Consumer Protection Committee
Filed: 3/11/2008
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1 | AMENDMENT TO HOUSE BILL 5314
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2 | AMENDMENT NO. ______. Amend House Bill 5314 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Vehicle Code is amended by | ||||||
5 | changing Section 6-305.2 as follows:
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6 | (625 ILCS 5/6-305.2)
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7 | Sec. 6-305.2. Limited liability for damage.
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8 | (a) Damage to private
passenger vehicle. A person who rents | ||||||
9 | a motor vehicle to another may hold
the renter liable to the | ||||||
10 | extent permitted under subsections (b) through (d) for
physical | ||||||
11 | or mechanical damage to the rented motor vehicle that occurs | ||||||
12 | during
the time the motor vehicle is under the rental | ||||||
13 | agreement.
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14 | (b) Limits on liability. The total liability of a renter | ||||||
15 | under subsection
(a) for damage to a motor vehicle may not | ||||||
16 | exceed all of the following:
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1 | (1) The lesser of:
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2 | (A) Actual and reasonable costs that the person who | ||||||
3 | rents a motor
vehicle to another incurred to repair the | ||||||
4 | motor vehicle or that the rental
company would have | ||||||
5 | incurred if the motor vehicle had been
repaired, which | ||||||
6 | shall reflect any discounts, price reductions, or | ||||||
7 | adjustments
available to the rental company; or
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8 | (B) The fair market value of that motor vehicle | ||||||
9 | immediately before the
damage occurred, as determined | ||||||
10 | in the customary market for the retail sale of
that | ||||||
11 | motor vehicle; and
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12 | (2) Actual and reasonable costs incurred by the loss | ||||||
13 | due to theft of the
rental motor vehicle up to its fair | ||||||
14 | market value immediately before the loss occurred using a | ||||||
15 | commonly and commercially accepted method to establish a | ||||||
16 | fair market value $2,000; provided, however, that if it is
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17 | established that the renter or an authorized driver failed | ||||||
18 | to exercise ordinary
care while in possession of the | ||||||
19 | vehicle or that the renter or an authorized
driver | ||||||
20 | committed or aided and abetted the commission of the theft, | ||||||
21 | then the
damages shall be the actual and reasonable costs | ||||||
22 | of the rental vehicle up to
its fair market value, as | ||||||
23 | determined by the customary market for the sale of
that | ||||||
24 | vehicle .
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25 | For purposes of this subsection (b), for the period prior | ||||||
26 | to June 1, 1998,
the
maximum amount that may be recovered from |
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1 | an authorized driver shall not exceed
$6,000; for the period | ||||||
2 | beginning June 1, 1998 through May 31, 1999, the maximum
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3 | recovery shall not exceed $7,500; and for the period beginning | ||||||
4 | June 1, 1999
through May 31, 2000, the maximum recovery shall | ||||||
5 | not exceed $9,000. Beginning
June
1, 2000,
and annually each | ||||||
6 | June 1 thereafter, the maximum amount that may be recovered
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7 | from an authorized driver shall be increased by $500 above the | ||||||
8 | maximum recovery
allowed immediately prior to June 1 of that | ||||||
9 | year.
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10 | (c) Multiple recoveries prohibited. Any person who rents a | ||||||
11 | motor
vehicle to another may not hold the renter liable for any | ||||||
12 | amounts that the
rental company recovers from any other party.
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13 | (d) Repair estimates. A person who rents a motor vehicle to | ||||||
14 | another may
not collect or attempt to collect the amount | ||||||
15 | described in subsection (b) unless
the rental company obtains | ||||||
16 | an estimate from a repair company or an appraiser in
the | ||||||
17 | business of providing such appraisals on the costs of repairing | ||||||
18 | the motor
vehicle, makes a copy of the estimate available upon | ||||||
19 | request to the renter who
may be liable under subsection (a), | ||||||
20 | and or the insurer of the renter, if known by the rental | ||||||
21 | company, and submits a
copy of the estimate with any claim to | ||||||
22 | collect the amount described in
subsection (b). If the estimate | ||||||
23 | of repair exceeds $3,500, then, prior to any repairs being | ||||||
24 | initiated, the insurer of the renter or the renter shall be | ||||||
25 | allowed 72 hours from the date of notice to inspect the damaged | ||||||
26 | vehicle and obtain another estimate of repair on the damaged |
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1 | vehicle.
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2 | (e) Duty to mitigate. A claim against a renter resulting | ||||||
3 | from damage or
loss to a rental vehicle must be reasonably and | ||||||
4 | rationally related to the
actual loss incurred. A rental | ||||||
5 | company shall mitigate damages where possible
and shall not | ||||||
6 | assert or collect any claim for physical damage which exceeds | ||||||
7 | the
actual costs of the repair, including all discounts or | ||||||
8 | price reductions.
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9 | (f) No rental company shall require a deposit or an advance | ||||||
10 | charge
against
the credit card of a renter, in any form, for | ||||||
11 | damages to a vehicle which is in
the renter's possession, | ||||||
12 | custody, or control. No rental company shall require
any | ||||||
13 | payment for damage to the rental vehicle, upon the renter's | ||||||
14 | return of the
vehicle in a
damaged condition, until after the | ||||||
15 | cost of the damage to the vehicle and
liability therefor is | ||||||
16 | agreed to between the rental company and renter or is
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17 | determined pursuant to law.
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18 | (g) If insurance coverage exists under the renter's | ||||||
19 | personal insurance
policy and the coverage is confirmed during | ||||||
20 | regular business hours, the renter
may require that the rental
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21 | company must submit any claims to the renter's personal | ||||||
22 | insurance carrier as
the renter's agent. The rental company | ||||||
23 | shall not make any written or oral
representations that it will | ||||||
24 | not present claims or negotiate with the renter's
insurance | ||||||
25 | carrier. For purposes of this Section, confirmation of coverage
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26 | includes telephone confirmation from insurance company |
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1 | representatives during
regular business hours. After
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2 | confirmation of coverage, the amount of claim shall be resolved | ||||||
3 | between the
insurance carrier and the rental company.
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4 | (Source: P.A. 90-113, eff. 7-14-97.)
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5 | Section 99. Effective date. This Act takes effect July 1, | ||||||
6 | 2008.".
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