2, or 4 for the remainder 20 of his or her liability to pay such compensation, subject 21 to the following two provisions: 22 Firstly, the entire compensation liability of 23 the employer to employees working at or from one 24 location shall be insured in one such insurance 25 carrier or shall be self-insured, and 26 Secondly, the employer shall submit evidence 27 satisfactorily to the Commission that his or her 28 entire liability for the compensation provided for 29 in this Act will be secured. Any provisions in any 30 policy, or in any endorsement attached thereto, 31 attempting to limit or modify in any way, the 32 liability of the insurance carriers issuing the same 33 except as otherwise provided herein shall be wholly 34 void. HB1587 Engrossed -3- LRB9103672WHdv 1 Nothing herein contained shall apply to policies of 2 excess liability carriage secured by employers who have 3 been approved by the Commission as self-insurers, or 4 (4) Make some other provision, satisfactory to the 5 Commission, for the securing of the payment of 6 compensation provided for in this Act, and 7 (5) Upon becoming subject to this Act and 8 thereafter as often as the Commission may in writing 9 demand, file with the Commission in form prescribed by it 10 evidence of his or her compliance with the provision of 11 this Section. 12 (a-1) Regardless of its state of domicile or its 13 principal place of business, an employer shall make payments 14 to its insurance carrier or group self-insurance fund, where 15 applicable, based upon the premium rates of the situs where 16 the work or project is located in Illinois if: 17 (A) the employer is engaged primarily in the 18 building and construction industry; and 19 (B) subdivision (a)(3) of this Section applies to 20 the employer or the employer is a member of a group 21 self-insurance plan as defined in subsection (1) of 22 Section 4a. 23 The Industrial Commission shall impose a penalty upon an 24 employer for violation of this subsection (a-1) if: 25 (i) the employer is given an opportunity at a 26 hearing to present evidence of its compliance with this 27 subsection (a-1); and 28 (ii) after the hearing, the Commission finds that 29 the employer failed to make payments upon the premium 30 rates of the situs where the work or project is located 31 in Illinois. 32 The penalty shall not exceed $1,000 for each day of work 33 for which the employer failed to make payments upon the 34 premium rates of the situs where the work or project is HB1587 Engrossed -4- LRB9103672WHdv 1 located in Illinois, but the total penalty shall not exceed 2 $50,000 for each project or each contract under which the 3 work was performed. 4 Any penalty under this subsection (a-1) must be imposed 5 not later than one year after the expiration of the 6 applicable limitation period specified in subsection (d) of 7 Section 6 of this Act. Penalties imposed under this 8 subsection (a-1) shall be deposited into the Industrial 9 Commission Operations Fund, a special fund that is created 10 in the State treasury. Subject to appropriation, moneys in 11 the Fund shall be used solely for the operations of the 12 Industrial Commission. 13 (b) The sworn application and financial statement, or 14 security, indemnity or bond, or amount of insurance, or other 15 provisions, filed, furnished, carried, or made by the 16 employer, as the case may be, shall be subject to the 17 approval of the Commission. 18 Deposits under escrow agreements shall be cash, 19 negotiable United States government bonds or negotiable 20 general obligation bonds of the State of Illinois. Such cash 21 or bonds shall be deposited in escrow with any State or 22 National Bank or Trust Company having trust authority in the 23 State of Illinois. 24 Upon the approval of the sworn application and financial 25 statement, security, indemnity or bond or amount of 26 insurance, filed, furnished or carried, as the case may be, 27 the Commission shall send to the employer written notice of 28 its approval thereof. The certificate of compliance by the 29 employer with the provisions of subparagraphs (2) and (3) of 30 paragraph (a) of this Section shall be delivered by the 31 insurance carrier to the Industrial Commission within five 32 days after the effective date of the policy so certified. 