093_SB0112sam001

 










                                     LRB093 07379 JLS 12841 a

 1                    AMENDMENT TO SENATE BILL 112

 2        AMENDMENT NO.     .  Amend Senate Bill 112  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Illinois Insurance Code is amended by
 5    changing Sections 143a and 143a-2 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
11    by any person arising out of the  ownership,  maintenance  or
12    use  of  a  motor  vehicle that is designed for use on public
13    highways and that is either required to be registered in this
14    State or is  principally  garaged  in  this  State  shall  be
15    renewed,  delivered,  or  issued  for  delivery in this State
16    unless coverage is offered provided therein  or  supplemental
17    thereto,  in  limits  for bodily injury or death set forth in
18    Section 7-203 of the Illinois Vehicle Code for the protection
19    of persons insured thereunder who  are  legally  entitled  to
20    recover  damages  from owners or operators of uninsured motor
21    vehicles and hit-and-run motor  vehicles  because  of  bodily
22    injury,  sickness  or  disease,  including  death,  resulting
 
                            -2-      LRB093 07379 JLS 12841 a
 1    therefrom. Uninsured motor vehicle coverage does not apply to
 2    bodily   injury,   sickness,   disease,  or  death  resulting
 3    therefrom, of an insured  while  occupying  a  motor  vehicle
 4    owned  by,  or  furnished or available for the regular use of
 5    the insured, a resident spouse or resident relative, if  that
 6    motor  vehicle  is  not described in the policy under which a
 7    claim is made or is not a newly acquired or replacement motor
 8    vehicle covered under the terms of the  policy.   The  limits
 9    for  any coverage for any vehicle under the policy may not be
10    aggregated with the limits for any similar coverage,  whether
11    provided  by the same insurer or another insurer, applying to
12    other motor vehicles, for purposes of determining  the  total
13    limit  of  insurance  coverage available for bodily injury or
14    death suffered by a person in any one  accident.   No  policy
15    shall  be  renewed, delivered, or issued for delivery in this
16    State unless it is provided therein  that  any  dispute  with
17    respect  to  the  coverage and the amount of damages shall be
18    submitted  for  arbitration  to  the   American   Arbitration
19    Association  and  be  subject to its rules for the conduct of
20    arbitration  hearings  as  to  all  matters  except   medical
21    opinions.   As  to medical opinions, if the amount of damages
22    being sought is equal to or less than the amount provided for
23    in Section 7-203 of  the  Illinois  Vehicle  Code,  then  the
24    current  American  Arbitration Association Rules shall apply.
25    If  the  amount  being  sought  in  an  American  Arbitration
26    Association case exceeds that amount as set forth in  Section
27    7-203  of  the  Illinois  Vehicle  Code,  then  the  Rules of
28    Evidence that apply in the circuit court for placing  medical
29    opinions into evidence shall govern.  Alternatively, disputes
30    with  respect to damages and the coverage shall be determined
31    in  the  following  manner:   Upon  the  insured   requesting
32    arbitration,  each  party  to  the  dispute  shall  select an
33    arbitrator and the 2 arbitrators  so  named  shall  select  a
34    third  arbitrator.   If  such  arbitrators  are  not selected
 
                            -3-      LRB093 07379 JLS 12841 a
 1    within 45 days from such request, either  party  may  request
 2    that the arbitration be submitted to the American Arbitration
 3    Association.  Any  decision  made by the arbitrators shall be
 4    binding for the amount of damages not  exceeding  the  limits
 5    for  bodily injury or death set forth in Section 7-203 of the
 6    Illinois  Vehicle  Code.  All  3-person   arbitration   cases
 7    proceeding in accordance with any uninsured motorist coverage
 8    conducted in this State in which the claimant is only seeking
 9    monetary  damages up to the limits set forth in Section 7-203
10    of  the  Illinois  Vehicle  Code  shall  be  subject  to  the
11    following rules:
12             (A)  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
16        foundation or other proof:
17                  (1)  bills,  records, and reports of hospitals,
18             doctors,  dentists,  registered   nurses,   licensed
19             practical  nurses,  physical  therapists,  and other
20             healthcare providers;
21                  (2)  bills for drugs, medical  appliances,  and
22             prostheses;
23                  (3)  property  repair  bills or estimates, when
24             identified and itemized setting  forth  the  charges
25             for  labor  and material used or proposed for use in
26             the repair of the property;
27                  (4)  a report of the rate of earnings and  time
28             lost  from  work or lost compensation prepared by an
29             employer;
30                  (5)  the written opinion of an opinion witness,
31             the deposition of a witness, and the statement of  a
32             witness that the witness would be allowed to express
33             if testifying in person, if the opinion or statement
34             is made by affidavit or by certification as provided
 
