State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ House Amendment 001 ][ House Amendment 002 ]

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
HB0289 Engrossed            -2-                LRB9000209JSgc
 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
HB0289 Engrossed            -3-                LRB9000209JSgc
 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
HB0289 Engrossed            -4-                LRB9000209JSgc
 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
HB0289 Engrossed            -5-                LRB9000209JSgc
 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
HB0289 Engrossed            -6-                LRB9000209JSgc
 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:
HB0289 Engrossed            -7-                LRB9000209JSgc
 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
HB0289 Engrossed            -8-                LRB9000209JSgc
 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
HB0289 Engrossed            -9-                LRB9000209JSgc
 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.
HB0289 Engrossed            -10-               LRB9000209JSgc
 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.)

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