Illinois · 104th session
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…
Referred to Rules Committee (2026-01-30)