95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0917

 

Introduced 2/7/2007, by Rep. JoAnn D. Osmond

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/143a   from Ch. 73, par. 755a
215 ILCS 5/143a-2   from Ch. 73, par. 755a-2

    Amends the Illinois Insurance Code. Provides that insurers providing a commercial general liability policy that includes automobile liability for hired or non-owned vehicles are neither required to provide, nor are they prohibited from offering or making available, coverages conforming to uninsured and hit and run motor vehicle coverage required by the Code. Removes a reference to coverage on a supplemental basis. Effective immediately.


LRB095 06394 KBJ 26491 b

 

 

A BILL FOR

 

HB0917 LRB095 06394 KBJ 26491 b

1     AN ACT concerning insurance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Insurance Code is amended by
5 changing Sections 143a and 143a-2 as follows:
 
6     (215 ILCS 5/143a)  (from Ch. 73, par. 755a)
7     Sec. 143a. Uninsured and hit and run motor vehicle
8 coverage.
9     (1) No policy insuring against loss resulting from
10 liability imposed by law for bodily injury or death suffered by
11 any person arising out of the ownership, maintenance or use of
12 a motor vehicle that is designed for use on public highways and
13 that is either required to be registered in this State or is
14 principally garaged in this State shall be renewed, delivered,
15 or issued for delivery in this State unless coverage is
16 provided therein or supplemental thereto, in limits for bodily
17 injury or death set forth in Section 7-203 of the Illinois
18 Vehicle Code for the protection of persons insured thereunder
19 who are legally entitled to recover damages from owners or
20 operators of uninsured motor vehicles and hit-and-run motor
21 vehicles because of bodily injury, sickness or disease,
22 including death, resulting therefrom. Insurers providing a
23 commercial general liability policy that includes automobile

 

 

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1 liability for hired or non-owned vehicles are neither required
2 to provide, nor are they prohibited from offering or making
3 available, coverages conforming to this Section. Uninsured
4 motor vehicle coverage does not apply to bodily injury,
5 sickness, disease, or death resulting therefrom, of an insured
6 while occupying a motor vehicle owned by, or furnished or
7 available for the regular use of the insured, a resident spouse
8 or resident relative, if that motor vehicle is not described in
9 the policy under which a claim is made or is not a newly
10 acquired or replacement motor vehicle covered under the terms
11 of the policy. The limits for any coverage for any vehicle
12 under the policy may not be aggregated with the limits for any
13 similar coverage, whether provided by the same insurer or
14 another insurer, applying to other motor vehicles, for purposes
15 of determining the total limit of insurance coverage available
16 for bodily injury or death suffered by a person in any one
17 accident. No policy shall be renewed, delivered, or issued for
18 delivery in this State unless it is provided therein that any
19 dispute with respect to the coverage and the amount of damages
20 shall be submitted for arbitration to the American Arbitration
21 Association and be subject to its rules for the conduct of
22 arbitration hearings as to all matters except medical opinions.
23 As to medical opinions, if the amount of damages being sought
24 is equal to or less than the amount provided for in Section
25 7-203 of the Illinois Vehicle Code, then the current American
26 Arbitration Association Rules shall apply. If the amount being

 

 

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1 sought in an American Arbitration Association case exceeds that
2 amount as set forth in Section 7-203 of the Illinois Vehicle
3 Code, then the Rules of Evidence that apply in the circuit
4 court for placing medical opinions into evidence shall govern.
5 Alternatively, disputes with respect to damages and the
6 coverage shall be determined in the following manner: Upon the
7 insured requesting arbitration, each party to the dispute shall
8 select an arbitrator and the 2 arbitrators so named shall
9 select a third arbitrator. If such arbitrators are not selected
10 within 45 days from such request, either party may request that
11 the arbitration be submitted to the American Arbitration
12 Association. Any decision made by the arbitrators shall be
13 binding for the amount of damages not exceeding $50,000 for
14 bodily injury to or death of any one person, $100,000 for
15 bodily injury to or death of 2 or more persons in any one motor
16 vehicle accident, or the corresponding policy limits for bodily
17 injury or death, whichever is less. All 3-person arbitration
18 cases proceeding in accordance with any uninsured motorist
19 coverage conducted in this State in which the claimant is only
20 seeking monetary damages up to the limits set forth in Section
21 7-203 of the Illinois Vehicle Code shall be subject to the
22 following rules:
23         (A) If at least 60 days' written notice of the
24     intention to offer the following documents in evidence is
25     given to every other party, accompanied by a copy of the
26     document, a party may offer in evidence, without foundation

 

 

