Bill Text: IL HB3612 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Provides that insurers providing a commercial general liability policy that includes hired automobile and non-owned automobile liability are neither required to provide, nor are they prohibited from offering or making available uninsured and hit and run vehicle coverage. Provides that insurers providing a commercial automobile policy shall offer and provide such coverage as required by the Illinois Vehicle Code to contract carriers transporting employees in the course of their employment. Effective immediately.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB3612 Detail]

Download: Illinois-2009-HB3612-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB3612 Introduced 2/24/2009, by Rep. JoAnn D. Osmond SYNOPSIS AS INTRODUCED:
215 ILCS 5/143a from Ch. 73, par. 755a
215 ILCS 5/143a-2 from Ch. 73, par. 755a-2
Amends the Illinois Insurance Code. Provides that insurers providing a commercial general liability policy that includes hired automobile and non-owned automobile liability are neither required to provide, nor are they prohibited from offering or making available uninsured and hit and run vehicle coverage. Provides that insurers providing a commercial automobile policy shall offer and provide such coverage as required by the Illinois Vehicle Code to contract carriers transporting employees in the course of their employment. Effective immediately.
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A BILL FOR
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AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Sections 143a and 143a-2 as follows:
(215 ILCS 5/143a) (from Ch. 73, par. 755a)
Sec. 143a. Uninsured and hit and run motor vehicle
coverage.
(1) No policy insuring against loss resulting from
liability imposed by law for bodily injury or death suffered by
any person arising out of the ownership, maintenance or use of
a motor vehicle that is designed for use on public highways and
that is either required to be registered in this State or is
principally garaged in this State shall be renewed, delivered,
or issued for delivery in this State unless coverage is
provided therein or supplemental thereto, in limits for bodily
injury or death set forth in Section 7-203 of the Illinois
Vehicle Code for the protection of persons insured thereunder
who are legally entitled to recover damages from owners or
operators of uninsured motor vehicles and hit-and-run motor
vehicles because of bodily injury, sickness or disease,
including death, resulting therefrom. Insurers providing a
commercial general liability policy that includes hired

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automobile and non-owned automobile liability are neither
required to provide, nor are they prohibited from offering or
making available, coverages conforming to this Section.
Insurers providing a commercial automobile policy shall offer
and provide such coverage as required by subsection (c) of
Section 8-101 of the Illinois Vehicle Code to contract carriers
transporting employees in the course of their employment.
Uninsured motor vehicle coverage does not apply to bodily
injury, sickness, disease, or death resulting therefrom, of an
insured while occupying a motor vehicle owned by, or furnished
or available for the regular use of the insured, a resident
spouse or resident relative, if that motor vehicle is not
described in the policy under which a claim is made or is not a
newly acquired or replacement motor vehicle covered under the
terms of the policy. The limits for any coverage for any
vehicle under the policy may not be aggregated with the limits
for any similar coverage, whether provided by the same insurer
or another insurer, applying to other motor vehicles, for
purposes of determining the total limit of insurance coverage
available for bodily injury or death suffered by a person in
any one accident. No policy shall be renewed, delivered, or
issued for delivery in this State unless it is provided therein
that any dispute with respect to the coverage and the amount of
damages shall be submitted for arbitration to the American
Arbitration Association and be subject to its rules for the
conduct of arbitration hearings as to all matters except

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medical opinions. As to medical opinions, if the amount of
damages being sought is equal to or less than the amount
provided for in Section 7-203 of the Illinois Vehicle Code,
then the current American Arbitration Association Rules shall
apply. If the amount being sought in an American Arbitration
Association case exceeds that amount as set forth in Section
7-203 of the Illinois Vehicle Code, then the Rules of Evidence
that apply in the circuit court for placing medical opinions
into evidence shall govern. Alternatively, disputes with
respect to damages and the coverage shall be determined in the
following manner: Upon the insured requesting arbitration,
each party to the dispute shall select an arbitrator and the 2
arbitrators so named shall select a third arbitrator. If such
arbitrators are not selected within 45 days from such request,
either party may request that the arbitration be submitted to
the American Arbitration Association. Any decision made by the
arbitrators shall be binding for the amount of damages not
exceeding $50,000 for bodily injury to or death of any one
person, $100,000 for bodily injury to or death of 2 or more
persons in any one motor vehicle accident, or the corresponding
policy limits for bodily injury or death, whichever is less.
All 3-person arbitration cases proceeding in accordance with
any uninsured motorist coverage conducted in this State in
which the claimant is only seeking monetary damages up to the
limits set forth in Section 7-203 of the Illinois Vehicle Code
shall be subject to the following rules:

