State of Illinois
90th General Assembly

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]

[ House Amendment 001 ]


      215 ILCS 5/143.30         from Ch. 73, par. 755.30
      215 ILCS 5/154.6          from Ch. 73, par. 766.6
          Amends  the  Illinois  Insurance  Code.    Prohibits   an
      insurance   company   from  requiring  (during  the  year  of
      manufacture of a motor vehicle or the 2 succeeding years) the
      use  of  crash  parts  not  manufactured  by   or   for   the
      manufacturer of the motor vehicle.  Prohibits restrictions on
      the  choice  of  an  auto  body  repair  facility.  Effective
 1        AN ACT to amend the Illinois Insurance Code  by  changing
 2    Sections 143.30 and 154.6.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Illinois Insurance  Code  is  amended  by
 6    changing Sections 143.30 and 154.6 as follows:
 7        (215 ILCS 5/143.30) (from Ch. 73, par. 755.30)
 8        Sec.  143.30.  Selection  of  glass  replacement or glass
 9    repair  companies,  crash  parts,  and   auto   repair   body
10    facilities.
11        (a)  With   reference   to  every  policy  of  automobile
12    insurance as defined in Section 143.13(a):
13             (1)(a)  An  automobile  insurer  authorized  to   do
14        business  in  this  State shall not unreasonably restrict
15        access  to  automobile  glass   repair   or   replacement
16        facilities   or   auto  body  repair  facilities  by  its
17        policyholders.
18             (2)(b)  An automobile  insurer  may  enter  into  an
19        agreement  or  agreements with automobile glass repair or
20        replacement facilities for the purpose of containing  the
21        cost of automobile glass repair or replacement claims and
22        with  auto  body  repair  facilities  for  the purpose of
23        containing the cost of repair claims.
24             (3)(c)  An insurer, or  a  producer  acting  on  its
25        behalf, shall disclose to an insured, either orally or in
26        writing, that the insured may freely choose an automobile
27        glass  repair  or  replacement  facility  or an auto body
28        repair facility.
29             (4)(d)  No  such  insurance  company,  producer,  or
30        adjuster  may  engage  in  any   act   or   practice   of
31        intimidation,  coercion,  or  threat  against any insured
                            -2-                LRB9002302JSmg
 1        person to use a particular  facility  to  provide  repair
 2        such services, glass replacement, or crash parts.
 3             (5)(e)  If  a  policyholder  selects  an  automobile
 4        glass  repair or replacement facility or auto body repair
 5        facility,  the  insurer  shall  provide  payment  to  the
 6        facility based on a competitive price, as established  by
 7        that  insurer  through competitive bids or market surveys
 8        to determine a  fair  and  reasonable  market  price  for
 9        similar  services.  Reasonable deviation from this market
10        price is allowed based on the facts in each case.
11        (b)  For a motor vehicle requiring repair by an auto body
12    repair facility in the year of its manufacture or  in  the  2
13    succeeding  years,  an  auto  body  repair  facility must use
14    genuine crash parts sufficient to maintain the manufacturer's
15    warranty for fit,  finish,  structural  integrity,  corrosion
16    resistance, dent resistance, and crash performance unless the
17    motor vehicle owner consents in writing at the time of repair
18    to  the use of aftermarket crash parts.  An insurance company
19    may not require the  use  of  aftermarket  crash  parts  when
20    negotiating  repairs  of  a  motor  vehicle with an auto body
21    repair  facility  during  the  year  the  motor  vehicle  was
22    manufactured and the 2  succeeding  years  unless  the  motor
23    vehicle  owner  consents  in writing at or before the time of
24    the negotiation to the use of aftermarket crash parts.
25        (c)  As used  in  this  Section,  "crash  part"  means  a
26    replacement  for  any  of  the  nonmechanical  sheet metal or
27    plastic parts that generally constitute  the  exterior  of  a
28    motor vehicle and "aftermarket crash part" means a crash part
29    not made for or by the manufacturer of the motor vehicle.
30    (Source: P.A. 87-1110.)
31        (215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