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1     or other proof:
2             (1) bills, records, and reports of hospitals,
3         doctors, dentists, registered nurses, licensed
4         practical nurses, physical therapists, and other
5         healthcare providers;
6             (2) bills for drugs, medical appliances, and
7         prostheses;
8             (3) property repair bills or estimates, when
9         identified and itemized setting forth the charges for
10         labor and material used or proposed for use in the
11         repair of the property;
12             (4) a report of the rate of earnings and time lost
13         from work or lost compensation prepared by an employer;
14             (5) the written opinion of an opinion witness, the
15         deposition of a witness, and the statement of a witness
16         that the witness would be allowed to express if
17         testifying in person, if the opinion or statement is
18         made by affidavit or by certification as provided in
19         Section 1-109 of the Code of Civil Procedure;
20             (6) any other document not specifically covered by
21         any of the foregoing provisions that is otherwise
22         admissible under the rules of evidence.
23         Any party receiving a notice under this paragraph (A)
24     may apply to the arbitrator or panel of arbitrators, as the
25     case may be, for the issuance of a subpoena directed to the
26     author or maker or custodian of the document that is the

 

 

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1     subject of the notice, requiring the person subpoenaed to
2     produce copies of any additional documents as may be
3     related to the subject matter of the document that is the
4     subject of the notice. Any such subpoena shall be issued in
5     substantially similar form and served by notice as provided
6     by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
7     shall be returnable not less than 5 days before the
8     arbitration hearing.
9         (B) Notwithstanding the provisions of Supreme Court
10     Rule 213(g), a party who proposes to use a written opinion
11     of an expert or opinion witness or the testimony of an
12     expert or opinion witness at the hearing may do so provided
13     a written notice of that intention is given to every other
14     party not less than 60 days prior to the date of hearing,
15     accompanied by a statement containing the identity of the
16     witness, his or her qualifications, the subject matter, the
17     basis of the witness's conclusions, and his or her opinion.
18         (C) Any other party may subpoena the author or maker of
19     a document admissible under this subsection, at that
20     party's expense, and examine the author or maker as if
21     under cross-examination. The provisions of Section 2-1101
22     of the Code of Civil Procedure shall be applicable to
23     arbitration hearings, and it shall be the duty of a party
24     requesting the subpoena to modify the form to show that the
25     appearance is set before an arbitration panel and to give
26     the time and place set for the hearing.

 

 

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1         (D) The provisions of Section 2-1102 of the Code of
2     Civil Procedure shall be applicable to arbitration
3     hearings under this subsection.
4     (2) No policy insuring against loss resulting from
5 liability imposed by law for property damage arising out of the
6 ownership, maintenance, or use of a motor vehicle shall be
7 renewed, delivered, or issued for delivery in this State with
8 respect to any private passenger or recreational motor vehicle
9 that is designed for use on public highways and that is either
10 required to be registered in this State or is principally
11 garaged in this State and is not covered by collision insurance
12 under the provisions of such policy, unless coverage is made
13 available in the amount of the actual cash value of the motor
14 vehicle described in the policy or $15,000 whichever is less,
15 subject to a $250 deductible, for the protection of persons
16 insured thereunder who are legally entitled to recover damages
17 from owners or operators of uninsured motor vehicles and
18 hit-and-run motor vehicles because of property damage to the
19 motor vehicle described in the policy.
20     There shall be no liability imposed under the uninsured
21 motorist property damage coverage required by this subsection
22 if the owner or operator of the at-fault uninsured motor
23 vehicle or hit-and-run motor vehicle cannot be identified. This
24 subsection shall not apply to any policy which does not provide
25 primary motor vehicle liability insurance for liabilities
26 arising from the maintenance, operation, or use of a

 

 

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1 specifically insured motor vehicle.
2     Each insurance company providing motor vehicle property
3 damage liability insurance shall advise applicants of the
4 availability of uninsured motor vehicle property damage
5 coverage, the premium therefor, and provide a brief description
6 of the coverage. Each insurer, with respect to the initial
7 renewal, reinstatement, or reissuance of a policy of motor
8 vehicle property damage liability insurance shall provide
9 present policyholders with the same information in writing.
10 That information need be given only once and shall not be
11 required in any subsequent renewal, reinstatement or
12 reissuance, substitute, amended, replacement or supplementary
13 policy. No written rejection shall be required, and the absence
14 of a premium payment for uninsured motor vehicle property
15 damage shall constitute conclusive proof that the applicant or
16 policyholder has elected not to accept uninsured motorist
17 property damage coverage.
18     An insurance company issuing uninsured motor vehicle
19 property damage coverage may provide that:
20         (i) Property damage losses recoverable thereunder
21     shall be limited to damages caused by the actual physical
22     contact of an uninsured motor vehicle with the insured
23     motor vehicle.
24         (ii) There shall be no coverage for loss of use of the
25     insured motor vehicle and no coverage for loss or damage to
26     personal property located in the insured motor vehicle.

