94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB1722

 

Introduced 2/25/2005, by Sen. James F. Clayborne, Jr.

 

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

    Amends the Illinois Insurance Code. Deletes language requiring insurance policies containing uninsured and hit and run motor vehicle coverage to require disputes as to coverage and amount of damages to be submitted to arbitration. Requires certain disputes to be submitted to mandatory binding arbitration. Requires disputes to be determined by a 3-person arbitration panel or, in lieu of this requirement, by any alternative dispute resolution forum agreed to by the parties. Sets forth rules for determining damages and coverage, including admissibility of certain documents, use of written opinions of expert or opinion witnesses, and subpoenas of authors of documents. Requires that all disputes determined by an alternative dispute resolution forum agreed to by the parties must be determined by the current published rules of the forum and that, if the amount being sought exceeds a certain amount as provided in the Illinois Vehicle Code, the rules of evidence that apply in the circuit court for placing medical opinions into evidence shall govern.


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A BILL FOR

 

SB1722 LRB094 08659 LJB 38869 b

1     AN ACT concerning insurance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Insurance Code is amended by
5 changing Section 143a and by adding Section 143e as follows:
 
6     (215 ILCS 5/143a)  (from Ch. 73, par. 755a)
7     Sec. 143a. Uninsured and hit and run motor vehicle
8 coverage.
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
23 coverage does not apply to bodily injury, sickness, disease, or
24 death resulting therefrom, of an insured while occupying a
25 motor vehicle owned by, or furnished or available for the
26 regular use of the insured, a resident spouse or resident
27 relative, if that motor vehicle is not described in the policy
28 under which a claim is made or is not a newly acquired or
29 replacement motor vehicle covered under the terms of the
30 policy. The limits for any coverage for any vehicle under the
31 policy may not be aggregated with the limits for any similar
32 coverage, whether provided by the same insurer or another

 

 

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1 insurer, applying to other motor vehicles, for purposes of
2 determining the total limit of insurance coverage available for
3 bodily injury or death suffered by a person in any one
4 accident. No policy shall be renewed, delivered, or issued for
5 delivery in this State unless it is provided therein that any
6 dispute with respect to the coverage and the amount of damages
7 shall be submitted for arbitration to the American Arbitration
8 Association and be subject to its rules for the conduct of
9 arbitration hearings as to all matters except medical opinions.
10 As to medical opinions, if the amount of damages being sought
11 is equal to or less than the amount provided for in Section
12 7-203 of the Illinois Vehicle Code, then the current American
13 Arbitration Association Rules shall apply. If the amount being
14 sought in an American Arbitration Association case exceeds that
15 amount as set forth in Section 7-203 of the Illinois Vehicle
16 Code, then the Rules of Evidence that apply in the circuit
17 court for placing medical opinions into evidence shall govern.
18 Alternatively, disputes with respect to damages and the
19 coverage shall be determined in the following manner: Upon the
20 insured requesting arbitration, each party to the dispute shall
21 select an arbitrator and the 2 arbitrators so named shall
22 select a third arbitrator. If such arbitrators are not selected
23 within 45 days from such request, either party may request that
24 the arbitration be submitted to the American Arbitration
25 Association. Any decision made by the arbitrators shall be
26 binding for the amount of damages not exceeding $50,000 for
27 bodily injury to or death of any one person, $100,000 for
28 bodily injury to or death of 2 or more persons in any one motor
29 vehicle accident, or the corresponding policy limits for bodily
30 injury or death, whichever is less. All 3-person arbitration
31 cases proceeding in accordance with any uninsured motorist
32 coverage conducted in this State in which the claimant is only
33 seeking monetary damages up to the limits set forth in Section
34 7-203 of the Illinois Vehicle Code shall be subject to the
35 following rules:
36         (A) If at least 60 days' written notice of the

 

 

