SB1545 100TH GENERAL ASSEMBLY

LRB100 08730 AXK 18868 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1545

Introduced 2/9/2017, by Sen. John G. Mulroe

SYNOPSIS AS INTRODUCED:

625 ILCS 5/3-202.5 new

Amends the Illinois Vehicle Code. Provides that if an owner of a vehicle has comprehensive, collision, or other insurance coverage for the damage or loss of a vehicle and the vehicle's certificate of title discloses a lienholder of record, any insurer paying a claim for the damage or loss of the vehicle shall issue the payment directly to the business repairing the vehicle or to both the owner of the vehicle and the lienholder of record. Provides that the provision does not apply to a claim made by a lienholder on a vehicle to secure a loan when the vehicle owner has breached his or her commitment to provide insurance coverage for the damage or loss of the vehicle.

A BILL FOR

AN ACT concerning transportation.

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

Section 5. The Illinois Vehicle Code is amended by adding Section 3-202.5 as follows:

(625 ILCS 5/3-202.5 new)

Sec. 3-202.5. Insurance payments.

(a) If an owner of a vehicle, or the transferee of a vehicle, has comprehensive, collision, or other insurance coverage for the damage or loss of a vehicle and the vehicle's certificate of title discloses a lienholder of record, any insurer paying a claim for the damage or loss of the vehicle shall issue the payment directly to the business repairing the vehicle or to both the owner of the vehicle and the lienholder of record.

(b) An insurer 's obligation to issue payments under this Section shall not apply to a claim made by a lienholder on a vehicle to secure a loan when the vehicle owner has breached his or her commitment to provide insurance coverage for the damage or loss of the vehicle.