(820 ILCS 310/1) (from Ch. 48,
par. 172.36)
(Text of Section from P.A. 93-721)
Sec. 1. This Act shall be known
and may be cited as the "Workers' Occupational Diseases Act".
(a) The term "employer" as
used in this Act shall be construed to be:
1. The State and each county, city,
town, township, incorporated village, school district, body politic,
or municipal corporation therein.
2. Every person, firm, public or
private corporation, including hospitals, public service, eleemosynary,
religious or charitable corporations or associations, who has any
person in service or under any contract for hire, express or implied,
oral or written.
3. Where an employer operating
under and subject to the provisions of this Act loans an employee
to another such employer and such loaned employee sustains a compensable
occupational disease in the employment of such borrowing employer
and where such borrowing employer does not provide or pay the benefits
or payments due such employee, such loaning employer shall be liable
to provide or pay all benefits or payments due such employee under
this Act and as to such employee the liability of such loaning
and borrowing employers shall be joint and several, provided that
such loaning employer shall in the absence of agreement to the
contrary be entitled to receive from such borrowing employer full
reimbursement for all sums paid or incurred pursuant to this paragraph
together with reasonable attorneys' fees and expenses in any hearings
before the Illinois Workers' Compensation Commission or in any
action to secure such reimbursement. Where any benefit is provided
or paid by such loaning employer, the employee shall have the duty
of rendering reasonable co-operation in any hearings, trials
or proceedings in the case, including such proceedings for reimbursement.
Where an employee files an Application
for Adjustment of Claim with the Illinois Workers' Compensation
Commission alleging that his or her claim is covered by the provisions
of the preceding paragraph, and joining both the alleged loaning
and borrowing employers, they and each of them, upon written demand
by the employee and within 7 days after receipt of such demand,
shall have the duty of filing with the Illinois Workers' Compensation
Commission a written admission or denial of the allegation that
the claim is covered by the provisions of the preceding paragraph
and in default of such filing or if any such denial be ultimately
determined not to have been bona fide then the provisions of Paragraph
K of Section 19 of this Act shall apply.
An employer whose business or enterprise
or a substantial part thereof consists of hiring, procuring or
furnishing employees to or for other employers operating under
and subject to the provisions of this Act for the performance of
the work of such other employers and who pays such employees their
salary or wage notwithstanding that they are doing the work of
such other employers shall be deemed a loaning employer within
the meaning and provisions of this Section.
(b) The term "employee" as
used in this Act, shall be construed to mean:
1. Every person in the service
of the State, county, city, town, township, incorporated village
or school district, body politic or municipal corporation therein,
whether by election, appointment or contract of hire, express or
implied, oral or written, including any official of the State,
or of any county, city, town, township, incorporated village, school
district, body politic or municipal corporation therein and except
any duly appointed member of the fire department in any city whose
population exceeds 500,000 according to the last Federal or State
census, and except any member of a fire insurance patrol maintained
by a board of underwriters in this State. One employed by a contractor
who has contracted with the State, or a county, city, town, township,
incorporated village, school district, body politic or municipal
corporation therein, through its representatives, shall not be
considered as an employee of the State, county, city, town, township,
incorporated village, school district, body politic or municipal
corporation which made the contract.
2. Every person in the service
of another under any contract of hire, express or implied, oral
or written, who contracts an occupational disease while working
in the State of Illinois, or who contracts an occupational disease
while working outside of the State of Illinois but where the contract
of hire is made within the State of Illinois, and any person whose
employment is principally localized within the State of Illinois,
regardless of the place where the disease was contracted or place
where the contract of hire was made, including aliens, and minors
who, for the purpose of this Act, except Section 3 hereof, shall
be considered the same and have the same power to contract, receive
payments and give quittances therefor, as adult employees. An employee
or his or her dependents under this Act who shall have a cause
of action by reason of an occupational disease, disablement or
death arising out of and in the course of his or her employment
may elect or pursue his or her remedy in the State where the disease
was contracted, or in the State where the contract of hire is made,
or in the State where the employment is principally localized.
(c) "Commission" means
the Illinois Workers' Compensation Commission created by the Workers'
Compensation Act, approved July 9, 1951,
as amended.
