97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3463

 

Introduced 2/24/2011, by Rep. Greg Harris

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/155  from Ch. 73, par. 767

    Amends the Illinois Insurance Code. Provides that in any proceeding in court or in arbitration (now, in any action) by or against a company where there is at issue the liability of a company on an insurance policy or the amount of the loss payable, or for an unreasonable delay in settling a claim, the court, arbitrator, or majority of the arbitration panel may allow as part of the costs in the proceeding reasonable attorney fees and certain other costs. Makes corresponding changes in the provision concerning attorney fees.


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A BILL FOR

 

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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 155 as follows:
 
6    (215 ILCS 5/155)  (from Ch. 73, par. 767)
7    Sec. 155. Attorney fees.
8    (1) In any proceeding in court or in arbitration action by
9or against a company wherein there is in issue the liability of
10a company on a policy or policies of insurance or the amount of
11the loss payable thereunder, or for an unreasonable delay in
12settling a claim, and it appears to the court, arbitrator, or
13majority of the arbitration panel that such action or delay is
14vexatious and unreasonable, the court, arbitrator, or majority
15of the arbitration panel may allow as part of the taxable costs
16in the proceeding action reasonable attorney fees, other costs,
17plus an amount not to exceed any one of the following amounts:
18        (a) 60% of the amount which the court, or jury,
19    arbitrator, or majority of the arbitration panel finds such
20    party is entitled to recover against the company, exclusive
21    of all costs;
22        (b) $60,000;
23        (c) the excess of the amount which the court, or jury,

 

 

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1    arbitrator, or majority of the arbitration panel finds such
2    party is entitled to recover, exclusive of costs, over the
3    amount, if any, which the company offered to pay in
4    settlement of the claim prior to the proceeding action.
5    (2) Where there are several policies insuring the same
6insured against the same loss whether issued by the same or by
7different companies, the court, arbitrator, or majority of the
8arbitration panel may fix the amount of the allowance so that
9the total attorney fees on account of one loss shall not be
10increased by reason of the fact that the insured brings
11separate proceedings suits on such policies.
12(Source: P.A. 93-485, eff. 1-1-04.)