Public Act 098-0927
 
HB5575 EnrolledLRB098 14733 RPM 49621 b

    AN ACT concerning insurance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Insurance Code is amended by
changing Section 143a as follows:
 
    (215 ILCS 5/143a)  (from Ch. 73, par. 755a)
    Sec. 143a. Uninsured and hit and run motor vehicle
coverage.
    (1) No policy insuring against loss resulting from
liability imposed by law for bodily injury or death suffered by
any person arising out of the ownership, maintenance or use of
a motor vehicle that is designed for use on public highways and
that is either required to be registered in this State or is
principally garaged in this State shall be renewed, delivered,
or issued for delivery in this State unless coverage is
provided therein or supplemental thereto, in limits for bodily
injury or death set forth in Section 7-203 of the Illinois
Vehicle Code for the protection of persons insured thereunder
who are legally entitled to recover damages from owners or
operators of uninsured motor vehicles and hit-and-run motor
vehicles because of bodily injury, sickness or disease,
including death, resulting therefrom. Uninsured motor vehicle
coverage does not apply to bodily injury, sickness, disease, or
death resulting therefrom, of an insured while occupying a
motor vehicle owned by, or furnished or available for the
regular use of the insured, a resident spouse or resident
relative, if that motor vehicle is not described in the policy
under which a claim is made or is not a newly acquired or
replacement motor vehicle covered under the terms of the
policy. The limits for any coverage for any vehicle under the
policy may not be aggregated with the limits for any similar
coverage, whether provided by the same insurer or another
insurer, applying to other motor vehicles, for purposes of
determining the total limit of insurance coverage available for
bodily injury or death suffered by a person in any one
accident. No policy shall be renewed, delivered, or issued for
delivery in this State unless it is provided therein that any
dispute with respect to the coverage and the amount of damages
shall be submitted for arbitration to the American Arbitration
Association and be subject to its rules for the conduct of
arbitration hearings as to all matters except medical opinions.
As to medical opinions, if the amount of damages being sought
is equal to or less than the amount provided for in Section
7-203 of the Illinois Vehicle Code, then the current American
Arbitration Association Rules shall apply. If the amount being
sought in an American Arbitration Association case exceeds that
amount as set forth in Section 7-203 of the Illinois Vehicle
Code, then the Rules of Evidence that apply in the circuit
court for placing medical opinions into evidence shall govern.
Alternatively, disputes with respect to damages and the
coverage shall be determined in the following manner: Upon the
insured requesting arbitration, each party to the dispute shall
select an arbitrator and the 2 arbitrators so named shall
select a third arbitrator. If such arbitrators are not selected
within 45 days from such request, either party may request that
the arbitration be submitted to the American Arbitration
Association. Any decision made by the arbitrators shall be
binding for the amount of damages not exceeding $75,000 $50,000
for bodily injury to or death of any one person, $150,000
$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. All
3-person arbitration cases proceeding in accordance with any
uninsured motorist coverage conducted in this State in which
the claimant is only seeking monetary damages up to the limits
set forth in Section 7-203 of the Illinois Vehicle Code shall
be subject to the following rules:
        (A) If at least 60 days' written notice of the
    intention to offer the following documents in evidence is
    given to every other party, accompanied by a copy of the
    document, a party may offer in evidence, without foundation
    or other proof:
            (1) bills, records, and reports of hospitals,
        doctors, dentists, registered nurses, licensed
        practical nurses, physical therapists, and other
        healthcare providers;
            (2) bills for drugs, medical appliances, and
        prostheses;
            (3) property repair bills or estimates, when
        identified and itemized setting forth the charges for
        labor and material used or proposed for use in the
        repair of the property;
            (4) a report of the rate of earnings and time lost
        from work or lost compensation prepared by an employer;
            (5) the written opinion of an opinion witness, the
        deposition of a witness, and the statement of a witness
        that the witness would be allowed to express if
        testifying in person, if the opinion or statement is
        made by affidavit or by certification as provided in
        Section 1-109 of the Code of Civil Procedure;
            (6) any other document not specifically covered by
        any of the foregoing provisions that is otherwise
        admissible under the rules of evidence.
        Any party receiving a notice under this paragraph (A)
    may apply to the arbitrator or panel of arbitrators, as the
    case may be, for the issuance of a subpoena directed to the
    author or maker or custodian of the document that is the
    subject of the notice, requiring the person subpoenaed to
    produce copies of any additional documents as may be
    related to the subject matter of the document that is the
    subject of the notice. Any such subpoena shall be issued in
    substantially similar form and served by notice as provided
    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
    shall be returnable not less than 5 days before the
    arbitration hearing.
