093_SB1207sam002

 










                                     LRB093 03430 JLS 14043 a

 1                    AMENDMENT TO SENATE BILL 1207

 2        AMENDMENT NO.     .  Amend Senate Bill 1207, AS  AMENDED,
 3    by  replacing  everything  after the enacting clause with the
 4    following:

 5        "Section 5.  The Illinois Insurance Code  is  amended  by
 6    changing Sections 143a and 155 as follows:

 7        (215 ILCS 5/143a) (from Ch. 73, par. 755a)
 8        Sec.  143a.  Uninsured  and  hit  and  run  motor vehicle
 9    coverage.
10        (1)  No  policy  insuring  against  loss  resulting  from
11    liability imposed by law for bodily injury or death  suffered
12    by  any  person  arising out of the ownership, maintenance or
13    use of a motor vehicle that is designed  for  use  on  public
14    highways and that is either required to be registered in this
15    State  or  is  principally  garaged  in  this  State shall be
16    renewed, delivered, or issued  for  delivery  in  this  State
17    unless  coverage is provided therein or supplemental thereto,
18    in limits for bodily injury or death  set  forth  in  Section
19    7-203  of  the  Illinois  Vehicle  Code for the protection of
20    persons  insured  thereunder  who  are  legally  entitled  to
21    recover damages from owners or operators of  uninsured  motor
22    vehicles  and  hit-and-run  motor  vehicles because of bodily
 
                            -2-      LRB093 03430 JLS 14043 a
 1    injury,  sickness  or  disease,  including  death,  resulting
 2    therefrom. Uninsured motor vehicle coverage does not apply to
 3    bodily  injury,  sickness,  disease,   or   death   resulting
 4    therefrom,  of  an  insured  while  occupying a motor vehicle
 5    owned by, or furnished or available for the  regular  use  of
 6    the  insured, a resident spouse or resident relative, if that
 7    motor vehicle is not described in the policy  under  which  a
 8    claim is made or is not a newly acquired or replacement motor
 9    vehicle  covered  under  the terms of the policy.  The limits
10    for any coverage for any vehicle under the policy may not  be
11    aggregated  with the limits for any similar coverage, whether
12    provided by the same insurer or another insurer, applying  to
13    other  motor  vehicles, for purposes of determining the total
14    limit of insurance coverage available for  bodily  injury  or
15    death  suffered  by  a person in any one accident.  No policy
16    shall be renewed, delivered, or issued for delivery  in  this
17    State  unless  it  is  provided therein that any dispute with
18    respect to the coverage and the amount of  damages  shall  be
19    submitted   for   arbitration  to  the  American  Arbitration
20    Association and be subject to its rules for  the  conduct  of
21    arbitration   hearings  as  to  all  matters  except  medical
22    opinions.  As to medical opinions, if the amount  of  damages
23    being sought is equal to or less than the amount provided for
24    in  Section  7-203  of  the  Illinois  Vehicle Code, then the
25    current American Arbitration Association Rules  shall  apply.
26    If  the  amount  being  sought  in  an  American  Arbitration
27    Association  case exceeds that amount as set forth in Section
28    7-203 of  the  Illinois  Vehicle  Code,  then  the  Rules  of
29    Evidence  that apply in the circuit court for placing medical
30    opinions into evidence shall govern.  Alternatively, disputes
31    with respect to damages and the coverage shall be  determined
32    in   the  following  manner:   Upon  the  insured  requesting
33    arbitration, each  party  to  the  dispute  shall  select  an
34    arbitrator  and  the  2  arbitrators  so named shall select a
 