 

 

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1         (iii) Any claim submitted shall include the name and
2     address of the owner of the at-fault uninsured motor
3     vehicle, or a registration number and description of the
4     vehicle, or any other available information to establish
5     that there is no applicable motor vehicle property damage
6     liability insurance.
7      Any dispute with respect to the coverage and the amount of
8 damages shall be submitted for arbitration to the American
9 Arbitration Association and be subject to its rules for the
10 conduct of arbitration hearings or for determination in the
11 following manner: Upon the insured requesting arbitration,
12 each party to the dispute shall select an arbitrator and the 2
13 arbitrators so named shall select a third arbitrator. If such
14 arbitrators are not selected within 45 days from such request,
15 either party may request that the arbitration be submitted to
16 the American Arbitration Association. Any arbitration
17 proceeding under this subsection seeking recovery for property
18 damages shall be subject to the following rules:
19         (A) If at least 60 days' written notice of the
20     intention to offer the following documents in evidence is
21     given to every other party, accompanied by a copy of the
22     document, a party may offer in evidence, without foundation
23     or other proof:
24             (1) property repair bills or estimates, when
25         identified and itemized setting forth the charges for
26         labor and material used or proposed for use in the

 

 

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1         repair of the property;
2             (2) the written opinion of an opinion witness, the
3         deposition of a witness, and the statement of a witness
4         that the witness would be allowed to express if
5         testifying in person, if the opinion or statement is
6         made by affidavit or by certification as provided in
7         Section 1-109 of the Code of Civil Procedure;
8             (3) any other document not specifically covered by
9         any of the foregoing provisions that is otherwise
10         admissible under the rules of evidence.
11         Any party receiving a notice under this paragraph (A)
12     may apply to the arbitrator or panel of arbitrators, as the
13     case may be, for the issuance of a subpoena directed to the
14     author or maker or custodian of the document that is the
15     subject of the notice, requiring the person subpoenaed to
16     produce copies of any additional documents as may be
17     related to the subject matter of the document that is the
18     subject of the notice. Any such subpoena shall be issued in
19     substantially similar form and served by notice as provided
20     by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
21     shall be returnable not less than 5 days before the
22     arbitration hearing.
23         (B) Notwithstanding the provisions of Supreme Court
24     Rule 213(g), a party who proposes to use a written opinion
25     of an expert or opinion witness or the testimony of an
26     expert or opinion witness at the hearing may do so provided

 

 

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1     a written notice of that intention is given to every other
2     party not less than 60 days prior to the date of hearing,
3     accompanied by a statement containing the identity of the
4     witness, his or her qualifications, the subject matter, the
5     basis of the witness's conclusions, and his or her opinion.
6         (C) Any other party may subpoena the author or maker of
7     a document admissible under this subsection, at that
8     party's expense, and examine the author or maker as if
9     under cross-examination. The provisions of Section 2-1101
10     of the Code of Civil Procedure shall be applicable to
11     arbitration hearings, and it shall be the duty of a party
12     requesting the subpoena to modify the form to show that the
13     appearance is set before an arbitration panel and to give
14     the time and place set for the hearing.
15         (D) The provisions of Section 2-1102 of the Code of
16     Civil Procedure shall be applicable to arbitration
17     hearings under this subsection.
18     (3) For the purpose of the coverage the term "uninsured
19 motor vehicle" includes, subject to the terms and conditions of
20 the coverage, a motor vehicle where on, before or after the
21 accident date the liability insurer thereof is unable to make
22 payment with respect to the legal liability of its insured
23 within the limits specified in the policy because of the entry
24 by a court of competent jurisdiction of an order of
25 rehabilitation or liquidation by reason of insolvency on or
26 after the accident date. An insurer's extension of coverage, as

 

 