33 The insurance so certified shall cover all compensation 34 liability occurring during the time that the insurance is in HB1587 Engrossed -5- LRB9103672WHdv 1 effect and no further certificate need be filed in case such 2 insurance is renewed, extended or otherwise continued by such 3 carrier. The insurance so certified shall not be cancelled 4 or in the event that such insurance is not renewed, extended 5 or otherwise continued, such insurance shall not be 6 terminated until at least 10 days after receipt by the 7 Industrial Commission of notice of the cancellation or 8 termination of said insurance; provided, however, that if the 9 employer has secured insurance from another insurance 10 carrier, or has otherwise secured the payment of compensation 11 in accordance with this Section, and such insurance or other 12 security becomes effective prior to the expiration of the 10 13 days, cancellation or termination may, at the option of the 14 insurance carrier indicated in such notice, be effective as 15 of the effective date of such other insurance or security. 16 (c) Whenever the Commission shall find that any 17 corporation, company, association, aggregation of 18 individuals, reciprocal or interinsurers exchange, or other 19 insurer effecting workers' compensation insurance in this 20 State shall be insolvent, financially unsound, or unable to 21 fully meet all payments and liabilities assumed or to be 22 assumed for compensation insurance in this State, or shall 23 practice a policy of delay or unfairness toward employees in 24 the adjustment, settlement, or payment of benefits due such 25 employees, the Commission may after reasonable notice and 26 hearing order and direct that such corporation, company, 27 association, aggregation of individuals, reciprocal or 28 interinsurers exchange, or insurer, shall from and after a 29 date fixed in such order discontinue the writing of any such 30 workers' compensation insurance in this State. Subject to 31 such modification of the order as the Commission may later 32 make on review of the order, as herein provided, it shall 33 thereupon be unlawful for any such corporation, company, 34 association, aggregation of individuals, reciprocal or HB1587 Engrossed -6- LRB9103672WHdv 1 interinsurers exchange, or insurer to effect any workers' 2 compensation insurance in this State. A copy of the order 3 shall be served upon the Director of Insurance by registered 4 mail. Whenever the Commission finds that any service or 5 adjustment company used or employed by a self-insured 6 employer or by an insurance carrier to process, adjust, 7 investigate, compromise or otherwise handle claims under this 8 Act, has practiced or is practicing a policy of delay or 9 unfairness toward employees in the adjustment, settlement or 10 payment of benefits due such employees, the Commission may 11 after reasonable notice and hearing order and direct that 12 such service or adjustment company shall from and after a 13 date fixed in such order be prohibited from processing, 14 adjusting, investigating, compromising or otherwise handling 15 claims under this Act. 16 Whenever the Commission finds that any self-insured 17 employer has practiced or is practicing delay or unfairness 18 toward employees in the adjustment, settlement or payment of 19 benefits due such employees, the Commission may, after 20 reasonable notice and hearing, order and direct that after a 21 date fixed in the order such self-insured employer shall be 22 disqualified to operate as a self-insurer and shall be 23 required to insure his entire liability to pay compensation 24 in some insurance carrier authorized, licensed and permitted 25 to do such insurance business in this State, as provided in 26 subparagraph 3 of paragraph (a) of this Section. 27 All orders made by the Commission under this Section 28 shall be subject to review by the courts, said review to be 29 taken in the same manner and within the same time as provided 30 by Section 19 of this Act for review of awards and decisions 31 of the Commission, upon the party seeking the review filing 32 with the clerk of the court to which said review is taken a 33 bond in an amount to be fixed and approved by the court to 34 which the review is taken, conditioned upon the payment of HB1587 Engrossed -7- LRB9103672WHdv 1 all compensation awarded against the person taking said 2 review pending a decision thereof and further conditioned 3 upon such other obligations as the court may impose. Upon 4 the review the Circuit Court shall have power to review all 5 questions of fact as well as of law. The penalty hereinafter 6 provided for in this paragraph shall not attach and shall not 7 begin to run until the final determination of the order of 8 the Commission. 9 (d) Upon a finding by the Commission, after reasonable 10 notice and hearing, of the knowing and wilful failure of an 11 employer to comply with any of the provisions of paragraph 12 (a) of this Section or the failure or refusal of an employer, 13 service or adjustment company, or an insurance carrier to 14 comply with any order of the Industrial Commission pursuant 15 to paragraph (c) of this Section disqualifying him or her to 16 operate as a self insurer and requiring him or her to insure 17 his or her liability, the Commission may assess a civil 18 penalty of up to $500 per day for each day of such failure or 19 refusal after the effective date of this amendatory Act of 20 1989. Each day of such failure or refusal shall constitute a 21 separate offense. 