SB0220 94TH GENERAL ASSEMBLY

LRB094 03454 LJB 33457 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0220

Introduced 2/2/2005, by Sen. John J. Cullerton

SYNOPSIS AS INTRODUCED:

215 ILCS 5/368f new

Amends the Illinois Insurance Code. Requires diminishment of subrogation claims to the extent that the claimant's recovery is reduced by comparative fault or uncollectibility of the full value of the claim.

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 368f as follows:

(215 ILCS 5/368f new)

Sec. 368f. Reduction of subrogation claims.

(a) If a subrogation claim or other lien or claim that arose out of the payment of medical expenses or other benefits exists in respect to a claim for personal injuries and the claimant's recovery is diminished (i) by comparative fault or (ii) by reason of the uncollectibility of the full value of the claim for personal injuries resulting from limited liability insurance or from any other cause, the lien or claim shall be diminished in the same proportion as the claimant's recovery is diminished. The party holding the lien or claim shall bear a pro rata share of the claimant's attorney's fees and expenses.

(b) The trial court judge shall conduct a hearing to determine the full value of the claim for personal injuries and calculate the proportional reduction of the subrogation claim or other claim arising out of payment of medical expenses or other benefits.

(c) Nothing contained in this Section affects the recovery for liens as provided for by subsection (b) of Section 5 of the Workers' Compensation Act, Section 1 of the Attorneys Lien Act, Section 10 of the Health Care Services Lien Act, and Sections 11-22, 11-22a, and 11-22b of the Illinois Public Aid Code.