Public Act 90-0451 of the 90th General Assembly

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90th General Assembly

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Public Act 90-0451

SB710 Enrolled                                LRB9002813WHmgA

    AN ACT to amend certain Acts in relation  to  rights  and
remedies.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 1.  The Metropolitan  Transit  Authority  Act  is
amended by changing Section 41 as follows:

    (70 ILCS 3605/41) (from Ch. 111 2/3, par. 341)
    Sec.  41. No civil action shall be commenced in any court
against the Authority by any person for  any  injury  to  his
person  unless  it is commenced within one year from the date
that the injury was received or the cause of action  accrued.
Within  six  (6) months from the date that such an injury was
received or such cause of action accrued, any person  who  is
about  to  commence any civil action in any court against the
Authority for damages on account of any injury to his  person
shall  file  in  the office of the secretary of the Board and
also in the office of the General Counsel for  the  Authority
either  by  himself,  his agent, or attorney, a statement, in
writing, signed by himself, his agent,  or  attorney,  giving
the  name  of  the  person  to  whom  the cause of action has
accrued, the name and residence of the  person  injured,  the
date  and  about  the  hour  of  the  accident,  the place or
location where the accident occurred and the name and address
of the attending physician, if any. If  the  notice  provided
for  by this section is not filed as provided, any such civil
action commenced against the Authority shall be dismissed and
the person to whom any such cause of action accrued  for  any
personal injury shall be forever barred from further suing.
    Any  person who notifies the Authority that he or she was
injured or has a cause of action shall be furnished a copy of
Section 41  of this Act.  Within 10 days after being notified
in writing,  the  Authority  shall  either  send  a  copy  by
certified mail to the person at his or her last known address
or  hand  deliver  a copy to the person who shall acknowledge
receipt by his or  her  signature.   When  the  Authority  is
notified  later  than  6  months  from  the  date  the injury
occurred or the cause of action arose, the Authority  is  not
obligated  to furnish a copy of Section 41 to the person.  In
the event the Authority fails to furnish a copy of Section 41
as provided in this Section, any action commenced against the
Authority shall not  be  dismissed  for  failure  to  file  a
written  notice as provided in this Section.  Compliance with
this Section shall be liberally construed  in  favor  of  the
person required to file a written statement.
(Source: P.A. 87-597.)

    Section  3.  The  Illinois  Insurance  Code is amended by
changing Section 143a as follows:

