Public Act 93-0485

SB1207 Enrolled                      LRB093 03430 JLS 11035 b

    AN ACT concerning insurance.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The  Illinois  Insurance  Code is amended by
changing Sections 143a and 155 as follows:

    (215 ILCS 5/143a) (from Ch. 73, par. 755a)
    Sec. 143a.  Uninsured  and  hit  and  run  motor  vehicle
coverage.
    (1)  No  policy  insuring  against  loss  resulting  from
liability  imposed by law for bodily injury or death suffered
by any person arising out of the  ownership,  maintenance  or
use  of  a  motor  vehicle that is designed for use on public
highways and that is either required to be registered in this
State or is  principally  garaged  in  this  State  shall  be
renewed,  delivered,  or  issued  for  delivery in this State
unless coverage is provided therein or supplemental  thereto,
in  limits  for  bodily  injury or death set forth in Section
7-203 of the Illinois Vehicle  Code  for  the  protection  of
persons  insured  thereunder  who  are  legally  entitled  to
recover  damages  from owners or operators of uninsured motor
vehicles and hit-and-run motor  vehicles  because  of  bodily
injury,  sickness  or  disease,  including  death,  resulting
therefrom. Uninsured motor vehicle coverage does not apply to
bodily   injury,   sickness,   disease,  or  death  resulting
therefrom, of an insured  while  occupying  a  motor  vehicle
owned  by,  or  furnished or available for the regular use of
the insured, a resident spouse or resident relative, if  that
motor  vehicle  is  not described in the policy under which a
claim is made or is not a newly acquired or replacement motor
vehicle covered under the terms of the  policy.   The  limits
for  any coverage for any vehicle under the policy may not be
aggregated with the limits for any similar coverage,  whether
provided  by the same insurer or another insurer, applying to
other motor vehicles, for purposes of determining  the  total
limit  of  insurance  coverage available for bodily injury or
death suffered by a person in any one  accident.   No  policy
shall  be  renewed, delivered, or issued for delivery in this
State unless it is provided therein  that  any  dispute  with
respect  to  the  coverage and the amount of damages shall be
submitted  for  arbitration  to  the   American   Arbitration
Association  and  be  subject to its rules for the conduct of
arbitration  hearings  as  to  all  matters  except   medical
opinions.   As  to medical opinions, if the amount of damages
being sought is equal to or less than the amount provided for
in Section 7-203 of  the  Illinois  Vehicle  Code,  then  the
current  American  Arbitration Association Rules shall apply.
If  the  amount  being  sought  in  an  American  Arbitration
Association case exceeds that amount as set forth in  Section
7-203  of  the  Illinois  Vehicle  Code,  then  the  Rules of
Evidence that apply in the circuit court for placing  medical
opinions into evidence shall govern.  Alternatively, disputes
with  respect to damages and the coverage shall be determined
in  the  following  manner:   Upon  the  insured   requesting
arbitration,  each  party  to  the  dispute  shall  select an
arbitrator and the 2 arbitrators  so  named  shall  select  a
third  arbitrator.   If  such  arbitrators  are  not selected
within 45 days from such request, either  party  may  request
that the arbitration be submitted to the American Arbitration
Association.  Any  decision  made by the arbitrators shall be
binding for the amount of damages not exceeding  $50,000  the
limits  for  bodily  injury  to  or  death of any one person,
$100,000 for bodily injury to or death of 2 or  more  persons
in  any  one  motor  vehicle  accident,  or the corresponding
policy limits for bodily injury or death, whichever  is  less
set  forth in Section 7-203 of the Illinois Vehicle Code. All
3-person arbitration cases proceeding in accordance with  any
uninsured  motorist coverage conducted in this State in which
the claimant is only  seeking  monetary  damages  up  to  the
limits  set  forth  in  Section 7-203 of the Illinois Vehicle
Code shall be subject to the following rules:
         (A)  If at least 60  days'  written  notice  of  the
    intention to offer the following documents in evidence is
    given  to every other party, accompanied by a copy of the
    document,  a  party  may  offer  in   evidence,   without
    foundation or other proof:
              (1)  bills,  records, and reports of hospitals,
         doctors,  dentists,  registered   nurses,   licensed
         practical  nurses,  physical  therapists,  and other
         healthcare providers;
              (2)  bills for drugs, medical  appliances,  and
         prostheses;
              (3)  property  repair  bills or estimates, when
         identified and itemized setting  forth  the  charges
         for  labor  and material used or proposed for use in
         the repair of the property;
              (4)  a report of the rate of earnings and  time
         lost  from  work or lost compensation prepared by an
         employer;
              (5)  the written opinion of an opinion witness,
         the deposition of a witness, and the statement of  a
         witness that the witness would be allowed to express
         if testifying in person, if the opinion or statement
         is made by affidavit or by certification as provided
         in Section 1-109 of the Code of Civil Procedure;
              (6)  any   other   document   not  specifically
         covered by any of the foregoing provisions  that  is
         otherwise admissible under the rules of evidence.
