IL| Illinois Department of Insurance Company Bulletin 2026-10 announces a new, additional Illinois Workers’ Compensation Commission Operations Fund surcharge created by PA 104-0792, effective August 7, 2026. The assessment applies only to insurers reporting a positive 2025 Illinois underwriting gain in workers’ compensation and excess workers’ compensation business. For 2026, the Department calculated the surcharge at 0.797%, using the $7 million statutory funding target divided by statewide 2025 underwriting gains of $878,325,951; the target will increase by 3.5% each year.
- Affected insurers will receive a separate invoice for the 2026 additional amount; in future years, it will appear as a separate line item on the regular surcharge invoice issued on or before July 1.
- An insurer’s charge equals its Illinois workers’ compensation and excess workers’ compensation underwriting gain for the prior year multiplied by the annual percentage rate.
- Underwriting gain is defined as direct earned premiums less direct losses incurred, direct defense and cost-containment expense incurred, commission and brokerage expense, and taxes, licenses, and fees.