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1     intention to offer the following documents in evidence is
2     given to every other party, accompanied by a copy of the
3     document, a party may offer in evidence, without foundation
4     or other proof:
5             (1) bills, records, and reports of hospitals,
6         doctors, dentists, registered nurses, licensed
7         practical nurses, physical therapists, and other
8         healthcare providers;
9             (2) bills for drugs, medical appliances, and
10         prostheses;
11             (3) property repair bills or estimates, when
12         identified and itemized setting forth the charges for
13         labor and material used or proposed for use in the
14         repair of the property;
15             (4) a report of the rate of earnings and time lost
16         from work or lost compensation prepared by an employer;
17             (5) the written opinion of an opinion witness, the
18         deposition of a witness, and the statement of a witness
19         that the witness would be allowed to express if
20         testifying in person, if the opinion or statement is
21         made by affidavit or by certification as provided in
22         Section 1-109 of the Code of Civil Procedure;
23             (6) any other document not specifically covered by
24         any of the foregoing provisions that is otherwise
25         admissible under the rules of evidence.
26         Any party receiving a notice under this paragraph (A)
27     may apply to the arbitrator or panel of arbitrators, as the
28     case may be, for the issuance of a subpoena directed to the
29     author or maker or custodian of the document that is the
30     subject of the notice, requiring the person subpoenaed to
31     produce copies of any additional documents as may be
32     related to the subject matter of the document that is the
33     subject of the notice. Any such subpoena shall be issued in
34     substantially similar form and served by notice as provided
35     by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
36     shall be returnable not less than 5 days before the

 

 

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1     arbitration hearing.
2         (B) Notwithstanding the provisions of Supreme Court
3     Rule 213(g), a party who proposes to use a written opinion
4     of an expert or opinion witness or the testimony of an
5     expert or opinion witness at the hearing may do so provided
6     a written notice of that intention is given to every other
7     party not less than 60 days prior to the date of hearing,
8     accompanied by a statement containing the identity of the
9     witness, his or her qualifications, the subject matter, the
10     basis of the witness's conclusions, and his or her opinion.
11         (C) Any other party may subpoena the author or maker of
12     a document admissible under this subsection, at that
13     party's expense, and examine the author or maker as if
14     under cross-examination. The provisions of Section 2-1101
15     of the Code of Civil Procedure shall be applicable to
16     arbitration hearings, and it shall be the duty of a party
17     requesting the subpoena to modify the form to show that the
18     appearance is set before an arbitration panel and to give
19     the time and place set for the hearing.
20         (D) The provisions of Section 2-1102 of the Code of
21     Civil Procedure shall be applicable to arbitration
22     hearings under this subsection.
23     (2) No policy insuring against loss resulting from
24 liability imposed by law for property damage arising out of the
25 ownership, maintenance, or use of a motor vehicle shall be
26 renewed, delivered, or issued for delivery in this State with
27 respect to any private passenger or recreational motor vehicle
28 that is designed for use on public highways and that is either
29 required to be registered in this State or is principally
30 garaged in this State and is not covered by collision insurance
31 under the provisions of such policy, unless coverage is made
32 available in the amount of the actual cash value of the motor
33 vehicle described in the policy or $15,000 whichever is less,
34 subject to a $250 deductible, for the protection of persons
35 insured thereunder who are legally entitled to recover damages
36 from owners or operators of uninsured motor vehicles and

 

 

