215 ILCS 5/154.6
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IX - Provisions Applicable To All Companies

 (from Ch. 73, par. 766.6)(Text of Section before amendment by P.A. 102-69)Sec. 154.6.     Acts constituting improper claims practice.     Any of the  following acts by a company, if committed without just cause and in  violation of Section 154.5, constitutes an improper claims practice:(a) Knowingly misrepresenting to claimants and insureds relevant  facts or policy provisions relating to coverages at issue;(b) Failing to acknowledge with reasonable promptness pertinent  communications with respect to claims arising under its policies;(c) Failing to adopt and implement reasonable standards for the  prompt investigations and settlement of claims arising under its policies;(d) Not attempting in good faith to effectuate prompt, fair and  equitable settlement of claims submitted in which liability has become  reasonably clear;(e) Compelling policyholders to institute suits to recover amounts  due under its policies by offering substantially less than the amounts  ultimately recovered in suits brought by them;(f) Engaging in activity which results in a disproportionate number  of meritorious complaints against the insurer received by the Insurance  Department;(g) Engaging in activity which results in a disproportionate number  of lawsuits to be filed against the insurer or its insureds by  claimants;(h) Refusing to pay claims without conducting a reasonable  investigation based on all available information;(i) Failing to affirm or deny coverage of claims within a reasonable  time after proof of loss statements have been completed;(j) Attempting to settle a claim for less than the amount to which a  reasonable person would believe the claimant was entitled, by reference  to written or printed advertising material accompanying or made part of  an application or establishing unreasonable caps or limits on paint  or materials  when estimating vehicle repairs;(k) Attempting to settle claims on the basis of an application which  was altered without notice to, or knowledge or consent of, the insured;(l) Making a claims payment to a policyholder or beneficiary  omitting the coverage under which each payment is being made;(m) Delaying the investigation or payment of claims by requiring an  insured, a claimant, or the physicians of either to submit a preliminary  claim report and then requiring subsequent submission of formal proof of  loss forms, resulting in the duplication of verification;(n) Failing in the case of the denial of a claim or the offer of a  compromise settlement to promptly provide a reasonable and accurate  explanation of the basis in the insurance policy or applicable law for  such denial or compromise settlement;(o) Failing to provide forms necessary to present claims within 15  working days of a request with such explanations as are necessary to use  them effectively;(p) Failing to adopt and implement reasonable standards to verify that  a repairer designated by the insurance company to provide an estimate,  perform repairs, or engage in any other service in connection with an  insured loss on a vehicle is duly licensed under Section 5-301 of the  Illinois Vehicle Code;(q) Failing to provide as a persistent tendency a notification on any  written estimate prepared by an insurance company in connection with an  insured loss that Illinois law requires that vehicle repairers must be  licensed in accordance with Section 5-301 of the Illinois Vehicle Code;(r) Engaging in any other acts which are in substance equivalent to  any of the foregoing.    (Source: P.A. 90-340, eff. 8-8-97.)(Text of Section after amendment by P.A. 102-69)Sec. 154.6. Acts constituting improper claims practice. Any of the  following acts by a company, if committed without just cause and in  violation of Section 154.5, constitutes an improper claims practice:(a) Knowingly misrepresenting to claimants and insureds relevant  facts or policy provisions relating to coverages at issue;(b) Failing to acknowledge with reasonable promptness pertinent  communications with respect to claims arising under its policies;(c) Failing to adopt and implement reasonable standards for the  prompt investigations and settlement of claims arising under its policies;(d) Not attempting in good faith to effectuate prompt, fair and  equitable settlement of claims submitted in which liability has become  reasonably clear;(e) Compelling policyholders to institute suits to recover amounts  due under its policies by offering substantially less than the amounts  ultimately recovered in suits brought by them;(f) Engaging in activity which results in a disproportionate number  of meritorious complaints against the insurer received by the Insurance  Department;(g) Engaging in activity which results in a disproportionate number  of lawsuits to be filed against the insurer or its insureds by  claimants;(h) Refusing to pay claims without conducting a reasonable  investigation based on all available information;(i) Failing to affirm or deny coverage of claims within a reasonable  time after proof of loss statements have been completed;(j) Attempting to settle a claim for less than the amount to which a  reasonable person would believe the claimant was entitled, by reference  to written or printed advertising material accompanying or made part of  an application or establishing unreasonable caps or limits on paint  or materials  when estimating vehicle repairs;(k) Attempting to settle claims on the basis of an application which  was altered without notice to, or knowledge or consent of, the insured;(l) Making a claims payment to a policyholder or beneficiary  omitting the coverage under which each payment is being made;(m) Delaying the investigation or payment of claims by requiring an  insured, a claimant, or the physicians of either to submit a preliminary  claim report and then requiring subsequent submission of formal proof of  loss forms, resulting in the duplication of verification;(n) Failing in the case of the denial of a claim or the offer of a  compromise settlement to promptly provide a reasonable and accurate  explanation of the basis in the insurance policy or applicable law for  such denial or compromise settlement;(o) Failing to provide forms necessary to present claims within 15  working days of a request with such explanations as are necessary to use  them effectively;(p) Failing to adopt and implement reasonable standards to verify that  a repairer designated by the insurance company to provide an estimate,  perform repairs, or engage in any other service in connection with an  insured loss on a vehicle is duly licensed under Section 5-301 of the  Illinois Vehicle Code;(q) Failing to provide as a persistent tendency a notification on any  written estimate prepared by an insurance company in connection with an  insured loss that Illinois law requires that vehicle repairers must be  licensed in accordance with Section 5-301 of the Illinois Vehicle Code;(r) Failing to pay the replacement vehicle use or occupation tax, title, and transfer fees required by Section 154.9 of this Code;(s) Engaging in any other acts which are in substance equivalent to  any of the foregoing.  (Source: P.A. 102-69, eff. 7-1-22.)