Public Act 90-0333 of the 90th General Assembly

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Public Act 90-0333

HB1117 Enrolled                                LRB9002571RCks

    AN ACT to amend the Criminal Code of 1961 by changing the
heading of Article 46, changing Sections  46-1,  46-2,  46-3,
46-4, and 46-5, and adding Section 46-1.1.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Criminal  Code  of  1961  is  amended  by
changing  the  heading of Article 46, changing Sections 46-1,
46-2, 46-3, 46-4, and 46-5,  and  adding  Section  46-1.1  as
follows:

    (720 ILCS 5/Art. 46 heading)
    ARTICLE 46. INSURANCE FRAUD, FRAUD ON THE GOVERNMENT,
                    AND RELATED OFFENSES

    (720 ILCS 5/46-1)
    Sec. 46-1.  Insurance fraud.
    (a)  A person commits the offense of insurance fraud when
he  or  she  who  knowingly  obtains,  attempts to obtain, or
causes  to  be  obtained,  by  deception,  control  over  the
property of an insurance company or  self-insured  entity  by
the making of a false claim on any policy of insurance issued
by  an insurance company or by the making of a false claim to
a self-insured entity,  intending  to  deprive  an  insurance
company  or  self-insured  entity  permanently of the use and
benefit of that property, commits insurance fraud.
    (b)  Sentence.
         (1)  A violation of this Section in which the  value
    of  the  property obtained or attempted to be obtained is
    $300 or less is a Class A misdemeanor.
         (2)  A violation of the Section in which  the  value
    of  the  property obtained or attempted to be obtained is
    more than $300 but not more than $10,000  is  a  Class  3
    felony.
         (3)  A  violation of this Section in which the value
    of the property obtained or attempted to be  obtained  is
    more than $10,000 but not more than $100,000 is a Class 2
    felony.
         (4)  A  violation of this Section in which the value
    of the property obtained or attempted to be  obtained  is
    more than $100,000 is a Class 1 felony.
    (c)  For  the purposes of this Article Section, where the
exact value of property obtained or attempted to be  obtained
is  either not alleged by the accused or not specifically set
by the terms of a the policy of insurance, the value  of  the
property  shall  be  the fair market replacement value of the
property  claimed  to  be  lost,  the  reasonable  costs   of
reimbursing  a  vendor  or  other claimant for services to be
rendered, or both.
    (d)  Definitions.  For the purposes of this Article:
         (1)  "Insurance company" means "company" as  defined
    under Section 2 of the Illinois Insurance Code.
         (2)  "Self-insured   entity"   means   any   person,
    business,  partnership, corporation, or organization that
    sets aside funds to meet his, her, or its  losses  or  to
    absorb  fluctuations  in  the  amount of loss, the losses
    being charged against the funds set aside or accumulated.
         (3)  "Obtain",   "obtains   control",   "deception",
    "property" and "permanent deprivation" have the  meanings
    ascribed to those terms in Article 15 of this Code.
         (4)  "Governmental   entity"   means  each  officer,
    board,   commission,   and   agency   created   by    the
    constitution,  whether  in the executive, legislative, or
    judicial  branch  of  State  government;  each   officer,
    department,   board,   commission,  agency,  institution,
    authority, university, and body politic and corporate  of
    the   State;   each   administrative  unit  or  corporate
    outgrowth of State  government  that  is  created  by  or
    pursuant  to statute, including units of local government
    and their  officers,  school  districts,  and  boards  of
    election  commissioners;  and each administrative unit or
    corporate outgrowth of the above and as may be created by
    executive order of the Governor.
(Source: P.A. 87-1134; 88-45.)

