Full Text of SB1367 95th General Assembly
SB1367 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB1367
Introduced 2/9/2007, by Sen. William R. Haine SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/143a |
from Ch. 73, par. 755a |
215 ILCS 5/143a-2 |
from Ch. 73, par. 755a-2 |
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Amends the Illinois Insurance Code. Provides that insurers providing liability coverage on an excess or umbrella basis or a commercial general liability policy that includes a hired or non-owned motor vehicle liability endorsement are neither required to provide, nor are they prohibited from offering or making available coverages conforming to the Code on a supplemental basis. Removes a reference to coverage on a supplemental basis. Effective immediately.
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A BILL FOR
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SB1367 |
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LRB095 10893 KBJ 31177 b |
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| AN ACT concerning insurance.
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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 Insurance Code is amended by | 5 |
| changing Sections 143a and 143a-2 as follows:
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| (215 ILCS 5/143a) (from Ch. 73, par. 755a)
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| Sec. 143a. Uninsured and hit and run motor vehicle | 8 |
| coverage.
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| (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 | 17 |
| injury or death set forth in
Section 7-203 of the Illinois | 18 |
| Vehicle Code for the
protection of persons insured thereunder | 19 |
| who are legally entitled to
recover damages from owners or | 20 |
| operators of uninsured motor vehicles and
hit-and-run motor | 21 |
| vehicles because of bodily injury, sickness or
disease, | 22 |
| including death, resulting therefrom. Insurers providing | 23 |
| liability coverage on an excess or umbrella basis or a |
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LRB095 10893 KBJ 31177 b |
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| commercial general liability policy that includes a hired or | 2 |
| non-owned motor vehicle liability endorsement are neither | 3 |
| required to provide, nor are they prohibited from offering or | 4 |
| making available coverages conforming to this Section on a | 5 |
| supplemental basis. Uninsured motor vehicle
coverage does not | 6 |
| apply to bodily injury, sickness, disease, or death resulting
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| therefrom, of an insured while occupying a motor vehicle owned | 8 |
| by, or furnished
or available for the regular use of the | 9 |
| insured, a resident spouse or resident
relative, if that motor | 10 |
| vehicle is not described in the policy under which a
claim is | 11 |
| made or is not a newly acquired or replacement motor vehicle | 12 |
| covered
under the terms of the policy. The limits for any | 13 |
| coverage for any vehicle
under the policy may not be aggregated | 14 |
| with the limits for any similar
coverage, whether provided by | 15 |
| the same insurer or another insurer, applying to
other motor | 16 |
| vehicles, for purposes of determining the total limit of | 17 |
| insurance
coverage available for bodily injury or death | 18 |
| suffered by a person in any one
accident. No
policy shall be | 19 |
| renewed, delivered, or issued for delivery in this
State unless | 20 |
| it is provided therein that any dispute
with respect to the | 21 |
| coverage and the amount of damages shall be submitted
for | 22 |
| arbitration to the
American Arbitration Association and be | 23 |
| subject to its rules for the conduct
of arbitration hearings
as | 24 |
| to all matters except medical opinions. As to medical opinions, | 25 |
| if the
amount of damages being sought is equal to or less than | 26 |
| the amount provided for
in Section 7-203 of the Illinois |
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| Vehicle Code, then the current American
Arbitration | 2 |
| Association Rules shall apply. If the amount being sought in an
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| American Arbitration Association case exceeds that amount as | 4 |
| set forth in
Section 7-203 of the Illinois Vehicle Code, then | 5 |
| the Rules of Evidence that
apply in the circuit court for | 6 |
| placing medical opinions into evidence shall
govern. | 7 |
| Alternatively, disputes with respect to damages and the | 8 |
| coverage shall
be
determined in the
following
manner: Upon the | 9 |
| insured requesting arbitration, each party to the
dispute shall | 10 |
| select an arbitrator and the 2 arbitrators so named
shall | 11 |
| select a third arbitrator. If such arbitrators are not selected
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| within 45 days from such request, either party may request that | 13 |
| the
arbitration be submitted to the American Arbitration | 14 |
| Association.
