Full Text of HB4548

LRB104 17835 JRC 31269 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4548

Introduced 1/30/2026, by Rep. Dan Ugaste and Kevin Schmidt

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Insurance Code. Provides that if an insurer tenders the lesser of the policy limits or the amount demanded by the claimant in a statutory or common law action alleging bad faith within 90 days after receiving actual notice of a claim accompanied by sufficient evidence to support the amount of the claim, no liability may be imposed against the insurer. Provides that if a named insured, omnibus insured, or named beneficiary is awarded a declaratory judgment in an action in State or federal court to determine insurance coverage after the insurer has made a total coverage denial of a claim, the court must award reasonable attorney's fees to the named insured, omnibus insured, or named beneficiary who has prevailed in the action. Creates a presumption that, in any action by or against a company, if there is an issue of the liability of a company, and it appears to the court that such action or delay is vexatious and unreasonable, the court may allow as part of the taxable costs in the action reasonable attorney's fees, as determined by the lodestar fee method of multiplying the number of hours reasonably spent on a case by a reasonable hourly rate, adjusted up or down by a multiplier to account for factors such as the quality of the work, complexity of the case, or risk of loss. Provides that this presumption may be overcome only in rare and exceptional circumstances. Amends the Code of Civil Procedure. Changes the percentage from 25% to 50% that triggers joint and several liability of a defendant of all damages. Provides criteria for the admissibility of unpaid, past, and future medical expenses in personal injury and wrongful death cases. Amends the Premises Liability Act. Provides that in an action for damages against the owner, lessor, operator, or manager of commercial or real property brought by a person lawfully on the property who was injured by the criminal act of a third party, the trier of fact must consider the fault of all persons who contributed to the injury. Makes other changes. Applies to all actions filed on or after the effective date of the amendatory Act. Effective immediately.

A BILL FOR

AN ACT concerning civil law.

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 changing Section 155 and by adding Section 154.11 as follows:

(215 ILCS 5/154.11 new)

Sec. 154.11. Immunity from liability.

(a) If the insurer tenders the lesser of the policy limits or the amount demanded by the claimant in a statutory or common law action alleging bad faith within 90 days after receiving actual notice of a claim accompanied by sufficient evidence to support the amount of the claim, no liability may be imposed against the insurer. If the insurer fails to tender the limits or amount within 90 days, then the fact that the insurer could have done so but did not is inadmissible in an action to establish bad faith. If the insurer fails to tender that amount within 90 days, then the statute of limitations is extended for an additional 90 days.

(b) In any statutory or common law action alleging bad faith, mere negligence alone is insufficient to constitute bad faith. The insured, claimant, and representative of the insured or claimant have a duty to act in good faith in furnishing information regarding the claim, in making demands of the insurer, in setting deadlines, and in attempting to settle the claim. This duty does not create a separate cause of action. In any action for bad faith against an insurer, the trier of fact may consider whether the insured, claimant, or representative of the insured or claimant did not act in good faith under this subsection, in which case the trier of fact may reasonably reduce the amount of damages awarded against the insurer.

(c) If 3 or more third-party claimants have competing claims arising out of a single occurrence, which in total may exceed the available policy limits of one or more of the insured parties who may be liable to the third-party claimants, an insurer is not liable beyond the available policy limits for failure to pay all or any portion of the available policy limits to one or more of the third-party claimants if, within 90 days after receiving notice of the competing claims in excess of the available policy limits, the insurer:

(1) files an interpleader action under the Code of Civil Procedure. If the claims of the competing third-party claimants are found to be in excess of the policy limits, the third-party claimants are entitled to a prorated share of the policy limits as determined by the trier of fact. An insurer's interpleader action does not alter or amend the insurer's obligation to defend its insured.

(2) Makes the entire amount of the policy limits available for payment to the competing third-party claimants before a qualified arbitrator agreed to by the insurer and third-party claimants at the expense of the insurer. The third-party claimants are entitled to a prorated share of the policy limits as determined by the arbitrator, who must consider the comparative fault, if any, of each third-party claimant, and the total likely outcome at trial based upon the total of the economic and noneconomic damages submitted to the arbitrator for consideration. A third-party claimant whose claim is resolved by the arbitrator must execute and deliver a general release to the insured party whose claim is resolved by the proceeding.

(215 ILCS 5/155) (from Ch. 73, par. 767)

Sec. 155. Attorney fees.