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(A) If at least 60 days' written notice of the
intention to offer the following documents in evidence is
given to every other party, accompanied by a copy of the
document, a party may offer in evidence, without foundation
or other proof:
(1) bills, records, and reports of hospitals,
doctors, dentists, registered nurses, licensed
practical nurses, physical therapists, and other
healthcare providers;
(2) bills for drugs, medical appliances, and
prostheses;
(3) property repair bills or estimates, when
identified and itemized setting forth the charges for
labor and material used or proposed for use in the
repair of the property;
(4) a report of the rate of earnings and time lost
from work or lost compensation prepared by an employer;
(5) the written opinion of an opinion witness, the
deposition of a witness, and the statement of a witness
that the witness would be allowed to express if
testifying in person, if the opinion or statement is
made by affidavit or by certification as provided in
Section 1-109 of the Code of Civil Procedure;
(6) any other document not specifically covered by
any of the foregoing provisions that is otherwise
admissible under the rules of evidence.

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Any party receiving a notice under this paragraph (A)
may apply to the arbitrator or panel of arbitrators, as the
case may be, for the issuance of a subpoena directed to the
author or maker or custodian of the document that is the
subject of the notice, requiring the person subpoenaed to
produce copies of any additional documents as may be
related to the subject matter of the document that is the
subject of the notice. Any such subpoena shall be issued in
substantially similar form and served by notice as provided
by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
shall be returnable not less than 5 days before the
arbitration hearing.
(B) Notwithstanding the provisions of Supreme Court
Rule 213(g), a party who proposes to use a written opinion
of an expert or opinion witness or the testimony of an
expert or opinion witness at the hearing may do so provided
a written notice of that intention is given to every other
party not less than 60 days prior to the date of hearing,
accompanied by a statement containing the identity of the
witness, his or her qualifications, the subject matter, the
basis of the witness's conclusions, and his or her opinion.
(C) Any other party may subpoena the author or maker of
a document admissible under this subsection, at that
party's expense, and examine the author or maker as if
under cross-examination. The provisions of Section 2-1101
of the Code of Civil Procedure shall be applicable to

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arbitration hearings, and it shall be the duty of a party
requesting the subpoena to modify the form to show that the
appearance is set before an arbitration panel and to give
the time and place set for the hearing.
(D) The provisions of Section 2-1102 of the Code of
Civil Procedure shall be applicable to arbitration
hearings under this subsection.
(2) No policy insuring against loss resulting from
liability imposed by law for property damage arising out of the
ownership, maintenance, or use of a motor vehicle shall be
renewed, delivered, or issued for delivery in this State with
respect to any private passenger or recreational motor vehicle
that is designed for use on public highways and that is either
required to be registered in this State or is principally
garaged in this State and is not covered by collision insurance
under the provisions of such policy, unless coverage is made
available in the amount of the actual cash value of the motor
vehicle described in the policy or $15,000 whichever is less,
subject to a $250 deductible, for the protection of persons
insured thereunder who are legally entitled to recover damages
from owners or operators of uninsured motor vehicles and
hit-and-run motor vehicles because of property damage to the
motor vehicle described in the policy.
There shall be no liability imposed under the uninsured
motorist property damage coverage required by this subsection
if the owner or operator of the at-fault uninsured motor

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vehicle or hit-and-run motor vehicle cannot be identified. This
subsection shall not apply to any policy which does not provide
primary motor vehicle liability insurance for liabilities
arising from the maintenance, operation, or use of a
specifically insured motor vehicle.
Each insurance company providing motor vehicle property
damage liability insurance shall advise applicants of the
availability of uninsured motor vehicle property damage
coverage, the premium therefor, and provide a brief description
of the coverage. Each insurer, with respect to the initial
renewal, reinstatement, or reissuance of a policy of motor
vehicle property damage liability insurance shall provide
present policyholders with the same information in writing.
That information need be given only once and shall not be
required in any subsequent renewal, reinstatement or
reissuance, substitute, amended, replacement or supplementary
policy. No written rejection shall be required, and the absence
of a premium payment for uninsured motor vehicle property
damage shall constitute conclusive proof that the applicant or
policyholder has elected not to accept uninsured motorist
property damage coverage.
An insurance company issuing uninsured motor vehicle
property damage coverage may provide that:
(i) Property damage losses recoverable thereunder
shall be limited to damages caused by the actual physical
contact of an uninsured motor vehicle with the insured

