Illinois Compiled Statutes
215 ILCS 5/154.6 (2026)
Acts constituting improper claims practice
✓ current as of May 2026
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(215 ILCS 5/154.6)
(from Ch. 73, par. 766.6)
Sec. 154.6. Acts constituting improper claims practice. Any of the
following acts by a company, if committed without just cause and in
violation of Section 154.5, constitutes an improper claims practice:
(a) Knowingly misrepresenting to claimants and insureds relevant
facts or policy provisions relating to coverages at issue;
(b) Failing to acknowledge with reasonable promptness pertinent
communications with respect to claims arising under its policies;
(c) Failing to adopt and implement reasonable standards for the
prompt investigations and settlement of claims arising under its policies;
(d) Not attempting in good faith to effectuate prompt, fair and
equitable settlement of claims submitted in which liability has become
reasonably clear;
(e) 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;
(f) Engaging in activity which results in a disproportionate number
of meritorious complaints against the insurer received by the Insurance
Department;
(g) Engaging in activity which results in a disproportionate number
of lawsuits to be filed against the insurer or its insureds by
claimants;
(h) Refusing to pay claims without conducting a reasonable
investigation based on all available information;
(i) Failing to affirm or deny coverage of claims within a reasonable
time after proof of loss statements have been completed;
(j) Attempting to settle a claim for less than the amount to which a
reasonable person would believe the claimant was entitled, by reference
to written or printed advertising material accompanying or made part of
an application or establishing unreasonable caps or limits on paint
or materials
when estimating vehicle repairs;
(k) Attempting to settle claims on the basis of an application which
was altered without notice to, or knowledge or consent of, the insured;
(l) Making a claims payment to a policyholder or beneficiary
omitting the coverage under which each payment is being made;
(m) 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;
(n) Failing in the case of the denial of a claim or the offer of a
compromise settlement to promptly provide a reasonable and accurate
explanation of the basis in the insurance policy or applicable law for
such denial or compromise settlement;
(o) Failing to provide forms necessary to present claims within 15
working days of a request with such explanations as are necessary to use
them effectively;
(p) Failing to adopt and implement reasonable standards to verify that
a repairer designated by the insurance company to provide an estimate,
perform repairs, or engage in any other service in connection with an
insured loss on a vehicle is duly licensed under Section 5-301 of the
Illinois Vehicle Code;
(q) Failing to provide as a persistent tendency a notification on any
written estimate prepared by an insurance company in connection with an
insured loss that Illinois law requires that vehicle repairers must be
licensed in accordance with Section 5-301 of the Illinois Vehicle Code;
(r) Failing to pay the replacement vehicle use or occupation tax, title, and transfer fees required by Section 154.9 of this Code; (s) Engaging in any other acts which are in substance equivalent to
any of the foregoing.
(Source: P.A. 102-69, eff. 7-1-22.)
Notes of Decisions
Cited in 30
cases (17 in the last 5 years), 1993–2026 · leading case: Gina Bernacchi v. First Chicago Ins. Compan, 52 F.4th 324 (7th Cir. 2022).
Gina Bernacchi v. First Chicago Ins. Compan, 52 F.4th 324 (7th Cir. 2022). “40 and 215 ILCS 5/154.6 for the proposition that “[a]n essential function of one’s insurance company is to adjust claims for benefits made by its insureds” but not the contract.”
Zagorski v. Allstate Ins. Co., 2016 IL App (5th) 140056 (Ill. App. Ct. 2016). “6 of the Code (215 ILCS 5/154.6 (West 2010)) may provide guidance as to whether an insurer's conduct is vexatious and unreasonable.”
Twin City Fire Ins. v. Old World Trading Co., 639 N.E.2d 584 (Ill. App. Ct. 1993). “6 (215 ILCS 5/154.6 (West 1992)). The applicable provisions of section 154.”
Charter Props., Inc. v. Rockford Mut. Ins. Co., 2018 IL App (2d) 170637 (Ill. App. Ct. 2018). “¶ 17 On November 9, 2012, plaintiff filed its original complaint, alleging improper claims practice ( 215 ILCS 5/154.6, 155 (West 2012) ), violations of the Consumer Fraud and Deceptive Business Practices Act ( 815 ILCS 505/1 et seq.”
