Illinois General Assembly - Full Text of SB0061
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Full Text of SB0061  102nd General Assembly


Sen. Bill Cunningham

Filed: 3/15/2021





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2    AMENDMENT NO. ______. Amend Senate Bill 61 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Insurance Code is amended by
5changing 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.
8Any of the following acts by a company, if committed without
9just cause and in violation of Section 154.5, constitutes an
10improper claims practice:
11    (a) Knowingly misrepresenting to claimants and insureds
12relevant facts or policy provisions relating to coverages at
14    (b) Failing to acknowledge with reasonable promptness
15pertinent communications with respect to claims arising under
16its policies;



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1    (c) Failing to adopt and implement reasonable standards
2for the prompt investigations and settlement of claims arising
3under its policies;
4    (d) Not attempting in good faith to effectuate prompt,
5fair and equitable settlement of claims submitted in which
6liability has become reasonably clear;
7    (e) Compelling policyholders to institute suits to recover
8amounts due under its policies by offering substantially less
9than the amounts ultimately recovered in suits brought by
11    (f) Engaging in activity which results in a
12disproportionate number of meritorious complaints against the
13insurer received by the Insurance Department;
14    (g) Engaging in activity which results in a
15disproportionate number of lawsuits to be filed against the
16insurer or its insureds by claimants;
17    (h) Refusing to pay claims without conducting a reasonable
18investigation based on all available information;
19    (i) Failing to affirm or deny coverage of claims within a
20reasonable time after proof of loss statements have been
22    (j) Attempting to settle a claim for less than the amount
23to which a reasonable person would believe the claimant was
24entitled, by reference to written or printed advertising
25material accompanying or made part of an application or
26establishing unreasonable caps or limits on paint or materials



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1when estimating vehicle repairs;
2    (k) Attempting to settle claims on the basis of an
3application which was altered without notice to, or knowledge
4or consent of, the insured;
5    (l) Making a claims payment to a policyholder or
6beneficiary omitting the coverage under which each payment is
7being made;
8    (m) Delaying the investigation or payment of claims by
9requiring an insured, a claimant, or the physicians of either
10to submit a preliminary claim report and then requiring
11subsequent submission of formal proof of loss forms, resulting
12in the duplication of verification;
13    (n) Failing in the case of the denial of a claim or the
14offer of a compromise settlement to promptly provide a
15reasonable and accurate explanation of the basis in the
16insurance policy or applicable law for such denial or
17compromise settlement;
18    (o) Failing to provide forms necessary to present claims
19within 15 working days of a request with such explanations as
20are necessary to use them effectively;
21    (p) Failing to adopt and implement reasonable standards to
22verify that a repairer designated by the insurance company to
23provide an estimate, perform repairs, or engage in any other
24service in connection with an insured loss on a vehicle is duly
25licensed under Section 5-301 of the Illinois Vehicle Code;
26    (q) Failing to provide as a persistent tendency a



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1notification on any written estimate prepared by an insurance
2company in connection with an insured loss that Illinois law
3requires that vehicle repairers must be licensed in accordance
4with Section 5-301 of the Illinois Vehicle Code;
5    (r) Failing to pay the replacement vehicle use or
6occupation tax, title, and transfer fees required by Section
7154.9 of this Code;
8    (s) (r) Engaging in any other acts which are in substance
9equivalent 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,
13title, and transfer fees on a private passenger total loss
15    (a) When an insurer determines that an insured's or
16third-party claimant's private passenger automobile is a total
17loss that is covered under the terms of a personal automobile
18policy issued or renewed on or after July 1, 2022 by the
19insurer, the insurer shall pay any use or occupation tax
20imposed by the State or a unit of local government and title
21and transfer fees as provided for in this Section. As used in
22this Section, "private passenger vehicle" means a private
23passenger motor vehicle, station wagon, or any other 4-wheeled
24motor vehicle with a load capacity of 1,500 pounds or less that
25is not used in the occupation, profession, or business of the



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1insured or third-party claimant, not used as a public or
2livery conveyance for passengers, nor rented to others.
3    (b) If the insurer elects to replace the insured vehicle,
4the insurer shall pay any use or occupation tax imposed by the
5State or a unit of local government tax and title and transfer
6fees on the replacement vehicle.
7    (c) If a cash settlement is provided for the total loss
8private passenger vehicle, the insurer shall reimburse the
9insured or third-party claimant for any use or occupation tax
10imposed by the State or a unit of local government and title
11and transfer fees if the replacement vehicle is purchased or
12leased within 30 days after the receipt of the cash settlement
13by the insured or third-party claimant and the insured or
14third-party claimant substantiates such purchase and the
15payment of such taxes and fees by submission of appropriate
16documentation to the insurer within 33 days after the receipt
17of the settlement or receipt of the required reimbursement
18form 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
16standards for implementation of this Section, including, but
17not limited to, prescribing the method of determining the
18market value of the insured's or third-party claimant's
20    Section 99. Effective date. This Act takes effect July 1,