How HB 0142 Will Help Illinois Policyholders With Property Damage Claims
It’s no secret Illinois policyholders have a hard time pursuing bad faith claims against insurance carriers. Due to state courts not recognizing bad faith as an independent tort, claims hinge on if the insured can prove the carrier’s actions were “vexatious and unreasonable.” Bad faith cases are almost always statutory in nature, meaning without prior case rulings on a specific action, they can be hard to prove.
To help, the Illinois insurance code does list 18 claim practices the courts have deemed improper. While these practices alone are not enough to win a case, they do provide some insight into how to interpret the actions of insurance carriers when handling insurance claims.
As a recent article points out, this list of practices can be used by carriers to avoid bad faith claims altogether. The article specifically mentions how insurance carriers can increase claim documentation to prove they were communicating with the policyholder, regardless of their actions in the claim process. If a bad faith claim was made, this documentation alone would help prove they were not acting in a vexatious and unreasonable manner.
This article comes at a time when a new wave of new “tactics” used by insurance carriers are plaguing policyholders across the country. For example, Louisiana is working on passing a new law in response to carriers sending a constant churn of new adjusters as a way to delay settling. Another example comes from Florida where insurance carriers are claiming estimate amounts are fraudulent to avoid the appraisal process.
So what options are available to Illinois policyholders who are struggling to get a fair claim payment? A new law has been proposed that may offer some help.
Known as HB 0142, this bill proposes that insurance carriers reimburse policyholders for out-of-pocket costs associated with getting a claim fairly paid. Costs include public adjuster fees, engineers, and other experts that have proved a claim was underpaid. Currently, these costs are not recoverable for policyholders without litigation – a costly and time-consuming process.
While HB 1402 will not assist policyholders seeking to file a bad faith claim, it will help ensure they remain “whole” after filing a property damage claim. This is a huge step in the right direction for Illinois policyholders who experience a significant number of severe storms every year.
To learn more about the status of HB 0142 and help us get this legislation passed, apply now to become a member of the American Adjuster Association. Follow us on Facebook and LinkedIn for more news and updates as HB 0142 makes it through the 2021 legislative process.