Any decision made by the arbitrators shall be | 15 |
| binding for the amount of
damages not exceeding $50,000 for | 16 |
| bodily injury to or
death of any one person, $100,000 for | 17 |
| bodily injury to or death of 2 or more
persons in any one motor | 18 |
| vehicle accident,
or the corresponding policy limits for bodily | 19 |
| injury or death, whichever is
less.
All 3-person arbitration | 20 |
| cases proceeding in accordance with any uninsured
motorist
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| coverage conducted in this State in
which the claimant is only | 22 |
| seeking monetary damages up to the limits
set forth in Section | 23 |
| 7-203 of the Illinois Vehicle Code
shall be subject to the | 24 |
| following rules:
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| (A) If at least 60 days' written
notice of the | 26 |
| intention to offer the following documents in evidence is |
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| given
to every other party, accompanied by a copy of the | 2 |
| document, a party may offer
in evidence, without foundation | 3 |
| or other proof:
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| (1) bills, records, and reports of hospitals, | 5 |
| doctors, dentists,
registered nurses, licensed | 6 |
| practical nurses, physical therapists, and other
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| healthcare providers;
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| (2) bills for drugs, medical appliances, and | 9 |
| prostheses;
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| (3) property repair bills or estimates, when | 11 |
| identified and itemized
setting forth the charges for | 12 |
| labor and material used or proposed for use in
the | 13 |
| repair of the property;
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| (4) a report of the rate of earnings and time lost | 15 |
| from work or lost
compensation prepared by an employer;
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| (5) the written opinion of an opinion witness, the | 17 |
| deposition of a
witness, and the statement of a witness | 18 |
| that the witness would be allowed to
express if | 19 |
| testifying in person, if the opinion or statement is | 20 |
| made by
affidavit or by
certification as provided in | 21 |
| Section 1-109 of the Code of Civil Procedure;
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| (6) any other document not specifically covered by | 23 |
| any of the foregoing
provisions that is otherwise | 24 |
| admissible under the rules of evidence.
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| Any party receiving a notice under this paragraph (A) | 26 |
| may apply to the
arbitrator or panel of arbitrators, as the |
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LRB095 10893 KBJ 31177 b |
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| case may be, for the issuance of a
subpoena directed to the | 2 |
| author or maker or custodian of the document that is
the | 3 |
| subject of the notice, requiring the person subpoenaed to | 4 |
| produce copies of
any additional documents as may be | 5 |
| related to the subject matter of the
document that is the | 6 |
| subject of the notice. Any such subpoena shall be issued
in | 7 |
| substantially similar form and served by notice as provided | 8 |
| by Illinois
Supreme Court Rule 204(a)(4). Any such subpoena | 9 |
| shall be returnable not
less than 5 days before the | 10 |
| arbitration hearing.
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| (B) Notwithstanding the provisions of Supreme Court | 12 |
| Rule 213(g), a party
who proposes to use a written opinion | 13 |
| of an expert or opinion witness or the
testimony of
an | 14 |
| expert or opinion witness at the hearing may do so provided | 15 |
| a written notice
of that
intention is given to every other | 16 |
| party not less than 60 days prior to the date
of hearing, | 17 |
| accompanied by a statement containing the identity of the
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| witness, his or her qualifications, the subject matter, the | 19 |
| basis of the
witness's conclusions,
and his or her opinion.
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| (C) Any other party may subpoena the author or maker of | 21 |
| a document
admissible under this subsection, at that | 22 |
| party's expense, and examine the
author
or maker as if | 23 |
| under cross-examination. The provisions of Section 2-1101 | 24 |
| of
the
Code of Civil Procedure shall be applicable to | 25 |
| arbitration hearings, and it
shall be the duty of a party | 26 |
| requesting the subpoena to modify the form to show
that the |
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LRB095 10893 KBJ 31177 b |
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| appearance is set before an arbitration panel and to give | 2 |
| the time and
place set for the hearing.