(d) In this Act the term "Occupational
Disease" means a disease arising out of and in the course
of the employment or which has become aggravated and rendered disabling
as a result of the exposure of the employment. Such aggravation
shall arise out of a risk peculiar to or increased by the employment
and not common to the general public.
A disease shall be deemed to arise
out of the employment if there is apparent to the rational mind,
upon consideration of all the circumstances, a causal connection
between the conditions under which the work is performed and the
occupational disease. The disease need not to have been foreseen
or expected but after its contraction it must appear to have had
its origin or aggravation in a risk connected with the employment
and to have flowed from that source as a rational consequence.
An employee shall be conclusively
deemed to have been exposed to the hazards of an occupational disease
when, for any length of time however short, he or she is employed
in an occupation or process in which the hazard of the disease
exists; provided however, that in a claim of exposure to atomic
radiation, the fact of such exposure must be verified by the records
of the central registry of radiation exposure maintained by the
Department of Public Health or by some other recognized governmental
agency maintaining records of such exposures whenever and to the
extent that the records are on file with the Department of Public
Health or the agency.
The employer liable for the compensation
in this Act provided shall be the employer in whose employment
the employee was last exposed to the hazard of the occupational
disease claimed upon regardless of the length of time of such last
exposure, except, in cases of silicosis or asbestosis, the only
employer liable shall be the last employer in whose employment
the employee was last exposed during a period of 60 days or more
after the effective date of this Act, to the hazard of such occupational
disease, and, in such cases, an exposure during a period of less
than 60 days, after the effective date of this Act, shall not be
deemed a last exposure. If a miner who is suffering or suffered
from pneumoconiosis was employed for 10 years or more in one or
more coal mines there shall, effective July 1, 1973 be
a rebuttable presumption that his or her pneumoconiosis arose out
of such employment.
If a deceased miner was employed
for 10 years or more in one or more coal mines and died from a
respirable disease there shall, effective July 1, 1973,
be a rebuttable presumption that his or her death was due to pneumoconiosis.
The insurance carrier liable shall
be the carrier whose policy was in effect covering the employer
liable on the last day of the exposure rendering such employer
liable in accordance with the provisions of this Act.
(e) "Disablement" means
an impairment or partial impairment, temporary or permanent, in
the function of the body or any of the members of the body, or
the event of becoming disabled from earning full wages at the work
in which the employee was engaged when last exposed to the hazards
of the occupational disease by the employer from whom he or she
claims compensation, or equal wages in other suitable employment;
and "disability" means the state of being so incapacitated.
(f) No compensation shall be payable
for or on account of any occupational disease unless disablement,
as herein defined, occurs within two years after the last day of
the last exposure to the hazards of the disease, except in cases
of occupational disease caused by berylliosis or by the inhalation
of silica dust or asbestos dust and, in such cases, within 3 years
after the last day of the last exposure to the hazards of such
disease and except in the case of occupational disease caused by
exposure to radiological materials or equipment, and in such case,
within 25 years after the last day of last exposure to the hazards
of such disease.
(Source: P.A. 93-721, eff. 1-1-05.)
(Text of Section from P.A. 93-829)
Sec. 1. This Act shall be known
and may be cited as the "Workers' Occupational Diseases Act".
(a) The term "employer" as
used in this Act shall be construed to be:
1. The State and each county, city,
town, township, incorporated village, school district, body politic,
or municipal corporation therein.
2. Every person, firm, public or
private corporation, including hospitals, public service, eleemosynary,
religious or charitable corporations or associations, who has any
person in service or under any contract for hire, express or implied,
oral or written.
3. Where an employer operating
under and subject to the provisions of this Act loans an employee
to another such employer and such loaned employee sustains a compensable
occupational disease in the employment of such borrowing employer
and where such borrowing employer does not provide or pay the benefits
or payments due such employee, such loaning employer shall be liable
to provide or pay all benefits or payments due such employee under
this Act and as to such employee the liability of such loaning
and borrowing employers shall be joint and several, provided that
such loaning employer shall in the absence of agreement to the
contrary be entitled to receive from such borrowing employer full
reimbursement for all sums paid or incurred pursuant to this paragraph
together with reasonable attorneys' fees and expenses in any hearings
before the Industrial Commission or in any action to secure such
reimbursement. Where any benefit is provided or paid by such loaning
employer, the employee shall have the duty of rendering reasonable
co-operation in any hearings, trials or proceedings in the
case, including such proceedings for reimbursement.
