2004AP2802 Travelers Indemnity Company of Illinois v. Staff Right, Inc.

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“Although the Illinois Director of Insurance is given broad oversight authority in connection with worker’s-compensation carriers doing business in Illinois and their rate-setting methodologies, … we have found nothing in either the Illinois statutes or regulations that supports Travelers’s contention and the trial court’s conclusion that Travelers had no discretion in the setting of a experience-rating modifier of 2.83, or that, once set, the premium cannot be adjusted….

“An employer seeking a refund under 215 Ill. Comp. Stat. 5/462b, need only allege: (1) the existence of an insurance contract; (2) allegations of incorrect application of classification, payroll, or other factors of a ratings system to compute premiums and/or the application of an incorrect classification, payroll, or other factors of an incorrect ratings system to compute premiums[;] and (3) such conduct resulted in overpayment by the insured….Staff Right’s objection to Travelers’s assessment of premiums passes this muster.”

Reversed and remanded for further proceedings.

Publication in the official reports is recommended.

Dist I, Milwaukee County, McMahon, J., Fine, J.