    (215 ILCS 5/143a) (from Ch. 73, par. 755a)
    Sec. 143a.  Uninsured  and  hit  and  run  motor  vehicle
coverage.
    (1)  No  policy  insuring  against  loss  resulting  from
liability  imposed by law for bodily injury or death suffered
by any person arising out of the  ownership,  maintenance  or
use  of  a  motor  vehicle that is designed for use on public
highways and that is either required to be registered in this
State or is  principally  garaged  in  this  State  shall  be
renewed,  delivered,  or  issued  for  delivery in this State
unless coverage is provided therein or supplemental  thereto,
in  limits  for  bodily  injury or death set forth in Section
7-203 of the Illinois Vehicle  Code  for  the  protection  of
persons  insured  thereunder  who  are  legally  entitled  to
recover  damages  from owners or operators of uninsured motor
vehicles and hit-and-run motor  vehicles  because  of  bodily
injury,  sickness  or  disease,  including  death,  resulting
therefrom. Uninsured motor vehicle coverage does not apply to
bodily   injury,   sickness,   disease,  or  death  resulting
therefrom, of an insured  while  occupying  a  motor  vehicle
owned  by,  or  furnished or available for the regular use of
the insured, a resident spouse or resident relative, if  that
motor  vehicle  is  not described in the policy under which a
claim is made or is not a newly acquired or replacement motor
vehicle covered under the terms of the  policy.   The  limits
for  any coverage for any vehicle under the policy may not be
aggregated with the limits for any similar coverage,  whether
provided  by the same insurer or another insurer, applying to
other motor vehicles, for purposes of determining  the  total
limit  of  insurance  coverage available for bodily injury or
death suffered by a person in any one  accident.   No  policy
shall  be  renewed, delivered, or issued for delivery in this
State unless it is provided therein  that  any  dispute  with
respect  to  the  coverage and the amount of damages shall be
submitted  for  arbitration  to  the   American   Arbitration
Association  and  be  subject to its rules for the conduct of
arbitration  hearings  as  to  all  matters  except   medical
opinions.   As  to medical opinions, if the amount of damages
being sought is equal to or less than the amount provided for
in Section 7-203 of  the  Illinois  Vehicle  Code,  then  the
current  American  Arbitration Association Rules shall apply.
If  the  amount  being  sought  in  an  American  Arbitration
Association case exceeds that amount as set forth in  Section
7-203  of  the  Illinois  Vehicle  Code,  then  the  Rules of
Evidence that apply in the circuit court for placing  medical
opinions into evidence shall govern.  Alternatively, disputes
with  respect to damages and the coverage shall be determined
or for determination  in  the  following  manner:   Upon  the
insured  requesting  arbitration,  each  party to the dispute
shall select an arbitrator and the  2  arbitrators  so  named
shall select a third arbitrator.  If such arbitrators are not
selected  within  45 days from such request, either party may
request that the arbitration be  submitted  to  the  American
Arbitration Association. Any decision made by the arbitrators
shall  be binding for the amount of damages not exceeding the
limits for bodily injury or death set forth in Section  7-203
of  the Illinois Vehicle Code. All 3-person arbitration cases
proceeding in accordance with any uninsured motorist coverage
conducted in this State in which the claimant is only seeking
monetary damages up to the limits set forth in Section  7-203
of  the  Illinois  Vehicle  Code  shall  be  subject  to  the
following rules:
         (A)  If  at  least  60  days'  written notice of the
    intention to offer the following documents in evidence is
    given to every other party, accompanied by a copy of  the
    document,   a   party  may  offer  in  evidence,  without
    foundation or other proof:
              (1)  bills, records, and reports of  hospitals,
         doctors,   dentists,   registered  nurses,  licensed
         practical nurses,  physical  therapists,  and  other
         healthcare providers;
              (2)  bills  for  drugs, medical appliances, and
         prostheses;
              (3)  property repair bills or  estimates,  when
         identified  and  itemized  setting forth the charges
         for labor and material used or proposed for  use  in
         the repair of the property;
              (4)  a  report of the rate of earnings and time
         lost from work or lost compensation prepared  by  an
         employer;
              (5)  the written opinion of an opinion witness,
         the  deposition of a witness, and the statement of a
         witness that the witness would be allowed to express
         if testifying in person, if the opinion or statement
         is made by affidavit or by certification as provided
         in Section 1-109 of the Code of Civil Procedure;
              (6)  any  other   document   not   specifically
         covered  by  any of the foregoing provisions that is
         otherwise admissible under the rules of evidence.
         Any party receiving a notice  under  this  paragraph
    (A)  may apply to the arbitrator or panel of arbitrators,
    as the case may  be,  for  the  issuance  of  a  subpoena
    directed  to  the  author  or  maker  or custodian of the
    document that is the subject of the notice, requiring the
    person subpoenaed to produce  copies  of  any  additional
    documents  as may be related to the subject matter of the
    document that is the subject of  the  notice.   Any  such
    subpoena  shall  be  issued in substantially similar form
    and served by notice  as  provided  by  Illinois  Supreme
    Court   Rule  204(a)(4).   Any  such  subpoena  shall  be
    returnable not less than 5 days  before  the  arbitration
    hearing.
         (B)  Notwithstanding the provisions of Supreme Court
    Rule  213(g),  a  party  who  proposes  to  use a written
    opinion of an expert or opinion witness or the  testimony
    of  an expert or opinion witness at the hearing may do so
    provided a written notice of that intention is  given  to
    every other party not less than 60 days prior to the date
    of  hearing,  accompanied  by  a statement containing the
    identity of the witness, his or her  qualifications,  the
    subject  matter,  the basis of the witness's conclusions,
    and his or her opinion.
         (C)  Any other party  may  subpoena  the  author  or
    maker  of a document admissible under this subsection, at
    that party's expense, and examine the author or maker  as
    if  under  cross-examination.   The provisions of Section
    2-1101 of the Code of Civil Procedure shall be applicable
    to arbitration hearings, and it shall be the  duty  of  a
    party  requesting the subpoena to modify the form to show
    that the appearance is set before  an  arbitration  panel
    and to give the time and place set for the hearing.
         (D)  The provisions of Section 2-1102 of the Code of
    Civil   Procedure  shall  be  applicable  to  arbitration
    hearings under this subsection.
    (2)  No  policy  insuring  against  loss  resulting  from
liability imposed by law for property damage arising  out  of
the  ownership,  maintenance, or use of a motor vehicle shall
be renewed, delivered, or issued for delivery in  this  State
with  respect  to any private passenger or recreational motor
vehicle that is designed for use on public highways and  that
is  either  required  to  be  registered  in this State or is
principally garaged in this  State  and  is  not  covered  by
collision  insurance  under  the  provisions  of such policy,
unless coverage is made available in the amount of the actual
cash value of the motor vehicle described in  the  policy  or
$15,000  whichever is less, subject to a $250 deductible, for
the protection of persons insured thereunder who are  legally
entitled  to  recover  damages  from  owners  or operators of
uninsured  motor  vehicles  and  hit-and-run  motor  vehicles
because of property damage to the motor vehicle described  in
the policy.
    There  shall  be no liability imposed under the uninsured
motorist property damage coverage required by this subsection
if the owner or operator  of  the  at-fault  uninsured  motor
vehicle  or  hit-and-run  motor vehicle cannot be identified.
This subsection shall not apply to any policy which does  not
provide   primary   motor  vehicle  liability  insurance  for
liabilities arising from the maintenance, operation,  or  use
of a specifically insured motor vehicle.
    Each  insurance  company providing motor vehicle property