    (720 ILCS 5/46-1.1 new)
    Sec. 46-1.1.  Fraud on a governmental entity.
    (a)  A  person  commits  the  offense  of  fraud   on   a
governmental   entity  when  he  or  she  knowingly  obtains,
attempts to obtain, or causes to be obtained,  by  deception,
control  over  the property of any governmental entity by the
making of a false claim of bodily injury or of damage  to  or
loss  or  theft  of property against the governmental entity,
intending to deprive the governmental entity  permanently  of
the use and benefit of that property.
    (b)  Sentence.
         (1)  A  violation of this Section in which the value
    of the property obtained or attempted to be  obtained  is
    $300 or less is a Class A misdemeanor.
         (2)  A  violation of this Section in which the value
    of the property obtained or attempted to be  obtained  is
    more  than  $300  but  not more than $10,000 is a Class 3
    felony.
         (3)  A violation of this Section in which the  value
    of  the  property obtained or attempted to be obtained is
    more than $10,000 but not more than $100,000 is a Class 2
    felony.
         (4)  A violation of this Section in which the  value
    of  the  property obtained or attempted to be obtained is
    more than $100,000 is a Class 1 felony.
    (720 ILCS 5/46-2)
    Sec. 46-2.  Aggravated insurance fraud.
    (a)  A person commits the offense of aggravated insurance
fraud when he or she, within an  18  month  period,  obtains,
attempts  to  obtain, or causes to be obtained, by deception,
control  over  the  property  of  an  insurance  company   or
insurance  companies,  a  self-insured entity or self-insured
entities, or any governmental entity or governmental entities
by the making of 3 or more false claims allegedly arising out
of separate incidents or transactions in violation of Section
46-1 or 46-1.1 of this Code on any policy or policies  issued
by  an  insurance company or insurance companies intending to
deprive  an  insurance   company   or   insurance   companies
permanently of the use and benefit of that property.
    (b)  Sentence.  A  violation of this Section is a Class 1
felony, regardless of the value  of  the  property  obtained,
attempted to be obtained, or caused to be obtained.
(Source: P.A. 87-1134; 88-45.)

    (720 ILCS 5/46-3)
    Sec. 46-3.  Insurance fraud Conspiracy to commit fraud.
    (a)  A  person  commits  insurance  fraud  conspiracy  to
commit  fraud  when,  with  the  intent  that  a violation of
Section 46-1, 46-1.1, or 46-2 of this Code be  committed,  he
agrees  with  another to violate either Section 46-1, 46-1.1,
or 46-2.  No person  may  be  convicted  of  insurance  fraud
conspiracy  to  commit  fraud  unless an overt act or acts in
furtherance of the agreement is alleged and  proved  to  have
been  committed by him or by a co-conspirator and the accused
is a part of a  common  scheme  or  plan  to  engage  in  the
unlawful  activity.   Where the offense agreed intended to be
committed is a violation  of  Section  46-2,  the  person  or
persons  with  whom  the accused is alleged to have agreed to
commit the 3 or more violations of  Section  46-1  or  46-1.1
need not be the same person or persons for each violation, as
long  as  the accused was a part of the common scheme or plan
to engage in each of the 3 or more alleged violations.
    (b)  It is not a defense to insurance fraud conspiracy to
commit fraud that the person or persons with whom the accused
is alleged to have conspired:
         (1)  have not been prosecuted or convicted;
         (2)  have been convicted of a different offense;
         (3)  are not amenable to justice;
         (4)  have been acquitted; or
         (5)  lacked the capacity to commit an offense.
    (c)  Notwithstanding Section 8-5 of this Code,  a  person
may  be  convicted  and  sentenced  both  for  the offense of
insurance fraud conspiracy to commit fraud and for any  other
offense that is the object of the conspiracy.
    (d)  Insurance fraud Conspiracy to commit fraud involving
a violation of Section 46-1 or 46-1.1 of this Code is a Class
2  felony.   Insurance fraud conspiracy involving a violation
of Section 46-2 of this Code is a Class 1 felony.
(Source: P.A. 87-1134; 88-45.)

