HB1685 EngrossedLRB100 03379 HEP 13384 b
1 AN ACT concerning civil law.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Insurance Claims Fraud Prevention Act is
5amended by changing Section 25 as follows:
6 (740 ILCS 92/25)
7 Sec. 25. Costs and proceeds of action.
8 (a) If the State's Attorney or Attorney General proceeds
9with an action brought by a person under Section 15, that
10person is entitled to receive an amount that the court
11determines is reasonable based upon the extent to which the
12person contributed to the prosecution of the action. Subject to
13subsection (d), the amount awarded to the person who brought
14the action shall not be less than 30% of the proceeds of the
15action or settlement of the claim, and shall be paid from the
16proceeds.
17 (b) If the State's Attorney or Attorney General does not
18proceed with an action brought by a person under Section 15,
19that person shall receive an amount that the court decides is
20reasonable for collecting the civil penalty and damages.
21Subject to subsection (d), the amount shall not be less than
2240% of the proceeds of the action or settlement, and shall be
23paid from the proceeds.

HB1685 Engrossed- 2 -LRB100 03379 HEP 13384 b
1 (c) If the person bringing the action as a result of a
2violation of this Act has paid money to the defendant or to an
3attorney acting on behalf of the defendant in the underlying
4claim, then he or she shall be entitled to up to double the
5amount paid to the defendant or the attorney if that amount is
6greater than 50% of the proceeds.
7 (d) Where the action is one that the court finds to be
8based primarily on disclosures of specific information, other
9than information provided by the person bringing the action
10under Section 15, relating to allegations or transactions in a
11criminal, civil, or administrative hearing, in a legislative or
12administrative report, hearing, audit, or investigation, or
13from the news media, the court may award those sums that it
14considers appropriate, but in no case more than 10% of the
15proceeds, taking into account the significance of the
16information and the role of the person bringing the action in
17advancing the case to litigation.
18 (e) Any payment to a person under subsection (a), (b), (c),
19or (d) shall be made from the proceeds. The person shall also
20receive an amount for reasonable expenses that the court finds
21to have been necessarily incurred, plus reasonable attorney's
22fees and costs. All of those expenses, fees, and costs shall be
23awarded against the defendant.
24 (f) If a local State's Attorney has proceeded with an
25action under this Act, the Treasurer of the County where the
26action was brought shall receive an amount for reasonable

HB1685 Engrossed- 3 -LRB100 03379 HEP 13384 b
1expenses that the court finds to have been necessarily incurred
2by the State's Attorney, including reasonable attorney's fees
3and costs, plus 50% of the funds not awarded to a private
4party. Those amounts shall be used to investigate and prosecute
5insurance fraud, augmenting existing budgets rather than
6replacing them. All remaining funds shall go to the State and
7be deposited in the General Revenue Fund and, when
8appropriated, shall be allocated to appropriate State agencies
9for enhanced insurance fraud investigation, prosecution, and
10prevention efforts.
11 (g) If the Attorney General has proceeded with an action
12under this Act, all funds not awarded to a private party, shall
13go to the State and be deposited in the General Revenue Fund
14and, when appropriated, shall be allocated to appropriate State
15agencies for enhanced insurance fraud investigation,
16prosecution, and prevention efforts.
17 (h) If neither a local State's Attorney or the Attorney
18General has proceeded with an action under this Act, 50% of the
19funds not awarded to a private party shall be deposited with
20the Treasurer of the County where the action was brought and
21shall be disbursed to the State's Attorney of the County where
22the action was brought. Those funds shall be used by the
23State's Attorney solely to investigate, prosecute, and prevent
24crime insurance fraud, augmenting existing budgets rather than
25replacing them. All remaining funds shall go to the State and
26be deposited in the General Revenue Fund and, when

HB1685 Engrossed- 4 -LRB100 03379 HEP 13384 b
1appropriated, shall be allocated to appropriate State agencies
2for enhanced crime insurance fraud investigation, prosecution,
3and prevention efforts.
4 (i) Whether or not the State's Attorney or Attorney General
5proceeds with the action, if the court finds that the action
6was brought by a person who planned and initiated the violation
7of this Act, that person shall be dismissed from the civil
8action and shall not receive any share of the proceeds of the
9action. The dismissal shall not prejudice the right of the
10State's Attorney or Attorney General to continue the action on
11behalf of the State.
12 (j) If the State's Attorney or Attorney General does not
13proceed with the action, and the person bringing the action
14conducts the action, the court may award to the defendant its
15reasonable attorney's fees and expenses if the defendant
16prevails in the action and the court finds that the claim of
17the person bringing the action was clearly frivolous, clearly
18vexatious, or brought primarily for purposes of harassment.
19(Source: P.A. 92-233, eff. 1-1-02.)