d) The MSP shall
file evidence of insurance in one of the following ways:
1) File a certificate of insurance as
evidence that the commercial general liability policy was renewed for at least
one year and the liability coverage will continue. If the insurance company's
rating or financial size is downgraded below the minimum required rating or
financial size under Section
460.100(b)(1)(B),
within 30 days after such downgrade, the MSP shall obtain new insurance
coverage provided by an insurance company meeting or exceeding the required
minimum rating and financial size. A copy of the certificate of insurance for
the new policy must be filed within that period with the Chief Clerk of the
Commission and the Manager of the Commission's Financial Analysis Division or
its successor; or
2) MSPs that
qualify to self-insure for the liability obligations shall file a copy of the
Self-Insurance Certificate of Approval under Section 4 of the Workers'
Compensation Act [820 ILCS 305 ]. If the MSP fails to maintain authorization
from the Illinois Industrial Commission to provide self-insurance, the MSP must
obtain insurance coverage as provided in Section
460.100(b)(1)
within 120 days from the date that its
authority to self-insure is revoked by Illinois Industrial Commission Order.
The MSP must notify the Commission of the Order revoking its authority to
self-insure within 30 days. Within 120 days, the MSP must file a certificate of
insurance with the Chief Clerk of the Commission and the Manager of the
Commission's Financial Analysis Division or its successor as evidence that a
Commercial General Liability policy has been issued and is valid for a period
of not less than one year. MSPs that qualify to self-insure but are required to
provide an unconditional guarantee, surety bond, letter of credit, or establish
an escrow account shall file:
A) A copy of
the latest ratings report presenting the commercial paper or long-term credit
or obligation ratings of the guarantors or financial institutions that issued
the letter of credit, as applicable, between December 1 and December 31 of each
year and within 15 days following any downgrade of such ratings previously
filed with the Commission. Within 30 days after a downgrade of the commercial
paper or long-term credit ratings of the guarantors or financial institutions
that issued the letter of credit to a level below the minimum rating required
under this Subpart, the MSP shall submit a report that:
i) identifies the subsection of this Part
under which the MSP is seeking to demonstrate that its financial resources
remain sufficient for providing the services for which it has received a
certificate of service authority; and
ii) includes the information and documents
that subsection requires;
B) If the surety company that issued the
surety or license or permit bond is disqualified as a qualifying surety, the
MSP shall have 30 days from the date that the company is disqualified to obtain
a new surety or license or permit bond from a qualifying surety;
C) Copies of any modified, replacement, or
additional unconditional guarantees, letters of credit, surety bonds, or escrow
accounts, as applicable, at least 15 days in advance of any modification,
cancellation, or expiration of the financial agreements; and
D) A statement presenting the type and
balance of securities deposited in the escrow account, as applicable.
