Bill Text: IL HB2393 | 2013-2014 | 98th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Insurance Code. Deletes the provision that requires each insurer, with respect to the initial renewal, reinstatement, or reissuance of a policy of motor vehicle property damage liability insurance, to provide present policyholders with information regarding availability of uninsured motor vehicle property damage coverage, the premium therefor, and a brief description of the coverage in writing.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-08-09 - Public Act . . . . . . . . . 98-0242 [HB2393 Detail]
Download: Illinois-2013-HB2393-Introduced.html
Bill Title: Amends the Illinois Insurance Code. Deletes the provision that requires each insurer, with respect to the initial renewal, reinstatement, or reissuance of a policy of motor vehicle property damage liability insurance, to provide present policyholders with information regarding availability of uninsured motor vehicle property damage coverage, the premium therefor, and a brief description of the coverage in writing.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-08-09 - Public Act . . . . . . . . . 98-0242 [HB2393 Detail]
Download: Illinois-2013-HB2393-Introduced.html
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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | |||||||||||||||||||
5 | changing Section 143a as follows:
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6 | (215 ILCS 5/143a) (from Ch. 73, par. 755a)
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7 | Sec. 143a. Uninsured and hit and run motor vehicle | |||||||||||||||||||
8 | coverage.
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9 | (1) No policy insuring against
loss resulting from | |||||||||||||||||||
10 | liability imposed by law for bodily injury or death
suffered by | |||||||||||||||||||
11 | any person arising out of the ownership, maintenance or use
of | |||||||||||||||||||
12 | a motor vehicle that is designed for use on public highways and | |||||||||||||||||||
13 | that
is either required to be registered in this State or is | |||||||||||||||||||
14 | principally garaged
in this State shall be renewed, delivered, | |||||||||||||||||||
15 | or issued for delivery
in this State unless coverage is | |||||||||||||||||||
16 | provided therein or
supplemental thereto, in limits for bodily | |||||||||||||||||||
17 | injury or death set forth in
Section 7-203 of the Illinois | |||||||||||||||||||
18 | Vehicle Code for the
protection of persons insured thereunder | |||||||||||||||||||
19 | who are legally entitled to
recover damages from owners or | |||||||||||||||||||
20 | operators of uninsured motor vehicles and
hit-and-run motor | |||||||||||||||||||
21 | vehicles because of bodily injury, sickness or
disease, | |||||||||||||||||||
22 | including death, resulting therefrom. Uninsured motor vehicle
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23 | coverage does not apply to bodily injury, sickness, disease, or |
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1 | death resulting
therefrom, of an insured while occupying a | ||||||
2 | motor vehicle owned by, or furnished
or available for the | ||||||
3 | regular use of the insured, a resident spouse or resident
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4 | relative, if that motor vehicle is not described in the policy | ||||||
5 | under which a
claim is made or is not a newly acquired or | ||||||
6 | replacement motor vehicle covered
under the terms of the | ||||||
7 | policy. The limits for any coverage for any vehicle
under the | ||||||
8 | policy may not be aggregated with the limits for any similar
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9 | coverage, whether provided by the same insurer or another | ||||||
10 | insurer, applying to
other motor vehicles, for purposes of | ||||||
11 | determining the total limit of insurance
coverage available for | ||||||
12 | bodily injury or death suffered by a person in any one
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13 | accident. No
policy shall be renewed, delivered, or issued for | ||||||
14 | delivery in this
State unless it is provided therein that any | ||||||
15 | dispute
with respect to the coverage and the amount of damages | ||||||
16 | shall be submitted
for arbitration to the
American Arbitration | ||||||
17 | Association and be subject to its rules for the conduct
of | ||||||
18 | arbitration hearings
as to all matters except medical opinions. | ||||||
19 | As to medical opinions, if the
amount of damages being sought | ||||||
20 | is equal to or less than the amount provided for
in Section | ||||||
21 | 7-203 of the Illinois Vehicle Code, then the current American
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22 | Arbitration Association Rules shall apply. If the amount being | ||||||
23 | sought in an
American Arbitration Association case exceeds that | ||||||
24 | amount as set forth in
Section 7-203 of the Illinois Vehicle | ||||||
25 | Code, then the Rules of Evidence that
apply in the circuit | ||||||
26 | court for placing medical opinions into evidence shall
govern. |
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1 | Alternatively, disputes with respect to damages and the | ||||||
2 | coverage shall
be
determined in the
following
manner: Upon the | ||||||
3 | insured requesting arbitration, each party to the
dispute shall | ||||||
4 | select an arbitrator and the 2 arbitrators so named
shall | ||||||
5 | select a third arbitrator. If such arbitrators are not selected
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6 | within 45 days from such request, either party may request that | ||||||
7 | the
arbitration be submitted to the American Arbitration | ||||||
8 | Association.
