Full Text of SB0626 99th General Assembly
SB0626enr 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning transportation.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Vehicle Code is amended by changing | 5 | | Section 6-305.2 as follows:
| 6 | | (625 ILCS 5/6-305.2)
| 7 | | Sec. 6-305.2. Limited liability for damage.
| 8 | | (a) Damage to private
passenger vehicle. A person who rents | 9 | | a motor vehicle to another may hold
the renter liable to the | 10 | | extent permitted under subsections (b) through (d) for
physical | 11 | | or mechanical damage to the rented motor vehicle that occurs | 12 | | during
the time the motor vehicle is under the rental | 13 | | agreement.
| 14 | | (b) Limits on liability : vehicle MSRP $50,000 or less . The | 15 | | total liability of a renter under subsection
(a) for damage to | 16 | | a motor vehicle with a Manufacturer's Suggested Retail Price | 17 | | (MSRP) of $50,000 or less may not exceed all of the following:
| 18 | | (1) The lesser of:
| 19 | | (A) Actual and reasonable costs that the person who | 20 | | rents a motor
vehicle to another incurred to repair the | 21 | | motor vehicle or that the rental
company would have | 22 | | incurred if the motor vehicle had been
repaired, which | 23 | | shall reflect any discounts, price reductions, or |
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| 1 | | adjustments
available to the rental company; or
| 2 | | (B) The fair market value of that motor vehicle | 3 | | immediately before the
damage occurred, as determined | 4 | | in the customary market for the retail sale of
that | 5 | | motor vehicle; and
| 6 | | (2) Actual and reasonable costs incurred by the loss | 7 | | due to theft of the
rental motor vehicle up to $2,000; | 8 | | provided, however, that if it is
established that the | 9 | | renter or an authorized driver failed to exercise ordinary
| 10 | | care while in possession of the vehicle or that the renter | 11 | | or an authorized
driver committed or aided and abetted the | 12 | | commission of the theft, then the
damages shall be the | 13 | | actual and reasonable costs of the rental vehicle up to
its | 14 | | fair market value, as determined by the customary market | 15 | | for the sale of
that vehicle.
| 16 | | For purposes of this subsection (b), for the period prior | 17 | | to June 1, 1998,
the
maximum amount that may be recovered from | 18 | | an authorized driver shall not exceed
$6,000; for the period | 19 | | beginning June 1, 1998 through May 31, 1999, the maximum
| 20 | | recovery shall not exceed $7,500; and for the period beginning | 21 | | June 1, 1999
through May 31, 2000, the maximum recovery shall | 22 | | not exceed $9,000. Beginning
June
1, 2000,
and annually each | 23 | | June 1 thereafter, the maximum amount that may be recovered
| 24 | | from an authorized driver shall be increased by $500 above the | 25 | | maximum recovery
allowed immediately prior to June 1 of that | 26 | | year.
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| 1 | | (b-5) Limits on liability: vehicle MSRP more than $50,000. | 2 | | The total liability of a renter under subsection (a) for damage | 3 | | to a motor vehicle with a Manufacturer's Suggested Retail Price | 4 | | (MSRP) of more than $50,000 may not exceed all of the | 5 | | following: | 6 | | (1) the lesser of: | 7 | | (A) actual and reasonable costs that the person who | 8 | | rents a motor vehicle to another incurred to repair the | 9 | | motor vehicle or that the rental company would have | 10 | | incurred if the motor vehicle had been repaired, which | 11 | | shall reflect any discounts, price reductions, or | 12 | | adjustments available to the rental company; or | 13 | | (B) the fair market value of that motor vehicle | 14 | | immediately before the damage occurred, as determined | 15 | | in the customary market for the retail sale of that | 16 | | motor vehicle; and | 17 | | (2) the actual and reasonable costs incurred by the | 18 | | loss due to theft of the rental motor vehicle up to | 19 | | $40,000. | 20 | | The maximum recovery for a motor vehicle with a | 21 | | Manufacturer's Suggested Retail Price (MSRP) of more than | 22 | | $50,000 under this subsection (b-5) shall not exceed $40,000 on | 23 | | the effective date of this amendatory Act of the 99th General | 24 | | Assembly. On October 1, 2016, and for the next 3 years | 25 | | thereafter, the maximum amount that may be recovered from an | 26 | | authorized driver under this subsection (b-5) shall be |
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| 1 | | increased by $2,500 above the prior year's maximum recovery. On | 2 | | October 1, 2020, and for each year thereafter, the maximum | 3 | | amount that may be recovered from an authorized driver under | 4 | | this subsection (b-5) shall be increased by $1,000 above the | 5 | | prior year's maximum recovery. | 6 | | (c) Multiple recoveries prohibited. Any person who rents a | 7 | | motor
vehicle to another may not hold the renter liable for any | 8 | | amounts that the
rental company recovers from any other party.
| 9 | | (d) Repair estimates. A person who rents a motor vehicle to | 10 | | another may
not collect or attempt to collect the amount | 11 | | described in subsection (b) or (b-5) unless
the rental company | 12 | | obtains an estimate from a repair company or an appraiser in
| 13 | | the business of providing such appraisals on the costs of | 14 | | repairing the motor
vehicle, makes a copy of the estimate | 15 | | available upon request to the renter who
may be liable under | 16 | | subsection (a), or the insurer of the renter, and submits a
| 17 | | copy of the estimate with any claim to collect the amount | 18 | | described in
subsection (b) or (b-5) . In order to collect the | 19 | | amount described in subsection (b-5), a person renting a motor | 20 | | vehicle to another must also provide the renter's personal | 21 | | insurance company with reasonable notice and an opportunity to | 22 | | inspect damages.
