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Public Act 098-0242 Public Act 0242 98TH GENERAL ASSEMBLY |
Public Act 098-0242 | HB2393 Enrolled | LRB098 08558 RPM 38672 b |
|
| AN ACT concerning insurance.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. 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 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 $50,000 for | bodily injury to or
death of any one person, $100,000 for | bodily injury to or death of 2 or more
persons in any one motor | vehicle accident,
or the corresponding policy limits for bodily | injury or death, whichever is
less.
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.
| 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. 93-485, eff. 1-1-04.)
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Effective Date: 1/1/2014
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