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90_HB1117eng
720 ILCS 5/Art. 46 heading
720 ILCS 5/46-1
720 ILCS 5/46-1.1 new
720 ILCS 5/46-2
720 ILCS 5/46-3
720 ILCS 5/46-4
720 ILCS 5/46-5
Amends the Criminal Code of 1961. Expands the Insurance
Fraud Article to include fraud on the government. Includes
self-insured entities in the various fraud provisions.
Establishes penalties based upon the value of the property
obtained or attempted to be obtained fraudulently. Changes
the names of these various offenses that limit them just to
insurance fraud.
LRB9002571RCks
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1 AN ACT to amend the Criminal Code of 1961 by changing the
2 heading of Article 46, changing Sections 46-1, 46-2, 46-3,
3 46-4, and 46-5, and adding Section 46-1.1.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Criminal Code of 1961 is amended by
7 changing the heading of Article 46, changing Sections 46-1,
8 46-2, 46-3, 46-4, and 46-5, and adding Section 46-1.1 as
9 follows:
10 (720 ILCS 5/Art. 46 heading)
11 ARTICLE 46. INSURANCE FRAUD, FRAUD ON THE GOVERNMENT,
12 AND RELATED OFFENSES
13 (720 ILCS 5/46-1)
14 Sec. 46-1. Insurance fraud.
15 (a) A person commits the offense of insurance fraud when
16 he or she who knowingly obtains, attempts to obtain, or
17 causes to be obtained, by deception, control over the
18 property of an insurance company or self-insured entity by
19 the making of a false claim on any policy of insurance issued
20 by an insurance company or by the making of a false claim to
21 a self-insured entity, intending to deprive an insurance
22 company or self-insured entity permanently of the use and
23 benefit of that property, commits insurance fraud.
24 (b) Sentence.
25 (1) A violation of this Section in which the value
26 of the property obtained or attempted to be obtained is
27 $300 or less is a Class A misdemeanor.
28 (2) A violation of the Section in which the value
29 of the property obtained or attempted to be obtained is
30 more than $300 but not more than $10,000 is a Class 3
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1 felony.
2 (3) A violation of this Section in which the value
3 of the property obtained or attempted to be obtained is
4 more than $10,000 but not more than $100,000 is a Class 2
5 felony.
6 (4) A violation of this Section in which the value
7 of the property obtained or attempted to be obtained is
8 more than $100,000 is a Class 1 felony.
9 (c) For the purposes of this Article Section, where the
10 exact value of property obtained or attempted to be obtained
11 is either not alleged by the accused or not specifically set
12 by the terms of a the policy of insurance, the value of the
13 property shall be the fair market replacement value of the
14 property claimed to be lost, the reasonable costs of
15 reimbursing a vendor or other claimant for services to be
16 rendered, or both.
17 (d) Definitions. For the purposes of this Article:
18 (1) "Insurance company" means "company" as defined
19 under Section 2 of the Illinois Insurance Code.
20 (2) "Self-insured entity" means any person,
21 business, partnership, corporation, or organization that
22 sets aside funds to meet his, her, or its losses or to
23 absorb fluctuations in the amount of loss, the losses
24 being charged against the funds set aside or accumulated.
25 (3) "Obtain", "obtains control", "deception",
26 "property" and "permanent deprivation" have the meanings
27 ascribed to those terms in Article 15 of this Code.
28 (4) "Governmental entity" means each officer,
29 board, commission, and agency created by the
30 constitution, whether in the executive, legislative, or
31 judicial branch of State government; each officer,
32 department, board, commission, agency, institution,
33 authority, university, and body politic and corporate of
34 the State; each administrative unit or corporate
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1 outgrowth of State government that is created by or
2 pursuant to statute, including units of local government
3 and their officers, school districts, and boards of
4 election commissioners; and each administrative unit or
5 corporate outgrowth of the above and as may be created by
6 executive order of the Governor.
7 (Source: P.A. 87-1134; 88-45.)
8 (720 ILCS 5/46-1.1 new)
9 Sec. 46-1.1. Fraud on a governmental entity.
10 (a) A person commits the offense of fraud on a
11 governmental entity when he or she knowingly obtains,
12 attempts to obtain, or causes to be obtained, by deception,
13 control over the property of any governmental entity by the
14 making of a false claim of bodily injury or of damage to or
15 loss or theft of property against the governmental entity,
16 intending to deprive the governmental entity permanently of
17 the use and benefit of that property.
18 (b) Sentence.
19 (1) A violation of this Section in which the value
20 of the property obtained or attempted to be obtained is
21 $300 or less is a Class A misdemeanor.
22 (2) A violation of this Section in which the value
23 of the property obtained or attempted to be obtained is
24 more than $300 but not more than $10,000 is a Class 3
25 felony.
26 (3) A violation of this Section in which the value
27 of the property obtained or attempted to be obtained is
28 more than $10,000 but not more than $100,000 is a Class 2
29 felony.
30 (4) A violation of this Section in which the value
31 of the property obtained or attempted to be obtained is
32 more than $100,000 is a Class 1 felony.