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motor vehicle.
(ii) There shall be no coverage for loss of use of the
insured motor vehicle and no coverage for loss or damage to
personal property located in the insured motor vehicle.
(iii) Any claim submitted shall include the name and
address of the owner of the at-fault uninsured motor
vehicle, or a registration number and description of the
vehicle, or any other available information to establish
that there is no applicable motor vehicle property damage
liability insurance.
Any dispute with respect to the coverage and the amount of
damages shall be submitted for arbitration to the American
Arbitration Association and be subject to its rules for the
conduct of arbitration hearings or for determination in the
following manner: Upon the insured requesting arbitration,
each party to the dispute shall select an arbitrator and the 2
arbitrators so named shall select a third arbitrator. If such
arbitrators are not selected within 45 days from such request,
either party may request that the arbitration be submitted to
the American Arbitration Association. Any arbitration
proceeding under this subsection seeking recovery for property
damages shall be subject to the following rules:
(A) If at least 60 days' written notice of the
intention to offer the following documents in evidence is
given to every other party, accompanied by a copy of the
document, a party may offer in evidence, without foundation

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or other proof:
(1) property repair bills or estimates, when
identified and itemized setting forth the charges for
labor and material used or proposed for use in the
repair of the property;
(2) the written opinion of an opinion witness, the
deposition of a witness, and the statement of a witness
that the witness would be allowed to express if
testifying in person, if the opinion or statement is
made by affidavit or by certification as provided in
Section 1-109 of the Code of Civil Procedure;
(3) any other document not specifically covered by
any of the foregoing provisions that is otherwise
admissible under the rules of evidence.
Any party receiving a notice under this paragraph (A)
may apply to the arbitrator or panel of arbitrators, as the
case may be, for the issuance of a subpoena directed to the
author or maker or custodian of the document that is the
subject of the notice, requiring the person subpoenaed to
produce copies of any additional documents as may be
related to the subject matter of the document that is the
subject of the notice. Any such subpoena shall be issued in
substantially similar form and served by notice as provided
by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
shall be returnable not less than 5 days before the
arbitration hearing.

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(B) Notwithstanding the provisions of Supreme Court
Rule 213(g), a party who proposes to use a written opinion
of an expert or opinion witness or the testimony of an
expert or opinion witness at the hearing may do so provided
a written notice of that intention is given to every other
party not less than 60 days prior to the date of hearing,
accompanied by a statement containing the identity of the
witness, his or her qualifications, the subject matter, the
basis of the witness's conclusions, and his or her opinion.
(C) Any other party may subpoena the author or maker of
a document admissible under this subsection, at that
party's expense, and examine the author or maker as if
under cross-examination. The provisions of Section 2-1101
of the Code of Civil Procedure shall be applicable to
arbitration hearings, and it shall be the duty of a party
requesting the subpoena to modify the form to show that the
appearance is set before an arbitration panel and to give
the time and place set for the hearing.
(D) The provisions of Section 2-1102 of the Code of
Civil Procedure shall be applicable to arbitration
hearings under this subsection.
(3) For the purpose of the coverage the term "uninsured
motor vehicle" includes, subject to the terms and conditions of
the coverage, a motor vehicle where on, before or after the
accident date the liability insurer thereof is unable to make
payment with respect to the legal liability of its insured