                            -4-      LRB093 07379 JLS 12841 a
 1             in Section 1-109 of the Code of Civil Procedure;
 2                  (6)  any   other   document   not  specifically
 3             covered by any of the foregoing provisions  that  is
 4             otherwise admissible under the rules of evidence.
 5             Any  party  receiving  a notice under this paragraph
 6        (A) may apply to the arbitrator or panel of  arbitrators,
 7        as  the  case  may  be,  for  the  issuance of a subpoena
 8        directed to the author  or  maker  or  custodian  of  the
 9        document that is the subject of the notice, requiring the
10        person  subpoenaed  to  produce  copies of any additional
11        documents as may be related to the subject matter of  the
12        document  that  is  the  subject of the notice.  Any such
13        subpoena shall be issued in  substantially  similar  form
14        and  served  by  notice  as  provided by Illinois Supreme
15        Court  Rule  204(a)(4).   Any  such  subpoena  shall   be
16        returnable  not  less  than 5 days before the arbitration
17        hearing.
18             (B)  Notwithstanding the provisions of Supreme Court
19        Rule 213(g), a  party  who  proposes  to  use  a  written
20        opinion  of an expert or opinion witness or the testimony
21        of an expert or opinion witness at the hearing may do  so
22        provided  a  written notice of that intention is given to
23        every other party not less than 60 days prior to the date
24        of hearing, accompanied by  a  statement  containing  the
25        identity  of  the witness, his or her qualifications, the
26        subject matter, the basis of the  witness's  conclusions,
27        and his or her opinion.
28             (C)  Any  other  party  may  subpoena  the author or
29        maker of a document admissible under this subsection,  at
30        that  party's expense, and examine the author or maker as
31        if under cross-examination.  The  provisions  of  Section
32        2-1101 of the Code of Civil Procedure shall be applicable
33        to  arbitration  hearings,  and it shall be the duty of a
34        party requesting the subpoena to modify the form to  show
 
                            -5-      LRB093 07379 JLS 12841 a
 1        that  the  appearance  is set before an arbitration panel
 2        and to give the time and place set for the hearing.
 3             (D)  The provisions of Section 2-1102 of the Code of
 4        Civil  Procedure  shall  be  applicable  to   arbitration
 5        hearings under this subsection.
 6        (2)  No  policy  insuring  against  loss  resulting  from
 7    liability  imposed  by law for property damage arising out of
 8    the ownership, maintenance, or use of a motor  vehicle  shall
 9    be  renewed,  delivered, or issued for delivery in this State
10    with respect to any private passenger or  recreational  motor
11    vehicle  that is designed for use on public highways and that
12    is either required to be  registered  in  this  State  or  is
13    principally  garaged  in  this  State  and  is not covered by
14    collision insurance under  the  provisions  of  such  policy,
15    unless coverage is made available in the amount of the actual
16    cash  value  of  the motor vehicle described in the policy or
17    $15,000 whichever is less, subject to a $250 deductible,  for
18    the  protection of persons insured thereunder who are legally
19    entitled to recover  damages  from  owners  or  operators  of
20    uninsured  motor  vehicles  and  hit-and-run  motor  vehicles
21    because  of property damage to the motor vehicle described in
22    the policy.
23        There shall be no liability imposed under  the  uninsured
24    motorist property damage coverage required by this subsection
25    if  the  owner  or  operator  of the at-fault uninsured motor
26    vehicle or hit-and-run motor vehicle  cannot  be  identified.
27    This  subsection shall not apply to any policy which does not
28    provide  primary  motor  vehicle  liability   insurance   for
29    liabilities  arising  from the maintenance, operation, or use
30    of a specifically insured motor vehicle.
31        Each insurance company providing motor  vehicle  property
32    damage  liability  insurance  shall  advise applicants of the
33    availability  of  uninsured  motor  vehicle  property  damage
34    coverage,  the  premium  therefor,  and   provide   a   brief
 
