Bill Text: IL HB1092 | 2011-2012 | 97th General Assembly | Introduced


Bill Title: Amends the Illinois Insurance Code. In a definition of "uninsured motor vehicle", includes a motor vehicle to which a bodily injury liability bond or policy applies at the time of the accident but the limit of the policy has been reduced by payments to other persons, resulting from the same accident, to an amount less than the limits for bodily injury or death set forth in the Illinois Vehicle Code.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2011-03-17 - Tabled By Sponsor Rep. Jim Watson [HB1092 Detail]

Download: Illinois-2011-HB1092-Introduced.html


97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1092

Introduced 2/4/2011, by Rep. Jim Watson

SYNOPSIS AS INTRODUCED:
215 ILCS 5/143a from Ch. 73, par. 755a

Amends the Illinois Insurance Code. In a definition of "uninsured motor vehicle", includes a motor vehicle to which a bodily injury liability bond or policy applies at the time of the accident but the limit of the policy has been reduced by payments to other persons, resulting from the same accident, to an amount less than the limits for bodily injury or death set forth in the Illinois Vehicle Code.
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A BILL FOR

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1 AN ACT concerning insurance.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5changing Section 143a as follows:
6 (215 ILCS 5/143a) (from Ch. 73, par. 755a)
7 Sec. 143a. Uninsured and hit and run motor vehicle
8coverage.
9 (1) No policy insuring against loss resulting from
10liability imposed by law for bodily injury or death suffered by
11any person arising out of the ownership, maintenance or use of
12a motor vehicle that is designed for use on public highways and
13that is either required to be registered in this State or is
14principally garaged in this State shall be renewed, delivered,
15or issued for delivery in this State unless coverage is
16provided therein or supplemental thereto, in limits for bodily
17injury or death set forth in Section 7-203 of the Illinois
18Vehicle Code for the protection of persons insured thereunder
19who are legally entitled to recover damages from owners or
20operators of uninsured motor vehicles and hit-and-run motor
21vehicles because of bodily injury, sickness or disease,
22including death, resulting therefrom. Uninsured motor vehicle
23coverage does not apply to bodily injury, sickness, disease, or

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1death resulting therefrom, of an insured while occupying a
2motor vehicle owned by, or furnished or available for the
3regular use of the insured, a resident spouse or resident
4relative, if that motor vehicle is not described in the policy
5under which a claim is made or is not a newly acquired or
6replacement motor vehicle covered under the terms of the
7policy. The limits for any coverage for any vehicle under the
8policy may not be aggregated with the limits for any similar
9coverage, whether provided by the same insurer or another
10insurer, applying to other motor vehicles, for purposes of
11determining the total limit of insurance coverage available for
12bodily injury or death suffered by a person in any one
13accident. No policy shall be renewed, delivered, or issued for
14delivery in this State unless it is provided therein that any
15dispute with respect to the coverage and the amount of damages
16shall be submitted for arbitration to the American Arbitration
17Association and be subject to its rules for the conduct of
18arbitration hearings as to all matters except medical opinions.
19As to medical opinions, if the amount of damages being sought
20is equal to or less than the amount provided for in Section
217-203 of the Illinois Vehicle Code, then the current American
22Arbitration Association Rules shall apply. If the amount being
23sought in an American Arbitration Association case exceeds that
24amount as set forth in Section 7-203 of the Illinois Vehicle
25Code, then the Rules of Evidence that apply in the circuit
26court for placing medical opinions into evidence shall govern.