damage liability insurance shall  advise  applicants  of  the
availability  of  uninsured  motor  vehicle  property  damage
coverage,   the   premium   therefor,  and  provide  a  brief
description of the coverage.  Each insurer, with  respect  to
the initial renewal, reinstatement, or reissuance of a policy
of  motor  vehicle  property damage liability insurance shall
provide present policyholders with the  same  information  in
writing.   That information need be given only once and shall
not be required in any subsequent renewal,  reinstatement  or
reissuance, substitute, amended, replacement or supplementary
policy.   No  written  rejection  shall  be required, and the
absence of a premium  payment  for  uninsured  motor  vehicle
property  damage  shall  constitute conclusive proof that the
applicant or policyholder has elected not to accept uninsured
motorist property damage coverage.
    An insurance  company  issuing  uninsured  motor  vehicle
property damage coverage may provide that:
         (i)  Property  damage  losses recoverable thereunder
    shall be limited to damages caused by the actual physical
    contact of an uninsured motor vehicle  with  the  insured
    motor vehicle.
         (ii)  There  shall be no coverage for loss of use of
    the insured motor vehicle and no  coverage  for  loss  or
    damage  to personal property located in the insured motor
    vehicle.
         (iii)  Any claim submitted shall  include  the  name
    and  address of the owner of the at-fault uninsured motor
    vehicle, or a registration number and description of  the
    vehicle,  or any other available information to establish
    that there is no applicable motor vehicle property damage
    liability insurance.
    (iv)  Any dispute with respect to the  coverage  and  the
amount  of  damages shall be submitted for arbitration to the
American Arbitration Association and be subject to its  rules
for  the conduct of arbitration hearings or for determination
in  the  following  manner:   Upon  the  insured   requesting
arbitration,  each  party  to  the  dispute  shall  select an
arbitrator and the 2 arbitrators  so  named  shall  select  a
third  arbitrator.   If  such  arbitrators  are  not selected
within 45 days from such request, either  party  may  request
that the arbitration be submitted to the American Arbitration
Association. Any arbitration proceeding under this subsection
seeking recovery for property damages shall be subject to the
following rules:
         (A)  If  at  least  60  days'  written notice of the
    intention to offer the following documents in evidence is
    given to every other party, accompanied by a copy of  the
    document,   a   party  may  offer  in  evidence,  without
    foundation or other proof:
              (1)  property repair bills or  estimates,  when
         identified  and  itemized  setting forth the charges
         for labor and material used or proposed for  use  in
         the repair of the property;
              (2)  the written opinion of an opinion witness,
         the  deposition of a witness, and the statement of a
         witness that the witness would be allowed to express
         if testifying in person, if the opinion or statement
         is made by affidavit or by certification as provided
         in Section 1-109 of the Code of Civil Procedure;
              (3)  any  other   document   not   specifically
         covered  by  any of the foregoing provisions that is
         otherwise admissible under the rules of evidence.
         Any party receiving a notice  under  this  paragraph
    (A)  may apply to the arbitrator or panel of arbitrators,
    as the case may  be,  for  the  issuance  of  a  subpoena
    directed  to  the  author  or  maker  or custodian of the
    document that is the subject of the notice, requiring the
    person subpoenaed to produce  copies  of  any  additional
    documents  as may be related to the subject matter of the
    document that is the subject of  the  notice.   Any  such
    subpoena  shall  be  issued in substantially similar form
    and served by notice  as  provided  by  Illinois  Supreme
    Court   Rule  204(a)(4).   Any  such  subpoena  shall  be
    returnable not less than 5 days  before  the  arbitration
    hearing.
         (B)  Notwithstanding the provisions of Supreme Court
    Rule  213(g),  a  party  who  proposes  to  use a written
    opinion of an expert or opinion witness or the  testimony
    of  an expert or opinion witness at the hearing may do so
    provided a written notice of that intention is  given  to
    every other party not less than 60 days prior to the date
    of  hearing,  accompanied  by  a statement containing the
    identity of the witness, his or her  qualifications,  the
    subject  matter,  the basis of the witness's conclusions,
    and his or her opinion.
         (C)  Any other party  may  subpoena  the  author  or
    maker  of a document admissible under this subsection, at
    that party's expense, and examine the author or maker  as
    if  under  cross-examination.   The provisions of Section
    2-1101 of the Code of Civil Procedure shall be applicable
    to arbitration hearings, and it shall be the  duty  of  a
    party  requesting the subpoena to modify the form to show
    that the appearance is set before  an  arbitration  panel
    and to give the time and place set for the hearing.
         (D)  The provisions of Section 2-1102 of the Code of
    Civil   Procedure  shall  be  applicable  to  arbitration
    hearings under this subsection.
    (3)  For the purpose of the coverage the term  "uninsured
motor  vehicle" includes, subject to the terms and conditions
of the coverage, a motor vehicle where on,  before  or  after
the  accident date the liability insurer thereof is unable to
make payment with respect  to  the  legal  liability  of  its
insured  within the limits specified in the policy because of
the entry by a court of competent jurisdiction of an order of
rehabilitation or liquidation by reason of insolvency  on  or
after  the accident date. An insurer's extension of coverage,
as provided in this subsection, shall be  applicable  to  all
accidents occurring after July 1, 1967 during a policy period
in which its insured's uninsured motor vehicle coverage is in
effect.  Nothing  in this Section may be construed to prevent
any  insurer  from  extending  coverage   under   terms   and
conditions more favorable to its insureds than is required by
this Section.
    (4)  In  the  event  of  payment  to any person under the
coverage required by this Section and subject  to  the  terms
and  conditions  of  the  coverage,  the  insurer  making the
payment shall, to the extent  thereof,  be  entitled  to  the
proceeds  of  any  settlement  or judgment resulting from the
exercise of any rights of recovery of the person against  any
person  or  organization legally responsible for the property
damage, bodily injury or death for which the payment is made,
including the proceeds recoverable from  the  assets  of  the
insolvent insurer. With respect to payments made by reason of
the  coverage described in subsection (3), the insurer making
such payment shall not be entitled to any right  of  recovery
against  the  tort-feasor in excess of the proceeds recovered
from the assets of the insolvent insurer of the tort-feasor.
    (5)  This amendatory Act of 1967 shall not  be  construed
to terminate or reduce any insurance coverage or any right of
any party under this Code in effect before July 1, 1967. This
amendatory Act of 1990 shall not be construed to terminate or
reduce any insurance coverage or any right of any party under
this Code in effect before its effective date.
    (6)  Failure  of  the  motorist from whom the claimant is
legally entitled to recover damages to file  the  appropriate
forms   with   the   Safety  Responsibility  Section  of  the
Department of Transportation within 120 days of the  accident
date  shall create a rebuttable presumption that the motorist
was uninsured at the time of the injurious occurrence.
    (7)  An insurance carrier may upon good cause require the
insured to commence a  legal  action  against  the  owner  or
operator  of  an  uninsured  motor  vehicle before good faith
negotiation with the carrier.  If the action is commenced  at
the  request  of the insurance carrier, the carrier shall pay
to the insured, before the action  is  commenced,  all  court
costs, jury fees and sheriff's fees arising from the action.
    The  changes made by this amendatory Act of 1997 apply to
all policies of  insurance  amended,  delivered,  issued,  or
renewed  on  and  after the effective date of this amendatory
Act of 1997.
(Source: P.A. 89-206, eff. 7-21-95.)

