Illinois § 107a.06

§ 107a.06.

Sec. 107a.06. Pool administration. (a) An application for Certificate of Authority to establish a pool must include the documentation and information regarding its administrator, pooling agreement, plan of operation, and membership required by this Section. (b) Administrators must disclose all of the following: (1) Biography of the risk manager on forms prescribed by the Director. (2) If a corporation, biographies of all officers and directors. (3) The size of staff and other information, such as the kinds of staff positions, location of administrative offices and the nature of any electronic data processing equipment, if any, available for servicing the pool, to demonstrate that the administrator has the resources to administer the program disclosed pursuant to subsection (d). (4) The most recent financial statement of the administrator. If a publicly held company, a copy of the last 10-K filed with the Securities and Exchange Commission. (5) The compensation contract of the administrator. (6) The bylaws of the pool and articles of incorporation, if any. (7) Any agreement that subcontracts any of the administrator's duties or responsibilities. (c) A pooling agreement must contain all of the following: (1) A description of the services to be provided by the administrator. (2) The manner in which costs are to be apportioned by the administrator. (3) The initial premium deposit. (4) The assessment provision. (5) The termination provisions and minimum term of membership, which minimum term of membership shall not be less than one year. (6) The duration of liability for additional assessments following termination of membership, which shall be for a period of not less than 3 years. (7) The prerequisites for membership. (8) A provision stating that a claim shall be paid by the pool, regardless of the size of the claim, and that the pool shall be reimbursed by the employer for any amounts required to be paid by the employer under the agreement. (9) A provision stating that the terms of termination after the first year of pool membership shall be dictated by the pooling agreement. (10) If a pooling agreement requires a member to submit written notice in order for the member to withdraw from a qualified pool, then the period in which the member must provide the written notice cannot be greater than 90 days. (d) Plans of operation must disclose all of the following: (1) A listing of initial members. (2) The aggregate loss history of initial members for each of the last 3 years. (3) The amount of the net retention of the pool and a list of reinsurers. (4) The names of all entities that will provide services for the pool and copies of proposed contracts in connection those services. (5) The safety and loss control programs to be provided or required. (e) The application must contain information about initial members specified on forms prescribed by the Director. (f) The application must contain the combined loss experience for the group for the last 3 years and any other financial data required by the Director. (g) A pool administrator's original books and records relating to the operations of the pool shall at all times be located within the State of Illinois. (h) Any change of the pooling agreement, bylaws, plan of operation, reinsurance agreements, or membership shall be delivered to the Director within 30 days after the amendment or change. (i) A pool trustee must be an employee, officer, director, or owner of a pool member. (Source: P.A. 91-757, eff. 1-1-01.)