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1Alternatively, disputes with respect to damages and the
2coverage shall be determined in the following manner: Upon the
3insured requesting arbitration, each party to the dispute shall
4select an arbitrator and the 2 arbitrators so named shall
5select a third arbitrator. If such arbitrators are not selected
6within 45 days from such request, either party may request that
7the arbitration be submitted to the American Arbitration
8Association. Any decision made by the arbitrators shall be
9binding for the amount of damages not exceeding $50,000 for
10bodily injury to or death of any one person, $100,000 for
11bodily injury to or death of 2 or more persons in any one motor
12vehicle accident, or the corresponding policy limits for bodily
13injury or death, whichever is less. All 3-person arbitration
14cases proceeding in accordance with any uninsured motorist
15coverage conducted in this State in which the claimant is only
16seeking monetary damages up to the limits set forth in Section
177-203 of the Illinois Vehicle Code shall be subject to the
18following rules:
19 (A) If at least 60 days' written notice of the
20 intention to offer the following documents in evidence is
21 given to every other party, accompanied by a copy of the
22 document, a party may offer in evidence, without foundation
23 or other proof:
24 (1) bills, records, and reports of hospitals,
25 doctors, dentists, registered nurses, licensed
26 practical nurses, physical therapists, and other

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1 healthcare providers;
2 (2) bills for drugs, medical appliances, and
3 prostheses;
4 (3) property repair bills or estimates, when
5 identified and itemized setting forth the charges for
6 labor and material used or proposed for use in the
7 repair of the property;
8 (4) a report of the rate of earnings and time lost
9 from work or lost compensation prepared by an employer;
10 (5) the written opinion of an opinion witness, the
11 deposition of a witness, and the statement of a witness
12 that the witness would be allowed to express if
13 testifying in person, if the opinion or statement is
14 made by affidavit or by certification as provided in
15 Section 1-109 of the Code of Civil Procedure;
16 (6) any other document not specifically covered by
17 any of the foregoing provisions that is otherwise
18 admissible under the rules of evidence.
19 Any party receiving a notice under this paragraph (A)
20 may apply to the arbitrator or panel of arbitrators, as the
21 case may be, for the issuance of a subpoena directed to the
22 author or maker or custodian of the document that is the
23 subject of the notice, requiring the person subpoenaed to
24 produce copies of any additional documents as may be
25 related to the subject matter of the document that is the
26 subject of the notice. Any such subpoena shall be issued in

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1 substantially similar form and served by notice as provided
2 by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
3 shall be returnable not less than 5 days before the
4 arbitration hearing.
5 (B) Notwithstanding the provisions of Supreme Court
6 Rule 213(g), a party who proposes to use a written opinion
7 of an expert or opinion witness or the testimony of an
8 expert or opinion witness at the hearing may do so provided
9 a written notice of that intention is given to every other
10 party not less than 60 days prior to the date of hearing,
11 accompanied by a statement containing the identity of the
12 witness, his or her qualifications, the subject matter, the
13 basis of the witness's conclusions, and his or her opinion.
14 (C) Any other party may subpoena the author or maker of
15 a document admissible under this subsection, at that
16 party's expense, and examine the author or maker as if
17 under cross-examination. The provisions of Section 2-1101
18 of the Code of Civil Procedure shall be applicable to
19 arbitration hearings, and it shall be the duty of a party
20 requesting the subpoena to modify the form to show that the
21 appearance is set before an arbitration panel and to give
22 the time and place set for the hearing.
23 (D) The provisions of Section 2-1102 of the Code of
24 Civil Procedure shall be applicable to arbitration
25 hearings under this subsection.
26 (2) No policy insuring against loss resulting from

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1liability imposed by law for property damage arising out of the
2ownership, maintenance, or use of a motor vehicle shall be
3renewed, delivered, or issued for delivery in this State with
4respect to any private passenger or recreational motor vehicle
5that is designed for use on public highways and that is either
6required to be registered in this State or is principally
7garaged in this State and is not covered by collision insurance
8under the provisions of such policy, unless coverage is made
9available in the amount of the actual cash value of the motor
10vehicle described in the policy or $15,000 whichever is less,
11subject to a $250 deductible, for the protection of persons
12insured thereunder who are legally entitled to recover damages
13from owners or operators of uninsured motor vehicles and
14hit-and-run motor vehicles because of property damage to the
15motor vehicle described in the policy.
16 There shall be no liability imposed under the uninsured
17motorist property damage coverage required by this subsection
18if the owner or operator of the at-fault uninsured motor
19vehicle or hit-and-run motor vehicle cannot be identified. This
20subsection shall not apply to any policy which does not provide
21primary motor vehicle liability insurance for liabilities
22arising from the maintenance, operation, or use of a
23specifically insured motor vehicle.
24 Each insurance company providing motor vehicle property
25damage liability insurance shall advise applicants of the
26availability of uninsured motor vehicle property damage

