(305 ILCS 5/11-22b) (from Ch. 23, par. 11-22b)
Sec. 11-22b. Recoveries.
(a) As used in this Section:
(1) "Carrier" means any insurer, including any private company, corporation, mutual |
| association, trust fund, reciprocal or interinsurance exchange authorized under the laws of this State to insure persons against liability or injuries caused to another and any insurer providing benefits under a policy of bodily injury liability insurance covering liability arising out of the ownership, maintenance or use of a motor vehicle which provides uninsured motorist endorsement or coverage.
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(2) "Beneficiary" means any person or their dependents who has received benefits or will
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| be provided benefits under this Code, under the Covering ALL KIDS Health Insurance Act, or under the Veterans' Health Insurance Program Act or the Veterans' Health Insurance Program Act of 2008 because of an injury for which another person may be liable. It includes such beneficiary's guardian, conservator or other personal representative, his estate or survivors.
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(b)(1) When benefits are provided or will be provided to a beneficiary
under this Code, under the Covering ALL KIDS Health Insurance Act, or under the Veterans' Health Insurance Program Act or the Veterans' Health Insurance Program Act of 2008 because of an injury for which another person is liable, or
for which a carrier is liable in accordance with the provisions of any
policy of insurance issued pursuant to the Illinois Insurance Code, the
Illinois Department shall have a right to recover from such person or carrier
the reasonable value of benefits so provided. The Attorney General may, to
enforce such right, institute and prosecute legal proceedings against the
third person or carrier who may be liable for the injury in an appropriate
court, either in the name of the Illinois Department or in the name of the
injured person, his guardian, personal representative, estate, or survivors.
(2) The Department may:
(A) compromise or settle and release any such claim for benefits provided under this
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(B) waive any such claims for benefits provided under this Code, in whole or in part,
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| for the convenience of the Department or if the Department determines that collection would result in undue hardship upon the person who suffered the injury or, in a wrongful death action, upon the heirs of the deceased.
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(3) No action taken on behalf of the Department pursuant to this Section
or any judgment rendered in such action shall be a bar to any action upon
the claim or cause of action of the beneficiary, his guardian, conservator,
personal representative, estate, dependents or survivors against the third
person who may be liable for the injury, or shall operate to deny to the
beneficiary the recovery for that portion of any damages not covered hereunder.
(c)(1) When an action is brought by the Department pursuant to
subsection (b), it shall be commenced within the period prescribed by
Article XIII of the Code of Civil Procedure.
However, the Department may not commence the action prior to 5 months
before the end of the applicable period prescribed by Article XIII of the
Code of Civil Procedure. Thirty days prior to commencing an action, the
Department shall notify the beneficiary of the Department's intent to
commence such an action.
(2) The death of the beneficiary does not abate any right of action
established by subsection (b).
(3) When an action or claim is brought by persons entitled to bring such
actions or assert such claims against a third person who may be liable for
causing the death of a beneficiary, any settlement, judgment or award
obtained is subject to the Department's claim for reimbursement of the
benefits provided to the beneficiary under this Code, under the Covering ALL KIDS Health Insurance Act, or under the Veterans' Health Insurance Program Act or the Veterans' Health Insurance Program Act of 2008.
(4) When the action or claim is brought by the beneficiary alone and
the beneficiary incurs a personal liability to pay attorney's fees and
costs of litigation, the Department's claim for reimbursement of the
benefits provided to the beneficiary shall be the full amount of benefits
paid on behalf of the beneficiary under this Code, under the Covering ALL KIDS Health Insurance Act, or under the Veterans' Health Insurance Program Act or the Veterans' Health Insurance Program Act of 2008 less a pro rata
share which represents the Department's reasonable share of attorney's fees
paid by the beneficiary and that portion of the cost of litigation expenses
determined by multiplying by the ratio of the full amount of the
expenditures of the full amount of the judgment, award or settlement.
