97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB0067

 

Introduced 1/27/2011, by Sen. Ira I. Silverstein

 

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

    Amends the Illinois Insurance Code. Deletes a provision concerning actual physical contact of an uninsured motor vehicle and provides instead that an insurance company issuing uninsured motor vehicle property damage coverage may not require that property damage losses recoverable thereunder be limited to damages caused by the actual physical contact of an uninsured motor vehicle with the insured motor vehicle.


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A BILL FOR

 

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1    AN ACT concerning insurance.
 
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 143a as follows:
 
6    (215 ILCS 5/143a)  (from Ch. 73, par. 755a)
7    Sec. 143a. Uninsured and hit and run motor vehicle
8coverage.
9    (1) No policy insuring against loss resulting from
10liability imposed by law for bodily injury or death suffered by
11any person arising out of the ownership, maintenance or use of
12a motor vehicle that is designed for use on public highways and
13that is either required to be registered in this State or is
14principally garaged in this State shall be renewed, delivered,
15or issued for delivery in this State unless coverage is
16provided therein or supplemental thereto, in limits for bodily
17injury or death set forth in Section 7-203 of the Illinois
18Vehicle Code for the protection of persons insured thereunder
19who are legally entitled to recover damages from owners or
20operators of uninsured motor vehicles and hit-and-run motor
21vehicles because of bodily injury, sickness or disease,
22including death, resulting therefrom. Uninsured motor vehicle
23coverage does not apply to bodily injury, sickness, disease, or

 

 

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1death resulting therefrom, of an insured while occupying a
2motor vehicle owned by, or furnished or available for the
3regular use of the insured, a resident spouse or resident
4relative, if that motor vehicle is not described in the policy
5under which a claim is made or is not a newly acquired or
6replacement motor vehicle covered under the terms of the
7policy. The limits for any coverage for any vehicle under the
8policy may not be aggregated with the limits for any similar
9coverage, whether provided by the same insurer or another
10insurer, applying to other motor vehicles, for purposes of
11determining the total limit of insurance coverage available for
12bodily injury or death suffered by a person in any one
13accident. No policy shall be renewed, delivered, or issued for
14delivery in this State unless it is provided therein that any
15dispute with respect to the coverage and the amount of damages
16shall be submitted for arbitration to the American Arbitration
17Association and be subject to its rules for the conduct of
18arbitration hearings as to all matters except medical opinions.
19As to medical opinions, if the amount of damages being sought
20is equal to or less than the amount provided for in Section
217-203 of the Illinois Vehicle Code, then the current American
22Arbitration Association Rules shall apply. If the amount being
23sought in an American Arbitration Association case exceeds that
24amount as set forth in Section 7-203 of the Illinois Vehicle
25Code, then the Rules of Evidence that apply in the circuit
26court for placing medical opinions into evidence shall govern.

 

 

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1Alternatively, disputes with respect to damages and the
2coverage shall be determined in the following manner: Upon the
3insured requesting arbitration, each party to the dispute shall
4select an arbitrator and the 2 arbitrators so named shall
5select a third arbitrator. If such arbitrators are not selected
6within 45 days from such request, either party may request that
7the arbitration be submitted to the American Arbitration
8Association. Any decision made by the arbitrators shall be
9binding for the amount of damages not exceeding $50,000 for
10bodily injury to or death of any one person, $100,000 for
11bodily injury to or death of 2 or more persons in any one motor
12vehicle accident, or the corresponding policy limits for bodily
13injury or death, whichever is less. All 3-person arbitration
14cases proceeding in accordance with any uninsured motorist
15coverage conducted in this State in which the claimant is only
16seeking monetary damages up to the limits set forth in Section
177-203 of the Illinois Vehicle Code shall be subject to the
18following rules:
19        (A) If at least 60 days' written notice of the
20    intention to offer the following documents in evidence is
21    given to every other party, accompanied by a copy of the
22    document, a party may offer in evidence, without foundation
23    or other proof:
24            (1) bills, records, and reports of hospitals,
25        doctors, dentists, registered nurses, licensed
26        practical nurses, physical therapists, and other

 

 

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1        healthcare providers;
2            (2) bills for drugs, medical appliances, and
3        prostheses;
4            (3) property repair bills or estimates, when
5        identified and itemized setting forth the charges for
6        labor and material used or proposed for use in the
7        repair of the property;
8            (4) a report of the rate of earnings and time lost
9        from work or lost compensation prepared by an employer;
10            (5) the written opinion of an opinion witness, the
11        deposition of a witness, and the statement of a witness
12        that the witness would be allowed to express if
13        testifying in person, if the opinion or statement is
14        made by affidavit or by certification as provided in
15        Section 1-109 of the Code of Civil Procedure;
16            (6) any other document not specifically covered by
17        any of the foregoing provisions that is otherwise
18        admissible under the rules of evidence.
19        Any party receiving a notice under this paragraph (A)
20    may apply to the arbitrator or panel of arbitrators, as the
21    case may be, for the issuance of a subpoena directed to the
22    author or maker or custodian of the document that is the
23    subject of the notice, requiring the person subpoenaed to
24    produce copies of any additional documents as may be
25    related to the subject matter of the document that is the
26    subject of the notice. Any such subpoena shall be issued in

