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90_HB0044
720 ILCS 5/46-1
720 ILCS 5/46-2
720 ILCS 5/46-4
720 ILCS 5/46-5
Amends the Criminal Code of 1961. Provides that a person
commits insurance fraud when he or she makes a false claim
against a self-insured entity, insurance company, or
governmental unit (now an insurance company). Provides that
a person commits the offense of aggravated insurance fraud
when he or she makes 3 or more false claims against an
insurance company, self-insured entity, or governmental unit
(now only an insurance company) within an 18-month period.
Provides that organizing an aggravated insurance fraud
conspiracy is a Class X felony (now a Class 1 felony).
Provides for civil damages for insurance fraud committed
against a self-insured entity or a governmental unit.
LRB9000679MWpc
LRB9000679MWpc
1 AN ACT to amend the Criminal Code of 1961 by changing
2 Sections 46-1, 46-2, 46-4, and 46-5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Criminal Code of 1961 is amended by
6 changing Sections 46-1, 46-2, 46-4, and 46-5 as follows:
7 (720 ILCS 5/46-1)
8 Sec. 46-1. Insurance fraud.
9 (a) A person commits the offense of insurance fraud when
10 he or she who knowingly obtains, attempts to obtain, or
11 causes to be obtained, by deception, control over the
12 property of: (1) an insurance company or self-insured entity
13 by the making of a false claim on any policy of insurance
14 issued by an insurance company or self-insured entity,
15 intending to deprive an insurance company or self-insured
16 entity permanently of the use and benefit of that property;
17 or (2) any governmental unit by the making of a false claim
18 of bodily injury or of damage to or loss, or theft of
19 property against the governmental unit, intending to deprive
20 the governmental unit permanently of the use and benefit of
21 that property, commits insurance fraud.
22 (b) Sentence.
23 (1) A violation of this Section in which the value
24 of the property obtained or attempted to be obtained is
25 $300 or less is a Class A misdemeanor.
26 (2) A violation of the Section in which the value
27 of the property obtained or attempted to be obtained is
28 more than $300 but not more than $10,000 is a Class 3
29 felony.
30 (3) A violation of this Section in which the value
31 of the property obtained or attempted to be obtained is
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1 more than $10,000 but not more than $100,000 is a Class 2
2 felony.
3 (4) A violation of this Section in which the value
4 of the property obtained or attempted to be obtained is
5 more than $100,000 is a Class 1 felony.
6 (c) For the purposes of this Article Section, where the
7 exact value of property obtained or attempted to be obtained
8 is either not alleged by the accused or not specifically set
9 by the terms of the policy of insurance, the value of the
10 property shall be the fair market replacement value of the
11 property claimed to be lost, the reasonable costs of
12 reimbursing a vendor or other claimant for services to be
13 rendered, or both.
14 (d) Definitions. For the purpose of this Article:
15 (1) "Governmental unit" means the State of Illinois
16 or any county, city, village, town or other municipality
17 or any agency thereof, including any governing or
18 administrative body organized under the laws of this
19 State or under the laws of any county, city, village,
20 town, or other municipality.
21 (2) "Insurance company" means "company" as defined
22 under Section 2 of the Illinois Insurance Code.
23 (3) "Self-insured entity" means any person,
24 business, partnership, corporation, or organization that
25 sets aside funds to meet his, her, or its losses or to
26 absorb fluctuations in the amount of loss, the losses
27 being charged against the funds set aside or accumulated.
28 (Source: P.A. 87-1134; 88-45.)
29 (720 ILCS 5/46-2)
30 Sec. 46-2. Aggravated insurance fraud.
31 (a) A person commits the offense of aggravated insurance
32 fraud when he or she, within an 18 month period, obtains,
33 attempts to obtain, or causes to be obtained, by deception,
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1 control over the property of: (1) an insurance company or
2 insurance companies or a self-insured entity or self-insured
3 entities by the making of 3 or more false claims allegedly
4 arising out of separate incidents or transactions on any
5 policy or policies issued by an insurance company or
6 insurance companies or by a self-insured entity or
7 self-insured entities intending to deprive an insurance
8 company or insurance companies or a self-insured entity or
9 self-insured entities permanently of the use and benefit of
10 that property; or (2) any governmental unit or governmental
11 units by the making of 3 or more false claims of bodily
12 injury or of damage to or loss or theft of property allegedly
13 arising out of separate incidents or transactions against the
14 governmental unit or governmental units, intending to deprive
15 the governmental unit or governmental units permanently of
16 the use and benefit of that property.
