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90_HB0289eng
215 ILCS 5/143a from Ch. 73, par. 755a
Amends the Illinois Insurance Code in relation to
uninsured and hit and run motor vehicle coverage. Provides
that a decision made by arbitrators shall be binding in cases
subject to the mandatory arbitration requirements under the
Code of Civil Procedure. Establishes rules for the conduct
of arbitration proceedings relating to admissibility of
documents, opinions of opinion witnesses, right to subpoena
makers of documents, and adverse examination of parties or
agents.
LRB9000209JSgc
HB0289 Engrossed LRB9000209JSgc
1 AN ACT to amend the Illinois Insurance Code by changing
2 Section 143a.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 changing Section 143a as follows:
7 (215 ILCS 5/143a) (from Ch. 73, par. 755a)
8 Sec. 143a. Uninsured and hit and run motor vehicle
9 coverage.
10 (1) No policy insuring against loss resulting from
11 liability imposed by law for bodily injury or death suffered
12 by any person arising out of the ownership, maintenance or
13 use of a motor vehicle that is designed for use on public
14 highways and that is either required to be registered in this
15 State or is principally garaged in this State shall be
16 renewed, delivered, or issued for delivery in this State
17 unless coverage is provided therein or supplemental thereto,
18 in limits for bodily injury or death set forth in Section
19 7-203 of the Illinois Vehicle Code for the protection of
20 persons insured thereunder who are legally entitled to
21 recover damages from owners or operators of uninsured motor
22 vehicles and hit-and-run motor vehicles because of bodily
23 injury, sickness or disease, including death, resulting
24 therefrom. Uninsured motor vehicle coverage does not apply to
25 bodily injury, sickness, disease, or death resulting
26 therefrom, of an insured while occupying a motor vehicle
27 owned by, or furnished or available for the regular use of
28 the insured, a resident spouse or resident relative, if that
29 motor vehicle is not described in the policy under which a
30 claim is made or is not a newly acquired or replacement motor
31 vehicle covered under the terms of the policy. The limits
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1 for any coverage for any vehicle under the policy may not be
2 aggregated with the limits for any similar coverage, whether
3 provided by the same insurer or another insurer, applying to
4 other motor vehicles, for purposes of determining the total
5 limit of insurance coverage available for bodily injury or
6 death suffered by a person in any one accident. No policy
7 shall be renewed, delivered, or issued for delivery in this
8 State unless it is provided therein that any dispute with
9 respect to the coverage and the amount of damages shall be
10 submitted for arbitration to the American Arbitration
11 Association and be subject to its rules for the conduct of
12 arbitration hearings as to all matters except medical
13 opinions. As to medical opinions, if the amount of damages
14 being sought is equal to or less than the amount provided for
15 in Section 7-203 of the Illinois Vehicle Code, then the
16 current American Arbitration Association Rules shall apply.
17 If the amount being sought in an American Arbitration
18 Association case exceeds that amount as set forth in Section
19 7-203 of the Illinois Vehicle Code, then the Rules of
20 Evidence that apply in the circuit court for placing medical
21 opinions into evidence shall govern. Alternatively, disputes
22 with respect to damages and coverage shall be determined or
23 for determination in the following manner: Upon the insured
24 requesting arbitration, each party to the dispute shall
25 select an arbitrator and the 2 arbitrators so named shall
26 select a third arbitrator. If such arbitrators are not
27 selected within 45 days from such request, either party may
28 request that the arbitration be submitted to the American
29 Arbitration Association. Any decision made by the arbitrators
30 shall be binding for the amount of damages not exceeding the
31 limits for bodily injury or death set forth in Section 7-203
32 of the Illinois Vehicle Code. All 3-person arbitration cases
33 proceeding in accordance with any uninsured motorist or
34 additional uninsured motorist coverage or underinsured
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1 motorist coverage conducted in this State in which the
2 claimant is only seeking monetary damages up to the limits
3 set forth in Section 7-203 of the Illinois Vehicle Code shall
4 be subject to the following rules:
5 (A) If at least 60 days written notice of the
6 intention to offer the following documents in evidence is
7 given to every other party, accompanied by a copy of the
8 document, a party may offer in evidence, without
9 foundation or other proof:
10 (1) bills, records, and reports of hospitals,
11 doctors, dentists, registered nurses, licensed
12 practical nurses, physical therapists, and other
13 healthcare providers;
14 (2) bills for drugs, medical appliances, and
15 prostheses;
16 (3) property repair bills or estimates, when
17 identified and itemized setting forth the charges
18 for labor and material used or proposed for use in
19 the repair of the property;
20 (4) a report of the rate of earnings and time
21 lost from work or lost compensation prepared by an
22 employer;
23 (5) the written opinion of an opinion witness,
24 the deposition of a witness, and the statement of a
25 witness that the witness would be allowed to express
26 if testifying in person, if the opinion or statement
27 is made by affidavit or by certification as provided
28 in Section 1-109 of the Code of Civil Procedure;
29 (6) any other document not specifically
30 covered by any of the foregoing provisions that is
31 otherwise admissible under the rules of evidence.
