101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4890

 

Introduced 2/18/2020, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/143b  from Ch. 73, par. 755b

    Amends the Illinois Insurance Code. Makes a technical change in a Section concerning collision insurance coverage.


LRB101 18038 BMS 67476 b

 

 

A BILL FOR

 

HB4890LRB101 18038 BMS 67476 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 143b as follows:
 
6    (215 ILCS 5/143b)  (from Ch. 73, par. 755b)
7    Sec. 143b. Any insurance carrier whose payment to its
8insured is reduced by a deductible amount under a policy
9providing collision coverage is subrogated to its insured's
10entire collision loss claim including the the deductible amount
11unless the deductible amount has been otherwise recovered by
12the insured, but if the deductible amount has been otherwise
13recovered by the insured it shall not be included in the
14subrogated loss claim and shall be excluded from the amount of
15loss pleaded. If the deductible amount is included in the
16subrogated loss claim the insurance carrier shall pay the full
17pro rata deductible share to its insured out of the net
18recovery on the subrogated claim. Administrative expenses of
19the insurance carrier cannot be deducted from the gross
20recovery, and only incurred expenses of the carrier, such as
21attorney's fees, collection fees and adjuster's fees, may be
22deducted therefrom to determine the net recovery. When the
23insurance carrier is recovering directly from a third party a

 

 

HB4890- 2 -LRB101 18038 BMS 67476 b

1claim by means of installments, the insured shall receive his
2full pro rata deductible share as soon as such amount is
3collected and before any part of such recovery is applied to
4any other use.
5(Source: P.A. 83-588.)