96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB2529


 
Introduced 2/20/2009, by Rep. Thomas Holbrook
 
SYNOPSIS AS INTRODUCED:
 		













215 ILCS 5/397.07 new










    Amends the  Illinois Insurance Code. Provides that no company authorized to transact the kinds of business related to Class 2 (casualty, fidelity, and surety) or Class 3 (fire and marine) insurance may issue an insurance contract or policy that contains a provision that allows a property claim and settlement offer to be calculated using a method other than actual cash value. Defines "actual cash value" as replacement cost less depreciation, considering the age and condition of the property.
















LRB096 10105 RPM 20271 b

















 


 


A BILL FOR









 











HB2529

LRB096 10105 RPM 20271 b






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    AN ACT concerning insurance.

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


 
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    Section 5. The Illinois Insurance Code is amended  by adding 
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Section 397.07 as follows:
 
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    (215 ILCS 5/397.07  new)
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    Sec. 397.07. Settlement offer; actual cash value. No 
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company authorized to transact the kinds of business in Class 2 
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or Class 3 of Section 4 of this Code may issue an insurance 
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contract or policy that contains a provision that allows a 
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property claim and settlement offer to be calculated using a 
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method other than actual cash value. For the purpose of this 
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Section, "actual cash value" means replacement cost less 
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depreciation, considering the age and condition of the 
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property. "Actual cash value" does not include market value.