Am. Serv. Ins. v. Passarelli, 752 N.E.2d 635 (Ill. App. Ct. 2001). “6 and attorney fees and costs under section 155 of the Illinois Insurance Code (the Code) (215 ILCS 5/154.6, 155 (West 1996)) as part of the arbitration of his car accident claim.”
AU Elec., Inc. v. Harleysville Grp., Inc., 82 F. Supp. 3d 805 (N.D. Ill. 2015). “Defendants had no duty to defend or indemnify Plaintiffs in the underlying lawsuits.”
Worley v. Fender, 2017 IL App (5th) 160110 (Ill. App. Ct. 2017). “6 of the Illinois Insurance Code (215 ILCS 5/154.6 (West 2010)). Plaintiff sought money damages and attorney fees.”
Paul Carnes v. HMO Louisiana, Inc., 114 F.4th 927 (7th Cir. 2024). “On appeal, he specifically references 215 ILCS 5/154.6, arguing that HMO Louisiana committed an improper claims practice by “[n]ot attempting in good faith to effectuate prompt, fair and equitable settlement of claims” or by “[r]efusing to pay claims without conducting a…”
Dixon Distrib. Co. v. Hanover Ins., 612 N.E.2d 846 (Ill. App. Ct. 1993). “6(a) (now 215 ILCS 5/154.6 (West 1992)).) If International’s insurance policy excludes coverage for any intentional tort, then the insurance contract could be considered a fraud and International could be liable under various statutes and common law theories prohibiting such…”
Area Erectors, Inc. v. Travelers Prop. Cas. Co. of Am., 2012 IL App (1st) 111764 (Ill. App. Ct. 2012). “6 and 155 of the Illinois Insurance Code (215 ILCS 5/154.6, 155 (West 2006)) and section 919.”
Remprex, LLC v. Certain Underwriters at Lloyd's London, Syndicates 2623/623, 2023 IL App (1st) 211097 (Ill. App. Ct. 2023). “¶ 20 Lloyd’s also contended that Remprex failed to state a claim in count III (bad faith) under 215 ILCS 5/154.6 (West 2020)), because the complaint pled no facts to support its “bare assertion” of improper claims handling, and because the statute relied upon was regulatory,…”
Ginocchio v. Am. Bankers Life Assurance Co., 889 F. Supp. 1078 (N.D. Ill. 1995). “5, 215 ILCS 5/154.6, and 215 ILCS 5/155 (“ § 155”) (Count III), and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2 and 815 ILCS 505/10a (Count IV).”
— 215 ILCS 5/154.6(c) — 2 cases
Millis, M.D. v. Ameritas Life Ins. Corp. (N.D. Ill. 2022).
Huskey v. State Farm Fire & Cas. Co. (N.D. Ill. 2023).
— 215 ILCS 5/154.6(d) — 3 cases
Paul Carnes v. HMO Louisiana, Inc., 114 F.4th 927 (7th Cir. 2024). “On appeal, he specifically references 215 ILCS 5/154.6, arguing that HMO Louisiana committed an improper claims practice by “[n]ot attempting in good faith to effectuate prompt, fair and equitable settlement of claims” or by “[r]efusing to pay claims without conducting a…”
Huskey v. State Farm Fire & Cas. Co. (N.D. Ill. 2023).
Barter-Storm v. Country Mut. Ins. Co., 2026 IL App (5th) 241090-U (Ill. App. Ct. 2026).
— 215 ILCS 5/154.6(f) — 1 case
Zagorski v. Allstate Ins. Co., 2016 IL App (5th) 140056 (Ill. App. Ct. 2016). “6 of the Code (215 ILCS 5/154.6 (West 2010)) may provide guidance as to whether an insurer's conduct is vexatious and unreasonable.”
— 215 ILCS 5/154.6(i) — 1 case
Cambridge Mut. Fire Ins. Co. v. Gaca (N.D. Ill. 2022).
— 215 ILCS 5/154.6(n) — 1 case
SmileDirectClub, LLC v. Delta Dental Plans Ass'n, 2022 IL App (1st) 220208-U (Ill. App. Ct. 2022).
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