    Section 5.  The Code of Civil  Procedure  is  amended  by
changing Section 13-206 as follows:

    (735 ILCS 5/13-206) (from Ch. 110, par. 13-206)
    Sec.  13-206.  Ten year limitation. Except as provided in
Section 2-725 of the "Uniform Commercial  Code",  actions  on
bonds,  promissory  notes, bills of exchange, written leases,
written contracts, or  other  evidences  of  indebtedness  in
writing,  shall  be  commenced within 10 years next after the
cause of action accrued; but if any payment or new promise to
pay has been made, in  writing,  on  any  bond,  note,  bill,
lease,  contract,  or other written evidence of indebtedness,
within or after the period of 10 years, then an action may be
commenced thereon at any time within 10 years after the  time
of  such  payment  or  promise  to  pay. For purposes of this
Section, with regard to promissory notes dated  on  or  after
the effective date of this amendatory Act of 1997, a cause of
action  on  a  promissory  note  payable  at  a definite date
accrues on the due date or date stated in the promissory note
or the date upon which the promissory  note  is  accelerated.
With  respect  to  a demand promissory note dated on or after
the effective date of this  amendatory  Act  of  1997,  if  a
demand  for  payment  is  made  to  the  maker  of the demand
promissory note, an action to enforce  the  obligation  of  a
party  to  pay  the  demand promissory note must be commenced
within 10 years after the demand.  An  action  to  enforce  a
demand  promissory  note  is  barred if neither principal nor
interest on the demand promissory note has been  paid  for  a
continuous  period  of 10 years and no demand for payment has
been made to the maker during that period.
(Source: P.A. 82-280.)

