Illinois General Assembly - Full Text of HB5575
Illinois General Assembly

Previous General Assemblies

Full Text of HB5575  98th General Assembly

HB5575ham001 98TH GENERAL ASSEMBLY

Rep. Michael J. Zalewski

Filed: 4/2/2014

 

 


 

 


 
09800HB5575ham001LRB098 14733 RPM 57157 a

1
AMENDMENT TO HOUSE BILL 5575

2    AMENDMENT NO. ______. Amend House Bill 5575 by replacing
3everything after the enacting clause with the following:
 
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

 

 

09800HB5575ham001- 2 -LRB098 14733 RPM 57157 a

1injury or death set forth in Section 7-203 of the Illinois
2Vehicle Code for the protection of persons insured thereunder
3who are legally entitled to recover damages from owners or
4operators of uninsured motor vehicles and hit-and-run motor
5vehicles because of bodily injury, sickness or disease,
6including death, resulting therefrom. Uninsured motor vehicle
7coverage does not apply to bodily injury, sickness, disease, or
8death resulting therefrom, of an insured while occupying a
9motor vehicle owned by, or furnished or available for the
10regular use of the insured, a resident spouse or resident
11relative, if that motor vehicle is not described in the policy
12under which a claim is made or is not a newly acquired or
13replacement motor vehicle covered under the terms of the
14policy. The limits for any coverage for any vehicle under the
15policy may not be aggregated with the limits for any similar
16coverage, whether provided by the same insurer or another
17insurer, applying to other motor vehicles, for purposes of
18determining the total limit of insurance coverage available for
19bodily injury or death suffered by a person in any one
20accident. No policy shall be renewed, delivered, or issued for
21delivery in this State unless it is provided therein that any
22dispute with respect to the coverage and the amount of damages
23shall be submitted for arbitration to the American Arbitration
24Association and be subject to its rules for the conduct of
25arbitration hearings as to all matters except medical opinions.
26As to medical opinions, if the amount of damages being sought

 

 

09800HB5575ham001- 3 -LRB098 14733 RPM 57157 a

1is equal to or less than the amount provided for in Section
27-203 of the Illinois Vehicle Code, then the current American
3Arbitration Association Rules shall apply. If the amount being
4sought in an American Arbitration Association case exceeds that
5amount as set forth in Section 7-203 of the Illinois Vehicle
6Code, then the Rules of Evidence that apply in the circuit
7court for placing medical opinions into evidence shall govern.
8Alternatively, disputes with respect to damages and the
9coverage shall be determined in the following manner: Upon the
10insured requesting arbitration, each party to the dispute shall
11select an arbitrator and the 2 arbitrators so named shall
12select a third arbitrator. If such arbitrators are not selected
13within 45 days from such request, either party may request that
14the arbitration be submitted to the American Arbitration
15Association. Any decision made by the arbitrators shall be
16binding for the amount of damages not exceeding $75,000 $50,000
17for bodily injury to or death of any one person, $150,000
18$100,000 for bodily injury to or death of 2 or more persons in
19any one motor vehicle accident, or the corresponding policy
20limits for bodily injury or death, whichever is less. All
213-person arbitration cases proceeding in accordance with any
22uninsured motorist coverage conducted in this State in which
23the claimant is only seeking monetary damages up to the limits
24set forth in Section 7-203 of the Illinois Vehicle Code shall
25be subject to the following rules:
26        (A) If at least 60 days' written notice of the

 

 

09800HB5575ham001- 4 -LRB098 14733 RPM 57157 a

1    intention to offer the following documents in evidence is
2    given to every other party, accompanied by a copy of the
3    document, a party may offer in evidence, without foundation
4    or other proof:
5            (1) bills, records, and reports of hospitals,
6        doctors, dentists, registered nurses, licensed
7        practical nurses, physical therapists, and other
8        healthcare providers;
9            (2) bills for drugs, medical appliances, and
10        prostheses;
11            (3) property repair bills or estimates, when
12        identified and itemized setting forth the charges for
13        labor and material used or proposed for use in the
14        repair of the property;
15            (4) a report of the rate of earnings and time lost
16        from work or lost compensation prepared by an employer;
17            (5) the written opinion of an opinion witness, the
18        deposition of a witness, and the statement of a witness
19        that the witness would be allowed to express if
20        testifying in person, if the opinion or statement is
21        made by affidavit or by certification as provided in
22        Section 1-109 of the Code of Civil Procedure;
23            (6) any other document not specifically covered by
24        any of the foregoing provisions that is otherwise
25        admissible under the rules of evidence.
26        Any party receiving a notice under this paragraph (A)

 

 

