Full Text of SB3388 93rd General Assembly
SB3388 93RD GENERAL ASSEMBLY
|
|
|
93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB3388
Introduced 7/23/2004, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
|
215 ILCS 5/143e new |
|
625 ILCS 5/7-317 |
from Ch. 95 1/2, par. 7-317 |
|
Amends the Illinois Insurance Code. Provides that an
insurer that delivers, issues for delivery, or renews a policy of
automobile insurance in this State must offer the State, units of local government, and school districts automobile insurance coverage from that insurer a
choice between a mile-based rating plan and a time-based rating
plan for coverage for losses caused by collision or other
driving-related accidents. Amends the Vehicle Code to include a reference to the mile-base rating plans.
|
| |
|
|
| FISCAL NOTE ACT MAY APPLY | |
|
|
A BILL FOR
|
|
|
|
|
SB3388 |
|
LRB093 22835 AMC 52644 b |
|
| 1 |
| AN ACT concerning automobile 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 adding | 5 |
| Section 143e as follows: | 6 |
| (215 ILCS 5/143e new) | 7 |
| Sec. 143e. Mile-based rating plans. | 8 |
| (a) As used in this Section:
| 9 |
| "Insurer" means any person duly licensed in this State as | 10 |
| an insurance company pursuant to Articles II, III, III 1/2, IV, | 11 |
| V, VI, and XVII of this Code.
| 12 |
| "Mile-based rating plan" means a rating plan for
which a | 13 |
| unit of exposure is one mile traveled by the insured motor
| 14 |
| vehicle.
| 15 |
| "Time-based rating plan" means a rating plan for
which a | 16 |
| unit of exposure is a unit of time.
| 17 |
| (b) An
insurer that delivers, issues for delivery, or | 18 |
| renews a policy of
automobile insurance, as defined in | 19 |
| subsection (a) of Section 143.13, in this State on or after the | 20 |
| effective date of this amendatory Act of the 93rd General | 21 |
| Assembly must offer the State, units of local government, and | 22 |
| school districts automobile insurance coverage from that | 23 |
| insurer a
choice between a mile-based rating plan and a | 24 |
| time-based rating
plan for coverage for losses caused by | 25 |
| collision or other
driving-related accidents. | 26 |
| The insurer may require the State, units of local | 27 |
| government, and school districts to
use the same rating plan | 28 |
| for all vehicles covered under its automobile insurance policy.
| 29 |
| (c) Each insurer
that offers the mile-based rating plan | 30 |
| under this Section shall
annually file with the Director for | 31 |
| the Director's approval
a schedule of the insurer's premium | 32 |
| rates for automobile
insurance based on the mile-based rating |
|
|
|
SB3388 |
- 2 - |
LRB093 22835 AMC 52644 b |
|
| 1 |
| plan and the time-based
rating plan used by that insurer. The | 2 |
| insurer shall file with the
rate schedule a statement of any | 3 |
| fee to be charged for participation in the mile-based
rating | 4 |
| plan. | 5 |
| (d) The Director shall analyze the premium rates filed
by | 6 |
| an insurer under subsection (c). If the
Director determines | 7 |
| that the filed rates are excessive in
comparison to the premium | 8 |
| rates charged for similar coverage under
a time-based rating | 9 |
| plan used by the insurer, the Director shall reject the rates | 10 |
| after notice to the insurer and an
opportunity for a hearing. | 11 |
| The Director must notify the
insurer that the rates are | 12 |
| rejected not later than the 60th day
after the date on which | 13 |
| the rates are filed under subsection (c). An insurer may not | 14 |
| use rates rejected by the
Director under this subsection. | 15 |
| (e) The
Director shall: | 16 |
| (1) compile information regarding: | 17 |
| (A) the number of insurers writing motor vehicle
| 18 |
| insurance based on mile-based rating plans; | 19 |
| (B) the geographic areas of this State in which
| 20 |
| mile-based rating plans are used; and | 21 |
| (C) the premium rates for mile-based rating
plans | 22 |
| compared to standard time-based rating plans; and | 23 |
| (2) analyze the effect of mile-based rating plans on | 24 |
| premium rates offered for motor vehicle
insurance based on | 25 |
| time-based rating plans. | 26 |
| (f) The Director shall adopt rules as necessary or
| 27 |
| appropriate to govern the use of a mile-based rating plan under
| 28 |
| this Section, including rules regarding: | 29 |
| (1) prepayment arrangements; | 30 |
| (2) proof of financial responsibility; | 31 |
| (3) auditing of the odometer of a vehicle for the
| 32 |
| purpose of determining whether coverage is in force; and | 33 |
| (4) policy forms.
