State of Illinois
91st General Assembly
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91_HB3106eng

 
HB3106 Engrossed                               LRB9110389JSgc

 1        AN ACT to amend the Illinois  Insurance  Code  by  adding
 2    Section 154.9.

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

 5        Section 5.  The Illinois Insurance  Code  is  amended  by
 6    adding Section 154.9 as follows:

 7        (215 ILCS 5/154.9 new)
 8        Sec. 154.9.  Settlement of claim; notice to insured.
 9        (a)  Within  30  days after settling any claim against an
10    insured for an amount in excess  of  $10,000  pursuant  to  a
11    policy  of workers compensation insurance or a policy against
12    the liability of the  insured,  an  insurer  shall  give  the
13    insured notice of the settlement.
14        (b)  This  Section  applies  to settlements in amounts in
15    excess of $10,000 made under  policies  of  insurance  issued
16    pursuant   to  clause  (b),  (c),  (d),  or (j) of Class 2 of
17    Section 4 of this Code or pursuant to clause (e)  or  (h)  of
18    Class 3 of Section 4 of this Code.
19        (c)  If  a  company  fails  to provide the information as
20    required by  this  Section  with  such  frequency  so  as  to
21    indicate  a practice of refusing to provide such information,
22    such failure shall constitute an  unfair  trade  practice  as
23    defined  in  Section  424  and  subject  to those hearing and
24    penalty provisions as set forth in Sections 425  through  434
25    of this Code.

26        Section  99.  Effective date.  This Act takes effect upon
27    becoming law.

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