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| (D) The provisions of Section 2-1102 of the Code of | 4 |
| Civil Procedure shall
be
applicable to arbitration | 5 |
| hearings under this subsection.
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| (2) No policy insuring
against loss resulting from | 7 |
| liability imposed by law for property damage
arising out of the | 8 |
| ownership, maintenance, or use of a motor vehicle shall
be | 9 |
| renewed, delivered, or issued for delivery in this State with | 10 |
| respect
to any private passenger or recreational motor vehicle | 11 |
| that is
designed for use on public highways and that is either | 12 |
| required to be
registered in this State or is principally | 13 |
| garaged in this State and
is not covered by collision insurance | 14 |
| under the provisions of such
policy, unless coverage is made | 15 |
| available in the amount of the actual
cash value of the motor | 16 |
| vehicle described in the policy or $15,000
whichever is less, | 17 |
| subject to a $250 deductible, for the protection of
persons | 18 |
| insured thereunder who are legally entitled to recover damages | 19 |
| from
owners or operators of uninsured motor vehicles and | 20 |
| hit-and-run motor
vehicles because of property damage to the | 21 |
| motor vehicle described in the
policy.
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| There shall be no liability imposed under the uninsured | 23 |
| motorist
property damage coverage required by this subsection | 24 |
| if the owner or
operator of the at-fault uninsured motor | 25 |
| vehicle or hit-and-run motor
vehicle cannot be identified. This | 26 |
| subsection shall not apply to any
policy which does not provide |
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LRB095 10893 KBJ 31177 b |
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| primary motor vehicle liability insurance for
liabilities | 2 |
| arising from the maintenance, operation, or use of a
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| specifically insured motor vehicle.
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| Each insurance company providing motor vehicle property | 5 |
| damage liability
insurance shall advise applicants of the | 6 |
| availability of uninsured motor
vehicle property damage | 7 |
| coverage, the premium therefor, and provide a brief
description | 8 |
| of the coverage. Each insurer, with respect to the initial
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| renewal, reinstatement, or reissuance of a policy of motor | 10 |
| vehicle property
damage liability insurance shall provide
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| present policyholders with the same information in writing. | 12 |
| That information
need be given only once and shall not be | 13 |
| required in any subsequent renewal,
reinstatement or | 14 |
| reissuance, substitute, amended, replacement or
supplementary | 15 |
| policy. No written rejection shall be required, and
the absence | 16 |
| of a premium payment for uninsured motor vehicle property | 17 |
| damage
shall constitute conclusive proof that the applicant or | 18 |
| policyholder has
elected not to accept uninsured motorist | 19 |
| property damage coverage.
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| An insurance company issuing uninsured motor vehicle
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| property damage coverage may provide that:
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| (i) Property damage losses recoverable thereunder | 23 |
| shall be limited to
damages caused by the actual physical | 24 |
| contact of an uninsured motor vehicle
with the insured | 25 |
| motor vehicle.
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| (ii) There shall be no coverage for loss of use of the |
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LRB095 10893 KBJ 31177 b |
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| insured motor
vehicle and no coverage for loss or damage to | 2 |
| personal property located in
the insured motor vehicle.
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| (iii) Any claim submitted shall include the name and | 4 |
| address of the
owner of the at-fault uninsured motor | 5 |
| vehicle, or a registration number and
description of the | 6 |
| vehicle, or any other available information to
establish | 7 |
| that there is no applicable motor vehicle property damage | 8 |
| liability
insurance.
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| Any dispute with respect to the coverage and the amount of
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| damages shall be submitted for
arbitration to the American | 11 |
| Arbitration Association and be subject to its
rules for the | 12 |
| conduct of arbitration hearings or for determination in
the | 13 |
| following manner: Upon the insured requesting arbitration, | 14 |
| each party
to the dispute shall select an arbitrator and the 2 | 15 |
| arbitrators so named
shall select a third arbitrator. If such | 16 |
| arbitrators are not selected
within 45 days from such request, | 17 |
| either party may request that the
arbitration be submitted to | 18 |
| the American Arbitration Association.