| 34 |
| Section 10. The Illinois Vehicle Code is amended by | 35 |
| changing Section 7-317 as follows:
|
|
|
|
SB3388 |
- 3 - |
LRB093 22835 AMC 52644 b |
|
| 1 |
| (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
| 2 |
| Sec. 7-317. "Motor vehicle liability policy" defined. (a)
| 3 |
| Certification. -A "motor vehicle liability policy", as that | 4 |
| term is
used in this Act, means an "owner's policy" or an | 5 |
| "operator's policy" of
liability insurance, certified as | 6 |
| provided in Section 7-315 or Section
7-316 as proof of | 7 |
| financial responsibility for the future, and issued,
except as | 8 |
| otherwise provided in Section 7-316, by an insurance carrier
| 9 |
| duly authorized to transact business in this State, to or for | 10 |
| the
benefit of the person named therein as insured.
| 11 |
| (b) Owner's Policy. --Such owner's policy of liability | 12 |
| insurance:
| 13 |
| 1. Shall designate by explicit description or by | 14 |
| appropriate
reference, all motor vehicles with respect to which | 15 |
| coverage is thereby
intended to be granted;
| 16 |
| 2. Shall insure the person named therein and any other | 17 |
| person using
or responsible for the use of such motor vehicle | 18 |
| or vehicles with the
express or implied permission of the | 19 |
| insured;
| 20 |
| 3. Shall insure every named insured and any other person | 21 |
| using or
responsible for the use of any motor vehicle owned by | 22 |
| the named insured
and used by such other person with the | 23 |
| express or implied permission of
the named insured on account | 24 |
| of the maintenance, use or operation of any
motor vehicle owned | 25 |
| by the named insured, within the continental limits
of the | 26 |
| United States or the Dominion of Canada against loss from
| 27 |
| liability imposed by law arising from such maintenance, use or
| 28 |
| operation, to the extent and aggregate amount, exclusive of | 29 |
| interest and
cost, with respect to each motor vehicle, of | 30 |
| $20,000 for bodily injury
to or death of one person as a result | 31 |
| of any one accident and, subject
to such limit as to one | 32 |
| person, the amount of $40,000 for bodily injury
to or death of | 33 |
| all persons as a result of any one accident and the
amount of | 34 |
| $15,000 for damage to property of others as a result of any
one | 35 |
| accident.
|
|
|
|
SB3388 |
- 4 - |
LRB093 22835 AMC 52644 b |
|
| 1 |
| (c) Operator's Policy. --When an operator's policy is | 2 |
| required, it
shall insure the person named therein as insured | 3 |
| against the liability
imposed by law upon the insured for | 4 |
| bodily injury to or death of any
person or damage to property | 5 |
| to the amounts and limits above set forth
and growing out of | 6 |
| the use or operation by the insured within the
continental | 7 |
| limits of the United States or the Dominion of Canada of any
| 8 |
| motor vehicle not owned by him.
| 9 |
| (d) Required Statements in Policies. --Every motor vehicle | 10 |
| liability
policy must specify the name and address of the | 11 |
| insured, the coverage
afforded by the policy, the premium | 12 |
| charged therefor, the policy period if the policy premium is | 13 |
| computed using a time-based rating plan or the amount of miles | 14 |
| covered if the policy premium is computed using a mile-based | 15 |
| rating plan ,
and the limits of liability, and shall contain an | 16 |
| agreement that the
insurance thereunder is provided in | 17 |
| accordance with the coverage defined
in this Act, as respects | 18 |
| bodily injury and death or property damage or
both, and is | 19 |
| subject to all the provisions of this Act.
| 20 |
| (e) Policy Need Not Insure Workers' Compensation. --Any | 21 |
| liability
policy or policies issued hereunder need not cover | 22 |
| any liability of the
insured assumed by or imposed upon the | 23 |
| insured under any workers'
compensation law nor any liability | 24 |
| for damage to property in charge of
the insured or the | 25 |
| insured's employees.
| 26 |
| (f) Provisions Incorporated in Policy. --Every motor | 27 |
| vehicle
liability policy is subject to the following provisions | 28 |
| which need not
be contained therein:
| 29 |
| 1. The liability of the insurance carrier under any such | 30 |
| policy
shall become absolute whenever loss or damage covered by | 31 |
| the policy
occurs and the satisfaction by the insured of a | 32 |
| final judgment for such
loss or damage shall not be a condition | 33 |
| precedent to the right or
obligation of the carrier to make | 34 |
| payment on account of such loss or
damage.
