Illinois General Assembly - Full Text of HB3754

LRB104 12262 BAB 22374 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3754

Introduced 2/18/2025, by Rep. Mary Gill

SYNOPSIS AS INTRODUCED:

215 ILCS 5/356z.3b new

Amends the Accident and Health Insurance Article of the Illinois Insurance Code. Provides that when an insured person or policyholder requests, in writing, from the insurance issuer a confirmation of the current outstanding balance due from the insured person or policyholder, the insurance issuer may charge a fee of no more than $40 to provide that information. Requires the fee to be reasonably related to the work and time required to confirm the total balance owed. Sets forth requirements that must be met before an insurance issuer may turn an outstanding balance over to a collection agent, including requiring a written communication to the insured person or policyholder from whom money is owed, requiring the insurer to allow the insured person or policyholder 7 calendar days after receipt of the written communication to either confirm receipt of the written communication and agree to pay or to request a different time frame, and the insurer to attempt in good faith to agree on a time frame for all outstanding moneys owed to be paid. Provides that if an agreement to pay is not reached within 7 calendar days after receipt of the written notice or payment is not made by the agreed-upon time frame, the insurance issuer may turn the delinquent account over to a collection agent.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by adding Section 356z.3b as follows:

(215 ILCS 5/356z.3b new)

Sec. 356z.3b. Statement of balance owed; use of collection agents.

(a) When an insured person or policyholder requests, in writing, from the insurance issuer a confirmation of the current outstanding balance due from the insured person or policyholder, the insurance issuer may charge a fee of no more than $40 to provide that information. However, the fee amount must be reasonably related to the work and time required to confirm the total balance owed. This fee may only be charged one time per calendar year, unless the balance owed has changed between the time the first and any subsequent request was made.

(b) Before an insurance issuer may turn an outstanding balance owed over to a collection agent, the insurance issuer must do all of the following:

(1) Send a written communication to the insured person or policyholder from whom the outstanding balance is owed, including a time frame on which payment must be made. If the terms of the policy do not provide for this time frame, a reasonable time frame may be set.

(2) Allow the insured person or policyholder 7 calendar days after receipt of the written communication to confirm receipt of the written communication and either agree to pay or to request a different time frame for payment.

(3) Attempt in good faith to agree on a time frame for the payment of all outstanding moneys.

(c) If an agreement to pay pursuant to subsection (b) is not reached within 7 calendar days after receipt of the written notice or payment is not made by the agreed-upon time frame, the insurance issuer may turn the delinquent account over to a collection agent.