                            -6-      LRB093 07379 JLS 12841 a
 1    description  of  the coverage.  Each insurer, with respect to
 2    the initial renewal, reinstatement, or reissuance of a policy
 3    of motor vehicle property damage  liability  insurance  shall
 4    provide  present  policyholders  with the same information in
 5    writing.  That information need be given only once and  shall
 6    not  be  required in any subsequent renewal, reinstatement or
 7    reissuance, substitute, amended, replacement or supplementary
 8    policy.  No written rejection  shall  be  required,  and  the
 9    absence  of  a  premium  payment  for uninsured motor vehicle
10    property damage shall constitute conclusive  proof  that  the
11    applicant or policyholder has elected not to accept uninsured
12    motorist property damage coverage.
13        An  insurance  company  issuing  uninsured  motor vehicle
14    property damage coverage may provide that:
15             (i)  Property damage losses  recoverable  thereunder
16        shall be limited to damages caused by the actual physical
17        contact  of  an  uninsured motor vehicle with the insured
18        motor vehicle.
19             (ii)  There shall be no coverage for loss of use  of
20        the  insured  motor  vehicle  and no coverage for loss or
21        damage to personal property located in the insured  motor
22        vehicle.
23             (iii)  Any  claim  submitted  shall include the name
24        and 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
27        that there is no applicable motor vehicle property damage
28        liability insurance.
29          Any dispute with respect to the coverage and the amount
30    of damages shall be submitted for arbitration to the American
31    Arbitration  Association  and be subject to its rules for the
32    conduct of arbitration hearings or for determination  in  the
33    following  manner:   Upon the insured requesting arbitration,
34    each party to the dispute shall select an arbitrator and  the
 
                            -7-      LRB093 07379 JLS 12841 a
 1    2  arbitrators  so named shall select a third arbitrator.  If
 2    such arbitrators are not selected within 45  days  from  such
 3    request,  either  party  may  request that the arbitration be
 4    submitted  to  the  American  Arbitration  Association.   Any
 5    arbitration proceeding under this subsection seeking recovery
 6    for property damages shall be subject to the following rules:
 7             (A)  If  at  least  60  days'  written notice of the
 8        intention to offer the following documents in evidence is
 9        given to every other party, accompanied by a copy of  the
10        document,   a   party  may  offer  in  evidence,  without
11        foundation or other proof:
12                  (1)  property repair bills or  estimates,  when
13             identified  and  itemized  setting forth the charges
14             for labor and material used or proposed for  use  in
15             the repair of the property;
16                  (2)  the written opinion of an opinion witness,
17             the  deposition of a witness, and the statement of a
18             witness that the witness would be allowed to express
19             if testifying in person, if the opinion or statement
20             is made by affidavit or by certification as provided
21             in Section 1-109 of the Code of Civil Procedure;
22                  (3)  any  other   document   not   specifically
23             covered  by  any of the foregoing provisions that is
24             otherwise admissible under the rules of evidence.
25             Any party receiving a notice  under  this  paragraph
26        (A)  may apply to the arbitrator or panel of arbitrators,
27        as the case may  be,  for  the  issuance  of  a  subpoena
28        directed  to  the  author  or  maker  or custodian of the
29        document that is the subject of the notice, requiring the
30        person subpoenaed to produce  copies  of  any  additional
31        documents  as may be related to the subject matter of the
32        document that is the subject of  the  notice.   Any  such
33        subpoena  shall  be  issued in substantially similar form
34        and served by notice  as  provided  by  Illinois  Supreme
 