Where an employee files an Application
for Adjustment of Claim with the Industrial Commission alleging
that his or her claim is covered by the provisions of the preceding
paragraph, and joining both the alleged loaning and borrowing employers,
they and each of them, upon written demand by the employee and
within 7 days after receipt of such demand, shall have the duty
of filing with the Industrial Commission a written admission or
denial of the allegation that the claim is covered by the provisions
of the preceding paragraph and in default of such filing or if
any such denial be ultimately determined not to have been bona
fide then the provisions of Paragraph K of Section 19 of this Act
shall apply.
An employer whose business or enterprise
or a substantial part thereof consists of hiring, procuring or
furnishing employees to or for other employers operating under
and subject to the provisions of this Act for the performance of
the work of such other employers and who pays such employees their
salary or wage notwithstanding that they are doing the work of
such other employers shall be deemed a loaning employer within
the meaning and provisions of this Section.
(b) The term "employee" as
used in this Act, shall be construed to mean:
1. Every person in the service
of the State, county, city, town, township, incorporated village
or school district, body politic or municipal corporation therein,
whether by election, appointment or contract of hire, express or
implied, oral or written, including any official of the State,
or of any county, city, town, township, incorporated village, school
district, body politic or municipal corporation therein and except
any duly appointed member of the fire department in any city whose
population exceeds 500,000 according to the last Federal or State
census, and except any member of a fire insurance patrol maintained
by a board of underwriters in this State. One employed by a contractor
who has contracted with the State, or a county, city, town, township,
incorporated village, school district, body politic or municipal
corporation therein, through its representatives, shall not be
considered as an employee of the State, county, city, town, township,
incorporated village, school district, body politic or municipal
corporation which made the contract.
2. Every person in the service
of another under any contract of hire, express or implied, oral
or written, who contracts an occupational disease while working
in the State of Illinois, or who contracts an occupational disease
while working outside of the State of Illinois but where the contract
of hire is made within the State of Illinois, and any person whose
employment is principally localized within the State of Illinois,
regardless of the place where the disease was contracted or place
where the contract of hire was made, including aliens, and minors
who, for the purpose of this Act, except Section 3 hereof, shall
be considered the same and have the same power to contract, receive
payments and give quittances therefor, as adult employees. An employee
or his or her dependents under this Act who shall have a cause
of action by reason of an occupational disease, disablement or
death arising out of and in the course of his or her employment
may elect or pursue his or her remedy in the State where the disease
was contracted, or in the State where the contract of hire is made,
or in the State where the employment is principally localized.
(c) "Commission" means
the Industrial Commission created by the Workers' Compensation
Act, approved July 9, 1951,
as amended.
(d) In this Act the term "Occupational
Disease" means a disease arising out of and in the course
of the employment or which has become aggravated and rendered disabling
as a result of the exposure of the employment. Such aggravation
shall arise out of a risk peculiar to or increased by the employment
and not common to the general public.
A disease shall be deemed to arise
out of the employment if there is apparent to the rational mind,
upon consideration of all the circumstances, a causal connection
between the conditions under which the work is performed and the
occupational disease. The disease need not to have been foreseen
or expected but after its contraction it must appear to have had
its origin or aggravation in a risk connected with the employment
and to have flowed from that source as a rational consequence.
An employee shall be conclusively
deemed to have been exposed to the hazards of an occupational disease
when, for any length of time however short, he or she is employed
in an occupation or process in which the hazard of the disease
exists; provided however, that in a claim of exposure to atomic
radiation, the fact of such exposure must be verified by the records
of the central registry of radiation exposure maintained by the
Department of Public Health or by some other recognized governmental
agency maintaining records of such exposures whenever and to the
extent that the records are on file with the Department of Public
Health or the agency.
Any injury to or disease or death
of an employee arising from the administration of a vaccine, including
without limitation smallpox vaccine, to prepare for, or as a response
to, a threatened or potential bioterrorist incident to the employee
as part of a voluntary inoculation program in connection with the
person's employment or in connection with any governmental program
or recommendation for the inoculation of workers in the employee's
occupation, geographical area, or other category that includes
the employee is deemed to arise out of and in the course of the
employment for all purposes under this Act. This paragraph added
by this amendatory Act of the 93rd General Assembly is declarative
of existing law and is not a new enactment.
