HB4561 100TH GENERAL ASSEMBLY

LRB100 16798 SMS 31938 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4561

Introduced , by Rep. Linda Chapa LaVia

SYNOPSIS AS INTRODUCED:

215 ILCS 5/155.46 new
815 ILCS 505/2VVV new

Amends the Illinois Insurance Code. Provides certain restrictions on an adjuster, insurer, insurance producer, or other representative of an insurer who issues policies of automobile insurance concerning motor vehicle repairs. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that certain acts by a repair shop in connection with a repair of damage to a motor vehicle are unlawful practices within the meaning of the Act. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

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 adding Section 155.46 as follows:

(215 ILCS 5/155.46 new)

Sec. 155.46. Motor vehicle repairs.

(a) As used in this Section, "repair shop" means a business that repairs damage to motor vehicles. "Repair shop" includes a body shop.

(b) An adjuster, insurer, insurance producer, or other representative of an insurer who issues a policy of automobile insurance as defined in Section 143.13 shall not do any of the following in connection with a motor vehicle repair:

(1) limit the ability of an insured or claimant to choose the repair shop;

(2) require an insured or claimant to present the claim or motor vehicle for loss adjustment or inspection at a drive-in claim center or similar facility that is solely controlled by the insurer;

(3) engage in a boycott, intimidation, or coercive acts in connection with negotiations concerning repairs to a damaged motor vehicle that the insurer is liable under an insurance policy;

(4) except in an emergency, attempt to secure the insured's or claimant's signature authorizing the person securing the signature to act on behalf of the insured or claimant in selection of a repair shop;

(5) adjust a damage appraisal made by a repair shop while the extent of damage is in dispute without conducting a physical inspection of the motor vehicle;

(6) specify the use of a particular vendor for the procurement of parts or other materials necessary for the satisfactory repair of the motor vehicle; this paragraph does not require an insurer to pay an amount greater than a reasonable market price for parts or materials of like kind and quality in adjusting a claim; or

(7) unilaterally and arbitrarily disregard a repair operation or cost identified by an estimating system, the use of which has been agreed to by the insurer and the repair shop for determining the cost of the repair.

Section 10. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2VVV as follows:

(815 ILCS 505/2VVV new)

Sec. 2VVV. Motor vehicle repairs.

(a) As used in this Section, "repair shop" means a business that repairs damage to motor vehicles. "Repair shop" includes a body shop.

(b) It is an unlawful practice within the meaning of this Act for a repair shop to do any of the following in connection with a repair of damage to a motor vehicle:

(1) coerce or intimidate the insured or claimant to boycott an insurer's drive-in claim center or similar facility;

(2) except in an emergency, attempt to secure the insured's or claimant's signature authorizing the person securing the signature to act on behalf of the insured or claimant in selection of a repair shop; or

(3) unreasonably deny an insurer's representative access to the repair shop during normal business hours to inspect or reinspect a damaged motor vehicle.

Section 99. Effective date. This Act takes effect upon becoming law.