HB3754 amends the Illinois Insurance Code to regulate how accident and health insurance issuers handle requests for confirmation of an insured person’s outstanding balance and when unpaid balances may be sent to collections. If a policyholder asks in writing for a balance confirmation, the insurer may charge a fee of up to $40, but the fee must be reasonably related to the work and time needed to verify the amount owed. The bill also limits that fee to one charge per calendar year unless the balance has changed since the prior request.
The bill further requires insurers to take specified steps before referring an unpaid balance to a collection agent. The insurer must send a written notice to the insured person or policyholder, allow 7 calendar days after receipt for the person to acknowledge the notice and agree to pay or request a different payment timeframe, and make a good-faith effort to reach agreement on when the debt will be paid. If no agreement is reached within that period, or if payment is not made by the agreed deadline, the insurer may then send the account to collections.
Impact
The bill would create a new Section 356z.3b in the Illinois Insurance Code and impose new procedural requirements on accident and health insurance issuers regarding balance verification and debt collection. It would affect insurers, policyholders, and collection agents by establishing a capped fee for written balance confirmations and by adding notice and timing requirements before delinquent balances can be referred for collection.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the available context suggests a neutral, consumer-protection-oriented proposal rather than a controversial measure. The bill appears designed to give policyholders clearer notice and a short opportunity to resolve disputed or unpaid balances before collection activity begins, while still preserving insurers’ ability to collect if payment is not arranged.
Contention
The main potential points of contention are the $40 fee for balance confirmations and the 7-day notice-and-response period before collection referral. Insurers may view the fee cap and mandatory waiting period as administrative constraints, while consumer advocates may focus on whether the fee is still too high or whether 7 days is enough time for policyholders to respond. No specific opposition or support is documented in the provided materials.
Requires a member of the public to pay any outstanding balances due and owing for previous requests before being provided copies of records and documents on a new request from law enforcement agencies.