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92_HB4371eng HB4371 Engrossed LRB9210185JSpcB 1 AN ACT relating to insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5 adding Section 143.24c and changing Section 154.6 as follows: 6 (215 ILCS 5/143.24c new) 7 Sec. 143.24c. Hate crimes; coverage refusal. 8 (a) This Section applies to policies of insurance if the 9 insured or proposed insured is (1) an individual, (2) a 10 religious organization described in clause (i) of 11 subparagraph (A) of paragraph (1) of subsection (b) of 12 Section 170 of Title 26 of the United States Code, (3) an 13 educational organization described in clause (ii) of 14 subparagraph (A) of paragraph (1) of subsection (b) of 15 Section 170 of Title 26 of the United States Code, or (4) any 16 other nonprofit organization described in clause (vi) of 17 subparagraph (A) of paragraph (1) of subsection (b) of 18 Section 170 of Title 26 of the United States Code that is 19 organized and operated for religious, charitable, or 20 educational purposes. 21 (b) An insurer issuing policies subject to this Section 22 may not cancel, refuse to issue, or refuse to renew the 23 policy solely on the basis that one or more claims have been 24 made against any policy during the preceding 60 months for a 25 loss that is the result of a hate crime committed against the 26 person or property insured and the perpetrator of the loss is 27 criminally prosecuted for the act causing the loss or the 28 claim has been paid. 29 (c) As it relates to this Section, if determined by a 30 law enforcement agency, a "hate crime" may include any of the 31 following: HB4371 Engrossed -2- LRB9210185JSpcB 1 (1) By force or threat of force, willfully 2 injuring, intimidating, interfering with, oppressing, or 3 threatening any other person in the free exercise or 4 enjoyment of any right or privilege secured to him or her 5 by the Constitution or laws of this State or by the 6 Constitution or laws of the United States because of the 7 other person's race, color, religion, ancestry, national 8 origin, disability, gender, or sexual orientation or 9 because he or she perceives that the other person has one 10 or more of those characteristics. This offense, however, 11 does not include speech alone, except upon a showing that 12 the speech itself threatened violence against a specific 13 person or group of persons and that the defendant had the 14 apparent ability to carry out the threat. 15 (2) Knowingly defacing, damaging, or destroying the 16 real or personal property of any other person for the 17 purpose of intimidating or interfering with the free 18 exercise or enjoyment of any right or privilege secured 19 to the other person by the Constitution or laws of this 20 State or by the Constitution or laws of the United States 21 because of the other person's race, color, religion, 22 ancestry, national origin, disability, gender, or sexual 23 orientation or because he or she perceives that the other 24 person has one or more of those characteristics. 25 (d) Upon cancellation of or refusal to renew a policy 26 subject to this Section after an insured has submitted a 27 claim to the insurer that is the result of a hate crime 28 committed against the person or property of the insured, the 29 insurer shall report the cancellation or nonrenewal to the 30 Department. 31 (e) A violation of this Section is an improper claims 32 practice. 33 (f) Nothing in this Section prevents an insurer subject 34 to this Section from taking any of the actions specified in HB4371 Engrossed -3- LRB9210185JSpcB 1 subsection (b) on the basis of criteria not otherwise made 2 invalid by this Section or any other law or rule. 3 (215 ILCS 5/154.6) (from Ch. 73, par. 766.6) 4 Sec. 154.6. Acts constituting improper claims practice. 5 Any of the following acts by a company, if committed without 6 just cause and in violation of Section 154.5, constitutes an 7 improper claims practice: 8 (a) Knowingly misrepresenting to claimants and insureds 9 relevant facts or policy provisions relating to coverages at 10 issue.;11 (b) Failing to acknowledge with reasonable promptness 12 pertinent communications with respect to claims arising under 13 its policies.;14 (c) Failing to adopt and implement reasonable standards 15 for the prompt investigations and settlement of claims 16 arising under its policies.;17 (d) Not attempting in good faith to effectuate prompt, 18 fair and equitable settlement of claims submitted in which 19 liability has become reasonably clear.;20 (e) Compelling policyholders to institute suits to 21 recover amounts due under its policies by offering 22 substantially less than the amounts ultimately recovered in 23 suits brought by them.;24 (f) Engaging in activity which results in a 25 disproportionate number of meritorious complaints against the 26 insurer received by the Insurance Department.;27 (g) Engaging in activity which results in a 28 disproportionate number of lawsuits to be filed against the 29 insurer or its insureds by claimants.;30 (h) Refusing to pay claims without conducting a 31 reasonable investigation based on all available information.;32 (i) Failing to affirm or deny coverage of claims within 33 a reasonable time after proof of loss statements have been HB4371 Engrossed -4- LRB9210185JSpcB 1 completed.;2 (j) Attempting to settle a claim for less than the 3 amount to which a reasonable person would believe the 4 claimant was entitled, by reference to written or printed 5 advertising material accompanying or made part of an 6 application or establishing unreasonable caps or limits on 7 paint or materials when estimating vehicle repairs.;8 (k) Attempting to settle claims on the basis of an 9 application which was altered without notice to, or knowledge 10 or consent of, the insured.;11 (l) Making a claims payment to a policyholder or 12 beneficiary omitting the coverage under which each payment is 13 being made.;14 (m) Delaying the investigation or payment of claims by 15 requiring an insured, a claimant, or the physicians of either 16 to submit a preliminary claim report and then requiring 17 subsequent submission of formal proof of loss forms, 18 resulting in the duplication of verification.;19 (n) Failing in the case of the denial of a claim or the 20 offer of a compromise settlement to promptly provide a 21 reasonable and accurate explanation of the basis in the 22 insurance policy or applicable law for such denial or 23 compromise settlement.;24 (o) Failing to provide forms necessary to present claims 25 within 15 working days of a request with such explanations as 26 are necessary to use them effectively.;27 (p) Failing to adopt and implement reasonable standards 28 to verify that a repairer designated by the insurance company 29 to provide an estimate, perform repairs, or engage in any 30 other service in connection with an insured loss on a vehicle 31 is duly licensed under Section 5-301 of the Illinois Vehicle 32 Code.;33 (q) Failing to provide as a persistent tendency a 34 notification on any written estimate prepared by an insurance HB4371 Engrossed -5- LRB9210185JSpcB 1 company in connection with an insured loss that Illinois law 2 requires that vehicle repairers must be licensed in 3 accordance with Section 5-301 of the Illinois Vehicle Code.;4 (r) Engaging in any other acts which are in substance 5 equivalent to any of the foregoing. 6 (s) Canceling, refusing to issue, or refusing to renew a 7 policy in violation of Section 143.24c. 8 (Source: P.A. 90-340, eff. 8-8-97.)