AUTO INS-RIGHT TO APPRAISAL House SponsorsRep. Tracy Katz Muhl Insurance Committee Hearing Apr 14 2026 2:00PM Stratton Building Room C-1 Springfield, IL - House Floor Amendment 1 4/14/2026HouseThird Reading - Short Debate - Passed 073-038-000 215 ILCS 5/143.13b new Amends the Illinois Insurance Code. Provides that every automobile insurance policy issued, renewed, or delivered in Illinois that includes first-party coverage for physical damage shall contain a provision granting either the insured or the insurer the right to invoke appraisal in the event of a dispute over (i) the actual cash value or amount of a loss, including repairable or total loss amounts; or (ii) the value of a settlement offer made to a third-party claimant. Sets forth provisions concerning the selection of appraisers; appointment of an umpire in the event of a disagreement between appraisers; issuance of the award following the appraisal; the binding effect of an agreement between appraisers or one appraiser and the umpire; cost allocation and consumer protections; the right of appraisal for third-party claimants; and enforcement and penalties. Creates the Automotive Appraisal Standards Advisory Board to provide guidance on rulemaking, enforcement priorities, and best practices. Sets forth membership provisions and provides that the Board shall meet no less than quarterly and may issue nonbinding recommendations to the Department of Insurance regarding updates to rules and emerging trends impacting fair claim resolution. Requires the Department to publish meeting summaries and any formal recommendations on its public website. Provides that the Department may adopt rules necessary to implement and enforce provisions concerning the right to appraisal. Effective 90 days after becoming law.House Floor Amendment No. 1 Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes. Removes provisions concerning the Automotive Appraisal Standards Advisory Board. Removes provisions concerning third-party claims. Provides that, if the appraisers fail to agree on an umpire within 15 calendar days after they failed to agree on the amount of the loss or the settlement offer, either party may petition a court (instead of a court of competent jurisdiction or request assistance from the Department of Insurance) to appoint a suitable umpire. Provides that the Department shall maintain a list of competent and disinterested umpires and shall furnish that list to any party that requests the list. Provides that, if an umpire is selected pursuant to the provisions, a final award shall be determined within 5 calendar days after the umpire was selected. Removes a provision requiring the insurer to pay all appraisal and umpire fees if the final appraisal award is 10% or more favorable to the policyholder compared to the insurer's last written offer prior to appraisal. Provides that any insurer in Illinois that fails to comply with the appraisal provisions of the amendatory Act, including any refusal to participate in the process in good faith, shall be subject to administrative penalties imposed by the Department (instead of being subject to a specified civil penalty, additional administrative penalties, and liability for reasonable attorney's fees and appraisal costs). Removes provisions concerning rulemaking. Effective 90 days after becoming law. 10/15/2025HouseFiled with the Clerk by Rep. Tracy Katz Muhl 10/15/2025HouseFirst Reading 10/15/2025HouseReferred to Rules Committee 2/24/2026HouseAssigned to Insurance Committee 3/18/2026HouseDo Pass / Short Debate Insurance Committee; 010-004-000 3/19/2026HousePlaced on Calendar 2nd Reading - Short Debate 4/8/2026HouseHouse Floor Amendment No. 1 Filed with Clerk by Rep. Tracy Katz Muhl 4/8/2026HouseHouse Floor Amendment No. 1 Referred to Rules Committee 4/8/2026HouseHouse Floor Amendment No. 1 Rules Refers to Insurance Committee 4/9/2026HouseHouse Floor Amendment No. 1 Recommends Be Adopted Insurance Committee; 010-006-000 4/10/2026HouseSecond Reading - Short Debate 4/10/2026HouseHeld on Calendar Order of Second Reading - Short Debate 4/14/2026HouseHouse Floor Amendment No. 1 Adopted 4/14/2026HousePlaced on Calendar Order of 3rd Reading - Short Debate 4/14/2026HouseThird Reading - Short Debate - Passed 073-038-000