Illinois General Assembly - Full Text of HB5575
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Full Text of HB5575  98th General Assembly

HB5575 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5575

 

Introduced , by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/143a  from Ch. 73, par. 755a

    Amends the Illinois Insurance Code. Provides that with respect to damages and the coverage regarding uninsured and hit and run motor vehicle coverage, any decision made by the arbitrators shall be binding (now, any decision made by the arbitrators shall be binding for the amount of damages not exceeding $50,000 for bodily injury to or death of any one person, $100,000 for bodily injury to or death of 2 or more persons in any one motor vehicle accident, or the corresponding policy limits for bodily injury or death, whichever is less). Provides the changes made by the amendatory Act apply to all policies of insurance amended, delivered, issued, or renewed on and after the effective date of the amendatory Act.


LRB098 14733 RPM 49621 b

 

 

A BILL FOR

 

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1    AN ACT concerning insurance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 143a as follows:
 
6    (215 ILCS 5/143a)  (from Ch. 73, par. 755a)
7    Sec. 143a. Uninsured and hit and run motor vehicle
8coverage.
9    (1) No policy insuring against loss resulting from
10liability imposed by law for bodily injury or death suffered by
11any person arising out of the ownership, maintenance or use of
12a motor vehicle that is designed for use on public highways and
13that is either required to be registered in this State or is
14principally garaged in this State shall be renewed, delivered,
15or issued for delivery in this State unless coverage is
16provided therein or supplemental thereto, in limits for bodily
17injury or death set forth in Section 7-203 of the Illinois
18Vehicle Code for the protection of persons insured thereunder
19who are legally entitled to recover damages from owners or
20operators of uninsured motor vehicles and hit-and-run motor
21vehicles because of bodily injury, sickness or disease,
22including death, resulting therefrom. Uninsured motor vehicle
23coverage does not apply to bodily injury, sickness, disease, or

 

 

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1death resulting therefrom, of an insured while occupying a
2motor vehicle owned by, or furnished or available for the
3regular use of the insured, a resident spouse or resident
4relative, if that motor vehicle is not described in the policy
5under which a claim is made or is not a newly acquired or
6replacement motor vehicle covered under the terms of the
7policy. The limits for any coverage for any vehicle under the
8policy may not be aggregated with the limits for any similar
9coverage, whether provided by the same insurer or another
10insurer, applying to other motor vehicles, for purposes of
11determining the total limit of insurance coverage available for
12bodily injury or death suffered by a person in any one
13accident. No policy shall be renewed, delivered, or issued for
14delivery in this State unless it is provided therein that any
15dispute with respect to the coverage and the amount of damages
16shall be submitted for arbitration to the American Arbitration
17Association and be subject to its rules for the conduct of
18arbitration hearings as to all matters except medical opinions.
19As to medical opinions, if the amount of damages being sought
20is equal to or less than the amount provided for in Section
217-203 of the Illinois Vehicle Code, then the current American
22Arbitration Association Rules shall apply. If the amount being
23sought in an American Arbitration Association case exceeds that
24amount as set forth in Section 7-203 of the Illinois Vehicle
25Code, then the Rules of Evidence that apply in the circuit
26court for placing medical opinions into evidence shall govern.

 

 

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1Alternatively, disputes with respect to damages and the
2coverage shall be determined in the following manner: Upon the
3insured requesting arbitration, each party to the dispute shall
4select an arbitrator and the 2 arbitrators so named shall
5select a third arbitrator. If such arbitrators are not selected
6within 45 days from such request, either party may request that
7the arbitration be submitted to the American Arbitration
8Association. Any decision made by the arbitrators shall be
9binding for the amount of damages not exceeding $50,000 for
10bodily injury to or death of any one person, $100,000 for
11bodily injury to or death of 2 or more persons in any one motor
12vehicle accident, or the corresponding policy limits for bodily
13injury or death, whichever is less. All 3-person arbitration
14cases proceeding in accordance with any uninsured motorist
15coverage conducted in this State in which the claimant is only
16seeking monetary damages up to the limits set forth in Section
177-203 of the Illinois Vehicle Code shall be subject to the
18following rules:
19        (A) If at least 60 days' written notice of the
20    intention to offer the following documents in evidence is
21    given to every other party, accompanied by a copy of the
22    document, a party may offer in evidence, without foundation
23    or other proof:
24            (1) bills, records, and reports of hospitals,
25        doctors, dentists, registered nurses, licensed
26        practical nurses, physical therapists, and other

 

 

