[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_HB3460
215 ILCS 5/143a from Ch. 73, par. 755a
Amends the Illinois Insurance Code. Provides that, under
the mandatory arbitration requirements applicable to
uninsured motor vehicle coverage, the decision of the
arbitrators shall be binding for the amount of damages
awarded. Currently the arbitrators' decision is binding only
when the amount of damages is less than the minimum
statutorily required amount of coverage. Effective
immediately.
LRB9008550JSgc
LRB9008550JSgc
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
-2- LRB9008550JSgc
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 the coverage shall be determined
23 in the following manner: Upon the insured requesting
24 arbitration, each party to the dispute shall select an
25 arbitrator and the 2 arbitrators so named shall select a
26 third arbitrator. If such arbitrators are not selected
27 within 45 days from such request, either party may request
28 that the arbitration be submitted to the American Arbitration
29 Association. Any decision made by the arbitrators shall be
30 binding for the amount of damages awarded by the arbitrators
31 not exceeding the limits for bodily injury or death set forth
32 in Section 7-203 of the Illinois Vehicle Code. All 3-person
33 arbitration cases proceeding in accordance with any uninsured
34 motorist coverage conducted in this State in which the
-3- LRB9008550JSgc
1 claimant is only seeking monetary damages up to the limits
2 set forth in Section 7-203 of the Illinois Vehicle Code shall
3 be subject to the following rules:
4 (A) If at least 60 days' written notice of the
5 intention to offer the following documents in evidence is
6 given to every other party, accompanied by a copy of the
7 document, a party may offer in evidence, without
8 foundation or other proof:
9 (1) bills, records, and reports of hospitals,
10 doctors, dentists, registered nurses, licensed
11 practical nurses, physical therapists, and other
12 healthcare providers;
13 (2) bills for drugs, medical appliances, and
14 prostheses;
15 (3) property repair bills or estimates, when
16 identified and itemized setting forth the charges
17 for labor and material used or proposed for use in
18 the repair of the property;
19 (4) a report of the rate of earnings and time
20 lost from work or lost compensation prepared by an
21 employer;
22 (5) the written opinion of an opinion witness,
23 the deposition of a witness, and the statement of a
24 witness that the witness would be allowed to express
25 if testifying in person, if the opinion or statement
26 is made by affidavit or by certification as provided
27 in Section 1-109 of the Code of Civil Procedure;
28 (6) any other document not specifically
29 covered by any of the foregoing provisions that is
30 otherwise admissible under the rules of evidence.
31 Any party receiving a notice under this paragraph
32 (A) may apply to the arbitrator or panel of arbitrators,
33 as the case may be, for the issuance of a subpoena
34 directed to the author or maker or custodian of the
-4- LRB9008550JSgc
1 document that is the subject of the notice, requiring the
2 person subpoenaed to produce copies of any additional
3 documents as may be related to the subject matter of the
4 document that is the subject of the notice. Any such
5 subpoena shall be issued in substantially similar form
6 and served by notice as provided by Illinois Supreme
7 Court Rule 204(a)(4). Any such subpoena shall be
8 returnable not less than 5 days before the arbitration
9 hearing.
10 (B) Notwithstanding the provisions of Supreme Court
11 Rule 213(g), a party who proposes to use a written
12 opinion of an expert or opinion witness or the testimony
13 of an expert or opinion witness at the hearing may do so
14 provided a written notice of that intention is given to
15 every other party not less than 60 days prior to the date
16 of hearing, accompanied by a statement containing the
17 identity of the witness, his or her qualifications, the
18 subject matter, the basis of the witness's conclusions,
19 and his or her opinion.
20 (C) Any other party may subpoena the author or
21 maker of a document admissible under this subsection, at
22 that party's expense, and examine the author or maker as
23 if under cross-examination. The provisions of Section
24 2-1101 of the Code of Civil Procedure shall be applicable
25 to arbitration hearings, and it shall be the duty of a
26 party requesting the subpoena to modify the form to show
27 that the appearance is set before an arbitration panel
28 and to give the time and place set for the hearing.
29 (D) The provisions of Section 2-1102 of the Code of
30 Civil Procedure shall be applicable to arbitration
31 hearings under this subsection.