                            -3-      LRB093 03430 JLS 14043 a
 1    third arbitrator.   If  such  arbitrators  are  not  selected
 2    within  45  days  from such request, either party may request
 3    that the arbitration be submitted to the American Arbitration
 4    Association. Any decision made by the  arbitrators  shall  be
 5    binding  for  the amount of damages not exceeding $50,000 the
 6    limits for bodily injury to  or  death  of  any  one  person,
 7    $100,000  for  bodily injury to or death of 2 or more persons
 8    in any one motor vehicle accident,  and  $45,000  because  of
 9    injury  to  or  destruction  of property of others in any one
10    motor vehicle accident set forth  in  Section  7-203  of  the
11    Illinois   Vehicle   Code.  All  3-person  arbitration  cases
12    proceeding in accordance with any uninsured motorist coverage
13    conducted in this State in which the claimant is only seeking
14    monetary damages up to the limits set forth in Section  7-203
15    of  the  Illinois  Vehicle  Code  shall  be  subject  to  the
16    following rules:
17             (A)  If  at  least  60  days'  written notice of the
18        intention to offer the following documents in evidence is
19        given to every other party, accompanied by a copy of  the
20        document,   a   party  may  offer  in  evidence,  without
21        foundation or other proof:
22                  (1)  bills, records, and reports of  hospitals,
23             doctors,   dentists,   registered  nurses,  licensed
24             practical nurses,  physical  therapists,  and  other
25             healthcare providers;
26                  (2)  bills  for  drugs, medical appliances, and
27             prostheses;
28                  (3)  property repair bills or  estimates,  when
29             identified  and  itemized  setting forth the charges
30             for labor and material used or proposed for  use  in
31             the repair of the property;
32                  (4)  a  report of the rate of earnings and time
33             lost from work or lost compensation prepared  by  an
34             employer;
 
                            -4-      LRB093 03430 JLS 14043 a
 1                  (5)  the written opinion of an opinion witness,
 2             the  deposition of a witness, and the statement of a
 3             witness that the witness would be allowed to express
 4             if testifying in person, if the opinion or statement
 5             is made by affidavit or by certification as provided
 6             in Section 1-109 of the Code of Civil Procedure;
 7                  (6)  any  other   document   not   specifically
 8             covered  by  any of the foregoing provisions that is
 9             otherwise admissible under the rules of evidence.
10             Any party receiving a notice  under  this  paragraph
11        (A)  may apply to the arbitrator or panel of arbitrators,
12        as the case may  be,  for  the  issuance  of  a  subpoena
13        directed  to  the  author  or  maker  or custodian of the
14        document that is the subject of the notice, requiring the
15        person subpoenaed to produce  copies  of  any  additional
16        documents  as may be related to the subject matter of the
17        document that is the subject of  the  notice.   Any  such
18        subpoena  shall  be  issued in substantially similar form
19        and served by notice  as  provided  by  Illinois  Supreme
20        Court   Rule  204(a)(4).   Any  such  subpoena  shall  be
21        returnable not less than 5 days  before  the  arbitration
22        hearing.
23             (B)  Notwithstanding the provisions of Supreme Court
24        Rule  213(g),  a  party  who  proposes  to  use a written
25        opinion of an expert or opinion witness or the  testimony
26        of  an expert or opinion witness at the hearing may do so
27        provided a written notice of that intention is  given  to
28        every other party not less than 60 days prior to the date
29        of  hearing,  accompanied  by  a statement containing the
30        identity of the witness, his or her  qualifications,  the
31        subject  matter,  the basis of the witness's conclusions,
32        and his or her opinion.
33             (C)  Any other party  may  subpoena  the  author  or
34        maker  of a document admissible under this subsection, at
 
