Full Text of HB5575 98th General Assembly
HB5575ham001 98TH GENERAL ASSEMBLY | Rep. Michael J. Zalewski Filed: 4/2/2014
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| 1 | | AMENDMENT TO HOUSE BILL 5575
| 2 | | AMENDMENT NO. ______. Amend House Bill 5575 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing Section 143a as follows:
| 6 | | (215 ILCS 5/143a) (from Ch. 73, par. 755a)
| 7 | | Sec. 143a. Uninsured and hit and run motor vehicle | 8 | | coverage.
| 9 | | (1) No policy insuring against
loss resulting from | 10 | | liability imposed by law for bodily injury or death
suffered by | 11 | | any person arising out of the ownership, maintenance or use
of | 12 | | a motor vehicle that is designed for use on public highways and | 13 | | that
is either required to be registered in this State or is | 14 | | principally garaged
in this State shall be renewed, delivered, | 15 | | or issued for delivery
in this State unless coverage is | 16 | | provided therein or
supplemental thereto, in limits for bodily |
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| 1 | | injury or death set forth in
Section 7-203 of the Illinois | 2 | | Vehicle Code for the
protection of persons insured thereunder | 3 | | who are legally entitled to
recover damages from owners or | 4 | | operators of uninsured motor vehicles and
hit-and-run motor | 5 | | vehicles because of bodily injury, sickness or
disease, | 6 | | including death, resulting therefrom. Uninsured motor vehicle
| 7 | | coverage does not apply to bodily injury, sickness, disease, or | 8 | | death resulting
therefrom, of an insured while occupying a | 9 | | motor vehicle owned by, or furnished
or available for the | 10 | | regular use of the insured, a resident spouse or resident
| 11 | | relative, if that motor vehicle is not described in the policy | 12 | | under which a
claim is made or is not a newly acquired or | 13 | | replacement motor vehicle covered
under the terms of the | 14 | | policy. The limits for any coverage for any vehicle
under the | 15 | | policy may not be aggregated with the limits for any similar
| 16 | | coverage, whether provided by the same insurer or another | 17 | | insurer, applying to
other motor vehicles, for purposes of | 18 | | determining the total limit of insurance
coverage available for | 19 | | bodily injury or death suffered by a person in any one
| 20 | | accident. No
policy shall be renewed, delivered, or issued for | 21 | | delivery in this
State unless it is provided therein that any | 22 | | dispute
with respect to the coverage and the amount of damages | 23 | | shall be submitted
for arbitration to the
American Arbitration | 24 | | Association and be subject to its rules for the conduct
of | 25 | | arbitration hearings
as to all matters except medical opinions. | 26 | | As to medical opinions, if the
amount of damages being sought |
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| 1 | | is equal to or less than the amount provided for
in Section | 2 | | 7-203 of the Illinois Vehicle Code, then the current American
| 3 | | Arbitration Association Rules shall apply. If the amount being | 4 | | sought in an
American Arbitration Association case exceeds that | 5 | | amount as set forth in
Section 7-203 of the Illinois Vehicle | 6 | | Code, then the Rules of Evidence that
apply in the circuit | 7 | | court for placing medical opinions into evidence shall
govern. | 8 | | Alternatively, disputes with respect to damages and the | 9 | | coverage shall
be
determined in the
following
manner: Upon the | 10 | | insured requesting arbitration, each party to the
dispute shall | 11 | | select an arbitrator and the 2 arbitrators so named
shall | 12 | | select a third arbitrator. If such arbitrators are not selected
| 13 | | within 45 days from such request, either party may request that | 14 | | the
arbitration be submitted to the American Arbitration | 15 | | Association.
Any decision made by the arbitrators shall be | 16 | | binding for the amount of
damages not exceeding $75,000 $50,000 | 17 | | for bodily injury to or
death of any one person, $150,000 | 18 | | $100,000 for bodily injury to or death of 2 or more
persons in | 19 | | any one motor vehicle accident,
or the corresponding policy | 20 | | limits for bodily injury or death, whichever is
less.
