093_SB1207

 
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 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 Sections 143a, 143d, 154.5, and 155 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 provided therein or supplemental  thereto,
17    in  limits  for  bodily  injury or death set forth in Section
18    7-203 of the Illinois Vehicle  Code  for  the  protection  of
19    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
23    therefrom. Uninsured motor vehicle coverage does not apply to
24    bodily   injury,   sickness,   disease,  or  death  resulting
25    therefrom, of an insured  while  occupying  a  motor  vehicle
26    owned  by,  or  furnished or available for the regular use of
27    the insured, a resident spouse or resident relative, if  that
28    motor  vehicle  is  not described in the policy under which a
29    claim is made or is not a newly acquired or replacement motor
30    vehicle covered under the terms of the  policy.   The  limits
31    for  any coverage for any vehicle under the policy may not be
 
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 1    aggregated with the limits for any similar coverage,  whether
 2    provided  by the same insurer or another insurer, applying to
 3    other motor vehicles, for purposes of determining  the  total
 4    limit  of  insurance  coverage available for bodily injury or
 5    death suffered by a person in any one  accident.   No  policy
 6    shall  be  renewed, delivered, or issued for delivery in this
 7    State unless it is provided therein  that  any  dispute  with
 8    respect  to  the  coverage and the amount of damages shall be
 9    submitted  for  arbitration  to  the   American   Arbitration
10    Association  and  be  subject to its rules for the conduct of
11    arbitration  hearings  as  to  all  matters  except   medical
12    opinions.   As  to medical opinions, if the amount of damages
13    being sought is equal to or less than the amount provided for
14    in Section 7-203 of  the  Illinois  Vehicle  Code,  then  the
15    current  American  Arbitration Association Rules shall apply.
16    If  the  amount  being  sought  in  an  American  Arbitration
17    Association case exceeds that amount as set forth in  Section
18    7-203  of  the  Illinois  Vehicle  Code,  then  the  Rules of
19    Evidence that apply in the circuit court for placing  medical
20    opinions into evidence shall govern.  Alternatively, disputes
21    with  respect to damages and the coverage shall be determined
22    in  the  following  manner:   Upon  the  insured   requesting
23    arbitration,  each  party  to  the  dispute  shall  select an
24    arbitrator and the 2 arbitrators  so  named  shall  select  a
25    third  arbitrator.   If  such  arbitrators  are  not selected
26    within 45 days from such request, either  party  may  request
27    that the arbitration be submitted to the American Arbitration
28    Association.  Any  decision  made by the arbitrators shall be
29    binding for the amount of damages not  exceeding  the  limits
30    for  bodily injury or death set forth in Section 7-203 of the
31    Illinois  Vehicle  Code.  All  3-person   arbitration   cases
32    proceeding in accordance with any uninsured motorist coverage
33    conducted in this State in which the claimant is only seeking
34    monetary  damages up to the limits set forth in Section 7-203
 
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 1    of  the  Illinois  Vehicle  Code  shall  be  subject  to  the
 2    following rules:
 3             (A)  If at least 60  days'  written  notice  of  the
 4        intention to offer the following documents in evidence is
 5        given  to every other party, accompanied by a copy of the
 6        document,  a  party  may  offer  in   evidence,   without
 7        foundation or other proof:
 8                  (1)  bills,  records, and reports of hospitals,
 9             doctors,  dentists,  registered   nurses,   licensed
10             practical  nurses,  physical  therapists,  and other
11             healthcare providers;
12                  (2)  bills for drugs, medical  appliances,  and
13             prostheses;
14                  (3)  property  repair  bills or estimates, when
15             identified and itemized setting  forth  the  charges
16             for  labor  and material used or proposed for use in
17             the repair of the property;
18                  (4)  a report of the rate of earnings and  time
19             lost  from  work or lost compensation prepared by an
20             employer;
21                  (5)  the written opinion of an opinion witness,
22             the deposition of a witness, and the statement of  a
23             witness that the witness would be allowed to express
24             if testifying in person, if the opinion or statement
25             is made by affidavit or by certification as provided
26             in Section 1-109 of the Code of Civil Procedure;
27                  (6)  any   other   document   not  specifically
28             covered by any of the foregoing provisions  that  is
29             otherwise admissible under the rules of evidence.
30             Any  party  receiving  a notice under this paragraph
31        (A) may apply to the arbitrator or panel of  arbitrators,
32        as  the  case  may  be,  for  the  issuance of a subpoena
33        directed to the author  or  maker  or  custodian  of  the
34        document that is the subject of the notice, requiring the
 