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within the limits specified in the policy because of the entry
by a court of competent jurisdiction of an order of
rehabilitation or liquidation by reason of insolvency on or
after the accident date. An insurer's extension of coverage, as
provided in this subsection, shall be applicable to all
accidents occurring after July 1, 1967 during a policy period
in which its insured's uninsured motor vehicle coverage is in
effect. Nothing in this Section may be construed to prevent any
insurer from extending coverage under terms and conditions more
favorable to its insureds than is required by this Section.
(4) In the event of payment to any person under the
coverage required by this Section and subject to the terms and
conditions of the coverage, the insurer making the payment
shall, to the extent thereof, be entitled to the proceeds of
any settlement or judgment resulting from the exercise of any
rights of recovery of the person against any person or
organization legally responsible for the property damage,
bodily injury or death for which the payment is made, including
the proceeds recoverable from the assets of the insolvent
insurer. With respect to payments made by reason of the
coverage described in subsection (3), the insurer making such
payment shall not be entitled to any right of recovery against
the tort-feasor in excess of the proceeds recovered from the
assets of the insolvent insurer of the tort-feasor.
(5) This amendatory Act of 1967 shall not be construed to
terminate or reduce any insurance coverage or any right of any

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party under this Code in effect before July 1, 1967. This
amendatory Act of 1990 shall not be construed to terminate or
reduce any insurance coverage or any right of any party under
this Code in effect before its effective date.
(6) Failure of the motorist from whom the claimant is
legally entitled to recover damages to file the appropriate
forms with the Safety Responsibility Section of the Department
of Transportation within 120 days of the accident date shall
create a rebuttable presumption that the motorist was uninsured
at the time of the injurious occurrence.
(7) An insurance carrier may upon good cause require the
insured to commence a legal action against the owner or
operator of an uninsured motor vehicle before good faith
negotiation with the carrier. If the action is commenced at the
request of the insurance carrier, the carrier shall pay to the
insured, before the action is commenced, all court costs, jury
fees and sheriff's fees arising from the action.
The changes made by this amendatory Act of 1997 apply to
all policies of insurance amended, delivered, issued, or
renewed on and after the effective date of this amendatory Act
of 1997.
(Source: P.A. 93-485, eff. 1-1-04.)
(215 ILCS 5/143a-2) (from Ch. 73, par. 755a-2)
Sec. 143a-2. (1) Additional uninsured motor vehicle
coverage. No policy insuring against loss resulting from

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liability imposed by law for bodily injury or death suffered by
any person arising out of the ownership, maintenance or use of
a motor vehicle shall be renewed or delivered or issued for
delivery in this State with respect to any motor vehicle
designed for use on public highways and required to be
registered in this State unless uninsured motorist coverage as
required in Section 143a of this Code is included in an amount
equal to the insured's bodily injury liability limits unless
specifically rejected by the insured as provided in subsection
paragraph (2) of this Section. Each insurance company providing
the coverage must provide applicants with a brief description
of the coverage and advise them of their right to reject the
coverage in excess of the limits set forth in Section 7-203 of
The Illinois Vehicle Code. The provisions of this amendatory
Act of 1990 apply to policies of insurance applied for after
June 30, 1991.
(2) Right of rejection of additional uninsured motorist
coverage. Any named insured or applicant may reject additional
uninsured motorist coverage in excess of the limits set forth
in Section 7-203 of the Illinois Vehicle Code by making a
written request for limits of uninsured motorist coverage which
are less than bodily injury liability limits or a written
rejection of limits in excess of those required by law. This
election or rejection shall be binding on all persons insured
under the policy. In those cases where the insured has elected
to purchase limits of uninsured motorist coverage which are

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less than bodily injury liability limits or to reject limits in
excess of those required by law, the insurer need not provide
in any renewal, reinstatement, reissuance, substitute,
amended, replacement or supplementary policy, coverage in
excess of that elected by the insured in connection with a
policy previously issued to such insured by the same insurer
unless the insured subsequently makes a written request for
such coverage.
(3) The original document indicating the applicant's
selection of uninsured motorist coverage limits shall
constitute sufficient evidence of the applicant's selection of
uninsured motorist coverage limits. For purposes of this
Section any reproduction of the document by means of
photograph, photostat, microfiche, computerized optical
imaging process, or other similar process or means of
reproduction shall be deemed the equivalent of the original
document.
(4) For the purpose of this Code the term "underinsured
motor vehicle" means a motor vehicle whose ownership,
maintenance or use has resulted in bodily injury or death of
the insured, as defined in the policy, and for which the sum of
the limits of liability under all bodily injury liability
insurance policies or under bonds or other security required to
be maintained under Illinois law applicable to the driver or to
the person or organization legally responsible for such vehicle
and applicable to the vehicle, is less than the limits for