All | 21 | | 3-person arbitration cases proceeding in accordance with any | 22 | | uninsured
motorist
coverage conducted in this State in
which | 23 | | the claimant is only seeking monetary damages up to the limits
| 24 | | set forth in Section 7-203 of the Illinois Vehicle Code
shall | 25 | | be subject to the following rules:
| 26 | | (A) If at least 60 days' written
notice of the |
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| 1 | | intention to offer the following documents in evidence is | 2 | | given
to every other party, accompanied by a copy of the | 3 | | document, a party may offer
in evidence, without foundation | 4 | | or other proof:
| 5 | | (1) bills, records, and reports of hospitals, | 6 | | doctors, dentists,
registered nurses, licensed | 7 | | practical nurses, physical therapists, and other
| 8 | | healthcare providers;
| 9 | | (2) bills for drugs, medical appliances, and | 10 | | prostheses;
| 11 | | (3) property repair bills or estimates, when | 12 | | identified and itemized
setting forth the charges for | 13 | | labor and material used or proposed for use in
the | 14 | | repair of the property;
| 15 | | (4) a report of the rate of earnings and time lost | 16 | | from work or lost
compensation prepared by an employer;
| 17 | | (5) the written opinion of an opinion witness, the | 18 | | deposition of a
witness, and the statement of a witness | 19 | | that the witness would be allowed to
express if | 20 | | testifying in person, if the opinion or statement is | 21 | | made by
affidavit or by
certification as provided in | 22 | | Section 1-109 of the Code of Civil Procedure;
| 23 | | (6) any other document not specifically covered by | 24 | | any of the foregoing
provisions that is otherwise | 25 | | admissible under the rules of evidence.
| 26 | | Any party receiving a notice under this paragraph (A) |
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| 1 | | may apply to the
arbitrator or panel of arbitrators, as the | 2 | | case may be, for the issuance of a
subpoena directed to the | 3 | | author or maker or custodian of the document that is
the | 4 | | subject of the notice, requiring the person subpoenaed to | 5 | | produce copies of
any additional documents as may be | 6 | | related to the subject matter of the
document that is the | 7 | | subject of the notice. Any such subpoena shall be issued
in | 8 | | substantially similar form and served by notice as provided | 9 | | by Illinois
Supreme Court Rule 204(a)(4). Any such subpoena | 10 | | shall be returnable not
less than 5 days before the | 11 | | arbitration hearing.
| 12 | | (B) Notwithstanding the provisions of Supreme Court | 13 | | Rule 213(g), a party
who proposes to use a written opinion | 14 | | of an expert or opinion witness or the
testimony of
an | 15 | | expert or opinion witness at the hearing may do so provided | 16 | | a written notice
of that
intention is given to every other | 17 | | party not less than 60 days prior to the date
of hearing, | 18 | | accompanied by a statement containing the identity of the
| 19 | | witness, his or her qualifications, the subject matter, the | 20 | | basis of the
witness's conclusions,
and his or her opinion.
| 21 | | (C) Any other party may subpoena the author or maker of | 22 | | a document
admissible under this subsection, at that | 23 | | party's expense, and examine the
author
or maker as if | 24 | | under cross-examination. The provisions of Section 2-1101 | 25 | | of
the
Code of Civil Procedure shall be applicable to | 26 | | arbitration hearings, and it
shall be the duty of a party |
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| 1 | | requesting the subpoena to modify the form to show
that the | 2 | | appearance is set before an arbitration panel and to give | 3 | | the time and
place set for the hearing.
| 4 | | (D) The provisions of Section 2-1102 of the Code of | 5 | | Civil Procedure shall
be
applicable to arbitration | 6 | | hearings under this subsection.
| 7 | | (2) No policy insuring
against loss resulting from | 8 | | liability imposed by law for property damage
arising out of the | 9 | | ownership, maintenance, or use of a motor vehicle shall
be | 10 | | renewed, delivered, or issued for delivery in this State with | 11 | | respect
to any private passenger or recreational motor vehicle | 12 | | that is
designed for use on public highways and that is either | 13 | | required to be
registered in this State or is principally | 14 | | garaged in this State and
is not covered by collision insurance | 15 | | under the provisions of such
policy, unless coverage is made | 16 | | available in the amount of the actual
cash value of the motor | 17 | | vehicle described in the policy or $15,000
whichever is less, | 18 | | subject to a $250 deductible, for the protection of
persons | 19 | | insured thereunder who are legally entitled to recover damages | 20 | | from
owners or operators of uninsured motor vehicles and | 21 | | hit-and-run motor
vehicles because of property damage to the | 22 | | motor vehicle described in the
policy.
| 23 | | There shall be no liability imposed under the uninsured | 24 | | motorist
property damage coverage required by this subsection | 25 | | if the owner or
operator of the at-fault uninsured motor | 26 | | vehicle or hit-and-run motor
vehicle cannot be identified. This |
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| 1 | | subsection shall not apply to any
policy which does not provide | 2 | | primary motor vehicle liability insurance for
liabilities | 3 | | arising from the maintenance, operation, or use of a
| 4 | | specifically insured motor vehicle.