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 1        person  subpoenaed  to  produce  copies of any additional
 2        documents as may be related to the subject matter of  the
 3        document  that  is  the  subject of the notice.  Any such
 4        subpoena shall be issued in  substantially  similar  form
 5        and  served  by  notice  as  provided by Illinois Supreme
 6        Court  Rule  204(a)(4).   Any  such  subpoena  shall   be
 7        returnable  not  less  than 5 days before the arbitration
 8        hearing.
 9             (B)  Notwithstanding the provisions of Supreme Court
10        Rule 213(g), a  party  who  proposes  to  use  a  written
11        opinion  of an expert or opinion witness or the testimony
12        of an expert or opinion witness at the hearing may do  so
13        provided  a  written notice of that intention is given to
14        every other party not less than 60 days prior to the date
15        of hearing, accompanied by  a  statement  containing  the
16        identity  of  the witness, his or her qualifications, the
17        subject matter, the basis of the  witness's  conclusions,
18        and his or her opinion.
19             (C)  Any  other  party  may  subpoena  the author or
20        maker of a document admissible under this subsection,  at
21        that  party's expense, and examine the author or maker as
22        if under cross-examination.  The  provisions  of  Section
23        2-1101 of the Code of Civil Procedure shall be applicable
24        to  arbitration  hearings,  and it shall be the duty of a
25        party requesting the subpoena to modify the form to  show
26        that  the  appearance  is set before an arbitration panel
27        and to give the time and place set for the hearing.
28             (D)  The provisions of Section 2-1102 of the Code of
29        Civil  Procedure  shall  be  applicable  to   arbitration
30        hearings under this subsection.
31        (2)  No  policy  insuring  against  loss  resulting  from
32    liability  imposed  by law for property damage arising out of
33    the ownership, maintenance, or use of a motor  vehicle  shall
34    be  renewed,  delivered, or issued for delivery in this State
 
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 1    with respect to any private passenger or  recreational  motor
 2    vehicle  that is designed for use on public highways and that
 3    is either required to be  registered  in  this  State  or  is
 4    principally  garaged  in  this  State  and  is not covered by
 5    collision insurance under  the  provisions  of  such  policy,
 6    unless coverage is made available in the amount of the actual
 7    cash  value  of  the motor vehicle described in the policy or
 8    $15,000 whichever is less, subject to a $250 deductible,  for
 9    the  protection of persons insured thereunder who are legally
10    entitled to recover  damages  from  owners  or  operators  of
11    uninsured  motor  vehicles  and  hit-and-run  motor  vehicles
12    because  of property damage to the motor vehicle described in
13    the policy.
14        There shall be no liability imposed under  the  uninsured
15    motorist property damage coverage required by this subsection
16    if  the  owner  or  operator  of the at-fault uninsured motor
17    vehicle or hit-and-run motor vehicle  cannot  be  identified.
18    This  subsection shall not apply to any policy which does not
19    provide  primary  motor  vehicle  liability   insurance   for
20    liabilities  arising  from the maintenance, operation, or use
21    of a specifically insured motor vehicle.
22        Each insurance company providing motor  vehicle  property
23    damage  liability  insurance  shall  advise applicants of the
24    availability  of  uninsured  motor  vehicle  property  damage
25    coverage,  the  premium  therefor,  and   provide   a   brief
26    description  of  the coverage.  Each insurer, with respect to
27    the initial renewal, reinstatement, or reissuance of a policy
28    of motor vehicle property damage  liability  insurance  shall
29    provide  present  policyholders  with the same information in
30    writing.  That information need be given only once and  shall
31    not  be  required in any subsequent renewal, reinstatement or
32    reissuance, substitute, amended, replacement or supplementary
33    policy.  No written rejection  shall  be  required,  and  the
34    absence  of  a  premium  payment  for uninsured motor vehicle
 