    (720 ILCS 5/46-4)
    Sec. 46-4.  Organizer of an  aggravated  insurance  fraud
conspiracy.
    (a)  A   person   commits   organizer  of  an  aggravated
insurance fraud conspiracy when he:
         (1)  with the intent that  a  violation  of  Section
    46-2  of  this  Code be committed, agrees with another to
    the commission of that offense; and
         (2)  with  respect  to  other  persons  within   the
    conspiracy, occupies a position of organizer, supervisor,
    financer, or other position of management.
    No  person may be convicted of organizer of an aggravated
insurance fraud conspiracy unless an overt  act  or  acts  in
furtherance  of  the  agreement is alleged and proved to have
been committed by him or by a co-conspirator and the  accused
is  part of a common scheme or plan to engage in the unlawful
activity.  For the purposes of this Section,  the  person  or
persons  with  whom  the accused is alleged to have agreed to
commit the 3 or more violations of Section 46-1 or 46-1.1  of
this  Code  need  not  be the same person or persons for each
violation, as long as the  accused  occupied  a  position  of
organizer,   supervisor,   financer,  or  other  position  of
management in each of the 3 or more alleged violations.
    (b)  It is not a defense to organizer  of  an  aggravated
insurance  fraud  conspiracy  that the person or persons with
whom the accused is alleged to have conspired:
         (1)  have not been prosecuted or convicted;
         (2)  have been convicted of a different offense;
         (3)  are not amenable to justice;
         (4)  have been acquitted; or
         (5)  lacked the capacity to commit an offense.
    (c)  Notwithstanding Section 8-5 of this Code,  a  person
may  be  convicted  and  sentenced  both  for  the offense of
organizer of an aggravated insurance fraud conspiracy and for
any other offense that is the object of the conspiracy.
    (d)  Organizer   of   an   aggravated   insurance   fraud
conspiracy is a Class X 1 felony.
(Source: P.A. 87-1134; 88-45.)

    (720 ILCS 5/46-5)
    Sec. 46-5. Civil damages for insurance fraud or fraud  on
a governmental entity.
    (a)  A  person who knowingly obtains, attempts to obtain,
or causes to be obtained,  by  deception,  control  over  the
property  of  any  insurance company by the making of a false
claim on  a  policy  of  insurance  issued  by  an  insurance
company,  or by the making of a false claim to a self-insured
entity  intending  to  deprive  an   insurance   company   or
self-insured  entity  permanently  of  the use and benefit of
that property, shall  be  civilly  liable  to  the  insurance
company or self-insured entity that paid the claim or against
whom  the claim was made or to the subrogee of that insurance
company or self-insured entity in an amount equal to either 3
times the value of the property wrongfully obtained or, if no
property was wrongfully obtained,  twice  the  value  of  the
property  attempted  to  be  obtained,  whichever  amount  is
greater,  plus  reasonable  attorneys  fees.   A  person  who
knowingly  obtains,  attempts  to  obtain,  or  causes  to be
obtained, by  deception,  control  over  the  property  of  a
governmental  entity by the making of a false claim of bodily
injury or  of  damage  to  or  loss  or  theft  of  property,
intending  to  deprive the governmental entity permanently of
the use and benefit of that property, shall be civilly liable
to the governmental entity that paid  the  claim  or  against
whom   the   claim  was  made  or  to  the  subrogee  of  the
governmental entity in an amount equal to either 3 times  the
value of the property wrongfully obtained or, if property was
not  wrongfully  obtained,  twice  the  value of the property
attempted to be obtained, whichever amount is  greater,  plus
reasonable attorneys fees.
    (b)  An  insurance  company  or  self-insured entity that
brings an action against a person  under  subsection  (a)  of
this  Section in bad faith shall be liable to that person for
twice the value of  the  property  claimed,  plus  reasonable
attorneys  fees.  In determining whether an insurance company
or self-insured entity acted in bad faith,  the  court  shall
relax  the rules of evidence to allow for the introduction of
any facts or other information on which the insurance company
or self-insured entity may have relied in bringing an  action
under subsection (a) of this Section.
    (c)  For  the  purposes  of this Section, where the exact
value of the property attempted to be obtained is either  not
alleged  by the claimant or not specifically set by the terms
of a the policy of insurance, the value of the property shall
be the fair market replacement value of the property  claimed
to  be  lost, the reasonable costs of reimbursing a vendor or
other claimant for services to be rendered, or both.
(Source: P.A. 87-1134; 88-45.)

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