State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]
[ Senate Amendment 001 ]


92_HB4371eng

 
HB4371 Engrossed                              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 and the perpetrator of the loss is
27    criminally prosecuted for the act causing  the  loss  or  the
28    claim has been paid.
29        (c)  As  it  relates  to this Section, if determined by a
30    law enforcement agency, a "hate crime" may include any of the
31    following:
 
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 1             (1)  By  force  or  threat   of   force,   willfully
 2        injuring,  intimidating, interfering with, oppressing, or
 3        threatening any other person  in  the  free  exercise  or
 4        enjoyment of any right or privilege secured to him or her
 5        by  the  Constitution  or  laws  of  this State or by the
 6        Constitution or laws of the United States because of  the
 7        other  person's race, color, religion, ancestry, national
 8        origin, disability,  gender,  or  sexual  orientation  or
 9        because he or she perceives that the other person has one
10        or  more of those characteristics. This offense, however,
11        does not include speech alone, except upon a showing that
12        the speech itself threatened violence against a  specific
13        person or group of persons and that the defendant had the
14        apparent ability to carry out the threat.
15             (2)  Knowingly defacing, damaging, or destroying the
16        real  or  personal  property  of any other person for the
17        purpose of intimidating  or  interfering  with  the  free
18        exercise  or  enjoyment of any right or privilege secured
19        to the other person by the Constitution or laws  of  this
20        State or by the Constitution or laws of the United States
21        because  of  the  other  person's  race, color, religion,
22        ancestry, national origin, disability, gender, or  sexual
23        orientation or because he or she perceives that the other
24        person has one or more of those characteristics.
25        (d)  Upon  cancellation  of  or refusal to renew a policy
26    subject to this Section after  an  insured  has  submitted  a
27    claim  to  the  insurer  that  is  the result of a hate crime
28    committed against the person or property of the insured,  the
29    insurer  shall  report  the cancellation or nonrenewal to the
30    Department.
31        (e)  A violation of this Section is  an  improper  claims
32    practice.
33        (f)  Nothing  in this Section prevents an insurer subject
34    to this Section from taking any of the actions  specified  in
 
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 1    subsection  (b)  on  the basis of criteria not otherwise made
 2    invalid by this Section or any other law or rule.

 3        (215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
 4        Sec. 154.6.  Acts constituting improper claims  practice.
 5    Any  of the following acts by a company, if committed without
 6    just cause and in violation of Section 154.5, constitutes  an
 7    improper claims practice:
 8        (a)  Knowingly  misrepresenting to claimants and insureds
 9    relevant facts or policy provisions relating to coverages  at
10    issue.;
11        (b)  Failing  to  acknowledge  with reasonable promptness
12    pertinent communications with respect to claims arising under
13    its policies.;
14        (c)  Failing to adopt and implement reasonable  standards
15    for  the  prompt  investigations  and  settlement  of  claims
16    arising under its policies.;
17        (d)  Not  attempting  in good faith to effectuate prompt,
18    fair and equitable settlement of claims  submitted  in  which
19    liability has become reasonably clear.;
20        (e)  Compelling   policyholders  to  institute  suits  to
21    recover  amounts  due  under   its   policies   by   offering
22    substantially  less  than the amounts ultimately recovered in
23    suits brought by them.;
24        (f)  Engaging   in   activity   which   results   in    a
25    disproportionate number of meritorious complaints against the
26    insurer received by the Insurance Department.;
27        (g)  Engaging    in   activity   which   results   in   a
28    disproportionate number of lawsuits to be filed  against  the
29    insurer or its insureds by claimants.;
30        (h)  Refusing   to   pay   claims  without  conducting  a
31    reasonable investigation based on all available information.;
32        (i)  Failing to affirm or deny coverage of claims  within
33    a  reasonable  time  after proof of loss statements have been
 
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 1    completed.;
 2        (j)  Attempting to settle  a  claim  for  less  than  the
 3    amount  to  which  a  reasonable  person  would  believe  the
 4    claimant  was  entitled,  by  reference to written or printed
 5    advertising  material  accompanying  or  made  part   of   an
 6    application  or  establishing  unreasonable caps or limits on
 7    paint or materials when estimating vehicle repairs.;
 8        (k)  Attempting to settle  claims  on  the  basis  of  an
 9    application which was altered without notice to, or knowledge
10    or consent of, the insured.;
11        (l)  Making   a  claims  payment  to  a  policyholder  or
12    beneficiary omitting the coverage under which each payment is
13    being made.;
14        (m)  Delaying the investigation or payment of  claims  by
15    requiring an insured, a claimant, or the physicians of either
16    to  submit  a  preliminary  claim  report  and then requiring
17    subsequent  submission  of  formal  proof  of   loss   forms,
18    resulting in the duplication of verification.;
19        (n)  Failing  in the case of the denial of a claim or the
20    offer of  a  compromise  settlement  to  promptly  provide  a
21    reasonable  and  accurate  explanation  of  the  basis in the
22    insurance  policy  or  applicable  law  for  such  denial  or
23    compromise settlement.;
24        (o)  Failing to provide forms necessary to present claims
25    within 15 working days of a request with such explanations as
26    are necessary to use them effectively.;
27        (p)  Failing to adopt and implement reasonable  standards
28    to verify that a repairer designated by the insurance company
29    to  provide  an  estimate,  perform repairs, or engage in any
30    other service in connection with an insured loss on a vehicle
31    is duly licensed under Section 5-301 of the Illinois  Vehicle
32    Code.;
33        (q)  Failing  to  provide  as  a  persistent  tendency  a
34    notification on any written estimate prepared by an insurance
 
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 1    company  in connection with an insured loss that Illinois law
 2    requires  that  vehicle  repairers  must   be   licensed   in
 3    accordance with Section 5-301 of the Illinois Vehicle Code.;
 4        (r)  Engaging  in  any  other acts which are in substance
 5    equivalent to any of the foregoing.
 6        (s)  Canceling, refusing to issue, or refusing to renew a
 7    policy in violation of Section 143.24c.
 8    (Source: P.A. 90-340, eff. 8-8-97.)

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