09800HB5575ham001- 5 -LRB098 14733 RPM 57157 a

1    may apply to the arbitrator or panel of arbitrators, as the
2    case may be, for the issuance of a subpoena directed to the
3    author or maker or custodian of the document that is the
4    subject of the notice, requiring the person subpoenaed to
5    produce copies of any additional documents as may be
6    related to the subject matter of the document that is the
7    subject of the notice. Any such subpoena shall be issued in
8    substantially similar form and served by notice as provided
9    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
10    shall be returnable not less than 5 days before the
11    arbitration hearing.
12        (B) Notwithstanding the provisions of Supreme Court
13    Rule 213(g), a party who proposes to use a written opinion
14    of an expert or opinion witness or the testimony of an
15    expert or opinion witness at the hearing may do so provided
16    a written notice of that intention is given to every other
17    party not less than 60 days prior to the date of hearing,
18    accompanied by a statement containing the identity of the
19    witness, his or her qualifications, the subject matter, the
20    basis of the witness's conclusions, and his or her opinion.
21        (C) Any other party may subpoena the author or maker of
22    a document admissible under this subsection, at that
23    party's expense, and examine the author or maker as if
24    under cross-examination. The provisions of Section 2-1101
25    of the Code of Civil Procedure shall be applicable to
26    arbitration hearings, and it shall be the duty of a party

 

 

09800HB5575ham001- 6 -LRB098 14733 RPM 57157 a

1    requesting the subpoena to modify the form to show that the
2    appearance is set before an arbitration panel and to give
3    the time and place set for the hearing.
4        (D) The provisions of Section 2-1102 of the Code of
5    Civil Procedure shall be applicable to arbitration
6    hearings under this subsection.
7    (2) No policy insuring against loss resulting from
8liability imposed by law for property damage arising out of the
9ownership, maintenance, or use of a motor vehicle shall be
10renewed, delivered, or issued for delivery in this State with
11respect to any private passenger or recreational motor vehicle
12that is designed for use on public highways and that is either
13required to be registered in this State or is principally
14garaged in this State and is not covered by collision insurance
15under the provisions of such policy, unless coverage is made
16available in the amount of the actual cash value of the motor
17vehicle described in the policy or $15,000 whichever is less,
18subject to a $250 deductible, for the protection of persons
19insured thereunder who are legally entitled to recover damages
20from owners or operators of uninsured motor vehicles and
21hit-and-run motor vehicles because of property damage to the
22motor vehicle described in the policy.
23    There shall be no liability imposed under the uninsured
24motorist property damage coverage required by this subsection
25if the owner or operator of the at-fault uninsured motor
26vehicle or hit-and-run motor vehicle cannot be identified. This

 

 

09800HB5575ham001- 7 -LRB098 14733 RPM 57157 a

1subsection shall not apply to any policy which does not provide
2primary motor vehicle liability insurance for liabilities
3arising from the maintenance, operation, or use of a
4specifically insured motor vehicle.
5    Each insurance company providing motor vehicle property
6damage liability insurance shall advise applicants of the
7availability of uninsured motor vehicle property damage
8coverage, the premium therefor, and provide a brief description
9of the coverage. That information need be given only once and
10shall not be required in any subsequent renewal, reinstatement
11or reissuance, substitute, amended, replacement or
12supplementary policy. No written rejection shall be required,
13and the absence of a premium payment for uninsured motor
14vehicle property damage shall constitute conclusive proof that
15the applicant or policyholder has elected not to accept
16uninsured motorist property damage coverage.
17    An insurance company issuing uninsured motor vehicle
18property damage coverage may provide that:
19        (i) Property damage losses recoverable thereunder
20    shall be limited to damages caused by the actual physical
21    contact of an uninsured motor vehicle with the insured
22    motor vehicle.
23        (ii) There shall be no coverage for loss of use of the
24    insured motor vehicle and no coverage for loss or damage to
25    personal property located in the insured motor vehicle.
26        (iii) Any claim submitted shall include the name and

 

 

09800HB5575ham001- 8 -LRB098 14733 RPM 57157 a

1    address of the owner of the at-fault uninsured motor
2    vehicle, or a registration number and description of the
3    vehicle, or any other available information to establish
4    that there is no applicable motor vehicle property damage
5    liability insurance.
6     Any dispute with respect to the coverage and the amount of
7damages shall be submitted for arbitration to the American
8Arbitration Association and be subject to its rules for the
9conduct of arbitration hearings or for determination in the
10following manner: Upon the insured requesting arbitration,
11each party to the dispute shall select an arbitrator and the 2
12arbitrators so named shall select a third arbitrator. If such
13arbitrators are not selected within 45 days from such request,
14either party may request that the arbitration be submitted to
15the American Arbitration Association. Any arbitration
16proceeding under this subsection seeking recovery for property
17damages shall be subject to the following rules:
18        (A) If at least 60 days' written notice of the
19    intention to offer the following documents in evidence is
20    given to every other party, accompanied by a copy of the
21    document, a party may offer in evidence, without foundation
22    or other proof:
23            (1) property repair bills or estimates, when
24        identified and itemized setting forth the charges for
25        labor and material used or proposed for use in the
26        repair of the property;

 

 