Any arbitration | 19 |
| proceeding under this subsection seeking recovery for
property | 20 |
| damages shall be
subject to the following rules:
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| (A) If at least 60 days' written
notice of the | 22 |
| intention to offer the following documents in evidence is | 23 |
| given
to every other party, accompanied by a copy of the | 24 |
| document, a party may offer
in evidence, without foundation | 25 |
| or other proof:
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| (1) property repair bills or estimates, when |
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LRB095 10893 KBJ 31177 b |
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| identified and itemized
setting forth the charges for | 2 |
| labor and material used or proposed for use in
the | 3 |
| repair of the property;
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| (2) the written opinion of an opinion witness, the | 5 |
| deposition of a
witness, and the statement of a witness | 6 |
| that the witness would be allowed to
express if | 7 |
| testifying in person, if the opinion or statement is | 8 |
| made by
affidavit or by
certification as provided in | 9 |
| Section 1-109 of the Code of Civil Procedure;
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| (3) any other document not specifically covered by | 11 |
| any of the foregoing
provisions that is otherwise | 12 |
| admissible under the rules of evidence.
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| Any party receiving a notice under this paragraph (A) | 14 |
| may apply to the
arbitrator or panel of arbitrators, as the | 15 |
| case may be, for the issuance of a
subpoena directed to the | 16 |
| author or maker or custodian of the document that is
the | 17 |
| subject of the notice, requiring the person subpoenaed to | 18 |
| produce copies of
any additional documents as may be | 19 |
| related to the subject matter of the
document that is the | 20 |
| subject of the notice. Any such subpoena shall be issued
in | 21 |
| substantially similar form and served by notice as provided | 22 |
| by Illinois
Supreme Court Rule 204(a)(4). Any such subpoena | 23 |
| shall be returnable not
less than 5 days before the | 24 |
| arbitration hearing.
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| (B) Notwithstanding the provisions of Supreme Court | 26 |
| Rule 213(g), a party
who proposes to use a written opinion |
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LRB095 10893 KBJ 31177 b |
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| of an expert or opinion witness or the
testimony of
an | 2 |
| expert or opinion witness at the hearing may do so provided | 3 |
| a written notice
of that
intention is given to every other | 4 |
| party not less than 60 days prior to the date
of hearing, | 5 |
| accompanied by a statement containing the identity of the
| 6 |
| witness, his or her qualifications, the subject matter, the | 7 |
| basis of the
witness's conclusions,
and his or her opinion.
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| (C) Any other party may subpoena the author or maker of | 9 |
| a document
admissible under this subsection, at that | 10 |
| party's expense, and examine the
author
or maker as if | 11 |
| under cross-examination. The provisions of Section 2-1101 | 12 |
| of
the
Code of Civil Procedure shall be applicable to | 13 |
| arbitration hearings, and it
shall be the duty of a party | 14 |
| requesting the subpoena to modify the form to show
that the | 15 |
| appearance is set before an arbitration panel and to give | 16 |
| the time and
place set for the hearing.
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| (D) The provisions of Section 2-1102 of the Code of | 18 |
| Civil Procedure shall
be
applicable to arbitration | 19 |
| hearings under this subsection.
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| (3) For the purpose of the coverage the term "uninsured | 21 |
| motor
vehicle" includes, subject to the terms and conditions of | 22 |
| the coverage,
a motor vehicle where on, before or after the | 23 |
| accident date the
liability insurer thereof is unable to make | 24 |
| payment with respect to the
legal liability of its insured | 25 |
| within the limits specified in the policy
because of the entry | 26 |
| by a court of competent jurisdiction of an order of
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| rehabilitation or liquidation by reason of insolvency on or | 2 |
| after the
accident date. An insurer's extension of coverage, as | 3 |
| provided in this
subsection, shall be applicable to all | 4 |
| accidents occurring after July
1, 1967 during a policy period | 5 |
| in which its insured's uninsured motor
vehicle coverage is in | 6 |
| effect. Nothing in this Section may be construed
to prevent any | 7 |
| insurer from extending coverage under terms and
conditions more | 8 |
| favorable to its insureds than is required by this Section.