The employer liable for the compensation
in this Act provided shall be the employer in whose employment
the employee was last exposed to the hazard of the occupational
disease claimed upon regardless of the length of time of such last
exposure, except, in cases of silicosis or asbestosis, the only
employer liable shall be the last employer in whose employment
the employee was last exposed during a period of 60 days or more
after the effective date of this Act, to the hazard of such occupational
disease, and, in such cases, an exposure during a period of less
than 60 days, after the effective date of this Act, shall not be
deemed a last exposure. If a miner who is suffering or suffered
from pneumoconiosis was employed for 10 years or more in one or
more coal mines there shall, effective July 1, 1973 be
a rebuttable presumption that his or her pneumoconiosis arose out
of such employment.
If a deceased miner was employed
for 10 years or more in one or more coal mines and died from a
respirable disease there shall, effective July 1, 1973, be a rebuttable
presumption that his or her death was due to pneumoconiosis.
The insurance carrier liable shall
be the carrier whose policy was in effect covering the employer
liable on the last day of the exposure rendering such employer
liable in accordance with the provisions of this Act.
(e) "Disablement" means
an impairment or partial impairment, temporary or permanent, in
the function of the body or any of the members of the body, or
the event of becoming disabled from earning full wages at the work
in which the employee was engaged when last exposed to the hazards
of the occupational disease by the employer from whom he or she
claims compensation, or equal wages in other suitable employment;
and "disability" means the state of being so incapacitated.
(f) No compensation shall be payable
for or on account of any occupational disease unless disablement,
as herein defined, occurs within two years after the last day of
the last exposure to the hazards of the disease, except in cases
of occupational disease caused by berylliosis or by the inhalation
of silica dust or asbestos dust and, in such cases, within 3 years
after the last day of the last exposure to the hazards of such
disease and except in the case of occupational disease caused by
exposure to radiological materials or equipment, and in such case,
within 25 years after the last day of last exposure to the hazards
of such disease.
(Source: P.A. 93-829, eff. 7-28-04.)
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(820 ILCS 310/2) (from Ch. 48, par. 172.37)
Sec. 2. (a) Where any employer
in this State is automatically and without election subject
to and bound by the provisions of the Workers' Compensation
Act by reason of the provisions of Section 3 thereof, as
heretofore or hereafter amended, then such employer and all
of his employees working within this State shall be automatically
and without election subject to and bound by the compensation
provisions of this Act with respect to all cases in which
the last day of the last exposure to the hazards of the disease
claimed upon shall have been on or after July 1, 1957. However,
nothing contained in this Act shall be construed to apply
to any business, enterprise, household or residence which
is exempt from the compensation provisions of the Workers'
Compensation Act under paragraphs 17, 18 and 19 of Section
3 of that Act.
(b) Any employer in this State
who does not come within the classes enumerated by Section 2 (a)
of this Act may elect to provide and pay compensation according
to the provisions of this Act, for disability or death resulting
from occupational diseases, and such election, when effective,
shall apply to all cases in which the last day of the last exposure
as defined in this Act to the hazards of the occupational disease
claimed upon shall have occurred on or after the effective date
of such election, and shall relieve such employer of all liability
under Section 3 of this Act and all other liability with respect
to injury to health or death therefrom by reason of any disease
contracted or sustained in the course of the employment. The State
of Illinois hereby elects to provide and pay compensation according
to the provisions of this Act.
(c) Election by any employer, pursuant
to paragraph (b) of this Section shall be made by filing notice
of such election with the Illinois Workers' Compensation Commission
or by insuring his liability to pay compensation under this Act
in some insurance carrier authorized, licensed or permitted to
do such insurance business in this State. Such employer shall either
furnish to his employees personally or post in a conspicuous place
in the place of employment notice of his election.