                            -8-      LRB093 07379 JLS 12841 a
 1        Court   Rule  204(a)(4).   Any  such  subpoena  shall  be
 2        returnable not less than 5 days  before  the  arbitration
 3        hearing.
 4             (B)  Notwithstanding the provisions of Supreme Court
 5        Rule  213(g),  a  party  who  proposes  to  use a written
 6        opinion of an expert or opinion witness or the  testimony
 7        of  an expert or opinion witness at the hearing may do so
 8        provided a written notice of that intention is  given  to
 9        every other party not less than 60 days prior to the date
10        of  hearing,  accompanied  by  a statement containing the
11        identity of the witness, his or her  qualifications,  the
12        subject  matter,  the basis of the witness's conclusions,
13        and his or her opinion.
14             (C)  Any other party  may  subpoena  the  author  or
15        maker  of a document admissible under this subsection, at
16        that party's expense, and examine the author or maker  as
17        if  under  cross-examination.   The provisions of Section
18        2-1101 of the Code of Civil Procedure shall be applicable
19        to arbitration hearings, and it shall be the  duty  of  a
20        party  requesting the subpoena to modify the form to show
21        that the appearance is set before  an  arbitration  panel
22        and to give 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        (3)  For the purpose of the coverage the term  "uninsured
27    motor  vehicle" includes, subject to the terms and conditions
28    of the coverage, a motor vehicle where on,  before  or  after
29    the  accident date the liability insurer thereof is unable to
30    make payment with respect  to  the  legal  liability  of  its
31    insured  within the limits specified in the policy because of
32    the entry by a court of competent jurisdiction of an order of
33    rehabilitation or liquidation by reason of insolvency  on  or
34    after  the accident date. An insurer's extension of coverage,
 
                            -9-      LRB093 07379 JLS 12841 a
 1    as provided in this subsection, shall be  applicable  to  all
 2    accidents occurring after July 1, 1967 during a policy period
 3    in which its insured's uninsured motor vehicle coverage is in
 4    effect.  Nothing  in this Section may be construed to prevent
 5    any  insurer  from  extending  coverage   under   terms   and
 6    conditions more favorable to its insureds than is required by
 7    this Section.
 8        (4)  In  the  event  of  payment  to any person under the
 9    coverage required by this Section and subject  to  the  terms
10    and  conditions  of  the  coverage,  the  insurer  making the
11    payment shall, to the extent  thereof,  be  entitled  to  the
12    proceeds  of  any  settlement  or judgment resulting from the
13    exercise of any rights of recovery of the person against  any
14    person  or  organization legally responsible for the property
15    damage, bodily injury or death for which the payment is made,
16    including the proceeds recoverable from  the  assets  of  the
17    insolvent insurer. With respect to payments made by reason of
18    the  coverage described in subsection (3), the insurer making
19    such payment shall not be entitled to any right  of  recovery
20    against  the  tort-feasor in excess of the proceeds recovered
21    from the assets of the insolvent insurer of the tort-feasor.
22        (5)  This amendatory Act of 1967 shall not  be  construed
23    to terminate or reduce any insurance coverage or any right of
24    any party under this Code in effect before July 1, 1967. This
25    amendatory Act of 1990 shall not be construed to terminate or
26    reduce any insurance coverage or any right of any party under
27    this Code in effect before its effective date.
28        (6)  Failure  of  the  motorist from whom the claimant is
29    legally entitled to recover damages to file  the  appropriate
30    forms   with   the   Safety  Responsibility  Section  of  the
31    Department of Transportation within 120 days of the  accident
32    date  shall create a rebuttable presumption that the motorist
33    was uninsured at the time of the injurious occurrence.
34        (7)  An insurance carrier may upon good cause require the
 
                            -10-     LRB093 07379 JLS 12841 a
 1    insured to commence a  legal  action  against  the  owner  or
 2    operator  of  an  uninsured  motor  vehicle before good faith
 3    negotiation with the carrier.  If the action is commenced  at
 4    the  request  of the insurance carrier, the carrier shall pay
 5    to the insured, before the action  is  commenced,  all  court
 6    costs, jury fees and sheriff's fees arising from the action.
 7        The  changes made by this amendatory Act of 1997 apply to
 8    all policies of  insurance  amended,  delivered,  issued,  or
 9    renewed  on  and  after the effective date of this amendatory
10    Act of 1997.
11    (Source: P.A. 89-206, eff. 7-21-95; 90-451, eff. 1-1-98.)

