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HB4548 • 2026

INSURANCE-TORT-LIABILITY

INSURANCE-TORT-LIABILITY

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Dan Ugaste
Last action
2026-01-30
Official status
Referred to Rules Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

INSURANCE-TORT-LIABILITY

INSURANCE-TORT-LIABILITY

What This Bill Does

  • INSURANCE-TORT-LIABILITY

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-30 Illinois General Assembly

    First Reading

  2. 2026-01-30 Illinois General Assembly

    Referred to Rules Committee

  3. 2026-01-26 Illinois General Assembly

    Added Co-Sponsor Rep. Kevin Schmidt

  4. 2026-01-22 Illinois General Assembly

    Filed with the Clerk by Rep. Dan Ugaste

Official Summary Text

INSURANCE-TORT-LIABILITY

Current Bill Text

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Illinois General Assembly - Full Text of HB4548

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HB4548 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4548

Introduced 1/30/2026, by Rep. Dan Ugaste and Kevin Schmidt

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Insurance Code. Provides that if an insurer
tenders the lesser of the policy limits or the amount demanded by the
claimant in a statutory or common law action alleging bad faith within 90
days after receiving actual notice of a claim accompanied by sufficient
evidence to support the amount of the claim, no liability may be imposed
against the insurer. Provides that if a named insured, omnibus insured, or
named beneficiary is awarded a declaratory judgment in an action in State
or federal court to determine insurance coverage after the insurer has
made a total coverage denial of a claim, the court must award reasonable
attorney's fees to the named insured, omnibus insured, or named
beneficiary who has prevailed in the action. Creates a presumption that,
in any action by or against a company, if there is an issue of the
liability of a company, and it appears to the court that such action or
delay is vexatious and unreasonable, the court may allow as part of the
taxable costs in the action reasonable attorney's fees, as determined by
the lodestar fee method of multiplying the number of hours reasonably
spent on a case by a reasonable hourly rate, adjusted up or down by a
multiplier to account for factors such as the quality of the work,
complexity of the case, or risk of loss. Provides that this presumption may
be overcome only in rare and exceptional circumstances. Amends the Code of
Civil Procedure. Changes the percentage from 25% to 50% that triggers
joint and several liability of a defendant of all damages. Provides
criteria for the admissibility of unpaid, past, and future medical
expenses in personal injury and wrongful death cases. Amends the Premises
Liability Act. Provides that in an action for damages against the owner,
lessor, operator, or manager of commercial or real property brought by a
person lawfully on the property who was injured by the criminal act of a
third party, the trier of fact must consider the fault of all persons who
contributed to the injury. Makes other changes. Applies to all actions
filed on or after the effective date of the amendatory Act. Effective
immediately.
LRB104 17835 JRC 31269 b

A BILL FOR

HB4548
LRB104 17835 JRC 31269 b
1

AN ACT concerning civil law.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Insurance Code is amended by
5
changing Section 155 and by adding Section 154.11 as follows:

6

(215 ILCS 5/154.11 new)
7

Sec. 154.11.
Immunity from liability.
8

(a) If the insurer tenders the lesser of the policy limits
9
or the amount demanded by the claimant in a statutory or common
10
law action alleging bad faith within 90 days after receiving
11
actual notice of a claim accompanied by sufficient evidence to
12
support the amount of the claim, no liability may be imposed
13
against the insurer. If the insurer fails to tender the limits
14
or amount within 90 days, then the fact that the insurer could
15
have done so but did not is inadmissible in an action to
16
establish bad faith. If the insurer fails to tender that
17
amount within 90 days, then the statute of limitations is
18
extended for an additional 90 days.
19

(b) In any statutory or common law action alleging bad
20
faith, mere negligence alone is insufficient to constitute bad
21
faith. The insured, claimant, and representative of the
22
insured or claimant have a duty to act in good faith in
23
furnishing information regarding the claim, in making demands