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1coverage, the premium therefor, and provide a brief description
2of the coverage. Each insurer, with respect to the initial
3renewal, reinstatement, or reissuance of a policy of motor
4vehicle property damage liability insurance shall provide
5present policyholders with the same information in writing.
6That information need be given only once and shall not be
7required in any subsequent renewal, reinstatement or
8reissuance, substitute, amended, replacement or supplementary
9policy. No written rejection shall be required, and the absence
10of a premium payment for uninsured motor vehicle property
11damage shall constitute conclusive proof that the applicant or
12policyholder has elected not to accept uninsured motorist
13property damage coverage.
14 An insurance company issuing uninsured motor vehicle
15property damage coverage may provide that:
16 (i) Property damage losses recoverable thereunder
17 shall be limited to damages caused by the actual physical
18 contact of an uninsured motor vehicle with the insured
19 motor vehicle.
20 (ii) There shall be no coverage for loss of use of the
21 insured motor vehicle and no coverage for loss or damage to
22 personal property located in the insured motor vehicle.
23 (iii) Any claim submitted shall include the name and
24 address of the owner of the at-fault uninsured motor
25 vehicle, or a registration number and description of the
26 vehicle, or any other available information to establish

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1 that there is no applicable motor vehicle property damage
2 liability insurance.
3 Any dispute with respect to the coverage and the amount of
4damages shall be submitted for arbitration to the American
5Arbitration Association and be subject to its rules for the
6conduct of arbitration hearings or for determination in the
7following manner: Upon the insured requesting arbitration,
8each party to the dispute shall select an arbitrator and the 2
9arbitrators so named shall select a third arbitrator. If such
10arbitrators are not selected within 45 days from such request,
11either party may request that the arbitration be submitted to
12the American Arbitration Association. Any arbitration
13proceeding under this subsection seeking recovery for property
14damages shall be subject to the following rules:
15 (A) If at least 60 days' written notice of the
16 intention to offer the following documents in evidence is
17 given to every other party, accompanied by a copy of the
18 document, a party may offer in evidence, without foundation
19 or other proof:
20 (1) property repair bills or estimates, when
21 identified and itemized setting forth the charges for
22 labor and material used or proposed for use in the
23 repair of the property;
24 (2) the written opinion of an opinion witness, the
25 deposition of a witness, and the statement of a witness
26 that the witness would be allowed to express if

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1 testifying in person, if the opinion or statement is
2 made by affidavit or by certification as provided in
3 Section 1-109 of the Code of Civil Procedure;
4 (3) any other document not specifically covered by
5 any of the foregoing provisions that is otherwise
6 admissible under the rules of evidence.
7 Any party receiving a notice under this paragraph (A)
8 may apply to the arbitrator or panel of arbitrators, as the
9 case may be, for the issuance of a subpoena directed to the
10 author or maker or custodian of the document that is the
11 subject of the notice, requiring the person subpoenaed to
12 produce copies of any additional documents as may be
13 related to the subject matter of the document that is the
14 subject of the notice. Any such subpoena shall be issued in
15 substantially similar form and served by notice as provided
16 by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
17 shall be returnable not less than 5 days before the
18 arbitration hearing.
19 (B) Notwithstanding the provisions of Supreme Court
20 Rule 213(g), a party who proposes to use a written opinion
21 of an expert or opinion witness or the testimony of an
22 expert or opinion witness at the hearing may do so provided
23 a written notice of that intention is given to every other
24 party not less than 60 days prior to the date of hearing,
25 accompanied by a statement containing the identity of the
26 witness, his or her qualifications, the subject matter, the