         Any  party  receiving  a notice under this paragraph
    (A) may apply to the arbitrator or panel of  arbitrators,
    as  the  case  may  be,  for  the  issuance of a subpoena
    directed to the author  or  maker  or  custodian  of  the
    document that is the subject of the notice, requiring the
    person  subpoenaed  to  produce  copies of any additional
    documents as may be related to the subject matter of  the
    document  that  is  the  subject of the notice.  Any such
    subpoena shall be issued in  substantially  similar  form
    and  served  by  notice  as  provided by Illinois Supreme
    Court  Rule  204(a)(4).   Any  such  subpoena  shall   be
    returnable  not  less  than 5 days before the arbitration
    hearing.
         (B)  Notwithstanding the provisions of Supreme Court
    Rule 213(g), a  party  who  proposes  to  use  a  written
    opinion  of an expert or opinion witness or the testimony
    of an expert or opinion witness at the hearing may do  so
    provided  a  written notice of that intention is given to
    every other party not less than 60 days prior to the date
    of hearing, accompanied by  a  statement  containing  the
    identity  of  the witness, his or her qualifications, the
    subject matter, the basis of the  witness's  conclusions,
    and his or her opinion.
         (C)  Any  other  party  may  subpoena  the author or
    maker of a document admissible under this subsection,  at
    that  party's expense, and examine the author or maker as
    if under cross-examination.  The  provisions  of  Section
    2-1101 of the Code of Civil Procedure shall be applicable
    to  arbitration  hearings,  and it shall be the duty of a
    party requesting the subpoena to modify the form to  show
    that  the  appearance  is set before an arbitration panel
    and to give the time and place set for the hearing.
         (D)  The provisions of Section 2-1102 of the Code of
    Civil  Procedure  shall  be  applicable  to   arbitration
    hearings under this subsection.
    (2)  No  policy  insuring  against  loss  resulting  from
liability  imposed  by law for property damage arising out of
the ownership, maintenance, or use of a motor  vehicle  shall
be  renewed,  delivered, or issued for delivery in this State
with respect to any private passenger or  recreational  motor
vehicle  that is designed for use on public highways and that
is either required to be  registered  in  this  State  or  is
principally  garaged  in  this  State  and  is not covered by
collision insurance under  the  provisions  of  such  policy,
unless coverage is made available in the amount of the actual
cash  value  of  the motor vehicle described in the policy or
$15,000 whichever is less, subject to a $250 deductible,  for
the  protection of persons insured thereunder who are legally
entitled to recover  damages  from  owners  or  operators  of
uninsured  motor  vehicles  and  hit-and-run  motor  vehicles
because  of property damage to the motor vehicle described in
the policy.
    There shall be no liability imposed under  the  uninsured
motorist property damage coverage required by this subsection
if  the  owner  or  operator  of the at-fault uninsured motor
vehicle or hit-and-run motor vehicle  cannot  be  identified.
This  subsection shall not apply to any policy which does not
provide  primary  motor  vehicle  liability   insurance   for
liabilities  arising  from the maintenance, operation, or use
of a specifically insured motor vehicle.
