215 ILCS 5/416
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXV - Fees, Charges And Taxes

(215 ILCS 5/416)Sec. 416. Illinois Workers' Compensation    Commission Operations Fund Surcharge.(a) As of July 30, 2004 (the effective date of Public Act 93-840), every company licensed or  authorized by the Illinois Department of Insurance and insuring employers'  liabilities arising under the Workers' Compensation Act or the Workers'  Occupational Diseases Act shall remit to the Director a surcharge based upon  the annual direct written premium, as reported under Section 136 of this Act,  of the company in the manner provided in this  Section.  Such  proceeds shall  be deposited into the Illinois Workers' Compensation    Commission Operations Fund as  established in  the Workers' Compensation Act. If a company  survives or  was formed by a merger, consolidation, reorganization, or reincorporation, the  direct  written premiums of all companies party to the merger, consolidation,  reorganization, or  reincorporation shall, for purposes of determining the amount of the fee  imposed by this  Section, be regarded as those of the surviving or new company.(b)(1) Except as provided in subsection (b)(2) of this Section, beginning on  July 30, 2004 (the effective date of Public Act 93-840) and on July 1 of each year thereafter,  the  Director shall  charge an annual Illinois Workers' Compensation Commission Operations Fund Surcharge from every  company subject to subsection (a) of this Section equal to 1.01% of its direct  written  premium for insuring employers' liabilities arising under the Workers'  Compensation Act or Workers' Occupational Diseases Act as reported in each  company's  annual  statement filed for the previous year as required by Section 136. The  Illinois Workers' Compensation Commission Operations Fund Surcharge shall be collected by companies  subject to subsection (a) of this Section as a separately stated surcharge on  insured employers at the rate of 1.01% of direct written premium.  The  Illinois Workers'   Compensation Commission Operations Fund Surcharge shall not be collected by companies  subject to subsection (a) of this Section from any employer that self-insures its liabilities arising under the Workers' Compensation Act or Workers' Occupational Diseases Act, provided that the employer has paid the Illinois Workers'   Compensation Commission Operations Fund Fee pursuant to Section 4d of the Workers' Compensation Act. All sums  collected by  the Department of Insurance under the provisions of this Section shall be paid  promptly  after the receipt of the same, accompanied by a detailed statement thereof,  into the  Illinois Workers' Compensation Commission Operations Fund in the State treasury.(b)(2) The surcharge due pursuant to Public Act 93-840 shall be collected instead of the surcharge due on July 1, 2004 under Public Act 93-32. Payment of the surcharge due under Public Act 93-840 shall discharge the employer's obligations due on July 1, 2004.(c) In addition to the authority specifically granted under Article XXV of  this  Code, the Director shall have such authority to adopt rules or establish forms  as may be  reasonably necessary for purposes of enforcing this Section. The Director shall  also have  authority to defer, waive, or abate the surcharge or any penalties imposed by  this  Section if in  the Director's opinion the company's solvency and ability to meet its insured  obligations  would be immediately threatened by payment of the surcharge due.(d) When a company fails to pay the full amount of any annual  Illinois Workers' Compensation    Commission Operations Fund Surcharge of $100 or more due under this Section,  there  shall be  added to the amount due as a penalty the greater of $1,000 or an amount equal  to 5% of  the deficiency for each month or part of a month that the deficiency remains  unpaid.(e) The Department of Insurance may enforce the collection of any delinquent  payment, penalty, or portion thereof by legal action or in any other manner by  which the  collection of debts due the State of Illinois may be enforced under the laws of  this State.(f) Whenever it appears to the satisfaction of the Director that a company  has  paid  pursuant to this Act an Illinois Workers' Compensation Commission Operations Fund Surcharge in  an amount  in excess of the amount legally collectable from the company, the Director  shall issue a  credit memorandum for an amount equal to the amount of such overpayment. A  credit  memorandum may be applied for the 2-year period from the date of issuance,  against the  payment of any amount due during that period under the surcharge imposed by  this  Section or,  subject to reasonable rule of the Department of Insurance including requirement  of  notification, may be assigned to any other company subject to regulation under  this Act.  Any application of credit memoranda after the period provided for in this  Section is void.(g) Annually, the Governor may direct a transfer of up to 2% of all moneys  collected under this Section to the Insurance Financial Regulation Fund.       (Source: P.A. 95-331, eff. 8-21-07.)