Illinois General Assembly - Full Text of SB1207
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Full Text of SB1207  93rd General Assembly

SB1207eng 93rd General Assembly


093_SB1207eng

 
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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 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  $50,000  the
30    limits  for  bodily  injury  to  or  death of any one person,
31    $100,000 for bodily injury to or death of 2 or  more  persons
32    in  any  one  motor  vehicle  accident,  or the corresponding
33    policy limits for bodily injury or death, whichever  is  less
34    set  forth in Section 7-203 of the Illinois Vehicle Code. All
 
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 1    3-person arbitration cases proceeding in accordance with  any
 2    uninsured  motorist coverage conducted in this State in which
 3    the claimant is only  seeking  monetary  damages  up  to  the
 4    limits  set  forth  in  Section 7-203 of the Illinois Vehicle
 5    Code shall be subject to the following rules:
 6             (A)  If at least 60  days'  written  notice  of  the
 7        intention to offer the following documents in evidence is
 8        given  to every other party, accompanied by a copy of the
 9        document,  a  party  may  offer  in   evidence,   without
10        foundation or other proof:
11                  (1)  bills,  records, and reports of hospitals,
12             doctors,  dentists,  registered   nurses,   licensed
13             practical  nurses,  physical  therapists,  and other
14             healthcare providers;
15                  (2)  bills for drugs, medical  appliances,  and
16             prostheses;
17                  (3)  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                  (4)  a report of the rate of earnings and  time
22             lost  from  work or lost compensation prepared by an
23             employer;
24                  (5)  the written opinion of an opinion witness,
25             the deposition of a witness, and the statement of  a
26             witness that the witness would be allowed to express
27             if testifying in person, if the opinion or statement
28             is made by affidavit or by certification as provided
29             in Section 1-109 of the Code of Civil Procedure;
30                  (6)  any   other   document   not  specifically
31             covered by any of the foregoing provisions  that  is
32             otherwise admissible under the rules of evidence.
33             Any  party  receiving  a notice under this paragraph
34        (A) may apply to the arbitrator or panel of  arbitrators,
 
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 1        as  the  case  may  be,  for  the  issuance of a subpoena
 2        directed to the author  or  maker  or  custodian  of  the
 3        document that is the subject of the notice, requiring the
 4        person  subpoenaed  to  produce  copies of any additional
 5        documents as may be related to the subject matter of  the
 6        document  that  is  the  subject of the notice.  Any such
 7        subpoena shall be issued in  substantially  similar  form
 8        and  served  by  notice  as  provided by Illinois Supreme
 9        Court  Rule  204(a)(4).   Any  such  subpoena  shall   be
10        returnable  not  less  than 5 days before the arbitration
11        hearing.
12             (B)  Notwithstanding the provisions of Supreme Court
13        Rule 213(g), a  party  who  proposes  to  use  a  written
14        opinion  of an expert or opinion witness or the testimony
15        of an expert or opinion witness at the hearing may do  so
16        provided  a  written notice of that intention is given to
17        every other party not less than 60 days prior to the date
18        of hearing, accompanied by  a  statement  containing  the
19        identity  of  the witness, his or her qualifications, the
20        subject matter, the basis of the  witness's  conclusions,
21        and his or her opinion.
22             (C)  Any  other  party  may  subpoena  the author or
23        maker of a document admissible under this subsection,  at
24        that  party's expense, and examine the author or maker as
25        if under cross-examination.  The  provisions  of  Section
26        2-1101 of the Code of Civil Procedure shall be applicable
27        to  arbitration  hearings,  and it shall be the duty of a
28        party requesting the subpoena to modify the form to  show
29        that  the  appearance  is set before an arbitration panel
30        and to give the time and place set for the hearing.
31             (D)  The provisions of Section 2-1102 of the Code of
32        Civil  Procedure  shall  be  applicable  to   arbitration
33        hearings under this subsection.
34        (2)  No  policy  insuring  against  loss  resulting  from
 
