Bill Title: Amends the Illinois Insurance Code. Provides that it is an improper claims practice for a domestic, foreign, or alien company transacting business in this State to fail to pay the replacement vehicle use or occupation tax, title, and transfer fees on a private passenger total loss claim if that act is committed knowingly in violation of the Code, has been committed with such frequency to indicate a persistent tendency to engage in that type of conduct, and is committed without just cause. Provides that an insurer shall pay use or occupation tax, title, and transfer fees when the insurer determines that an insured's or third-party claimant's private passenger automobile is a total loss covered under the terms of a personal automobile policy issued by the insurer. Provides that if an insurer elects to replace the insured vehicle, the insurer shall pay the use or occupation tax, title, and transfer fees on the replacement vehicle. Provides that if a cash settlement is provided for the total loss private passenger vehicle, an insurer shall reimburse or directly pay the insured or third-party claimant for replacement vehicle use or occupation tax, title, and transfer fees under specified conditions. Grants the Department of Insurance rulemaking authority. Effective January 1, 2022.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Passed) 2021-07-09 - Public Act . . . . . . . . . 102-0069
[SB0061 Detail]Download: Illinois-2021-SB0061-Chaptered.html
|
| Public Act 102-0069
|
| SB0061 Enrolled | LRB102 05100 BMS 15120 b |
|
|
AN ACT concerning regulation.
|
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 Section 154.6 and by adding Section 154.9 as follows:
|
(215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
|
Sec. 154.6. Acts constituting improper claims practice. |
Any of the
following acts by a company, if committed without |
just cause and in
violation of Section 154.5, constitutes an |
improper claims practice:
|
(a) Knowingly misrepresenting to claimants and insureds |
relevant
facts or policy provisions relating to coverages at |
issue;
|
(b) Failing to acknowledge with reasonable promptness |
pertinent
communications with respect to claims arising under |
its policies;
|
(c) Failing to adopt and implement reasonable standards |
for the
prompt investigations and settlement of claims arising |
under its policies;
|
(d) Not attempting in good faith to effectuate prompt, |
fair and
equitable settlement of claims submitted in which |
liability has become
reasonably clear;
|
(e) Compelling policyholders to institute suits to recover |
|
amounts
due under its policies by offering substantially less |
than the amounts
ultimately recovered in suits brought by |
them;
|
(f) Engaging in activity which results in a |
disproportionate number
of meritorious complaints against the |
insurer received by the Insurance
Department;
|
(g) Engaging in activity which results in a |
disproportionate number
of lawsuits to be filed against the |
insurer or its insureds by
claimants;
|
(h) Refusing to pay claims without conducting a reasonable
|
investigation based on all available information;
|
(i) Failing to affirm or deny coverage of claims within a |
reasonable
time after proof of loss statements have been |
completed;
|
(j) Attempting to settle a claim for less than the amount |
to which a
reasonable person would believe the claimant was |
entitled, by reference
to written or printed advertising |
material accompanying or made part of
an application or |
establishing unreasonable caps or limits on paint
or materials
|
when estimating vehicle repairs;
|
(k) Attempting to settle claims on the basis of an |
application which
was altered without notice to, or knowledge |
or consent of, the insured;
|
(l) Making a claims payment to a policyholder or |
beneficiary
omitting the coverage under which each payment is |
being made;
|
|
(m) Delaying the investigation or payment of claims by |
requiring an
insured, a claimant, or the physicians of either |
to submit a preliminary
claim report and then requiring |
subsequent submission of formal proof of
loss forms, resulting |
in the duplication of verification;
|
(n) Failing in the case of the denial of a claim or the |
offer of a
compromise settlement to promptly provide a |
reasonable and accurate
explanation of the basis in the |
insurance policy or applicable law for
such denial or |
compromise settlement;
|
(o) Failing to provide forms necessary to present claims |
within 15
working days of a request with such explanations as |
are necessary to use
them effectively;
|
(p) Failing to adopt and implement reasonable standards to |
verify that
a repairer designated by the insurance company to |
provide an estimate,
perform repairs, or engage in any other |
service in connection with an
insured loss on a vehicle is duly |
licensed under Section 5-301 of the
Illinois Vehicle Code;
|
(q) Failing to provide as a persistent tendency a |
notification on any
written estimate prepared by an insurance |
company in connection with an
insured loss that Illinois law |
requires that vehicle repairers must be
licensed in accordance |
with Section 5-301 of the Illinois Vehicle Code;
|
(r) Failing to pay the replacement vehicle use or |
occupation tax, title, and transfer fees required by Section |
154.9 of this Code; |
|
(s) (r) Engaging in any other acts which are in substance |
equivalent to
any of the foregoing.
|
(Source: P.A. 90-340, eff. 8-8-97.)
|
(215 ILCS 5/154.9 new) |
Sec. 154.9. Payment of applicable use or occupation tax, |
title, and transfer fees on a private passenger total loss |
claim. |
(a) When an insurer determines that an insured's or |
third-party claimant's private passenger automobile is a total |
loss that is covered under the terms of a personal automobile |
policy issued or renewed on or after July 1, 2022 by the |
insurer, the insurer shall pay any use or occupation tax |
imposed by the State or a unit of local government and title |
and transfer fees as provided for in this Section. As used in |
this Section, "private passenger vehicle" means a private |
passenger motor vehicle, station wagon, or any other 4-wheeled |
motor vehicle with a load capacity of 1,500 pounds or less that |
is not used in the occupation, profession, or business of the |
insured or third-party claimant, not used as a public or |
livery conveyance for passengers, nor rented to others. |
(b) If the insurer elects to replace the insured vehicle, |
the insurer shall pay any use or occupation tax imposed by the |
State or a unit of local government tax and title and transfer |
fees on the replacement vehicle. |
(c) If a cash settlement is provided for the total loss |
|
private passenger vehicle, the insurer shall reimburse the |
insured or third-party claimant for any use or occupation tax |
imposed by the State or a unit of local government and title |
and transfer fees if the replacement vehicle is purchased or |
leased within 30 days after the receipt of the cash settlement |
by the insured or third-party claimant and the insured or |
third-party claimant substantiates such purchase and the |
payment of such taxes and fees by submission of appropriate |
documentation to the insurer within 33 days after the receipt |
of the settlement or receipt of the required reimbursement |
form from the insurer, whichever is later. |
(1) With respect to leased vehicles, use or occupation |
taxes and title and transfer fees shall be deemed to be |
incurred by the insured or the third-party claimant at the |
time the lease is entered into, but only if such use or |
occupation taxes and title and transfer fees are included |
in the cost of the lease or are paid directly by the |
insured or third-party claimant. |
(2) The insurer is not required to reimburse the |
insured or third-party claimant for any use or occupation |
taxes and title or transfer fees in excess of the amount |
payable based on the value of the total loss vehicle at the |
time of the loss or for taxes and title or transfer fees |
not actually paid by the insured or third-party claimant. |
(3) In lieu of this reimbursement procedure, the |
insurer may directly pay the required amount of any use or |
|
occupation taxes and title and transfer fees to the |
claimant at the time of settlement. |
(4) If an insurer requires a particular form be used |
to apply for reimbursement of any use or occupation taxes |
and title or transfer fees, the form must be delivered to |
the insured or third-party claimant at or before the time |
of settlement. |
(d) The Department may adopt rules establishing uniform |
standards for implementation of this Section, including, but |
not limited to, prescribing the method of determining the |
market value of the insured's or third-party claimant's |
vehicle.
|
Section 99. Effective date. This Act takes effect July 1, |
2022.
|