 

 

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1    substantially similar form and served by notice as provided
2    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
3    shall be returnable not less than 5 days before the
4    arbitration hearing.
5        (B) Notwithstanding the provisions of Supreme Court
6    Rule 213(g), a party who proposes to use a written opinion
7    of an expert or opinion witness or the testimony of an
8    expert or opinion witness at the hearing may do so provided
9    a written notice of that intention is given to every other
10    party not less than 60 days prior to the date of hearing,
11    accompanied by a statement containing the identity of the
12    witness, his or her qualifications, the subject matter, the
13    basis of the witness's conclusions, and his or her opinion.
14        (C) Any other party may subpoena the author or maker of
15    a document admissible under this subsection, at that
16    party's expense, and examine the author or maker as if
17    under cross-examination. The provisions of Section 2-1101
18    of the Code of Civil Procedure shall be applicable to
19    arbitration hearings, and it shall be the duty of a party
20    requesting the subpoena to modify the form to show that the
21    appearance is set before an arbitration panel and to give
22    the time and place set for the hearing.
23        (D) The provisions of Section 2-1102 of the Code of
24    Civil Procedure shall be applicable to arbitration
25    hearings under this subsection.
26    (2) No policy insuring against loss resulting from

 

 

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1liability imposed by law for property damage arising out of the
2ownership, maintenance, or use of a motor vehicle shall be
3renewed, delivered, or issued for delivery in this State with
4respect to any private passenger or recreational motor vehicle
5that is designed for use on public highways and that is either
6required to be registered in this State or is principally
7garaged in this State and is not covered by collision insurance
8under the provisions of such policy, unless coverage is made
9available in the amount of the actual cash value of the motor
10vehicle described in the policy or $15,000 whichever is less,
11subject to a $250 deductible, for the protection of persons
12insured thereunder who are legally entitled to recover damages
13from owners or operators of uninsured motor vehicles and
14hit-and-run motor vehicles because of property damage to the
15motor vehicle described in the policy.
16    There shall be no liability imposed under the uninsured
17motorist property damage coverage required by this subsection
18if the owner or operator of the at-fault uninsured motor
19vehicle or hit-and-run motor vehicle cannot be identified. This
20subsection shall not apply to any policy which does not provide
21primary motor vehicle liability insurance for liabilities
22arising from the maintenance, operation, or use of a
23specifically insured motor vehicle.
24    Each insurance company providing motor vehicle property
25damage liability insurance shall advise applicants of the
26availability of uninsured motor vehicle property damage

 

 

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1coverage, the premium therefor, and provide a brief description
2of the coverage. Each insurer, with respect to the initial
3renewal, reinstatement, or reissuance of a policy of motor
4vehicle property damage liability insurance shall provide
5present policyholders with the same information in writing.
6That information need be given only once and shall not be
7required in any subsequent renewal, reinstatement or
8reissuance, substitute, amended, replacement or supplementary
9policy. No written rejection shall be required, and the absence
10of a premium payment for uninsured motor vehicle property
11damage shall constitute conclusive proof that the applicant or
12policyholder has elected not to accept uninsured motorist
13property damage coverage.
14    An insurance company issuing uninsured motor vehicle
15property damage coverage may provide that:
16        (i) (Blank) Property damage losses recoverable
17    thereunder shall be limited to damages caused by the actual
18    physical contact of an uninsured motor vehicle with the
19    insured motor vehicle.
20        (ii) There shall be no coverage for loss of use of the
21    insured motor vehicle and no coverage for loss or damage to
22    personal property located in the insured motor vehicle.
23        (iii) Any claim submitted shall include the name and
24    address of the owner of the at-fault uninsured motor
25    vehicle, or a registration number and description of the
26    vehicle, or any other available information to establish

 

 

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1    that there is no applicable motor vehicle property damage
2    liability insurance.
3    An insurance company issuing uninsured motor vehicle
4property damage coverage may not require that property damage
5losses recoverable thereunder be limited to damages caused by
6the actual physical contact of an uninsured motor vehicle with
7the insured motor vehicle.
8     Any dispute with respect to the coverage and the amount of
9damages shall be submitted for arbitration to the American
10Arbitration Association and be subject to its rules for the
11conduct of arbitration hearings or for determination in the
12following manner: Upon the insured requesting arbitration,
13each party to the dispute shall select an arbitrator and the 2
14arbitrators so named shall select a third arbitrator. If such
15arbitrators are not selected within 45 days from such request,
16either party may request that the arbitration be submitted to
17the American Arbitration Association. Any arbitration
18proceeding under this subsection seeking recovery for property
19damages shall be subject to the following rules:
20        (A) If at least 60 days' written notice of the
21    intention to offer the following documents in evidence is
22    given to every other party, accompanied by a copy of the
23    document, a party may offer in evidence, without foundation
24    or other proof:
25            (1) property repair bills or estimates, when
26        identified and itemized setting forth the charges for