22 Upon the failure or refusal of any employer, service or 23 adjustment company or insurance carrier to comply with the 24 provisions of this Section and with the orders of the 25 Commission under this Section, or the order of the court on 26 review after final adjudication, the Commission may bring a 27 civil action to recover the amount of the penalty in Cook 28 County or in Sangamon County in which litigation the 29 Commission shall be represented by the Attorney General. The 30 Commission shall send notice of its finding of non-compliance 31 and assessment of the civil penalty to the Attorney General. 32 It shall be the duty of the Attorney General within 30 days 33 after receipt of the notice, to institute prosecutions and 34 promptly prosecute all reported violations of this Section. HB1587 Engrossed -8- LRB9103672WHdv 1 (e) This Act shall not affect or disturb the continuance 2 of any existing insurance, mutual aid, benefit, or relief 3 association or department, whether maintained in whole or in 4 part by the employer or whether maintained by the employees, 5 the payment of benefits of such association or department 6 being guaranteed by the employer or by some person, firm or 7 corporation for him or her: Provided, the employer 8 contributes to such association or department an amount not 9 less than the full compensation herein provided, exclusive of 10 the cost of the maintenance of such association or department 11 and without any expense to the employee. This Act shall not 12 prevent the organization and maintaining under the insurance 13 laws of this State of any benefit or insurance company for 14 the purpose of insuring against the compensation provided for 15 in this Act, the expense of which is maintained by the 16 employer. This Act shall not prevent the organization or 17 maintaining under the insurance laws of this State of any 18 voluntary mutual aid, benefit or relief association among 19 employees for the payment of additional accident or sick 20 benefits. 21 (f) No existing insurance, mutual aid, benefit or relief 22 association or department shall, by reason of anything herein 23 contained, be authorized to discontinue its operation without 24 first discharging its obligations to any and all persons 25 carrying insurance in the same or entitled to relief or 26 benefits therein. 27 (g) Any contract, oral, written or implied, of 28 employment providing for relief benefit, or insurance or any 29 other device whereby the employee is required to pay any 30 premium or premiums for insurance against the compensation 31 provided for in this Act shall be null and void. Any 32 employer withholding from the wages of any employee any 33 amount for the purpose of paying any such premium shall be 34 guilty of a Class B misdemeanor. HB1587 Engrossed -9- LRB9103672WHdv 1 In the event the employer does not pay the compensation 2 for which he or she is liable, then an insurance company, 3 association or insurer which may have insured such employer 4 against such liability shall become primarily liable to pay 5 to the employee, his or her personal representative or 6 beneficiary the compensation required by the provisions of 7 this Act to be paid by such employer. The insurance carrier 8 may be made a party to the proceedings in which the employer 9 is a party and an award may be entered jointly against the 10 employer and the insurance carrier. 11 (h) It shall be unlawful for any employer, insurance 12 company or service or adjustment company to interfere with, 13 restrain or coerce an employee in any manner whatsoever in 14 the exercise of the rights or remedies granted to him or her 15 by this Act or to discriminate, attempt to discriminate, or 16 threaten to discriminate against an employee in any way 17 because of his or her exercise of the rights or remedies 18 granted to him or her by this Act. 19 It shall be unlawful for any employer, individually or 20 through any insurance company or service or adjustment 21 company, to discharge or to threaten to discharge, or to 22 refuse to rehire or recall to active service in a suitable 23 capacity an employee because of the exercise of his or her 24 rights or remedies granted to him or her by this Act. 25 (i) If an employer elects to obtain a life insurance 26 policy on his employees, he may also elect to apply such 27 benefits in satisfaction of all or a portion of the death 28 benefits payable under this Act, in which case, the 29 employer's compensation premium shall be reduced accordingly. 