HB4548
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LRB104 17835 JRC 31269 b
1
of the insurer, in setting deadlines, and in attempting to
2
settle the claim. This duty does not create a separate cause of
3
action. In any action for bad faith against an insurer, the
4
trier of fact may consider whether the insured, claimant, or
5
representative of the insured or claimant did not act in good
6
faith under this subsection, in which case the trier of fact
7
may reasonably reduce the amount of damages awarded against
8
the insurer.
9

(c) If 3 or more third-party claimants have competing
10
claims arising out of a single occurrence, which in total may
11
exceed the available policy limits of one or more of the
12
insured parties who may be liable to the third-party
13
claimants, an insurer is not liable beyond the available
14
policy limits for failure to pay all or any portion of the
15
available policy limits to one or more of the third-party
16
claimants if, within 90 days after receiving notice of the
17
competing claims in excess of the available policy limits, the
18
insurer:
19

(1) files an interpleader action under the Code of
20

Civil Procedure. If the claims of the competing
21

third-party claimants are found to be in excess of the
22

policy limits, the third-party claimants are entitled to a
23

prorated share of the policy limits as determined by the
24

trier of fact. An insurer's interpleader action does not
25

alter or amend the insurer's obligation to defend its
26

insured.

HB4548
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LRB104 17835 JRC 31269 b
1

(2) Makes the entire amount of the policy limits
2

available for payment to the competing third-party
3

claimants before a qualified arbitrator agreed to by the
4

insurer and third-party claimants at the expense of the
5

insurer. The third-party claimants are entitled to a
6

prorated share of the policy limits as determined by the
7

arbitrator, who must consider the comparative fault, if
8

any, of each third-party claimant, and the total likely
9

outcome at trial based upon the total of the economic and
10

noneconomic damages submitted to the arbitrator for
11

consideration. A third-party claimant whose claim is
12

resolved by the arbitrator must execute and deliver a
13

general release to the insured party whose claim is
14

resolved by the proceeding.

15

(215 ILCS 5/155)

(from Ch. 73, par. 767)
16

Sec. 155.
Attorney fees.
17

(1) In any action by or against a company wherein there is
18
in issue the liability of a company on a policy or policies of
19
insurance or the amount of the loss payable thereunder, or for
20
an unreasonable delay in settling a claim, and it appears to
21
the court that such action or delay is vexatious and
22
unreasonable, the court may allow as part of the taxable costs
23
in the action reasonable attorney fees,
as determined by the
24
lodestar fee method of multiplying the number of hours
25
reasonably spent on a case by a reasonable hourly rate,

HB4548
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LRB104 17835 JRC 31269 b
1
adjusted up or down by a multiplier to account for factors such
2
as the quality of the work, complexity of the case, or risk of
3
loss. This presumption of using the lodestar method may be
4
overcome only in a rare and exceptional circumstance with
5
evidence that competent counsel could not otherwise be
6
retained.

other costs, plus an amount not to exceed any one of
7
the following amounts:

8

(a) 60% of the amount which the court or jury finds
9

such party is entitled to recover against the company,
10

exclusive of all costs;

11

(b) $60,000;

12

(c) the excess of the amount which the court or jury
13

finds such party is entitled to recover, exclusive of
14

costs, over the amount, if any, which the company offered
15

to pay in settlement of the claim prior to the action.
16

(2) Where there are several policies insuring the same
17
insured against the same loss whether issued by the same or by
18
different companies, the court may fix the amount of the
19
allowance so that the total attorney fees on account of one
20
loss shall not be increased by reason of the fact that the
21
insured brings separate suits on such policies.
22

(3) If a named insured, omnibus insured, or named
23
beneficiary is awarded a declaratory judgment in an action in
24
State or federal court to determine insurance coverage after
25
the insurer has made a total coverage denial of a claim, the
26
court must award reasonable attorney's fees to the named