(1) In any action by or against a company wherein 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 for an unreasonable delay in settling a claim, and it appears to the court that such action or delay is vexatious and unreasonable, the court may allow as part of the taxable costs in the action reasonable attorney fees, as determined by the lodestar fee method of multiplying the number of hours reasonably spent on a case by a reasonable hourly rate, adjusted up or down by a multiplier to account for factors such as the quality of the work, complexity of the case, or risk of loss. This presumption of using the lodestar method may be overcome only in a rare and exceptional circumstance with evidence that competent counsel could not otherwise be retained. other costs, plus an amount not to exceed any one of the following amounts:

(a) 60% of the amount which the court or jury finds such party is entitled to recover against the company, exclusive of all costs;

(b) $60,000;

(c) the excess of the amount which the court or jury finds such party is entitled to recover, exclusive of costs, over the amount, if any, which the company offered to pay in settlement of the claim prior to the action.

(2) Where there are several policies insuring the same insured against the same loss whether issued by the same or by different companies, the court may fix the amount of the allowance so that the total attorney fees on account of one loss shall not be increased by reason of the fact that the insured brings separate suits on such policies.

(3) If a named insured, omnibus insured, or named beneficiary is awarded a declaratory judgment in an action in State or federal court to determine insurance coverage after the insurer has made a total coverage denial of a claim, the court must award reasonable attorney's fees to the named insured, omnibus insured, or named beneficiary who has prevailed in the action. This right may not be transferred to, assigned to, or acquired in any other manner by anyone other than a named insured, omnibus insured, or named beneficiary. A defense offered by an insurer under a reservation of rights does not constitute a denial of coverage claim. The attorney's fees are limited to those incurred in the action brought under this Code for declaratory relief to determine coverage of insurance issued under this Code. This Section does not apply to any action arising under a residential or commercial property insurance policy.

(Source: P.A. 93-485, eff. 1-1-04.)

Section 10. The Code of Civil Procedure is amended by changing Section 2-1117 and by adding Part 30 to Article VIII as follows:

(735 ILCS 5/2-1117) (from Ch. 110, par. 2-1117)

Sec. 2-1117. Joint liability. Except as provided in Section 2-1118, in actions on account of bodily injury or death or physical damage to property, based on negligence, or product liability based on strict tort liability, all defendants found liable are jointly and severally liable for plaintiff's past and future medical and medically related expenses. Any defendant whose fault, as determined by the trier of fact, is less than 50% 25% of the total fault of all tortfeasors, including, but not limited to, the plaintiff's employer, nonparties, entities that have settled, or any other person that the trier of fact finds was at fault and a proximate cause of the injury or damage for which recovery is sought by attributable to the plaintiff, the defendants sued by the plaintiff, and any third party defendant except the plaintiff's employer, shall be severally liable for all other damages. Any defendant whose fault, as determined by the trier of fact, is 50% 25% or greater of the total fault of all tortfeasors, including, but not limited to, the plaintiff's employer, nonparties, entities that have settled, or any other person that the trier of fact finds was at fault and a proximate cause of the injury or damage for which recovery is sought by the plaintiff attributable to the plaintiff, the defendants sued by the plaintiff, and any third party defendants except the plaintiff's employer, shall be jointly and severally liable for all other damages.

The changes to this Section made by this amendatory Act of the 104th General Assembly apply to actions filed on or after the effective date of this amendatory Act of the 104th General Assembly.

(Source: P.A. 93-10, eff. 6-4-03; 93-12, eff. 6-4-03.)

(735 ILCS 5/Art. VIII Pt. 30 heading new)

Part 30. Medical Expenses

(735 ILCS 5/8-3001 new)

Sec. 8-3001. Medical expenses.

(a) Definitions. As used in this Section:

"Factoring company" means a person that purchases health care provider's accounts receivable at a discount below the invoice value of the accounts.

"Health care coverage" means any third-party health care or disability services financing arrangement, including, but not limited to, arrangements with entities certified or authorized under federal law or under the Illinois Insurance Code, State or federal health care benefit programs, workers' compensation, and personal injury protection.

"Health care provider" means any of the following: a health care facility or health care practitioner as defined under Section 8-2001 of this Code; clinical laboratory providing services in this State or services to health care providers in this State, if the clinical laboratory is certified by the Centers for Medicare and Medicaid Services under the federal Clinical Laboratory Improvement Amendments and the federal rules adopted thereunder; a federally qualified health center as defined in 42 U.S.C. 1396d(l)(2)(B) as that definition existed on the effective date of this amendatory Act of the 104th General Assembly; and a pharmacy as defined under the Pharmacy Practice Act of 1987.