    Each insurance company providing motor  vehicle  property
damage  liability  insurance  shall  advise applicants of the
availability  of  uninsured  motor  vehicle  property  damage
coverage,  the  premium  therefor,  and   provide   a   brief
description  of  the coverage.  Each insurer, with respect to
the initial renewal, reinstatement, or reissuance of a policy
of motor vehicle property damage  liability  insurance  shall
provide  present  policyholders  with the same information in
writing.  That information need be given only once and  shall
not  be  required in any subsequent renewal, reinstatement or
reissuance, substitute, amended, replacement or supplementary
policy.  No written rejection  shall  be  required,  and  the
absence  of  a  premium  payment  for uninsured motor vehicle
property damage shall constitute conclusive  proof  that  the
applicant or policyholder has elected not to accept uninsured
motorist property damage coverage.
    An  insurance  company  issuing  uninsured  motor vehicle
property damage coverage may provide that:
         (i)  Property damage losses  recoverable  thereunder
    shall be limited to damages caused by the actual physical
    contact  of  an  uninsured motor vehicle with the insured
    motor vehicle.
         (ii)  There shall be no coverage for loss of use  of
    the  insured  motor  vehicle  and no coverage for loss or
    damage to personal property located in the insured  motor
    vehicle.
         (iii)  Any  claim  submitted  shall include the name
    and address of the owner of the at-fault uninsured  motor
    vehicle,  or a registration number and description of the
    vehicle, or any other available information to  establish
    that there is no applicable motor vehicle property damage
    liability insurance.
      Any dispute with respect to the coverage and the amount
of damages shall be submitted for arbitration to the American
Arbitration  Association  and be subject to its rules for the
conduct of arbitration hearings or for determination  in  the
following  manner:   Upon the insured requesting arbitration,
each party to the dispute shall select an arbitrator and  the
2  arbitrators  so named shall select a third arbitrator.  If
such arbitrators are not selected within 45  days  from  such
request,  either  party  may  request that the arbitration be
submitted  to  the  American  Arbitration  Association.   Any
arbitration proceeding under this subsection seeking recovery
for property damages shall be subject to the following rules:
         (A)  If  at  least  60  days'  written notice of the
    intention to offer the following documents in evidence is
    given to every other party, accompanied by a copy of  the
    document,   a   party  may  offer  in  evidence,  without
    foundation or other proof:
              (1)  property repair bills or  estimates,  when
         identified  and  itemized  setting forth the charges
         for labor and material used or proposed for  use  in
         the repair of the property;
              (2)  the written opinion of an opinion witness,
         the  deposition of a witness, and the statement of a
         witness that the witness would be allowed to express
         if testifying in person, if the opinion or statement
         is made by affidavit or by certification as provided
         in Section 1-109 of the Code of Civil Procedure;
              (3)  any  other   document   not   specifically
         covered  by  any of the foregoing provisions that is
         otherwise admissible under the rules of evidence.
         Any party receiving a notice  under  this  paragraph
    (A)  may apply to the arbitrator or panel of arbitrators,
    as the case may  be,  for  the  issuance  of  a  subpoena
    directed  to  the  author  or  maker  or custodian of the
    document that is the subject of the notice, requiring the
    person subpoenaed to produce  copies  of  any  additional
    documents  as may be related to the subject matter of the
    document that is the subject of  the  notice.   Any  such
    subpoena  shall  be  issued in substantially similar form
    and served by notice  as  provided  by  Illinois  Supreme
    Court   Rule  204(a)(4).   Any  such  subpoena  shall  be
    returnable not less than 5 days  before  the  arbitration
    hearing.
         (B)  Notwithstanding the provisions of Supreme Court
    Rule  213(g),  a  party  who  proposes  to  use a written
    opinion of an expert or opinion witness or the  testimony
    of  an expert or opinion witness at the hearing may do so
    provided a written notice of that intention is  given  to
    every other party not less than 60 days prior to the date
    of  hearing,  accompanied  by  a statement containing the
    identity of the witness, his or her  qualifications,  the
    subject  matter,  the basis of the witness's conclusions,
    and his or her opinion.
         (C)  Any other party  may  subpoena  the  author  or
    maker  of a document admissible under this subsection, at
    that party's expense, and examine the author or maker  as
    if  under  cross-examination.   The provisions of Section
    2-1101 of the Code of Civil Procedure shall be applicable
    to arbitration hearings, and it shall be the  duty  of  a
    party  requesting the subpoena to modify the form to show
    that the appearance is set before  an  arbitration  panel
    and to give the time and place set for the hearing.