HB4548
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LRB104 17835 JRC 31269 b
1
insured, omnibus insured, or named beneficiary who has
2
prevailed in the action. This right may not be transferred to,
3
assigned to, or acquired in any other manner by anyone other
4
than a named insured, omnibus insured, or named beneficiary. A
5
defense offered by an insurer under a reservation of rights
6
does not constitute a denial of coverage claim. The attorney's
7
fees are limited to those incurred in the action brought under
8
this Code for declaratory relief to determine coverage of
9
insurance issued under this Code. This Section does not apply
10
to any action arising under a residential or commercial
11
property insurance policy.

12
(Source: P.A. 93-485, eff. 1-1-04.)

13

Section 10.
The Code of Civil Procedure is amended by
14
changing Section 2-1117 and by adding Part 30 to Article VIII
15
as follows:

16

(735 ILCS 5/2-1117)

(from Ch. 110, par. 2-1117)
17

Sec. 2-1117.
Joint liability.
Except as provided in
18
Section 2-1118, in actions on account of bodily injury or
19
death or physical damage to property, based on negligence, or
20
product liability based on strict tort liability, all
21
defendants found liable are jointly and severally liable for
22
plaintiff's past and future medical and medically related
23
expenses. Any defendant whose fault, as determined by the
24
trier of fact, is less than
50%

25%
of the total fault
of all

HB4548
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LRB104 17835 JRC 31269 b
1
tortfeasors, including, but not limited to, the plaintiff's
2
employer, nonparties, entities that have settled, or any other
3
person that the trier of fact finds was at fault and a
4
proximate cause of the injury or damage for which recovery is
5
sought by

attributable to
the plaintiff, the defendants sued
6
by the plaintiff, and any third party defendant except the
7
plaintiff's employer, shall be severally liable for all other
8
damages. Any defendant whose fault, as determined by the trier
9
of fact, is
50%

25%
or greater of the total fault
of all
10
tortfeasors, including, but not limited to, the plaintiff's
11
employer, nonparties, entities that have settled, or any other
12
person that the trier of fact finds was at fault and a
13
proximate cause of the injury or damage for which recovery is
14
sought by the plaintiff

attributable to the plaintiff, the
15
defendants sued by the plaintiff, and any third party
16
defendants except the plaintiff's employer,
shall be jointly
17
and severally liable for all other damages.
18

The changes to this Section made by this amendatory Act of
19
the 104th General Assembly apply to actions filed on or after
20
the effective date of this amendatory Act of the 104th General
21
Assembly.

22
(Source: P.A. 93-10, eff. 6-4-03; 93-12, eff. 6-4-03.)

23

(735 ILCS 5/Art. VIII Pt. 30 heading new)
24
Part 30.

Medical Expenses

HB4548
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LRB104 17835 JRC 31269 b
1

(735 ILCS 5/8-3001 new)
2

Sec. 8-3001.
Medical expenses.
3

(a) Definitions. As used in this Section:
4

"Factoring company" means a person that purchases health
5
care provider's accounts receivable at a discount below the
6
invoice value of the accounts.
7

"Health care coverage" means any third-party health care
8
or disability services financing arrangement, including, but
9
not limited to, arrangements with entities certified or
10
authorized under federal law or under the Illinois Insurance
11
Code, State or federal health care benefit programs, workers'
12
compensation, and personal injury protection.
13

"Health care provider" means any of the following: a
14
health care facility or health care practitioner as defined
15
under Section 8-2001 of this Code; clinical laboratory
16
providing services in this State or services to health care
17
providers in this State, if the clinical laboratory is
18
certified by the Centers for Medicare and Medicaid Services
19
under the federal Clinical Laboratory Improvement Amendments
20
and the federal rules adopted thereunder; a federally
21
qualified health center as defined in 42 U.S.C. 1396d(l)(2)(B)
22
as that definition existed on the effective date of this
23
amendatory Act of the 104th General Assembly; and a pharmacy
24
as defined under the Pharmacy Practice Act of 1987.
25