                            -5-      LRB093 03430 JLS 14043 a
 1        that party's expense, and examine the author or maker  as
 2        if  under  cross-examination.   The provisions of Section
 3        2-1101 of the Code of Civil Procedure shall be applicable
 4        to arbitration hearings, and it shall be the  duty  of  a
 5        party  requesting the subpoena to modify the form to show
 6        that the appearance is set before  an  arbitration  panel
 7        and to give the time and place set for the hearing.
 8             (D)  The provisions of Section 2-1102 of the Code of
 9        Civil   Procedure  shall  be  applicable  to  arbitration
10        hearings under this subsection.
11        (2)  No  policy  insuring  against  loss  resulting  from
12    liability imposed by law for property damage arising  out  of
13    the  ownership,  maintenance, or use of a motor vehicle shall
14    be renewed, delivered, or issued for delivery in  this  State
15    with  respect  to any private passenger or recreational motor
16    vehicle that is designed for use on public highways and  that
17    is  either  required  to  be  registered  in this State or is
18    principally garaged in this  State  and  is  not  covered  by
19    collision  insurance  under  the  provisions  of such policy,
20    unless coverage is made available in the amount of the actual
21    cash value of the motor vehicle described in  the  policy  or
22    $15,000  whichever is less, subject to a $250 deductible, for
23    the protection of persons insured thereunder who are  legally
24    entitled  to  recover  damages  from  owners  or operators of
25    uninsured  motor  vehicles  and  hit-and-run  motor  vehicles
26    because of property damage to the motor vehicle described  in
27    the policy.
28        There  shall  be no liability imposed under the uninsured
29    motorist property damage coverage required by this subsection
30    if the owner or operator  of  the  at-fault  uninsured  motor
31    vehicle  or  hit-and-run  motor vehicle cannot be identified.
32    This subsection shall not apply to any policy which does  not
33    provide   primary   motor  vehicle  liability  insurance  for
34    liabilities arising from the maintenance, operation,  or  use
 
                            -6-      LRB093 03430 JLS 14043 a
 1    of a specifically insured motor vehicle.
 2        Each  insurance  company providing motor vehicle property
 3    damage liability insurance shall  advise  applicants  of  the
 4    availability  of  uninsured  motor  vehicle  property  damage
 5    coverage,   the   premium   therefor,  and  provide  a  brief
 6    description of the coverage.  Each insurer, with  respect  to
 7    the initial renewal, reinstatement, or reissuance of a policy
 8    of  motor  vehicle  property damage liability insurance shall
 9    provide present policyholders with the  same  information  in
10    writing.   That information need be given only once and shall
11    not be required in any subsequent renewal,  reinstatement  or
12    reissuance, substitute, amended, replacement or supplementary
13    policy.   No  written  rejection  shall  be required, and the
14    absence of a premium  payment  for  uninsured  motor  vehicle
15    property  damage  shall  constitute conclusive proof that the
16    applicant or policyholder has elected not to accept uninsured
17    motorist property damage coverage.
18        An insurance  company  issuing  uninsured  motor  vehicle
19    property damage coverage may provide that:
20             (i)  Property  damage  losses recoverable thereunder
21        shall be limited to damages caused by the actual physical
22        contact of an uninsured motor vehicle  with  the  insured
23        motor vehicle.
24             (ii)  There  shall be no coverage for loss of use of
25        the insured motor vehicle and no  coverage  for  loss  or
26        damage  to personal property located in the insured motor
27        vehicle.
28             (iii)  Any claim submitted shall  include  the  name
29        and  address of the owner of the at-fault uninsured motor
30        vehicle, or a registration number and description of  the
31        vehicle,  or any other available information to establish
32        that there is no applicable motor vehicle property damage
33        liability insurance.
34          Any dispute with respect to the coverage and the amount
 
                            -7-      LRB093 03430 JLS 14043 a
 1    of damages shall be submitted for arbitration to the American
 2    Arbitration Association and be subject to its rules  for  the
 3    conduct  of  arbitration hearings or for determination in the
 4    following manner:  Upon the insured  requesting  arbitration,
 5    each  party to the dispute shall select an arbitrator and the
 6    2 arbitrators so named shall select a third  arbitrator.   If
 7    such  arbitrators  are  not selected within 45 days from such
 8    request, either party may request  that  the  arbitration  be
 9    submitted   to  the  American  Arbitration  Association.  Any
10    arbitration proceeding under this subsection seeking recovery
11    for property damages shall be subject to the 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)  property  repair  bills or estimates, when
18             identified and itemized setting  forth  the  charges
19             for  labor  and material used or proposed for use in
20             the repair of the property;
21                  (2)  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                  (3)  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
 
                            -8-      LRB093 03430 JLS 14043 a
 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        (3)  For  the purpose of the coverage the term "uninsured
32    motor vehicle" includes, subject to the terms and  conditions
33    of  the  coverage,  a motor vehicle where on, before or after
34    the accident date the liability insurer thereof is unable  to
 