(d) Every employer who has elected
pursuant to paragraphs (b) and (c) of this section to provide and
pay compensation shall, from and after the effective date of such
election be and operate under all provisions of this Act except
Section 3 hereof, with respect to all his employees except those
who have rejected in due time as provided in paragraph (e). Any
employer having elected, prior to October 1, 1941, not to provide
and pay compensation may at any time thereafter again elect pursuant
to paragraphs (b) and (c) to provide and pay compensation, but
having thus elected for the second time to provide and pay compensation
such employer shall, from and after the effective date of such
last said election, be and operate under all provisions of this
Act, except Section 3 hereof, with respect to all employees except
those who have rejected in due time as provided in paragraph (e)
of this section.
(e) If any employer elects, pursuant
to paragraph (b) and (c) of this section, then every employee of
such employer, who may be employed at the time of such election
by such employer, shall be deemed to have accepted all the compensation
provisions of this Act and shall be bound thereby unless within
30 days after such election he shall file a notice to the contrary
with the Commission whose duty it shall be immediately to notify
the employer, and until such notice is given to the employer, the
measure of liability of such employer shall be determined according
to the compensation provisions of this Act; and every employee
of such employer, hired after such employer's election, as a part
of his contract of hiring shall be deemed to have accepted all
of the compensation provisions of this Act, and shall have no right
of rejection.
(f) Every employer within the provisions
of this Act who has elected to provide any pay compensation according
to the provisions of this Act by filing notice of such election
with the Commission, shall be bound thereby as to all his employees
until January 1st of the next succeeding year and for terms of
each year thereafter.
Any such employer who may have
once elected, may elect not to provide and pay the compensation
herein provided for accidents resulting in either injury or death
and occurring after the expiration of any such calendar year by
filing notice of such election with the Commission at least 60
days prior to the expiration of any such calendar year, and by
posting such notice at a conspicuous place in the plant, shop,
office, room or place where such employee is employed, or by personal
service, in written or printed form, upon such employees, at least
60 days prior to the expiration of any such calendar year.
Every employer within the provisions
of this Act who has elected to provide and pay compensation according
to the provisions of this Act by insuring his liability to pay
compensation under this Act, as above provided, shall be bound
thereby as to all his employees until the date of expiration or
cancellation of such policy of insurance, or any renewal thereof.
(Source: P.A. 93-721, eff. 1-1-05.)
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(820 ILCS 310/3) (from Ch. 48, par. 172.38)
Sec. 3. Where an employee in this
State sustains injury to health or death by reason of a disease
contracted or sustained in the course of the employment and
proximately caused by the negligence of the employer, unless
such employer shall be subject to this Act under the provisions
of paragraph (a) of Section 2 of this Act or shall have elected
to provide and pay compensation as provided in Section 2
of this Act, a right of action shall accrue to the employee
whose health has been so injured for any damages sustained
thereby; and in case of death, a right of action shall accrue
to the widow or widower of such deceased person, his or her
lineal heirs or adopted children, or to any person or persons
who were, before such loss of life, dependent for support
upon such deceased person, for a like recovery of damages
for the injury sustained by reason of such death not to exceed
the sum of $10,000. Violation by any employer of any effective
rule or rules made by the Illinois Workers' Compensation
Commission pursuant to the "Health and Safety Act",
approved March 16, 1936, as amended, or violation by the
employer of any statute of this State, intended for the protection
of the health of employees shall be and constitute negligence
of the employer within the meaning of this Section. Every
such action for damage for injury to the health shall be
commenced within 3 years after the last day of the last exposure
to the hazards of the disease and every such action for damages
in case of death shall be commenced within one year after
the death of such employee and within 5 years after the last
day of the last exposure to the hazards of the disease except
where the disease is caused by atomic radiation, in which
case, every action for damages for injury to health shall
be commenced within 15 years after the last day of last exposure
to the hazard of such disease and every action for damages
in case of death shall be commenced within one year after
the death of such employee and within 15 years after last
exposure to the hazards of the disease. In any action to
recover damages under this Section, it shall not be a defense
that the employee either expressly or impliedly assumed the
risk of the employment, or that the contraction or sustaining
of the disease or death was caused in whole or in part by
the negligence of a fellow servant or fellow servants, or
that the contraction or sustaining of the disease or death
resulting was caused in whole or in part by the contributory
negligence of the employee, where such contributory negligence
was not wilful.
(Source: P.A. 93-721, eff. 1-1-05.)