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1 provided in this subsection, shall be applicable to all
2 accidents occurring after July 1, 1967 during a policy period
3 in which its insured's uninsured motor vehicle coverage is in
4 effect. Nothing in this Section may be construed to prevent any
5 insurer from extending coverage under terms and conditions more
6 favorable to its insureds than is required by this Section.
7     (4) In the event of payment to any person under the
8 coverage required by this Section and subject to the terms and
9 conditions of the coverage, the insurer making the payment
10 shall, to the extent thereof, be entitled to the proceeds of
11 any settlement or judgment resulting from the exercise of any
12 rights of recovery of the person against any person or
13 organization legally responsible for the property damage,
14 bodily injury or death for which the payment is made, including
15 the proceeds recoverable from the assets of the insolvent
16 insurer. With respect to payments made by reason of the
17 coverage described in subsection (3), the insurer making such
18 payment shall not be entitled to any right of recovery against
19 the tort-feasor in excess of the proceeds recovered from the
20 assets of the insolvent insurer of the tort-feasor.
21     (5) This amendatory Act of 1967 shall not be construed to
22 terminate or reduce any insurance coverage or any right of any
23 party under this Code in effect before July 1, 1967. This
24 amendatory Act of 1990 shall not be construed to terminate or
25 reduce any insurance coverage or any right of any party under
26 this Code in effect before its effective date.

 

 

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1     (6) Failure of the motorist from whom the claimant is
2 legally entitled to recover damages to file the appropriate
3 forms with the Safety Responsibility Section of the Department
4 of Transportation within 120 days of the accident date shall
5 create a rebuttable presumption that the motorist was uninsured
6 at the time of the injurious occurrence.
7     (7) An insurance carrier may upon good cause require the
8 insured to commence a legal action against the owner or
9 operator of an uninsured motor vehicle before good faith
10 negotiation with the carrier. If the action is commenced at the
11 request of the insurance carrier, the carrier shall pay to the
12 insured, before the action is commenced, all court costs, jury
13 fees and sheriff's fees arising from the action.
14     The changes made by this amendatory Act of 1997 apply to
15 all policies of insurance amended, delivered, issued, or
16 renewed on and after the effective date of this amendatory Act
17 of 1997.
18 (Source: P.A. 93-485, eff. 1-1-04.)
 
19     (215 ILCS 5/143a-2)  (from Ch. 73, par. 755a-2)
20     Sec. 143a-2. (1) Additional uninsured motor vehicle
21 coverage. No policy insuring against loss resulting from
22 liability imposed by law for bodily injury or death suffered by
23 any person arising out of the ownership, maintenance or use of
24 a motor vehicle shall be renewed or delivered or issued for
25 delivery in this State with respect to any motor vehicle

 

 

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1 designed for use on public highways and required to be
2 registered in this State unless uninsured motorist coverage as
3 required in Section 143a of this Code is included in an amount
4 equal to the insured's bodily injury liability limits unless
5 specifically rejected by the insured as provided in subsection
6 paragraph (2) of this Section. Each insurance company providing
7 the coverage must provide applicants with a brief description
8 of the coverage and advise them of their right to reject the
9 coverage in excess of the limits set forth in Section 7-203 of
10 The Illinois Vehicle Code. The provisions of this amendatory
11 Act of 1990 apply to policies of insurance applied for after
12 June 30, 1991.
13     (2) Right of rejection of additional uninsured motorist
14 coverage. Any named insured or applicant may reject additional
15 uninsured motorist coverage in excess of the limits set forth
16 in Section 7-203 of the Illinois Vehicle Code by making a
17 written request for limits of uninsured motorist coverage which
18 are less than bodily injury liability limits or a written
19 rejection of limits in excess of those required by law. This
20 election or rejection shall be binding on all persons insured
21 under the policy. In those cases where the insured has elected
22 to purchase limits of uninsured motorist coverage which are
23 less than bodily injury liability limits or to reject limits in
24 excess of those required by law, the insurer need not provide
25 in any renewal, reinstatement, reissuance, substitute,
26 amended, replacement or supplementary policy, coverage in

 

 

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1 excess of that elected by the insured in connection with a
2 policy previously issued to such insured by the same insurer
3 unless the insured subsequently makes a written request for
4 such coverage.
5     (3) The original document indicating the applicant's
6 selection of uninsured motorist coverage limits shall
7 constitute sufficient evidence of the applicant's selection of
8 uninsured motorist coverage limits. For purposes of this
9 Section any reproduction of the document by means of
10 photograph, photostat, microfiche, computerized optical
11 imaging process, or other similar process or means of
12 reproduction shall be deemed the equivalent of the original
13 document.
14     (4) For the purpose of this Code the term "underinsured
15 motor vehicle" means a motor vehicle whose ownership,
16 maintenance or use has resulted in bodily injury or death of
17 the insured, as defined in the policy, and for which the sum of
18 the limits of liability under all bodily injury liability
19 insurance policies or under bonds or other security required to
20 be maintained under Illinois law applicable to the driver or to
21 the person or organization legally responsible for such vehicle
22 and applicable to the vehicle, is less than the limits for
23 underinsured coverage provided the insured as defined in the
24 policy at the time of the accident. The limits of liability for
25 an insurer providing underinsured motorist coverage shall be
26 the limits of such coverage, less those amounts actually