Any decision made by the arbitrators shall be | ||||||
9 | binding for the amount of
damages not exceeding $50,000 for | ||||||
10 | bodily injury to or
death of any one person, $100,000 for | ||||||
11 | bodily injury to or death of 2 or more
persons in any one motor | ||||||
12 | vehicle accident,
or the corresponding policy limits for bodily | ||||||
13 | injury or death, whichever is
less.
All 3-person arbitration | ||||||
14 | cases proceeding in accordance with any uninsured
motorist
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15 | coverage conducted in this State in
which the claimant is only | ||||||
16 | seeking monetary damages up to the limits
set forth in Section | ||||||
17 | 7-203 of the Illinois Vehicle Code
shall be subject to the | ||||||
18 | following rules:
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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:
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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;
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2 | (2) bills for drugs, medical appliances, and | ||||||
3 | prostheses;
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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;
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8 | (4) a report of the rate of earnings and time lost | ||||||
9 | from work or lost
compensation prepared by an employer;
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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;
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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.
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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.
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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
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12 | witness, his or her qualifications, the subject matter, the | ||||||
13 | basis of the
witness's conclusions,
and his or her opinion.
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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.
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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.
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26 | (2) No policy insuring
against loss resulting from |
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1 | liability imposed by law for property damage
arising out of the | ||||||
2 | ownership, maintenance, or use of a motor vehicle shall
be | ||||||
3 | renewed, delivered, or issued for delivery in this State with | ||||||
4 | respect
to any private passenger or recreational motor vehicle | ||||||
5 | that is
designed for use on public highways and that is either | ||||||
6 | required to be
registered in this State or is principally | ||||||
7 | garaged in this State and
is not covered by collision insurance | ||||||
8 | under the provisions of such
policy, unless coverage is made | ||||||
9 | available in the amount of the actual
cash value of the motor | ||||||
10 | vehicle described in the policy or $15,000
whichever is less, | ||||||
11 | subject to a $250 deductible, for the protection of
persons | ||||||
12 | insured thereunder who are legally entitled to recover damages | ||||||
13 | from
owners or operators of uninsured motor vehicles and | ||||||
14 | hit-and-run motor
vehicles because of property damage to the | ||||||
15 | motor vehicle described in the
policy.
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16 | There shall be no liability imposed under the uninsured | ||||||
17 | motorist
property damage coverage required by this subsection | ||||||
18 | if the owner or
operator of the at-fault uninsured motor | ||||||
19 | vehicle or hit-and-run motor
vehicle cannot be identified. This | ||||||
20 | subsection shall not apply to any
policy which does not provide | ||||||
21 | primary motor vehicle liability insurance for
liabilities | ||||||
22 | arising from the maintenance, operation, or use of a
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23 | specifically insured motor vehicle.
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24 | Each insurance company providing motor vehicle property | ||||||
25 | damage liability
insurance shall advise applicants of the | ||||||
26 | availability of uninsured motor
vehicle property damage |
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1 | coverage, the premium therefor, and provide a brief
description | ||||||
2 | of the coverage. Each insurer, with respect to the initial
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3 | renewal, reinstatement, or reissuance of a policy of motor | ||||||
4 | vehicle property
damage liability insurance shall provide
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5 | present policyholders with the same information in writing. | ||||||
6 | That information
need be given only once and shall not be | ||||||
7 | required in any subsequent renewal,
reinstatement or | ||||||
8 | reissuance, substitute, amended, replacement or
supplementary | ||||||
9 | policy. No written rejection shall be required, and
the absence | ||||||
10 | of a premium payment for uninsured motor vehicle property | ||||||
11 | damage
shall constitute conclusive proof that the applicant or | ||||||
12 | policyholder has
elected not to accept uninsured motorist | ||||||
13 | property damage coverage.
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14 | An insurance company issuing uninsured motor vehicle
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15 | property damage coverage may provide that:
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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.
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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.
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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.