 

 

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1        labor and material used or proposed for use in the
2        repair of the property;
3            (2) the written opinion of an opinion witness, the
4        deposition of a witness, and the statement of a witness
5        that the witness would be allowed to express if
6        testifying in person, if the opinion or statement is
7        made by affidavit or by certification as provided in
8        Section 1-109 of the Code of Civil Procedure;
9            (3) any other document not specifically covered by
10        any of the foregoing provisions that is otherwise
11        admissible under the rules of evidence.
12        Any party receiving a notice under this paragraph (A)
13    may apply to the arbitrator or panel of arbitrators, as the
14    case may be, for the issuance of a subpoena directed to the
15    author or maker or custodian of the document that is the
16    subject of the notice, requiring the person subpoenaed to
17    produce copies of any additional documents as may be
18    related to the subject matter of the document that is the
19    subject of the notice. Any such subpoena shall be issued in
20    substantially similar form and served by notice as provided
21    by Illinois Supreme Court Rule 204(a)(4). Any such subpoena
22    shall be returnable not less than 5 days before the
23    arbitration hearing.
24        (B) Notwithstanding the provisions of Supreme Court
25    Rule 213(g), a party who proposes to use a written opinion
26    of an expert or opinion witness or the testimony of an

 

 

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1    expert or opinion witness at the hearing may do so provided
2    a written notice of that intention is given to every other
3    party not less than 60 days prior to the date of hearing,
4    accompanied by a statement containing the identity of the
5    witness, his or her qualifications, the subject matter, the
6    basis of the witness's conclusions, and his or her opinion.
7        (C) Any other party may subpoena the author or maker of
8    a document admissible under this subsection, at that
9    party's expense, and examine the author or maker as if
10    under cross-examination. The provisions of Section 2-1101
11    of the Code of Civil Procedure shall be applicable to
12    arbitration hearings, and it shall be the duty of a party
13    requesting the subpoena to modify the form to show that the
14    appearance is set before an arbitration panel and to give
15    the time and place set for the hearing.
16        (D) The provisions of Section 2-1102 of the Code of
17    Civil Procedure shall be applicable to arbitration
18    hearings under this subsection.
19    (3) For the purpose of the coverage the term "uninsured
20motor vehicle" includes, subject to the terms and conditions of
21the coverage, a motor vehicle where on, before or after the
22accident date the liability insurer thereof is unable to make
23payment with respect to the legal liability of its insured
24within the limits specified in the policy because of the entry
25by a court of competent jurisdiction of an order of
26rehabilitation or liquidation by reason of insolvency on or

 

 

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1after the accident date. An insurer's extension of coverage, as
2provided in this subsection, shall be applicable to all
3accidents occurring after July 1, 1967 during a policy period
4in which its insured's uninsured motor vehicle coverage is in
5effect. Nothing in this Section may be construed to prevent any
6insurer from extending coverage under terms and conditions more
7favorable to its insureds than is required by this Section.
8    (4) In the event of payment to any person under the
9coverage required by this Section and subject to the terms and
10conditions of the coverage, the insurer making the payment
11shall, to the extent thereof, be entitled to the proceeds of
12any settlement or judgment resulting from the exercise of any
13rights of recovery of the person against any person or
14organization legally responsible for the property damage,
15bodily injury or death for which the payment is made, including
16the proceeds recoverable from the assets of the insolvent
17insurer. With respect to payments made by reason of the
18coverage described in subsection (3), the insurer making such
19payment shall not be entitled to any right of recovery against
20the tort-feasor in excess of the proceeds recovered from the
21assets of the insolvent insurer of the tort-feasor.
22    (5) This amendatory Act of 1967 shall not be construed to
23terminate or reduce any insurance coverage or any right of any
24party under this Code in effect before July 1, 1967. This
25amendatory Act of 1990 shall not be construed to terminate or
26reduce any insurance coverage or any right of any party under

 

 

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1this Code in effect before its effective date.
2    (6) Failure of the motorist from whom the claimant is
3legally entitled to recover damages to file the appropriate
4forms with the Safety Responsibility Section of the Department
5of Transportation within 120 days of the accident date shall
6create a rebuttable presumption that the motorist was uninsured
7at the time of the injurious occurrence.
8    (7) An insurance carrier may upon good cause require the
9insured to commence a legal action against the owner or
10operator of an uninsured motor vehicle before good faith
11negotiation with the carrier. If the action is commenced at the
12request of the insurance carrier, the carrier shall pay to the
13insured, before the action is commenced, all court costs, jury
14fees and sheriff's fees arising from the action.
15    The changes made by this amendatory Act of 1997 apply to
16all policies of insurance amended, delivered, issued, or
17renewed on and after the effective date of this amendatory Act
18of 1997.
19(Source: P.A. 93-485, eff. 1-1-04.)