30 (j) Within 45 days of receipt of an initial application 31 or application to renew self-insurance privileges the 32 Self-Insurers Advisory Board shall review and submit for 33 approval by the Chairman of the Commission recommendations of 34 disposition of all initial applications to self-insure and HB1587 Engrossed -10- LRB9103672WHdv 1 all applications to renew self-insurance privileges filed by 2 private self-insurers pursuant to the provisions of this 3 Section and Section 4a-9 of this Act. Each private 4 self-insurer shall submit with its initial and renewal 5 applications the application fee required by Section 4a-4 of 6 this Act. 7 The Chairman of the Commission shall promptly act upon 8 all initial applications and applications for renewal in full 9 accordance with the recommendations of the Board or, should 10 the Chairman disagree with any recommendation of disposition 11 of the Self-Insurer's Advisory Board, he shall within 30 days 12 of receipt of such recommendation provide to the Board in 13 writing the reasons supporting his decision. The Chairman 14 shall also promptly notify the employer of his decision 15 within 15 days of receipt of the recommendation of the Board. 16 If an employer is denied a renewal of self-insurance 17 privileges pursuant to application it shall retain said 18 privilege for 120 days after receipt of a notice of 19 cancellation of the privilege from the Chairman of the 20 Commission. 21 All orders made by the Chairman under this Section shall 22 be subject to review by the courts, such review to be taken 23 in the same manner and within the same time as provided by 24 subsection (f) of Section 19 of this Act for review of awards 25 and decisions of the Commission, upon the party seeking the 26 review filing with the clerk of the court to which such 27 review is taken a bond in an amount to be fixed and approved 28 by the court to which the review is taken, conditioned upon 29 the payment of all compensation awarded against the person 30 taking such review pending a decision thereof and further 31 conditioned upon such other obligations as the court may 32 impose. Upon the review the Circuit Court shall have power 33 to review all questions of fact as well as of law. 34 (Source: P.A. 90-109, eff. 1-1-98.) HB1587 Engrossed -11- LRB9103672WHdv 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, including but not limited to 5 general contractors and their subcontractors, required by the 6 terms of this Act or by election to pay the compensation 7 provided for in this Act shall: 8 (1) File with the Commission an application for 9 approval as a self-insurer which shall include a current 10 financial statement. The application and financial 11 statement shall be signed and sworn to by the president 12 or vice-president and secretary or assistant secretary of 13 the employer if it be a corporation, or by all of the 14 partners if it be a copartnership, or by the owner if it 15 be neither a copartnership nor a corporation. 16 If the sworn application and financial statement of 17 any such employer does not satisfy the Commission of the 18 financial ability of the employer who has filed it, the 19 Commission shall require such employer to: 20 (2) Furnish security, indemnity or a bond 21 guaranteeing the payment by the employer of the 22 compensation provided for in this Act, provided that any 23 such employer who shall have secured his or her liability 24 in part by excess liability coverage shall be required to 25 furnish to the Commission security, indemnity or bond 26 guaranteeing his or her payment up to the amount of the 27 effective limits of the excess coverage in accordance 28 with the provisions of this paragraph, or 29 (3) Insure his or her entire liability to pay such 30 compensation in some insurance carrier authorized, 31 licensed or permitted to do such insurance business in 32 this State. All policies of such insurance carriers 33 insuring the payment of compensation under this Act shall HB1587 Engrossed -12- LRB9103672WHdv 1 cover all the employees and all such employer's 2 compensation liability in all cases in which the last day 3 of the last exposure to the occupational disease involved 4 is within the effective period of the policy, anything to 5 the contrary in the policy notwithstanding. Provided, 6 however, that any employer may insure his or her 7 compensation liability under this Act with 2 or more 8 insurance carriers or may insure a part and qualify under 9 Subsection 1, 2, or 4 for the remainder of his liability 10 to pay such compensation, subject to the following two 11 provisions: 12 Firstly, the entire liability of the employer 13 to employees working at or from one location shall 14 be insured in one such insurance carrier or shall be 15 self-insured. 