"Letter of protection" means any arrangement by which a
26
health care provider renders treatment in exchange for a

HB4548
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LRB104 17835 JRC 31269 b
1
promise of payment for the claimant's medical expenses from
2
any judgment or settlement of a personal injury or wrongful
3
death action. This includes any such arrangement, regardless
4
of whether referred to as a letter of protection.
5

(b) Admissible evidence of medical treatment or service
6
expenses. Evidence offered to prove the amount of damages for
7
past or future medical treatment or services in a personal
8
injury or wrongful death action is admissible as provided in
9
this subsection.
10

(1) Evidence offered to prove the amount of damages
11

for past medical treatment or services that have been
12

satisfied is limited to evidence of the amount actually
13

paid regardless of the source of payment.
14

(2) Evidence offered to prove the amount necessary to
15

satisfy unpaid charges for incurred medical treatment or
16

services shall include, but is not limited to, evidence as
17

provided in this paragraph.
18

(A) If the claimant has health care coverage other
19

than Medicare or Medicaid, evidence of the amount the
20

health care coverage is obligated to pay the health
21

care provider to satisfy the charges for the
22

claimant's incurred medical treatment or services,
23

plus the claimant's share of medical expenses under
24

the insurance contract or regulation.
25

(B) If the claimant has health care coverage but
26

obtains treatment under a letter of protection or

HB4548
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LRB104 17835 JRC 31269 b
1

otherwise does not submit charges for any health care
2

provider's medical treatment or services to health
3

care coverage, evidence of the amount the claimant's
4

health care coverage would pay the health care
5

provider to satisfy the past unpaid medical charges
6

under the insurance contract or regulation, plus the
7

claimant's share of medical expenses under the
8

insurance contract or regulation, if the claimant
9

obtained medical services or treatment under the
10

health care coverage.
11

(C) If the claimant does not have health care
12

coverage or has health care coverage through Medicare
13

or Medicaid, evidence of 120% of the Medicare
14

reimbursement rate in effect on the date of the
15

claimant's incurred medical treatment or services, or,
16

if there is no applicable Medicare rate for a service,
17

170% of the applicable State Medicaid rate.
18

(D) If the claimant obtains medical treatment or
19

services under a letter of protection and the health
20

care provider later transfers the right to receive
21

payment under the letter of protection to a third
22

party, evidence of the amount the third party paid or
23

agreed to pay the health care provider in exchange for
24

the right to receive payment under the letter of
25

protection.
26

(E) Any evidence of reasonable amounts billed to

HB4548
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LRB104 17835 JRC 31269 b
1

the claimant for medically necessary treatment or
2

medically necessary services provided to the claimant.
3

(3) Evidence offered to prove the amount of damages
4

for any future medical treatment or services the claimant
5

will receive includes, but is not limited to, evidence as
6

provided in this paragraph.
7

(A) If the claimant has health care coverage other
8

than Medicare or Medicaid or is eligible for any such
9

health care coverage, evidence of the amount for which
10

the future charges of health care providers could be
11

satisfied if submitted to the health care coverage,
12

plus the claimant's share of medical expenses under
13

the insurance contract or regulation.
14

(B) If the claimant does not have health care
15

coverage or has health care coverage through Medicare
16

or Medicaid, or is eligible for the health care
17

coverage, evidence of 120% of the Medicare
18

reimbursement rate in effect at the time of trial for
19

the medical treatment or services the claimant will
20

receive, or, if there is no applicable Medicare rate
21

for a service, 170% of the applicable state Medicaid
22

rate.
23

(C) Any evidence of reasonable future amounts to
24

be billed to the claimant for medically necessary
25

treatment or medically necessary services.
26

(4) This subsection does not impose an affirmative

HB4548
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LRB104 17835 JRC 31269 b
1

duty upon any party to seek a reduction in billed charges
2

to which the party is not contractually entitled.
3

(5) Individual contracts between providers and
4

authorized commercial insurers or authorized health
5

maintenance organizations are not subject to discovery or
6

disclosure and are not admissible into evidence.
7

(c) Letters of protection; required disclosures. In a
8
personal injury or wrongful death action, as a condition
9
precedent to asserting any claim for medical expenses for
10
treatment rendered under a letter of protection, the claimant
11
must disclose:
12