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1 hit-and-run motor vehicles because of property damage to the
2 motor vehicle described in the policy.
3     There shall be no liability imposed under the uninsured
4 motorist property damage coverage required by this subsection
5 if the owner or operator of the at-fault uninsured motor
6 vehicle or hit-and-run motor vehicle cannot be identified. This
7 subsection shall not apply to any policy which does not provide
8 primary motor vehicle liability insurance for liabilities
9 arising from the maintenance, operation, or use of a
10 specifically insured motor vehicle.
11     Each insurance company providing motor vehicle property
12 damage liability insurance shall advise applicants of the
13 availability of uninsured motor vehicle property damage
14 coverage, the premium therefor, and provide a brief description
15 of the coverage. Each insurer, with respect to the initial
16 renewal, reinstatement, or reissuance of a policy of motor
17 vehicle property damage liability insurance shall provide
18 present policyholders with the same information in writing.
19 That information need be given only once and shall not be
20 required in any subsequent renewal, reinstatement or
21 reissuance, substitute, amended, replacement or supplementary
22 policy. No written rejection shall be required, and the absence
23 of a premium payment for uninsured motor vehicle property
24 damage shall constitute conclusive proof that the applicant or
25 policyholder has elected not to accept uninsured motorist
26 property damage coverage.
27     An insurance company issuing uninsured motor vehicle
28 property damage coverage may provide that:
29         (i) Property damage losses recoverable thereunder
30     shall be limited to damages caused by the actual physical
31     contact of an uninsured motor vehicle with the insured
32     motor vehicle.
33         (ii) There shall be no coverage for loss of use of the
34     insured motor vehicle and no coverage for loss or damage to
35     personal property located in the insured motor vehicle.
36         (iii) Any claim submitted shall include the name and

 

 

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1     address of the owner of the at-fault uninsured motor
2     vehicle, or a registration number and description of the
3     vehicle, or any other available information to establish
4     that there is no applicable motor vehicle property damage
5     liability insurance.
6      Any dispute with respect to the coverage and the amount of
7 damages shall be submitted for arbitration to the American
8 Arbitration Association and be subject to its rules for the
9 conduct of arbitration hearings or for determination in the
10 following manner: Upon the insured requesting arbitration,
11 each party to the dispute shall select an arbitrator and the 2
12 arbitrators so named shall select a third arbitrator. If such
13 arbitrators are not selected within 45 days from such request,
14 either party may request that the arbitration be submitted to
15 the American Arbitration Association. Any arbitration
16 proceeding under this subsection seeking recovery for property
17 damages shall be subject to the following rules:
18         (A) If at least 60 days' written notice of the
19     intention to offer the following documents in evidence is
20     given to every other party, accompanied by a copy of the
21     document, a party may offer in evidence, without foundation
22     or other proof:
23             (1) property repair bills or estimates, when
24         identified and itemized setting forth the charges for
25         labor and material used or proposed for use in the
26         repair of the property;
27             (2) the written opinion of an opinion witness, the
28         deposition of a witness, and the statement of a witness
29         that the witness would be allowed to express if
30         testifying in person, if the opinion or statement is
31         made by affidavit or by certification as provided in
32         Section 1-109 of the Code of Civil Procedure;
33             (3) any other document not specifically covered by
34         any of the foregoing provisions that is otherwise
35         admissible under the rules of evidence.
36         Any party receiving a notice under this paragraph (A)

 

 

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1     may apply to the arbitrator or panel of arbitrators, as the
2     case may be, for the issuance of a subpoena directed to the
3     author or maker or custodian of the document that is the
4     subject of the notice, requiring the person subpoenaed to
5     produce copies of any additional documents as may be
6     related to the subject matter of the document that is the
7     subject of the notice. Any such subpoena shall be issued in
8     substantially similar form and served by notice as provided
9     by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
10     shall be returnable not less than 5 days before the
11     arbitration hearing.
12         (B) Notwithstanding the provisions of Supreme Court
13     Rule 213(g), a party who proposes to use a written opinion
14     of an expert or opinion witness or the testimony of an
15     expert or opinion witness at the hearing may do so provided
16     a written notice of that intention is given to every other
17     party not less than 60 days prior to the date of hearing,
18     accompanied by a statement containing the identity of the
19     witness, his or her qualifications, the subject matter, the
20     basis of the witness's conclusions, and his or her opinion.
21         (C) Any other party may subpoena the author or maker of
22     a document admissible under this subsection, at that
23     party's expense, and examine the author or maker as if
24     under cross-examination. The provisions of Section 2-1101
25     of the Code of Civil Procedure shall be applicable to
26     arbitration hearings, and it shall be the duty of a party
27     requesting the subpoena to modify the form to show that the
28     appearance is set before an arbitration panel and to give
29     the time and place set for the hearing.
30         (D) The provisions of Section 2-1102 of the Code of
31     Civil Procedure shall be applicable to arbitration
32     hearings under this subsection.
33     (3) For the purpose of the coverage the term "uninsured
34 motor vehicle" includes, subject to the terms and conditions of
35 the coverage, a motor vehicle where on, before or after the
36 accident date the liability insurer thereof is unable to make

