Ill. Admin. Code tit. 50, § 2904.70 - Procedure for Immediate Binding of Coverage

Current through Register Vol. 46, No. 15, April 8, 2022

An employer seeking Assigned Risk Insurance may be bound under the Illinois Assigned Risk Plan in accordance with the following procedures.

a) Within 60 days prior to application the employer must have requested and been rejected for standard coverage by two nonaffiliated insurance carriers licensed and actively writing workers' compensation insurance within the State, one of which shall have been the carrier, if any, with which the employer was last insured for Workers' Compensation and Workers' Occupational Diseases Coverage at the time of application.
b) The producer of the employer must contact the Administrator and provide the necessary information for the Administrator to determine the estimated annual premium. A completed and signed application must be received along with the applicable deposit required by Section 2904.100 and the Plan.
c) Upon receipt of a completed application and required deposit premium, the Administrator shall bind coverage in accordance with Section 2904.60(b). The Administrator shall then provide to the assigned carrier the complete binder package electronically the day after binding. The assigned carrier shall provide to the employer and producer an electronic or hard copy notice as to the amount of any additional premium due within 10 days from the date of assignment of coverage from the Administrator and assigned carrier's receipt of the required information. The employer or producer shall remit to the assigned carrier the additional premium, or any additional deposit premium payments due when election is made under Section 2904.100, within 30 days from the date that the notice of additional premium is provided to the employer and producer. The assigned carrier shall maintain proof that the notice of additional premium was provided to the employer and producer. Coverage will be cancelled by the assigned carrier for nonpayment of premium in accordance with Section 143.16 of the Code if the additional premium, or any additional deposit premium due under Section 2904.100, is not received by the assigned carrier within 30 days from the date the notice of additional premium was provided to the employer.
d) The Administrator will not bind coverage if the deposit premium does not accompany the application. If an application is submitted for the binding of immediate coverage which does not contain sufficient information to complete the assignment, the Administrator shall advise the producer by telephone or electronic communication that the application is being rejected and return the appropriate premium funds provided, if any, to the original payor with an explanation of the rejection to the producer. Coverage shall not be considered bound on rejected applications.

Notes

Ill. Admin. Code tit. 50, § 2904.70

Amended at 6 Ill. Reg. 7226 effective June 4, 1982

Amended at 38 Ill. Reg. 15611, effective 7/2/2014

The following state regulations pages link to this page.



State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.