        (B) Notwithstanding the provisions of Supreme Court
    Rule 213(g), a party who proposes to use a written opinion
    of an expert or opinion witness or the testimony of an
    expert or opinion witness at the hearing may do so provided
    a written notice of that intention is given to every other
    party not less than 60 days prior to the date of hearing,
    accompanied by a statement containing the identity of the
    witness, his or her qualifications, the subject matter, the
    basis of the witness's conclusions, and his or her opinion.
        (C) Any other party may subpoena the author or maker of
    a document admissible under this subsection, at that
    party's expense, and examine the author or maker as if
    under cross-examination. The provisions of Section 2-1101
    of the Code of Civil Procedure shall be applicable to
    arbitration hearings, and it shall be the duty of a party
    requesting the subpoena to modify the form to show that the
    appearance is set before an arbitration panel and to give
    the time and place set for the hearing.
        (D) The provisions of Section 2-1102 of the Code of
    Civil Procedure shall be applicable to arbitration
    hearings under this subsection.
    (2) No policy insuring against loss resulting from
liability imposed by law for property damage arising out of the
ownership, maintenance, or use of a motor vehicle shall be
renewed, delivered, or issued for delivery in this State with
respect to any private passenger or recreational motor vehicle
that is designed for use on public highways and that is either
required to be registered in this State or is principally
garaged in this State and is not covered by collision insurance
under the provisions of such policy, unless coverage is made
available in the amount of the actual cash value of the motor
vehicle described in the policy or $15,000 whichever is less,
subject to a $250 deductible, for the protection of persons
insured thereunder who are legally entitled to recover damages
from owners or operators of uninsured motor vehicles and
hit-and-run motor vehicles because of property damage to the
motor vehicle described in the policy.
    There shall be no liability imposed under the uninsured
motorist property damage coverage required by this subsection
if the owner or operator of the at-fault uninsured motor
vehicle or hit-and-run motor vehicle cannot be identified. This
subsection shall not apply to any policy which does not provide
primary motor vehicle liability insurance for liabilities
arising from the maintenance, operation, or use of a
specifically insured motor vehicle.
    Each insurance company providing motor vehicle property
damage liability insurance shall advise applicants of the
availability of uninsured motor vehicle property damage
coverage, the premium therefor, and provide a brief description
of the coverage. That information need be given only once and
shall not be required in any subsequent renewal, reinstatement
or reissuance, substitute, amended, replacement or
supplementary policy. No written rejection shall be required,
and the absence of a premium payment for uninsured motor
vehicle property damage shall constitute conclusive proof that
the applicant or policyholder has elected not to accept
uninsured motorist property damage coverage.
    An insurance company issuing uninsured motor vehicle
property damage coverage may provide that:
        (i) Property damage losses recoverable thereunder
    shall be limited to damages caused by the actual physical
    contact of an uninsured motor vehicle with the insured
    motor vehicle.
        (ii) There shall be no coverage for loss of use of the
    insured motor vehicle and no coverage for loss or damage to
    personal property located in the insured motor vehicle.
        (iii) Any claim submitted shall include the name and
    address of the owner of the at-fault uninsured motor
    vehicle, or a registration number and description of the
    vehicle, or any other available information to establish
    that there is no applicable motor vehicle property damage
    liability insurance.
     Any dispute with respect to the coverage and the amount of
damages shall be submitted for arbitration to the American
Arbitration Association and be subject to its rules for the
conduct of arbitration hearings or for determination in the
following manner: Upon the insured requesting arbitration,
each party to the dispute shall select an arbitrator and the 2
arbitrators so named shall select a third arbitrator. If such
arbitrators are not selected within 45 days from such request,
either party may request that the arbitration be submitted to
the American Arbitration Association. Any arbitration
proceeding under this subsection seeking recovery for property
damages shall be subject to the following rules:
        (A) If at least 60 days' written notice of the
    intention to offer the following documents in evidence is
    given to every other party, accompanied by a copy of the
    document, a party may offer in evidence, without foundation
    or other proof:
            (1) property repair bills or estimates, when
        identified and itemized setting forth the charges for
        labor and material used or proposed for use in the
        repair of the property;
            (2) the written opinion of an opinion witness, the
        deposition of a witness, and the statement of a witness
        that the witness would be allowed to express if
        testifying in person, if the opinion or statement is
        made by affidavit or by certification as provided in
        Section 1-109 of the Code of Civil Procedure;
            (3) any other document not specifically covered by
        any of the foregoing provisions that is otherwise
        admissible under the rules of evidence.