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1 (720 ILCS 5/46-2)
2 Sec. 46-2. Aggravated insurance fraud.
3 (a) A person commits the offense of aggravated insurance
4 fraud when he or she, within an 18 month period, obtains,
5 attempts to obtain, or causes to be obtained, by deception,
6 control over the property of an insurance company or
7 insurance companies, a self-insured entity or self-insured
8 entities, or any governmental entity or governmental entities
9 by the making of 3 or more false claims allegedly arising out
10 of separate incidents or transactions in violation of Section
11 46-1 or 46-1.1 of this Code on any policy or policies issued
12 by an insurance company or insurance companies intending to
13 deprive an insurance company or insurance companies
14 permanently of the use and benefit of that property.
15 (b) Sentence. A violation of this Section is a Class 1
16 felony, regardless of the value of the property obtained,
17 attempted to be obtained, or caused to be obtained.
18 (Source: P.A. 87-1134; 88-45.)
19 (720 ILCS 5/46-3)
20 Sec. 46-3. Insurance fraud Conspiracy to commit fraud.
21 (a) A person commits insurance fraud conspiracy to
22 commit fraud when, with the intent that a violation of
23 Section 46-1, 46-1.1, or 46-2 of this Code be committed, he
24 agrees with another to violate either Section 46-1, 46-1.1,
25 or 46-2. No person may be convicted of insurance fraud
26 conspiracy to commit fraud unless an overt act or acts in
27 furtherance of the agreement is alleged and proved to have
28 been committed by him or by a co-conspirator and the accused
29 is a part of a common scheme or plan to engage in the
30 unlawful activity. Where the offense agreed intended to be
31 committed is a violation of Section 46-2, the person or
32 persons with whom the accused is alleged to have agreed to
33 commit the 3 or more violations of Section 46-1 or 46-1.1
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1 need not be the same person or persons for each violation, as
2 long as the accused was a part of the common scheme or plan
3 to engage in each of the 3 or more alleged violations.
4 (b) It is not a defense to insurance fraud conspiracy to
5 commit fraud that the person or persons with whom the accused
6 is alleged to have conspired:
7 (1) have not been prosecuted or convicted;
8 (2) have been convicted of a different offense;
9 (3) are not amenable to justice;
10 (4) have been acquitted; or
11 (5) lacked the capacity to commit an offense.
12 (c) Notwithstanding Section 8-5 of this Code, a person
13 may be convicted and sentenced both for the offense of
14 insurance fraud conspiracy to commit fraud and for any other
15 offense that is the object of the conspiracy.
16 (d) Insurance fraud Conspiracy to commit fraud involving
17 a violation of Section 46-1 or 46-1.1 of this Code is a Class
18 2 felony. Insurance fraud conspiracy involving a violation
19 of Section 46-2 of this Code is a Class 1 felony.
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 or 46-1.1 of
7 this Code need not be the same person or persons for each
8 violation, as long as the accused occupied a position of
9 organizer, supervisor, financer, or other position of
10 management in each 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 or fraud on
28 a governmental entity.
29 (a) A person who knowingly obtains, attempts to obtain,
30 or causes to be obtained, by deception, control over the
31 property of any insurance company by the making of a false
32 claim on a policy of insurance issued by an insurance
33 company, or by the making of a false claim to a self-insured
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1 entity intending to deprive an insurance company or
2 self-insured entity permanently of the use and benefit of
3 that property, shall be civilly liable to the insurance
4 company or self-insured entity that paid the claim or against
5 whom the claim was made or to the subrogee of that insurance
6 company or self-insured entity in an amount equal to either 3
7 times the value of the property wrongfully obtained or, if no
8 property was wrongfully obtained, twice the value of the
9 property attempted to be obtained, whichever amount is
10 greater, plus reasonable attorneys fees. A person who
11 knowingly obtains, attempts to obtain, or causes to be
12 obtained, by deception, control over the property of a
13 governmental entity by the making of a false claim of bodily
14 injury or of damage to or loss or theft of property,
15 intending to deprive the governmental entity permanently of
16 the use and benefit of that property, shall be civilly liable
17 to the governmental entity that paid the claim or against
18 whom the claim was made or to the subrogee of the
19 governmental entity in an amount equal to either 3 times the
20 value of the property wrongfully obtained or, if property was
21 not wrongfully obtained, twice the value of the property
22 attempted to be obtained, whichever amount is greater, plus
23 reasonable attorneys fees.
24 (b) An insurance company or self-insured entity that
25 brings an action against a person under subsection (a) of
26 this Section in bad faith shall be liable to that person for
27 twice the value of the property claimed, plus reasonable
28 attorneys fees. In determining whether an insurance company
29 or self-insured entity acted in bad faith, the court shall
30 relax the rules of evidence to allow for the introduction of
31 any facts or other information on which the insurance company
32 or self-insured entity may have relied in bringing an action
33 under subsection (a) of this Section.
34 (c) For the purposes of this Section, where the exact
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1 value of the property attempted to be obtained is either not
2 alleged by the claimant or not specifically set by the terms
3 of a the policy of insurance, the value of the property shall
4 be the fair market replacement value of the property claimed
5 to be lost, the reasonable costs of reimbursing a vendor or
6 other claimant for services to be rendered, or both.
7 (Source: P.A. 87-1134; 88-45.)