Illinois HB3754 regulates the use of collection agents by insurance issuers for outstanding balances.
Illinois HB3754 amends the Illinois Insurance Code to establish rules for insurance issuers when handling outstanding balances. When an insured person or policyholder requests a confirmation of their outstanding balance, the insurer may charge a fee of up to $40, provided it is reasonably related to the work required. The insurer must allow 7 days for the policyholder to either agree to a payment plan or request a different time frame. If no agreement is reached within 7 days or payment is not made by the agreed-upon time frame, the insurer may turn the account over to a collection agent.
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