HB 4719

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Full Text of HB4719
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	HB4719 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4719
Introduced , by Rep. Jaime M. Andrade, Jr.
SYNOPSIS AS INTRODUCED:
215 ILCS 5/154.6	  from Ch. 73, par. 766.6
815 ILCS 505/2MMMM new
Amends the Illinois Insurance Code. In provisions concerning acts by a company constituting improper claims practice, includes: (i) knowingly taking advantage of the insured's physical infirmity, ignorance, illiteracy, or inability to understand the language of the policy or any associated agreements in order to obtain a favorable settlement of a claim and (ii) willfully misrepresenting the status or outcome of an investigation or failing to take any meaningful investigatory acts before issuing a denial or offer of a compromise settlement. Provides that committing any of the improper claims practice acts is a violation of the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to provide that a person who commits an improper claims practice under the Illinois Insurance Code commits an unlawful practice within the meaning of the Act.
LRB104 17900 BAB 31336 b
A BILL FOR
		HB4719		LRB104 17900 BAB 31336 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
12    insureds relevant facts or policy provisions relating to
13    coverages at issue;
14        (b) Failing to acknowledge with reasonable promptness
15    pertinent communications with respect to claims arising
16    under its policies;
17        (c) Failing to adopt and implement reasonable
18    standards for the prompt investigations and settlement of
19    claims arising under its policies;
20        (d) Not attempting in good faith to effectuate prompt,
21    fair and equitable settlement of claims submitted in which
22    liability has become reasonably clear;
23        (e) Compelling policyholders to institute suits to
		HB4719	- 2 -	LRB104 17900 BAB 31336 b
1    recover amounts due under its policies by offering
2    substantially less than the amounts ultimately recovered
3    in suits brought by them;
4        (f) Engaging in activity which results in a
5    disproportionate number of meritorious complaints against
6    the insurer received by the Insurance Department;
7        (g) Engaging in activity which results in a
8    disproportionate number of lawsuits to be filed against
9    the insurer or its insureds by claimants;
10        (h) Refusing to pay claims without conducting a
11    reasonable investigation based on all available
12    information;
13        (i) Failing to affirm or deny coverage of claims
14    within a reasonable time after proof of loss statements
15    have been completed;
16        (j) Attempting to settle a claim for less than the
17    amount to which a reasonable person would believe the
18    claimant was entitled, by reference to written or printed
19    advertising material accompanying or made part of an
20    application or establishing unreasonable caps or limits on
21    paint or materials when estimating vehicle repairs;
22        (k) Attempting to settle claims on the basis of an
23    application which was altered without notice to, or
24    knowledge or consent of, the insured;
25        (l) Making a claims payment to a policyholder or
26    beneficiary omitting the coverage under which each payment
		HB4719	- 3 -	LRB104 17900 BAB 31336 b
1    is being made;
2        (m) Delaying the investigation or payment of claims by
3    requiring an insured, a claimant, or the physicians of
4    either to submit a preliminary claim report and then
5    requiring subsequent submission of formal proof of loss
6    forms, resulting in the duplication of verification;
7        (n) Failing in the case of the denial of a claim or the
8    offer of a compromise settlement to promptly provide a
9    reasonable and accurate explanation of the basis in the
10    insurance policy or applicable law for such denial or
11    compromise settlement;
12        (o) Failing to provide forms necessary to present
13    claims within 15 working days of a request with such
14    explanations as are necessary to use them effectively;
15        (p) Failing to adopt and implement reasonable
16    standards to verify that a repairer designated by the
17    insurance company to provide an estimate, perform repairs,
18    or engage in any other service in connection with an
19    insured loss on a vehicle is duly licensed under Section
20    5-301 of the Illinois Vehicle Code;
21        (q) Failing to provide as a persistent tendency a
22    notification on any written estimate prepared by an
23    insurance company in connection with an insured loss that
24    Illinois law requires that vehicle repairers must be
25    licensed in accordance with Section 5-301 of the Illinois
26    Vehicle Code;
		HB4719	- 4 -	LRB104 17900 BAB 31336 b
1        (r) Failing to pay the replacement vehicle use or
2    occupation tax, title, and transfer fees required by
3    Section 154.9 of this Code;
4        (r-5) Knowingly taking advantage of the insured's 
5    physical infirmity, ignorance, illiteracy, or inability to 
6    understand the language of the policy or any associated 
7    agreements in order to obtain a favorable settlement of a 
8    claim.
9        (r-10) Willfully misrepresenting the status or outcome 
10    of an investigation or failing to take any meaningful 
11    investigatory acts before issuing a denial or offer of a 
12    compromise settlement.
13        (s) Engaging in any other acts which are in substance
14    equivalent to any of the foregoing.
15    Committing any of the acts specified in this Section is a 
16violation of the Consumer Fraud and Deceptive Business 
17Practices Act.
18(Source: P.A. 102-69, eff. 7-1-22.)
19    Section 10. The Consumer Fraud and Deceptive Business
20Practices Act is amended by adding Section 2MMMM as follows:
21    (815 ILCS 505/2MMMM new)
22    Sec. 2MMMM. Improper claims practices under the Illinois 
23Insurance Code. A person who commits an improper claims 
24practice specified in Sections 154.5 and 154.6 of the Illinois 
		HB4719	- 5 -	LRB104 17900 BAB 31336 b
1Insurance Code commits an unlawful practice within the meaning 
2of this Act.