32 (2) No policy insuring against loss resulting from
33 liability imposed by law for property damage arising out of
34 the ownership, maintenance, or use of a motor vehicle shall
-5- LRB9008550JSgc
1 be renewed, delivered, or issued for delivery in this State
2 with respect to any private passenger or recreational motor
3 vehicle that is designed for use on public highways and that
4 is either required to be registered in this State or is
5 principally garaged in this State and is not covered by
6 collision insurance under the provisions of such policy,
7 unless coverage is made available in the amount of the actual
8 cash value of the motor vehicle described in the policy or
9 $15,000 whichever is less, subject to a $250 deductible, for
10 the protection of persons insured thereunder who are legally
11 entitled to recover damages from owners or operators of
12 uninsured motor vehicles and hit-and-run motor vehicles
13 because of property damage to the motor vehicle described in
14 the policy.
15 There shall be no liability imposed under the uninsured
16 motorist property damage coverage required by this subsection
17 if the owner or operator of the at-fault uninsured motor
18 vehicle or hit-and-run motor vehicle cannot be identified.
19 This subsection shall not apply to any policy which does not
20 provide primary motor vehicle liability insurance for
21 liabilities arising from the maintenance, operation, or use
22 of a specifically insured motor vehicle.
23 Each insurance company providing motor vehicle property
24 damage liability insurance shall advise applicants of the
25 availability of uninsured motor vehicle property damage
26 coverage, the premium therefor, and provide a brief
27 description of the coverage. Each insurer, with respect to
28 the initial renewal, reinstatement, or reissuance of a policy
29 of motor vehicle property damage liability insurance shall
30 provide present policyholders with the same information in
31 writing. That information need be given only once and shall
32 not be required in any subsequent renewal, reinstatement or
33 reissuance, substitute, amended, replacement or supplementary
34 policy. No written rejection shall be required, and the
-6- LRB9008550JSgc
1 absence of a premium payment for uninsured motor vehicle
2 property damage shall constitute conclusive proof that the
3 applicant or policyholder has elected not to accept uninsured
4 motorist property damage coverage.
5 An insurance company issuing uninsured motor vehicle
6 property damage coverage may provide that:
7 (i) Property damage losses recoverable thereunder
8 shall be limited to damages caused by the actual physical
9 contact of an uninsured motor vehicle with the insured
10 motor vehicle.
11 (ii) There shall be no coverage for loss of use of
12 the insured motor vehicle and no coverage for loss or
13 damage to personal property located in the insured motor
14 vehicle.
15 (iii) Any claim submitted shall include the name
16 and address of the owner of the at-fault uninsured motor
17 vehicle, or a registration number and description of the
18 vehicle, or any other available information to establish
19 that there is no applicable motor vehicle property damage
20 liability insurance.
21 Any dispute with respect to the coverage and the amount
22 of damages shall be submitted for arbitration to the American
23 Arbitration Association and be subject to its rules for the
24 conduct of arbitration hearings or for determination in the
25 following manner: Upon the insured requesting arbitration,
26 each party to the dispute shall select an arbitrator and the
27 2 arbitrators so named shall select a third arbitrator. If
28 such arbitrators are not selected within 45 days from such
29 request, either party may request that the arbitration be
30 submitted to the American Arbitration Association. Any
31 arbitration proceeding under this subsection seeking recovery
32 for property damages shall be subject to the following rules:
33 (A) If at least 60 days' written notice of the
34 intention to offer the following documents in evidence is
-7- LRB9008550JSgc
1 given to every other party, accompanied by a copy of the
2 document, a party may offer in evidence, without
3 foundation or other proof:
4 (1) property repair bills or estimates, when
5 identified and itemized setting forth the charges
6 for labor and material used or proposed for use in
7 the repair of the property;
8 (2) the written opinion of an opinion witness,
9 the deposition of a witness, and the statement of a
10 witness that the witness would be allowed to express
11 if testifying in person, if the opinion or statement
12 is made by affidavit or by certification as provided
13 in Section 1-109 of the Code of Civil Procedure;
14 (3) any other document not specifically
15 covered by any of the foregoing provisions that is
16 otherwise admissible under the rules of evidence.
17 Any party receiving a notice under this paragraph
18 (A) may apply to the arbitrator or panel of arbitrators,
19 as the case may be, for the issuance of a subpoena
20 directed to the author or maker or custodian of the
21 document that is the subject of the notice, requiring the
22 person subpoenaed to produce copies of any additional
23 documents as may be related to the subject matter of the
24 document that is the subject of the notice. Any such
25 subpoena shall be issued in substantially similar form
26 and served by notice as provided by Illinois Supreme
27 Court Rule 204(a)(4). Any such subpoena shall be
28 returnable not less than 5 days before the arbitration
29 hearing.
