summary
Introduced
01/22/2026
01/22/2026
In Committee
01/30/2026
01/30/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Insurance Code. Provides that if an insurer tenders the lesser of the policy limits or the amount demanded by the claimant in a statutory or common law action alleging bad faith within 90 days after receiving actual notice of a claim accompanied by sufficient evidence to support the amount of the claim, no liability may be imposed against the insurer. Provides that if a named insured, omnibus insured, or named beneficiary is awarded a declaratory judgment in an action in State or federal court to determine insurance coverage after the insurer has made a total coverage denial of a claim, the court must award reasonable attorney's fees to the named insured, omnibus insured, or named beneficiary who has prevailed in the action. Creates a presumption that, in any action by or against a company, if there is an issue of the liability of a company, and it appears to the court that such action or delay is vexatious and unreasonable, the court may allow as part of the taxable costs in the action reasonable attorney's fees, as determined by the lodestar fee method of multiplying the number of hours reasonably spent on a case by a reasonable hourly rate, adjusted up or down by a multiplier to account for factors such as the quality of the work, complexity of the case, or risk of loss. Provides that this presumption may be overcome only in rare and exceptional circumstances. Amends the Code of Civil Procedure. Changes the percentage from 25% to 50% that triggers joint and several liability of a defendant of all damages. Provides criteria for the admissibility of unpaid, past, and future medical expenses in personal injury and wrongful death cases. Amends the Premises Liability Act. Provides that in an action for damages against the owner, lessor, operator, or manager of commercial or real property brought by a person lawfully on the property who was injured by the criminal act of a third party, the trier of fact must consider the fault of all persons who contributed to the injury. Makes other changes. Applies to all actions filed on or after the effective date of the amendatory Act. Effective immediately.
AI Summary
This bill makes several changes to Illinois law concerning insurance, liability, and legal proceedings. It provides that an insurer is generally not liable for bad faith claims if they tender the policy limit or the demanded amount within 90 days of receiving sufficient evidence of the claim, and it also establishes that mere negligence is not enough to prove bad faith. If an insurer completely denies coverage and a court later rules in favor of the insured or beneficiary in a case to determine coverage, the court must award reasonable attorney's fees to the prevailing party, calculated using a lodestar method (hours worked multiplied by an hourly rate, adjusted for case complexity and risk). The bill also increases the percentage of fault that triggers joint and several liability for all damages in personal injury and wrongful death cases from 25% to 50%, meaning a defendant must be at least 50% at fault to be held responsible for all damages, not just their share. Additionally, it sets new criteria for the admissibility of medical expenses in personal injury and wrongful death lawsuits, focusing on the actual amounts paid or the reasonable value of services based on insurance coverage, Medicare, or Medicaid rates, and it amends premises liability law to require consideration of the fault of all contributing parties when a person is injured by a third party's criminal act on commercial property. Finally, it creates a presumption against liability for owners of multifamily residential properties that implement specific security measures, such as security cameras, adequate lighting, and secure door locks, and requires them to provide crime deterrence training to employees. These changes generally apply to actions filed on or after the bill's effective date.
Sponsors (2)
Last Action
Referred to Rules Committee (on 01/30/2026)
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