State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]


[ Engrossed ][ Enrolled ][ House Amendment 001 ]
[ Senate Amendment 001 ]


92_HB4371

 
                                              LRB9210185JSpcB

 1        AN ACT relating to insurance.

 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    adding Section 143.24c and changing Section 154.6 as follows:

 6        (215 ILCS 5/143.24c new)
 7        Sec. 143.24c.  Hate crimes; coverage refusal.
 8        (a)  This Section applies to policies of insurance if the
 9    insured  or  proposed  insured  is  (1)  an individual, (2) a
10    religious   organization   described   in   clause   (i)   of
11    subparagraph (A)  of  paragraph  (1)  of  subsection  (b)  of
12    Section  170  of  Title  26 of the United States Code, (3) an
13    educational  organization  described  in   clause   (ii)   of
14    subparagraph  (A)  of  paragraph  (1)  of  subsection  (b) of
15    Section 170 of Title 26 of the United States Code, or (4) any
16    other nonprofit organization  described  in  clause  (vi)  of
17    subparagraph  (A)  of  paragraph  (1)  of  subsection  (b) of
18    Section 170 of Title 26 of the United  States  Code  that  is
19    organized   and   operated   for  religious,  charitable,  or
20    educational purposes.
21        (b)  An insurer issuing policies subject to this  Section
22    may  not  cancel,  refuse  to  issue,  or refuse to renew the
23    policy solely on the basis that one or more claims have  been
24    made  against any policy during the preceding 60 months for a
25    loss that is the result of a hate crime committed against the
26    person or property insured.
27        (c)  As it relates to this Section, if  determined  by  a
28    law enforcement agency, a "hate crime" may include any of the
29    following:
30             (1)  By   force   or   threat  of  force,  willfully
31        injuring, intimidating, interfering with, oppressing,  or
 
                            -2-               LRB9210185JSpcB
 1        threatening  any  other  person  in  the free exercise or
 2        enjoyment of any right or privilege secured to him or her
 3        by the Constitution or laws  of  this  State  or  by  the
 4        Constitution  or laws of the United States because of the
 5        other person's race, color, religion, ancestry,  national
 6        origin,  disability,  gender,  or  sexual  orientation or
 7        because he or she perceives that the other person has one
 8        or more of those characteristics. This offense,  however,
 9        does not include speech alone, except upon a showing that
10        the  speech itself threatened violence against a specific
11        person or group of persons and that the defendant had the
12        apparent ability to carry out the threat.
13             (2)  Knowingly defacing, damaging, or destroying the
14        real or personal property of any  other  person  for  the
15        purpose  of  intimidating  or  interfering  with the free
16        exercise or enjoyment of any right or  privilege  secured
17        to  the  other person by the Constitution or laws of this
18        State or by the Constitution or laws of the United States
19        because of the  other  person's  race,  color,  religion,
20        ancestry,  national origin, disability, gender, or sexual
21        orientation or because he or she perceives that the other
22        person has one or more of those characteristics.
23        (d)  Upon cancellation of or refusal to  renew  a  policy
24    subject  to  this  Section  after  an insured has submitted a
25    claim to the insurer that is  the  result  of  a  hate  crime
26    committed  against the person or property of the insured, the
27    insurer shall report the cancellation or  nonrenewal  to  the
28    Department.
29        (e)  A  violation  of  this Section is an improper claims
30    practice.
31        (f)  Nothing in this Section prevents an insurer  subject
32    to  this  Section from taking any of the actions specified in
33    subsection (b) on the basis of criteria  not  otherwise  made
34    invalid by this Section or any other law or rule.
 
                            -3-               LRB9210185JSpcB
 1        (215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
 2        Sec.  154.6.  Acts constituting improper claims practice.
 3    Any of the following acts by a company, if committed  without
 4    just  cause and in violation of Section 154.5, constitutes an
 5    improper claims practice:
 6        (a)  Knowingly misrepresenting to claimants and  insureds
 7    relevant  facts or policy provisions relating to coverages at
 8    issue.;
 9        (b)  Failing to acknowledge  with  reasonable  promptness
10    pertinent communications with respect to claims arising under
11    its policies.;
12        (c)  Failing  to adopt and implement reasonable standards
13    for  the  prompt  investigations  and  settlement  of  claims
14    arising under its policies.;
15        (d)  Not attempting in good faith to  effectuate  prompt,
16    fair  and  equitable  settlement of claims submitted in which
17    liability has become reasonably clear.;
18        (e)  Compelling  policyholders  to  institute  suits   to
19    recover   amounts   due   under   its  policies  by  offering
20    substantially less than the amounts ultimately  recovered  in
21    suits brought by them.;
22        (f)  Engaging    in   activity   which   results   in   a
23    disproportionate number of meritorious complaints against the
24    insurer received by the Insurance Department.;
25        (g)  Engaging   in   activity   which   results   in    a
26    disproportionate  number  of lawsuits to be filed against the
27    insurer or its insureds by claimants.;
28        (h)  Refusing  to  pay  claims   without   conducting   a
29    reasonable investigation based on all available information.;
30        (i)  Failing  to affirm or deny coverage of claims within
31    a reasonable time after proof of loss  statements  have  been
32    completed.;
33        (j)  Attempting  to  settle  a  claim  for  less than the
34    amount  to  which  a  reasonable  person  would  believe  the
 
                            -4-               LRB9210185JSpcB
 1    claimant was entitled, by reference  to  written  or  printed
 2    advertising   material   accompanying  or  made  part  of  an
 3    application or establishing unreasonable caps  or  limits  on
 4    paint or materials when estimating vehicle repairs.;
 5        (k)  Attempting  to  settle  claims  on  the  basis of an
 6    application which was altered without notice to, or knowledge
 7    or consent of, the insured.;
 8        (l)  Making  a  claims  payment  to  a  policyholder   or
 9    beneficiary omitting the coverage under which each payment is
10    being made.;
11        (m)  Delaying  the  investigation or payment of claims by
12    requiring an insured, a claimant, or the physicians of either
13    to submit a  preliminary  claim  report  and  then  requiring
14    subsequent   submission   of  formal  proof  of  loss  forms,
15    resulting in the duplication of verification.;
16        (n)  Failing in the case of the denial of a claim or  the
17    offer  of  a  compromise  settlement  to  promptly  provide a
18    reasonable and accurate  explanation  of  the  basis  in  the
19    insurance  policy  or  applicable  law  for  such  denial  or
20    compromise settlement.;
21        (o)  Failing to provide forms necessary to present claims
22    within 15 working days of a request with such explanations as
23    are necessary to use them effectively.;
24        (p)  Failing  to adopt and implement reasonable standards
25    to verify that a repairer designated by the insurance company
26    to provide an estimate, perform repairs,  or  engage  in  any
27    other service in connection with an insured loss on a vehicle
28    is  duly licensed under Section 5-301 of the Illinois Vehicle
29    Code.;
30        (q)  Failing  to  provide  as  a  persistent  tendency  a
31    notification on any written estimate prepared by an insurance
32    company in connection with an insured loss that Illinois  law
33    requires   that   vehicle   repairers  must  be  licensed  in
34    accordance with Section 5-301 of the Illinois Vehicle Code.;
 
                            -5-               LRB9210185JSpcB
 1        (r)  Engaging in any other acts which  are  in  substance
 2    equivalent to any of the foregoing.
 3        (s)  Canceling, refusing to issue, or refusing to renew a
 4    policy in violation of Section 143.24c.
 5    (Source: P.A. 90-340, eff. 8-8-97.)

[ Top ]