Self-Insurers Agreement To Post Letter Of Credit {IC72}

SELF-INSURER’S AGREEMENT TO POST LETTER OF CREDIT. This form is used by employers who have been approved to self-insure their workers' compensation liabilities. This agreement ensures that the employer deposits an irrevocable letter of credit in favor of the Illinois Workers’ Compensation Commission (IWCC) as financial security for covering workers’ compensation claims and related costs. The letter of credit serves as a guarantee that the employer can fulfill its obligations under the Workers’ Compensation Act and Workers’ Occupational Diseases Act. If the employer fails to meet its responsibilities—such as paying employee benefits, administrative expenses, or legal defense costs—the IWCC has the authority to draw from the letter of credit to cover those obligations. If the employer becomes insolvent, the funds can be used to compensate injured workers through the Self-Insurers Security Fund. This agreement also outlines conditions for returning the letter of credit, requirements for additional security, and procedures for modifying or terminating the employer's self-insurer status. www.FormsWorkflow.com