| 23 | | (d-5) In the event of loss due to theft of the rental motor | 24 | | vehicle with a MSRP more than $50,000, the rental company shall | 25 | | provide reasonable notice of the theft to the renter's personal | 26 | | insurance company. |
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| 1 | | (e) Duty to mitigate. A claim against a renter resulting | 2 | | from damage or
loss to a rental vehicle must be reasonably and | 3 | | rationally related to the
actual loss incurred. A rental | 4 | | company shall mitigate damages where possible
and shall not | 5 | | assert or collect any claim for physical damage which exceeds | 6 | | the
actual costs of the repair, including all discounts or | 7 | | price reductions.
| 8 | | (f) No rental company shall require a deposit or an advance | 9 | | charge
against
the credit card of a renter, in any form, for | 10 | | damages to a vehicle which is in
the renter's possession, | 11 | | custody, or control. No rental company shall require
any | 12 | | payment for damage to the rental vehicle, upon the renter's | 13 | | return of the
vehicle in a
damaged condition, until after the | 14 | | cost of the damage to the vehicle and
liability therefor is | 15 | | agreed to between the rental company and renter or is
| 16 | | determined pursuant to law.
| 17 | | (g) If insurance coverage exists under the renter's | 18 | | personal insurance
policy and the coverage is confirmed during | 19 | | regular business hours, the renter
may require that the rental
| 20 | | company must submit any claims to the renter's personal | 21 | | insurance carrier as
the renter's agent. The rental company | 22 | | shall not make any written or oral
representations that it will | 23 | | not present claims or negotiate with the renter's
insurance | 24 | | carrier. For purposes of this Section, confirmation of coverage
| 25 | | includes telephone confirmation from insurance company | 26 | | representatives during
regular business hours. After
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| 1 | | confirmation of coverage, the amount of claim shall be resolved | 2 | | between the
insurance carrier and the rental company.
| 3 | | (Source: P.A. 90-113, eff. 7-14-97.)
| 4 | | Section 10. The Renter's Financial Responsibility and | 5 | | Protection Act is amended by changing Section 15 as follows:
| 6 | | (625 ILCS 27/15)
| 7 | | Sec. 15. Prohibited practices.
| 8 | | (a) A rental company may not sell a damage waiver unless | 9 | | the renter agrees
to the damage waiver in writing at or prior | 10 | | to the time the rental agreement
is executed.
| 11 | | (b) A rental company may not void a damage waiver except | 12 | | for one or more of
the following reasons:
| 13 | | (1) Damage or loss while the rental vehicle is used to | 14 | | carry persons or
property for a charge or fee.
| 15 | | (2) Damage or loss during an organized or agreed upon | 16 | | racing or speed
contest or demonstration or pushing or | 17 | | pulling activity in which the rental
vehicle is actively | 18 | | involved.
| 19 | | (3) Damage or loss that could reasonably be expected | 20 | | from an intentional
or criminal act of the driver other | 21 | | than a traffic infraction.
| 22 | | (4) Damage or loss to any rental vehicle resulting from | 23 | | any auto business
operation, including but not limited to | 24 | | repairing, servicing, testing, washing,
parking, storing, |
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| 1 | | or selling of automobiles.
| 2 | | (5) Damage or loss occurring to a rental vehicle if the | 3 | | rental contract is
based on fraudulent or material | 4 | | misrepresentation by the renter.
| 5 | | (6) Damage or loss arising out of the use of the rental | 6 | | vehicle outside
the continental United States when such use | 7 | | is specifically prohibited in the
rental
agreement.
| 8 | | (7) Damage or loss occurring while the rental vehicle | 9 | | is operated by a
driver not permitted under the rental | 10 | | agreement. | 11 | | (8) Damage or loss occurring while the rental vehicle | 12 | | is operated by a driver under the influence of alcohol, | 13 | | other drug or drugs, intoxicating compound or compounds, or | 14 | | any combination thereof and convicted of violating | 15 | | subsection (a) of Section 11-501 of the Illinois Vehicle | 16 | | Code.
| 17 | | (c) A rental company shall not charge more than $12.50 per | 18 | | full or partial 24
hour rental day for a collision damage
| 19 | | waiver prior to January 1, 2014. Beginning January 1, 2014, a | 20 | | rental company shall not charge more than $13.50 per full or | 21 | | partial 24 hour rental day for a collision damage waiver.
| 22 | | (d) A rental company may offer a collision damage waiver on | 23 | | any rental vehicle having a value in excess of a Manufacturer's | 24 | | Suggested Retail Price (MSRP) of $50,000; however, the | 25 | | provisions of subsection (c) of this Section shall not apply to | 26 | | collision damage waivers under this subsection (d). |
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| 1 | | (Source: P.A. 98-428, eff. 8-16-13.)
| 2 | | Section 99. Effective date. This Act takes effect October | 3 | | 1, 2015. |
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