Full Text of HB5314 95th General Assembly
HB5314eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning transportation.
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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 Vehicle Code is amended by changing | 5 |
| Section 6-305.2 as follows:
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| (625 ILCS 5/6-305.2)
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| Sec. 6-305.2. Limited liability for damage.
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| (a) Damage to private
passenger vehicle. A person who rents | 9 |
| a motor vehicle to another may hold
the renter liable to the | 10 |
| extent permitted under subsections (b) through (d) for
physical | 11 |
| or mechanical damage to the rented motor vehicle that occurs | 12 |
| during
the time the motor vehicle is under the rental | 13 |
| agreement.
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| (b) Limits on liability. The total liability of a renter | 15 |
| under subsection
(a) for damage to a motor vehicle may not | 16 |
| exceed all of the following:
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| (1) The lesser of:
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| (A) Actual and reasonable costs that the person who | 19 |
| rents a motor
vehicle to another incurred to repair the | 20 |
| motor vehicle or that the rental
company would have | 21 |
| incurred if the motor vehicle had been
repaired, which | 22 |
| shall reflect any discounts, price reductions, or | 23 |
| adjustments
available to the rental company; or
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| (B) The fair market value of that motor vehicle | 2 |
| immediately before the
damage occurred, as determined | 3 |
| in the customary market for the retail sale of
that | 4 |
| motor vehicle; and
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| (2) Actual and reasonable costs incurred by the loss | 6 |
| due to theft of the
rental motor vehicle up to its fair | 7 |
| market value immediately before the loss occurred using a | 8 |
| commonly and commercially accepted method to establish a | 9 |
| fair market value $2,000; provided, however, that if it is
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| established that the renter or an authorized driver failed | 11 |
| to exercise ordinary
care while in possession of the | 12 |
| vehicle or that the renter or an authorized
driver | 13 |
| committed or aided and abetted the commission of the theft, | 14 |
| then the
damages shall be the actual and reasonable costs | 15 |
| of the rental vehicle up to
its fair market value, as | 16 |
| determined by the customary market for the sale of
that | 17 |
| vehicle .
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| For purposes of this subsection (b), for the period prior | 19 |
| to June 1, 1998,
the
maximum amount that may be recovered from | 20 |
| an authorized driver shall not exceed
$6,000; for the period | 21 |
| beginning June 1, 1998 through May 31, 1999, the maximum
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| recovery shall not exceed $7,500; and for the period beginning | 23 |
| June 1, 1999
through May 31, 2000, the maximum recovery shall | 24 |
| not exceed $9,000. Beginning
June
1, 2000,
and annually each | 25 |
| June 1 thereafter, the maximum amount that may be recovered
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| from an authorized driver shall be increased by $500 above the |
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| maximum recovery
allowed immediately prior to June 1 of that | 2 |
| year.
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| (c) Multiple recoveries prohibited. Any person who rents a | 4 |
| motor
vehicle to another may not hold the renter liable for any | 5 |
| amounts that the
rental company recovers from any other party.
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| (d) Repair estimates. A person who rents a motor vehicle to | 7 |
| another may
not collect or attempt to collect the amount | 8 |
| described in subsection (b) unless
the rental company obtains | 9 |
| an estimate from a repair company or an appraiser in
the | 10 |
| business of providing such appraisals on the costs of repairing | 11 |
| the motor
vehicle, makes a copy of the estimate available upon | 12 |
| request to the renter who
may be liable under subsection (a), | 13 |
| and or the insurer of the renter, if known by the rental | 14 |
| company, and submits a
copy of the estimate with any claim to | 15 |
| collect the amount described in
subsection (b). If the estimate | 16 |
| of repair exceeds $3,500, then, prior to any repairs being | 17 |
| initiated, the insurer of the renter or the renter shall be | 18 |
| allowed 72 hours from the date of notice to inspect the damaged | 19 |
| vehicle and obtain another estimate of repair on the damaged | 20 |
| vehicle.
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| (e) Duty to mitigate. A claim against a renter resulting | 22 |
| from damage or
loss to a rental vehicle must be reasonably and | 23 |
| rationally related to the
actual loss incurred. A rental | 24 |
| company shall mitigate damages where possible
and shall not | 25 |
| assert or collect any claim for physical damage which exceeds | 26 |
| the
actual costs of the repair, including all discounts or |
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| price reductions.
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| (f) No rental company shall require a deposit or an advance | 3 |
| charge
against
the credit card of a renter, in any form, for | 4 |
| damages to a vehicle which is in
the renter's possession, | 5 |
| custody, or control. No rental company shall require
any | 6 |
| payment for damage to the rental vehicle, upon the renter's | 7 |
| return of the
vehicle in a
damaged condition, until after the | 8 |
| cost of the damage to the vehicle and
liability therefor is | 9 |
| agreed to between the rental company and renter or is
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| determined pursuant to law.
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| (g) If insurance coverage exists under the renter's | 12 |
| personal insurance
policy and the coverage is confirmed during | 13 |
| regular business hours, the renter
may require that the rental
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| company must submit any claims to the renter's personal | 15 |
| insurance carrier as
the renter's agent. The rental company | 16 |
| shall not make any written or oral
representations that it will | 17 |
| not present claims or negotiate with the renter's
insurance | 18 |
| carrier. For purposes of this Section, confirmation of coverage
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| includes telephone confirmation from insurance company | 20 |
| representatives during
regular business hours. After
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| confirmation of coverage, the amount of claim shall be resolved | 22 |
| between the
insurance carrier and the rental company.
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| (Source: P.A. 90-113, eff. 7-14-97.)
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| Section 99. Effective date. This Act takes effect July 1, | 25 |
| 2008.
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