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1        healthcare providers;
2            (2) bills for drugs, medical appliances, and
3        prostheses;
4            (3) property repair bills or estimates, when
5        identified and itemized setting forth the charges for
6        labor and material used or proposed for use in the
7        repair of the property;
8            (4) a report of the rate of earnings and time lost
9        from work or lost compensation prepared by an employer;
10            (5) the written opinion of an opinion witness, the
11        deposition of a witness, and the statement of a witness
12        that the witness would be allowed to express if
13        testifying in person, if the opinion or statement is
14        made by affidavit or by certification as provided in
15        Section 1-109 of the Code of Civil Procedure;
16            (6) any other document not specifically covered by
17        any of the foregoing provisions that is otherwise
18        admissible under the rules of evidence.
19        Any party receiving a notice under this paragraph (A)
20    may apply to the arbitrator or panel of arbitrators, as the
21    case may be, for the issuance of a subpoena directed to the
22    author or maker or custodian of the document that is the
23    subject of the notice, requiring the person subpoenaed to
24    produce copies of any additional documents as may be
25    related to the subject matter of the document that is the
26    subject of the notice. Any such subpoena shall be issued in

 

 

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1    substantially similar form and served by notice as provided
2    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
3    shall be returnable not less than 5 days before the
4    arbitration hearing.
5        (B) Notwithstanding the provisions of Supreme Court
6    Rule 213(g), a party who proposes to use a written opinion
7    of an expert or opinion witness or the testimony of an
8    expert or opinion witness at the hearing may do so provided
9    a written notice of that intention is given to every other
10    party not less than 60 days prior to the date of hearing,
11    accompanied by a statement containing the identity of the
12    witness, his or her qualifications, the subject matter, the
13    basis of the witness's conclusions, and his or her opinion.
14        (C) Any other party may subpoena the author or maker of
15    a document admissible under this subsection, at that
16    party's expense, and examine the author or maker as if
17    under cross-examination. The provisions of Section 2-1101
18    of the Code of Civil Procedure shall be applicable to
19    arbitration hearings, and it shall be the duty of a party
20    requesting the subpoena to modify the form to show that the
21    appearance is set before an arbitration panel and to give
22    the time and place set for the hearing.
23        (D) The provisions of Section 2-1102 of the Code of
24    Civil Procedure shall be applicable to arbitration
25    hearings under this subsection.
26    (2) No policy insuring against loss resulting from

 

 

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1liability imposed by law for property damage arising out of the
2ownership, maintenance, or use of a motor vehicle shall be
3renewed, delivered, or issued for delivery in this State with
4respect to any private passenger or recreational motor vehicle
5that is designed for use on public highways and that is either
6required to be registered in this State or is principally
7garaged in this State and is not covered by collision insurance
8under the provisions of such policy, unless coverage is made
9available in the amount of the actual cash value of the motor
10vehicle described in the policy or $15,000 whichever is less,
11subject to a $250 deductible, for the protection of persons
12insured thereunder who are legally entitled to recover damages
13from owners or operators of uninsured motor vehicles and
14hit-and-run motor vehicles because of property damage to the
15motor vehicle described in the policy.
16    There shall be no liability imposed under the uninsured
17motorist property damage coverage required by this subsection
18if the owner or operator of the at-fault uninsured motor
19vehicle or hit-and-run motor vehicle cannot be identified. This
20subsection shall not apply to any policy which does not provide
21primary motor vehicle liability insurance for liabilities
22arising from the maintenance, operation, or use of a
23specifically insured motor vehicle.
24    Each insurance company providing motor vehicle property
25damage liability insurance shall advise applicants of the
26availability of uninsured motor vehicle property damage

 

 

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1coverage, the premium therefor, and provide a brief description
2of the coverage. That information need be given only once and
3shall not be required in any subsequent renewal, reinstatement
4or reissuance, substitute, amended, replacement or
5supplementary policy. No written rejection shall be required,
6and the absence of a premium payment for uninsured motor
7vehicle property damage shall constitute conclusive proof that
8the applicant or policyholder has elected not to accept
9uninsured motorist property damage coverage.
10    An insurance company issuing uninsured motor vehicle
11property damage coverage may provide that:
12        (i) Property damage losses recoverable thereunder
13    shall be limited to damages caused by the actual physical
14    contact of an uninsured motor vehicle with the insured
15    motor vehicle.
16        (ii) There shall be no coverage for loss of use of the
17    insured motor vehicle and no coverage for loss or damage to
18    personal property located in the insured motor vehicle.
19        (iii) Any claim submitted shall include the name and
20    address of the owner of the at-fault uninsured motor
21    vehicle, or a registration number and description of the
22    vehicle, or any other available information to establish
23    that there is no applicable motor vehicle property damage
24    liability insurance.
25     Any dispute with respect to the coverage and the amount of
26damages shall be submitted for arbitration to the American

 

 

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1Arbitration Association and be subject to its rules for the
2conduct of arbitration hearings or for determination in the
3following manner: Upon the insured requesting arbitration,
4each party to the dispute shall select an arbitrator and the 2
5arbitrators so named shall select a third arbitrator. If such
6arbitrators are not selected within 45 days from such request,
7either party may request that the arbitration be submitted to
8the American Arbitration Association. Any arbitration
9proceeding under this subsection seeking recovery for property
10damages shall be subject to the following rules:
11        (A) If at least 60 days' written notice of the
12    intention to offer the following documents in evidence is
13    given to every other party, accompanied by a copy of the
14    document, a party may offer in evidence, without foundation
15    or other proof:
16            (1) property repair bills or estimates, when
17        identified and itemized setting forth the charges for
18        labor and material used or proposed for use in the
19        repair of the property;
20            (2) the written opinion of an opinion witness, the
21        deposition of a witness, and the statement of a witness
22        that the witness would be allowed to express if
23        testifying in person, if the opinion or statement is
24        made by affidavit or by certification as provided in
25        Section 1-109 of the Code of Civil Procedure;
26            (3) any other document not specifically covered by