| 5 | | Each insurance company providing motor vehicle property | 6 | | damage liability
insurance shall advise applicants of the | 7 | | availability of uninsured motor
vehicle property damage | 8 | | coverage, the premium therefor, and provide a brief
description | 9 | | of the coverage. That information
need be given only once and | 10 | | shall not be required in any subsequent renewal,
reinstatement | 11 | | or reissuance, substitute, amended, replacement or
| 12 | | supplementary policy. No written rejection shall be required, | 13 | | and
the absence of a premium payment for uninsured motor | 14 | | vehicle property damage
shall constitute conclusive proof that | 15 | | the applicant or policyholder has
elected not to accept | 16 | | uninsured motorist property damage coverage.
| 17 | | An insurance company issuing uninsured motor vehicle
| 18 | | property damage coverage may provide that:
| 19 | | (i) Property damage losses recoverable thereunder | 20 | | shall be limited to
damages caused by the actual physical | 21 | | contact of an uninsured motor vehicle
with the insured | 22 | | motor vehicle.
| 23 | | (ii) There shall be no coverage for loss of use of the | 24 | | insured motor
vehicle and no coverage for loss or damage to | 25 | | personal property located in
the insured motor vehicle.
| 26 | | (iii) Any claim submitted shall include the name and |
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| 1 | | address of the
owner of the at-fault uninsured motor | 2 | | vehicle, or a registration number and
description of the | 3 | | vehicle, or any other available information to
establish | 4 | | that there is no applicable motor vehicle property damage | 5 | | liability
insurance.
| 6 | | Any dispute with respect to the coverage and the amount of
| 7 | | damages shall be submitted for
arbitration to the American | 8 | | Arbitration Association and be subject to its
rules for the | 9 | | conduct of arbitration hearings or for determination in
the | 10 | | following manner: Upon the insured requesting arbitration, | 11 | | each party
to the dispute shall select an arbitrator and the 2 | 12 | | arbitrators so named
shall select a third arbitrator. If such | 13 | | arbitrators are not selected
within 45 days from such request, | 14 | | either party may request that the
arbitration be submitted to | 15 | | the American Arbitration Association.
Any arbitration | 16 | | proceeding under this subsection seeking recovery for
property | 17 | | damages shall be
subject to the following rules:
| 18 | | (A) If at least 60 days' written
notice of the | 19 | | intention to offer the following documents in evidence is | 20 | | given
to every other party, accompanied by a copy of the | 21 | | document, a party may offer
in evidence, without foundation | 22 | | or other proof:
| 23 | | (1) property repair bills or estimates, when | 24 | | identified and itemized
setting forth the charges for | 25 | | labor and material used or proposed for use in
the | 26 | | repair of the property;
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| 1 | | (2) the written opinion of an opinion witness, the | 2 | | deposition of a
witness, and the statement of a witness | 3 | | that the witness would be allowed to
express if | 4 | | testifying in person, if the opinion or statement is | 5 | | made by
affidavit or by
certification as provided in | 6 | | Section 1-109 of the Code of Civil Procedure;
| 7 | | (3) any other document not specifically covered by | 8 | | any of the foregoing
provisions that is otherwise | 9 | | admissible under the rules of evidence.
| 10 | | Any party receiving a notice under this paragraph (A) | 11 | | may apply to the
arbitrator or panel of arbitrators, as the | 12 | | case may be, for the issuance of a
subpoena directed to the | 13 | | author or maker or custodian of the document that is
the | 14 | | subject of the notice, requiring the person subpoenaed to | 15 | | produce copies of
any additional documents as may be | 16 | | related to the subject matter of the
document that is the | 17 | | subject of the notice. Any such subpoena shall be issued
in | 18 | | substantially similar form and served by notice as provided | 19 | | by Illinois
Supreme Court Rule 204(a)(4). Any such subpoena | 20 | | shall be returnable not
less than 5 days before the | 21 | | arbitration hearing.
| 22 | | (B) Notwithstanding the provisions of Supreme Court | 23 | | Rule 213(g), a party
who proposes to use a written opinion | 24 | | of an expert or opinion witness or the
testimony of
an | 25 | | expert or opinion witness at the hearing may do so provided | 26 | | a written notice
of that
intention is given to every other |
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| 1 | | party not less than 60 days prior to the date
of hearing, | 2 | | accompanied by a statement containing the identity of the
| 3 | | witness, his or her qualifications, the subject matter, the | 4 | | basis of the
witness's conclusions,
and his or her opinion.
