Bill Amendment: IL SB1545 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: VEH CD-INS PAYMENTS-LIENHOLDER

Status: 2019-01-09 - Session Sine Die [SB1545 Detail]

Download: Illinois-2017-SB1545-Senate_Amendment_001.html

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Sen. John G. Mulroe

Filed: 3/10/2017

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AMENDMENT TO SENATE BILL 1545
AMENDMENT NO. ______. Amend Senate Bill 1545 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Vehicle Code is amended by adding
Section 3-202.5 as follows:
(625 ILCS 5/3-202.5 new)
Sec. 3-202.5. Lienholder interest; insurance payments.
(a) An owner of a vehicle shall maintain comprehensive,
collision, or other insurance coverage for the damage or loss
of a vehicle if the coverage is required under the terms of a
loan agreement between the owner and a lienholder identified on
the vehicle's certificate of title. The owner, lienholder, or
agent or representative of the lienholder shall provide the
lienholder's name and address to the insurance company issuing
the insurance coverage and shall request that an endorsement to
the policy be issued naming the lienholder as an additional

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insured entity, which shall be immediately issued by the
insurer.
(b) An insurer paying a claim under this Section for the
damage or loss of a vehicle shall issue the payment to both the
owner of the vehicle and the lienholder. An insurer's
obligation to issue payments to both the owner of the vehicle
and the lienholder shall not apply to a claim paid under a
lienholder's collateral protection insurance policy on a
vehicle securing the lienholder's loan when the vehicle owner
has failed to satisfy a loan condition to provide insurance
coverage for the damage or loss of the vehicle.".