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3 | Any dispute with respect to the coverage and the amount of
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4 | damages shall be submitted for
arbitration to the American | ||||||
5 | Arbitration Association and be subject to its
rules for the | ||||||
6 | conduct of arbitration hearings or for determination in
the | ||||||
7 | following manner: Upon the insured requesting arbitration, | ||||||
8 | each party
to the dispute shall select an arbitrator and the 2 | ||||||
9 | arbitrators so named
shall select a third arbitrator. If such | ||||||
10 | arbitrators are not selected
within 45 days from such request, | ||||||
11 | either party may request that the
arbitration be submitted to | ||||||
12 | the American Arbitration Association.
Any arbitration | ||||||
13 | proceeding under this subsection seeking recovery for
property | ||||||
14 | damages shall be
subject to the following rules:
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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;
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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.
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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.
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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.
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14 | (3) For the purpose of the coverage the term "uninsured | ||||||
15 | motor
vehicle" includes, subject to the terms and conditions of | ||||||
16 | the coverage,
a motor vehicle where on, before or after the | ||||||
17 | accident date the
liability insurer thereof is unable to make | ||||||
18 | payment with respect to the
legal liability of its insured | ||||||
19 | within the limits specified in the policy
because of the entry | ||||||
20 | by a court of competent jurisdiction of an order of
| ||||||
21 | rehabilitation or liquidation by reason of insolvency on or | ||||||
22 | after the
accident date. An insurer's extension of coverage, as | ||||||
23 | provided in this
subsection, shall be applicable to all | ||||||
24 | accidents occurring after July
1, 1967 during a policy period | ||||||
25 | in which its insured's uninsured motor
vehicle coverage is in | ||||||
26 | effect. Nothing in this Section may be construed
to prevent any |
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1 | insurer from extending coverage under terms and
conditions more | ||||||
2 | favorable to its insureds than is required by this Section.
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3 | (4) In the event of payment to any person under the | ||||||
4 | coverage
required by this Section and subject to the terms and | ||||||
5 | conditions of the
coverage, the insurer making the payment | ||||||
6 | shall, to the extent thereof,
be entitled to the proceeds of | ||||||
7 | any settlement or judgment resulting from
the exercise of any | ||||||
8 | rights of recovery of the person against any person
or | ||||||
9 | organization legally responsible for the property damage, | ||||||
10 | bodily
injury or death for which the payment is made, including | ||||||
11 | the proceeds
recoverable from the assets of the insolvent | ||||||
12 | insurer. With respect to
payments made by reason of the | ||||||
13 | coverage described in subsection (3), the
insurer making such | ||||||
14 | payment shall not be entitled to any right of recovery
against | ||||||
15 | the tort-feasor in excess of the proceeds recovered from the | ||||||
16 | assets
of the insolvent insurer of the tort-feasor.
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17 | (5) This amendatory Act of 1967 shall not be construed to | ||||||
18 | terminate
or reduce any insurance coverage or any right of any | ||||||
19 | party under this
Code in effect before July 1, 1967. This | ||||||
20 | amendatory Act of 1990 shall not
be construed to terminate or | ||||||
21 | reduce any insurance coverage or any right of
any party under | ||||||
22 | this Code in effect before its effective date.
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23 | (6) Failure of the motorist from whom the claimant is | ||||||
24 | legally
entitled to recover damages to file the appropriate | ||||||
25 | forms with the
Safety Responsibility Section of the Department | ||||||
26 | of Transportation within
120 days of the accident date shall |
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1 | create a rebuttable presumption that
the motorist was uninsured | ||||||
2 | at the time of the injurious occurrence.
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3 | (7) An insurance carrier may upon good cause require the
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4 | insured to commence a legal action against the owner or | ||||||
5 | operator of an
uninsured motor vehicle before good faith | ||||||
6 | negotiation with the carrier. If
the action is commenced at the | ||||||
7 | request of the insurance carrier, the
carrier shall pay to the | ||||||
8 | insured, before the action is commenced, all court
costs, jury | ||||||
9 | fees and sheriff's fees arising from the action.
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10 | The changes made by this amendatory Act of 1997 apply to | ||||||
11 | all policies of
insurance amended, delivered, issued, or | ||||||
12 | renewed on and after the effective
date of this amendatory Act | ||||||
13 | of 1997.
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14 | (Source: P.A. 93-485, eff. 1-1-04.)
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