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| 1 | AN ACT concerning regulation. | ||||||
| 2 | Be it enacted by the People of the State of Illinois, | ||||||
| 3 | represented in the General Assembly: | ||||||
| 4 | Section 5. The Illinois Insurance Code is amended by | ||||||
| 5 | adding Section 143.13b as follows: | ||||||
| 6 | (215 ILCS 5/143.13b new) | ||||||
| 7 | Sec. 143.13b. Right to appraisal. | ||||||
| 8 | (a) Definitions. As used in this Section: | ||||||
| 9 | "Appraiser" means an individual selected to determine the | ||||||
| 10 | value of the disputed loss. | ||||||
| 11 | "Competent" means an individual with appropriate subject | ||||||
| 12 | matter expertise, training, and experience in automobile | ||||||
| 13 | damage valuation and claims practices. | ||||||
| 14 | "Disinterested" means an individual having no direct or | ||||||
| 15 | indirect financial interest in the outcome of the appraisal. | ||||||
| 16 | "Umpire" means a neutral, disinterested individual with | ||||||
| 17 | relevant experience in vehicle damage assessment, selected | ||||||
| 18 | under paragraph (3) of subsection (b). | ||||||
| 19 | (b) Right to appraisal for first-party claims. | ||||||
| 20 | (1) Every automobile insurance policy issued, renewed, | ||||||
| 21 | or delivered in Illinois that includes first-party | ||||||
| 22 | coverage for physical damage shall contain a provision | ||||||
| 23 | granting either the insured or the insurer the right to | ||||||
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| 1 | invoke appraisal if there is a dispute over: | ||||||
| 2 | (A) the actual cash value or amount of a loss, | ||||||
| 3 | including repairable or total loss amounts; or | ||||||
| 4 | (B) the value of a settlement offer made to a | ||||||
| 5 | third-party claimant. | ||||||
| 6 | (2) If a dispute arises regarding the amount of a loss | ||||||
| 7 | or a settlement offer, either party may submit a written | ||||||
| 8 | demand for appraisal. Within 7 calendar days after | ||||||
| 9 | receiving the demand, each party shall: | ||||||
| 10 | (A) select a competent and disinterested | ||||||
| 11 | appraiser; and | ||||||
| 12 | (B) notify the opposing party in writing of the | ||||||
| 13 | selection. | ||||||
| 14 | (3) The 2 appraisers shall independently determine the | ||||||
| 15 | amount of loss. If the appraisers fail to agree on the | ||||||
| 16 | amount of a loss or a settlement offer within 5 calendar | ||||||
| 17 | days after the date of their appointment, they shall | ||||||
| 18 | jointly select a competent and disinterested umpire. If | ||||||
| 19 | the appraisers fail to agree on an umpire within 15 | ||||||
| 20 | calendar days after they failed to agree on the amount of | ||||||
| 21 | the loss or the settlement offer, either party may | ||||||
| 22 | petition a court to appoint a suitable umpire. The | ||||||
| 23 | Department shall maintain a list of competent and | ||||||
| 24 | disinterested umpires and shall furnish that list to any | ||||||
| 25 | party that requests the list. If an umpire is selected | ||||||
| 26 | pursuant to this Section, a final award shall be | ||||||
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| 1 | determined within 5 calendar days after the umpire was | ||||||
| 2 | selected. | ||||||
| 3 | (4) The 2 appraisers or, if there is a disagreement | ||||||
| 4 | under paragraph (3), one appraiser and the umpire shall | ||||||
| 5 | issue an award determining the actual cash value and | ||||||
| 6 | amount of the loss. | ||||||
| 7 | (5) An agreement by any 2 of the 3, either both | ||||||
| 8 | appraisers or one appraiser and the umpire, shall be | ||||||
| 9 | binding upon all parties. | ||||||
| 10 | (c) Cost allocation and consumer protections. | ||||||
| 11 | (1) Each party shall bear the cost of its own | ||||||
| 12 | appraiser. | ||||||
| 13 | (2) The cost of the umpire shall be shared equally | ||||||
| 14 | between the parties. | ||||||
| 15 | (d) Enforcement and penalties. | ||||||
| 16 | (1) Any insurer in Illinois that fails to comply with | ||||||
| 17 | the appraisal provisions of this Section, including any | ||||||
| 18 | refusal to participate in the process in good faith, shall | ||||||
| 19 | be subject to administrative penalties imposed by the | ||||||
| 20 | Department. | ||||||
| 21 | (2) Repeated violations of this Section may result in | ||||||
| 22 | further disciplinary measures, including suspension or | ||||||
| 23 | revocation of the insurer's authority to write automobile | ||||||
| 24 | insurance policies in Illinois. | ||||||
| 25 | Section 99. Effective date. This Act takes effect 90 days | ||||||
| 26 | after becoming law. | ||||||