Full Text of HB5209 093rd General Assembly
HB5209 93RD GENERAL ASSEMBLY
|
|
|
93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB5209
Introduced 02/06/04, by Lovana Jones SYNOPSIS AS INTRODUCED: |
|
|
Amends the Illinois Vehicle Code. Makes a technical change in a provision concerning rental vehicles.
|
| |
|
|
A BILL FOR
|
|
|
|
|
HB5209 |
|
LRB093 18888 DRH 44623 b |
|
| 1 |
| AN ACT concerning transportation.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Illinois Vehicle Code is amended by changing | 5 |
| Section 6-305.2 as follows:
| 6 |
| (625 ILCS 5/6-305.2)
| 7 |
| Sec. 6-305.2. Limited liability for damage.
| 8 |
| (a) Damage to private
passenger vehicle. A person who rents | 9 |
| a motor vehicle to another person may hold
the renter liable to | 10 |
| the extent permitted under subsections (b) through (d) for
| 11 |
| physical or mechanical damage to the rented motor vehicle that | 12 |
| occurs during
the time the motor vehicle is under the rental | 13 |
| agreement.
| 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:
| 17 |
| (1) The lesser of:
| 18 |
| (A) Actual and reasonable costs that the person who | 19 |
| rents a motor
vehicle to another incurred to repair the | 20 |
| motor vehicle or that the rental
company would have | 21 |
| incurred if the motor vehicle had been
repaired, which | 22 |
| shall reflect any discounts, price reductions, or | 23 |
| adjustments
available to the rental company; or
| 24 |
| (B) The fair market value of that motor vehicle | 25 |
| immediately before the
damage occurred, as determined | 26 |
| in the customary market for the retail sale of
that | 27 |
| motor vehicle; and
| 28 |
| (2) Actual and reasonable costs incurred by the loss | 29 |
| due to theft of the
rental motor vehicle up to $2,000; | 30 |
| provided, however, that if it is
established that the | 31 |
| renter or an authorized driver failed to exercise ordinary
| 32 |
| care while in possession of the vehicle or that the renter |
|
|
|
HB5209 |
- 2 - |
LRB093 18888 DRH 44623 b |
|
| 1 |
| or an authorized
driver committed or aided and abetted the | 2 |
| commission of the theft, then the
damages shall be the | 3 |
| actual and reasonable costs of the rental vehicle up to
its | 4 |
| fair market value, as determined by the customary market | 5 |
| for the sale of
that vehicle.
| 6 |
| For purposes of this subsection (b), for the period prior | 7 |
| to June 1, 1998,
the
maximum amount that may be recovered from | 8 |
| an authorized driver shall not exceed
$6,000; for the period | 9 |
| beginning June 1, 1998 through May 31, 1999, the maximum
| 10 |
| recovery shall not exceed $7,500; and for the period beginning | 11 |
| June 1, 1999
through May 31, 2000, the maximum recovery shall | 12 |
| not exceed $9,000. Beginning
June
1, 2000,
and annually each | 13 |
| June 1 thereafter, the maximum amount that may be recovered
| 14 |
| from an authorized driver shall be increased by $500 above the | 15 |
| maximum recovery
allowed immediately prior to June 1 of that | 16 |
| year.
| 17 |
| (c) Multiple recoveries prohibited. Any person who rents a | 18 |
| motor
vehicle to another may not hold the renter liable for any | 19 |
| amounts that the
rental company recovers from any other party.
| 20 |
| (d) Repair estimates. A person who rents a motor vehicle to | 21 |
| another may
not collect or attempt to collect the amount | 22 |
| described in subsection (b) unless
the rental company obtains | 23 |
| an estimate from a repair company or an appraiser in
the | 24 |
| business of providing such appraisals on the costs of repairing | 25 |
| the motor
vehicle, makes a copy of the estimate available upon | 26 |
| request to the renter who
may be liable under subsection (a), | 27 |
| or the insurer of the renter, and submits a
copy of the | 28 |
| estimate with any claim to collect the amount described in
| 29 |
| subsection (b).
| 30 |
| (e) Duty to mitigate. A claim against a renter resulting | 31 |
| from damage or
loss to a rental vehicle must be reasonably and | 32 |
| rationally related to the
actual loss incurred. A rental | 33 |
| company shall mitigate damages where possible
and shall not | 34 |
| assert or collect any claim for physical damage which exceeds | 35 |
| the
actual costs of the repair, including all discounts or | 36 |
| price reductions.
|
|
|
|
HB5209 |
- 3 - |
LRB093 18888 DRH 44623 b |
|
| 1 |
| (f) No rental company shall require a deposit or an advance | 2 |
| charge
against
the credit card of a renter, in any form, for | 3 |
| damages to a vehicle which is in
the renter's possession, | 4 |
| custody, or control. No rental company shall require
any | 5 |
| payment for damage to the rental vehicle, upon the renter's | 6 |
| return of the
vehicle in a
damaged condition, until after the | 7 |
| cost of the damage to the vehicle and
liability therefor is | 8 |
| agreed to between the rental company and renter or is
| 9 |
| determined pursuant to law.
| 10 |
| (g) If insurance coverage exists under the renter's | 11 |
| personal insurance
policy and the coverage is confirmed during | 12 |
| regular business hours, the renter
may require that the rental
| 13 |
| company must submit any claims to the renter's personal | 14 |
| insurance carrier as
the renter's agent. The rental company | 15 |
| shall not make any written or oral
representations that it will | 16 |
| not present claims or negotiate with the renter's
insurance | 17 |
| carrier. For purposes of this Section, confirmation of coverage
| 18 |
| includes telephone confirmation from insurance company | 19 |
| representatives during
regular business hours. After
| 20 |
| confirmation of coverage, the amount of claim shall be resolved | 21 |
| between the
insurance carrier and the rental company.
| 22 |
| (Source: P.A. 90-113, eff. 7-14-97.)
|
|