| 35 |
| 2. No such policy may be cancelled or annulled as respects | 36 |
| any loss
or damage, by any agreement between the carrier and |
|
|
|
SB3388 |
- 5 - |
LRB093 22835 AMC 52644 b |
|
| 1 |
| the insured after
the insured has become responsible for such | 2 |
| loss or damage, and any such
cancellation or annulment shall be | 3 |
| void.
| 4 |
| 3. The insurance carrier shall, however, have the right to | 5 |
| settle
any claim covered by the policy, and if such settlement | 6 |
| is made in good
faith, the amount thereof shall be deductible | 7 |
| from the limits of
liability specified in the policy.
| 8 |
| 4. The policy, the written application therefor, if any, | 9 |
| and any
rider or endorsement which shall not conflict with the | 10 |
| provisions of
this Act shall constitute the entire contract | 11 |
| between the parties.
| 12 |
| (g) Excess or Additional Coverage. --Any motor vehicle | 13 |
| liability
policy may, however, grant any lawful coverage in | 14 |
| excess of or in
addition to the coverage herein specified or | 15 |
| contain any agreements,
provisions, or stipulations not in | 16 |
| conflict with the provisions of this
Act and not otherwise | 17 |
| contrary to law.
| 18 |
| (h) Reimbursement Provision Permitted. --The policy may | 19 |
| provide that
the insured, or any other person covered by the | 20 |
| policy shall reimburse
the insurance carrier for payment made | 21 |
| on account of any loss or damage
claim or suit involving a | 22 |
| breach of the terms, provisions or conditions
of the policy; | 23 |
| and further, if the policy shall provide for limits in
excess | 24 |
| of the limits specified in this Act, the insurance carrier may
| 25 |
| plead against any plaintiff, with respect to the amount of such | 26 |
| excess
limits of liability, any defense which it may be | 27 |
| entitled to plead
against the insured.
| 28 |
| (i) Proration of Insurance Permitted. --The policy may | 29 |
| provide for
the pro-rating of the insurance thereunder with | 30 |
| other applicable valid
and collectible insurance.
| 31 |
| (j) Binders. --Any binder pending the issuance of any | 32 |
| policy, which
binder contains or by reference includes the | 33 |
| provisions hereunder shall
be sufficient proof of ability to | 34 |
| respond in damages.
| 35 |
| (k) Copy of Policy to Be Filed with Department of
| 36 |
| Insurance--Approval. --A copy of the form of every motor |
|
|
|
SB3388 |
- 6 - |
LRB093 22835 AMC 52644 b |
|
| 1 |
| vehicle
liability policy which is to be used to meet the | 2 |
| requirements of this
Act must be filed, by the company offering | 3 |
| such policy, with the
Department of Insurance, which shall | 4 |
| approve or disapprove the policy
within 30 days of its filing. | 5 |
| If the Department approves the policy in
writing within such 30 | 6 |
| day period or fails to take action for 30 days,
the form of | 7 |
| policy shall be deemed approved as filed. If within the 30
days | 8 |
| the Department disapproves the form of policy filed upon the | 9 |
| ground
that it does not comply with the requirements of this | 10 |
| Act, the
Department shall give written notice of its decision | 11 |
| and its reasons
therefor to the carrier and the policy shall | 12 |
| not be accepted as proof of
financial responsibility under this | 13 |
| Act.
| 14 |
| (l) Insurance Carrier Required to File Certificate. --An | 15 |
| insurance
carrier who has issued a motor vehicle liability | 16 |
| policy or policies or
an operator's policy meeting the | 17 |
| requirements of this Act shall, upon
the request of the insured | 18 |
| therein, deliver to the insured for filing,
or at the request | 19 |
| of the insured, shall file direct, with the Secretary
of State | 20 |
| a certificate, as required by this Act, which shows that such
| 21 |
| policy or policies have been issued. No insurance carrier may | 22 |
| require
the payment of any extra fee or surcharge, in addition | 23 |
| to the insurance
premium, for the execution, delivery or filing | 24 |
| of such certificate.
| 25 |
| (m) Proof When Made By Endorsement. --Any motor vehicle | 26 |
| liability
policy which by endorsement contains the provisions | 27 |
| required hereunder
shall be sufficient proof of ability to | 28 |
| respond in damages.
| 29 |
| (Source: P.A. 85-730.)
|
|