Full Text of HB3951 103rd General Assembly
HB3951 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3951 Introduced 2/17/2023, by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Insurance Code. In provisions concerning private passenger total loss claims, provides that a 30-day period within which a replacement vehicle must be purchased or leased in order for an insurer to reimburse the insured or third-party claimant for any use or occupation tax imposed by the State or a unit of local government and title and transfer fees shall be extended for the duration of a medical condition that results in the incapacitation of the insured.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Insurance Code is amended by | 5 | | changing Section 154.9 as follows: | 6 | | (215 ILCS 5/154.9) | 7 | | Sec. 154.9. Payment of applicable use or occupation tax, | 8 | | title, and transfer fees on a private passenger total loss | 9 | | claim. | 10 | | (a) When an insurer determines that an insured's or | 11 | | third-party claimant's private passenger automobile is a total | 12 | | loss that is covered under the terms of a personal automobile | 13 | | policy issued or renewed on or after July 1, 2022 by the | 14 | | insurer, the insurer shall pay any use or occupation tax | 15 | | imposed by the State or a unit of local government and title | 16 | | and transfer fees as provided for in this Section. As used in | 17 | | this Section, "private passenger vehicle" means a private | 18 | | passenger motor vehicle, station wagon, or any other 4-wheeled | 19 | | motor vehicle with a load capacity of 1,500 pounds or less that | 20 | | is not used in the occupation, profession, or business of the | 21 | | insured or third-party claimant, not used as a public or | 22 | | livery conveyance for passengers, nor rented to others. | 23 | | (b) If the insurer elects to replace the insured vehicle, |
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| 1 | | the insurer shall pay any use or occupation tax imposed by the | 2 | | State or a unit of local government tax and title and transfer | 3 | | fees on the replacement vehicle. | 4 | | (c) If a cash settlement is provided for the total loss | 5 | | private passenger vehicle, the insurer shall reimburse the | 6 | | insured or third-party claimant for any use or occupation tax | 7 | | imposed by the State or a unit of local government and title | 8 | | and transfer fees if the replacement vehicle is purchased or | 9 | | leased within 30 days after the receipt of the cash settlement | 10 | | by the insured or third-party claimant and the insured or | 11 | | third-party claimant substantiates such purchase and the | 12 | | payment of such taxes and fees by submission of appropriate | 13 | | documentation to the insurer within 33 days after the receipt | 14 | | of the settlement or receipt of the required reimbursement | 15 | | form from the insurer, whichever is later. | 16 | | (1) With respect to leased vehicles, use or occupation | 17 | | taxes and title and transfer fees shall be deemed to be | 18 | | incurred by the insured or the third-party claimant at the | 19 | | time the lease is entered into, but only if such use or | 20 | | occupation taxes and title and transfer fees are included | 21 | | in the cost of the lease or are paid directly by the | 22 | | insured or third-party claimant. | 23 | | (2) The insurer is not required to reimburse the | 24 | | insured or third-party claimant for any use or occupation | 25 | | taxes and title or transfer fees in excess of the amount | 26 | | payable based on the value of the total loss vehicle at the |
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| 1 | | time of the loss or for taxes and title or transfer fees | 2 | | not actually paid by the insured or third-party claimant. | 3 | | (3) In lieu of this reimbursement procedure, the | 4 | | insurer may directly pay the required amount of any use or | 5 | | occupation taxes and title and transfer fees to the | 6 | | claimant at the time of settlement. | 7 | | (4) If an insurer requires a particular form be used | 8 | | to apply for reimbursement of any use or occupation taxes | 9 | | and title or transfer fees, the form must be delivered to | 10 | | the insured or third-party claimant at or before the time | 11 | | of settlement. | 12 | | (d) The 30-day period within which a replacement vehicle | 13 | | must be purchased or leased under subsection (c) shall be | 14 | | extended for the duration of a medical condition that results | 15 | | in the incapacitation of the insured. | 16 | | (e) (d) The Department may adopt rules establishing | 17 | | uniform standards for implementation of this Section, | 18 | | including, but not limited to, prescribing the method of | 19 | | determining the market value of the insured's or third-party | 20 | | claimant's vehicle.
| 21 | | (Source: P.A. 102-69, eff. 7-1-22 .)
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