103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3951

 

Introduced 2/17/2023, by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/154.9

    Amends the Illinois Insurance Code. In provisions concerning private passenger total loss claims, provides that a 30-day period within which a replacement vehicle must be purchased or leased in order for an insurer to reimburse the insured or third-party claimant for any use or occupation tax imposed by the State or a unit of local government and title and transfer fees shall be extended for the duration of a medical condition that results in the incapacitation of the insured.


LRB103 26198 BMS 52557 b

 

 

A BILL FOR

 

HB3951LRB103 26198 BMS 52557 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 154.9 as follows:
 
6    (215 ILCS 5/154.9)
7    Sec. 154.9. Payment of applicable use or occupation tax,
8title, and transfer fees on a private passenger total loss
9claim.
10    (a) When an insurer determines that an insured's or
11third-party claimant's private passenger automobile is a total
12loss that is covered under the terms of a personal automobile
13policy issued or renewed on or after July 1, 2022 by the
14insurer, the insurer shall pay any use or occupation tax
15imposed by the State or a unit of local government and title
16and transfer fees as provided for in this Section. As used in
17this Section, "private passenger vehicle" means a private
18passenger motor vehicle, station wagon, or any other 4-wheeled
19motor vehicle with a load capacity of 1,500 pounds or less that
20is not used in the occupation, profession, or business of the
21insured or third-party claimant, not used as a public or
22livery conveyance for passengers, nor rented to others.
23    (b) If the insurer elects to replace the insured vehicle,

 

 

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1the insurer shall pay any use or occupation tax imposed by the
2State or a unit of local government tax and title and transfer
3fees on the replacement vehicle.
4    (c) If a cash settlement is provided for the total loss
5private passenger vehicle, the insurer shall reimburse the
6insured or third-party claimant for any use or occupation tax
7imposed by the State or a unit of local government and title
8and transfer fees if the replacement vehicle is purchased or
9leased within 30 days after the receipt of the cash settlement
10by the insured or third-party claimant and the insured or
11third-party claimant substantiates such purchase and the
12payment of such taxes and fees by submission of appropriate
13documentation to the insurer within 33 days after the receipt
14of the settlement or receipt of the required reimbursement
15form from the insurer, whichever is later.
16        (1) With respect to leased vehicles, use or occupation
17    taxes and title and transfer fees shall be deemed to be
18    incurred by the insured or the third-party claimant at the
19    time the lease is entered into, but only if such use or
20    occupation taxes and title and transfer fees are included
21    in the cost of the lease or are paid directly by the
22    insured or third-party claimant.
23        (2) The insurer is not required to reimburse the
24    insured or third-party claimant for any use or occupation
25    taxes and title or transfer fees in excess of the amount
26    payable based on the value of the total loss vehicle at the

 

 

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1    time of the loss or for taxes and title or transfer fees
2    not actually paid by the insured or third-party claimant.
3        (3) In lieu of this reimbursement procedure, the
4    insurer may directly pay the required amount of any use or
5    occupation taxes and title and transfer fees to the
6    claimant at the time of settlement.
7        (4) If an insurer requires a particular form be used
8    to apply for reimbursement of any use or occupation taxes
9    and title or transfer fees, the form must be delivered to
10    the insured or third-party claimant at or before the time
11    of settlement.
12    (d) The 30-day period within which a replacement vehicle
13must be purchased or leased under subsection (c) shall be
14extended for the duration of a medical condition that results
15in the incapacitation of the insured.
16    (e) (d) The Department may adopt rules establishing
17uniform standards for implementation of this Section,
18including, but not limited to, prescribing the method of
19determining the market value of the insured's or third-party
20claimant's vehicle.
21(Source: P.A. 102-69, eff. 7-1-22.)