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 1    liability  imposed  by law for property damage arising out of
 2    the ownership, maintenance, or use of a motor  vehicle  shall
 3    be  renewed,  delivered, or issued for delivery in this State
 4    with respect to any private passenger or  recreational  motor
 5    vehicle  that is designed for use on public highways and that
 6    is either required to be  registered  in  this  State  or  is
 7    principally  garaged  in  this  State  and  is not covered by
 8    collision insurance under  the  provisions  of  such  policy,
 9    unless coverage is made available in the amount of the actual
10    cash  value  of  the motor vehicle described in the policy or
11    $15,000 whichever is less, subject to a $250 deductible,  for
12    the  protection of persons insured thereunder who are legally
13    entitled to recover  damages  from  owners  or  operators  of
14    uninsured  motor  vehicles  and  hit-and-run  motor  vehicles
15    because  of property damage to the motor vehicle described in
16    the policy.
17        There shall be no liability imposed under  the  uninsured
18    motorist property damage coverage required by this subsection
19    if  the  owner  or  operator  of the at-fault uninsured motor
20    vehicle or hit-and-run motor vehicle  cannot  be  identified.
21    This  subsection shall not apply to any policy which does not
22    provide  primary  motor  vehicle  liability   insurance   for
23    liabilities  arising  from the maintenance, operation, or use
24    of a specifically insured motor vehicle.
25        Each insurance company providing motor  vehicle  property
26    damage  liability  insurance  shall  advise applicants of the
27    availability  of  uninsured  motor  vehicle  property  damage
28    coverage,  the  premium  therefor,  and   provide   a   brief
29    description  of  the coverage.  Each insurer, with respect to
30    the initial renewal, reinstatement, or reissuance of a policy
31    of motor vehicle property damage  liability  insurance  shall
32    provide  present  policyholders  with the same information in
33    writing.  That information need be given only once and  shall
34    not  be  required in any subsequent renewal, reinstatement or
 
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 1    reissuance, substitute, amended, replacement or supplementary
 2    policy.  No written rejection  shall  be  required,  and  the
 3    absence  of  a  premium  payment  for uninsured motor vehicle
 4    property damage shall constitute conclusive  proof  that  the
 5    applicant or policyholder has elected not to accept uninsured
 6    motorist property damage coverage.
 7        An  insurance  company  issuing  uninsured  motor vehicle
 8    property damage coverage may provide that:
 9             (i)  Property damage losses  recoverable  thereunder
10        shall be limited to damages caused by the actual physical
11        contact  of  an  uninsured motor vehicle with the insured
12        motor vehicle.
13             (ii)  There shall be no coverage for loss of use  of
14        the  insured  motor  vehicle  and no coverage for loss or
15        damage to personal property located in the insured  motor
16        vehicle.
17             (iii)  Any  claim  submitted  shall include the name
18        and address of the owner of the at-fault uninsured  motor
19        vehicle,  or a registration number and description of the
20        vehicle, or any other available information to  establish
21        that there is no applicable motor vehicle property damage
22        liability insurance.
23          Any dispute with respect to the coverage and the amount
24    of damages shall be submitted for arbitration to the American
25    Arbitration  Association  and be subject to its rules for the
26    conduct of arbitration hearings or for determination  in  the
27    following  manner:   Upon the insured requesting arbitration,
28    each party to the dispute shall select an arbitrator and  the
29    2  arbitrators  so named shall select a third arbitrator.  If
30    such arbitrators are not selected within 45  days  from  such
31    request,  either  party  may  request that the arbitration be
32    submitted  to  the  American  Arbitration  Association.   Any
33    arbitration proceeding under this subsection seeking recovery
34    for property damages shall be subject to the following rules:
 
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 1             (A)  If  at  least  60  days'  written notice of the
 2        intention to offer the following documents in evidence is
 3        given to every other party, accompanied by a copy of  the
 4        document,   a   party  may  offer  in  evidence,  without
 5        foundation or other proof:
 6                  (1)  property repair bills or  estimates,  when
 7             identified  and  itemized  setting forth the charges
 8             for labor and material used or proposed for  use  in
 9             the repair of the property;
10                  (2)  the written opinion of an opinion witness,
11             the  deposition of a witness, and the statement of a
12             witness that the witness would be allowed to express
13             if testifying in person, if the opinion or statement
14             is made by affidavit or by certification as provided
15             in Section 1-109 of the Code of Civil Procedure;
16                  (3)  any  other   document   not   specifically
17             covered  by  any of the foregoing provisions that is
18             otherwise admissible under the rules of evidence.
19             Any party receiving a notice  under  this  paragraph
20        (A)  may apply to the arbitrator or panel of arbitrators,
21        as the case may  be,  for  the  issuance  of  a  subpoena
22        directed  to  the  author  or  maker  or custodian of the
23        document that is the subject of the notice, requiring the
24        person subpoenaed to produce  copies  of  any  additional
25        documents  as may be related to the subject matter of the
26        document that is the subject of  the  notice.   Any  such
27        subpoena  shall  be  issued in substantially similar form
28        and served by notice  as  provided  by  Illinois  Supreme
29        Court   Rule  204(a)(4).   Any  such  subpoena  shall  be
30        returnable not less than 5 days  before  the  arbitration
31        hearing.
32             (B)  Notwithstanding the provisions of Supreme Court
33        Rule  213(g),  a  party  who  proposes  to  use a written
34        opinion of an expert or opinion witness or the  testimony
 