"Letter of protection" means any arrangement by which a health care provider renders treatment in exchange for a promise of payment for the claimant's medical expenses from any judgment or settlement of a personal injury or wrongful death action. This includes any such arrangement, regardless of whether referred to as a letter of protection.

(b) Admissible evidence of medical treatment or service expenses. Evidence offered to prove the amount of damages for past or future medical treatment or services in a personal injury or wrongful death action is admissible as provided in this subsection.

(1) Evidence offered to prove the amount of damages for past medical treatment or services that have been satisfied is limited to evidence of the amount actually paid regardless of the source of payment.

(2) Evidence offered to prove the amount necessary to satisfy unpaid charges for incurred medical treatment or services shall include, but is not limited to, evidence as provided in this paragraph.

(A) If the claimant has health care coverage other than Medicare or Medicaid, evidence of the amount the health care coverage is obligated to pay the health care provider to satisfy the charges for the claimant's incurred medical treatment or services, plus the claimant's share of medical expenses under the insurance contract or regulation.

(B) If the claimant has health care coverage but obtains treatment under a letter of protection or otherwise does not submit charges for any health care provider's medical treatment or services to health care coverage, evidence of the amount the claimant's health care coverage would pay the health care provider to satisfy the past unpaid medical charges under the insurance contract or regulation, plus the claimant's share of medical expenses under the insurance contract or regulation, if the claimant obtained medical services or treatment under the health care coverage.

(C) If the claimant does not have health care coverage or has health care coverage through Medicare or Medicaid, evidence of 120% of the Medicare reimbursement rate in effect on the date of the claimant's incurred medical treatment or services, or, if there is no applicable Medicare rate for a service, 170% of the applicable State Medicaid rate.

(D) If the claimant obtains medical treatment or services under a letter of protection and the health care provider later transfers the right to receive payment under the letter of protection to a third party, evidence of the amount the third party paid or agreed to pay the health care provider in exchange for the right to receive payment under the letter of protection.

(E) Any evidence of reasonable amounts billed to the claimant for medically necessary treatment or medically necessary services provided to the claimant.

(3) Evidence offered to prove the amount of damages for any future medical treatment or services the claimant will receive includes, but is not limited to, evidence as provided in this paragraph.

(A) If the claimant has health care coverage other than Medicare or Medicaid or is eligible for any such health care coverage, evidence of the amount for which the future charges of health care providers could be satisfied if submitted to the health care coverage, plus the claimant's share of medical expenses under the insurance contract or regulation.

(B) If the claimant does not have health care coverage or has health care coverage through Medicare or Medicaid, or is eligible for the health care coverage, evidence of 120% of the Medicare reimbursement rate in effect at the time of trial for the medical treatment or services the claimant will receive, or, if there is no applicable Medicare rate for a service, 170% of the applicable state Medicaid rate.

(C) Any evidence of reasonable future amounts to be billed to the claimant for medically necessary treatment or medically necessary services.

(4) This subsection does not impose an affirmative duty upon any party to seek a reduction in billed charges to which the party is not contractually entitled.

(5) Individual contracts between providers and authorized commercial insurers or authorized health maintenance organizations are not subject to discovery or disclosure and are not admissible into evidence.

(c) Letters of protection; required disclosures. In a personal injury or wrongful death action, as a condition precedent to asserting any claim for medical expenses for treatment rendered under a letter of protection, the claimant must disclose:

(1) A copy of the letter of protection.

(2) All billings for the claimant's medical expenses, which must be itemized and, to the extent applicable, coded according to:

(A) For health care providers billing at the provider level, the American Medical Association's Current Procedural Terminology (CPT) or the Healthcare Common Procedure Coding System (HCPCS) in effect on the date the services were rendered.

(B) For health care providers billing at the facility level for expenses incurred in a clinical or outpatient setting, including when billing through an Ambulatory Payment Classification (APC) or Enhanced Ambulatory Patient Grouping (EAPG); the International Classification of Diseases (ICD) diagnosis code and, if applicable, the American Medical Association's Current Procedural Terminology (CPT) in effect on the date the services were rendered.

(C) For health care providers billing at the facility level for expenses incurred in an inpatient setting, including when billing through a Diagnosis Related Group (DRG); the International Classification of Diseases (ICD) diagnosis and procedure codes in effect on the date in which the claimant is discharged.

