Full Text of SB0061 102nd General Assembly
SB0061sam001 102ND GENERAL ASSEMBLY | Sen. Bill Cunningham Filed: 3/15/2021
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| 1 | | AMENDMENT TO SENATE BILL 61
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 61 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing Section 154.6 and by adding Section 154.9 as follows:
| 6 | | (215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
| 7 | | Sec. 154.6. Acts constituting improper claims practice. | 8 | | Any of the
following acts by a company, if committed without | 9 | | just cause and in
violation of Section 154.5, constitutes an | 10 | | improper claims practice:
| 11 | | (a) Knowingly misrepresenting to claimants and insureds | 12 | | relevant
facts or policy provisions relating to coverages at | 13 | | issue;
| 14 | | (b) Failing to acknowledge with reasonable promptness | 15 | | pertinent
communications with respect to claims arising under | 16 | | its policies;
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| 1 | | (c) Failing to adopt and implement reasonable standards | 2 | | for the
prompt investigations and settlement of claims arising | 3 | | under its policies;
| 4 | | (d) Not attempting in good faith to effectuate prompt, | 5 | | fair and
equitable settlement of claims submitted in which | 6 | | liability has become
reasonably clear;
| 7 | | (e) Compelling policyholders to institute suits to recover | 8 | | amounts
due under its policies by offering substantially less | 9 | | than the amounts
ultimately recovered in suits brought by | 10 | | them;
| 11 | | (f) Engaging in activity which results in a | 12 | | disproportionate number
of meritorious complaints against the | 13 | | insurer received by the Insurance
Department;
| 14 | | (g) Engaging in activity which results in a | 15 | | disproportionate number
of lawsuits to be filed against the | 16 | | insurer or its insureds by
claimants;
| 17 | | (h) Refusing to pay claims without conducting a reasonable
| 18 | | investigation based on all available information;
| 19 | | (i) Failing to affirm or deny coverage of claims within a | 20 | | reasonable
time after proof of loss statements have been | 21 | | completed;
| 22 | | (j) Attempting to settle a claim for less than the amount | 23 | | to which a
reasonable person would believe the claimant was | 24 | | entitled, by reference
to written or printed advertising | 25 | | material accompanying or made part of
an application or | 26 | | establishing unreasonable caps or limits on paint
or materials
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| 1 | | when estimating vehicle repairs;
| 2 | | (k) Attempting to settle claims on the basis of an | 3 | | application which
was altered without notice to, or knowledge | 4 | | or consent of, the insured;
| 5 | | (l) Making a claims payment to a policyholder or | 6 | | beneficiary
omitting the coverage under which each payment is | 7 | | being made;
| 8 | | (m) Delaying the investigation or payment of claims by | 9 | | requiring an
insured, a claimant, or the physicians of either | 10 | | to submit a preliminary
claim report and then requiring | 11 | | subsequent submission of formal proof of
loss forms, resulting | 12 | | in the duplication of verification;
| 13 | | (n) Failing in the case of the denial of a claim or the | 14 | | offer of a
compromise settlement to promptly provide a | 15 | | reasonable and accurate
explanation of the basis in the | 16 | | insurance policy or applicable law for
such denial or | 17 | | compromise settlement;
| 18 | | (o) Failing to provide forms necessary to present claims | 19 | | within 15
working days of a request with such explanations as | 20 | | are necessary to use
them effectively;
| 21 | | (p) Failing to adopt and implement reasonable standards to | 22 | | verify that
a repairer designated by the insurance company to | 23 | | provide an estimate,
perform repairs, or engage in any other | 24 | | service in connection with an
insured loss on a vehicle is duly | 25 | | licensed under Section 5-301 of the
Illinois Vehicle Code;
| 26 | | (q) Failing to provide as a persistent tendency a |
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| 1 | | notification on any
written estimate prepared by an insurance | 2 | | company in connection with an
insured loss that Illinois law | 3 | | requires that vehicle repairers must be
licensed in accordance | 4 | | with Section 5-301 of the Illinois Vehicle Code;
| 5 | | (r) Failing to pay the replacement vehicle use or | 6 | | occupation tax, title, and transfer fees required by Section | 7 | | 154.9 of this Code; | 8 | | (s) (r) Engaging in any other acts which are in substance | 9 | | equivalent to
any of the foregoing.