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 1    property damage shall constitute conclusive  proof  that  the
 2    applicant or policyholder has elected not to accept uninsured
 3    motorist property damage coverage.
 4        An  insurance  company  issuing  uninsured  motor vehicle
 5    property damage coverage may provide that:
 6             (i)  Property damage losses  recoverable  thereunder
 7        shall be limited to damages caused by the actual physical
 8        contact  of  an  uninsured motor vehicle with the insured
 9        motor vehicle.
10             (ii)  There shall be no coverage for loss of use  of
11        the  insured  motor  vehicle  and no coverage for loss or
12        damage to personal property located in the insured  motor
13        vehicle.
14             (iii)  Any  claim  submitted  shall include the name
15        and address of the owner of the at-fault uninsured  motor
16        vehicle,  or a registration number and description of the
17        vehicle, or any other available information to  establish
18        that there is no applicable motor vehicle property damage
19        liability insurance.
20          Any dispute with respect to the coverage and the amount
21    of damages shall be submitted for arbitration to the American
22    Arbitration  Association  and be subject to its rules for the
23    conduct of arbitration hearings or for determination  in  the
24    following  manner:   Upon the insured requesting arbitration,
25    each party to the dispute shall select an arbitrator and  the
26    2  arbitrators  so named shall select a third arbitrator.  If
27    such arbitrators are not selected within 45  days  from  such
28    request,  either  party  may  request that the arbitration be
29    submitted  to  the  American  Arbitration  Association.   Any
30    arbitration proceeding under this subsection seeking recovery
31    for property damages shall be subject to the following rules:
32             (A)  If  at  least  60  days'  written notice of the
33        intention to offer the following documents in evidence is
34        given to every other party, accompanied by a copy of  the
 
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 1        document,   a   party  may  offer  in  evidence,  without
 2        foundation or other proof:
 3                  (1)  property repair bills or  estimates,  when
 4             identified  and  itemized  setting forth the charges
 5             for labor and material used or proposed for  use  in
 6             the repair of the property;
 7                  (2)  the written opinion of an opinion witness,
 8             the  deposition of a witness, and the statement of a
 9             witness that the witness would be allowed to express
10             if testifying in person, if the opinion or statement
11             is made by affidavit or by certification as provided
12             in Section 1-109 of the Code of Civil Procedure;
13                  (3)  any  other   document   not   specifically
14             covered  by  any of the foregoing provisions that is
15             otherwise admissible under the rules of evidence.
16             Any party receiving a notice  under  this  paragraph
17        (A)  may apply to the arbitrator or panel of arbitrators,
18        as the case may  be,  for  the  issuance  of  a  subpoena
19        directed  to  the  author  or  maker  or custodian of the
20        document that is the subject of the notice, requiring the
21        person subpoenaed to produce  copies  of  any  additional
22        documents  as may be related to the subject matter of the
23        document that is the subject of  the  notice.   Any  such
24        subpoena  shall  be  issued in substantially similar form
25        and served by notice  as  provided  by  Illinois  Supreme
26        Court   Rule  204(a)(4).   Any  such  subpoena  shall  be
27        returnable not less than 5 days  before  the  arbitration
28        hearing.
29             (B)  Notwithstanding the provisions of Supreme Court
30        Rule  213(g),  a  party  who  proposes  to  use a written
31        opinion of an expert or opinion witness or the  testimony
32        of  an expert or opinion witness at the hearing may do so
33        provided a written notice of that intention is  given  to
34        every other party not less than 60 days prior to the date
 