        Any party receiving a notice under this paragraph (A)
    may apply to the arbitrator or panel of arbitrators, as the
    case may be, for the issuance of a subpoena directed to the
    author or maker or custodian of the document that is the
    subject of the notice, requiring the person subpoenaed to
    produce copies of any additional documents as may be
    related to the subject matter of the document that is the
    subject of the notice. Any such subpoena shall be issued in
    substantially similar form and served by notice as provided
    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
    shall be returnable not less than 5 days before the
    arbitration hearing.
        (B) Notwithstanding the provisions of Supreme Court
    Rule 213(g), a party who proposes to use a written opinion
    of an expert or opinion witness or the testimony of an
    expert or opinion witness at the hearing may do so provided
    a written notice of that intention is given to every other
    party not less than 60 days prior to the date of hearing,
    accompanied by a statement containing the identity of the
    witness, his or her qualifications, the subject matter, the
    basis of the witness's conclusions, and his or her opinion.
        (C) Any other party may subpoena the author or maker of
    a document admissible under this subsection, at that
    party's expense, and examine the author or maker as if
    under cross-examination. The provisions of Section 2-1101
    of the Code of Civil Procedure shall be applicable to
    arbitration hearings, and it shall be the duty of a party
    requesting the subpoena to modify the form to show that the
    appearance is set before an arbitration panel and to give
    the time and place set for the hearing.
        (D) The provisions of Section 2-1102 of the Code of
    Civil Procedure shall be applicable to arbitration
    hearings under this subsection.
    (3) For the purpose of the coverage the term "uninsured
motor vehicle" includes, subject to the terms and conditions of
the coverage, a motor vehicle where on, before or after the
accident date the liability insurer thereof is unable to make
payment with respect to the legal liability of its insured
within the limits specified in the policy because of the entry
by a court of competent jurisdiction of an order of
rehabilitation or liquidation by reason of insolvency on or
after the accident date. An insurer's extension of coverage, as
provided in this subsection, shall be applicable to all
accidents occurring after July 1, 1967 during a policy period
in which its insured's uninsured motor vehicle coverage is in
effect. Nothing in this Section may be construed to prevent any
insurer from extending coverage under terms and conditions more
favorable to its insureds than is required by this Section.
    (4) In the event of payment to any person under the
coverage required by this Section and subject to the terms and
conditions of the coverage, the insurer making the payment
shall, to the extent thereof, be entitled to the proceeds of
any settlement or judgment resulting from the exercise of any
rights of recovery of the person against any person or
organization legally responsible for the property damage,
bodily injury or death for which the payment is made, including
the proceeds recoverable from the assets of the insolvent
insurer. With respect to payments made by reason of the
coverage described in subsection (3), the insurer making such
payment shall not be entitled to any right of recovery against
the tort-feasor in excess of the proceeds recovered from the
assets of the insolvent insurer of the tort-feasor.
    (5) This amendatory Act of 1967 shall not be construed to
terminate or reduce any insurance coverage or any right of any
party under this Code in effect before July 1, 1967. This
amendatory Act of 1990 shall not be construed to terminate or
reduce any insurance coverage or any right of any party under
this Code in effect before its effective date.
    (6) Failure of the motorist from whom the claimant is
legally entitled to recover damages to file the appropriate
forms with the Safety Responsibility Section of the Department
of Transportation within 120 days of the accident date shall
create a rebuttable presumption that the motorist was uninsured
at the time of the injurious occurrence.
    (7) An insurance carrier may upon good cause require the
insured to commence a legal action against the owner or
operator of an uninsured motor vehicle before good faith
negotiation with the carrier. If the action is commenced at the
request of the insurance carrier, the carrier shall pay to the
insured, before the action is commenced, all court costs, jury
fees and sheriff's fees arising from the action.
    The changes made by this amendatory Act of 1997 apply to
all policies of insurance amended, delivered, issued, or
renewed on and after the effective date of this amendatory Act
of 1997.
    (8) The changes made by this amendatory Act of the 98th
General Assembly apply to all policies of insurance amended,
delivered, issued, or renewed on and after the effective date
of this amendatory Act of the 98th General Assembly.
(Source: P.A. 98-242, eff. 1-1-14.)