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.


LRB101 18644 BMS 68099 b

 

 

A BILL FOR

 

SB3263LRB101 18644 BMS 68099 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing 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.
8Any of the following acts by a company, if committed without
9just cause and in violation of Section 154.5, constitutes an
10improper claims practice:
11    (a) Knowingly misrepresenting to claimants and insureds
12relevant facts or policy provisions relating to coverages at
13issue;
14    (b) Failing to acknowledge with reasonable promptness
15pertinent communications with respect to claims arising under
16its policies;
17    (c) Failing to adopt and implement reasonable standards for
18the prompt investigations and settlement of claims arising
19under its policies;
20    (d) Not attempting in good faith to effectuate prompt, fair
21and equitable settlement of claims submitted in which liability
22has become reasonably clear;
23    (e) Compelling policyholders to institute suits to recover

 

 

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1amounts due under its policies by offering substantially less
2than the amounts ultimately recovered in suits brought by them;
3    (f) Engaging in activity which results in a
4disproportionate number of meritorious complaints against the
5insurer received by the Insurance Department;
6    (g) Engaging in activity which results in a
7disproportionate number of lawsuits to be filed against the
8insurer or its insureds by claimants;
9    (h) Refusing to pay claims without conducting a reasonable
10investigation based on all available information;
11    (i) Failing to affirm or deny coverage of claims within a
12reasonable time after proof of loss statements have been
13completed;
14    (j) Attempting to settle a claim for less than the amount
15to which a reasonable person would believe the claimant was
16entitled, by reference to written or printed advertising
17material accompanying or made part of an application or
18establishing unreasonable caps or limits on paint or materials
19when estimating vehicle repairs;
20    (k) Attempting to settle claims on the basis of an
21application which was altered without notice to, or knowledge
22or consent of, the insured;
23    (l) Making a claims payment to a policyholder or
24beneficiary omitting the coverage under which each payment is
25being made;
26    (m) Delaying the investigation or payment of claims by

 

 

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1requiring an insured, a claimant, or the physicians of either
2to submit a preliminary claim report and then requiring
3subsequent submission of formal proof of loss forms, resulting
4in the duplication of verification;
5    (n) Failing in the case of the denial of a claim or the
6offer of a compromise settlement to promptly provide a
7reasonable and accurate explanation of the basis in the
8insurance policy or applicable law for such denial or
9compromise settlement;
10    (o) Failing to provide forms necessary to present claims
11within 15 working days of a request with such explanations as
12are necessary to use them effectively;
13    (p) Failing to adopt and implement reasonable standards to
14verify that a repairer designated by the insurance company to
15provide an estimate, perform repairs, or engage in any other
16service in connection with an insured loss on a vehicle is duly
17licensed under Section 5-301 of the Illinois Vehicle Code;
18    (q) Failing to provide as a persistent tendency a
19notification on any written estimate prepared by an insurance
20company in connection with an insured loss that Illinois law
21requires that vehicle repairers must be licensed in accordance
22with Section 5-301 of the Illinois Vehicle Code;
23    (r) Failing to pay applicable tax, title, and transfer fees
24for all first-party and third-party claims on a replacement
25vehicle in a private passenger automobile total loss vehicle
26claim;

 

 

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1    (s) (r) Engaging in any other acts which are in substance
2equivalent 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
5becoming law.