Bill Text: IL HB3117 | 2011-2012 | 97th General Assembly | Introduced
Bill Title: Amends the Illinois Insurance Code to include in those practices defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance, basing the compensation of employees or contracted claims personnel, including performance bonuses or incentives, on a certain factor. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [HB3117 Detail]
Download: Illinois-2011-HB3117-Introduced.html
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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | |||||||||||||||||||
5 | changing Section 424 as follows:
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6 | (215 ILCS 5/424) (from Ch. 73, par. 1031)
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7 | Sec. 424.
Unfair methods of competition and unfair or | |||||||||||||||||||
8 | deceptive acts or
practices defined. The following are hereby | |||||||||||||||||||
9 | defined as unfair methods of
competition and unfair and | |||||||||||||||||||
10 | deceptive acts or practices in the business of
insurance:
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11 | (1) The commission by any person of any one or more of the | |||||||||||||||||||
12 | acts
defined or prohibited by Sections 134, 143.24c, 147, 148, | |||||||||||||||||||
13 | 149, 151, 155.22,
155.22a,
236, 237, 364, and 469 of this Code.
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14 | (2) Entering into any agreement to commit, or by any | |||||||||||||||||||
15 | concerted
action committing, any act of boycott, coercion or | |||||||||||||||||||
16 | intimidation
resulting in or tending to result in unreasonable | |||||||||||||||||||
17 | restraint of, or
monopoly in, the business of insurance.
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18 | (3) Making or permitting, in the case of insurance of the | |||||||||||||||||||
19 | types
enumerated in Classes 1, 2, and 3 of Section 4, any | |||||||||||||||||||
20 | unfair discrimination
between individuals or risks of the same | |||||||||||||||||||
21 | class or of essentially the same
hazard and expense element | |||||||||||||||||||
22 | because of the race, color, religion, or national
origin of | |||||||||||||||||||
23 | such insurance risks or applicants. The application of this |
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1 | Article
to the types of insurance enumerated in Class 1 of | ||||||
2 | Section 4 shall in no way
limit, reduce, or impair the | ||||||
3 | protections and remedies already provided for by
Sections 236 | ||||||
4 | and 364 of this Code or any other provision of this Code.
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5 | (4) Engaging in any of the acts or practices defined in or | ||||||
6 | prohibited by
Sections 154.5 through 154.8 of this Code.
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7 | (5) Making or charging any rate for insurance against | ||||||
8 | losses arising
from the use or ownership of a motor vehicle | ||||||
9 | which requires a higher
premium of any person by reason of his | ||||||
10 | physical handicap, race, color,
religion, or national origin.
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11 | (6) Basing the compensation of employees or contracted | ||||||
12 | claims personnel, including performance bonuses or incentives, | ||||||
13 | on one the following: | ||||||
14 | (a) the number of policies canceled or rescinded; | ||||||
15 | (b) the number of times coverage is denied; | ||||||
16 | (c) the use of a quota or cap limiting or restricting | ||||||
17 | the number or volume of claims; or | ||||||
18 | (d) the use of an arbitrary quota or cap limiting or | ||||||
19 | restricting the amount paid to satisfy a claim without due | ||||||
20 | consideration to the merits of the claim. | ||||||
21 | (Source: P.A. 92-399, eff. 8-16-01; 92-651, eff. 7-11-02; | ||||||
22 | 92-669, eff.
1-1-03.)
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23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law.
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