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1 basis of the witness's conclusions, and his or her opinion.
2 (C) Any other party may subpoena the author or maker of
3 a document admissible under this subsection, at that
4 party's expense, and examine the author or maker as if
5 under cross-examination. The provisions of Section 2-1101
6 of the Code of Civil Procedure shall be applicable to
7 arbitration hearings, and it shall be the duty of a party
8 requesting the subpoena to modify the form to show that the
9 appearance is set before an arbitration panel and to give
10 the time and place set for the hearing.
11 (D) The provisions of Section 2-1102 of the Code of
12 Civil Procedure shall be applicable to arbitration
13 hearings under this subsection.
14 (3) For the purpose of the coverage the term "uninsured
15motor vehicle" includes, subject to the terms and conditions of
16the coverage, a motor vehicle where on, before or after the
17accident date the liability insurer thereof is unable to make
18payment with respect to the legal liability of its insured
19within the limits specified in the policy because of the entry
20by a court of competent jurisdiction of an order of
21rehabilitation or liquidation by reason of insolvency on or
22after the accident date. An insurer's extension of coverage, as
23provided in this subsection, shall be applicable to all
24accidents occurring after July 1, 1967 during a policy period
25in which its insured's uninsured motor vehicle coverage is in
26effect. "Uninsured motor vehicle" includes a motor vehicle to

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1which a bodily injury liability bond or policy applies at the
2time of the accident but the limit of the policy has been
3reduced by payments to other persons, resulting from the same
4accident, to an amount less than the limits for bodily injury
5or death set forth in Section 7-203 of the Illinois Vehicle
6Code. Nothing in this Section may be construed to prevent any
7insurer from extending coverage under terms and conditions more
8favorable to its insureds than is required by this Section.
9 (4) In the event of payment to any person under the
10coverage required by this Section and subject to the terms and
11conditions of the coverage, the insurer making the payment
12shall, to the extent thereof, be entitled to the proceeds of
13any settlement or judgment resulting from the exercise of any
14rights of recovery of the person against any person or
15organization legally responsible for the property damage,
16bodily injury or death for which the payment is made, including
17the proceeds recoverable from the assets of the insolvent
18insurer. With respect to payments made by reason of the
19coverage described in subsection (3), the insurer making such
20payment shall not be entitled to any right of recovery against
21the tort-feasor in excess of the proceeds recovered from the
22assets of the insolvent insurer of the tort-feasor.
23 (5) This amendatory Act of 1967 shall not be construed to
24terminate or reduce any insurance coverage or any right of any
25party under this Code in effect before July 1, 1967. This
26amendatory Act of 1990 shall not be construed to terminate or

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1reduce any insurance coverage or any right of any party under
2this Code in effect before its effective date.
3 (6) Failure of the motorist from whom the claimant is
4legally entitled to recover damages to file the appropriate
5forms with the Safety Responsibility Section of the Department
6of Transportation within 120 days of the accident date shall
7create a rebuttable presumption that the motorist was uninsured
8at the time of the injurious occurrence.
9 (7) An insurance carrier may upon good cause require the
10insured to commence a legal action against the owner or
11operator of an uninsured motor vehicle before good faith
12negotiation with the carrier. If the action is commenced at the
13request of the insurance carrier, the carrier shall pay to the
14insured, before the action is commenced, all court costs, jury
15fees and sheriff's fees arising from the action.
16 The changes made by this amendatory Act of 1997 apply to
17all policies of insurance amended, delivered, issued, or
18renewed on and after the effective date of this amendatory Act
19of 1997.
20(Source: P.A. 93-485, eff. 1-1-04.)
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