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| (4) In the event of payment to any person under the | 10 |
| coverage
required by this Section and subject to the terms and | 11 |
| conditions of the
coverage, the insurer making the payment | 12 |
| shall, to the extent thereof,
be entitled to the proceeds of | 13 |
| any settlement or judgment resulting from
the exercise of any | 14 |
| rights of recovery of the person against any person
or | 15 |
| organization legally responsible for the property damage, | 16 |
| bodily
injury or death for which the payment is made, including | 17 |
| the proceeds
recoverable from the assets of the insolvent | 18 |
| insurer. With respect to
payments made by reason of the | 19 |
| coverage described in subsection (3), the
insurer making such | 20 |
| payment shall not be entitled to any right of recovery
against | 21 |
| the tort-feasor in excess of the proceeds recovered from the | 22 |
| assets
of the insolvent insurer of the tort-feasor.
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| (5) This amendatory Act of 1967 shall not be construed to | 24 |
| terminate
or reduce any insurance coverage or any right of any | 25 |
| party under this
Code in effect before July 1, 1967. This | 26 |
| amendatory Act of 1990 shall not
be construed to terminate or |
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LRB095 10893 KBJ 31177 b |
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| reduce any insurance coverage or any right of
any party under | 2 |
| this Code in effect before its effective date.
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| (6) Failure of the motorist from whom the claimant is | 4 |
| legally
entitled to recover damages to file the appropriate | 5 |
| forms with the
Safety Responsibility Section of the Department | 6 |
| of Transportation within
120 days of the accident date shall | 7 |
| create a rebuttable presumption that
the motorist was uninsured | 8 |
| at the time of the injurious occurrence.
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| (7) An insurance carrier may upon good cause require the
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| insured to commence a legal action against the owner or | 11 |
| operator of an
uninsured motor vehicle before good faith | 12 |
| negotiation with the carrier. If
the action is commenced at the | 13 |
| request of the insurance carrier, the
carrier shall pay to the | 14 |
| insured, before the action is commenced, all court
costs, jury | 15 |
| fees and sheriff's fees arising from the action.
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| The changes made by this amendatory Act of 1997 apply to | 17 |
| all policies of
insurance amended, delivered, issued, or | 18 |
| renewed on and after the effective
date of this amendatory Act | 19 |
| of 1997.
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| (Source: P.A. 93-485, eff. 1-1-04.)
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| (215 ILCS 5/143a-2) (from Ch. 73, par. 755a-2)
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| Sec. 143a-2. (1) Additional uninsured motor vehicle
| 23 |
| coverage. No policy insuring against loss resulting from | 24 |
| liability imposed
by law for bodily injury or death suffered by | 25 |
| any person arising out of the
ownership, maintenance or use of |
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LRB095 10893 KBJ 31177 b |
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| a motor vehicle shall be renewed or
delivered or issued for | 2 |
| delivery in this State with respect to any motor
vehicle | 3 |
| designed for use on public highways and required to be | 4 |
| registered
in this State unless uninsured motorist coverage as | 5 |
| required in Section
143a of this Code is included in an amount | 6 |
| equal to the insured's bodily
injury liability limits unless | 7 |
| specifically rejected by the insured as provided in subsection
| 8 |
| paragraph (2) of this Section. Each
insurance company providing | 9 |
| the coverage must provide applicants with a
brief description | 10 |
| of the coverage and advise them of their right to reject
the | 11 |
| coverage in excess of the limits set forth in Section 7-203 of | 12 |
| The
Illinois Vehicle Code. The provisions of this amendatory | 13 |
| Act of 1990 apply
to policies of insurance applied for after | 14 |
| June 30, 1991.
