Bill Text: IL SB1805 | 2015-2016 | 99th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Illinois Insurance Code. Provides that any insurer with less than $100,000,000 in group surplus authorized to issue workers' compensation policies with a per-occurrence deductible of $100,000 or greater shall report the outstanding obligations owed under the deductible as liabilities of the insurer, unless the obligation is fully collateralized, and limit per-occurrence deductible obligations. Effective July 1, 2015.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Passed) 2015-08-14 - Public Act . . . . . . . . . 99-0369 [SB1805 Detail]

Download: Illinois-2015-SB1805-Introduced.html

---

99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 SB1805 Introduced 2/20/2015, by Sen. William R. Haine SYNOPSIS AS INTRODUCED:
215 ILCS 5/155.44 new
Amends the Illinois Insurance Code. Provides that any insurer with less than $100,000,000 in group surplus authorized to issue workers' compensation policies with a per-occurrence deductible of $100,000 or greater shall report the outstanding obligations owed under the deductible as liabilities of the insurer, unless the obligation is fully collateralized, and limit per-occurrence deductible obligations. Effective July 1, 2015.
LRB099 09021 MLM 29204 b
A BILL FOR
SB1805 LRB099 09021 MLM 29204 b
AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by adding
Section 155.44 as follows:
(215 ILCS 5/155.44 new)
Sec. 155.44. Financial requirements; large deductible
workers' compensation policies and programs. Any insurer with
less than $100,000,000 in group surplus authorized to issue
workers' compensation policies with a per-occurrence
deductible of $100,000 or greater shall:
(1) report the outstanding obligations owed under the
deductible as liabilities of the insurer, unless the
obligation is fully collateralized using one of the
following methods:
(A) a surety bond issued by a surety insurer
authorized to transact business by the Department, and
whose financial strength and size ratings from A.M.
Best Company are not less than "A" and "V",
respectively;
(B) an irrevocable letter of credit issued by a
financial institution, with an office physically
located within the State, and the deposits of which are

SB1805 - 2 - LRB099 09021 MLM 29204 b
federally insured; or
(C) cash or securities held in trust by a third
party, and subject to a control agreement, for the
express purpose of securing the workers' compensation
claim obligations of the policyholder; and
(2) limit the size of the per-occurrence deductible
obligation assumed by the policyholder to the lesser of:
(A) 20% of the full policy premium value prior to
application deductible discounts or credits for that
policyholder; or
(B) 10% of the total accounting net worth of the
policyholder at each policy inception.
Section 99. Effective date. This Act takes effect July 1,
2015.