SB1207 Engrossed            -8-      LRB093 03430 JLS 11035 b
 1        of  an expert or opinion witness at the hearing may do so
 2        provided a written notice of that intention is  given  to
 3        every other party not less than 60 days prior to the date
 4        of  hearing,  accompanied  by  a statement containing the
 5        identity of the witness, his or her  qualifications,  the
 6        subject  matter,  the basis of the witness's conclusions,
 7        and his or her opinion.
 8             (C)  Any other party  may  subpoena  the  author  or
 9        maker  of a document admissible under this subsection, at
10        that party's expense, and examine the author or maker  as
11        if  under  cross-examination.   The provisions of Section
12        2-1101 of the Code of Civil Procedure shall be applicable
13        to arbitration hearings, and it shall be the  duty  of  a
14        party  requesting the subpoena to modify the form to show
15        that the appearance is set before  an  arbitration  panel
16        and to give the time and place set for the hearing.
17             (D)  The provisions of Section 2-1102 of the Code of
18        Civil   Procedure  shall  be  applicable  to  arbitration
19        hearings under this subsection.
20        (3)  For the purpose of the coverage the term  "uninsured
21    motor  vehicle" includes, subject to the terms and conditions
22    of the coverage, a motor vehicle where on,  before  or  after
23    the  accident date the liability insurer thereof is unable to
24    make payment with respect  to  the  legal  liability  of  its
25    insured  within the limits specified in the policy because of
26    the entry by a court of competent jurisdiction of an order of
27    rehabilitation or liquidation by reason of insolvency  on  or
28    after  the accident date. An insurer's extension of coverage,
29    as provided in this subsection, shall be  applicable  to  all
30    accidents occurring after July 1, 1967 during a policy period
31    in which its insured's uninsured motor vehicle coverage is in
32    effect.  Nothing  in this Section may be construed to prevent
33    any  insurer  from  extending  coverage   under   terms   and
34    conditions more favorable to its insureds than is required by
 
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 1    this Section.
 2        (4)  In  the  event  of  payment  to any person under the
 3    coverage required by this Section and subject  to  the  terms
 4    and  conditions  of  the  coverage,  the  insurer  making the
 5    payment shall, to the extent  thereof,  be  entitled  to  the
 6    proceeds  of  any  settlement  or judgment resulting from the
 7    exercise of any rights of recovery of the person against  any
 8    person  or  organization legally responsible for the property
 9    damage, bodily injury or death for which the payment is made,
10    including the proceeds recoverable from  the  assets  of  the
11    insolvent insurer. With respect to payments made by reason of
12    the  coverage described in subsection (3), the insurer making
13    such payment shall not be entitled to any right  of  recovery
14    against  the  tort-feasor in excess of the proceeds recovered
15    from the assets of the insolvent insurer of the tort-feasor.
16        (5)  This amendatory Act of 1967 shall not  be  construed
17    to terminate or reduce any insurance coverage or any right of
18    any party under this Code in effect before July 1, 1967. This
19    amendatory Act of 1990 shall not be construed to terminate or
20    reduce any insurance coverage or any right of any party under
21    this Code in effect before its effective date.
22        (6)  Failure  of  the  motorist from whom the claimant is
23    legally entitled to recover damages to file  the  appropriate
24    forms   with   the   Safety  Responsibility  Section  of  the
25    Department of Transportation within 120 days of the  accident
26    date  shall create a rebuttable presumption that the motorist
27    was uninsured at the time of the injurious occurrence.
28        (7)  An insurance carrier may upon good cause require the
29    insured to commence a  legal  action  against  the  owner  or
30    operator  of  an  uninsured  motor  vehicle before good faith
31    negotiation with the carrier.  If the action is commenced  at
32    the  request  of the insurance carrier, the carrier shall pay
33    to the insured, before the action  is  commenced,  all  court
34    costs, jury fees and sheriff's fees arising from the action.
 
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 1        The  changes made by this amendatory Act of 1997 apply to
 2    all policies of  insurance  amended,  delivered,  issued,  or
 3    renewed  on  and  after the effective date of this amendatory
 4    Act of 1997.
 5    (Source: P.A. 89-206, eff. 7-21-95; 90-451, eff. 1-1-98.)

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