97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3117

 

Introduced 2/23/2011, by Rep. Charles E. Jefferson

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/424  from Ch. 73, par. 1031

    Amends the Illinois Insurance Code to include in those practices defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance, basing the compensation of employees or contracted claims personnel, including performance bonuses or incentives, on a certain factor. Effective immediately.


LRB097 08430 RPM 48557 b

 

 

A BILL FOR

 

HB3117LRB097 08430 RPM 48557 b

1    AN ACT concerning insurance.
 
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 Section 424 as follows:
 
6    (215 ILCS 5/424)  (from Ch. 73, par. 1031)
7    Sec. 424. Unfair methods of competition and unfair or
8deceptive acts or practices defined. The following are hereby
9defined as unfair methods of competition and unfair and
10deceptive acts or practices in the business of insurance:
11    (1) The commission by any person of any one or more of the
12acts defined or prohibited by Sections 134, 143.24c, 147, 148,
13149, 151, 155.22, 155.22a, 236, 237, 364, and 469 of this Code.
14    (2) Entering into any agreement to commit, or by any
15concerted action committing, any act of boycott, coercion or
16intimidation resulting in or tending to result in unreasonable
17restraint of, or monopoly in, the business of insurance.
18    (3) Making or permitting, in the case of insurance of the
19types enumerated in Classes 1, 2, and 3 of Section 4, any
20unfair discrimination between individuals or risks of the same
21class or of essentially the same hazard and expense element
22because of the race, color, religion, or national origin of
23such insurance risks or applicants. The application of this

 

 

HB3117- 2 -LRB097 08430 RPM 48557 b

1Article to the types of insurance enumerated in Class 1 of
2Section 4 shall in no way limit, reduce, or impair the
3protections and remedies already provided for by Sections 236
4and 364 of this Code or any other provision of this Code.
5    (4) Engaging in any of the acts or practices defined in or
6prohibited by Sections 154.5 through 154.8 of this Code.
7    (5) Making or charging any rate for insurance against
8losses arising from the use or ownership of a motor vehicle
9which requires a higher premium of any person by reason of his
10physical handicap, race, color, religion, or national origin.
11    (6) Basing the compensation of employees or contracted
12claims personnel, including performance bonuses or incentives,
13on one the following:
14        (a) the number of policies canceled or rescinded;
15        (b) the number of times coverage is denied;
16        (c) the use of a quota or cap limiting or restricting
17    the number or volume of claims; or
18        (d) the use of an arbitrary quota or cap limiting or
19    restricting the amount paid to satisfy a claim without due
20    consideration to the merits of the claim.
21(Source: P.A. 92-399, eff. 8-16-01; 92-651, eff. 7-11-02;
2292-669, eff. 1-1-03.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.