09800HB5575ham001- 9 -LRB098 14733 RPM 57157 a

1            (2) the written opinion of an opinion witness, the
2        deposition of a witness, and the statement of a witness
3        that the witness would be allowed to express if
4        testifying in person, if the opinion or statement is
5        made by affidavit or by certification as provided in
6        Section 1-109 of the Code of Civil Procedure;
7            (3) any other document not specifically covered by
8        any of the foregoing provisions that is otherwise
9        admissible under the rules of evidence.
10        Any party receiving a notice under this paragraph (A)
11    may apply to the arbitrator or panel of arbitrators, as the
12    case may be, for the issuance of a subpoena directed to the
13    author or maker or custodian of the document that is the
14    subject of the notice, requiring the person subpoenaed to
15    produce copies of any additional documents as may be
16    related to the subject matter of the document that is the
17    subject of the notice. Any such subpoena shall be issued in
18    substantially similar form and served by notice as provided
19    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
20    shall be returnable not less than 5 days before the
21    arbitration hearing.
22        (B) Notwithstanding the provisions of Supreme Court
23    Rule 213(g), a party who proposes to use a written opinion
24    of an expert or opinion witness or the testimony of an
25    expert or opinion witness at the hearing may do so provided
26    a written notice of that intention is given to every other

 

 

09800HB5575ham001- 10 -LRB098 14733 RPM 57157 a

1    party not less than 60 days prior to the date of hearing,
2    accompanied by a statement containing the identity of the
3    witness, his or her qualifications, the subject matter, the
4    basis of the witness's conclusions, and his or her opinion.
5        (C) Any other party may subpoena the author or maker of
6    a document admissible under this subsection, at that
7    party's expense, and examine the author or maker as if
8    under cross-examination. The provisions of Section 2-1101
9    of the Code of Civil Procedure shall be applicable to
10    arbitration hearings, and it shall be the duty of a party
11    requesting the subpoena to modify the form to show that the
12    appearance is set before an arbitration panel and to give
13    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
18motor vehicle" includes, subject to the terms and conditions of
19the coverage, a motor vehicle where on, before or after the
20accident date the liability insurer thereof is unable to make
21payment with respect to the legal liability of its insured
22within the limits specified in the policy because of the entry
23by a court of competent jurisdiction of an order of
24rehabilitation or liquidation by reason of insolvency on or
25after the accident date. An insurer's extension of coverage, as
26provided in this subsection, shall be applicable to all

 

 

09800HB5575ham001- 11 -LRB098 14733 RPM 57157 a

1accidents occurring after July 1, 1967 during a policy period
2in which its insured's uninsured motor vehicle coverage is in
3effect. Nothing in this Section may be construed to prevent any
4insurer from extending coverage under terms and conditions more
5favorable to its insureds than is required by this Section.
6    (4) In the event of payment to any person under the
7coverage required by this Section and subject to the terms and
8conditions of the coverage, the insurer making the payment
9shall, to the extent thereof, be entitled to the proceeds of
10any settlement or judgment resulting from the exercise of any
11rights of recovery of the person against any person or
12organization legally responsible for the property damage,
13bodily injury or death for which the payment is made, including
14the proceeds recoverable from the assets of the insolvent
15insurer. With respect to payments made by reason of the
16coverage described in subsection (3), the insurer making such
17payment shall not be entitled to any right of recovery against
18the tort-feasor in excess of the proceeds recovered from the
19assets of the insolvent insurer of the tort-feasor.
20    (5) This amendatory Act of 1967 shall not be construed to
21terminate or reduce any insurance coverage or any right of any
22party under this Code in effect before July 1, 1967. This
23amendatory Act of 1990 shall not be construed to terminate or
24reduce any insurance coverage or any right of any party under
25this Code in effect before its effective date.
26    (6) Failure of the motorist from whom the claimant is

 

 

09800HB5575ham001- 12 -LRB098 14733 RPM 57157 a

1legally entitled to recover damages to file the appropriate
2forms with the Safety Responsibility Section of the Department
3of Transportation within 120 days of the accident date shall
4create a rebuttable presumption that the motorist was uninsured
5at the time of the injurious occurrence.
6    (7) An insurance carrier may upon good cause require the
7insured to commence a legal action against the owner or
8operator of an uninsured motor vehicle before good faith
9negotiation with the carrier. If the action is commenced at the
10request of the insurance carrier, the carrier shall pay to the
11insured, before the action is commenced, all court costs, jury
12fees and sheriff's fees arising from the action.
13    The changes made by this amendatory Act of 1997 apply to
14all policies of insurance amended, delivered, issued, or
15renewed on and after the effective date of this amendatory Act
16of 1997.
17    (8) The changes made by this amendatory Act of the 98th
18General Assembly apply to all policies of insurance amended,
19delivered, issued, or renewed on and after the effective date
20of this amendatory Act of the 98th General Assembly.
21(Source: P.A. 98-242, eff. 1-1-14.)".