IL| Company Bulletin 2025-15 from the Illinois Department of Insurance clarifies that issuers of workers’ compensation coverage can develop unique rates for individual risks with special or unusual characteristics, provided these rates are not excessive, inadequate, or unfairly discriminatory. However, due to changes in Illinois law, all such rates—including consent to rate policies—must be filed for Department approval at least 30 days before use, and issuers must provide advance notice for premium increases as stipulated by statute.
Key Points
- Consent to Rate: Unique rating for individual risks with special characteristics is allowed but must comply with statutory limits on rate fairness and application.
- Mandatory Filing: All workers’ compensation rates, including those for special risks, require advance filing and Department approval; prior exemptions have been repealed.
- Notice Requirement: Renewal premium increases over 5% above recommended rates require minimum 30 days’ advance notice to the insured.