Illinois House Bill 2645 Would Create Burdensome, Duplicative Workers’ Compensation Regulations

WASHINGTON, March 29 -- The American Insurance Association issued the following news release:

Steve Schneider, Midwest Region Vice President for the American Insurance Association (AIA), issued the following statement in advance of testifying today before the Illinois House Labor and Commerce Committee against HB 2645. The legislation urges employers and insurers to file return to work and safety programs with the Illinois Workers' Compensation Commission (IWCC) for approval.

Mr. Schneider's statement follows:

"We urge the House Labor and Commerce Committee to oppose HB 2645.

The legislation urges employers and insurers to file their safety and return to work plans with the IWCC and wait for the 'certification' of these plans. Simultaneously, the Department of Insurance (DOI) is required to direct the National Council on Compensation Insurance (NCCI) to recalculate advisory premium rates for the employers and insurers who file these programs. While this sounds like a good idea, the actual implementation of this scheme will be horrendously difficult.

First, there is no documented problem necessitating the so-called voluntary certification program posed by the legislation; second, there is no coordination between plans filed with the IWCC, the DOI's directives to the NCCI, or the NCCI's compliance with these directives; third, the real losers from this bureaucratic circus will be insurance customers who will have to wait for these three entities to receive the info, review it, certify it, address any questions, issue directives, comply with those directives and then implement those directives.

There is no need for this plan. It is virtually impossible to implement given its structure and customers will be forced to wait for their insurance plans. We urge the committee to reject HB 2645."

Celebrating its 150th year in 2016, The American Insurance Association (AIA) is the leading property-casualty insurance trade organization, representing approximately 320 insurers that write more than $125 billion in premiums each year. AIA member companies offer all types of property - casualty insurance, including personal and commercial auto insurance, commercial property and liability coverage, specialty, workers' compensation, homeowners' insurance, medical malpractice coverage, and product liability insurance.

[Category: Insurance]

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