| 15 |
| (2) Right of rejection of additional uninsured motorist
| 16 |
| coverage. Any named insured or applicant may reject additional | 17 |
| uninsured
motorist coverage in excess of the limits set forth | 18 |
| in Section 7-203
of the Illinois Vehicle Code by making a | 19 |
| written request for limits of uninsured motorist coverage which | 20 |
| are less than bodily injury liability limits or a written | 21 |
| rejection of limits in excess of those required by law. This | 22 |
| election or rejection shall be binding on all persons insured | 23 |
| under the policy. In those cases where the insured has elected
| 24 |
| to purchase limits of uninsured motorist coverage which are | 25 |
| less than
bodily injury liability limits or to reject limits in | 26 |
| excess of those
required by law, the insurer need not provide |
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LRB095 10893 KBJ 31177 b |
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| in any renewal,
reinstatement, reissuance, substitute, | 2 |
| amended, replacement or
supplementary policy, coverage in | 3 |
| excess of that elected by the insured in
connection with a | 4 |
| policy previously issued to such insured by the same
insurer | 5 |
| unless the insured subsequently makes a written request for
| 6 |
| such coverage.
| 7 |
| (3) The original document indicating the applicant's | 8 |
| selection of
uninsured motorist coverage limits shall | 9 |
| constitute sufficient evidence of
the applicant's selection of | 10 |
| uninsured motorist coverage limits. For purposes of this
| 11 |
| Section any reproduction of the document by means of | 12 |
| photograph,
photostat, microfiche, computerized optical | 13 |
| imaging process, or other
similar process or means of | 14 |
| reproduction shall be deemed the equivalent of
the original | 15 |
| document.
| 16 |
| (4) For the purpose of this Code the term "underinsured | 17 |
| motor vehicle"
means a motor vehicle whose ownership, | 18 |
| maintenance or use has resulted in
bodily injury or death of | 19 |
| the insured, as defined in the policy, and for
which the sum of | 20 |
| the limits of liability under all bodily injury liability
| 21 |
| insurance policies or under bonds or other security required to | 22 |
| be
maintained under Illinois law applicable to the driver or to | 23 |
| the person or
organization legally responsible for such vehicle | 24 |
| and applicable to the
vehicle, is less than the limits for | 25 |
| underinsured coverage provided the
insured as defined in the | 26 |
| policy at the time of the accident. The limits
of liability for |
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LRB095 10893 KBJ 31177 b |
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| an insurer providing underinsured motorist coverage shall
be | 2 |
| the limits of such coverage, less those amounts actually | 3 |
| recovered under
the applicable bodily injury insurance | 4 |
| policies, bonds or other security
maintained on the | 5 |
| underinsured motor vehicle.
| 6 |
| On or after July 1, 1983, no policy insuring against loss | 7 |
| resulting
from liability imposed by law for bodily injury or | 8 |
| death suffered by any
person arising out of the ownership, | 9 |
| maintenance or use of a motor vehicle
shall be renewed or | 10 |
| delivered or issued for delivery in this State with respect
to | 11 |
| any motor vehicle designed for use on public highways and | 12 |
| required to be
registered in this State unless underinsured | 13 |
| motorist coverage is included
in such policy in an amount equal | 14 |
| to the total amount of uninsured motorist
coverage provided in | 15 |
| that policy where such uninsured motorist coverage
exceeds the | 16 |
| limits set forth in Section 7-203 of the Illinois Vehicle Code.
| 17 |
| The changes made to this subsection (4) by this amendatory | 18 |
| Act of the 93rd General Assembly apply to policies issued or | 19 |
| renewed on or after December 1, 2004.
| 20 |
| (5) Scope. Nothing herein shall prohibit an insurer from | 21 |
| setting forth
policy terms and conditions which provide that if | 22 |
| the insured has coverage
available under this Section under | 23 |
| more than one policy or provision of
coverage, any recovery or | 24 |
| benefits may be equal to, but may not exceed,
the higher of the | 25 |
| applicable limits of the respective coverage, and the
limits of | 26 |
| liability under this Section shall not be increased because
of |
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LRB095 10893 KBJ 31177 b |
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| multiple motor vehicles covered under the same policy of | 2 |
| insurance.
