HB3896 Summary

• Director of Insurance shall loan $10,000,000 from the Illinois Workers' Compensation Commission Operations Fund to the Illinois Employers Mutual Insurance Company for start-up funding and initial capitalization, with repayment required within 5 years plus accrued interest.

• Establishes Illinois Employers Mutual Insurance Company as a nonprofit, independent public corporation operating as a domestic mutual insurer, limited to issuing only workers' compensation and occupational disease coverage.

• Company shall be managed by a 7-member board of directors appointed by the Governor with Senate consent, with members subject to conflict-of-interest restrictions prohibiting interests in other workers' compensation insurers.

• Company shall develop workplace safety plans for policyholders, maintain an independent actuarial review process for ratemaking, conduct annual audits by certified public accountants, and may declare dividends only after repaying initial funding and meeting specific financial conditions.

• Company shall not be considered a State agency, shall not receive State appropriations beyond the initial loan, and is subject to all applicable Illinois Insurance Code provisions including Illinois Insurance Guaranty Fund membership; act becomes effective immediately.