16 Secondly, the employer shall submit evidence 17 satisfactory to the Commission that his or her 18 entire liability for the compensation provided for 19 in this Act will be secured. 20 Any provision in a policy or in any endorsement 21 attached thereto attempting to limit or modify in any way 22 the liability of the insurance carrier issuing the same, 23 except as otherwise provided herein, shall be wholly 24 void. 25 The insurance or security in force to cover 26 compensation liability under this Act shall be separate 27 and distinct from the insurance or security under the 28 "Workers' Compensation Act" and any insurance contract 29 covering liability under either Act need not cover any 30 liability under the other. Nothing herein contained 31 shall apply to policies of excess liability carriage 32 secured by employers who have been approved by the 33 Commission as self-insurers, or 34 (4) Make some other provision, satisfactory to the HB1587 Engrossed -13- LRB9103672WHdv 1 Commission, for the securing of the payment of 2 compensation provided for in this Act, and 3 (5) Upon becoming subject to this Act and 4 thereafter as often as the Commission may in writing 5 demand, file with the Commission in form prescribed by it 6 evidence of his or her compliance with the provision of 7 this Section. 8 (a-1) Regardless of its state of domicile or its 9 principal place of business, an employer shall make payments 10 to its insurance carrier or group self-insurance fund, where 11 applicable, based upon the premium rates of the situs where 12 the work or project is located in Illinois if: 13 (A) the employer is engaged primarily in the 14 building and construction industry; and 15 (B) subdivision (a)(3) of this Section applies to 16 the employer or the employer is a member of a group 17 self-insurance plan as defined in subsection (1) of 18 Section 4a. 19 The Industrial Commission shall impose a penalty upon an 20 employer for violation of this subsection (a-1) if: 21 (i) the employer is given an opportunity at a 22 hearing to present evidence of its compliance with this 23 subsection (a-1); and 24 (ii) after the hearing, the Commission finds that 25 the employer failed to make payments upon the premium 26 rates of the situs where the work or project is located 27 in Illinois. 28 The penalty shall not exceed $1,000 for each day of work 29 for which the employer failed to make payments upon the 30 premium rates of the situs where the work or project is 31 located in Illinois, but the total penalty shall not exceed 32 $50,000 for each project or each contract under which the 33 work was performed. 34 Any penalty under this subsection (a-1) must be imposed HB1587 Engrossed -14- LRB9103672WHdv 1 not later than one year after the expiration of the 2 applicable limitation period specified in subsection (c) of 3 Section 6 of this Act. Penalties imposed under this 4 subsection (a-1) shall be deposited into the Industrial 5 Commission Operations Fund created under Section 4 of the 6 Workers' Compensation Act. 7 (b) The sworn application and financial statement, or 8 security, indemnity or bond, or amount of insurance, or other 9 provisions, filed, furnished, carried, or made by the 10 employer, as the case may be, shall be subject to the 11 approval of the Commission. 12 Deposits under escrow agreements shall be cash, 13 negotiable United States government bonds or negotiable 14 general obligation bonds of the State of Illinois. Such cash 15 or bonds shall be deposited in escrow with any State or 16 National Bank or Trust Company having trust authority in the 17 State of Illinois. 18 Upon the approval of the sworn application and financial 19 statement, security, indemnity or bond or amount of 20 insurance, filed, furnished, or carried, as the case may be, 21 the Commission shall send to the employer written notice of 22 its approval thereof. Said certificate of compliance by the 23 employer with the provisions of subparagraphs (2) and (3) of 24 paragraph (a) of this Section shall be delivered by the 25 insurance carrier to the Industrial Commission within 5 days 26 after the effective date of the policy so certified. The 27 insurance so certified shall cover all compensation liability 28 occurring during the time that the insurance is in effect and 29 no further certificate need be filed in case such insurance 30 is renewed, extended or otherwise continued by such carrier. 