All Insurance Companies Approved to Provide Workers’ Compensation Insurance Coverage in the State of Illinois : 215 ILCS 5/462a - Workers’ Compensation Rating Premium Notice

Illinois Department of Insurance BRUCE RAUNER Governor JENNIFER HAMMER Director TO: ALL INSURANCE COMPANIES APPROVED TO PROVIDE WORKERS' COMPENSATION INSURANCE COVERAGE IN THE S ATE OF IL INOIS FRO"fvl: DATE: December 11, 2018 Company Bulletin #2018-13 RE: 215 ILCS 5/462a - Workers' Compensation Rating Premium Notice All insurance companies writing workers' compensation coverage in Illinois (whether utilizing loss costs or rates) shall comply with the "Premium" notice requirements in 215 ILCS 5/462a for policies issued, delivered, amended or renewed on or after January 1, 2020. This bulletin provides guidance regarding the calculation of"Premiums" in excess of 5% above the "Rate Recommendation" filed with the Department of Insurance. 1) "Rate Recommendation" is the filing by the licensed rating organization as indicated in 215 ILCS 5/457(2). 2) "Premiums" subject to notice as provided in 5/462a shall reflect changes to the minimum premium, schedule rating, and expense constant. In calculation of the "Premium" for purposes of notice pursuant to 5/462a, the following shall be excluded: 1. increased loss costs or exposure units; 11. experience rating; 111. contractor credit adjustment program; 1v. large deducible; v. retrospective rating; AND v1. an audit. 3) To determine if the "Premium" is in excess of 5% above the "Rate Recommendation", the "Premium" that is offered should be compared to the filed "Rate Recommendation" as follows: IF, [Proposed Premium at Proposed LCM & Proposed Schedule Debit or Credit] <divided by> [Proposed Premium at Current LCM & Current Schedule Debit or Credit] Is> 1.05 THEN, a "Premium" notice is required in compliance with 5/462a. 4) The Director (pursuant to 215 ILCS 5/132) may make examination of any company . Company data shall be maintained, accessible, and retrievable for examination. Data shall include but is not limited to evidence I of the notice sent to the insured and/or documentation of insured's exclusion from notification. Questions regarding this bulletin may be directed to DOI.InfoDesk@illinois.gov. 320 West Washington St. Springfield, Illinois 62767-0001 (217) 782-4515