AIA Testifies Against HB 1287; Bill Would Adversely Affect Illinois' Workers' Compensation System


Washington, DC ( - Stephen Schneider, American Insurance Association (AIA) Midwest region vice president, will testify today before the Illinois Senate Judiciary Committee against House Bill 1287 which would adversely affect the state's workers' compensation system. 

HB 1287 amends the Workers' Compensation and Employer's Liability Rates Article of the Illinois Insurance Code.   The bill would: enact a workers' compensation insurance prior approval rating law; clarify the definition of what constitutes a traveling employee; establish an employer/insurer contribution scheme for recovering amounts paid for certain injuries, specifically those occurring within the first 90 days of employment; and establish a task force, without insurer representation, to study both insurance and self-insurance data. 

Mr. Schneider will represent a coalition of insurers which includes AIA, the Illinois Insurance Association (IIA), the National Association of Mutual Insurance Companies (NAMIC) and the Property Casualty Insurers Association of America (PCI).  A brief statement from Mr. Schneider follows:

“Illinois is the single most competitive state in the country for workers' compensation insurance.  Insurers believe that competition is intrinsically good for all. 

“If enacted, HB 1287 would abandon 33 years of successful workers' compensation insurance regulation in Illinois.  The legislation would impose entirely new and burdensome regulations on workers' compensation insurers by establishing price controls, bureaucratically require insurers to submit rates to the Department of Insurance while waiting up to 30 days before using them, and create a Premium Rates Task Force with no representation from the industry.

“Insurers remain committed to improving Illinois' workers' compensation system for both employers and employees.  More can be done, and should be done.  However, when it comes to developing sound workers' compensation public policy in Illinois, HB 1287 will only make things worse.”

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