| 5 | | (C) Any other party may subpoena the author or maker of | 6 | | a document
admissible under this subsection, at that | 7 | | party's expense, and examine the
author
or maker as if | 8 | | under cross-examination. The provisions of Section 2-1101 | 9 | | of
the
Code of Civil Procedure shall be applicable to | 10 | | arbitration hearings, and it
shall be the duty of a party | 11 | | requesting the subpoena to modify the form to show
that the | 12 | | appearance is set before an arbitration panel and to give | 13 | | the time and
place set for the hearing.
| 14 | | (D) The provisions of Section 2-1102 of the Code of | 15 | | Civil Procedure shall
be
applicable to arbitration | 16 | | hearings under this subsection.
| 17 | | (3) For the purpose of the coverage the term "uninsured | 18 | | motor
vehicle" includes, subject to the terms and conditions of | 19 | | the coverage,
a motor vehicle where on, before or after the | 20 | | accident date the
liability insurer thereof is unable to make | 21 | | payment with respect to the
legal liability of its insured | 22 | | within the limits specified in the policy
because of the entry | 23 | | by a court of competent jurisdiction of an order of
| 24 | | rehabilitation or liquidation by reason of insolvency on or | 25 | | after the
accident date. An insurer's extension of coverage, as | 26 | | provided in this
subsection, shall be applicable to all |
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| 1 | | accidents occurring after July
1, 1967 during a policy period | 2 | | in which its insured's uninsured motor
vehicle coverage is in | 3 | | effect. Nothing in this Section may be construed
to prevent any | 4 | | insurer from extending coverage under terms and
conditions more | 5 | | favorable to its insureds than is required by this Section.
| 6 | | (4) In the event of payment to any person under the | 7 | | coverage
required by this Section and subject to the terms and | 8 | | conditions of the
coverage, the insurer making the payment | 9 | | shall, to the extent thereof,
be entitled to the proceeds of | 10 | | any settlement or judgment resulting from
the exercise of any | 11 | | rights of recovery of the person against any person
or | 12 | | organization legally responsible for the property damage, | 13 | | bodily
injury or death for which the payment is made, including | 14 | | the proceeds
recoverable from the assets of the insolvent | 15 | | insurer. With respect to
payments made by reason of the | 16 | | coverage described in subsection (3), the
insurer making such | 17 | | payment shall not be entitled to any right of recovery
against | 18 | | the tort-feasor in excess of the proceeds recovered from the | 19 | | assets
of the insolvent insurer of the tort-feasor.
| 20 | | (5) This amendatory Act of 1967 shall not be construed to | 21 | | terminate
or reduce any insurance coverage or any right of any | 22 | | party under this
Code in effect before July 1, 1967. This | 23 | | amendatory Act of 1990 shall not
be construed to terminate or | 24 | | reduce any insurance coverage or any right of
any party under | 25 | | this Code in effect before its effective date.
| 26 | | (6) Failure of the motorist from whom the claimant is |
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| 1 | | legally
entitled to recover damages to file the appropriate | 2 | | forms with the
Safety Responsibility Section of the Department | 3 | | of Transportation within
120 days of the accident date shall | 4 | | create a rebuttable presumption that
the motorist was uninsured | 5 | | at the time of the injurious occurrence.
| 6 | | (7) An insurance carrier may upon good cause require the
| 7 | | insured to commence a legal action against the owner or | 8 | | operator of an
uninsured motor vehicle before good faith | 9 | | negotiation with the carrier. If
the action is commenced at the | 10 | | request of the insurance carrier, the
carrier shall pay to the | 11 | | insured, before the action is commenced, all court
costs, jury | 12 | | fees and sheriff's fees arising from the action.
| 13 | | The changes made by this amendatory Act of 1997 apply to | 14 | | all policies of
insurance amended, delivered, issued, or | 15 | | renewed on and after the effective
date of this amendatory Act | 16 | | of 1997.
| 17 | | (8) The changes made by this amendatory Act of the 98th | 18 | | General Assembly apply to all policies of
insurance amended, | 19 | | delivered, issued, or renewed on and after the effective
date | 20 | | of this amendatory Act of the 98th General Assembly. | 21 | | (Source: P.A. 98-242, eff. 1-1-14.)".
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