17 (b) Sentence. A violation of this Section is a Class 1
18 felony, regardless of the value of the property obtained,
19 attempted to be obtained, or caused to be obtained.
20 (Source: P.A. 87-1134; 88-45.)
21 (720 ILCS 5/46-4)
22 Sec. 46-4. Organizer of an aggravated insurance fraud
23 conspiracy.
24 (a) A person commits organizer of an aggravated
25 insurance fraud conspiracy when he:
26 (1) with the intent that a violation of Section
27 46-2 of this Code be committed, agrees with another to
28 the commission of that offense; and
29 (2) with respect to other persons within the
30 conspiracy, occupies a position of organizer, supervisor,
31 financer, or other position of management.
32 No person may be convicted of organizer of an aggravated
33 insurance fraud conspiracy unless an overt act or acts in
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1 furtherance of the agreement is alleged and proved to have
2 been committed by him or by a co-conspirator and the accused
3 is part of a common scheme or plan to engage in the unlawful
4 activity. For the purposes of this Section, the person or
5 persons with whom the accused is alleged to have agreed to
6 commit the 3 or more violations of Section 46-1 of this Code
7 need not be the same person or persons for each violation, as
8 long as the accused occupied a position of organizer,
9 supervisor, financer, or other position of management in each
10 of the 3 or more alleged violations.
11 (b) It is not a defense to organizer of an aggravated
12 insurance fraud conspiracy that the person or persons with
13 whom the accused is alleged to have conspired:
14 (1) have not been prosecuted or convicted;
15 (2) have been convicted of a different offense;
16 (3) are not amenable to justice;
17 (4) have been acquitted; or
18 (5) lacked the capacity to commit an offense.
19 (c) Notwithstanding Section 8-5 of this Code, a person
20 may be convicted and sentenced both for the offense of
21 organizer of an aggravated insurance fraud conspiracy and for
22 any other offense that is the object of the conspiracy.
23 (d) Organizer of an aggravated insurance fraud
24 conspiracy is a Class X 1 felony.
25 (Source: P.A. 87-1134; 88-45.)
26 (720 ILCS 5/46-5)
27 Sec. 46-5. Civil damages for insurance fraud.
28 (a) A person who knowingly obtains, attempts to obtain,
29 or causes to be obtained, by deception, control over the
30 property of any insurance company by the making of a false
31 claim on a policy of insurance issued by an insurance
32 company, or self-insured entity intending to deprive an
33 insurance company or self-insured entity permanently of the
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1 use and benefit of that property, shall be civilly liable to
2 the insurance company or self-insured entity that paid the
3 claim or against whom the claim was made or to the subrogee
4 of that insurance company or self-insured entity in an amount
5 equal to either 3 times the value of the property wrongfully
6 obtained or, if no property was wrongfully obtained, twice
7 the value of the property attempted to be obtained, whichever
8 amount is greater, plus reasonable attorneys fees. A person
9 who knowingly obtains, attempts to obtain, or causes to be
10 obtained, by deception, control over the property of a
11 governmental unit by the making of a false claim of bodily
12 injury or of damage to or loss or theft of property,
13 intending to deprive the governmental unit permanently of the
14 use and benefit of that property, shall be civilly liable to
15 the governmental unit that paid the claim or against whom the
16 claim was made or to the subrogee of the governmental unit in
17 an amount equal to either 3 times the value of the property
18 wrongfully obtained or, if property was not wrongfully
19 obtained, twice the value of the property attempted to be
20 obtained, whichever amount is greater, plus reasonable
21 attorneys fees.
22 (b) An insurance company or self-insured entity that
23 brings an action against a person under subsection (a) of
24 this Section in bad faith shall be liable to that person for
25 twice the value of the property claimed, plus reasonable
26 attorneys fees. In determining whether an insurance company
27 or self-insured entity acted in bad faith, the court shall
28 relax the rules of evidence to allow for the introduction of
29 any facts or other information on which the insurance company
30 or self-insured entity may have relied in bringing an action
31 under subsection (a) of this Section.
32 (c) For the purposes of this Section, where the exact
33 value of the property attempted to be obtained is either not
34 alleged by the claimant or not specifically set by the terms
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1 of the policy of insurance, the value of the property shall
2 be the fair market replacement value of the property claimed
3 to be lost, the reasonable costs of reimbursing a vendor or
4 other claimant for services to be rendered, or both.
5 (Source: P.A. 87-1134; 88-45.)