    Section  10.  The Uniform Commercial Code is  amended  by
changing Section 3-118 as follows:

    (810 ILCS 5/3-118) (from Ch. 26, par. 3-118)
    Sec. 3-118.  Statute of limitations.
    (a)  (Blank).    Except as provided in subsection (e), an
action to enforce the obligation of a party  to  pay  a  note
payable  at  a definite time must be commenced within 6 years
after the due date or dates stated in the note or, if  a  due
date is accelerated, within 6 years after the accelerated due
date.
    (b)  (Blank).     Except as provided in subsection (d) or
(e), if demand for payment is made to the  maker  of  a  note
payable  on  demand, an action to enforce the obligation of a
party to pay the note must be commenced within 6 years  after
the  demand.   If no demand for payment is made to the maker,
an action to enforce the note is barred if neither  principal
nor  interest  on  the  note  has  been paid for a continuous
period of 10 years.
    (c)  Except as provided in subsection (d), an  action  to
enforce  the  obligation of a party to an unaccepted draft to
pay the draft must be commenced within 3 years after dishonor
of the draft or  10  years  after  the  date  of  the  draft,
whichever period expires first.
    (d)  An  action to enforce the obligation of the acceptor
of a certified check or  the  issuer  of  a  teller's  check,
cashier's check, or traveler's check must be commenced within
3  years  after demand for payment is made to the acceptor or
issuer, as the case may be.
    (e)  An action to enforce the obligation of a party to  a
certificate   of  deposit  to  pay  the  instrument  must  be
commenced within 6 years after demand for payment is made  to
the  maker,  but  if the instrument states a due date and the
maker is not required to pay before  that  date,  the  6-year
period  begins when a demand for payment is in effect and the
due date has passed.
    (f)  An action to enforce the obligation of  a  party  to
pay  an accepted draft, other than a certified check, must be
commenced (i) within 6 years after  the  due  date  or  dates
stated  in  the  draft or acceptance if the obligation of the
acceptor is payable at a definite  time,  or  (ii)  within  6
years  after  the date of the acceptance if the obligation of
the acceptor is payable on demand.
    (g)  Unless governed by other law  regarding  claims  for
indemnity or contribution, an action (i) for conversion of an
instrument,  for money had and received, or like action based
on conversion, (ii) for  breach  of  warranty,  or  (iii)  to
enforce  an  obligation,  duty,  or  right arising under this
Article and not governed by this Section  must  be  commenced
within 3 years after the cause of action accrues.
(Source: P.A. 87-582; 87-1135.)

    Section 99.  The  provisions  changing  Section 41 of the
Metropolitan  Transit  Authority  Act  take effect on July 1,
1998.

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