 

 

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1        any of the foregoing provisions that is otherwise
2        admissible under the rules of evidence.
3        Any party receiving a notice under this paragraph (A)
4    may apply to the arbitrator or panel of arbitrators, as the
5    case may be, for the issuance of a subpoena directed to the
6    author or maker or custodian of the document that is the
7    subject of the notice, requiring the person subpoenaed to
8    produce copies of any additional documents as may be
9    related to the subject matter of the document that is the
10    subject of the notice. Any such subpoena shall be issued in
11    substantially similar form and served by notice as provided
12    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
13    shall be returnable not less than 5 days before the
14    arbitration hearing.
15        (B) Notwithstanding the provisions of Supreme Court
16    Rule 213(g), a party who proposes to use a written opinion
17    of an expert or opinion witness or the testimony of an
18    expert or opinion witness at the hearing may do so provided
19    a written notice of that intention is given to every other
20    party not less than 60 days prior to the date of hearing,
21    accompanied by a statement containing the identity of the
22    witness, his or her qualifications, the subject matter, the
23    basis of the witness's conclusions, and his or her opinion.
24        (C) Any other party may subpoena the author or maker of
25    a document admissible under this subsection, at that
26    party's expense, and examine the author or maker as if

 

 

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1    under cross-examination. The provisions of Section 2-1101
2    of the Code of Civil Procedure shall be applicable to
3    arbitration hearings, and it shall be the duty of a party
4    requesting the subpoena to modify the form to show that the
5    appearance is set before an arbitration panel and to give
6    the time and place set for the hearing.
7        (D) The provisions of Section 2-1102 of the Code of
8    Civil Procedure shall be applicable to arbitration
9    hearings under this subsection.
10    (3) For the purpose of the coverage the term "uninsured
11motor vehicle" includes, subject to the terms and conditions of
12the coverage, a motor vehicle where on, before or after the
13accident date the liability insurer thereof is unable to make
14payment with respect to the legal liability of its insured
15within the limits specified in the policy because of the entry
16by a court of competent jurisdiction of an order of
17rehabilitation or liquidation by reason of insolvency on or
18after the accident date. An insurer's extension of coverage, as
19provided in this subsection, shall be applicable to all
20accidents occurring after July 1, 1967 during a policy period
21in which its insured's uninsured motor vehicle coverage is in
22effect. Nothing in this Section may be construed to prevent any
23insurer from extending coverage under terms and conditions more
24favorable to its insureds than is required by this Section.
25    (4) In the event of payment to any person under the
26coverage required by this Section and subject to the terms and

 

 

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1conditions of the coverage, the insurer making the payment
2shall, to the extent thereof, be entitled to the proceeds of
3any settlement or judgment resulting from the exercise of any
4rights of recovery of the person against any person or
5organization legally responsible for the property damage,
6bodily injury or death for which the payment is made, including
7the proceeds recoverable from the assets of the insolvent
8insurer. With respect to payments made by reason of the
9coverage described in subsection (3), the insurer making such
10payment shall not be entitled to any right of recovery against
11the tort-feasor in excess of the proceeds recovered from the
12assets of the insolvent insurer of the tort-feasor.
13    (5) This amendatory Act of 1967 shall not be construed to
14terminate or reduce any insurance coverage or any right of any
15party under this Code in effect before July 1, 1967. This
16amendatory Act of 1990 shall not be construed to terminate or
17reduce any insurance coverage or any right of any party under
18this Code in effect before its effective date.
19    (6) Failure of the motorist from whom the claimant is
20legally entitled to recover damages to file the appropriate
21forms with the Safety Responsibility Section of the Department
22of Transportation within 120 days of the accident date shall
23create a rebuttable presumption that the motorist was uninsured
24at the time of the injurious occurrence.
25    (7) An insurance carrier may upon good cause require the
26insured to commence a legal action against the owner or

 

 

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1operator of an uninsured motor vehicle before good faith
2negotiation with the carrier. If the action is commenced at the
3request of the insurance carrier, the carrier shall pay to the
4insured, before the action is commenced, all court costs, jury
5fees and sheriff's fees arising from the action.
6    The changes made by this amendatory Act of 1997 apply to
7all policies of insurance amended, delivered, issued, or
8renewed on and after the effective date of this amendatory Act
9of 1997.
10    (8) The changes made by this amendatory Act of the 98th
11General Assembly apply to all policies of insurance amended,
12delivered, issued, or renewed on and after the effective date
13of this amendatory Act of the 98th General Assembly.
14(Source: P.A. 98-242, eff. 1-1-14.)