32 Any party receiving a notice under this paragraph
33 (A) may apply to the arbitrator or panel of arbitrators,
34 as the case may be, for the issuance of a subpoena
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1 directed to the author or maker or custodian of the
2 document that is the subject of the notice, requiring the
3 person subpoenaed to produce copies of any additional
4 documents as may be related to the subject matter of the
5 document that is the subject of the notice. Any such
6 subpoena shall be issued in substantially similar form
7 and served by notice as provided by Illinois Supreme
8 Court Rule 204(a)(4). Any such subpoena shall be
9 returnable not less than 5 days before the arbitration
10 hearing.
11 (B) Notwithstanding the provisions of Supreme Court
12 Rule 213(g), a party who proposes to use a written
13 opinion of an expert or opinion witness or the testimony
14 of an expert or opinion witness at the hearing may do so
15 provided a written notice of that intention is given to
16 every other party not less than 60 days prior to the date
17 of hearing, accompanied by a statement containing the
18 identity of the witness, his or her qualifications, the
19 subject matter, the basis of the witness's conclusions,
20 and his or her opinion.
21 (C) Any other party may subpoena the author or
22 maker of a document admissible under this subsection, at
23 that party's expense, and examine the author or maker as
24 if under cross-examination. The provisions of Section
25 2-1101 of the Code of Civil Procedure shall be applicable
26 to arbitration hearings, and it shall be the duty of a
27 party requesting the subpoena to modify the form to show
28 that the appearance is set before an arbitration panel
29 and to give the time and place set for the hearing.
30 (D) The provisions of Section 2-1102 of the Code of
31 Civil Procedure shall be applicable to arbitration
32 hearings under this subsection.
33 (2) No policy insuring against loss resulting from
34 liability imposed by law for property damage arising out of
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1 the ownership, maintenance, or use of a motor vehicle shall
2 be renewed, delivered, or issued for delivery in this State
3 with respect to any private passenger or recreational motor
4 vehicle that is designed for use on public highways and that
5 is either required to be registered in this State or is
6 principally garaged in this State and is not covered by
7 collision insurance under the provisions of such policy,
8 unless coverage is made available in the amount of the actual
9 cash value of the motor vehicle described in the policy or
10 $15,000 whichever is less, subject to a $250 deductible, for
11 the protection of persons insured thereunder who are legally
12 entitled to recover damages from owners or operators of
13 uninsured motor vehicles and hit-and-run motor vehicles
14 because of property damage to the motor vehicle described in
15 the policy.
16 There shall be no liability imposed under the uninsured
17 motorist property damage coverage required by this subsection
18 if the owner or operator of the at-fault uninsured motor
19 vehicle or hit-and-run motor vehicle cannot be identified.
20 This subsection shall not apply to any policy which does not
21 provide primary motor vehicle liability insurance for
22 liabilities arising from the maintenance, operation, or use
23 of a specifically insured motor vehicle.
24 Each insurance company providing motor vehicle property
25 damage liability insurance shall advise applicants of the
26 availability of uninsured motor vehicle property damage
27 coverage, the premium therefor, and provide a brief
28 description of the coverage. Each insurer, with respect to
29 the initial renewal, reinstatement, or reissuance of a policy
30 of motor vehicle property damage liability insurance shall
31 provide present policyholders with the same information in
32 writing. That information need be given only once and shall
33 not be required in any subsequent renewal, reinstatement or
34 reissuance, substitute, amended, replacement or supplementary
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1 policy. No written rejection shall be required, and the
2 absence of a premium payment for uninsured motor vehicle
3 property damage shall constitute conclusive proof that the
4 applicant or policyholder has elected not to accept uninsured
5 motorist property damage coverage.
6 An insurance company issuing uninsured motor vehicle
7 property damage coverage may provide that:
8 (i) Property damage losses recoverable thereunder
9 shall be limited to damages caused by the actual physical
10 contact of an uninsured motor vehicle with the insured
11 motor vehicle.
12 (ii) There shall be no coverage for loss of use of
13 the insured motor vehicle and no coverage for loss or
14 damage to personal property located in the insured motor
15 vehicle.
16 (iii) Any claim submitted shall include the name
17 and address of the owner of the at-fault uninsured motor
18 vehicle, or a registration number and description of the
19 vehicle, or any other available information to establish
20 that there is no applicable motor vehicle property damage
21 liability insurance.
22 (iv) Any dispute with respect to the coverage and the
23 amount of damages shall be submitted for arbitration to the
24 American Arbitration Association and be subject to its rules
25 for the conduct of arbitration hearings or for determination
26 in the following manner: Upon the insured requesting
27 arbitration, each party to the dispute shall select an
28 arbitrator and the 2 arbitrators so named shall select a
29 third arbitrator. If such arbitrators are not selected
30 within 45 days from such request, either party may request
31 that the arbitration be submitted to the American Arbitration
32 Association. Any arbitration proceeding under this subsection
33 seeking recovery for property damages shall be subject to the
34 following rules:
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1 (A) If at least 60 days written notice of the
2 intention to offer the following documents in evidence is
3 given to every other party, accompanied by a copy of the
4 document, a party may offer in evidence, without
5 foundation or other proof:
6 (1) property repair bills or estimates, when
7 identified and itemized setting forth the charges
8 for labor and material used or proposed for use in
9 the repair of the property;
10 (2) the written opinion of an opinion witness,
11 the deposition of a witness, and the statement of a
12 witness that the witness would be allowed to express
13 if testifying in person, if the opinion or statement
14 is made by affidavit or by certification as provided
15 in Section 1-109 of the Code of Civil Procedure;
16 (3) any other document not specifically
17 covered by any of the foregoing provisions that is
18 otherwise admissible under the rules of evidence.
