HB0229 95TH GENERAL ASSEMBLY

LRB095 04584 KBJ 24639 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0229

Introduced 1/19/2007, by Rep. Mary E. Flowers

SYNOPSIS AS INTRODUCED:

215 ILCS 5/155

from Ch. 73, par. 767

Amends the Illinois Insurance Code. Exempts any action against an insurance company where the company has committed fraud from certain limitations concerning damages that may be awarded.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by changing Section 155 as follows:

(215 ILCS 5/155) (from Ch. 73, par. 767)

Sec. 155. Attorney fees.

(1) In any action by or against a company wherein there is in issue the liability of a company on a policy or policies of insurance or the amount of the loss payable thereunder, or for an unreasonable delay in settling a claim, and it appears to the court that such action or delay is vexatious and unreasonable, the court may allow as part of the taxable costs in the action reasonable attorney fees, other costs, plus an amount not to exceed any one of the following amounts:

(a) 60% of the amount which the court or jury finds such party is entitled to recover against the company, exclusive of all costs;

(b) $60,000;

(c) the excess of the amount which the court or jury finds such party is entitled to recover, exclusive of costs, over the amount, if any, which the company offered to pay in settlement of the claim prior to the action.

This subsection (1) does not apply in any action against a company where the company has committed fraud.

(2) Where there are several policies insuring the same insured against the same loss whether issued by the same or by different companies, the court may fix the amount of the allowance so that the total attorney fees on account of one loss shall not be increased by reason of the fact that the insured brings separate suits on such policies.

(Source: P.A. 93-485, eff. 1-1-04.)