Tag Archives: Illinois settlement statute

The new Illinois settlement statute aims to expedite the payment of settlements in civil cases—and with stringent penalties on the defendant for non-compliance, the best approach is to be proactive.  While there may be instances of slow to process settlements and late-paying carriers, the real source of delay – both to the frustration of defendants and plaintiffs alike – has been the lengthy intervals required for plaintiffs to resolve outstanding liens and Medicare issues.

So far, the jury is still out on the practical effects of the new law. While many companies and their insurance carriers are already aware of the new rules, a quick review of the requirements and potential pitfalls of the new law is in order as settlements tend to pick up towards the second half of the year.

The law puts the onus on settling defendants to quickly tender releases and pay settlement proceeds by setting statutory deadlines.  It also provides an enforcement mechanism by putting penalties – including the entry of judgment and assessment of costs – on the books.  However, the law provides no time limits, deadlines or penalties on plaintiff for failing to sign the release, resolve lien issues or timely obtain court orders where necessary to approve settlements.  Prudent claims handlers should keep these requirements in mind as they work through settlements and close out their claims. Read More…