32        Sec. 154.6.  Acts constituting improper claims practice.)
33    Any  of the following acts by a company, if committed without
                            -3-                LRB9002302JSmg
 1    just cause and in violation of Section 154.5, constitutes  an
 2    improper claims practice:
 3        (a)  Knowingly  misrepresenting to claimants and insureds
 4    relevant facts or policy provisions relating to coverages  at
 5    issue;
 6        (b)  Failing  to  acknowledge  with reasonable promptness
 7    pertinent communications with respect to claims arising under
 8    its policies;
 9        (c)  Failing to adopt and implement reasonable  standards
10    for  the  prompt  investigations  and  settlement  of  claims
11    arising under its policies;
12        (d)  Not  attempting  in good faith to effectuate prompt,
13    fair and equitable settlement of claims  submitted  in  which
14    liability has become reasonably clear;
15        (e)  Compelling   policyholders  to  institute  suits  to
16    recover  amounts  due  under   its   policies   by   offering
17    substantially  less  than the amounts ultimately recovered in
18    suits brought by them;
19        (f)  Engaging   in   activity   which   results   in    a
20    disproportionate number of meritorious complaints against the
21    insurer received by the Insurance Department;
22        (g)  Engaging    in   activity   which   results   in   a
23    disproportionate number of lawsuits to be filed  against  the
24    insurer or its insureds by claimants;
25        (h)  Refusing   to   pay   claims  without  conducting  a
26    reasonable investigation based on all available information;
27        (i)  Failing to affirm or deny coverage of claims  within
28    a  reasonable  time  after proof of loss statements have been
29    completed;
30        (j)  Attempting to settle  a  claim  for  less  than  the
31    amount  to  which  a  reasonable  person  would  believe  the
32    claimant  was  entitled,  by  reference to written or printed
33    advertising  material  accompanying  or  made  part   of   an
34    application;
                            -4-                LRB9002302JSmg
 1        (k)  Attempting  to  settle  claims  on  the  basis of an
 2    application which was altered without notice to, or knowledge
 3    or consent of, the insured;
 4        (l)  Making  a  claims  payment  to  a  policyholder   or
 5    beneficiary omitting the coverage under which each payment is
 6    being made;
 7        (m)  Delaying  the  investigation or payment of claims by
 8    requiring an insured, a claimant, or the physicians of either
 9    to submit a  preliminary  claim  report  and  then  requiring
10    subsequent   submission   of  formal  proof  of  loss  forms,
11    resulting in the duplication of verification;
12        (n)  Failing in the case of the denial of a claim or  the
13    offer  of  a  compromise  settlement  to  promptly  provide a
14    reasonable and accurate  explanation  of  the  basis  in  the
15    insurance  policy  or  applicable  law  for  such  denial  or
16    compromise settlement;
17        (o)  Failing to provide forms necessary to present claims
18    within 15 working days of a request with such explanations as
19    are necessary to use them effectively;
20        (p)  Failing  to adopt and implement reasonable standards
21    to verify that a repairer designated by the insurance company
22    to provide an estimate, perform repairs,  or  engage  in  any
23    other service in connection with an insured loss on a vehicle
24    is  duly licensed under Section 5-301 of the Illinois Vehicle
25    Code;
26        (q)  Failing  to  provide  as  a  persistent  tendency  a
27    notification on any written estimate prepared by an insurance
28    company in connection with an insured loss that Illinois  law
29    requires   that   vehicle   repairers  must  be  licensed  in
30    accordance with Section 5-301 of the Illinois Vehicle Code;
31        (r)  Failing to comply with  the  provisions  of  Section
32    143.30  regarding  the choice of an auto body repair facility
33    and the use of crash parts;
34        (s)(r)  Engaging in any other acts which are in substance
                            -5-                LRB9002302JSmg
 1    equivalent to any of the foregoing.
 2    (Source: P.A. 84-1308.)
 3        Section 99.  Effective date.  This Act takes effect  upon
 4    becoming law.

[ Top ]