                            -9-      LRB093 03430 JLS 14043 a
 1    make  payment  with  respect  to  the  legal liability of its
 2    insured within the limits specified in the policy because  of
 3    the entry 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,
 6    as  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
10    any   insurer   from   extending  coverage  under  terms  and
11    conditions more favorable to its insureds than is required by
12    this Section.
13        (4)  In the event of payment  to  any  person  under  the
14    coverage  required  by  this Section and subject to the terms
15    and conditions  of  the  coverage,  the  insurer  making  the
16    payment  shall,  to  the  extent  thereof, be entitled to the
17    proceeds of any settlement or  judgment  resulting  from  the
18    exercise  of any rights of recovery of the person against any
19    person or organization legally responsible for  the  property
20    damage, bodily injury or death for which the payment is made,
21    including  the  proceeds  recoverable  from the assets of the
22    insolvent insurer. With respect to payments made by reason of
23    the coverage described in subsection (3), the insurer  making
24    such  payment  shall not be entitled to any right of recovery
25    against the tort-feasor in excess of the  proceeds  recovered
26    from the assets of the insolvent insurer of the tort-feasor.
27        (5)  This  amendatory  Act of 1967 shall not be construed
28    to terminate or reduce any insurance coverage or any right of
29    any party under this Code in effect before July 1, 1967. This
30    amendatory Act of 1990 shall not be construed to terminate or
31    reduce any insurance coverage or any right of any party under
32    this Code in effect before its effective date.
33        (6)  Failure of the motorist from whom  the  claimant  is
34    legally  entitled  to recover damages to file the appropriate
 
                            -10-     LRB093 03430 JLS 14043 a
 1    forms  with  the  Safety  Responsibility   Section   of   the
 2    Department  of Transportation within 120 days of the accident
 3    date shall create a rebuttable presumption that the  motorist
 4    was uninsured at the time of the injurious occurrence.
 5        (7)  An insurance carrier may upon good cause require the
 6    insured  to  commence  a  legal  action  against the owner or
 7    operator of an uninsured  motor  vehicle  before  good  faith
 8    negotiation  with the carrier.  If the action is commenced at
 9    the request of the insurance carrier, the carrier  shall  pay
10    to  the  insured,  before  the action is commenced, all court
11    costs, jury fees and sheriff's fees arising from the action.
12        The changes made by this amendatory Act of 1997 apply  to
13    all  policies  of  insurance  amended,  delivered, issued, or
14    renewed on and after the effective date  of  this  amendatory
15    Act of 1997.
16    (Source: P.A. 89-206, eff. 7-21-95; 90-451, eff. 1-1-98.)

17        (215 ILCS 5/155) (from Ch. 73, par. 767)
18        Sec. 155.  Attorney fees.)
19        (1)  In  any action by or against a company wherein there
20    is in issue the  liability  of  a  company  on  a  policy  or
21    policies  of  insurance  or  the  amount  of the loss payable
22    thereunder, or for an unreasonable delay in settling a claim,
23    and it appears to the court that  such  action  or  delay  is
24    vexatious  and  unreasonable,  the court may allow as part of
25    the taxable costs in the  action  reasonable  attorney  fees,
26    other  costs,  plus  an  amount  not to exceed any one of the
27    following amounts:
28        (a)  60% 25% of the amount which the court or jury  finds
29    such  party  is  entitled  to  recover  against  the company,
30    exclusive of all costs;
31        (b)  $60,000 $25,000;
32        (c)  the excess of the amount which  the  court  or  jury
33    finds  such party is entitled to recover, exclusive of costs,
 
                            -11-     LRB093 03430 JLS 14043 a
 1    over the amount, if any, which the company offered to pay  in
 2    settlement of the claim prior to the action.
 3        (2)  Where  there  are several policies insuring the same
 4    insured against the same loss whether issued by the  same  or
 5    by  different  companies, the court may fix the amount of the
 6    allowance so that the total attorney fees on account  of  one
 7    loss  shall  not  be increased by reason of the fact that the
 8    insured brings separate suits on such policies.
 9    (Source: P.A. 84-678.)".