Full Text of SB3037 095th General Assembly
SB3037 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB3037
Introduced 4/30/2008, by Sen. Susan Garrett - Michael W. Frerichs - Kimberly A. Lightford SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/143.11c new |
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215 ILCS 5/154.6 |
from Ch. 73, par. 766.6 |
215 ILCS 5/155 |
from Ch. 73, par. 767 |
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Amends the Illinois Insurance Code. Provides that no company may cancel, terminate, or refuse to renew any policy of property and casualty insurance during the pendency of a claim in which the primary residence of the policyholder is or comes to be uninhabitable, unoccupied, or under construction or has yet to be permanently repaired. Provides that any of the following acts by an insurer shall constitute improper claims practice: (1) paying an appraiser, contractor, or vendor involved in providing services or estimates for appraising the value of any loss for repairing a policyholder's home; (2) compelling a policyholder as to which appraiser, vendor, or contractor the policyholder must use for the repair; (3) failing to reimburse a policyholder within 30 days after receiving proof of reimbursable out-of-pocket expenses; or (4) denying a policyholder's request for reimbursement without a written explanation within 30 days after a policyholder's request. Eliminates the $60,000 limit on the part of the taxable costs a court may allow in any action by or against a company where 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 where there is an unreasonable
delay in settling a claim, and it appears to the court that such action
or delay is vexatious and unreasonable. Effective immediately.
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A BILL FOR
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SB3037 |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by adding | 5 |
| Section 143.11c and by changing Sections 154.6 and 155 as | 6 |
| follows: | 7 |
| (215 ILCS 5/143.11c new) | 8 |
| Sec. 143.11c. Cancellation of policy during pendency of a | 9 |
| claim. No company authorized to do business in this State may | 10 |
| cancel, terminate, or refuse to renew any policy of property | 11 |
| and casualty insurance during the pendency of a claim in which | 12 |
| the primary residence of the policyholder is or comes to be | 13 |
| uninhabitable, unoccupied, or under construction or has yet to | 14 |
| be permanently repaired.
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| (215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
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| Sec. 154.6. Acts constituting improper claims practice. | 17 |
| Any of the
following acts by a company, if committed without | 18 |
| just cause and in
violation of Section 154.5, constitutes an | 19 |
| improper claims practice:
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| (a) Knowingly misrepresenting to claimants and insureds | 21 |
| relevant
facts or policy provisions relating to coverages at | 22 |
| issue;
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| (b) Failing to acknowledge with reasonable promptness | 2 |
| pertinent
communications with respect to claims arising under | 3 |
| its policies;
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| (c) Failing to adopt and implement reasonable standards for | 5 |
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prompt investigations and settlement of claims arising | 6 |
| under its policies;
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| (d) Not attempting in good faith to effectuate prompt, fair | 8 |
| and
equitable settlement of claims submitted in which liability | 9 |
| has become
reasonably clear;
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| (e) Compelling policyholders to institute suits to recover | 11 |
| amounts
due under its policies by offering substantially less | 12 |
| than the amounts
ultimately recovered in suits brought by them;
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| (f) Engaging in activity which results in a | 14 |
| disproportionate number
of meritorious complaints against the | 15 |
| insurer received by the Insurance
Department;
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| (g) Engaging in activity which results in a | 17 |
| disproportionate number
of lawsuits to be filed against the | 18 |
| insurer or its insureds by
claimants;
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| (h) Refusing to pay claims without conducting a reasonable
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| investigation based on all available information;
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| (i) Failing to affirm or deny coverage of claims within a | 22 |
| reasonable
time after proof of loss statements have been | 23 |
| completed;
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| (j) Attempting to settle a claim for less than the amount | 25 |
| to which a
reasonable person would believe the claimant was | 26 |
| entitled, by reference
to written or printed advertising |
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| material accompanying or made part of
an application or | 2 |
| establishing unreasonable caps or limits on paint
or materials
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| when estimating vehicle repairs;
