An Illinois bill allowing punitive damages in wrongful death cases will increase already high litigation costs, the American Property Casualty Insurance Association and the Illinois Insurance Association say.
The groups issued the following statement in response to HB 219, addressing punitive damages in wrongful death cases:
“As the Illinois Legislature nears adjournment, HB 219, which allows punitive damages in wrongful death cases is being fast tracked. This legislation would likely increase claims, litigation, jury verdicts, and settlements costs. It would have a detrimental impact on Illinois civil defendants, consumers, businesses, health care providers, and insurers.”
The groups say that passing the bill would “reverse current law,” which prohibits insurers from paying punitive damages, and it would make Illinois an outlier in terms of allowable damages for wrongful death cases, as nearly all states that do allow for punitive damages also cap punitive and non-economic damages, which Illinois does not.
“Increasing the available damages in this manner will almost certainly result in an increase in claims and lawsuit filings, and will drive up the costs of defense, settlement and claims administration,” the groups argue. “A policy shift of this significance, expanding wrongful death recovery to allow for punitive damages, would likely have a detrimental impact on Illinois civil defendants, consumers, businesses, health care providers, and insurers due to increased claims, litigation, jury verdicts, and settlements. This would significantly increase insured losses, placing upward pressure on premiums.”
Topics Illinois
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