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(820 ILCS 310/4) (from Ch. 48, par. 172.39)
Sec. 4. (a) Any employer, including
but not limited to general contractors and their subcontractors,
required by the terms of this Act or by election to pay the
compensation provided for in this Act shall:
(1) File
with the Commission an application for
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approval as a self-insurer which
shall include a current financial statement.
The application and financial statement shall
be signed and sworn to by the president or vice-president
and secretary or assistant secretary of the employer
if it be a corporation, or by all of the partners
if it be a copartnership, or by the owner if
it be neither a copartnership nor a corporation.
An employer may elect to provide and pay compensation
as provided for in this Act as a member of a
group workers' compensation pool under Article
V 3/4 of the Illinois Insurance Code. If an employer
becomes a member of a group workers' compensation
pool, the employer shall not be relieved of any
obligations imposed by this Act.
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If
the sworn application and financial statement of
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any such employer does not satisfy the
Commission of the financial ability of the employer
who has filed it, the Commission shall require
such employer to:
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(2)
Furnish security, indemnity or a bond
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guaranteeing the payment by the employer
of the compensation provided for in this Act,
provided that any such employer who shall have
secured his or her liability in part by excess
liability coverage shall be required to furnish
to the Commission security, indemnity or bond
guaranteeing his or her payment up to the amount
of the effective limits of the excess coverage
in accordance with the provisions of this paragraph,
or
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(3)
Insure his or her entire liability to pay such
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compensation in some insurance carrier
authorized, licensed or permitted to do such
insurance business in this State. All policies
of such insurance carriers insuring the payment
of compensation under this Act shall cover all
the employees and all such employer's compensation
liability in all cases in which the last day
of the last exposure to the occupational disease
involved is within the effective period of the
policy, anything to the contrary in the policy
notwithstanding. Provided, however, that any
employer may insure his or her compensation liability
under this Act with 2 or more insurance carriers
or may insure a part and qualify under Subsection
1, 2, or 4 for the remainder of his liability
to pay such compensation, subject to the following
two provisions:
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Firstly,
the entire liability of the employer to
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employees working at or from one location
shall be insured in one such insurance carrier
or shall be self-insured.
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Secondly,
the employer shall submit evidence
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satisfactory to the Commission that
his or her entire liability for the compensation
provided for in this Act will be secured.
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Any
provision in a policy or in any endorsement
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attached thereto attempting to limit
or modify in any way the liability of the insurance
carrier issuing the same, except as otherwise
provided herein, shall be wholly void.
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The
insurance or security in force to cover
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compensation liability under this Act
shall be separate and distinct from the insurance
or security under the "Workers' Compensation
Act" and any insurance contract covering
liability under either Act need not cover any
liability under the other. Nothing herein contained
shall apply to policies of excess liability carriage
secured by employers who have been approved by
the Commission as self-insurers, or
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(4)
Make some other provision, satisfactory to the
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Commission, for the securing of the
payment of compensation provided for in this
Act, and
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(5)
Upon becoming subject to this Act and thereafter
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as often as the Commission may in writing
demand, file with the Commission in form prescribed
by it evidence of his or her compliance with
the provision of this Section.
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(a-1) Regardless
of its state of domicile or its principal place of business,
an employer shall make payments to its insurance carrier
or group self-insurance fund, where applicable,
based upon the premium rates of the situs where the work
or project is located in Illinois if:
(A) the
employer is engaged primarily in the
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building and construction industry;
and
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(B)
subdivision (a)(3) of this Section applies to
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the employer or the employer is a member
of a group self-insurance plan as defined
in subsection (1) of Section 4a.
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The Illinois Workers'
Compensation Commission shall impose a penalty upon an
employer for violation of this subsection (a-1)
if:
(i) the
employer is given an opportunity at a
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hearing to present evidence of its compliance
with this subsection (a-1); and
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(ii)
after the hearing, the Commission finds that
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the employer failed to make payments
upon the premium rates of the situs where the
work or project is located in Illinois.
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The penalty shall
not exceed $1,000 for each day of work for which the
employer failed to make payments upon the premium rates
of the situs where the work or project is located in
Illinois, but the total penalty shall not exceed $50,000
for each project or each contract under which the work
was performed.
