The Illinois Workers' Compensation Act (820 ILCS 305) is administered by the Illinois Workers' Compensation Commission, which hears claims (820 ILCS 305/13). The Department of Insurance regulates workers' comp insurers, rates and the assigned risk plan. The national guide covers the general concepts: the exclusive-remedy bargain, the two parts of the policy, payroll-based premium and experience mods. These notes cover the Illinois rules.

Who must be covered

• An employer with even one employee, part-time included, must provide workers' comp coverage, according to the Department's compliance guidance.
• How employers comply: insure with an authorized carrier, or qualify as a self-insurer with the Commission by filing a current financial statement each year (820 ILCS 305/4(a)).
• Illinois has no state fund.
• Only a workers' comp policy complies. Group health, disability, general liability and property policies don't.
• Owners: sole proprietors, partners, corporate officers and LLC members may elect coverage, except in extra-hazardous occupations such as construction.
• Penalties for going without coverage:
  • The Department lists fines of up to $500 per day, with a $10,000 minimum.
  • An employer knowingly without coverage loses the Act's protection and can be sued for unlimited damages.

Benefits, notice and claims

• Exclusive remedy: compensation is the exclusive remedy against the employer and its insurer (820 ILCS 305/5(a)).
• Temporary total disability: 66⅔% of the average weekly wage (820 ILCS 305/8(b)).
• Waiting period: benefits begin on the 4th day. If disability lasts 14 days or more, benefits are paid from the first day.
• Notice: to the employer as soon as practicable, and no later than 45 days after the accident (820 ILCS 305/6(c)).
• Claim deadline: file with the Commission within 3 years of the accident, or 2 years after the last payment, whichever is later (820 ILCS 305/6(d)).

Rates

• Workers' comp rates, manuals and rating plans are filed at least 30 days before use (215 ILCS 5/457).
• A filing may not be used until approved, but it is deemed approved if the Director doesn't disapprove it within 30 days.
• Final earned premium is based on actual payroll, not the estimate (50 Ill. Adm. Code 2904.120).

The assigned risk plan (215 ILCS 5/468; 50 Ill. Adm. Code 2904)

Participation: all insurers licensed to write workers' comp must take part in the plan.

Eligibility: the employer must have been rejected by two nonaffiliated carriers that actively write workers' comp, one of them its last carrier if it had one. The employer's producer submits the application.

Binding and policies:

• Coverage binds at 12:01 a.m. the day after the postmark on the payment, or on a later requested date.
• A policy or binder issues within 10 days of receiving the premium.
• Policies with an estimated premium of $1,000 or less must be paid in full.
• Plan policies are printed with "Assigned Risk" in letters at least 3/8 inch high.

Renewal:

• The renewal premium notice goes out 60 days before expiration.
• A payment received within 30 days after expiration renews the policy as of 12:01 a.m. the day after the postmark.

Other plan rules:

• An employer may request a hearing within 10 days of a termination notice.
• The carrier pays the producer's commission within 90 days.
• Plan rates are submitted for approval at least 30 days before taking effect.

Common exam traps

• The Workers' Compensation Commission hears claims. The Department of Insurance regulates insurers and the plan.
• Benefits are 66⅔% of wages. They begin on day 4, but are paid from day 1 if disability lasts 14+ days.
• Notice is due within 45 days. Claims are filed within 3 years, or 2 years after the last payment.
• Illinois has no state fund. The residual market is the assigned risk plan, which requires two rejections.
• One part-time employee is enough to require coverage.