(3) If the health care provider sells the accounts receivable for the claimant's medical expenses to a factoring company or other third party:

(A) The name of the factoring company or other third party who purchased the accounts.

(B) The dollar amount for which the factoring company or other third party purchased the accounts, including any discount provided below the invoice amount.

(4) Whether the claimant, at the time medical treatment was rendered, had health care coverage and, if so, the identity of the coverage.

(5) Whether the claimant was referred for treatment under a letter of protection and, if so, the identity of the person who made the referral. If the referral is made by the claimant's attorney, disclosure of the referral is permitted, and evidence of the referral is admissible. The financial relationship between a law firm and a medical provider, including the number of referrals, frequency, and financial benefit obtained, is relevant to the issue of the bias of a testifying medical provider.

(d) Damages recoverable for medical treatment or service expenses. The damages that may be recovered by a claimant in a personal injury or wrongful death action for the reasonable and necessary cost or value of medical care rendered may not include any amount in excess of the evidence of medical treatment and services expenses admitted under subsection (b), and also may not exceed the sum of the following:

(1) amounts actually paid by or on behalf of the claimant to a health care provider who rendered medical treatment or services;

(2) amounts necessary to satisfy charges for medical treatment or services that are due and owing but at the time of trial are not yet satisfied; and

(3) amounts necessary to provide for any reasonable and necessary medical treatment or services the claimant will receive in the future.

Section 15. The Premises Liability Act is amended by adding Sections 5.1 and 5.2 as follows:

(740 ILCS 130/5.1 new)

Sec. 5.1. Premises liability for criminal acts of third parties. In an action for damages against the owner, lessor, operator, or manager of commercial or real property brought by a person lawfully on the property who was injured by the criminal act of a third party, the trier of fact must consider the fault of all persons who contributed to the injury.

(740 ILCS 130/5.2 new)

Sec. 5.2. Multifamily residential property safety and security.

(a) As used in this Section:

"Multifamily residential property" means a residential building, or group of residential buildings, such as apartments, townhouses, or condominiums, consisting of at least 5 dwelling units on a particular parcel.

"Parcel" means real property for which a distinct parcel identification number is assigned to the property by the property appraiser for the county in which the property is located.

(b) The owner or principal operator of a multifamily residential property that substantially implements the following security measures on that property has a presumption against liability in connection with criminal acts that occur on the premises that are committed by third parties who are not employees or agents of the owner or operator:

(1) A security camera system at points of entry and exit that records and maintains video footage that is retrievable for at least 30 days to assist in offender identification and apprehension.

(2) A lighted parking lot illuminated at an intensity of at least an average of 1.8 foot-candles per square foot at 18 inches above the surface from dusk until dawn or controlled by photocell or any similar electronic device that provides light from dusk until dawn.

(3) Lighting in walkways, laundry rooms, common areas, and porches. The lighting must be illuminated from dusk until dawn or controlled by photocell or any similar electronic device that provides light from dusk until dawn.

(4) At least a one-inch deadbolt in each dwelling unit door.

(5) A locking device on each window, each exterior sliding door, and any other doors not used for community purposes.

(6) Locked gates with key or fob access along pool fence areas.

(7) A peephole or door viewer on each dwelling unit door that does not include a window or that does not have a window next to the door.

(c) By January 1, 2028, the owner or principal operator of a multifamily residential property must provide proper crime deterrence and safety training to its current employees. After January 1, 2028, the owner or principal operator must provide this training to an employee within 60 days after the hiring date for purposes of this paragraph. For purposes of this subsection, "proper crime deterrence and safety training" means training that trains and familiarizes employees with the security principles, devices, measures, and standards set forth under subsection (b), and that is reviewed at least every 3 years and updated as necessary. The owner or principal operator may request a law enforcement agency to review the training curriculum.

(d) For purposes of establishing the presumption against liability under subsection (b), the burden of proof is on the owner or principal operator to demonstrate that the owner or principal operator has substantially implemented the security measures specified in subsection (b).

(e) This Section does not establish a private cause of action.

Section 97. This Act may not be construed to impair any right under an insurance contract in effect on or before the effective date of this Act. To the extent that this Act affects a right under an insurance contract, this Act applies to an insurance contract issued or renewed after the effective date of this Act.

Section 98. Except as otherwise expressly provided in Section 10, this Act applies to all actions filed on or after the effective date of this Act.

Section 99. Effective date. This Act takes effect upon becoming law.