12        (215 ILCS 5/143a-2) (from Ch. 73, par. 755a-2)
13        Sec.  143a-2.  (1)  Additional  uninsured  motor  vehicle
14    coverage. No policy  insuring  against  loss  resulting  from
15    liability  imposed by law for bodily injury or death suffered
16    by any person arising out of the  ownership,  maintenance  or
17    use  of  a  motor  vehicle  shall  be renewed or delivered or
18    issued for delivery in this State with respect to  any  motor
19    vehicle  designed  for use on public highways and required to
20    be  registered  in  this  State  unless  uninsured   motorist
21    coverage  as  offered pursuant to required in Section 143a of
22    this Code is included in an amount  equal  to  the  insured's
23    bodily  injury  liability limits unless specifically rejected
24    by  the  insured.   Each  insurance  company  providing   the
25    coverage  must provide applicants with a brief description of
26    the coverage and advise them of their  right  to  reject  the
27    coverage  in  excess of the limits set forth in Section 7-203
28    of  The  Illinois  Vehicle  Code.   The  provisions  of  this
29    amendatory Act of 1990 apply to policies of insurance applied
30    for after June 30, 1991.
31        (2)  Right of rejection of additional uninsured  motorist
32    coverage.  After  June  30, 1991, every application for motor
33    vehicle coverage must contain  a  space  for  indicating  the
 
                            -11-     LRB093 07379 JLS 12841 a
 1    rejection  of  additional  uninsured  motorist  coverage.  No
 2    rejection of  that  coverage  may  be  effective  unless  the
 3    applicant signs or initials the indication of rejection.  The
 4    applicant  may  reject additional uninsured motorist coverage
 5    in excess of the limits set forth in  Section  7-203  of  the
 6    Illinois  Vehicle  Code.  In  those cases, including policies
 7    first issued before July  1,  1991,  where  the  insured  has
 8    elected  to  purchase  limits  of uninsured motorist coverage
 9    which are less than bodily  injury  liability  limits  or  to
10    reject limits in excess of those required by law, the insurer
11    need  not  provide in any renewal, reinstatement, reissuance,
12    substitute, amended,  replacement  or  supplementary  policy,
13    coverage  in  excess  of  that  elected  by  the  insured  in
14    connection with a policy previously issued to such insured by
15    the  same  insurer  unless  the  insured subsequently makes a
16    written request for such coverage.
17        (3)  The original application indicating the  applicant's
18    selection   of   uninsured  motorist  coverage  limits  shall
19    constitute sufficient evidence of the  applicant's  selection
20    of uninsured motorist coverage limits and shall be binding on
21    all  persons  insured under the policy.  For purposes of this
22    Section any reproduction  of  the  application  by  means  of
23    photograph,   photostat,   microfiche,  computerized  optical
24    imaging  process,  or  other  similar  process  or  means  of
25    reproduction shall be deemed the equivalent of  the  original
26    application.
27        (4)  For  the purpose of this Code the term "underinsured
28    motor  vehicle"  means  a  motor  vehicle  whose   ownership,
29    maintenance  or use has resulted in bodily injury or death of
30    the insured, as defined in the policy, and for which the  sum
31    of  the limits of liability under all bodily injury liability
32    insurance policies or under bonds or other security  required
33    to  be maintained under Illinois law applicable to the driver
34    or to the person or organization legally responsible for such
 
                            -12-     LRB093 07379 JLS 12841 a
 1    vehicle and applicable to  the  vehicle,  is  less  than  the
 2    limits  for  underinsured  coverage  provided  the insured as
 3    defined in the policy at  the  time  of  the  accident.   The
 4    limits  of  liability  for  an insurer providing underinsured
 5    motorist coverage shall be the limits of such coverage,  less
 6    those  amounts actually recovered under the applicable bodily
 7    injury insurance policies, bonds or other security maintained
 8    on the  underinsured  motor  vehicle.  However,  the  maximum
 9    amount  payable by the underinsured motorist coverage carrier
10    shall not exceed the  amount  by  which  the  limits  of  the
11    underinsured  motorist  coverage  exceeds  the  limits of the
12    bodily injury liability insurance of the owner or operator of
13    the underinsured motor vehicle.
14          On or after July 1, 1983, no  policy  insuring  against
15    loss  resulting  from  liability  imposed  by  law for bodily
16    injury or death suffered by any person  arising  out  of  the
17    ownership,  maintenance  or  use  of a motor vehicle shall be
18    renewed or delivered or issued for  delivery  in  this  State
19    with  respect to any motor vehicle designed for use on public
20    highways and required to be registered in this  State  unless
21    underinsured  motorist  coverage  is offered included in such
22    policy, or supplemental thereto, in an amount  equal  to  the
23    total  amount of uninsured motorist coverage provided in that
24    policy where such uninsured  motorist  coverage  exceeds  the
25    limits  set  forth  in  Section 7-203 of the Illinois Vehicle
26    Code.
27        (5)  Scope.  Nothing herein  shall  prohibit  an  insurer
28    from  setting forth policy terms and conditions which provide
29    that if the insured has coverage available under this Section
30    under more than one policy  or  provision  of  coverage,  any
31    recovery or benefits may be equal to, but may not exceed, the
32    higher  of  the applicable limits of the respective coverage,
33    and the limits of liability under this Section shall  not  be
34    increased  because  of  multiple motor vehicles covered under
 
