Bill Amendment: IL HB4160 | 2025-2026 | 104th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: AUTO INS-RIGHT TO APPRAISAL
Status: 2026-06-01 - Added as Alternate Co-Sponsor Sen. Elgie R. Sims, Jr. [HB4160 Detail]
Download: Illinois-2025-HB4160-Senate_Amendment_001.html
Bill Title: AUTO INS-RIGHT TO APPRAISAL
Status: 2026-06-01 - Added as Alternate Co-Sponsor Sen. Elgie R. Sims, Jr. [HB4160 Detail]
Download: Illinois-2025-HB4160-Senate_Amendment_001.html
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| 1 | AMENDMENT TO HOUSE BILL 4160 | ||||||
| 2 | AMENDMENT NO. ______. Amend House Bill 4160 by replacing | ||||||
| 3 | everything after the enacting clause with the following: | ||||||
| 4 | "Section 5. The Illinois Insurance Code is amended by | ||||||
| 5 | adding Section 143.13b as follows: | ||||||
| 6 | (215 ILCS 5/143.13b new) | ||||||
| 7 | Sec. 143.13b. Right to appraisal. | ||||||
| 8 | (a) Definitions. As used in this Section: | ||||||
| 9 | "Actual cash value" means the fair market value of the | ||||||
| 10 | subject property of the personal automobile insurance policy | ||||||
| 11 | immediately before it was damaged. | ||||||
| 12 | "Amount of loss" means: | ||||||
| 13 | (1) with regard to the repair of the vehicle, the cost | ||||||
| 14 | to repair the damage to the subject property expressed | ||||||
| 15 | monetarily in the context of the repair of a vehicle; and | ||||||
| 16 | (2) with regard to the value of the vehicle, the | ||||||
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| 1 | actual cash value of the vehicle. | ||||||
| 2 | "Appraiser" means an individual selected to determine the | ||||||
| 3 | value of the disputed loss. | ||||||
| 4 | "Business day" means Monday through Friday, excluding | ||||||
| 5 | federal and State holidays. | ||||||
| 6 | "Competent" means an individual with appropriate subject | ||||||
| 7 | matter expertise, training, and experience in automobile | ||||||
| 8 | damage valuation and claims practices. | ||||||
| 9 | "Disinterested" means an individual having no direct or | ||||||
| 10 | indirect financial interest in the outcome of the appraisal. | ||||||
| 11 | "Umpire" means a neutral, competent, and disinterested | ||||||
| 12 | individual with relevant experience in vehicle damage | ||||||
| 13 | assessment, selected under paragraph (3) of subsection (b). | ||||||
| 14 | (b) Right to appraisal for first-party claims. | ||||||
| 15 | (1) Every automobile insurance policy issued, renewed, | ||||||
| 16 | or delivered in Illinois that includes first-party | ||||||
| 17 | coverage for physical damage shall contain a provision | ||||||
| 18 | granting either the insured or the insurer the right to | ||||||
| 19 | invoke appraisal if there is a dispute over the amount of a | ||||||
| 20 | loss. | ||||||
| 21 | (2) If a dispute arises regarding the amount of a | ||||||
| 22 | loss, either party may submit a written demand for | ||||||
| 23 | appraisal. Within 7 business days after receiving the | ||||||
| 24 | demand, each party shall: | ||||||
| 25 | (A) select a competent and disinterested | ||||||
| 26 | appraiser; and | ||||||
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| 1 | (B) notify the opposing party in writing of the | ||||||
| 2 | selection. | ||||||
| 3 | (3) The 2 appraisers shall independently determine the | ||||||
| 4 | amount of loss. If the appraisers fail to agree on the | ||||||
| 5 | amount of a loss within 5 business days after the date of | ||||||
| 6 | their appointment, they shall jointly select a competent | ||||||
| 7 | and disinterested umpire. If the appraisers fail to agree | ||||||
| 8 | on an umpire within 15 business days after they failed to | ||||||
| 9 | agree on the amount of the loss, either party may petition | ||||||
| 10 | a court to appoint a suitable umpire. The Department shall | ||||||
| 11 | maintain a list of competent and disinterested umpires and | ||||||
| 12 | shall furnish that list to any party that requests the | ||||||
| 13 | list. If an umpire is selected pursuant to this Section, a | ||||||
| 14 | final award shall be determined within 5 business days | ||||||
| 15 | after the umpire was selected. | ||||||
| 16 | (4) The 2 appraisers or, if there is a disagreement | ||||||
| 17 | under paragraph (3), one appraiser and the umpire shall | ||||||
| 18 | issue an award determining the amount of the loss. | ||||||
| 19 | (5) An agreement by any 2 of the 3, either both | ||||||
| 20 | appraisers or one appraiser and the umpire, shall be | ||||||
| 21 | binding upon all parties. | ||||||
| 22 | (c) Cost allocation and consumer protections. | ||||||
| 23 | (1) Each party shall bear the cost of its own | ||||||
| 24 | appraiser. | ||||||
| 25 | (2) The cost of the umpire shall be shared equally | ||||||
| 26 | between the parties. | ||||||
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| 1 | (d) Enforcement and penalties. | ||||||
| 2 | (1) Any insurer in Illinois that fails to comply with | ||||||
| 3 | the appraisal provisions of this Section, including any | ||||||
| 4 | refusal to participate in the process in good faith, shall | ||||||
| 5 | be subject to administrative penalties imposed by the | ||||||
| 6 | Department. | ||||||
| 7 | (2) Repeated violations of this Section may result in | ||||||
| 8 | further disciplinary measures, including suspension or | ||||||
| 9 | revocation of the insurer's authority to write automobile | ||||||
| 10 | insurance policies in Illinois. | ||||||
| 11 | (e) This Section shall only apply to policies of | ||||||
| 12 | automobile insurance as defined in subsection (a) of Section | ||||||
| 13 | 143.13 of this Code. The provisions of this Section do not | ||||||
| 14 | apply to either policies for any commercial automobile, | ||||||
| 15 | liability, and property insurance under Section 4 of this Code | ||||||
| 16 | or policies for nonowner's automobile insurance. | ||||||
| 17 | Section 99. Effective date. This Act takes effect July 1, | ||||||
| 18 | 2027.". | ||||||