 

 

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1 recovered under the applicable bodily injury insurance
2 policies, bonds or other security maintained on the
3 underinsured motor vehicle.
4      On or after July 1, 1983, no policy insuring against loss
5 resulting from liability imposed by law for bodily injury or
6 death suffered by any person arising out of the ownership,
7 maintenance or use of a motor vehicle shall be renewed or
8 delivered or issued for delivery in this State with respect to
9 any motor vehicle designed for use on public highways and
10 required to be registered in this State unless underinsured
11 motorist coverage is included in such policy in an amount equal
12 to the total amount of uninsured motorist coverage provided in
13 that policy where such uninsured motorist coverage exceeds the
14 limits set forth in Section 7-203 of the Illinois Vehicle Code.
15     The changes made to this subsection (4) by this amendatory
16 Act of the 93rd General Assembly apply to policies issued or
17 renewed on or after December 1, 2004.
18     (5) Scope. Nothing herein shall prohibit an insurer from
19 setting forth policy terms and conditions which provide that if
20 the insured has coverage available under this Section under
21 more than one policy or provision of coverage, any recovery or
22 benefits may be equal to, but may not exceed, the higher of the
23 applicable limits of the respective coverage, and the limits of
24 liability under this Section shall not be increased because of
25 multiple motor vehicles covered under the same policy of
26 insurance. Insurers providing liability coverage on an excess

 

 

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1 or umbrella basis are neither required to provide, nor are they
2 prohibited from offering or making available, coverages
3 conforming to this Section on a supplemental basis.
4 Notwithstanding the provisions of this Section, an insurer
5 shall not be prohibited from solely providing a combination of
6 uninsured and underinsured motorist coverages where the limits
7 of liability under each coverage is in the same amount.
8 Insurers providing a commercial general liability policy that
9 includes automobile liability for hired or non-owned vehicles
10 are neither required to provide, nor are they prohibited from
11 offering or making available, coverages conforming to this
12 Section.
13     (6) Subrogation against underinsured motorists. No insurer
14 shall exercise any right of subrogation under a policy
15 providing additional uninsured motorist coverage against an
16 underinsured motorist where the insurer has been provided with
17 written notice in advance of a settlement between its insured
18 and the underinsured motorist and the insurer fails to advance
19 a payment to the insured, in an amount equal to the tentative
20 settlement, within 30 days following receipt of such notice.
21     (7) A policy which provides underinsured motor vehicle
22 coverage may include a clause which denies payment until the
23 limits of liability or portion thereof under all bodily injury
24 liability insurance policies applicable to the underinsured
25 motor vehicle and its operators have been partially or fully
26 exhausted by payment of judgment or settlement. A judgment or

 

 

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1 settlement of the bodily injury claim in an amount less than
2 the limits of liability of the bodily injury coverages
3 applicable to the claim shall not preclude the claimant from
4 making an underinsured motorist claim against the underinsured
5 motorist coverage. Any such provision in a policy of insurance
6 shall be inapplicable if the insured, or the legal
7 representative of the insured, and the insurer providing
8 underinsured motor vehicle coverage agree that the insured has
9 suffered bodily injury or death as the result of the negligent
10 operation, maintenance, or use of an underinsured motor vehicle
11 and, without arbitration, agree also on the amount of damages
12 that the insured is legally entitled to collect. The maximum
13 amount payable pursuant to such an underinsured motor vehicle
14 insurance settlement agreement shall not exceed the amount by
15 which the limits of the underinsured motorist coverage exceed
16 the limits of the bodily injury liability insurance of the
17 owner or operator of the underinsured motor vehicle. Any such
18 agreement shall be final as to the amount due and shall be
19 binding upon both the insured and the underinsured motorist
20 insurer regardless of the amount of any judgment, or any
21 settlement reached between any insured and the person or
22 persons responsible for the accident. No such settlement
23 agreement shall be concluded unless: (i) the insured has
24 complied with all other applicable policy terms and conditions;
25 and (ii) before the conclusion of the settlement agreement, the
26 insured has filed suit against the underinsured motor vehicle

 

 

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1 owner or operator and has not abandoned the suit, or settled
2 the suit without preserving the rights of the insurer providing
3 underinsured motor vehicle coverage in the manner described in
4 subsection paragraph (6) of this Section.
5 (Source: P.A. 93-762, eff. 7-16-04.)
 
6     Section 99. Effective date. This Act takes effect upon
7 becoming law.