                            -13-     LRB093 07379 JLS 12841 a
 1    the same policy of insurance.  Insurers  providing  liability
 2    coverage  on an excess or umbrella basis are neither required
 3    to provide, nor are they prohibited from offering  or  making
 4    available   coverages   conforming   to  this  Section  on  a
 5    supplemental basis.  Notwithstanding the provisions  of  this
 6    Section,  an  insurer  shall  not  be  prohibited from solely
 7    providing  a  combination  of  uninsured   and   underinsured
 8    motorist  coverages  where the limits of liability under each
 9    coverage is in the same amount.
10        (6)  Subrogation  against  underinsured  motorists.    No
11    insurer  shall  exercise  any  right  of  subrogation under a
12    policy  providing  additional  uninsured  motorist   coverage
13    against  an  underinsured motorist where the insurer has been
14    provided with written  notice  in  advance  of  a  settlement
15    between  its  insured  and  the underinsured motorist and the
16    insurer fails to advance a payment  to  the  insured,  in  an
17    amount  equal  to  the  tentative  settlement, within 30 days
18    following receipt of such notice.
19        (7)  A policy which provides underinsured  motor  vehicle
20    coverage  may include a clause which denies payment until the
21    limits of liability  or  portion  thereof  under  all  bodily
22    injury   liability   insurance  policies  applicable  to  the
23    underinsured  motor  vehicle  and  its  operators  have  been
24    partially or  fully  exhausted  by  payment  of  judgment  or
25    settlement.   A  judgment  or settlement of the bodily injury
26    claim in an amount less than the limits of liability  of  the
27    bodily  injury  coverages  applicable  to the claim shall not
28    preclude the claimant from making  an  underinsured  motorist
29    claim  against  the underinsured motorist coverage.  Any such
30    provision in a policy of insurance shall be  inapplicable  if
31    the  insured, or the legal representative of the insured, and
32    the insurer providing  underinsured  motor  vehicle  coverage
33    agree that the insured has suffered bodily injury or death as
34    the result of the negligent operation, maintenance, or use of
 
                            -14-     LRB093 07379 JLS 12841 a
 1    an underinsured motor vehicle and, without arbitration, agree
 2    also  on  the  amount  of damages that the insured is legally
 3    entitled to collect.  The maximum amount payable pursuant  to
 4    such  an  underinsured  motor  vehicle  insurance  settlement
 5    agreement  shall not exceed the amount by which the limits of
 6    the underinsured motorist coverage exceed the limits  of  the
 7    bodily injury liability insurance of the owner or operator of
 8    the  underinsured motor vehicle.  Any such agreement shall be
 9    final as to the amount due and shall be binding upon both the
10    insured and the underinsured motorist insurer  regardless  of
11    the amount of any judgment, or any settlement reached between
12    any  insured  and  the  person or persons responsible for the
13    accident.  No such settlement agreement  shall  be  concluded
14    unless:    (i)  the  insured  has  complied  with  all  other
15    applicable policy terms and conditions; and (ii)  before  the
16    conclusion of the settlement agreement, the insured has filed
17    suit against the underinsured motor vehicle owner or operator
18    and  has  not abandoned the suit, or settled the suit without
19    preserving the rights of the insurer  providing  underinsured
20    motor  vehicle  coverage in the manner described in paragraph
21    (6) of this Section.
22    (Source: P.A. 89-658, eff. 1-1-97.)".