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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5559 Introduced 2/9/2024, by Rep. Tracy Katz Muhl SYNOPSIS AS INTRODUCED:
| | | Amends the Illinois Insurance Code. Provides that, in addition to the options of total car replacement or a cash settlement, an insurer that issues a policy of automobile insurance shall provide to the policyholder, after the policyholder has been deemed eligible for compensation following an automobile crash, the option to be compensated for the value of repairs to make the automobile safe to drive. Requires an insurer to provide a copy of a specified rule at the time an offer of compensation for total loss is made. Requires the Department of Insurance to amend a specified rule to include information about the right of policyholders to elect to be compensated for the value of repairs to make the automobile safe to drive. |
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| | A BILL FOR |
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| | HB5559 | | LRB103 39018 RPS 69155 b |
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| 1 | | AN ACT concerning regulation.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Insurance Code is amended by |
| 5 | | adding Section 143.19.4 as follows:
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| 6 | | (215 ILCS 5/143.19.4 new) |
| 7 | | Sec. 143.19.4. Alternative compensation under a policy of |
| 8 | | automobile insurance. |
| 9 | | (a) In addition to the options of total car replacement or |
| 10 | | a cash settlement, an insurer that issues a policy of |
| 11 | | automobile insurance shall provide to the policyholder, after |
| 12 | | the policyholder has been deemed eligible for compensation |
| 13 | | following an automobile crash, the option to be compensated |
| 14 | | for the value of repairs to make the automobile safe to drive. |
| 15 | | (b) If an insurer offers a policyholder compensation for |
| 16 | | total loss, the insurer shall provide, at the time of the offer |
| 17 | | of compensation for total loss, a copy of 50 Ill. Adm. Code |
| 18 | | 919.EXHIBIT A, if the offer is provided via written |
| 19 | | communication, or an oral description of 50 Ill. Adm. Code |
| 20 | | 919.EXHIBIT A, if the offer is provided via verbal |
| 21 | | communication. |
| 22 | | (c) The Department of Insurance shall amend 50 Ill. Adm. |
| 23 | | Code 919.EXHIBIT A to include information about the right of |