summary
Introduced
02/07/2025
02/07/2025
In Committee
02/18/2025
02/18/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Insurance Code. Removes provisions concerning the duties of the Director of Insurance to promulgate reasonable rules requiring insurers doing business in the State of Illinois to report factual information in their possession that is pertinent to suspected fraudulent insurance claims, fraudulent insurance applications, or premium fraud after the Director has made a determination that the information is necessary to detect fraud or arson. Requires insurers to report fraudulent activity to the Director or the National Insurance Crime Bureau, the National Association of Insurance Commissioners, or a similar organization. Removes provisions concerning the Director's designation of data processing organizations or governmental agencies to assist in gathering and compiling fraud information. Sets forth provisions allowing any person who has a reasonable belief that an act of insurance fraud that is or may be a crime under Illinois law has been, is being, or is about to be committed or any person who collects, reviews, or analyzes information concerning insurance fraud that is or may be a crime under Illinois law to report suspected insurance fraud activity to the Director or an authorized representative of an insurer that requests the information for the purpose of directing, prosecuting, or preventing insurance fraud. Effective immediately.
AI Summary
This bill amends the Illinois Insurance Code to modify regulations around insurance fraud reporting. It removes previous provisions that required the Director of Insurance to create rules for insurers to report suspected fraudulent insurance claims, and instead directly requires insurers doing business in Illinois to report suspected insurance fraud to the Director, the National Insurance Crime Bureau, the National Association of Insurance Commissioners, or similar organizations if they have a reasonable belief that a fraudulent act has been, is being, or is about to be committed. The bill also expands reporting capabilities by allowing any person who has a reasonable belief about potential insurance fraud to disclose information to the Director or an authorized insurer representative for the purpose of detecting, prosecuting, or preventing such fraud. Importantly, the bill maintains legal protection for insurers and individuals who report suspected fraud in good faith, ensuring they cannot be held liable for damages or face criminal prosecution when sharing information as outlined in the legislation. The bill aims to streamline and broaden the mechanisms for identifying and addressing potential insurance fraud in Illinois.
Sponsors (2)
Last Action
Added Co-Sponsor Rep. Anthony DeLuca (on 03/17/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3795&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3795.htm |
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