HB3846 94TH GENERAL ASSEMBLY

LRB094 06355 LJB 36431 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3846

Introduced 02/25/05, by Rep. Wyvetter H. Younge

SYNOPSIS AS INTRODUCED:

215 ILCS 5/155.42 new

Amends the Illinois Insurance Code. Requires insurers to provide certain information to insureds or third-party claimants when paying or settling a claim, including how the money paid out is divided among categories of damages, what services the insurance company has paid for directly, and what services the insured or third-party claimant is responsible for paying out of payment by the insurer. Effective immediately.

A BILL FOR

AN ACT concerning insurance.

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 adding Section 155.42 as follows:

(215 ILCS 5/155.42 new)

Sec. 155.42. Allocation of claims and settlements; information provided to insureds or third-party claimants. All insurers authorized to business in this State shall provide the following information in writing to an insured or third-party claimant when paying or settling a claim made under a policy or policies of insurance:

(1) The categories of damages that the payment is intended to cover, including, but not limited to, medical costs, repair or replacement of property, economic damages, and non-economic damages.

(2) The amount allocated to each category.

(3) Any amount paid by the insurer to other persons for services provided to the insured or third-party claimant as a result of the incident giving rise to the claim that is not included in the payment to the insured or third-party claimant.

(4) Any amount claimed by the insured or third-party claimant for services provided as a result of the incident giving rise to the claim that the insured or third-party claimant is still liable for paying out of the amount received by the insured or third-party claimant from the insurer.

Section 99. Effective date. This Act takes effect upon becoming law.