Just as Illinois law in personal injury accident cases binds physicians and attorneys, insurance companies are also subject to stringent code governing their behavior.
The Illinois Insurance Code, Section 5/154.6, maps out acts by insurance companies considered to be improper claims practices. These include:
- Not attempting in good faith to execute prompt, fair and reasonable settlement of claims in which liability has become reasonably clear;
- 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; and
- 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.