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underinsured coverage provided the insured as defined in the
policy at the time of the accident. The limits of liability for
an insurer providing underinsured motorist coverage shall be
the limits of such coverage, less those amounts actually
recovered under the applicable bodily injury insurance
policies, bonds or other security maintained on the
underinsured motor vehicle.
On or after July 1, 1983, no policy insuring against loss
resulting from liability imposed by law for bodily injury or
death suffered by any person arising out of the ownership,
maintenance or use of a motor vehicle shall be renewed or
delivered or issued for delivery in this State with respect to
any motor vehicle designed for use on public highways and
required to be registered in this State unless underinsured
motorist coverage is included in such policy in an amount equal
to the total amount of uninsured motorist coverage provided in
that policy where such uninsured motorist coverage exceeds the
limits set forth in Section 7-203 of the Illinois Vehicle Code.
The changes made to this subsection (4) by this amendatory
Act of the 93rd General Assembly apply to policies issued or
renewed on or after December 1, 2004.
(5) Scope. Nothing herein shall prohibit an insurer from
setting forth policy terms and conditions which provide that if
the insured has coverage available under this Section under
more than one policy or provision of coverage, any recovery or
benefits may be equal to, but may not exceed, the higher of the

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applicable limits of the respective coverage, and the limits of
liability under this Section shall not be increased because of
multiple motor vehicles covered under the same policy of
insurance. Insurers providing liability coverage on an excess
or umbrella basis are neither required to provide, nor are they
prohibited from offering or making available, coverages
conforming to this Section on a supplemental basis.
Notwithstanding the provisions of this Section, an insurer
shall not be prohibited from solely providing a combination of
uninsured and underinsured motorist coverages where the limits
of liability under each coverage is in the same amount.
Insurers providing a commercial general liability policy that
includes hired automobile and non-owned automobile liability
are neither required to provide, nor are they prohibited from
offering or making available, coverages conforming to this
Section. Insurers providing a commercial automobile policy
shall offer and provide such coverage as required by subsection
(c) of Section 8-101 of the Illinois Vehicle Code to contract
carriers transporting employees in the course of their
employment.
(6) Subrogation against underinsured motorists. No insurer
shall exercise any right of subrogation under a policy
providing additional uninsured motorist coverage against an
underinsured motorist where the insurer has been provided with
written notice in advance of a settlement between its insured
and the underinsured motorist and the insurer fails to advance

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a payment to the insured, in an amount equal to the tentative
settlement, within 30 days following receipt of such notice.
(7) A policy which provides underinsured motor vehicle
coverage may include a clause which denies payment until the
limits of liability or portion thereof under all bodily injury
liability insurance policies applicable to the underinsured
motor vehicle and its operators have been partially or fully
exhausted by payment of judgment or settlement. A judgment or
settlement of the bodily injury claim in an amount less than
the limits of liability of the bodily injury coverages
applicable to the claim shall not preclude the claimant from
making an underinsured motorist claim against the underinsured
motorist coverage. Any such provision in a policy of insurance
shall be inapplicable if the insured, or the legal
representative of the insured, and the insurer providing
underinsured motor vehicle coverage agree that the insured has
suffered bodily injury or death as the result of the negligent
operation, maintenance, or use of an underinsured motor vehicle
and, without arbitration, agree also on the amount of damages
that the insured is legally entitled to collect. The maximum
amount payable pursuant to such an underinsured motor vehicle
insurance settlement agreement shall not exceed the amount by
which the limits of the underinsured motorist coverage exceed
the limits of the bodily injury liability insurance of the
owner or operator of the underinsured motor vehicle. Any such
agreement shall be final as to the amount due and shall be

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binding upon both the insured and the underinsured motorist
insurer regardless of the amount of any judgment, or any
settlement reached between any insured and the person or
persons responsible for the accident. No such settlement
agreement shall be concluded unless: (i) the insured has
complied with all other applicable policy terms and conditions;
and (ii) before the conclusion of the settlement agreement, the
insured has filed suit against the underinsured motor vehicle
owner or operator and has not abandoned the suit, or settled
the suit without preserving the rights of the insurer providing
underinsured motor vehicle coverage in the manner described in
subsection paragraph (6) of this Section.
(Source: P.A. 93-762, eff. 7-16-04.)
Section 99. Effective date. This Act takes effect upon
becoming law.