IL HB4595

Creates the Illinois Employers Mutual Insurance Company as a nonprofit, independent public corporation to provide workers' compensation and occupational disease insurance coverage to Illinois employers.

Authorizes a $10,000,000 loan from the Illinois Workers' Compensation Commission Operations Fund to the new Company for start-up funding and initial capitalization, with repayment required within 5 years plus accrued interest.

Establishes a 7-member Board of Directors appointed by the Governor with Senate confirmation, with staggered initial terms and subsequent 5-year terms, subject to conflict-of-interest and residency requirements.

Requires the Company to maintain actuarially sound rates, establish workplace safety plans for policyholders, conduct annual independent audits, and submit annual reports to legislative leadership beginning July 1, 2020.

Permits dividend distributions only after initial funding is repaid in full, all expenses are met, adequate reserves exist, and an independent actuarial review is completed.