SB1545sam001 100TH GENERAL ASSEMBLY

Sen. John G. Mulroe

Filed: 3/10/2017

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AMENDMENT TO SENATE BILL 1545

AMENDMENT NO. ______. Amend Senate Bill 1545 by replacing everything after the enacting clause with the following:

"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. Lienholder interest; insurance payments.

(a) An owner of a vehicle shall maintain comprehensive, collision, or other insurance coverage for the damage or loss of a vehicle if the coverage is required under the terms of a loan agreement between the owner and a lienholder identified on the vehicle's certificate of title. The owner, lienholder, or agent or representative of the lienholder shall provide the lienholder's name and address to the insurance company issuing the insurance coverage and shall request that an endorsement to the policy be issued naming the lienholder as an additional insured entity, which shall be immediately issued by the insurer.

(b) An insurer paying a claim under this Section for the damage or loss of a vehicle shall issue the payment to both the owner of the vehicle and the lienholder. An insurer's obligation to issue payments to both the owner of the vehicle and the lienholder shall not apply to a claim paid under a lienholder's collateral protection insurance policy on a vehicle securing the lienholder's loan when the vehicle owner has failed to satisfy a loan condition to provide insurance coverage for the damage or loss of the vehicle.".