 

 

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1 payment with respect to the legal liability of its insured
2 within the limits specified in the policy because of the entry
3 by a court of competent jurisdiction of an order of
4 rehabilitation or liquidation by reason of insolvency on or
5 after the accident date. An insurer's extension of coverage, as
6 provided in this subsection, shall be applicable to all
7 accidents occurring after July 1, 1967 during a policy period
8 in which its insured's uninsured motor vehicle coverage is in
9 effect. Nothing in this Section may be construed to prevent any
10 insurer from extending coverage under terms and conditions more
11 favorable to its insureds than is required by this Section.
12     (4) In the event of payment to any person under the
13 coverage required by this Section and subject to the terms and
14 conditions of the coverage, the insurer making the payment
15 shall, to the extent thereof, be entitled to the proceeds of
16 any settlement or judgment resulting from the exercise of any
17 rights of recovery of the person against any person or
18 organization legally responsible for the property damage,
19 bodily injury or death for which the payment is made, including
20 the proceeds recoverable from the assets of the insolvent
21 insurer. With respect to payments made by reason of the
22 coverage described in subsection (3), the insurer making such
23 payment shall not be entitled to any right of recovery against
24 the tort-feasor in excess of the proceeds recovered from the
25 assets of the insolvent insurer of the tort-feasor.
26     (5) This amendatory Act of 1967 shall not be construed to
27 terminate or reduce any insurance coverage or any right of any
28 party under this Code in effect before July 1, 1967. This
29 amendatory Act of 1990 shall not be construed to terminate or
30 reduce any insurance coverage or any right of any party under
31 this Code in effect before its effective date.
32     (6) Failure of the motorist from whom the claimant is
33 legally entitled to recover damages to file the appropriate
34 forms with the Safety Responsibility Section of the Department
35 of Transportation within 120 days of the accident date shall
36 create a rebuttable presumption that the motorist was uninsured

 

 

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1 at the time of the injurious occurrence.
2     (7) An insurance carrier may upon good cause require the
3 insured to commence a legal action against the owner or
4 operator of an uninsured motor vehicle before good faith
5 negotiation with the carrier. If the action is commenced at the
6 request of the insurance carrier, the carrier shall pay to the
7 insured, before the action is commenced, all court costs, jury
8 fees and sheriff's fees arising from the action.
9     The changes made by this amendatory Act of 1997 apply to
10 all policies of insurance amended, delivered, issued, or
11 renewed on and after the effective date of this amendatory Act
12 of 1997.
13 (Source: P.A. 93-485, eff. 1-1-04.)
 
14     (215 ILCS 5/143e new)
15     Sec. 143e. Mandatory binding arbitration of certain claims
16 made against a policy of automobile insurance.
17     (a) No policy of automobile insurance as defined in
18 subsection (a) of Section 143.13 of this Code shall be renewed,
19 delivered, or issued for delivery in this State unless it is
20 provided therein that disputes with respect to the following
21 coverages and damage amounts shall be submitted for mandatory
22 binding arbitration:
23         (1) physical damage claims between the insurer and
24     another insurer for the amount of damages not exceeding
25     $10,000; or
26         (2) uninsured, underinsured, and hit and run motor
27     vehicle coverage for the amount of damages not exceeding
28     $50,000 for bodily injury to or death of any one person,
29     $100,000 for bodily injury to or death of 2 or more persons
30     in any one motor vehicle accident, or the corresponding
31     policy limits for bodily injury or death if less than the
32     amounts provided in this paragraph (2).
33     (b) All disputes with respect to damages and coverage
34 referenced in subsection (a) shall be determined by a 3-person
35 arbitration panel impaneled in the following manner: Each party