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| (k) Attempting to settle claims on the basis of an | 5 |
| application which
was altered without notice to, or knowledge | 6 |
| or consent of, the insured;
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| (l) Making a claims payment to a policyholder or | 8 |
| beneficiary
omitting the coverage under which each payment is | 9 |
| being made;
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| (m) Delaying the investigation or payment of claims by | 11 |
| requiring an
insured, a claimant, or the physicians of either | 12 |
| to submit a preliminary
claim report and then requiring | 13 |
| subsequent submission of formal proof of
loss forms, resulting | 14 |
| in the duplication of verification;
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| (n) Failing in the case of the denial of a claim or the | 16 |
| offer of a
compromise settlement to promptly provide a | 17 |
| reasonable and accurate
explanation of the basis in the | 18 |
| insurance policy or applicable law for
such denial or | 19 |
| compromise settlement;
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| (o) Failing to provide forms necessary to present claims | 21 |
| within 15
working days of a request with such explanations as | 22 |
| are necessary to use
them effectively;
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| (p) Failing to adopt and implement reasonable standards to | 24 |
| verify that
a repairer designated by the insurance company to | 25 |
| provide an estimate,
perform repairs, or engage in any other | 26 |
| service in connection with an
insured loss on a vehicle is duly |
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| licensed under Section 5-301 of the
Illinois Vehicle Code;
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| (q) Failing to provide as a persistent tendency a | 3 |
| notification on any
written estimate prepared by an insurance | 4 |
| company in connection with an
insured loss that Illinois law | 5 |
| requires that vehicle repairers must be
licensed in accordance | 6 |
| with Section 5-301 of the Illinois Vehicle Code;
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| (q-5) Offering or agreeing to pay an appraiser, contractor, | 8 |
| or vendor involved in providing services or estimates for | 9 |
| appraising the value of any loss for repairing, restoring, or | 10 |
| reconstructing a policyholder's home; | 11 |
| (q-10) Compelling a policy holder as to which appraiser, | 12 |
| vendor, or contractor the policyholder must use for the repair, | 13 |
| restoration, or reconstruction of the policyholder's home; | 14 |
| (q-15) Failing to reimburse a policyholder for | 15 |
| out-of-pocket expenses incurred by the policyholder for goods | 16 |
| or services that are covered by the insurance policy within 30 | 17 |
| days after receipt of proof of those expenses; | 18 |
| (q-20) Denying a policyholder's request for reimbursement | 19 |
| and failing to provide a written explanation, within 30 days | 20 |
| after receipt of a policyholder's request, that sets forth a | 21 |
| good faith basis for denying the specific item for which the | 22 |
| policyholder requested reimbursement; | 23 |
| (r) Engaging in any other acts which are in substance | 24 |
| equivalent to
any of the foregoing.
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| (Source: P.A. 90-340, eff. 8-8-97.)
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| (215 ILCS 5/155) (from Ch. 73, par. 767)
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| Sec. 155. Attorney fees.
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| (1) In any action by or against a company wherein
there is | 4 |
| in issue the liability of a company on a policy or policies of
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| insurance or the amount of the loss payable thereunder, or for | 6 |
| an unreasonable
delay in settling a claim, and it appears to | 7 |
| the court that such action
or delay is vexatious and | 8 |
| unreasonable, the court may allow as part of the
taxable costs | 9 |
| in the action reasonable attorney fees, other costs, plus
an | 10 |
| amount not to exceed any one of the following amounts:
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| (a) 60% of the amount which the court or jury finds | 12 |
| such party
is entitled to recover against the company, | 13 |
| exclusive of all costs;
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| (b) (blank); $60,000;
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| (c) the excess of the amount which the court or jury | 16 |
| finds such party is
entitled to recover, exclusive of | 17 |
| costs, over the amount, if any, which
the company offered | 18 |
| to pay in settlement of the claim prior to the action.
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| (2) Where there are several policies insuring the same | 20 |
| insured
against the same loss whether issued by the same or by | 21 |
| different
companies, the court may fix the amount of the | 22 |
| allowance so that the
total attorney fees on account of one | 23 |
| loss shall not be increased by
reason of the fact that the | 24 |
| insured brings separate suits on such policies.
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| (Source: P.A. 93-485, eff. 1-1-04.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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