         (D)  The provisions of Section 2-1102 of the Code of
    Civil   Procedure  shall  be  applicable  to  arbitration
    hearings under this subsection.
    (3)  For the purpose of the coverage the term  "uninsured
motor  vehicle" includes, subject to the terms and conditions
of the coverage, a motor vehicle where on,  before  or  after
the  accident date the liability insurer thereof is unable to
make payment with respect  to  the  legal  liability  of  its
insured  within the limits specified in the policy because of
the entry by a court of competent jurisdiction of an order of
rehabilitation or liquidation by reason of insolvency  on  or
after  the accident date. An insurer's extension of coverage,
as provided in this subsection, shall be  applicable  to  all
accidents occurring after July 1, 1967 during a policy period
in which its insured's uninsured motor vehicle coverage is in
effect.  Nothing  in this Section may be construed to prevent
any  insurer  from  extending  coverage   under   terms   and
conditions more favorable to its insureds than is required by
this Section.
    (4)  In  the  event  of  payment  to any person under the
coverage required by this Section and subject  to  the  terms
and  conditions  of  the  coverage,  the  insurer  making the
payment shall, to the extent  thereof,  be  entitled  to  the
proceeds  of  any  settlement  or judgment resulting from the
exercise of any rights of recovery of the person against  any
person  or  organization legally responsible for the property
damage, bodily injury or death for which the payment is made,
including the proceeds recoverable from  the  assets  of  the
insolvent insurer. With respect to payments made by reason of
the  coverage described in subsection (3), the insurer making
such payment shall not be entitled to any right  of  recovery
against  the  tort-feasor in excess of the proceeds recovered
from the assets of the insolvent insurer of the tort-feasor.
    (5)  This amendatory Act of 1967 shall not  be  construed
to terminate or reduce any insurance coverage or any right of
any party under this Code in effect before July 1, 1967. This
amendatory Act of 1990 shall not be construed to terminate or
reduce any insurance coverage or any right of any party under
this Code in effect before its effective date.
    (6)  Failure  of  the  motorist from whom the claimant is
legally entitled to recover damages to file  the  appropriate
forms   with   the   Safety  Responsibility  Section  of  the
Department of Transportation within 120 days of the  accident
date  shall create a rebuttable presumption that the motorist
was uninsured at the time of the injurious occurrence.
    (7)  An insurance carrier may upon good cause require the
insured to commence a  legal  action  against  the  owner  or
operator  of  an  uninsured  motor  vehicle before good faith
negotiation with the carrier.  If the action is commenced  at
the  request  of the insurance carrier, the carrier shall pay
to the insured, before the action  is  commenced,  all  court
costs, jury fees and sheriff's fees arising from the action.
    The  changes made by this amendatory Act of 1997 apply to
all policies of  insurance  amended,  delivered,  issued,  or
renewed  on  and  after the effective date of this amendatory
Act of 1997.
(Source: P.A. 89-206, eff. 7-21-95; 90-451, eff. 1-1-98.)

    (215 ILCS 5/155) (from Ch. 73, par. 767)
    Sec. 155.  Attorney fees.)
    (1)  In any action by or against a company wherein  there
is  in  issue  the  liability  of  a  company  on a policy or
policies of insurance or  the  amount  of  the  loss  payable
thereunder, or for an unreasonable delay in settling a claim,
and  it  appears  to  the  court that such action or delay is
vexatious and unreasonable, the court may allow  as  part  of
the  taxable  costs  in  the action reasonable attorney fees,
other costs, plus an amount not to  exceed  any  one  of  the
following amounts:
    (a)  60% 25%  of the amount which the court or jury finds
such party  is  entitled  to  recover  against  the  company,
exclusive of all costs;
    (b)  $60,000 $25,000;
    (c)  the  excess  of  the  amount which the court or jury
finds such party is entitled to recover, exclusive of  costs,
over  the amount, if any, which the company offered to pay in
settlement of the claim prior to the action.
    (2)  Where there are several policies insuring  the  same
insured  against  the same loss whether issued by the same or
by different companies, the court may fix the amount  of  the
allowance  so  that the total attorney fees on account of one
loss  shall  not  be increased by reason of the fact that the
insured brings separate suits on such policies.
(Source: P.A. 84-678.)