(d)(1) If either the beneficiary or the Department brings an action or
claim against such third party or carrier, the beneficiary or the
Department shall within 30 days of filing the action give to the other
written notice by personal service or registered mail of the action or
claim and of the name of the court in which the
action or claim is brought. Proof of such notice shall be filed in such
action or claim. If an action or claim is brought by either the Department
or the beneficiary, the other may, at any time before trial on the facts,
become a party to such action or claim or shall consolidate his action or
claim with the other if brought independently.
(2) If an action or claim is brought by the Department pursuant to
subsection (b)(1), written notice to the beneficiary, guardian, personal
representative, estate or survivor given pursuant to this Section shall
advise him of his right to intervene in the proceeding, his right to obtain
a private attorney of his choice and the Department's right to recover the
reasonable value of the benefits provided.
(e) In the event of judgment or award in a suit or claim against such
third person or carrier:
(1) If the action or claim is prosecuted by the beneficiary alone, the court shall first
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| order paid from any judgment or award the reasonable litigation expenses incurred in preparation and prosecution of such action or claim, together with reasonable attorney's fees, when an attorney has been retained. After payment of such expenses and attorney's fees the court shall, on the application of the Department, allow as a first lien against the amount of such judgment or award the amount of the Department's expenditures for the benefit of the beneficiary under this Code, under the Covering ALL KIDS Health Insurance Act, or under the Veterans' Health Insurance Program Act or the Veterans' Health Insurance Program Act of 2008, as provided in subsection (c)(4).
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(2) If the action or claim is prosecuted both by the beneficiary and the Department, the
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| court shall first order paid from any judgment or award the reasonable litigation expenses incurred in preparation and prosecution of such action or claim, together with reasonable attorney's fees for plaintiffs attorneys based solely on the services rendered for the benefit of the beneficiary. After payment of such expenses and attorney's fees, the court shall apply out of the balance of such judgment or award an amount sufficient to reimburse the Department the full amount of benefits paid on behalf of the beneficiary under this Code, under the Covering ALL KIDS Health Insurance Act, or under the Veterans' Health Insurance Program Act or the Veterans' Health Insurance Program Act of 2008.
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(f) The court shall, upon further application at any time
before the judgment or award is satisfied, allow as a further lien the
amount of any expenditures of the Department in payment of additional
benefits arising out of the same cause of action or claim provided on
behalf of the beneficiary under this Code, under the Covering ALL KIDS Health Insurance Act, or under the Veterans' Health Insurance Program Act or the Veterans' Health Insurance Program Act of 2008, when such benefits were
provided or became payable subsequent to the original order.
(g) No judgment, award, or settlement in any action or claim by a
beneficiary to recover damages for injuries, when the Department has an
interest, shall be satisfied without first giving the Department notice and
a reasonable opportunity to perfect and satisfy its lien.
(h) When the Department has perfected a lien upon a judgment or award in
favor of a beneficiary against any third party for an injury for which the
beneficiary has received benefits under this Code, under the Covering ALL KIDS Health Insurance Act, or under the Veterans' Health Insurance Program Act or the Veterans' Health Insurance Program Act of 2008, the Department shall be
entitled to a writ of execution as lien claimant to enforce payment of said
lien against such third party with interest and other accruing costs as in
the case of other executions. In the event the amount of such judgment or
award so recovered has been paid to the beneficiary, the Department shall
be entitled to a writ of execution against such beneficiary to the extent of
the Department's lien, with interest and other accruing costs as in the case
of other executions.
(i) Except as otherwise provided in this Section, notwithstanding any
other provision of law, the entire amount of any settlement of the injured
beneficiary's action or claim, with or without suit, is subject to the
Department's claim for reimbursement of the benefits provided and any lien
filed pursuant thereto to the same extent and subject to the same
limitations as in Section 11-22 of this Code.
(Source: P.A. 94-693, eff. 7-1-06; 94-816, eff. 5-30-06; 95-755, eff. 7-25-08.)
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