Any penalty under this subsection
(a-1) must be imposed not later than one year after the expiration
of the applicable limitation period specified in subsection (c) of
Section 6 of this Act. Penalties imposed under this subsection (a-1)
shall be deposited into the Illinois Workers' Compensation Commission
Operations Fund created under Section 4 of the Workers' Compensation
Act.
(b) The sworn application and financial
statement, or security, indemnity or bond, or amount of insurance,
or other provisions, filed, furnished, carried, or made by the employer,
as the case may be, shall be subject to the approval of the Commission.
Deposits under escrow agreements
shall be cash, negotiable United States government bonds or negotiable
general obligation bonds of the State of Illinois. Such cash or bonds
shall be deposited in escrow with any State or National Bank or Trust
Company having trust authority in the State of Illinois.
Upon the approval of the sworn
application and financial statement, security, indemnity or bond
or amount of insurance, filed, furnished, or carried, as the case
may be, the Commission shall send to the employer written notice
of its approval thereof. Said certificate of compliance by the employer
with the provisions of subparagraphs (2) and (3) of paragraph (a)
of this Section shall be delivered by the insurance carrier to the
Illinois Workers' Compensation Commission within 5 days after the
effective date of the policy so certified. The insurance so certified
shall cover all compensation liability occurring during the time
that the insurance is in effect and no further certificate need be
filed in case such insurance is renewed, extended or otherwise continued
by such carrier. The insurance so certified shall not be cancelled
or in the event that such insurance is not renewed, extended or otherwise
continued, such insurance shall not be terminated until at least
10 days after receipt by the Illinois Workers' Compensation Commission
of notice of the cancellation or termination of said insurance; provided,
however, that if the employer has secured insurance from another
insurance carrier, or has otherwise secured the payment of compensation
in accordance with this Section, and such insurance or other security
becomes effective prior to the expiration of said 10 days, cancellation
or termination may, at the option of the insurance carrier indicated
in such notice, be effective as of the effective date of such other
insurance or security.
(c) Whenever the Commission shall
find that any corporation, company, association, aggregation of individuals,
reciprocal or interinsurers exchange, or other insurer effecting
workers' occupational disease compensation insurance in this State
shall be insolvent, financially unsound, or unable to fully meet
all payments and liabilities assumed or to be assumed for compensation
insurance in this State, or shall practice a policy of delay or unfairness
toward employees in the adjustment, settlement, or payment of benefits
due such employees, the Commission may after reasonable notice and
hearing order and direct that such corporation, company, association,
aggregation of individuals, reciprocal or interinsurers exchange,
or insurer, shall from and after a date fixed in such order discontinue
the writing of any such workers' occupational disease compensation
insurance in this State. It shall thereupon be unlawful for any such
corporation, company, association, aggregation of individuals, reciprocal
or interinsurers exchange, or insurer to effect any workers' occupational
disease compensation insurance in this State. A copy of the order
shall be served upon the Director of Insurance by registered mail.
Whenever the Commission finds that any service or adjustment company
used or employed by a self-insured employer or by an insurance
carrier to process, adjust, investigate, compromise or otherwise
handle claims under this Act, has practiced or is practicing a policy
of delay or unfairness toward employees in the adjustment, settlement
or payment of benefits due such employees, the Commission may after
reasonable notice and hearing order and direct that such service
or adjustment company shall from and after a date fixed in such order
be prohibited from processing, adjusting, investigating, compromising
or otherwise handling claims under this Act.
Whenever the Commission finds that
any self-insured employer has practiced or is practicing delay
or unfairness toward employees in the adjustment, settlement or payment
of benefits due such employees, the Commission may after reasonable
notice and hearing order and direct that after a date fixed in the
order such self-insured employer shall be disqualified to operate
as a self-insurer and shall be required to insure his entire
liability to pay compensation in some insurance carrier authorized,
licensed and permitted to do such insurance business in this State
as provided in subparagraph (3) of paragraph (a) of this Section.
All orders made by the Commission
under this Section shall be subject to review by the courts, the
review to be taken in the same manner and within the same time as
provided by Section 19 of this Act for review of awards and decisions
of the Commission, upon the party seeking the review filing with
the clerk of the court to which said review is taken a bond in an
amount to be fixed and approved by the court to which said review
is taken, conditioned upon the payment of all compensation awarded
against the person taking the review pending a decision thereof and
further conditioned upon such other obligations as the court may
impose. Upon the review the Circuit Court shall have power to review
all questions of fact as well as of law. The penalty hereinafter
provided for in this paragraph shall not attach and shall not begin
to run until the final determination of the order of the Commission.
