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| | HB4160 Enrolled | | LRB104 15794 BAB 28989 b |
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| 1 | | AN ACT concerning regulation.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Insurance Code is amended by |
| 5 | | adding Section 398 as follows:
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| 6 | | (215 ILCS 5/398 new) |
| 7 | | Sec. 398. Right to appraisal. |
| 8 | | (a) Definitions. As used in this Section: |
| 9 | | "Actual cash value" means the market value of the subject |
| 10 | | property of the personal automobile insurance policy |
| 11 | | immediately before it was damaged. |
| 12 | | "Amount of loss" means: |
| 13 | | (1) with regard to the repair of the vehicle, the cost |
| 14 | | to repair the damage to the subject property expressed |
| 15 | | monetarily in the context of the repair of a vehicle; and |
| 16 | | (2) with regard to the value of the vehicle, the |
| 17 | | actual cash value of the vehicle. |
| 18 | | "Appraiser" means an individual selected to determine the |
| 19 | | value of the disputed loss. |
| 20 | | "Competent" means an individual with appropriate subject |
| 21 | | matter expertise, training, and experience in automobile |
| 22 | | damage valuation and claims practices. |
| 23 | | "Disinterested" means an individual having no direct or |
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| 1 | | indirect financial interest in the outcome of the appraisal. |
| 2 | | "Umpire" means a neutral, competent, and disinterested |
| 3 | | individual with relevant experience in vehicle damage |
| 4 | | assessment. |
| 5 | | (b) Right to appraisal for first-party claims. |
| 6 | | (1) Every policy of automobile insurance, as defined |
| 7 | | in subsection (a) of Section 143.13, issued, renewed, or |
| 8 | | delivered on or after July 1, 2027 in Illinois that |
| 9 | | includes first-party coverage for physical damage shall |
| 10 | | contain a provision granting the insured, in the insured's |
| 11 | | sole discretion, without the company's consent or |
| 12 | | agreement required, and the insurer the right to invoke |
| 13 | | appraisal if there is a dispute over the amount of a loss. |
| 14 | | (2) If a dispute arises regarding the amount of a |
| 15 | | loss, either party may submit a written demand for |
| 16 | | appraisal. Within 7 business days after receiving the |
| 17 | | demand, each party shall: |
| 18 | | (A) select a competent and disinterested |
| 19 | | appraiser; and |
| 20 | | (B) notify the opposing party in writing of the |
| 21 | | selection. |
| 22 | | (3) The 2 appraisers shall independently determine the |
| 23 | | amount of loss. If the appraisers fail to agree on the |
| 24 | | amount of a loss within 5 business days after the date of |
| 25 | | their appointment, they shall jointly select an umpire. If |
| 26 | | the appraisers fail to agree on an umpire within 15 |
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| 1 | | business days after they failed to agree on the amount of |
| 2 | | the loss, either party may petition a court to appoint a |
| 3 | | suitable umpire. |
| 4 | | (4) The 2 appraisers or, if there is a disagreement |
| 5 | | under paragraph (3), one appraiser and the umpire shall |
| 6 | | issue an award determining the amount of the loss. A final |
| 7 | | award shall be determined within 5 business days after the |
| 8 | | umpire was selected. |
| 9 | | (5) An agreement by any 2 of the 3, either both |
| 10 | | appraisers or one appraiser and the umpire, shall be |
| 11 | | binding upon all parties. |
| 12 | | (c) Cost allocation. |
| 13 | | (1) Each party shall bear the cost of its own |
| 14 | | appraiser. |
| 15 | | (2) The cost of the umpire shall be shared equally |
| 16 | | between the parties.
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| 17 | | Section 99. Effective date. This Act takes effect July 1, |
| 18 | | 2027. |