| 10 | | (Source: P.A. 90-340, eff. 8-8-97.)
| 11 | | (215 ILCS 5/154.9 new) | 12 | | Sec. 154.9. Payment of applicable use or occupation tax, | 13 | | title, and transfer fees on a private passenger total loss | 14 | | claim. | 15 | | (a) When an insurer determines that an insured's or | 16 | | third-party claimant's private passenger automobile is a total | 17 | | loss that is covered under the terms of a personal automobile | 18 | | policy issued or renewed on or after July 1, 2022 by the | 19 | | insurer, the insurer shall pay any use or occupation tax | 20 | | imposed by the State or a unit of local government and title | 21 | | and transfer fees as provided for in this Section. As used in | 22 | | this Section, "private passenger vehicle" means a private | 23 | | passenger motor vehicle, station wagon, or any other 4-wheeled | 24 | | motor vehicle with a load capacity of 1,500 pounds or less that | 25 | | is not used in the occupation, profession, or business of the |
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| 1 | | insured or third-party claimant, not used as a public or | 2 | | livery conveyance for passengers, nor rented to others. | 3 | | (b) If the insurer elects to replace the insured vehicle, | 4 | | the insurer shall pay any use or occupation tax imposed by the | 5 | | State or a unit of local government tax and title and transfer | 6 | | fees on the replacement vehicle. | 7 | | (c) If a cash settlement is provided for the total loss | 8 | | private passenger vehicle, the insurer shall reimburse the | 9 | | insured or third-party claimant for any use or occupation tax | 10 | | imposed by the State or a unit of local government and title | 11 | | and transfer fees if the replacement vehicle is purchased or | 12 | | leased within 30 days after the receipt of the cash settlement | 13 | | by the insured or third-party claimant and the insured or | 14 | | third-party claimant substantiates such purchase and the | 15 | | payment of such taxes and fees by submission of appropriate | 16 | | documentation to the insurer within 33 days after the receipt | 17 | | of the settlement or receipt of the required reimbursement | 18 | | form from the insurer, whichever is later. | 19 | | (1) With respect to leased vehicles, use or occupation | 20 | | taxes and title and transfer fees shall be deemed to be | 21 | | incurred by the insured or the third-party claimant at the | 22 | | time the lease is entered into, but only if such use or | 23 | | occupation taxes and title and transfer fees are included | 24 | | in the cost of the lease or are paid directly by the | 25 | | insured or third-party claimant. | 26 | | (2) The insurer is not required to reimburse the |
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| 1 | | insured or third-party claimant for any use or occupation | 2 | | taxes and title or transfer fees in excess of the amount | 3 | | payable based on the value of the total loss vehicle at the | 4 | | time of the loss or for taxes and title or transfer fees | 5 | | not actually paid by the insured or third-party claimant. | 6 | | (3) In lieu of this reimbursement procedure, the | 7 | | insurer may directly pay the required amount of any use or | 8 | | occupation taxes and title and transfer fees to the | 9 | | claimant at the time of settlement. | 10 | | (4) If an insurer requires a particular form be used | 11 | | to apply for reimbursement of any use or occupation taxes | 12 | | and title or transfer fees, the form must be delivered to | 13 | | the insured or third-party claimant at or before the time | 14 | | of settlement. | 15 | | (d) The Department may adopt rules establishing uniform | 16 | | standards for implementation of this Section, including, but | 17 | | not limited to, prescribing the method of determining the | 18 | | market value of the insured's or third-party claimant's | 19 | | vehicle.
| 20 | | Section 99. Effective date. This Act takes effect July 1, | 21 | | 2022.".
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