SB3015 98TH GENERAL ASSEMBLY

LRB098 17342 RPM 52438 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3015

Introduced 2/7/2014, by Sen. Iris Y. Martinez

SYNOPSIS AS INTRODUCED:

215 ILCS 5/154.8

from Ch. 73, par. 766.8

Amends the Illinois Insurance Code. Provides that if, after a hearing pursuant to the Code, the Director of Insurance finds that a company has engaged in an improper claims practice, the Director shall order the company to cease and desist from such practices and, in the exercise of reasonable discretion, may suspend the company's certificate of authority for a period not to exceed 6 months or impose a civil penalty of up to $375,000 (rather than $250,000), or both.

FISCAL NOTE ACT MAY APPLY

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 154.8 as follows:

(215 ILCS 5/154.8) (from Ch. 73, par. 766.8)

Sec. 154.8. Cease and Desist Order - Suspension of Certificate - Civil penalty - Judicial Review.)

(1) If after a hearing pursuant to Section 154.7 the Director finds that company has engaged in an improper claims practice, he shall order such company to cease and desist from such practices and, in the exercise of reasonable discretion, may suspend the company's certificate of authority for a period not to exceed 6 months or impose a civil penalty of up to $375,000 $250,000, or both. Pursuant to Section 401, the Director shall promulgate reasonable rules and regulations establishing standards for the implementation of this Section.

(2) Any order of the Director pursuant to this Section is subject to judicial review under Section 407 of this Code.

(Source: P.A. 86-846.)