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 1        of  hearing,  accompanied  by  a statement containing the
 2        identity of the witness, his or her  qualifications,  the
 3        subject  matter,  the basis of the witness's conclusions,
 4        and his or her opinion.
 5             (C)  Any other party  may  subpoena  the  author  or
 6        maker  of a document admissible under this subsection, at
 7        that party's expense, and examine the author or maker  as
 8        if  under  cross-examination.   The provisions of Section
 9        2-1101 of the Code of Civil Procedure shall be applicable
10        to arbitration hearings, and it shall be the  duty  of  a
11        party  requesting the subpoena to modify the form to show
12        that the appearance is set before  an  arbitration  panel
13        and to give the time and place set for the hearing.
14             (D)  The provisions of Section 2-1102 of the Code of
15        Civil   Procedure  shall  be  applicable  to  arbitration
16        hearings under this subsection.
17        (3)  For the purpose of the coverage the term  "uninsured
18    motor  vehicle" includes, subject to the terms and conditions
19    of the coverage, a motor vehicle where on,  before  or  after
20    the  accident date the liability insurer thereof is unable to
21    make payment with respect  to  the  legal  liability  of  its
22    insured  within the limits specified in the policy because of
23    the entry by a court of competent jurisdiction of an order of
24    rehabilitation or liquidation by reason of insolvency  on  or
25    after  the accident date. An insurer's extension of coverage,
26    as provided in this subsection, shall be  applicable  to  all
27    accidents occurring after July 1, 1967 during a policy period
28    in which its insured's uninsured motor vehicle coverage is in
29    effect.  Nothing  in this Section may be construed to prevent
30    any  insurer  from  extending  coverage   under   terms   and
31    conditions more favorable to its insureds than is required by
32    this Section.
33        (4)  In  the  event  of  payment  to any person under the
34    coverage required by this Section and subject  to  the  terms
 
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 1    and  conditions  of  the  coverage,  the  insurer  making the
 2    payment shall, to the extent  thereof,  be  entitled  to  the
 3    proceeds  of  any  settlement  or judgment resulting from the
 4    exercise of any rights of recovery of the person against  any
 5    person  or  organization legally responsible for the property
 6    damage, bodily injury or death for which the payment is made,
 7    including the proceeds recoverable from  the  assets  of  the
 8    insolvent insurer. With respect to payments made by reason of
 9    the  coverage described in subsection (3), the insurer making
10    such payment shall not be entitled to any right  of  recovery
11    against  the  tort-feasor in excess of the proceeds recovered
12    from the assets of the insolvent insurer of the tort-feasor.
13        (5)  This amendatory Act of 1967 shall not  be  construed
14    to terminate or reduce any insurance coverage or any right of
15    any party under this Code in effect before July 1, 1967. This
16    amendatory Act of 1990 shall not be construed to terminate or
17    reduce any insurance coverage or any right of any party under
18    this Code in effect before its effective date.
19        (6)  Failure  of  the  motorist from whom the claimant is
20    legally entitled to recover damages to file  the  appropriate
21    forms   with   the   Safety  Responsibility  Section  of  the
22    Department of Transportation within 120 days of the  accident
23    date  shall create a rebuttable presumption that the motorist
24    was uninsured at the time of the injurious occurrence.
25        (7)  An insurance carrier may upon good cause require the
26    insured to commence a  legal  action  against  the  owner  or
27    operator  of  an  uninsured  motor  vehicle before good faith
28    negotiation with the carrier.  If the action is commenced  at
29    the  request  of the insurance carrier, the carrier shall pay
30    to the insured, before the action  is  commenced,  all  court
31    costs, jury fees and sheriff's fees arising from the action.
32        The  changes made by this amendatory Act of 1997 apply to
33    all policies of  insurance  amended,  delivered,  issued,  or
34    renewed  on  and  after the effective date of this amendatory
 
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 1    Act of 1997.
 2    (Source: P.A. 89-206, eff. 7-21-95; 90-451, eff. 1-1-98.)

