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.


LRB098 05470 RPM 35504 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2962LRB098 05470 RPM 35504 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Sections 154.6, 154.8, and 155 as follows:
 
6    (215 ILCS 5/154.8)  (from Ch. 73, par. 766.8)
7    Sec. 154.8. Cease and Desist Order - Suspension of
8Certificate - Civil penalty - Judicial Review.)
9    (1) If after a hearing pursuant to Section 154.7 the
10Director finds that company has engaged in an improper claims
11practice, he shall order such company to cease and desist from
12such practices and, in the exercise of reasonable discretion,
13may suspend the company's certificate of authority for a period
14not to exceed 6 months or impose a civil penalty of up to
15$500,000 $250,000, or both. Pursuant to Section 401, the
16Director shall promulgate reasonable rules and regulations
17establishing standards for the implementation of this Section.
18    (2) Any order of the Director pursuant to this Section is
19subject to judicial review under Section 407 of this Code.
20(Source: P.A. 86-846.)
 
21    (215 ILCS 5/155)  (from Ch. 73, par. 767)
22    Sec. 155. Attorney fees.

 

 

HB2962- 2 -LRB098 05470 RPM 35504 b

1    (1) In any action by or against a company wherein there is
2in issue the liability of a company on a policy or policies of
3insurance or the amount of the loss payable thereunder, or for
4an unreasonable delay in settling a claim, and it appears to
5the court that such action or delay is without justification
6vexatious and unreasonable, the court may allow as part of the
7taxable costs in the action reasonable attorney fees, other
8costs, plus an amount not to exceed any one of the following
9amounts:
10        (a) 75% 60% of the amount which the court or jury finds
11    such party is entitled to recover against the company,
12    exclusive of all costs;
13        (b) (blank) $60,000;
14        (c) the excess of the amount which the court or jury
15    finds such party is entitled to recover, exclusive of
16    costs, over the amount, if any, which the company offered
17    to pay in settlement of the claim prior to the action.
18    (2) Where there are several policies insuring the same
19insured against the same loss whether issued by the same or by
20different companies, the court may fix the amount of the
21allowance so that the total attorney fees on account of one
22loss shall not be increased by reason of the fact that the
23insured brings separate suits on such policies.
24(Source: P.A. 93-485, eff. 1-1-04.)