HB4373 104TH GENERAL ASSEMBLY

LRB104 16506 BAB 29902 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4373

Introduced 1/14/2026, by Rep. Thaddeus Jones

SYNOPSIS AS INTRODUCED:

New Act

Creates the Motor Vehicle Glass Repair Act. Provides that an insured under a property and casualty insurance policy shall not, either prior to or after a claimed or covered loss, assign, delegate or otherwise transfer, in whole or in part, to any other person the insured's: (1) duties under the policy; or (2) rights or benefits under the policy. Provides that any contract violating the delegation prohibition shall be void and unenforceable. Sets forth provisions concerning a motor vehicle glass shop's notice requirements to an insured; motor vehicle glass repair claims and practices; prohibited acts; and an insured's right to choose a motor vehicle glass repair shop. Establishes a presumption that a motor vehicle glass repair shop is acting knowingly in violation of provisions concerning prohibited acts if the motor vehicle glass repair shop engages in a regular and consistent pattern of the prohibited activity. Requires the Department of Insurance to adopt rules necessary to administer and implement the Act, including rules to enforce compliance with the Act.

A BILL FOR

AN ACT concerning regulation.

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

Section 1. Short title. This Act may be cited as the Motor Vehicle Glass Repair Act.

Section 5. Definitions. As used in this Act:

"Advanced driver assistance system" means any motor vehicle electronic safety system, as outlined in the most recent version of SAE International's SAE J3016 Levels of Driving Automation, that is designed to support the driver and motor vehicle in a manner intended to:

(1) increase motor vehicle safety; and

(2) reduce losses associated with motor vehicle crashes.

"Department" means the Department of Insurance.

"Insurance producer" means an individual or business entity required to be licensed under the laws of Illinois to sell, solicit, or negotiate insurance or annuity contracts. "Insurance producer" includes an agent, a managing general agent, a surplus lines broker, a reinsurance intermediary broker and manager, a rental vehicle agent and rental vehicle agent managing employee, and a consultant.

"Insured" means a person that is entitled, or may be entitled, to receive first-party benefits or payments under an insurance policy.

"Motor vehicle glass" means the glass and non-glass parts associated with the replacement of the glass used in the windshield, doors, or windows of a motor vehicle.

"Motor vehicle glass repair shop" means any person, including an employee or agent of the person, that for consideration engages in the repair or replacement of damaged motor vehicle glass.

"Notice" means direct written communications, including verifiable text, email, or application-based messaging that is easily accessible by the consumer.

"Person" means any individual or any corporation, limited liability company, partnership, association, or other group existing under or authorized by the laws of either this State or the United States.

"Repair or replacement of damaged motor vehicle glass" includes:

(1) inspecting, repairing, restoring, or replacing damaged motor vehicle glass; and

(2) calibrating or recalibrating an advanced driver assistance system when an incident requires the replacement of damaged motor vehicle glass.

"Rights or benefits under the policy" includes the insured's right to receive any and all post-loss benefits or payments available or payable under the policy, including, but not limited to, claim payments.

Section 10. Application. This Act applies to insurance policies issued or renewed on or after the effective date of this Act.

Section 15. Post-loss benefit assignment.

(a) An insured under a property and casualty insurance policy shall not, either prior to or after a claimed or covered loss, assign, delegate or otherwise transfer, in whole or in part, to any other person the insured's:

(1) duties under the policy; or

(2) rights or benefits under the policy.

(b) Any contract entered in violation of this Section shall be void and unenforceable.

(c) Nothing in this Section shall be construed to prohibit an insured from authorizing or directing payment to, or paying, a person for services, materials, or any other thing that may be, or is, covered under an insurance policy.

Section 20. Motor vehicle glass repair shop notice.

(a) Prior to providing service to an insured for a repair or replacement of damaged motor vehicle glass, a motor vehicle glass repair shop shall notify the insured of each of the following:

(1) whether the motor vehicle has an advanced driver assistance system; and

(2) if the motor vehicle has an advanced driver assistance system, then:

(A) whether calibration or recalibration of the motor vehicle's advanced driver assistance system is needed after a windshield repair or replacement as recommended by the vehicle manufacturer;

(B) whether the motor vehicle glass repair shop intends to calibrate or recalibrate the advanced driver assistance system in a manner that meets the motor vehicle manufacturer's specifications; and

(C) that the motor vehicle should be taken to the vehicle manufacturer's certified dealership or a qualified specialist capable of performing the calibration or recalibration if the motor vehicle glass repair shop is not capable of performing or does not intend to perform the calibration or recalibration referenced in subparagraph (A).

(b) If calibration or recalibration of the motor vehicle's advanced driver assistance system is performed, the motor vehicle glass repair shop shall provide written notice to the insured:

(1) as to whether the calibration or recalibration was successful; and

(2) that, if the calibration or recalibration was not successful, the motor vehicle should be taken to the vehicle manufacturer's certified dealership or a qualified specialist capable of performing the calibration or recalibration.

Section 25. Motor vehicle glass repair claims and practices.