 

 

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1 to the dispute shall select an arbitrator and the 2 arbitrators
2 so named shall select a third arbitrator. In lieu of having the
3 dispute determined by a 3-person arbitration panel as set forth
4 in this Section, the parties may have disputes with respect to
5 the damages and the coverage referenced in subsection (a) be
6 determined by an alternative dispute resolution forum agreed to
7 by the parties.
8     (c) All disputes with respect to damages and coverage
9 determined by the 3-person arbitration panel as set forth in
10 this Section shall be determined in accordance with the
11 following rules:
12         (1) If at least 60 days' written notice of the
13     intention to offer the following documents in evidence is
14     given to every other party, accompanied by a copy of the
15     document, a party may offer in evidence, without foundation
16     or other proof:
17             (A) bills, records, and reports of hospitals,
18         doctors, dentists, registered nurses, licensed
19         practical nurses, physical therapists, and other
20         healthcare providers;
21             (B) bills for drugs, medical appliances, and
22         prostheses;
23             (C) property repair bills or estimates, when
24         identified and itemized setting forth the charges for
25         labor and material used or proposed for use in the
26         repair of the property;
27             (D) a report of the rate of earnings and time lost
28         from work or lost compensation prepared by an employer;
29             (E) the written opinion of an opinion witness, the
30         deposition of a witness, and the statement of a witness
31         that the witness would be allowed to express if
32         testifying in person, if the opinion or statement is
33         made by affidavit or by certification as provided in
34         Section 1-109 of the Code of Civil Procedure;
35             (F) any other document not specifically covered by
36         any of the foregoing provisions that is otherwise

 

 

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1         admissible under the rules of evidence.
2         Any party receiving a notice under this paragraph (1)
3     may apply to the arbitrator or panel of arbitrators, as the
4     case may be, for the issuance of a subpoena directed to the
5     author or maker or custodian of the document that is the
6     subject of the notice, requiring the person subpoenaed to
7     produce copies of any additional documents as may be
8     related to the subject matter of the document that is the
9     subject of the notice. A subpoena shall be issued in
10     substantially similar form and served by notice as provided
11     by Illinois Supreme Court Rule 204(a)(4). A subpoena shall
12     be returnable not less than 5 days before the arbitration
13     hearing.
14         (2) Notwithstanding the provisions of Supreme Court
15     Rule 213(g), a party who proposes to use a written opinion
16     of an expert or opinion witness or the testimony of an
17     expert or opinion witness at the hearing may do so provided
18     a written notice of that intention is given to every other
19     party not less than 60 days prior to the date of hearing,
20     accompanied by a statement containing the identity of the
21     witness, his or her qualifications, the subject matter, the
22     basis of the witness's conclusions, and his or her opinion.
23         (3) Any other party may subpoena the author or maker of
24     a document admissible under this subsection (c) at that
25     party's expense and examine the author or maker as if under
26     cross-examination. The provisions of Section 2-1101 of the
27     Code of Civil Procedure shall be applicable to arbitration
28     hearings, and it shall be the duty of a party requesting
29     the subpoena to modify the form to show that the appearance
30     is set before an arbitration panel and to give the time and
31     place set for the hearing.
32         (4) The provisions of Section 2-1102 of the Code of
33     Civil Procedure shall be applicable to arbitration
34     hearings under this subsection.
35     (d) All disputes with respect to damages and coverages
36 determined by an alternative dispute resolution forum agreed to

 

 

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1 by the parties shall be determined pursuant to the current
2 published rules of the agreed to alternative dispute resolution
3 forum. If the amount being sought exceeds that amount as set
4 forth in Section 7-203 of the Illinois Vehicle Code, then the
5 Rules of Evidence that apply in the circuit court for placing
6 medical opinions into evidence shall govern.