(1) A copy of the letter of protection.
13

(2) All billings for the claimant's medical expenses,
14

which must be itemized and, to the extent applicable,
15

coded according to:
16

(A) For health care providers billing at the
17

provider level, the American Medical Association's
18

Current Procedural Terminology (CPT) or the Healthcare
19

Common Procedure Coding System (HCPCS) in effect on
20

the date the services were rendered.
21

(B) For health care providers billing at the
22

facility level for expenses incurred in a clinical or
23

outpatient setting, including when billing through an
24

Ambulatory Payment Classification (APC) or Enhanced
25

Ambulatory Patient Grouping (EAPG); the International
26

Classification of Diseases (ICD) diagnosis code and,

HB4548
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LRB104 17835 JRC 31269 b
1

if applicable, the American Medical Association's
2

Current Procedural Terminology (CPT) in effect on the
3

date the services were rendered.
4

(C) For health care providers billing at the
5

facility level for expenses incurred in an inpatient
6

setting, including when billing through a Diagnosis
7

Related Group (DRG); the International Classification
8

of Diseases (ICD) diagnosis and procedure codes in
9

effect on the date in which the claimant is
10

discharged.
11

(3) If the health care provider sells the accounts
12

receivable for the claimant's medical expenses to a
13

factoring company or other third party:
14

(A) The name of the factoring company or other
15

third party who purchased the accounts.
16

(B) The dollar amount for which the factoring
17

company or other third party purchased the accounts,
18

including any discount provided below the invoice
19

amount.
20

(4) Whether the claimant, at the time medical
21

treatment was rendered, had health care coverage and, if
22

so, the identity of the coverage.
23

(5) Whether the claimant was referred for treatment
24

under a letter of protection and, if so, the identity of
25

the person who made the referral. If the referral is made
26

by the claimant's attorney, disclosure of the referral is

HB4548
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LRB104 17835 JRC 31269 b
1

permitted, and evidence of the referral is admissible. The
2

financial relationship between a law firm and a medical
3

provider, including the number of referrals, frequency,
4

and financial benefit obtained, is relevant to the issue
5

of the bias of a testifying medical provider.
6

(d) Damages recoverable for medical treatment or service
7
expenses. The damages that may be recovered by a claimant in a
8
personal injury or wrongful death action for the reasonable
9
and necessary cost or value of medical care rendered may not
10
include any amount in excess of the evidence of medical
11
treatment and services expenses admitted under subsection (b),
12
and also may not exceed the sum of the following:
13

(1) amounts actually paid by or on behalf of the
14

claimant to a health care provider who rendered medical
15

treatment or services;
16

(2) amounts necessary to satisfy charges for medical
17

treatment or services that are due and owing but at the
18

time of trial are not yet satisfied; and
19

(3) amounts necessary to provide for any reasonable
20

and necessary medical treatment or services the claimant
21

will receive in the future.

22

Section 15.
The Premises Liability Act is amended by
23
adding Sections 5.1 and 5.2 as follows:

24

(740 ILCS 130/5.1 new)

HB4548
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LRB104 17835 JRC 31269 b
1

Sec. 5.1.
Premises liability for criminal acts of third
2
parties.
In an action for damages against the owner, lessor,
3
operator, or manager of commercial or real property brought by
4
a person lawfully on the property who was injured by the
5
criminal act of a third party, the trier of fact must consider
6
the fault of all persons who contributed to the injury.