(a) A motor vehicle glass repair shop shall not contract with a person for a repair or replacement of damaged motor vehicle glass to be paid for under a first-party insurance policy until all of the following are satisfied:

(1) the person has made a first-party claim for the repair or replacement of damaged motor vehicle glass under a motor vehicle insurance policy;

(2) the motor vehicle glass repair shop has received a claim or referral number for the first-party claim; and

(3) the requirements of subsection (a) of Section 20 have been satisfied.

(b) A motor vehicle glass repair shop shall:

(1) provide the insured a good faith estimate of the fees and costs that are anticipated to be charged to the insured by the motor vehicle glass repair shop for the repair or replacement of damaged motor vehicle glass;

(2) prior to performing service, provide the insured an updated estimate; and

(3) not charge more than the reasonable and customary fees and costs to an insured for a repair or replacement of damaged motor vehicle glass and any associated calibration or recalibration of the motor vehicle's advanced driver assistance system as recommended by the vehicle manufacturer specifications.

(c) Upon completion of a repair or replacement of damaged motor vehicle glass, a motor vehicle glass repair shop shall provide the insured:

(1) an itemized invoice and, upon payment, a receipt;

(2) notice that states whether or not the advanced driver assistance system was successfully calibrated or recalibrated, if applicable; and

(3) if the calibration or recalibration was not successful, notice not to rely on the advanced driver assistance system until it has been successfully calibrated or recalibrated by the vehicle manufacturer's certified dealership or a qualified specialist capable of performing the calibration or recalibration.

Section 30. Prohibited acts.

(a) A motor vehicle glass repair shop, or any other person who is compensated for the solicitation of insurance claims, shall not offer a rebate, gift, gift card, cash, coupon, fee, prize, bonus, payment, incentive, inducement, or any other thing of value to any insured, insurance producer, or other person in exchange for directing or making a claim under a motor vehicle insurance policy for a repair or replacement of damaged motor vehicle glass.

(b) A motor vehicle glass repair shop shall not:

(1) charge higher fees and costs to an insured for a repair or replacement of damaged motor vehicle glass than are reasonable and customarily charged in this State;

(2) submit false, misleading, or incomplete documentation or information to an insured or an insured's insurer, including any agent of the insured or insurer, for a repair or replacement of damaged motor vehicle glass;

(3) with respect to an insured's claim, or potential claim, for a repair or replacement of damaged motor vehicle glass, do the following, which results, or would result, in a higher insurance payment or a change of insurance coverage status:

(A) indicate that work was performed in a geographic area that was not the geographic area where the work occurred; or

(B) advise an insured to falsify the date of damage;

(4) falsely sign a work order or other insurance-related form relating to an insured's claim, or potential claim, for a repair or replacement of damaged motor vehicle glass;

(5) misrepresent to an insured or the insured's insurer, including any agent of the insured or insurer, the price of a proposed repair or replacement of damaged motor vehicle glass;

(6) state that an insured's insurer has approved a repair or replacement of damaged motor vehicle glass without:

(A) verifying coverage directly with, or obtaining approval directly from, the insurer or the insurer's agent; and

(B) obtaining confirmation of the coverage or approval by facsimile, email, or other written or recorded communication;

(7) state that a repair or replacement of damaged motor vehicle glass will be paid for entirely by an insurer and at no cost to the insured unless the coverage has been verified by the insurer or the insurer's agent; or

(8) with respect to an insured's claim, or potential claim, for a repair or replacement of damaged motor vehicle glass:

(A) damage, or encourage an insured to damage, the motor vehicle in order to increase the scope of the repair or replacement of damaged motor vehicle glass;

(B) perform work that is clearly and substantially beyond the level of work necessary to restore the motor vehicle to a safe pre-damaged condition in accordance with accepted or approved reasonable and customary techniques for the repair or replacement of damaged motor vehicle glass;

(C) misrepresent the motor vehicle glass repair shop's relationship to an insured or the insurer's agent; or

(D) perform any other act that constitutes fraud or misrepresentation.

(c) Any notice or invoice required under this Act shall be issued in the same font size as the invoice, estimate, or receipt.

Section 35. Right to choose motor vehicle glass repair shop.

(a) An insured that makes a first-party claim for a repair or replacement of damaged motor vehicle glass under a motor vehicle insurance policy shall not be required to use a particular motor vehicle glass repair shop to receive claim payments or other benefits under the policy.

(b) This Section shall not be construed to:

(1) prohibit an insurer, insurance producer, insurance adjuster, or any person acting on behalf of an insurer, insurance producer, or insurance adjuster from recommending a motor vehicle glass repair shop or providing an explanation to an insured of the coverage available, and any applicable liability limit, under any insurance policy;

(2) prohibit an insurer from maintaining a network of motor vehicle glass repair shops; or

(3) create a private cause of action.

Section 40. Presumption. It is presumed that a motor vehicle glass repair shop is acting knowingly in violation of Section 30 if the motor vehicle glass repair shop engages in a regular and consistent pattern of the prohibited activity.

Section 45. Rulemaking. The Department shall adopt rules necessary to administer and implement this Act, including rules to enforce compliance with this Act.