HB2962 98TH GENERAL ASSEMBLY

LRB098 05470 RPM 35504 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2962

Introduced , by Rep. Scott Drury

SYNOPSIS AS INTRODUCED:

215 ILCS 5/154.8	from Ch. 73, par. 766.8
215 ILCS 5/155	from Ch. 73, par. 767

Amends the Illinois Insurance Code. Provides that if, after a hearing pursuant to the Code, the Director of Insurance finds that a company has engaged in an improper claims practice, the Director shall order the company to cease and desist from such practices and, in the exercise of reasonable discretion, may suspend the company's certificate of authority for a period not to exceed 6 months or impose a civil penalty of up to $500,000 (rather than $250,000), or both. Makes changes to the provision concerning attorney fees.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by changing Sections 154.6, 154.8, and 155 as follows:

(215 ILCS 5/154.8) (from Ch. 73, par. 766.8)

Sec. 154.8. Cease and Desist Order - Suspension of Certificate - Civil penalty - Judicial Review.)

(1) If after a hearing pursuant to Section 154.7 the Director finds that company has engaged in an improper claims practice, he shall order such company to cease and desist from such practices and, in the exercise of reasonable discretion, may suspend the company's certificate of authority for a period not to exceed 6 months or impose a civil penalty of up to $500,000 $250,000, or both. Pursuant to Section 401, the Director shall promulgate reasonable rules and regulations establishing standards for the implementation of this Section.

(2) Any order of the Director pursuant to this Section is subject to judicial review under Section 407 of this Code.

(Source: P.A. 86-846.)

(215 ILCS 5/155) (from Ch. 73, par. 767)

Sec. 155. Attorney fees.

(1) In any action by or against a company wherein there is in issue the liability of a company on a policy or policies of insurance or the amount of the loss payable thereunder, or for an unreasonable delay in settling a claim, and it appears to the court that such action or delay is without justification vexatious and unreasonable, the court may allow as part of the taxable costs in the action reasonable attorney fees, other costs, plus an amount not to exceed any one of the following amounts:

(a) 75% 60% of the amount which the court or jury finds such party is entitled to recover against the company, exclusive of all costs;

(b) (blank) $60,000;

(c) the excess of the amount which the court or jury finds such party is entitled to recover, exclusive of costs, over the amount, if any, which the company offered to pay in settlement of the claim prior to the action.

(2) Where there are several policies insuring the same insured against the same loss whether issued by the same or by different companies, the court may fix the amount of the allowance so that the total attorney fees on account of one loss shall not be increased by reason of the fact that the insured brings separate suits on such policies.

(Source: P.A. 93-485, eff. 1-1-04.)