31 The insurance so certified shall not be cancelled or in the 32 event that such insurance is not renewed, extended or 33 otherwise continued, such insurance shall not be terminated 34 until at least 10 days after receipt by the Industrial HB1587 Engrossed -15- LRB9103672WHdv 1 Commission of notice of the cancellation or termination of 2 said insurance; provided, however, that if the employer has 3 secured insurance from another insurance carrier, or has 4 otherwise secured the payment of compensation in accordance 5 with this Section, and such insurance or other security 6 becomes effective prior to the expiration of said 10 days, 7 cancellation or termination may, at the option of the 8 insurance carrier indicated in such notice, be effective as 9 of the effective date of such other insurance or security. 10 (c) Whenever the Commission shall find that any 11 corporation, company, association, aggregation of 12 individuals, reciprocal or interinsurers exchange, or other 13 insurer effecting workers' occupational disease compensation 14 insurance in this State shall be insolvent, financially 15 unsound, or unable to fully meet all payments and liabilities 16 assumed or to be assumed for compensation insurance in this 17 State, or shall practice a policy of delay or unfairness 18 toward employees in the adjustment, settlement, or payment of 19 benefits due such employees, the Commission may after 20 reasonable notice and hearing order and direct that such 21 corporation, company, association, aggregation of 22 individuals, reciprocal or interinsurers exchange, or 23 insurer, shall from and after a date fixed in such order 24 discontinue the writing of any such workers' occupational 25 disease compensation insurance in this State. It shall 26 thereupon be unlawful for any such corporation, company, 27 association, aggregation of individuals, reciprocal or 28 interinsurers exchange, or insurer to effect any workers' 29 occupational disease compensation insurance in this State. A 30 copy of the order shall be served upon the Director of 31 Insurance by registered mail. Whenever the Commission finds 32 that any service or adjustment company used or employed by a 33 self-insured employer or by an insurance carrier to process, 34 adjust, investigate, compromise or otherwise handle claims HB1587 Engrossed -16- LRB9103672WHdv 1 under this Act, has practiced or is practicing a policy of 2 delay or unfairness toward employees in the adjustment, 3 settlement or payment of benefits due such employees, the 4 Commission may after reasonable notice and hearing order and 5 direct that such service or adjustment company shall from and 6 after a date fixed in such order be prohibited from 7 processing, adjusting, investigating, compromising or 8 otherwise handling claims under this Act. 9 Whenever the Commission finds that any self-insured 10 employer has practiced or is practicing delay or unfairness 11 toward employees in the adjustment, settlement or payment of 12 benefits due such employees, the Commission may after 13 reasonable notice and hearing order and direct that after a 14 date fixed in the order such self-insured employer shall be 15 disqualified to operate as a self-insurer and shall be 16 required to insure his entire liability to pay compensation 17 in some insurance carrier authorized, licensed and permitted 18 to do such insurance business in this State as provided in 19 subparagraph (3) of paragraph (a) of this Section. 20 All orders made by the Commission under this Section 21 shall be subject to review by the courts, the review to be 22 taken in the same manner and within the same time as provided 23 by Section 19 of this Act for review of awards and decisions 24 of the Commission, upon the party seeking the review filing 25 with the clerk of the court to which said review is taken a 26 bond in an amount to be fixed and approved by the court to 27 which said review is taken, conditioned upon the payment of 28 all compensation awarded against the person taking the review 29 pending a decision thereof and further conditioned upon such 30 other obligations as the court may impose. Upon the review 31 the Circuit Court shall have power to review all questions of 32 fact as well as of law. The penalty hereinafter provided for 33 in this paragraph shall not attach and shall not begin to run 34 until the final determination of the order of the Commission. HB1587 Engrossed -17- LRB9103672WHdv 1 (d) Upon a finding by the Commission, after reasonable 2 notice and hearing, of the knowing and wilful failure of an 3 employer to comply with any of the provisions of paragraph 4 (a) of this Section or the failure or refusal of an employer, 5 service or adjustment company, or insurance carrier to comply 6 with any order of the Industrial Commission pursuant to 7 paragraph (c) of this Section the Commission may assess a 8 civil penalty of up to $500 per day for each day of such 9 failure or refusal after the effective date of this 10 amendatory Act of 1989. Each day of such failure or refusal 11 shall constitute a separate offense. 