30 (B) Notwithstanding the provisions of Supreme Court
31 Rule 213(g), a party who proposes to use a written
32 opinion of an expert or opinion witness or the testimony
33 of an expert or opinion witness at the hearing may do so
34 provided a written notice of that intention is given to
-8- LRB9008550JSgc
1 every other party not less than 60 days prior to the date
2 of hearing, accompanied by a statement containing the
3 identity of the witness, his or her qualifications, the
4 subject matter, the basis of the witness's conclusions,
5 and his or her opinion.
6 (C) Any other party may subpoena the author or
7 maker of a document admissible under this subsection, at
8 that party's expense, and examine the author or maker as
9 if under cross-examination. The provisions of Section
10 2-1101 of the Code of Civil Procedure shall be applicable
11 to arbitration hearings, and it shall be the duty of a
12 party requesting the subpoena to modify the form to show
13 that the appearance is set before an arbitration panel
14 and to give the time and place set for the hearing.
15 (D) The provisions of Section 2-1102 of the Code of
16 Civil Procedure shall be applicable to arbitration
17 hearings under this subsection.
18 (3) For the purpose of the coverage the term "uninsured
19 motor vehicle" includes, subject to the terms and conditions
20 of the coverage, a motor vehicle where on, before or after
21 the accident date the liability insurer thereof is unable to
22 make payment with respect to the legal liability of its
23 insured within the limits specified in the policy because of
24 the entry by a court of competent jurisdiction of an order of
25 rehabilitation or liquidation by reason of insolvency on or
26 after the accident date. An insurer's extension of coverage,
27 as provided in this subsection, shall be applicable to all
28 accidents occurring after July 1, 1967 during a policy period
29 in which its insured's uninsured motor vehicle coverage is in
30 effect. Nothing in this Section may be construed to prevent
31 any insurer from extending coverage under terms and
32 conditions more favorable to its insureds than is required by
33 this Section.
34 (4) In the event of payment to any person under the
-9- LRB9008550JSgc
1 coverage required by this Section and subject to the terms
2 and conditions of the coverage, the insurer making the
3 payment shall, to the extent thereof, be entitled to the
4 proceeds of any settlement or judgment resulting from the
5 exercise of any rights of recovery of the person against any
6 person or organization legally responsible for the property
7 damage, bodily injury or death for which the payment is made,
8 including the proceeds recoverable from the assets of the
9 insolvent insurer. With respect to payments made by reason of
10 the coverage described in subsection (3), the insurer making
11 such payment shall not be entitled to any right of recovery
12 against the tort-feasor in excess of the proceeds recovered
13 from the assets of the insolvent insurer of the tort-feasor.
14 (5) This amendatory Act of 1967 shall not be construed
15 to terminate or reduce any insurance coverage or any right of
16 any party under this Code in effect before July 1, 1967. This
17 amendatory Act of 1990 shall not be construed to terminate or
18 reduce any insurance coverage or any right of any party under
19 this Code in effect before its effective date. This
20 amendatory Act of 1998 shall not be construed to terminate or
21 reduce any insurance coverage or any right of any party under
22 this Code in effect before its effective date.
23 (6) Failure of the motorist from whom the claimant is
24 legally entitled to recover damages to file the appropriate
25 forms with the Safety Responsibility Section of the
26 Department of Transportation within 120 days of the accident
27 date shall create a rebuttable presumption that the motorist
28 was uninsured at the time of the injurious occurrence.
29 (7) An insurance carrier may upon good cause require the
30 insured to commence a legal action against the owner or
31 operator of an uninsured motor vehicle before good faith
32 negotiation with the carrier. If the action is commenced at
33 the request of the insurance carrier, the carrier shall pay
34 to the insured, before the action is commenced, all court
-10- LRB9008550JSgc
1 costs, jury fees and sheriff's fees arising from the action.
2 The changes made by this amendatory Act of 1997 apply to
3 all policies of insurance amended, delivered, issued, or
4 renewed on and after the effective date of this amendatory
5 Act of 1997. The changes made by this amendatory Act of 1998
6 apply to all policies amended, delivered, issued, or renewed
7 on and after the effective date of this amendatory Act of
8 1998.
9 (Source: P.A. 89-206, eff. 7-21-95; 90-451, eff. 1-1-98.)
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.