Insurers providing liability coverage on an excess | 3 |
| or umbrella basis are
neither required to provide, nor are they | 4 |
| prohibited from offering or
making available , coverages | 5 |
| conforming to this Section on a supplemental
basis . | 6 |
| Notwithstanding the provisions of this Section, an insurer | 7 |
| shall
not be prohibited from solely providing a combination of | 8 |
| uninsured and
underinsured motorist coverages where the limits | 9 |
| of liability under each
coverage is in the same amount. | 10 |
| Insurers providing liability coverage on an excess or umbrella | 11 |
| basis or a commercial general liability policy that includes a | 12 |
| hired or non-owned motor vehicle liability endorsement are | 13 |
| neither required to provide, nor are they prohibited from | 14 |
| offering or making available coverages conforming to this | 15 |
| Section on a supplemental basis.
| 16 |
| (6) Subrogation against underinsured motorists. No insurer | 17 |
| shall exercise
any right of subrogation under a policy | 18 |
| providing additional uninsured motorist
coverage against an | 19 |
| underinsured motorist where the insurer has been provided
with | 20 |
| written notice in advance of a settlement between its insured | 21 |
| and the
underinsured motorist and the insurer fails to advance | 22 |
| a payment to
the insured, in an amount equal to the tentative | 23 |
| settlement, within 30 days
following receipt of such notice.
| 24 |
| (7) A policy which provides underinsured motor vehicle | 25 |
| coverage may
include a clause which denies payment until the | 26 |
| limits of liability or
portion thereof under
all bodily injury |
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| 1 |
| liability insurance policies applicable to the
underinsured | 2 |
| motor vehicle and its operators have been partially or fully
| 3 |
| exhausted
by payment
of judgment or settlement. A judgment or | 4 |
| settlement of the bodily injury
claim in an amount less than | 5 |
| the limits of liability of the bodily injury
coverages | 6 |
| applicable to the claim shall not preclude the claimant from | 7 |
| making
an underinsured motorist claim against the underinsured | 8 |
| motorist coverage.
Any such provision in a policy of insurance
| 9 |
| shall be inapplicable if the insured, or the legal | 10 |
| representative of the
insured, and the insurer providing | 11 |
| underinsured motor vehicle coverage
agree that the insured has | 12 |
| suffered bodily injury or death as the result of
the negligent | 13 |
| operation, maintenance, or use of an underinsured motor
vehicle | 14 |
| and, without arbitration, agree also on the amount of damages | 15 |
| that
the insured is legally entitled to collect. The maximum | 16 |
| amount payable
pursuant to such an underinsured motor vehicle | 17 |
| insurance settlement
agreement shall not exceed the amount by | 18 |
| which the limits of the
underinsured motorist coverage exceed | 19 |
| the limits of the bodily injury
liability insurance of the | 20 |
| owner or operator of the underinsured motor
vehicle. Any such | 21 |
| agreement shall be final as to the amount due and shall
be | 22 |
| binding upon both the insured and the underinsured motorist | 23 |
| insurer
regardless of the amount of any judgment, or any | 24 |
| settlement reached between
any insured and the person or | 25 |
| persons responsible for the accident. No
such settlement | 26 |
| agreement shall be concluded unless: (i) the insured has
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| complied with all other applicable policy terms and conditions; | 2 |
| and (ii)
before the conclusion of the settlement agreement, the | 3 |
| insured has filed
suit against the underinsured motor vehicle | 4 |
| owner or operator and has not
abandoned the suit, or settled | 5 |
| the suit without preserving the rights of
the insurer providing | 6 |
| underinsured motor vehicle coverage in the manner
described in | 7 |
| subsection
paragraph (6) of this Section.
| 8 |
| (Source: P.A. 93-762, eff. 7-16-04.)
| 9 |
| Section 99. Effective date. This Act takes effect upon | 10 |
| becoming law.
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|