 3        (215 ILCS 5/143d) (from Ch. 73, par. 755d)
 4        Sec. 143d.  Customer affairs and information department.
 5        (a)  Every  company  licensed  to   issue   policies   of
 6    insurance  as  defined  in subsections (a) and (b) of Section
 7    143.13 shall establish a  customer  affairs  and  information
 8    department   to   respond   to   policyholder  inquiries  and
 9    complaints.  The department shall be staffed by  an  employee
10    or  employees  generally  knowledgeable  in  the  affairs and
11    operations of the company.  The department shall  be  located
12    in either the home, regional, or branch office of the company
13    and  must,  during  regular business hours, either maintain a
14    toll free telephone number or permit policyholders to call  a
15    designated  telephone  number  at the company's expense.  The
16    telephone numbers shall be made available to policyholders in
17    accordance with Section 143(c).
18        (b)  The  customer  affairs  and  information  department
19    shall provide information and services that may reasonably be
20    requested by policyholders who are residents  of  this  State
21    and must respond promptly to complaints made by policyholder.
22    Companies   must   provide  a  written  response  to  written
23    inquiries and complaints within 21 days of receipt.
24        (c)  Records of  the  customer  affairs  and  information
25    department  shall be maintained in compliance with Department
26    of Insurance regulations.
27        (d)  The Department of Insurance shall publish in general
28    circulation  newspapers,  on  an  annual  basis,   and   make
29    available   to  the  general  public,  all  records  obtained
30    pursuant to this Section.
31    (Source: P.A. 86-1407.)

32        (215 ILCS 5/154.5) (from Ch. 73, par. 766.5)
 
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 1        Sec. 154.5.  Improper claims practices.)
 2        (a)  It is an improper claims practice for any  domestic,
 3    foreign  or  alien company transacting business in this State
 4    to commit any of the acts contained in Section 154.6 if:
 5        (1) (a)  it is committed knowingly in violation  of  this
 6    Act or any rules promulgated hereunder; or
 7        (2) (b)  it  has  been  committed  with such frequency to
 8    indicate a persistent tendency to  engage  in  that  type  of
 9    conduct.
10        (b)  Any person who suffers actual damages as a result of
11    improper claims practices may bring a civil action for actual
12    damages sustained and, if appropriate, punitive damages.
13    (Source: P.A. 80-926.)

14        (215 ILCS 5/155) (from Ch. 73, par. 767)
15        Sec. 155.  Attorney fees.)
16        (1)  In  any action by or against a company wherein there
17    is in issue the  liability  of  a  company  on  a  policy  or
18    policies  of  insurance  or  the  amount  of the loss payable
19    thereunder, or for an unreasonable delay in settling a claim,
20    and it appears to the court that  such  action  or  delay  is
21    vexatious  and  unreasonable,  the court may allow as part of
22    the taxable costs in the  action  reasonable  attorney  fees,
23    other  costs,  plus  an  amount  not to exceed any one of the
24    following amounts:
25        (a)  100% 25% of the amount which the court or jury finds
26    such party  is  entitled  to  recover  against  the  company,
27    exclusive of all costs;
28        (b)  $100,000 $25,000;
29        (c)  the  excess  of  the  amount which the court or jury
30    finds such party is entitled to recover, exclusive of  costs,
31    over  the amount, if any, which the company offered to pay in
32    settlement of the claim prior to the action.
33        (2)  Where there are several policies insuring  the  same
 
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 1    insured  against  the same loss whether issued by the same or
 2    by different companies, the court may fix the amount  of  the
 3    allowance  so  that the total attorney fees on account of one
 4    loss  shall  not  be increased by reason of the fact that the
 5    insured brings separate suits on such policies.
 6    (Source: P.A. 84-678.)