Full Text of HB2962 98th General Assembly
HB2962 98TH GENERAL ASSEMBLY |
| | 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 |
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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.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | HB2962 | | LRB098 05470 RPM 35504 b |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Insurance Code is amended by | 5 | | changing 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 | 8 | | Certificate - Civil
penalty - Judicial
Review. ) | 9 | | (1) If after a hearing pursuant to Section 154.7 the | 10 | | Director
finds that company has engaged in an improper claims | 11 | | practice, he shall
order such company to cease and desist from | 12 | | such practices and, in the
exercise of reasonable discretion, | 13 | | may suspend
the company's certificate of authority for a period | 14 | | not to exceed 6
months or impose a civil penalty of up to | 15 | | $500,000 $250,000 , or both.
Pursuant to Section 401, the | 16 | | Director shall promulgate reasonable rules
and regulations | 17 | | establishing standards for the implementation of this Section.
| 18 | | (2) Any order of the Director pursuant to this Section is | 19 | | subject 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.
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| | | HB2962 | - 2 - | LRB098 05470 RPM 35504 b |
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| 1 | | (1) In any action by or against a company wherein
there is | 2 | | in issue the liability of a company on a policy or policies of
| 3 | | insurance or the amount of the loss payable thereunder, or for | 4 | | an unreasonable
delay in settling a claim, and it appears to | 5 | | the court that such action
or delay is without justification | 6 | | vexatious and unreasonable , the court may allow as part of the
| 7 | | taxable costs in the action reasonable attorney fees, other | 8 | | costs, plus
an amount not to exceed any one of the following | 9 | | amounts:
| 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 | 19 | | insured
against the same loss whether issued by the same or by | 20 | | different
companies, the court may fix the amount of the | 21 | | allowance so that the
total attorney fees on account of one | 22 | | loss shall not be increased by
reason of the fact that the | 23 | | insured brings separate suits on such policies.
| 24 | | (Source: P.A. 93-485, eff. 1-1-04.)
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