7

(740 ILCS 130/5.2 new)
8

Sec. 5.2.
Multifamily residential property safety and
9
security.
10

(a) As used in this Section:
11

"Multifamily residential property" means a residential
12
building, or group of residential buildings, such as
13
apartments, townhouses, or condominiums, consisting of at
14
least 5 dwelling units on a particular parcel.
15

"Parcel" means real property for which a distinct parcel
16
identification number is assigned to the property by the
17
property appraiser for the county in which the property is
18
located.
19

(b) The owner or principal operator of a multifamily
20
residential property that substantially implements the
21
following security measures on that property has a presumption
22
against liability in connection with criminal acts that occur
23
on the premises that are committed by third parties who are not
24
employees or agents of the owner or operator:
25

(1) A security camera system at points of entry and

HB4548
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LRB104 17835 JRC 31269 b
1

exit that records and maintains video footage that is
2

retrievable for at least 30 days to assist in offender
3

identification and apprehension.
4

(2) A lighted parking lot illuminated at an intensity
5

of at least an average of 1.8 foot-candles per square foot
6

at 18 inches above the surface from dusk until dawn or
7

controlled by photocell or any similar electronic device
8

that provides light from dusk until dawn.
9

(3) Lighting in walkways, laundry rooms, common areas,
10

and porches. The lighting must be illuminated from dusk
11

until dawn or controlled by photocell or any similar
12

electronic device that provides light from dusk until
13

dawn.
14

(4) At least a one-inch deadbolt in each dwelling unit
15

door.
16

(5) A locking device on each window, each exterior
17

sliding door, and any other doors not used for community
18

purposes.
19

(6) Locked gates with key or fob access along pool
20

fence areas.
21

(7) A peephole or door viewer on each dwelling unit
22

door that does not include a window or that does not have a
23

window next to the door.
24

(c) By January 1, 2028, the owner or principal operator of
25
a multifamily residential property must provide proper crime
26
deterrence and safety training to its current employees. After

HB4548
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LRB104 17835 JRC 31269 b
1
January 1, 2028, the owner or principal operator must provide
2
this training to an employee within 60 days after the hiring
3
date for purposes of this paragraph. For purposes of this
4
subsection, "proper crime deterrence and safety training"
5
means training that trains and familiarizes employees with the
6
security principles, devices, measures, and standards set
7
forth under subsection (b), and that is reviewed at least
8
every 3 years and updated as necessary. The owner or principal
9
operator may request a law enforcement agency to review the
10
training curriculum.
11

(d) For purposes of establishing the presumption against
12
liability under subsection (b), the burden of proof is on the
13
owner or principal operator to demonstrate that the owner or
14
principal operator has substantially implemented the security
15
measures specified in subsection (b).
16

(e) This Section does not establish a private cause of
17
action.

18

Section 97.
This Act may not be construed to impair any
19
right under an insurance contract in effect on or before the
20
effective date of this Act. To the extent that this Act affects
21
a right under an insurance contract, this Act applies to an
22
insurance contract issued or renewed after the effective date
23
of this Act.

24

Section 98.
Except as otherwise expressly provided in

HB4548
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LRB104 17835 JRC 31269 b
1
Section 10, this Act applies to all actions filed on or after
2
the effective date of this Act.

3

Section 99.
Effective date.
This Act takes effect upon
4
becoming law.

HB4548
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LRB104 17835 JRC 31269 b
1

INDEX

2

Statutes amended in order of appearance

3

215 ILCS 5/154.11 new
4

215 ILCS 5/155
from Ch. 73, par. 767
5

735 ILCS 5/2-1117
from Ch. 110, par. 2-1117
6

735 ILCS 5/Art. VIII Pt.
7

30 heading new
8

735 ILCS 5/8-3001 new
9

740 ILCS 130/5.1 new
10

740 ILCS 130/5.2 new

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