12 Upon the failure or refusal of any employer, service or 13 adjustment company or insurance carrier to comply with the 14 provisions of this Section and orders of the Commission under 15 this Section, or the order of the court on review after final 16 adjudication, the Commission may bring a civil action to 17 recover the amount of the penalty in Cook County or in 18 Sangamon County in which litigation the Commission shall be 19 represented by the Attorney General. The Commission shall 20 send notice of its finding of non-compliance and assessment 21 of the civil penalty to the Attorney General. It shall be 22 the duty of the Attorney General within 30 days after receipt 23 of the notice, to institute prosecutions and promptly 24 prosecute all reported violations of this Section. 25 (e) This Act shall not affect or disturb the continuance 26 of any existing insurance, mutual aid, benefit, or relief 27 association or department, whether maintained in whole or in 28 part by the employer or whether maintained by the employees, 29 the payment of benefits of such association or department 30 being guaranteed by the employer or by some person, firm or 31 corporation for him or her: Provided, the employer 32 contributes to such association or department an amount not 33 less than the full compensation herein provided, exclusive of 34 the cost of the maintenance of such association or department HB1587 Engrossed -18- LRB9103672WHdv 1 and without any expense to the employee. This Act shall not 2 prevent the organization and maintaining under the insurance 3 laws of this State of any benefit or insurance company for 4 the purpose of insuring against the compensation provided for 5 in this Act, the expense of which is maintained by the 6 employer. This Act shall not prevent the organization or 7 maintaining under the insurance laws of this State of any 8 voluntary mutual aid, benefit or relief association among 9 employees for the payment of additional accident or sick 10 benefits. 11 (f) No existing insurance, mutual aid, benefit or relief 12 association or department shall, by reason of anything herein 13 contained, be authorized to discontinue its operation without 14 first discharging its obligations to any and all persons 15 carrying insurance in the same or entitled to relief or 16 benefits therein. 17 (g) Any contract, oral, written or implied, of 18 employment providing for relief benefit, or insurance or any 19 other device whereby the employee is required to pay any 20 premium or premiums for insurance against the compensation 21 provided for in this Act shall be null and void. Any 22 employer withholding from the wages of any employee any 23 amount for the purpose of paying any such premium shall be 24 guilty of a Class B misdemeanor. 25 In the event the employer does not pay the compensation 26 for which he or she is liable, then an insurance company, 27 association or insurer which may have insured such employer 28 against such liability shall become primarily liable to pay 29 to the employee, his personal representative or beneficiary 30 the compensation required by the provisions of this Act to be 31 paid by such employer. The insurance carrier may be made a 32 party to the proceedings in which the employer is a party and 33 an award may be entered jointly against the employer and the 34 insurance carrier. HB1587 Engrossed -19- LRB9103672WHdv 1 (h) It shall be unlawful for any employer, insurance 2 company or service or adjustment company to interfere with, 3 restrain or coerce an employee in any manner whatsoever in 4 the exercise of the rights or remedies granted to him or her 5 by this Act or to discriminate, attempt to discriminate, or 6 threaten to discriminate against an employee in any way 7 because of his exercise of the rights or remedies granted to 8 him by this Act. 9 It shall be unlawful for any employer, individually or 10 through any insurance company or service or adjustment 11 company, to discharge or to threaten to discharge, or to 12 refuse to rehire or recall to active service in a suitable 13 capacity an employee because of the exercise of his or her 14 rights or remedies granted to him or her by this Act. 15 (i) If an employer elects to obtain a life insurance 16 policy on his employees, he may also elect to apply such 17 benefits in satisfaction of all or a portion of the death 18 benefits payable under this Act, in which case, the 19 employer's premium for coverage for benefits under this Act 20 shall be reduced accordingly. 21 (Source: P.A. 90-109, eff. 1-1-98.)