Full Text of SB3263 101st General Assembly
SB3263 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3263 Introduced 2/11/2020, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: |
|
215 ILCS 5/154.6 | from Ch. 73, par. 766.6 |
|
Amends the Illinois Insurance Code. Provides that it is an improper claims practice for a domestic, foreign, or alien company transacting business in this State to fail to pay applicable tax, title, and transfer fees for all first-party and third-party claims on a replacement vehicle in a private passenger automobile total loss vehicle claim if that act is committed knowingly in violation of the Code, has been committed with such frequency to indicate a persistent tendency to engage in that type of conduct, and is committed without just cause. Effective immediately.
|
| |
| | A BILL FOR |
|
| | | SB3263 | | LRB101 18644 BMS 68099 b |
|
| 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 Section 154.6 as follows:
| 6 | | (215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
| 7 | | Sec. 154.6. Acts constituting improper claims practice. | 8 | | Any of the
following acts by a company, if committed without | 9 | | just cause and in
violation of Section 154.5, constitutes an | 10 | | improper claims practice:
| 11 | | (a) Knowingly misrepresenting to claimants and insureds | 12 | | relevant
facts or policy provisions relating to coverages at | 13 | | issue;
| 14 | | (b) Failing to acknowledge with reasonable promptness | 15 | | pertinent
communications with respect to claims arising under | 16 | | its policies;
| 17 | | (c) Failing to adopt and implement reasonable standards for | 18 | | the
prompt investigations and settlement of claims arising | 19 | | under its policies;
| 20 | | (d) Not attempting in good faith to effectuate prompt, fair | 21 | | and
equitable settlement of claims submitted in which liability | 22 | | has become
reasonably clear;
| 23 | | (e) Compelling policyholders to institute suits to recover |
| | | SB3263 | - 2 - | LRB101 18644 BMS 68099 b |
|
| 1 | | amounts
due under its policies by offering substantially less | 2 | | than the amounts
ultimately recovered in suits brought by them;
| 3 | | (f) Engaging in activity which results in a | 4 | | disproportionate number
of meritorious complaints against the | 5 | | insurer received by the Insurance
Department;
| 6 | | (g) Engaging in activity which results in a | 7 | | disproportionate number
of lawsuits to be filed against the | 8 | | insurer or its insureds by
claimants;
| 9 | | (h) Refusing to pay claims without conducting a reasonable
| 10 | | investigation based on all available information;
| 11 | | (i) Failing to affirm or deny coverage of claims within a | 12 | | reasonable
time after proof of loss statements have been | 13 | | completed;
| 14 | | (j) Attempting to settle a claim for less than the amount | 15 | | to which a
reasonable person would believe the claimant was | 16 | | entitled, by reference
to written or printed advertising | 17 | | material accompanying or made part of
an application or | 18 | | establishing unreasonable caps or limits on paint
or materials
| 19 | | when estimating vehicle repairs;
| 20 | | (k) Attempting to settle claims on the basis of an | 21 | | application which
was altered without notice to, or knowledge | 22 | | or consent of, the insured;
| 23 | | (l) Making a claims payment to a policyholder or | 24 | | beneficiary
omitting the coverage under which each payment is | 25 | | being made;
| 26 | | (m) Delaying the investigation or payment of claims by |
| | | SB3263 | - 3 - | LRB101 18644 BMS 68099 b |
|
| 1 | | requiring an
insured, a claimant, or the physicians of either | 2 | | to submit a preliminary
claim report and then requiring | 3 | | subsequent submission of formal proof of
loss forms, resulting | 4 | | in the duplication of verification;
| 5 | | (n) Failing in the case of the denial of a claim or the | 6 | | offer of a
compromise settlement to promptly provide a | 7 | | reasonable and accurate
explanation of the basis in the | 8 | | insurance policy or applicable law for
such denial or | 9 | | compromise settlement;
| 10 | | (o) Failing to provide forms necessary to present claims | 11 | | within 15
working days of a request with such explanations as | 12 | | are necessary to use
them effectively;
| 13 | | (p) Failing to adopt and implement reasonable standards to | 14 | | verify that
a repairer designated by the insurance company to | 15 | | provide an estimate,
perform repairs, or engage in any other | 16 | | service in connection with an
insured loss on a vehicle is duly | 17 | | licensed under Section 5-301 of the
Illinois Vehicle Code;
| 18 | | (q) Failing to provide as a persistent tendency a | 19 | | notification on any
written estimate prepared by an insurance | 20 | | company in connection with an
insured loss that Illinois law | 21 | | requires that vehicle repairers must be
licensed in accordance | 22 | | with Section 5-301 of the Illinois Vehicle Code;
| 23 | | (r) Failing to pay applicable tax, title, and transfer fees | 24 | | for all first-party and third-party claims on a replacement | 25 | | vehicle in a private passenger automobile total loss vehicle | 26 | | claim; |
| | | SB3263 | - 4 - | LRB101 18644 BMS 68099 b |
|
| 1 | | (s) (r) Engaging in any other acts which are in substance | 2 | | equivalent to
any of the foregoing.
| 3 | | (Source: P.A. 90-340, eff. 8-8-97.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.
|
|