Guaranty Funds Look to Illinois Bill as potential Standard for large-deductible Policies

Guaranty fund managers from around the country are closely watching a bill awaiting a vote in the Illinois House of Representatives that they hope will set a new standard to protect insurance carriers from potential insolvencies caused by employers who purchase large-deductible policies but fail to pay their share of claims costs. Senate Bill 1805 by Sen. William R. Haine, D-Alton, would require any workers' comp insurer with less than an "A-" rating from A.M. Best Co. and less than $200 million in group surplus to require collateral from policyholders who purchase a policy with...