(d) Upon a finding by the Commission,
after reasonable notice and hearing, of the knowing and wilful failure
of an employer to comply with any of the provisions of paragraph
(a) of this Section or the failure or refusal of an employer, service
or adjustment company, or insurance carrier to comply with any order
of the Illinois Workers' Compensation Commission pursuant to paragraph
(c) of this Section the Commission may assess a civil penalty of
up to $500 per day for each day of such failure or refusal after
the effective date of this amendatory Act of 1989. Each day of such
failure or refusal shall constitute a separate offense.
Upon the failure or refusal of
any employer, service or adjustment company or insurance carrier
to comply with the provisions of this Section and orders of the Commission
under this Section, or the order of the court on review after final
adjudication, the Commission may bring a civil action to recover
the amount of the penalty in Cook County or in Sangamon County in
which litigation the Commission shall be represented by the Attorney
General. The Commission shall send notice of its finding of non-compliance
and assessment of the civil penalty to the Attorney General. It shall
be the duty of the Attorney General within 30 days after receipt
of the notice, to institute prosecutions and promptly prosecute all
reported violations of this Section.
(e) This Act shall not affect or
disturb the continuance of any existing insurance, mutual aid, benefit,
or relief association or department, whether maintained in whole
or in part by the employer or whether maintained by the employees,
the payment of benefits of such association or department being guaranteed
by the employer or by some person, firm or corporation for him or
her: Provided, the employer contributes to such association or department
an amount not less than the full compensation herein provided, exclusive
of the cost of the maintenance of such association or department
and without any expense to the employee. This Act shall not prevent
the organization and maintaining under the insurance laws of this
State of any benefit or insurance company for the purpose of insuring
against the compensation provided for in this Act, the expense of
which is maintained by the employer. This Act shall not prevent the
organization or maintaining under the insurance laws of this State
of any voluntary mutual aid, benefit or relief association among
employees for the payment of additional accident or sick benefits.
(f) No existing insurance, mutual
aid, benefit or relief association or department shall, by reason
of anything herein contained, be authorized to discontinue its operation
without first discharging its obligations to any and all persons
carrying insurance in the same or entitled to relief or benefits
therein.
(g) Any contract, oral, written
or implied, of employment providing for relief benefit, or insurance
or any other device whereby the employee is required to pay any premium
or premiums for insurance against the compensation provided for in
this Act shall be null and void. Any employer withholding from the
wages of any employee any amount for the purpose of paying any such
premium shall be guilty of a Class B misdemeanor.
In the event the employer does
not pay the compensation for which he or she is liable, then an insurance
company, association or insurer which may have insured such employer
against such liability shall become primarily liable to pay to the
employee, his personal representative or beneficiary the compensation
required by the provisions of this Act to be paid by such employer.
The insurance carrier may be made a party to the proceedings in which
the employer is a party and an award may be entered jointly against
the employer and the insurance carrier.
(h) It shall be unlawful for any
employer, insurance company or service or adjustment company to interfere
with, restrain or coerce an employee in any manner whatsoever in
the exercise of the rights or remedies granted to him or her by this
Act or to discriminate, attempt to discriminate, or threaten to discriminate
against an employee in any way because of his exercise of the rights
or remedies granted to him by this Act.
It shall be unlawful for any employer,
individually or through any insurance company or service or adjustment
company, to discharge or to threaten to discharge, or to refuse to
rehire or recall to active service in a suitable capacity an employee
because of the exercise of his or her rights or remedies granted
to him or her by this Act.
(i) If an employer elects to obtain
a life insurance policy on his employees, he may also elect to apply
such benefits in satisfaction of all or a portion of the death benefits
payable under this Act, in which case, the employer's premium for
coverage for benefits under this Act shall be reduced accordingly.
(Source: P.A. 93-721, eff. 1-1-05.)
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(820 ILCS 310/4a) (from
Ch. 48, par. 172.39a)
Sec. 4a. (Repealed).
(Source: P.A. 89-97, eff. 7-7-95. Repealed
by P.A. 91-757, eff. 1-1-01.)
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