AIA Submits Testimony Against Adverse Workers' Comp Bill in Illinois

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Steve Schneider, American Insurance Association (AIA) Midwest region vice president, issued the following statement after filing testimony with the Illinois Senate Judiciary Committee about the adverse effects of HB 1287, workers’ compensation reform legislation.

Steve Schneider, American Insurance Association (AIA) Midwest region vice president, issued the following statement after filing testimony with the Illinois Senate Judiciary Committee about the adverse effects of HB 1287, workers’ compensation reform legislation. HB 1287 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’s testimony was submitted on behalf of a coalition of insurers which included AIA, the Illinois Insurance Association (IIA), the National Association of Mutual Insurance Companies (NAMIC) and the Property Casualty Insurers Association of America (PCI).

Mr. Schneider’s statement follows:

“Three-hundred thirty-three insurers compete for the right to earn a customer’s business in Illinois, making it the single most competitive state in the country for workers’ compensation insurance. HB 1287 would add costly and significant bureaucratic burdens to the system by establishing a price control regulatory scheme. This would remove considerable flexibility from the system creating adverse effects for both employers and employees.

“While insurers are committed to improving the state’s workers’ compensation system, HB 1287 represents the wrong approach.”

During the hearing, the Committee amended Senate Bill 162 with modest changes which did not include the onerous rating provisions found in HB 1287. Subsequently, the Committee then approved Senate Bill 162 and sent it to the Senate Floor for consideration.

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