19 Any party receiving a notice under this paragraph
20 (A) may apply to the arbitrator or panel of arbitrators,
21 as the case may be, for the issuance of a subpoena
22 directed to the author or maker or custodian of the
23 document that is the subject of the notice, requiring the
24 person subpoenaed to produce copies of any additional
25 documents as may be related to the subject matter of the
26 document that is the subject of the notice. Any such
27 subpoena shall be issued in substantially similar form
28 and served by notice as provided by Illinois Supreme
29 Court Rule 204(a)(4). Any such subpoena shall be
30 returnable not less than 5 days before the arbitration
31 hearing.
32 (B) Notwithstanding the provisions of Supreme Court
33 Rule 213(g), a party who proposes to use a written
34 opinion of an expert or opinion witness or the testimony
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1 of an expert or opinion witness at the hearing may do so
2 provided a written notice of that intention is given to
3 every other party not less than 60 days prior to the date
4 of hearing, accompanied by a statement containing the
5 identity of the witness, his or her qualifications, the
6 subject matter, the basis of the witness's conclusions,
7 and his or her opinion.
8 (C) Any other party may subpoena the author or
9 maker of a document admissible under this subsection, at
10 that party's expense, and examine the author or maker as
11 if under cross-examination. The provisions of Section
12 2-1101 of the Code of Civil Procedure shall be applicable
13 to arbitration hearings, and it shall be the duty of a
14 party requesting the subpoena to modify the form to show
15 that the appearance is set before an arbitration panel
16 and to give the time and place set for the hearing.
17 (D) The provisions of Section 2-1102 of the Code of
18 Civil Procedure shall be applicable to arbitration
19 hearings under this subsection.
20 (3) For the purpose of the coverage the term "uninsured
21 motor vehicle" includes, subject to the terms and conditions
22 of the coverage, a motor vehicle where on, before or after
23 the accident date the liability insurer thereof is unable to
24 make payment with respect to the legal liability of its
25 insured within the limits specified in the policy because of
26 the entry by a court of competent jurisdiction of an order of
27 rehabilitation or liquidation by reason of insolvency on or
28 after the accident date. An insurer's extension of coverage,
29 as provided in this subsection, shall be applicable to all
30 accidents occurring after July 1, 1967 during a policy period
31 in which its insured's uninsured motor vehicle coverage is in
32 effect. Nothing in this Section may be construed to prevent
33 any insurer from extending coverage under terms and
34 conditions more favorable to its insureds than is required by
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1 this Section.
2 (4) In the event of payment to any person under the
3 coverage required by this Section and subject to the terms
4 and conditions of the coverage, the insurer making the
5 payment shall, to the extent thereof, be entitled to the
6 proceeds of any settlement or judgment resulting from the
7 exercise of any rights of recovery of the person against any
8 person or organization legally responsible for the property
9 damage, bodily injury or death for which the payment is made,
10 including the proceeds recoverable from the assets of the
11 insolvent insurer. With respect to payments made by reason of
12 the coverage described in subsection (3), the insurer making
13 such payment shall not be entitled to any right of recovery
14 against the tort-feasor in excess of the proceeds recovered
15 from the assets of the insolvent insurer of the tort-feasor.
16 (5) This amendatory Act of 1967 shall not be construed
17 to terminate or reduce any insurance coverage or any right of
18 any party under this Code in effect before July 1, 1967. This
19 amendatory Act of 1990 shall not be construed to terminate or
20 reduce any insurance coverage or any right of any party under
21 this Code in effect before its effective date.
22 (6) Failure of the motorist from whom the claimant is
23 legally entitled to recover damages to file the appropriate
24 forms with the Safety Responsibility Section of the
25 Department of Transportation within 120 days of the accident
26 date shall create a rebuttable presumption that the motorist
27 was uninsured at the time of the injurious occurrence.
28 (7) An insurance carrier may upon good cause require the
29 insured to commence a legal action against the owner or
30 operator of an uninsured motor vehicle before good faith
31 negotiation with the carrier. If the action is commenced at
32 the request of the insurance carrier, the carrier shall pay
33 to the insured, before the action is commenced, all court
34 costs, jury fees and sheriff's fees arising from the action.
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1 The changes made by this amendatory Act of 1997 apply to
2 all policies of insurance amended, delivered, issued, or
3 renewed on and after the effective date of this amendatory
4 Act of 1997.
5 (Source: P.A. 89-206, eff. 7-21-95.)